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H. B. No. 38 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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A BILL
To amend sections 9.33, 153.65, 718.01, 2937.221,
3354.13, 3355.10, 3357.12, 5503.31, 5503.32,
5513.01, 5533.31, 5537.01, 5537.02, 5537.03,
5537.04, 5537.05, 5537.051, 5537.06, 5537.07,
5537.08, 5537.09, 5537.11, 5537.12, 5537.13,
5537.14, 5537.15, 5537.16, 5537.17, 5537.19,
5537.20, 5537.21, 5537.22, 5537.24, 5537.25,
5537.26, 5537.27, 5537.28, 5537.30, 5728.01,
5735.05, 5735.23, 5739.02, 5747.01, and 5751.01;
to enact section 5537.18; and to repeal sections
126.60, 126.601, 126.602, 126.603, 126.604, and
126.605 of the Revised Code to authorize the Ohio
Turnpike Commission to issue revenue bonds for
infrastructure projects, to rename the Ohio
Turnpike Commission as the Ohio Turnpike and
Infrastructure Commission, to repeal authority
allowing the Director of Budget and Management and
the Director of Transportation to execute a
contract with a private entity for the purpose of
outsourcing turnpike-related highway services, to
make other changes in the law governing the Ohio
Turnpike Commission, and to make an appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 101.01. That sections 9.33, 153.65, 718.01,
2937.221, 3354.13, 3355.10, 3357.12, 5503.31, 5503.32, 5513.01,
5533.31, 5537.01, 5537.02, 5537.03, 5537.04, 5537.05, 5537.051,
5537.06, 5537.07, 5537.08, 5537.09, 5537.11, 5537.12, 5537.13,
5537.14, 5537.15, 5537.16, 5537.17, 5537.19, 5537.20, 5537.21,
5537.22, 5537.24, 5537.25, 5537.26, 5537.27, 5537.28, 5537.30,
5728.01, 5735.05, 5735.23, 5739.02, 5747.01, and 5751.01 be
amended and section 5537.18 of the Revised Code be enacted to read
as follows:
Sec. 9.33. As used in sections 9.33 to 9.335 of the Revised
Code:
(A) "Construction manager" means a person with substantial
discretion and authority to plan, coordinate, manage, and direct
all phases of a project for the construction, demolition,
alteration, repair, or reconstruction of any public building,
structure, or other improvement, but does not mean the person who
provides the professional design services or who actually performs
the construction, demolition, alteration, repair, or
reconstruction work on the project.
(B)(1) "Construction manager at risk" means a person with
substantial discretion and authority to plan, coordinate, manage,
direct, and construct all phases of a project for the
construction, demolition, alteration, repair, or reconstruction of
any public building, structure, or other improvement and who
provides the public authority a guaranteed maximum price as
determined in section 9.334 of the Revised Code.
(2) As used in division (B)(1) of this section:
(a) "Construct" includes performing, or subcontracting for
performing, construction, demolition, alteration, repair, or
reconstruction.
(b) "Manage" includes approving bidders and awarding
subcontracts for furnishing materials regarding, or for
performing, construction, demolition, alteration, repair, or
reconstruction.
(C) "Construction management contract" means a contract
between a public authority and another person obligating the
person to provide construction management services.
(D) "Construction management services" or "management
services" means the range of services that either a construction
manager or a construction manager at risk may provide.
(E) "Qualified" means having the following qualifications:
(1) Competence to perform the required management services as
indicated by the technical training, education, and experience of
the construction manager's or construction manager at risk's
personnel, especially the technical training, education, and
experience of the construction manager's or construction manager
at risk's employees who would be assigned to perform the services;
(2) Ability in terms of workload and the availability of
qualified personnel, equipment, and facilities to perform the
required management services competently and expeditiously;
(3) Past performance as reflected by the evaluations of
previous clients with respect to factors such as control of costs,
quality of work, and meeting of deadlines;
(4) Financial responsibility as evidenced by the capability
to provide a letter of credit pursuant to Chapter 1305. of the
Revised Code, a surety bond, certified check, or cashier's check
in an amount equal to the value of the construction management
contract, or by other means acceptable to the public authority;
(5) Other similar factors.
(F)(1) "Public authority" means the state, any state
institution of higher education as defined in section 3345.011 of
the Revised Code, any county, township, municipal corporation,
school district, or other political subdivision, or any public
agency, authority, board, commission, instrumentality, or special
purpose district of the state or of a political subdivision.
(2) "Public authority" does not include the Ohio turnpike
commission.
(G) "Open book pricing method" means a method in which a
construction manager at risk provides the public authority, at the
public authority's request, all books, records, documents, and
other data in its possession pertaining to the bidding, pricing,
or performance of a construction management contract awarded to
the construction manager at risk.
Sec. 153.65. As used in sections 153.65 to 153.73 of the
Revised Code:
(A)(1) "Public authority" means the state, a state
institution of higher education as defined in section 3345.011 of
the Revised Code, a county, township, municipal corporation,
school district, or other political subdivision, or any public
agency, authority, board, commission, instrumentality, or special
purpose district of the state or of a political subdivision.
(2) "Public authority" does not include the Ohio turnpike
commission.
(B) "Professional design firm" means any person legally
engaged in rendering professional design services.
(C) "Professional design services" means services within the
scope of practice of an architect or landscape architect
registered under Chapter 4703. of the Revised Code or a
professional engineer or surveyor registered under Chapter 4733.
of the Revised Code.
(D) "Qualifications" means all of the following:
(1)(a) For a professional design firm, competence to perform
the required professional design services as indicated by the
technical training, education, and experience of the firm's
personnel, especially the technical training, education, and
experience of the employees within the firm who would be assigned
to perform the services;
(b) For a design-build firm, competence to perform the
required design-build services as indicated by the technical
training, education, and experience of the design-build firm's
personnel and key consultants, especially the technical training,
education, and experience of the employees and consultants of the
design-build firm who would be assigned to perform the services,
including the proposed architect or engineer of record.
(2) Ability of the firm in terms of its workload and the
availability of qualified personnel, equipment, and facilities to
perform the required professional design services or design-build
services competently and expeditiously;
(3) Past performance of the firm as reflected by the
evaluations of previous clients with respect to such factors as
control of costs, quality of work, and meeting of deadlines;
(4) Any other relevant factors as determined by the public
authority;
(5) With respect to a design-build firm, compliance with
sections 4703.182, 4703.332, and 4733.16 of the Revised Code,
including the use of a licensed design professional for all design
services.
(E) "Design-build contract" means a contract between a public
authority and another person that obligates the person to provide
design-build services.
(F) "Design-build firm" means a person capable of providing
design-build services.
(G) "Design-build services" means services that form an
integrated delivery system for which a person is responsible to a
public authority for both the design and construction, demolition,
alteration, repair, or reconstruction of a public improvement.
(H) "Architect or engineer of record" means the architect or
engineer that serves as the final signatory on the plans and
specifications for the design-build project.
(I) "Criteria architect or engineer" means the architect or
engineer retained by a public authority to prepare conceptual
plans and specifications, to assist the public authority in
connection with the establishment of the design criteria for a
design-build project, and, if requested by the public authority,
to serve as the representative of the public authority and
provide, during the design-build project, other design and
construction administration services on behalf of the public
authority, including but not limited to, confirming that the
design prepared by the design-build firm reflects the original
design intent established in the design criteria package.
(J) "Open book pricing method" means a method in which a
design-build firm provides the public authority, at the public
authority's request, all books, records, documents, contracts,
subcontracts, purchase orders, and other data in its possession
pertaining to the bidding, pricing, or performance of a contract
for design-build services awarded to the design-build firm.
Sec. 718.01. (A) As used in this chapter:
(1) "Adjusted federal taxable income" means a C corporation's
federal taxable income before net operating losses and special
deductions as determined under the Internal Revenue Code, adjusted
as follows:
(a) Deduct intangible income to the extent included in
federal taxable income. The deduction shall be allowed regardless
of whether the intangible income relates to assets used in a trade
or business or assets held for the production of income.
(b) Add an amount equal to five per cent of intangible income
deducted under division (A)(1)(a) of this section, but excluding
that portion of intangible income directly related to the sale,
exchange, or other disposition of property described in section
1221 of the Internal Revenue Code;
(c) Add any losses allowed as a deduction in the computation
of federal taxable income if the losses directly relate to the
sale, exchange, or other disposition of an asset described in
section 1221 or 1231 of the Internal Revenue Code;
(d)(i) Except as provided in division (A)(1)(d)(ii) of this
section, deduct income and gain included in federal taxable income
to the extent the income and gain directly relate to the sale,
exchange, or other disposition of an asset described in section
1221 or 1231 of the Internal Revenue Code;
(ii) Division (A)(1)(d)(i) of this section does not apply to
the extent the income or gain is income or gain described in
section 1245 or 1250 of the Internal Revenue Code.
(e) Add taxes on or measured by net income allowed as a
deduction in the computation of federal taxable income;
(f) In the case of a real estate investment trust and
regulated investment company, add all amounts with respect to
dividends to, distributions to, or amounts set aside for or
credited to the benefit of investors and allowed as a deduction in
the computation of federal taxable income;
(g) Deduct, to the extent not otherwise deducted or excluded
in computing federal taxable income, any income derived from
providing public services under a contract through a project owned
by the state, as described in section 126.604 of the Revised Code
or derived from a transfer agreement or from the enterprise
transferred under that agreement under section 4313.02 of the
Revised Code.
If the taxpayer is not a C corporation and is not an
individual, the taxpayer shall compute adjusted federal taxable
income as if the taxpayer were a C corporation, except guaranteed
payments and other similar amounts paid or accrued to a partner,
former partner, member, or former member shall not be allowed as a
deductible expense; amounts paid or accrued to a qualified
self-employed retirement plan with respect to an owner or
owner-employee of the taxpayer, amounts paid or accrued to or for
health insurance for an owner or owner-employee, and amounts paid
or accrued to or for life insurance for an owner or owner-employee
shall not be allowed as a deduction.
Nothing in division (A)(1) of this section shall be construed
as allowing the taxpayer to add or deduct any amount more than
once or shall be construed as allowing any taxpayer to deduct any
amount paid to or accrued for purposes of federal self-employment
tax.
Nothing in this chapter shall be construed as limiting or
removing the ability of any municipal corporation to administer,
audit, and enforce the provisions of its municipal income tax.
(2) "Internal Revenue Code" means the Internal Revenue Code
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.
(3) "Schedule C" means internal revenue service schedule C
filed by a taxpayer pursuant to the Internal Revenue Code.
(4) "Form 2106" means internal revenue service form 2106
filed by a taxpayer pursuant to the Internal Revenue Code.
(5) "Intangible income" means income of any of the following
types: income yield, interest, capital gains, dividends, or other
income arising from the ownership, sale, exchange, or other
disposition of intangible property including, but not limited to,
investments, deposits, money, or credits as those terms are
defined in Chapter 5701. of the Revised Code, and patents,
copyrights, trademarks, tradenames, investments in real estate
investment trusts, investments in regulated investment companies,
and appreciation on deferred compensation. "Intangible income"
does not include prizes, awards, or other income associated with
any lottery winnings or other similar games of chance.
(6) "S corporation" means a corporation that has made an
election under subchapter S of Chapter 1 of Subtitle A of the
Internal Revenue Code for its taxable year.
(7) For taxable years beginning on or after January 1, 2004,
"net profit" for a taxpayer other than an individual means
adjusted federal taxable income and "net profit" for a taxpayer
who is an individual means the individual's profit required to be
reported on schedule C, schedule E, or schedule F, other than any
amount allowed as a deduction under division (E)(2) or (3) of this
section or amounts described in division (H) of this section.
(8) "Taxpayer" means a person subject to a tax on income
levied by a municipal corporation. Except as provided in division
(L) of this section, "taxpayer" does not include any person that
is a disregarded entity or a qualifying subchapter S subsidiary
for federal income tax purposes, but "taxpayer" includes any other
person who owns the disregarded entity or qualifying subchapter S
subsidiary.
(9) "Taxable year" means the corresponding tax reporting
period as prescribed for the taxpayer under the Internal Revenue
Code.
(10) "Tax administrator" means the individual charged with
direct responsibility for administration of a tax on income levied
by a municipal corporation and includes:
(a) The central collection agency and the regional income tax
agency and their successors in interest, and other entities
organized to perform functions similar to those performed by the
central collection agency and the regional income tax agency;
(b) A municipal corporation acting as the agent of another
municipal corporation; and
(c) Persons retained by a municipal corporation to administer
a tax levied by the municipal corporation, but only if the
municipal corporation does not compensate the person in whole or
in part on a contingency basis.
(11) "Person" includes individuals, firms, companies,
business trusts, estates, trusts, partnerships, limited liability
companies, associations, corporations, governmental entities, and
any other entity.
(12) "Schedule E" means internal revenue service schedule E
filed by a taxpayer pursuant to the Internal Revenue Code.
(13) "Schedule F" means internal revenue service schedule F
filed by a taxpayer pursuant to the Internal Revenue Code.
(B) No municipal corporation shall tax income at other than a
uniform rate.
(C) No municipal corporation shall levy a tax on income at a
rate in excess of one per cent without having obtained the
approval of the excess by a majority of the electors of the
municipality voting on the question at a general, primary, or
special election. The legislative authority of the municipal
corporation shall file with the board of elections at least ninety
days before the day of the election a copy of the ordinance
together with a resolution specifying the date the election is to
be held and directing the board of elections to conduct the
election. The ballot shall be in the following form: "Shall the
Ordinance providing for a ... per cent levy on income for (Brief
description of the purpose of the proposed levy) be passed?
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FOR THE INCOME TAX |
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AGAINST THE INCOME TAX |
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In the event of an affirmative vote, the proceeds of the levy
may be used only for the specified purpose.
(D)(1) Except as otherwise provided in this section, no
municipal corporation shall exempt from a tax on income
compensation for personal services of individuals over eighteen
years of age or the net profit from a business or profession.
(2)(a) For taxable years beginning on or after January 1,
2004, no municipal corporation shall tax the net profit from a
business or profession using any base other than the taxpayer's
adjusted federal taxable income.
(b) Division (D)(2)(a) of this section does not apply to any
taxpayer required to file a return under section 5745.03 of the
Revised Code or to the net profit from a sole proprietorship.
(E)(1) The legislative authority of a municipal corporation
may, by ordinance or resolution, exempt from withholding and from
a tax on income the following:
(a) Compensation arising from the sale, exchange, or other
disposition of a stock option, the exercise of a stock option, or
the sale, exchange, or other disposition of stock purchased under
a stock option; or
(b) Compensation attributable to a nonqualified deferred
compensation plan or program described in section 3121(v)(2)(C) of
the Internal Revenue Code.
(2) The legislative authority of a municipal corporation may
adopt an ordinance or resolution that allows a taxpayer who is an
individual to deduct, in computing the taxpayer's municipal income
tax liability, an amount equal to the aggregate amount the
taxpayer paid in cash during the taxable year to a health savings
account of the taxpayer, to the extent the taxpayer is entitled to
deduct that amount on internal revenue service form 1040.
(3) The legislative authority of a municipal corporation may
adopt an ordinance or resolution that allows a taxpayer who has a
net profit from a business or profession that is operated as a
sole proprietorship to deduct from that net profit the amount that
the taxpayer paid during the taxable year for medical care
insurance premiums for the taxpayer, the taxpayer's spouse, and
dependents as defined in section 5747.01 of the Revised Code. The
deduction shall be allowed to the same extent the taxpayer is
entitled to deduct the premiums on internal revenue service form
1040. The deduction allowed under this division shall be net of
any related premium refunds, related premium reimbursements, or
related insurance premium dividends received by the taxpayer
during the taxable year.
(F) If an individual's taxable income includes income against
which the taxpayer has taken a deduction for federal income tax
purposes as reportable on the taxpayer's form 2106, and against
which a like deduction has not been allowed by the municipal
corporation, the municipal corporation shall deduct from the
taxpayer's taxable income an amount equal to the deduction shown
on such form allowable against such income, to the extent not
otherwise so allowed as a deduction by the municipal corporation.
(G)(1) In the case of a taxpayer who has a net profit from a
business or profession that is operated as a sole proprietorship,
no municipal corporation may tax or use as the base for
determining the amount of the net profit that shall be considered
as having a taxable situs in the municipal corporation, an amount
other than the net profit required to be reported by the taxpayer
on schedule C or F from such sole proprietorship for the taxable
year.
(2) In the case of a taxpayer who has a net profit from
rental activity required to be reported on schedule E, no
municipal corporation may tax or use as the base for determining
the amount of the net profit that shall be considered as having a
taxable situs in the municipal corporation, an amount other than
the net profit from rental activities required to be reported by
the taxpayer on schedule E for the taxable year.
(H) A municipal corporation shall not tax any of the
following:
(1) The military pay or allowances of members of the armed
forces of the United States and of members of their reserve
components, including the Ohio national guard;
(2) The income of religious, fraternal, charitable,
scientific, literary, or educational institutions to the extent
that such income is derived from tax-exempt real estate,
tax-exempt tangible or intangible property, or tax-exempt
activities;
(3) Except as otherwise provided in division (I) of this
section, intangible income;
(4) Compensation paid under section 3501.28 or 3501.36 of the
Revised Code to a person serving as a precinct election official,
to the extent that such compensation does not exceed one thousand
dollars annually. Such compensation in excess of one thousand
dollars may be subjected to taxation by a municipal corporation. A
municipal corporation shall not require the payer of such
compensation to withhold any tax from that compensation.
(5) Compensation paid to an employee of a transit authority,
regional transit authority, or regional transit commission created
under Chapter 306. of the Revised Code for operating a transit bus
or other motor vehicle for the authority or commission in or
through the municipal corporation, unless the bus or vehicle is
operated on a regularly scheduled route, the operator is subject
to such a tax by reason of residence or domicile in the municipal
corporation, or the headquarters of the authority or commission is
located within the municipal corporation;
(6) The income of a public utility, when that public utility
is subject to the tax levied under section 5727.24 or 5727.30 of
the Revised Code, except a municipal corporation may tax the
following, subject to Chapter 5745. of the Revised Code:
(a) Beginning January 1, 2002, the income of an electric
company or combined company;
(b) Beginning January 1, 2004, the income of a telephone
company.
As used in division (H)(6) of this section, "combined
company," "electric company," and "telephone company" have the
same meanings as in section 5727.01 of the Revised Code.
(7) On and after January 1, 2003, items excluded from federal
gross income pursuant to section 107 of the Internal Revenue Code;
(8) On and after January 1, 2001, compensation paid to a
nonresident individual to the extent prohibited under section
718.011 of the Revised Code;
(9)(a) Except as provided in division (H)(9)(b) and (c) of
this section, an S corporation shareholder's distributive share of
net profits of the S corporation, other than any part of the
distributive share of net profits that represents wages as defined
in section 3121(a) of the Internal Revenue Code or net earnings
from self-employment as defined in section 1402(a) of the Internal
Revenue Code.
(b) If, pursuant to division (H) of former section 718.01 of
the Revised Code as it existed before March 11, 2004, a majority
of the electors of a municipal corporation voted in favor of the
question at an election held on November 4, 2003, the municipal
corporation may continue after 2002 to tax an S corporation
shareholder's distributive share of net profits of an S
corporation.
(c) If, on December 6, 2002, a municipal corporation was
imposing, assessing, and collecting a tax on an S corporation
shareholder's distributive share of net profits of the S
corporation to the extent the distributive share would be
allocated or apportioned to this state under divisions (B)(1) and
(2) of section 5733.05 of the Revised Code if the S corporation
were a corporation subject to taxes imposed under Chapter 5733. of
the Revised Code, the municipal corporation may continue to impose
the tax on such distributive shares to the extent such shares
would be so allocated or apportioned to this state only until
December 31, 2004, unless a majority of the electors of the
municipal corporation voting on the question of continuing to tax
such shares after that date vote in favor of that question at an
election held November 2, 2004. If a majority of those electors
vote in favor of the question, the municipal corporation may
continue after December 31, 2004, to impose the tax on such
distributive shares only to the extent such shares would be so
allocated or apportioned to this state.
(d) For the purposes of division (D) of section 718.14 of the
Revised Code, a municipal corporation shall be deemed to have
elected to tax S corporation shareholders' distributive shares of
net profits of the S corporation in the hands of the shareholders
if a majority of the electors of a municipal corporation vote in
favor of a question at an election held under division (H)(9)(b)
or (c) of this section. The municipal corporation shall specify by
ordinance or rule that the tax applies to the distributive share
of a shareholder of an S corporation in the hands of the
shareholder of the S corporation.
(10) Employee compensation that is not "qualifying wages" as
defined in section 718.03 of the Revised Code;
(11) Beginning August 1, 2007, compensation paid to a person
employed within the boundaries of a United States air force base
under the jurisdiction of the United States air force that is used
for the housing of members of the United States air force and is a
center for air force operations, unless the person is subject to
taxation because of residence or domicile. If the compensation is
subject to taxation because of residence or domicile, municipal
income tax shall be payable only to the municipal corporation of
residence or domicile.
(I) Any municipal corporation that taxes any type of
intangible income on March 29, 1988, pursuant to Section 3 of
Amended Substitute Senate Bill No. 238 of the 116th general
assembly, may continue to tax that type of income after 1988 if a
majority of the electors of the municipal corporation voting on
the question of whether to permit the taxation of that type of
intangible income after 1988 vote in favor thereof at an election
held on November 8, 1988.
(J) Nothing in this section or section 718.02 of the Revised
Code shall authorize the levy of any tax on income that a
municipal corporation is not authorized to levy under existing
laws or shall require a municipal corporation to allow a deduction
from taxable income for losses incurred from a sole proprietorship
or partnership.
(K)(1) Nothing in this chapter prohibits a municipal
corporation from allowing, by resolution or ordinance, a net
operating loss carryforward.
(2) Nothing in this chapter requires a municipal corporation
to allow a net operating loss carryforward.
(L)(1) A single member limited liability company that is a
disregarded entity for federal tax purposes may elect to be a
separate taxpayer from its single member in all Ohio municipal
corporations in which it either filed as a separate taxpayer or
did not file for its taxable year ending in 2003, if all of the
following conditions are met:
(a) The limited liability company's single member is also a
limited liability company;
(b) The limited liability company and its single member were
formed and doing business in one or more Ohio municipal
corporations for at least five years before January 1, 2004;
(c) Not later than December 31, 2004, the limited liability
company and its single member each make an election to be treated
as a separate taxpayer under division (L) of this section;
(d) The limited liability company was not formed for the
purpose of evading or reducing Ohio municipal corporation income
tax liability of the limited liability company or its single
member;
(e) The Ohio municipal corporation that is the primary place
of business of the sole member of the limited liability company
consents to the election.
(2) For purposes of division (L)(1)(e) of this section, a
municipal corporation is the primary place of business of a
limited liability company if, for the limited liability company's
taxable year ending in 2003, its income tax liability is greater
in that municipal corporation than in any other municipal
corporation in Ohio, and that tax liability to that municipal
corporation for its taxable year ending in 2003 is at least four
hundred thousand dollars.
Sec. 2937.221. (A) A person arrested without warrant for any
violation listed in division (B) of this section, and having a
current valid Ohio driver's or commercial driver's license, if the
person has been notified of the possible consequences of the
person's actions as required by division (C) of this section, may
post bond by depositing the license with the arresting officer if
the officer and person so choose, or with the local court having
jurisdiction if the court and person so choose. The license may be
used as bond only during the period for which it is valid.
When an arresting officer accepts the driver's or commercial
driver's license as bond, the officer shall note the date, time,
and place of the court appearance on "the violator's notice to
appear," and the notice shall serve as a valid Ohio driver's or
commercial driver's license until the date and time appearing
thereon. The arresting officer immediately shall forward the
license to the appropriate court.
When a local court accepts the license as bond or continues
the case to another date and time, it shall provide the person
with a card in a form approved by the registrar of motor vehicles
setting forth the license number, name, address, the date and time
of the court appearance, and a statement that the license is being
held as bond. The card shall serve as a valid license until the
date and time contained in the card.
The court may accept other bond at any time and return the
license to the person. The court shall return the license to the
person when judgment is satisfied, including, but not limited to,
compliance with any court orders, unless a suspension or
cancellation is part of the penalty imposed.
Neither "the violator's notice to appear" nor a court-
granted card shall continue driving privileges beyond the
expiration date of the license.
If the person arrested fails to appear in court at the date
and time set by the court or fails to satisfy the judgment of the
court, including, but not limited to, compliance with all court
orders within the time allowed by the court, the court may declare
the forfeiture of the person's license. Thirty days after the
declaration of the forfeiture, the court shall forward the
person's license to the registrar. The court also shall enter
information relative to the forfeiture on a form approved and
furnished by the registrar and send the form to the registrar. The
registrar shall suspend the person's license and send written
notification of the suspension to the person at the person's last
known address. No valid driver's or commercial driver's license
shall be granted to the person until the court having jurisdiction
orders that the forfeiture be terminated. The court shall inform
the registrar of the termination of the forfeiture by entering
information relative to the termination on a form approved and
furnished by the registrar and sending the form to the registrar.
Upon the termination, the person shall pay to the bureau of motor
vehicles a reinstatement fee of fifteen dollars to cover the costs
of the bureau in administering this section. The registrar shall
deposit the fees so paid into the state bureau of motor vehicles
fund created by section 4501.25 of the Revised Code.
In addition, upon receipt from the court of the copy of the
declaration of forfeiture, neither the registrar nor any deputy
registrar shall accept any application for the registration or
transfer of registration of any motor vehicle owned by or leased
in the name of the person named in the declaration of forfeiture
until the court having jurisdiction over the offense that led to
the suspension issues an order terminating the forfeiture.
However, for a motor vehicle leased in the name of a person named
in a declaration of forfeiture, the registrar shall not implement
the preceding sentence until the registrar adopts procedures for
that implementation under section 4503.39 of the Revised Code.
Upon receipt by the registrar of such an order, the registrar also
shall take the measures necessary to permit the person to register
a motor vehicle the person owns or leases or to transfer the
registration of a motor vehicle the person owns or leases if the
person later makes a proper application and otherwise is eligible
to be issued or to transfer a motor vehicle registration.
(B) Division (A) of this section applies to persons arrested
for violation of:
(1) Any of the provisions of Chapter 4511. or 4513. of the
Revised Code, except sections 4511.19, 4511.20, 4511.251, and
4513.36 of the Revised Code;
(2) Any municipal ordinance substantially similar to a
section included in division (B)(1) of this section;
(3) Any bylaw, rule, or regulation of the Ohio turnpike and
infrastructure commission substantially similar to a section
included in division (B)(1) of this section.
Division (A) of this section does not apply to those persons
issued a citation for the commission of a minor misdemeanor under
section 2935.26 of the Revised Code.
(C) No license shall be accepted as bond by an arresting
officer or by a court under this section until the officer or
court has notified the person that, if the person deposits the
license with the officer or court and either does not appear on
the date and at the time set by the officer or the court, if the
court sets a time, or does not satisfy any judgment rendered,
including, but not limited to, compliance with all court orders,
the license will be suspended, and the person will not be eligible
for reissuance of the license or issuance of a new license, or the
issuance of a certificate of registration for a motor vehicle
owned or leased by the person until the person appears and
complies with any order issued by the court. The person also is
subject to any criminal penalties that may apply to the person.
(D) The registrar shall not restore the person's driving or
vehicle registration privileges until the person pays the
reinstatement fee as provided in this section.
Sec. 3354.13. The ownership of a community college created
and established pursuant to provisions of sections 3354.02 and
3354.04 of the Revised Code, including all right, title, and
interest in and to all property, both real and personal,
pertaining thereto, shall be vested in the board of trustees of
the community college district in which such college is situated,
except as may be provided in a contract entered into under the
authority of division (A) of section 3354.09 of the Revised Code.
The board may acquire by appropriation any land, rights, rights of
way, franchises, easements, or other property necessary or proper
for the construction or the efficient operation of any facility of
the community college district, pursuant to the procedure provided
in section 5537.06 of the Revised Code, with respect to the Ohio
turnpike and infrastructure commission, and insofar as such
procedure is applicable.
Any instrument by which real property is acquired pursuant to
this section shall identify the agency of the state that has the
use and benefit of the real property as specified in section
5301.012 of the Revised Code.
Sec. 3355.10. The ownership of the university branch campus,
created and established pursuant to sections 3355.01 to 3355.14 of
the Revised Code, including all right, title, and interest in and
to all property, both real and personal, pertaining thereto, shall
be vested in the managing authority of the university branch
district. The board may acquire by appropriation any land, rights,
rights of way, franchises, easements, or other property necessary
or proper for the construction or the efficient operation of any
facility of the university branch district, pursuant to section
5537.06 of the Revised Code, with respect to the Ohio turnpike and
infrastructure commission, and insofar as such procedure is
applicable.
University branch district bonds, issued pursuant to section
3355.08 of the Revised Code, are lawful investments of banks,
savings banks, trust companies, trustees, boards of trustees of
sinking funds of municipal corporations, school districts,
counties, the administrator of workers' compensation, the state
teachers retirement system, the public employees retirement
system, and the school employees retirement system, and also are
acceptable as security for the deposit of public moneys.
Any instrument by which real property is acquired pursuant to
this section shall identify the agency of the state that has the
use and benefit of the real property as specified in section
5301.012 of the Revised Code.
Sec. 3357.12. The ownership of a technical college, created
and established pursuant to section 3357.07 of the Revised Code,
including all right, title, and interest in and to all property,
both real and personal, pertaining thereto, shall be vested in the
board of trustees of the technical college district in which such
college is situated. The board may acquire by appropriation any
land, rights, rights-of-way, franchises, easements, or other
property necessary or proper for the construction or the efficient
operation of any facility of the technical college district,
pursuant to the procedure provided in section 5537.06 of the
Revised Code, with respect to the Ohio turnpike and infrastructure
commission, and insofar as such procedure is applicable.
Any instrument by which real property is acquired pursuant to
this section shall identify the agency of the state that has the
use and benefit of the real property as specified in section
5301.012 of the Revised Code.
Sec. 5503.31. The state highway patrol shall have the same
authority as is conferred upon it by section 5503.02 of the
Revised Code with respect to the enforcement of state laws on
other roads and highways and on other state properties, to enforce
on all turnpike projects the laws of the state and the bylaws,
rules, and regulations of the Ohio turnpike and infrastructure
commission. The patrol, the superintendent of the patrol, and all
state highway patrol troopers shall have the same authority to
make arrests on all turnpike projects for violations of state laws
and of bylaws, rules, and regulations of the Ohio turnpike and
infrastructure commission as is conferred upon them by section
5503.02 of the Revised Code to make arrests on, and in connection
with offenses committed on, other roads and highways and on other
state properties.
Sec. 5503.32. The director of public safety may from time to
time enter into contracts with the Ohio turnpike and
infrastructure commission with respect to the policing of turnpike
projects by the state highway patrol. The contracts shall provide
for the reimbursement of the state by the commission for the costs
incurred by the patrol in policing turnpike projects, including,
but not limited to, the salaries of employees of the patrol
assigned to the policing, the current costs of funding retirement
pensions for the employees of the patrol and of providing workers'
compensation for them, the cost of training state highway patrol
troopers and radio operators assigned to turnpike projects, and
the cost of equipment and supplies used by the patrol in such
policing, and of housing for such troopers and radio operators, to
the extent that the equipment, supplies, and housing are not
directly furnished by the commission. Each contract may provide
for the ascertainment of such costs, and shall be of any duration,
not in excess of five years, and may contain any other terms, that
the director and the commission may agree upon. The patrol shall
not be obligated to furnish policing services on any turnpike
project beyond the extent required by the contract. All payments
pursuant to any contract in reimbursement of the costs of the
policing shall be deposited in the state treasury to the credit of
the turnpike policing fund, which is hereby created. All
investment earnings of the fund shall be credited to the fund.
Sec. 5513.01. (A) All purchases of machinery, materials,
supplies, or other articles that the director of transportation
makes shall be in the manner provided in this section. In all
cases except those in which the director provides written
authorization for purchases by district deputy directors of
transportation, all such purchases shall be made at the central
office of the department of transportation in Columbus. Before
making any purchase at that office, the director, as provided in
this section, shall give notice to bidders of the director's
intention to purchase. Where the expenditure does not exceed the
amount applicable to the purchase of supplies specified in
division (B) of section 125.05 of the Revised Code, as adjusted
pursuant to division (D) of that section, the director shall give
such notice as the director considers proper, or the director may
make the purchase without notice. Where the expenditure exceeds
the amount applicable to the purchase of supplies specified in
division (B) of section 125.05 of the Revised Code, as adjusted
pursuant to division (D) of that section, the director shall give
notice by posting for not less than ten days a written, typed, or
printed invitation to bidders on a bulletin board, which shall be
located in a place in the offices assigned to the department and
open to the public during business hours. Producers or
distributors of any product may notify the director, in writing,
of the class of articles for the furnishing of which they desire
to bid and their post-office addresses, in which case copies of
all invitations to bidders relating to the purchase of such
articles shall be mailed to such persons by the director by
regular first class mail at least ten days prior to the time fixed
for taking bids. The director also may mail copies of all
invitations to bidders to news agencies or other agencies or
organizations distributing information of this character. Requests
for invitations shall not be valid nor require action by the
director unless renewed, either annually or after such shorter
period as the director may prescribe by a general rule. The
invitation to bidders shall contain a brief statement of the
general character of the article that it is intended to purchase,
the approximate quantity desired, and a statement of the time and
place where bids will be received, and may relate to and describe
as many different articles as the director thinks proper, it being
the intent and purpose of this section to authorize the inclusion
in a single invitation of as many different articles as the
director desires to invite bids upon at any given time.
Invitations issued during each calendar year shall be given
consecutive numbers, and the number assigned to each invitation
shall appear on all copies thereof. In all cases where notice is
required by this section, sealed bids shall be taken, on forms
prescribed and furnished by the director, and modification of bids
after they have been opened shall not be permitted.
(B) The director may permit the Ohio turnpike and
infrastructure commission, any political subdivision, and any
state university or college to participate in contracts into which
the director has entered for the purchase of machinery, materials,
supplies, or other articles. The turnpike and infrastructure
commission and any political subdivision or state university or
college desiring to participate in such purchase contracts shall
file with the director a certified copy of the bylaws or rules of
the turnpike and infrastructure commission or the ordinance or
resolution of the legislative authority, board of trustees, or
other governing board requesting authorization to participate in
such contracts and agreeing to be bound by such terms and
conditions as the director prescribes. Purchases made by the
turnpike and infrastructure commission, political subdivisions, or
state universities or colleges under this division are exempt from
any competitive bidding required by law for the purchase of
machinery, materials, supplies, or other articles.
(C) As used in this section:
(1) "Political subdivision" means any county, township,
municipal corporation, conservancy district, township park
district, park district created under Chapter 1545. of the Revised
Code, port authority, regional transit authority, regional airport
authority, regional water and sewer district, county transit
board, or school district as defined in section 5513.04 of the
Revised Code.
(2) "State university or college" has the same meaning as in
division (A)(1) of section 3345.32 of the Revised Code.
(3) "Ohio turnpike and infrastructure commission" means the
commission created by section 5537.02 of the Revised Code.
Sec. 5533.31. The road known as interstate route eighty,
extending across Ohio from the Pennsylvania border in Trumbull
county to the Indiana border in Williams county, shall be known as
the "Christopher Columbus highway."
The director of transportation may erect suitable markers
upon the portions of such highway under his the director's
jurisdiction indicating its name, and the Ohio turnpike and
infrastructure commission may erect suitable markers on the
portions of such highway under its jurisdiction indicating its
name.
Sec. 5537.01. As used in this chapter:
(A) "Commission" means the Ohio turnpike and infrastructure
commission created by section 5537.02 of the Revised Code or, if
that commission is abolished, the board, body, officer, or
commission succeeding to the principal functions thereof or to
which the powers given by this chapter to the commission are given
by law.
(B) "Project" or "turnpike Turnpike project" means any
express or limited access highway, super highway, or motorway
constructed, operated, or improved, under the jurisdiction of the
commission and pursuant to this chapter, at a location or
locations reviewed by the turnpike legislative review committee
and approved by the governor, including all bridges, tunnels,
overpasses, underpasses, interchanges, entrance plazas,
approaches, those portions of connecting public roads that serve
interchanges and are determined by the commission and the director
of transportation to be necessary for the safe merging of traffic
between the turnpike project and those public roads, toll booths,
service facilities, and administration, storage, and other
buildings, property, and facilities that the commission considers
necessary for the operation or policing of the turnpike project,
together with all property and rights which may be acquired by the
commission for the construction, maintenance, or operation of the
turnpike project, and includes any sections or extensions of a
turnpike project designated by the commission as such for the
particular purpose. Each turnpike project shall be separately
designated, by name or number, and may be constructed, improved,
or extended in such sections as the commission may from time to
time determine. Construction includes the improvement and
renovation of a previously constructed turnpike project, including
additional interchanges, whether or not the turnpike project was
initially constructed by the commission.
(C) "Infrastructure project" means any public express or
limited access highway, super highway, or motorway, including all
bridges, tunnels, overpasses, underpasses, interchanges, entrance
plazas, approaches, and those portions of connecting public roads
that serve interchanges, that is constructed or improved, in whole
or in part, with infrastructure funding approved pursuant to
criteria established under section 5537.18 of the Revised Code.
(D) "Cost," as applied to construction of a turnpike project
or an infrastructure project, includes the cost of construction,
including bridges over or under existing highways and railroads,
acquisition of all property acquired either by the commission or
by the owner of the infrastructure project for the construction,
demolishing or removing any buildings or structures on land so
acquired, including the cost of acquiring any lands to which the
buildings or structures may be moved, site clearance, improvement,
and preparation, diverting public roads, interchanges with public
roads, access roads to private property, including the cost of
land or easements therefor, all machinery, furnishings, and
equipment, communications facilities, financing expenses, interest
prior to and during construction and for one year after completion
of construction, traffic estimates, indemnity and surety bonds and
premiums on insurance, title work and title commitments,
insurance, and guarantees, engineering, feasibility studies, and
legal expenses, plans, specifications, surveys, estimates of cost
and revenues, other expenses necessary or incident to determining
the feasibility or practicability of constructing or operating a
turnpike project or an infrastructure project, administrative
expenses, and any other expense that may be necessary or incident
to the construction of the turnpike project or an infrastructure
project, the financing of the construction, and the placing of the
turnpike project or an infrastructure project in operation. Any
obligation or expense incurred by the department of transportation
with the approval of the commission for surveys, borings,
preparation of plans and specifications, and other engineering
services in connection with the construction of a turnpike project
or an infrastructure project, or by the federal government with
the approval of the commission for any public road projects which
must be reimbursed as a condition to the exercise of any of the
powers of the commission under this chapter, shall be regarded as
a part of the cost of the turnpike project or an infrastructure
project and shall be reimbursed to the state or the federal
government, as the case may be, from revenues, state taxes, or the
proceeds of bonds as authorized by this chapter.
(D)(E) "Owner" includes all persons having any title or
interest in any property authorized to be acquired by the
commission for turnpike projects under this chapter, or the public
entity for whom an infrastructure project is funded, in whole or
in part, by the commission under this chapter.
(E)(F) "Revenues" means all tolls, service revenues,
investment income on special funds, rentals, gifts, grants, and
all other moneys coming into the possession of or under the
control of the commission by virtue of this chapter, except the
proceeds from the sale of bonds. "Revenues" does not include state
taxes.
(F)(G) "Public roads" means all public highways, roads, and
streets in the state, whether maintained by a state agency or any
other governmental agency.
(G)(H) "Public utility facilities" means tracks, pipes,
mains, conduits, cables, wires, towers, poles, and other equipment
and appliances of any public utility.
(H)(I) "Financing expenses" means all costs and expenses
relating to the authorization, issuance, sale, delivery,
authentication, deposit, custody, clearing, registration,
transfer, exchange, fractionalization, replacement, payment, and
servicing of bonds including, without limitation, costs and
expenses for or relating to publication and printing, postage,
delivery, preliminary and final official statements, offering
circulars, and informational statements, travel and
transportation, underwriters, placement agents, investment
bankers, paying agents, registrars, authenticating agents,
remarketing agents, custodians, clearing agencies or corporations,
securities depositories, financial advisory services,
certifications, audits, federal or state regulatory agencies,
accounting and computation services, legal services and obtaining
approving legal opinions and other legal opinions, credit ratings,
redemption premiums, and credit enhancement facilities.
(I)(J) "Bond proceedings" means the resolutions, trust
agreements, certifications, notices, sale proceedings, leases,
lease-purchase agreements, assignments, credit enhancement
facility agreements, and other agreements, instruments, and
documents, as amended and supplemented, or any one or more or any
combination thereof, authorizing, or authorizing or providing for
the terms and conditions applicable to, or providing for the
security or sale or award or liquidity of, bonds, and includes the
provisions set forth or incorporated in those bonds and bond
proceedings.
(J)(K) "Bond service charges" means principal, including any
mandatory sinking fund or mandatory redemption requirements for
the retirement of bonds, and interest and any redemption premium
payable on bonds, as those payments come due and are payable to
the bondholder or to a person making payment under a credit
enhancement facility of those bond service charges to a
bondholder.
(K)(L) "Bond service fund" means the applicable fund created
by the bond proceedings for and pledged to the payment of bond
service charges on bonds provided for by those proceedings,
including all moneys and investments, and earnings from
investments, credited and to be credited to that fund as provided
in the bond proceedings.
(L)(M) "Bonds" means bonds, notes, including notes
anticipating bonds or other notes, commercial paper, certificates
of participation, or other evidences of obligation, including any
interest coupons pertaining thereto, issued by the commission
pursuant to this chapter.
(M)(N) "Infrastructure fund" means the applicable fund or
funds created by the bond proceedings, which shall be used to pay
or defray the cost of infrastructure projects recommended by the
director of transportation and evaluated and approved by the
commission.
(O) "Net revenues" means revenues lawfully available to pay
both current operating expenses of the commission and bond service
charges in any fiscal year or other specified period, less current
operating expenses of the commission and any amount necessary to
maintain a working capital reserve for that period.
(N)(P) "Pledged revenues" means net revenues, moneys and
investments, and earnings on those investments, in the applicable
bond service fund and any other special funds, and the proceeds of
any bonds issued for the purpose of refunding prior bonds, all as
lawfully available and by resolution of the commission committed
for application as pledged revenues to the payment of bond service
charges on particular issues of bonds.
(O)(Q) "Service facilities" means service stations,
restaurants, and other facilities for food service, roadside parks
and rest areas, parking, camping, tenting, rest, and sleeping
facilities, hotels or motels, and all similar and other facilities
providing services to the traveling public in connection with the
use of a turnpike project and owned, leased, licensed, or operated
by the commission.
(P)(R) "Service revenues" means those revenues of the
commission derived from its ownership, leasing, licensing, or
operation of service facilities.
(Q)(S) "Special funds" means the applicable bond service fund
and any accounts and subaccounts in that fund, any other funds or
accounts permitted by and established under, and identified as a
"special fund" or "special account" in, the bond proceedings,
including any special fund or account established for purposes of
rebate or other requirements under federal income tax laws.
(R)(T) "State agencies" means the state, officers of the
state, and boards, departments, branches, divisions, or other
units or agencies of the state.
(S)(U) "State taxes" means receipts of the commission from
the proceeds of state taxes or excises levied and collected, or
appropriated by the general assembly to the commission, for the
purposes and functions of the commission. State taxes do not
include tolls, or investment earnings on state taxes except on
those state taxes referred to in Section 5a of Article XII, Ohio
Constitution.
(T)(V) "Tolls" means tolls, special fees or permit fees, or
other charges by the commission to the owners, lessors, lessees,
or operators of motor vehicles for the operation of or the right
to operate those vehicles on a turnpike project.
(U)(W) "Credit enhancement facilities" means letters of
credit, lines of credit, standby, contingent, or firm securities
purchase agreements, insurance, or surety arrangements,
guarantees, and other arrangements that provide for direct or
contingent payment of bond service charges, for security or
additional security in the event of nonpayment or default in
respect of bonds, or for making payment of bond service charges
and at the option and on demand of bondholders or at the option of
the commission or upon certain conditions occurring under put or
similar arrangements, or for otherwise supporting the credit or
liquidity of the bonds, and includes credit, reimbursement,
marketing, remarketing, indexing, carrying, interest rate hedge,
and subrogation agreements, and other agreements and arrangements
for payment and reimbursement of the person providing the credit
enhancement facility and the security for that payment and
reimbursement.
(V)(X) "Person" has the same meaning as in section 1.59 of
the Revised Code and, unless the context otherwise provides, also
includes any governmental agency and any combination of those
persons.
(W)(Y) "Refund" means to fund and retire outstanding bonds,
including advance refunding with or without payment or redemption
prior to stated maturity.
(X)(Z) "Governmental agency" means any state agency, federal
agency, political subdivision, or other local, interstate, or
regional governmental agency, and any combination of those
agencies.
(Y)(AA) "Property" has the same meaning as in section 1.59 of
the Revised Code, and includes interests in property.
(Z)(BB) "Administrative agent," "agent," "commercial paper,"
"floating rate interest structure," "indexing agent," "interest
rate hedge," "interest rate period," "put arrangement," and
"remarketing agent" have the same meanings as in section 9.98 of
the Revised Code.
(AA)(CC) "Outstanding," as applied to bonds, means
outstanding in accordance with the terms of the bonds and the
applicable bond proceedings.
(BB)(DD) "Ohio turnpike system" or "system" means all
existing and future turnpike projects constructed, operated, and
maintained under the jurisdiction of the commission.
(EE) "Ohio turnpike and infrastructure system" means turnpike
projects and infrastructure projects funded by the commission
existing on and after July 1, 2013.
Sec. 5537.02. (A) There is hereby created a commission to be
known on and after July 1, 2013, as the "Ohio turnpike and
infrastructure commission." The commission is a body both
corporate and politic, constituting an instrumentality of the
state, and the exercise by it of the powers conferred by this
chapter in the construction, operation, and maintenance of the
Ohio turnpike system, and also in entering into agreements with
the department of transportation to pay the cost or a portion of
the costs of infrastructure projects, are and shall be held to be
essential governmental functions of the state, but the commission
shall not be immune from liability by reason thereof. Chapter
2744. of the Revised Code applies to the commission and the
commission is a political subdivision of the state for purposes of
that chapter. The commission is subject to all provisions of law
generally applicable to state agencies which do not conflict with
this chapter.
(B)(1) The commission shall consist of nine ten members as
follows:
(a) Four Six members appointed by the governor with the
advice and consent of the senate, no more than two three of whom
shall be members of the same political party;
(b) The director of transportation, who shall be a voting
member, and the director of budget and management, and the
director of development, each both of whom shall be a member serve
as ex officio members, without compensation;
(c) One member of the senate, appointed by the president of
the senate, who shall represent either a district in which is
located or through which passes a portion of a turnpike project
that is part of the Ohio turnpike system or a district located in
the vicinity of a turnpike project that is part of the Ohio
turnpike system;
(d) One member of the house of representatives, appointed by
the speaker of the house of representatives, who shall represent
either a district in which is located or through which passes a
portion of a turnpike project that is part of the Ohio turnpike
system or a district located in the vicinity of a turnpike project
that is part of the Ohio turnpike system.
(2) The members appointed by the governor shall be residents
of the state, shall have been qualified electors therein for a
period of at least five years next preceding their appointment,
and. In making the appointments, the governor may appoint persons
who reside in different geographic areas of the state, taking into
consideration the various turnpike and infrastructure projects in
the state. Members appointed to the commission prior to July 1,
2013, shall serve terms of eight years commencing on the first day
of July and ending on the thirtieth day of June.
Thereafter,
members appointed by the governor shall serve terms of three years
commencing on the first day of July and ending on the thirtieth
day of June. Those members appointed by the president of the
senate or the speaker of the house of representatives shall serve
a term of the remainder of the general assembly during which the
senator or representative is appointed. Each appointed member
shall hold office from the date of appointment until the end of
the term for which the member was appointed. If a commission
member dies or resigns, or if a senator or representative who is a
member of the commission ceases to be a senator or representative,
or if an ex officio member ceases to hold the applicable office,
the vacancy shall be filled in the same manner as provided in
division (B)(1) of this section. Any member who fills a vacancy
occurring prior to the end of the term for which the member's
predecessor was appointed shall, if appointed by the governor,
hold office for the remainder of such term or, if appointed by the
president of the senate or the speaker of the house of
representatives, shall hold office for the remainder of the term
or for a shorter period of time as determined by the president or
the speaker. Any member appointed by the governor shall continue
in office subsequent to the expiration date of the member's term
until the member's successor takes office, or until a period of
sixty days has elapsed, whichever occurs first. A member of the
commission is eligible for reappointment. Each member of the
commission appointed by the governor, before entering upon the
member's duties, shall take an oath as provided by Section 7 of
Article XV, Ohio Constitution. The governor, the president of the
senate, or the speaker of the house of representatives, may at any
time remove their respective appointees to the commission for
misfeasance, nonfeasance, or malfeasance in office.
(3)(a) A member of the commission who is appointed by the
president of the senate or the speaker of the house of
representatives shall not participate in any vote of the
commission. Serving as an appointed member of the commission under
divisions (B)(1)(c), (1)(d), or (2) of this section does not
constitute grounds for resignation from the senate or the house of
representatives under section 101.26 of the Revised Code.
(b) The director of budget and management and the director of
development shall not participate in any vote of the commission.
(C) The voting members of the commission shall elect one of
the appointed voting members as chairperson and another as
vice-chairperson, and shall appoint a secretary-treasurer who need
not be a member of the commission. Three Four of the voting
members of the commission constitute a quorum, and the affirmative
vote of three four voting members is necessary for any action
taken by the commission. No vacancy in the membership of the
commission impairs the rights of a quorum to exercise all the
rights and perform all the duties of the commission.
(D) Each member of the commission appointed by the governor
shall give a surety bond to the commission in the penal sum of
twenty-five thousand dollars and the secretary-treasurer shall
give such a bond in at least the penal sum of fifty thousand
dollars. The commission may require any of its officers or
employees to file surety bonds including a blanket bond as
provided in section 3.06 of the Revised Code. Each such bond shall
be in favor of the commission and shall be conditioned upon the
faithful performance of the duties of the office, executed by a
surety company authorized to transact business in this state,
approved by the governor, and filed in the office of the secretary
of state. The costs of the surety bonds shall be paid or
reimbursed by the commission from revenues. Each member of the
commission appointed by the governor shall receive an annual
salary of five thousand dollars, payable in monthly installments.
Each member shall be reimbursed for the member's actual expenses
necessarily incurred in the performance of the member's duties.
All costs and expenses incurred by the commission in carrying out
this chapter shall be payable solely from revenues and state
taxes, and no liability or obligation shall be incurred by the
commission beyond the extent to which revenues have been provided
for pursuant to this chapter.
Sec. 5537.03. In order to remove present and anticipated
handicaps and potential hazards on the congested highways in this
state, to facilitate vehicular traffic throughout the state, to
finance infrastructure projects that enhance mobility and economic
development in Ohio, to promote the agricultural, commercial,
recreational, tourism, and industrial development of the state,
and to provide for the general welfare by the construction,
improvement, and maintenance of modern express highways embodying
safety devices, including without limitation center divisions,
ample shoulder widths, longsight distances, multiple lanes in each
direction, and grade separations at intersections with other
public roads and railroads, the Ohio turnpike and infrastructure
commission, subject may do the following:
(A) Subject to section 5537.26 of the Revised Code, may
construct, maintain, repair, and operate a system of turnpike
projects at locations that are reviewed by the turnpike
legislative review committee and approved by the governor, and in
accordance with alignment and design standards that are approved
by the director of transportation, and issue revenue bonds of this
state, payable solely from pledged revenues, to pay the cost of
those projects. The turnpikes and turnpike projects authorized by
this chapter are hereby or shall be made part of the Ohio turnpike
system.
(B) Provide the infrastructure funds to pay the cost or a
portion of the cost of infrastructure projects as recommended by
the director of transportation pursuant to a determination made by
the commission based on criteria set forth in rules adopted by the
commission under section 5537.18 of the Revised Code. A
determination by the commission to provide infrastructure funds
for an infrastructure project shall be conclusive and
incontestable.
Sec. 5537.04. (A) The Ohio turnpike and infrastructure
commission may do any of the following:
(1) Adopt bylaws for the regulation of its affairs and the
conduct of its business;
(2) Adopt an official seal, which shall not be the great seal
of the state and which need not be in compliance with section 5.10
of the Revised Code;
(3) Maintain a principal office and suboffices at such places
within the state as it designates;
(4) Sue With respect to the Ohio turnpike system and turnpike
projects, sue and be sued in its own name, plead and be impleaded,
provided any actions against the commission shall be brought in
the court of common pleas of the county in which the principal
office of the commission is located, or in the court of common
pleas of the county in which the cause of action arose if that
county is located within this state, and all summonses,
exceptions, and notices of every kind shall be served on the
commission by leaving a copy thereof at its principal office with
the secretary-treasurer or executive director of the commission;
(5) With respect to infrastructure projects only, sue and be
sued in its own name, plead and be impleaded, provided any actions
against the commission shall be brought in the court of common
pleas of Franklin county, and all summonses, exceptions, and
notices of every kind shall be served on the commission by leaving
a copy thereof at its principal office with the
secretary-treasurer or executive director of the commission.
(6) Construct, maintain, repair, police, and operate the
turnpike system, and establish rules for the use of any turnpike
project;
(6)(7) Issue revenue bonds of the state, payable solely from
pledged revenues, as provided in this chapter, for the purpose of
paying any part of the cost of constructing any one or more
turnpike projects or infrastructure projects;
(7)(8) Fix, and revise from time to time, and charge and
collect tolls by any method approved by the commission, including,
but not limited to, manual methods or through electronic
technology accepted within the tolling industry;
(8)(9) Acquire, hold, and dispose of property in the exercise
of its powers and the performance of its duties under this
chapter;
(9)(10) Designate the locations and establish, limit, and
control such points of ingress to and egress from each turnpike
project as are necessary or desirable in the judgment of the
commission and of the director of transportation to ensure the
proper operation and maintenance of that turnpike project, and
prohibit entrance to such a turnpike project from any point not so
designated;
(10)(11) Make and enter into all contracts and agreements
necessary or incidental to the performance of its duties and the
execution of its powers under this chapter, including
participation in a multi-jurisdiction electronic toll collection
agreement and collection or remittance of tolls, fees, or other
charges to or from entities or agencies that participate in such
an agreement;
(11)(12) Employ or retain or contract for the services of
consulting engineers, superintendents, managers, and any other
engineers, construction and accounting experts, financial
advisers, trustees, marketing, remarketing, and administrative
agents, attorneys, and other employees, independent contractors,
or agents that are necessary in its judgment and fix their
compensation, provided all such expenses shall be payable solely
from the proceeds of bonds or from revenues of the Ohio turnpike
system;
(12)(13) Receive and accept from any federal agency, subject
to the approval of the governor, and from any other governmental
agency grants for or in aid of the construction, reconstruction,
repair, renovation, maintenance, or operation of any turnpike
project, and receive and accept aid or contributions from any
source or person of money, property, labor, or other things of
value, to be held, used, and applied only for the purposes for
which such grants and contributions are made;
(13)(14) Provide coverage for its employees under Chapters
4123. and 4141. of the Revised Code;
(14)(15) Fix and revise by rule, from time to time, such
permit fees, processing fees, or administrative charges for the
prepayment, deferred payment, or nonpayment of tolls and use of
electronic tolling equipment or other commission property;
(16) Adopt rules for the issuance of citations either by a
policing authority or through administrative means to individuals
or corporations that evade the payment of tolls established for
the use of any turnpike project;
(17) Approve funding and authorize agreements with the
department of transportation for the funding of infrastructure
projects recommended by the director of transportation pursuant to
the criteria established by rule under section 5537.18 of the
Revised Code.
(B) The commission may do all acts necessary or proper to
carry out the powers expressly granted in this chapter.
Sec. 5537.05. (A) The Ohio turnpike and infrastructure
commission may construct grade separations at intersections of any
turnpike project with public roads and railroads, and change and
adjust the lines and grades of those roads and railroads, and of
public utility facilities, which change and adjustment of lines
and grades of those roads shall be subject to the approval of the
governmental agency having jurisdiction over the road, so as to
accommodate them to the design of the grade separation. The cost
of the grade separation and any damage incurred in changing and
adjusting the lines and grades of roads, railroads, and public
utility facilities shall be ascertained and paid by the commission
as a part of the cost of the turnpike project or from revenues or
state taxes.
(1) If the commission finds it necessary to change the
location of any portion of any public road, railroad, or public
utility facility, it shall cause the same to be reconstructed at
the location the governmental agency having jurisdiction over such
road, railroad, or public utility facility considers most
favorable. The construction shall be of substantially the same
type and in as good condition as the original road, railroad, or
public utility facility. The cost of the reconstruction,
relocation, or removal and any damage incurred in changing the
location shall be ascertained and paid by the commission as a part
of the cost of the turnpike project or from revenues or state
taxes.
(2) The commission may petition the board of county
commissioners of the county in which is situated any public road
or part thereof affected by the location therein of any turnpike
project, for the vacation or relocation of the road or any part
thereof, in the same manner and with the same force and effect as
is given to the director of transportation pursuant to sections
5553.04 to 5553.11 of the Revised Code.
(B) The commission and its authorized agents and employees,
after proper notice, may enter upon any lands, waters, and
premises in the state for the purpose of making surveys,
soundings, drillings, and examinations that are necessary or
proper for the purposes of this chapter, and the entry shall not
be deemed a trespass, nor shall an entry for those purposes be
deemed an entry under any appropriation proceedings which may then
be pending, provided that before entering upon the premises of any
railroad notice shall be given to the superintendent of the
railroad involved at least five days in advance of entry, and
provided that no survey, sounding, drilling, and examination shall
be made between the rails or so close to a railroad track as would
render the track unusable. The commission shall make reimbursement
for any actual damage resulting to such lands, waters, and
premises and to private property located in, on, along, over, or
under such lands, waters, and premises, as a result of such
activities. The state, subject to the approval of the governor,
hereby consents to the use of all lands owned by it, including
lands lying under water, that are necessary or proper for the
construction, maintenance, or operation of any turnpike project,
provided adequate consideration is provided for the use.
(C) The commission may make reasonable provisions or rules
for the installation, construction, maintenance, repair, renewal,
relocation, and removal of public utility facilities in, on,
along, over, or under any turnpike project. Whenever the
commission determines that it is necessary that any public utility
facilities located in, on, along, over, or under any turnpike
project should be relocated in or removed from the turnpike
project, the public utility owning or operating the facilities
shall relocate or remove them in accordance with the order of the
commission. Except as otherwise provided in any license or other
agreement with the commission, the cost and expenses of such
relocation or removal, including the cost of installing the
facilities in a new location, the cost of any lands, or any rights
or interests in lands, and any other rights, acquired to
accomplish the relocation or removal, shall be ascertained and
paid by the commission as part of the cost of the turnpike project
or from revenues of the Ohio turnpike system. In case of any such
relocation or removal of facilities, the public utility owning or
operating them and its successors or assigns may maintain and
operate the facilities, with the necessary appurtenances, in the
new location, for as long a period, and upon the same terms, as it
had the right to maintain and operate the facilities in their
former location.
(D) The commission is subject to Chapters 1515., 6131.,
6133., 6135., and 6137. of the Revised Code and shall pay any
assessments levied under those chapters for an improvement or
maintenance of an improvement on land under the control or
ownership of the commission.
Sec. 5537.051. (A)(1) In any county that as of January 1,
2011, had closed one or more roads as a result of grade separation
failure at intersections of a turnpike project with a county or
township road, the Ohio turnpike and infrastructure commission is
responsible for the major maintenance and repair and replacement
of failed grade separations. The governmental entity with
jurisdiction over the county or township road is responsible for
routine maintenance of such failed grade separations.
(2) This section does not apply to any grade separation at
intersections of a turnpike project with a county or township road
except as described in division (A)(1) of this section.
(3) Major maintenance and repair and replacement of
aforementioned failed grade separations shall commence not later
than July 1, 2011, and be completed before December 31, 2014.
(B) As used in this section:
(1) "Major maintenance and repair and replacement" relates to
all elements constructed as part of or required for a grade
separation, including bridges, pile, foundations, substructures,
abutments, piers, superstructures, approach slabs, slopes,
embankments, fences, and appurtenances.
(2) "Routine maintenance" includes, without limitation,
clearing debris, sweeping, snow and ice removal, wearing surface
improvements, marking for traffic control, box culverts, drainage
facilities including headwalls and underdrains, inlets, catch
basins and grates, guardrails, minor and emergency repairs to
railing and appurtenances, and emergency patching.
Sec. 5537.06. (A) The Ohio turnpike and infrastructure
commission may acquire by purchase, lease, lease-purchase, lease
with option to purchase, appropriation, or otherwise and in such
manner and for such consideration as it considers proper, any
public or private property necessary, convenient, or proper for
the construction, maintenance, or efficient operation of the Ohio
turnpike system. The commission may pledge net revenues, to the
extent permitted by this chapter with respect to bonds, to secure
payments to be made by the commission under any such lease,
lease-purchase agreement, or lease with option to purchase. Title
to personal property, and interests less than a fee in real
property, shall be held in the name of the commission. Title to
real property held in fee shall be held in the name of the state
for the use of the commission. In any proceedings for
appropriation under this section, the procedure to be followed
shall be in accordance with the procedure provided in sections
163.01 to 163.22 of the Revised Code, including division (B) of
section 163.06 of the Revised Code notwithstanding the limitation
in that division of its applicability to roads open to the public
without charge. Except as otherwise agreed upon by the owner, full
compensation shall be paid for public property so taken.
(B) This section does not authorize the commission to take or
disturb property or facilities belonging to any public utility or
to a common carrier engaged in interstate commerce, which property
or facilities are required for the proper and convenient operation
of the public utility or common carrier, unless provision is made
for the restoration, relocation, replication, or duplication of
the property or facilities elsewhere at the sole cost of the
commission.
(C) Disposition of real property shall be by the commission
in the manner and for the consideration it determines if to a
state agency or other governmental agency, and otherwise in the
manner provided in section 5501.45 of the Revised Code for the
disposition of property by the director of transportation.
Disposition of personal property shall be in the manner and for
the consideration the commission determines.
(D) Any instrument by which real property is acquired
pursuant to this section shall identify the agency of the state
that has the use and benefit of the real property as specified in
section 5301.012 of the Revised Code.
Sec. 5537.07. (A) When the cost to the Ohio turnpike and
infrastructure commission under any contract with a person other
than a governmental agency involves an expenditure of more than
fifty thousand dollars, the commission shall make a written
contract with the lowest responsive and responsible bidder in
accordance with section 9.312 of the Revised Code after
advertisement for not less than two consecutive weeks in a
newspaper of general circulation in Franklin county, and in such
other publications as the commission determines, which notice
shall state the general character of the work and the general
character of the materials to be furnished, the place where plans
and specifications therefor may be examined, and the time and
place of receiving bids. The commission may require that the cost
estimate for the construction, demolition, alteration, repair,
improvement, renovation, or reconstruction of roadways and bridges
for which the commission is required to receive bids be kept
confidential and remain confidential until after all bids for the
public improvement have been received or the deadline for
receiving bids has passed. Thereafter, and before opening the bids
submitted for the roadways and bridges, the commission shall make
the cost estimate public knowledge by reading the cost estimate in
a public place. The commission may reject any and all bids. The
requirements of this division do not apply to contracts for the
acquisition of real property or compensation for professional or
other personal services.
(B) Each bid for a contract for construction, demolition,
alteration, repair, improvement, renovation, or reconstruction
shall contain the full name of every person interested in it and
shall meet the requirements of section 153.54 of the Revised Code.
(C) Other than for a contract referred to in division (B) of
this section, each bid for a contract that involves an expenditure
in excess of one hundred fifty thousand dollars or any contract
with a service facility operator shall contain the full name of
every person interested in it and shall be accompanied by a
sufficient bond or certified check on a solvent bank that if the
bid is accepted a contract will be entered into and the
performance of its proposal secured.
(D) Other than a contract referred to in division (B) of this
section, a bond with good and sufficient surety, in a form as
prescribed and approved by the commission, shall be required of
every contractor awarded a contract that involves an expenditure
in excess of one hundred fifty thousand dollars or any contract
with a service facility operator. The bond shall be in an amount
equal to at least fifty per cent of the contract price and shall
be conditioned upon the faithful performance of the contract.
(E) Notwithstanding any other provisions of this section, the
commission may establish a program to expedite special turnpike
projects by combining the design and construction elements of any
public improvement project into a single contract. The commission
shall prepare and distribute a scope of work document upon which
the bidders shall base their bids. At a minimum, bidders shall
meet the requirements of section 4733.161 of the Revised Code.
Except in regard to those requirements relating to providing
plans, the commission shall award contracts following the
requirements set forth in divisions (A), (B), (C), and (D) of this
section.
Sec. 5537.08. (A) The Ohio turnpike and infrastructure
commission may provide by resolution for the issuance, at one time
or from time to time, of revenue bonds of the state for the
purpose of paying all or any part of the cost of any one or more
turnpike projects or infrastructure projects. The bond service
charges shall be payable solely from pledged revenues pledged for
such payment pursuant to the applicable bond proceedings. The
bonds of each issue shall be dated, shall bear interest at a rate
or rates or at variable rates, and shall mature or be payable at
such time or times, with a final maturity not to exceed forty
years from their date or dates, all as determined by the
commission in the bond proceedings. The commission shall determine
the form of the bonds, including any interest coupons to be
attached thereto, and shall fix the denomination or denominations
of the bonds and the place or places of payment of bond service
charges.
(B) The bonds shall be signed by the chairperson or
vice-chairperson of the commission or by the facsimile signature
of that officer, the official seal of the commission or a
facsimile thereof shall be affixed thereto or printed thereon and
attested by the secretary-treasurer of the commission, which may
be by facsimile signature, and any coupons attached thereto shall
bear the facsimile signature of the chairperson or
vice-chairperson of the commission. In case any officer whose
signature, or a facsimile of whose signature, appears on any bonds
or coupons ceases to be such officer before delivery of bonds,
such signature or facsimile shall nevertheless be valid and
sufficient for all purposes the same as if the officer had
remained in office until such delivery.
(C) Subject to the bond proceedings and provisions for
registration, the bonds shall have all the qualities and incidents
of negotiable instruments under Title XIII of the Revised Code.
The bonds may be issued in such form or forms as the commission
determines, including without limitation coupon, book entry, and
fully registered form, and provision may be made for the
registration of any coupon bonds as to principal alone and also as
to both principal and interest, and for the exchange of bonds
between forms. The commission may sell such bonds by competitive
bid on the best bid after advertisement or request for bids or by
private sale in the manner, and for the price, it determines to be
for the best interest of the state. The determination of the
commission as to the manner of sale, by competitive bid or by
private sale, shall be approved by the controlling board.
(D) The proceeds of the bonds of each issue shall be used
solely for the payment of the costs of the turnpike project or
projects for which such bonds were issued, and or for the payment
of the costs of the infrastructure project or projects as approved
by the commission under section 5537.18 of the Revised Code. The
proceeds shall be disbursed in such manner and under such
restrictions as the commission provides in the applicable bond
proceedings.
(E) Prior to the preparation of definitive bonds, the
commission may, under like restrictions, issue interim receipts or
temporary bonds or bond anticipation notes, with or without
coupons, exchangeable for definitive bonds when such bonds have
been executed and are available for delivery. The commission may
provide for the replacement of any mutilated, stolen, destroyed,
or lost bonds. Bonds may be issued by the commission under this
chapter without obtaining the consent of any state agency, and
without any other proceedings or the happening of any other
conditions or things than those proceedings, conditions, or things
that are specifically required by this chapter or those
proceedings.
(F) Sections 9.98 to 9.983 of the Revised Code apply to the
bonds.
(G) The bond proceedings shall provide, subject to the
provisions of any other applicable bond proceedings, for the
pledge to the payment of bond service charges and of any costs of
or relating to credit enhancement facilities of all, or such part
as the commission may determine, of the pledged revenues and the
applicable special fund or funds, which pledges may be made to
secure the bonds on a parity with bonds theretofore or thereafter
issued if and to the extent provided in the bond proceedings.
Every pledge, and every covenant and agreement with respect
thereto, made in the bond proceedings may in the bond proceedings
be extended to the benefit of the owners and holders of bonds and
to any trustee and any person providing a credit enhancement
facility for those bonds, for the further security for the payment
of the bond service charges and credit enhancement facility costs.
(H) The bond proceedings may contain additional provisions as
to:
(1) The redemption of bonds prior to maturity at the option
of the commission or of the bondholders or upon the occurrence of
certain stated conditions, and at such price or prices and under
such terms and conditions as are provided in the bond proceedings;
(2) Other terms of the bonds;
(3) Limitations on the issuance of additional bonds;
(4) The terms of any trust agreement securing the bonds or
under which the same may be issued;
(5) Any or every provision of the bond proceedings being
binding upon the commission and state agencies, or other person as
may from time to time have the authority under law to take such
actions as may be necessary to perform all or any part of the duty
required by such provision;
(6) Any provision that may be made in a trust agreement;
(7) Any other or additional agreements with the holders of
the bonds, or the trustee therefor, relating to the bonds or the
security for the bonds, including agreements for credit
enhancement facilities.
(I) Any holder of bonds or a trustee under the bond
proceedings, except to the extent that the holder's or trustee's
rights are restricted by the bond proceedings, may by any suitable
form of legal proceedings, protect and enforce any rights under
the laws of this state or granted by the bond proceedings. Those
rights include the right to compel the performance of all duties
of the commission and state agencies required by this chapter or
the bond proceedings; to enjoin unlawful activities; and in the
event of default with respect to the payment of any bond service
charges on any bonds or in the performance of any covenant or
agreement on the part of the commission contained in the bond
proceedings, to apply to a court having jurisdiction of the cause
to appoint a receiver to receive and administer the revenues and
the pledged revenues which are pledged to the payment of the bond
service charges on such bonds or which are the subject of the
covenant or agreement, with full power to pay, and to provide for
payment of, bond service charges on such bonds, and with such
powers, subject to the direction of the court, as are accorded
receivers in general equity cases, excluding any power to pledge
additional revenues or receipts or other income, funds, or moneys
of the commission or state agencies to the payment of such bond
service charges and excluding the power to take possession of,
mortgage, or cause the sale or otherwise dispose of any turnpike
project or other property of the commission.
(J) Each duty of the commission and the commission's officers
and employees, undertaken pursuant to the bond proceedings, is
hereby established as a duty of the commission, and of each such
officer, member, or employee having authority to perform the duty,
specifically enjoined by law resulting from an office, trust, or
station within the meaning of section 2731.01 of the Revised Code.
(K) The commission's officers or employees are not liable in
their personal capacities on any bonds issued by the commission or
any agreements of or with the commission relating to those bonds.
(L) The bonds are lawful investments for banks, savings and
loan associations, credit union share guaranty corporations, trust
companies, trustees, fiduciaries, insurance companies, including
domestic for life and domestic not for life, trustees or other
officers having charge of sinking and bond retirement or other
funds of the state or its political subdivisions and taxing
districts, the commissioners of the sinking fund of the state, the
administrator of workers' compensation, the state teachers
retirement system, the public employees retirement system, the
school employees retirement system, and the Ohio police and fire
pension fund, notwithstanding any other provisions of the Revised
Code or rules adopted pursuant thereto by any state agency with
respect to investments by them, and are also acceptable as
security for the repayment of the deposit of public moneys.
(M) Provision may be made in the applicable bond proceedings
for the establishment of separate accounts in the bond service
fund and for the application of such accounts only to the
specified bond service charges pertinent to such accounts and bond
service fund, and for other accounts therein within the general
purposes of such fund.
(N) The commission may pledge all, or such portion as it
determines, of the pledged revenues to the payment of bond service
charges, and for the establishment and maintenance of any reserves
and special funds, as provided in the bond proceedings, and make
other provisions therein with respect to pledged revenues,
revenues, and net revenues as authorized by this chapter, which
provisions are controlling notwithstanding any other provisions of
law pertaining thereto.
Sec. 5537.09. The Ohio turnpike and infrastructure
commission may provide by resolution for the issuance of revenue
bonds of the state, payable solely from pledged revenues, for the
purpose of refunding any bonds then outstanding, including the
payment of related financing expenses and, if considered advisable
by the commission, for the additional purpose of paying costs of
improvements, extensions, renovations, or enlargements of any
turnpike project or any infrastructure project. The issuance of
refunding bonds, the maturities and other details thereof, the
rights of the holders thereof, and the rights, duties, and
obligations of the commission in respect to such bonds shall be
governed by the provisions of this chapter insofar as they are
applicable and by the applicable bond proceedings.
Sec. 5537.11. (A) The bonds do not constitute a debt, or a
pledge of the faith and credit, of the state or of any political
subdivision of the state. Bond service charges on outstanding
bonds are payable solely from the pledged revenues pledged for
their payment as authorized by this chapter and as provided in the
bond proceedings. All turnpike and infrastructure revenue bonds
shall contain on their face a statement to that effect.
(B) All expenses incurred in carrying out this chapter shall
be payable solely from revenues provided under this chapter and
from state taxes. This chapter does not authorize the Ohio
turnpike and infrastructure commission to incur indebtedness or
liability on behalf of or payable by the state or any political
subdivision of the state.
Sec. 5537.12. (A) In the discretion of the Ohio turnpike and
infrastructure commission any bonds may be secured by a trust
agreement between the commission and a corporate trustee, which
may be any trust company or bank having the powers of a trust
company within or without the state but authorized to exercise
trust powers within this state.
(B) Any trust agreement may pledge or assign the revenues to
be received, but shall not convey or mortgage any turnpike project
or infrastructure project, any part of a turnpike project or
infrastructure project, or any part of the Ohio turnpike system or
the Ohio turnpike and infrastructure system. Any such trust
agreement or other bond proceedings may contain provisions for
protecting and enforcing the rights and remedies of the
bondholders that are reasonable and proper and not in violation of
law, including covenants setting forth the duties of the
commission in relation to the acquisition of property, and the
construction, maintenance, repair, operation, and insurance of the
turnpike project or projects in connection with which the bonds
are authorized, the rates of toll to be charged, and the custody,
safeguarding, and application of all moneys, and provisions for
the employment or retention of the services of consulting
engineers in connection with the construction, maintenance, or
operation of the turnpike project or projects. Any bank or trust
company incorporated under the laws of this state which may act as
depository of the proceeds of bonds or of revenues may furnish
such indemnifying bonds or may pledge such securities as are
required by the commission. Any such trust agreement may set forth
the rights and remedies of the bondholders and of the trustee, may
restrict the individual right of action by bondholders as is
customary in revenue bond trust agreements of public bodies, and
may contain other provisions that the commission considers
reasonable and proper for the security of the bondholders. All
expenses incurred in entering into or carrying out the provisions
of such a trust agreement may be treated as a part of the cost, or
of the cost of the operation, of the turnpike project or projects.
Sec. 5537.13. (A) Subject to section 5537.26 of the Revised
Code, the Ohio turnpike and infrastructure commission may fix,
revise, charge, and collect tolls for each turnpike project, and
contract in the manner provided by this section with any person
desiring the use of any part thereof, including the right-of-way
adjoining the paved portion, for placing thereon telephone,
electric light, or power lines, service facilities, or for any
other purpose, and fix the terms, conditions, rents, and rates of
charge for such use, provided that no toll, charge, or rental may
be made by the commission for placing in, on, along, over, or
under the turnpike project, equipment or public utility facilities
that are necessary to serve service facilities or to interconnect
any public utility facilities.
(B) Contracts for the operation of service facilities shall
be made in writing. Such contracts, except contracts with state
agencies or other governmental agencies, shall be made with the
bidder whose bid is determined by the commission to be the best
bid received, after advertisement for two consecutive weeks in a
newspaper of general circulation in Franklin county, and in other
publications that the commission determines. The notice shall
state the general character of the service facilities operation
proposed, the place where plans and specifications may be
examined, and the time and place of receiving bids. Bids shall
contain the full name of each person interested in them, and shall
be in such form as the commission requires. The commission may
reject any and all bids. All contracts for service facilities
shall be preserved in the principal office of the commission.
(C) Tolls shall be so fixed and adjusted as to provide funds
at least sufficient with other revenues of the Ohio turnpike
system, if any, to pay:
(1) The cost of maintaining, improving, repairing,
constructing, and operating the Ohio turnpike system and its
different parts and sections, and to create and maintain any
reserves for those purposes;
(2) Any unpaid bond service charges on outstanding bonds
payable from pledged revenues as such charges become due and
payable, and to create and maintain any reserves for that purpose.
(D) Tolls are not subject to supervision, approval, or
regulation by any state agency other than the turnpike and
infrastructure commission.
(E) Revenues derived from each turnpike project in connection
with which any bonds are outstanding shall be first applied to pay
the cost of maintenance, improvement, repair, and operation and to
provide any reserves therefor that are provided for in the bond
proceedings authorizing the issuance of those outstanding bonds,
and otherwise as provided by the commission, and the balance. The
bond proceedings also shall provide, subject to the provisions of
any other applicable bond proceedings, for the pledge of all, or
such part as the commission may determine of the pledged revenues
shall be set aside, at such regular intervals as are provided in
the bond proceedings, in a bond service fund, which is hereby
pledged to and charged with and the applicable special fund or
funds to the payment of the bond service charges on any such
outstanding bonds as provided in the applicable, which pledge may
be made to secure the bonds senior or subordinate to or on a
parity with bonds theretofore or thereafter issued, if and to the
extent provided in the bond proceedings. The pledge shall be valid
and binding from the time the pledge is made; the revenues and the
pledged revenues thereafter received by the commission immediately
shall be subject to the lien of the pledge without any physical
delivery thereof or further act, and the lien of the pledge shall
be valid and binding as against all parties having claims of any
kind in tort, contract, or otherwise against the commission,
whether or not those parties have notice thereof. The bond
proceedings by which a pledge is created need not be filed or
recorded except in the records of the commission. The use and
disposition of moneys to the credit of a bond service fund shall
be subject to the applicable bond proceedings. Except as is
otherwise provided in such bond proceedings, such a bond service
fund shall be a fund for all such bonds, without distinction or
priority of one over another.
(F) The proceeds of bonds issued for the payment of the costs
of infrastructure projects, net of the payment of all financing
expenses and deposits into debt service reserves or other special
funds as may be required in the applicable bond proceedings, shall
be deposited to the infrastructure fund or funds and shall be
exclusively used to pay the cost of infrastructure projects
approved by the commission, except that income earned by the
infrastructure fund may be used by the commission towards the
payment of bond service charges.
Sec. 5537.14. All moneys received by the Ohio turnpike and
infrastructure commission under this chapter, whether as proceeds
from the sale of bonds or as revenues, are to be held and applied
solely as provided in this chapter and in any applicable bond
proceedings. Such moneys shall be kept in depositories as selected
by the commission in the manner provided in sections 135.01 to
135.21 of the Revised Code, insofar as such sections are
applicable, and the deposits shall be secured as provided in
sections 135.01 to 135.21 of the Revised Code. The bond
proceedings shall provide that any officer to whom, or any bank or
trust company to which, revenues or pledged revenues are paid
shall act as trustee of such moneys and hold and apply them for
the purposes thereof, subject to applicable provisions of this
chapter and the bond proceedings.
Sec. 5537.15. Any holder of bonds issued and outstanding
under this chapter, or any of the coupons appertaining thereto,
and the trustee under any trust agreement, except to the extent
the rights given by this chapter may be restricted or modified by
the bond proceedings, may by suit, action, mandamus, or other
proceedings, protect and enforce any rights under the laws of the
state or granted under this chapter or the bond proceedings, and
may enforce and compel the performance of all duties required by
this chapter or the bond proceedings, to be performed by the Ohio
turnpike and infrastructure commission or any officer of the
commission, including the fixing, charging, collecting, and
application of tolls.
Sec. 5537.16. (A) The Ohio turnpike and infrastructure
commission may adopt such bylaws and rules as it considers
advisable for the control and regulation of traffic on any
turnpike project, for the protection and preservation of property
under its jurisdiction and control, for the maintenance and
preservation of good order within the property under its control,
and for the purpose of establishing owner or operator liability
for failure to comply with toll collection rules. The rules of the
commission with respect to the speed, use of special engine
brakes, axle loads, vehicle loads, and vehicle dimensions of
vehicles on turnpike projects, including the issuance of a special
permit by the commission to allow the operation on any turnpike
project of a motor vehicle transporting two or fewer steel coils,
shall apply notwithstanding sections 4511.21 to 4511.24, 4513.34,
and Chapter 5577. of the Revised Code. Such bylaws and rules shall
be published in a newspaper of general circulation in Franklin
county, and in such other manner as the commission prescribes.
(B) Such rules shall provide that public police officers
shall be afforded ready access, while in the performance of their
official duty, to all property under the jurisdiction of the
commission and without the payment of tolls.
(C) No person shall violate any such bylaws or rules of the
commission.
(D)(1) All fines collected for the violation of applicable
laws of the state and the bylaws and rules of the commission or
moneys arising from bonds forfeited for such violation shall be
disposed of in accordance with section 5503.04 of the Revised
Code.
(2) All fees or charges assessed by the commission against an
owner or operator of a vehicle as a civil violation for failure to
comply with toll collection or toll evasion rules shall be
revenues of the commission.
Sec. 5537.17. (A) Each turnpike project open to traffic
shall be maintained and kept in good condition and repair by the
Ohio turnpike and infrastructure commission. The Ohio turnpike
system shall be policed and operated by a force of police, toll
collectors, and other employees and agents that the commission
employs or contracts for.
(B) All public or private property damaged or destroyed in
carrying out the powers granted by this chapter shall be restored
or repaired and placed in its original condition, as nearly as
practicable, or adequate compensation or consideration made
therefor out of moneys provided under this chapter.
(C) All governmental agencies may lease, lend, grant, or
convey to the commission at its request, upon terms that the
proper authorities of the governmental agencies consider
reasonable and fair and without the necessity for an
advertisement, order of court, or other action or formality, other
than the regular and formal action of the authorities concerned,
any property that is necessary or convenient to the effectuation
of the purposes of the commission, including public roads and
other property already devoted to public use.
(D) Each bridge constituting part of a turnpike project shall
be inspected at least once each year by a professional engineer
employed or retained by the commission.
(E) On or before the first day of July in each year, the
commission shall make an annual report of its activities for the
preceding calendar year to the governor and the general assembly.
Each such report shall set forth a complete operating and
financial statement covering the commission's operations and
funding of any turnpike projects and infrastructure projects
during the year. The commission shall cause an audit of its books
and accounts to be made at least once each year by certified
public accountants, and the cost thereof may be treated as a part
of the cost of operations of the commission. The auditor of state,
at least once a year and without previous notice to the
commission, shall audit the accounts and transactions of the
commission.
(F) The commission shall submit a copy of its annual audit by
the auditor of state and its proposed annual budget for each
calendar or fiscal year to the governor, the presiding officers of
each house of the general assembly, the director of budget and
management, and the legislative service commission no later than
the first day of that calendar or fiscal year.
(G) Upon request of the chairperson of the appropriate
standing committee or subcommittee of the senate and house of
representatives that is primarily responsible for considering
transportation budget matters, the commission shall appear at
least one time before each committee or subcommittee during the
period when that committee or subcommittee is considering the
biennial appropriations for the department of transportation and
shall provide testimony outlining its budgetary results for the
last two calendar years, including a comparison of budget and
actual revenue and expenditure amounts. The commission also shall
address its current budget and long-term capital plan.
(H) Not more than sixty nor less than thirty days before
adopting its annual budget, the commission shall submit a copy of
its proposed annual budget to the governor, the presiding officers
of each house of the general assembly, the director of budget and
management, and the legislative service commission. The office of
budget and management shall review the proposed budget and may
provide recommendations to the commission for its consideration.
Sec. 5537.18. (A) The Ohio turnpike and infrastructure
commission shall adopt rules establishing the procedures and
criteria under which the commission may approve an application
received from the director of transportation for infrastructure
project funding under division (B) of this section. The rules
shall require an infrastructure project to have an anticipated
economic or transportation-related impact on the Ohio turnpike and
infrastructure system.
(B) The director of transportation may submit an application
to the commission for infrastructure project funding. An
application to the commission for infrastructure project funding,
as submitted by the director, shall include only infrastructure
projects that previously have been reviewed and recommended by the
transportation review advisory council pursuant to the selection
process followed by the council under Chapter 5512. of the Revised
Code.
(C) The commission shall evaluate each application for
infrastructure project funding submitted under division (B) of
this section in accordance with the procedures and criteria
established in rules adopted under division (A) of this section. A
determination or approval made under this section is conclusive
and incontestable.
Sec. 5537.19. The Ohio turnpike and infrastructure
commission shall expend such moneys as the commission considers
necessary for studies of any turnpike project or infrastructure
project, whether proposed, under construction, or in operation,
and may employ consulting engineers, traffic engineers, and any
other individuals or firms that the commission considers necessary
to properly implement the studies. The cost of the studies may be
paid from revenues, eligible state and federal grants, state taxes
available to the commission and permitted by law to be spent for
such purposes, or the proceeds of bonds.
Sec. 5537.20. The exercise of the powers granted by this
chapter is in all respects for the benefit of the people of the
state, for the increase of their commerce and prosperity, and for
the improvement of their health and living conditions, and as the
construction, operation, and maintenance of the Ohio turnpike
system by the Ohio turnpike and infrastructure commission
constitute the performance of essential governmental functions,
the commission, except as provided in division (D) of section
5537.05 of the Revised Code, shall not be required to pay any
state or local taxes or assessments upon any turnpike project or
infrastructure project funded by it, or upon revenues or any
property acquired or used by the commission under this chapter, or
upon the income therefrom. The bonds issued under this chapter,
their transfer, and the income therefrom, including any profit
made on the sale thereof, shall at all times be free from taxation
within the state.
Sec. 5537.21. (A) When bond service charges on all
outstanding bonds issued in connection with any turnpike project
have been paid or provision for that payment has been made, as
provided in the applicable bond proceedings, or in the case of a
turnpike project in connection with which no bonds have been
issued, the project shall continue to be or be operated, and
improved and maintained, by the Ohio turnpike and infrastructure
commission as a part of the Ohio turnpike system and as a toll
road, and all revenues received by the commission relating to that
project shall be applied as provided in division (B) of this
section.
(B) Subject to the bond proceedings for bonds relating to any
turnpike project or infrastructure project, tolls relating to a
turnpike project as referred to in division (A) of this section
shall be so fixed and adjusted such that the aggregate of
available revenues relating to that turnpike project
and available
for the purpose are in amounts to provide moneys at least
sufficient, and those revenues shall be used, to pay the costs
described in division (C)(1) of section 5537.13 of the Revised
Code.
Sec. 5537.22. All final actions of the Ohio turnpike and
infrastructure commission shall be journalized and such journal
shall be open to the inspection of the public at all reasonable
times.
Sec. 5537.24. (A) There is hereby created a turnpike
legislative review committee consisting of six members as follows:
(1) Three members of the senate, no more than two of whom
shall be members of the same political party, one of whom shall be
the chairperson of the committee dealing primarily with highway
matters, one of whom shall be appointed by the president of the
senate, and one of whom shall be appointed by the minority leader
of the senate.
Both the senate member who is appointed by the president of
the senate and the senate member appointed by the minority leader
of the senate shall represent either districts in which is located
or through which passes a portion of a turnpike project that is
part of the Ohio turnpike system or districts located in the
vicinity of a turnpike project that is part of the Ohio turnpike
system.
The president of the senate shall make the president of the
senate's appointment to the committee first, followed by the
minority leader of the senate, and they shall make their
appointments in such a manner that their two appointees represent
districts that are located in different areas of the state. If the
chairperson of the senate committee dealing primarily with highway
matters represents a district in which is located or through which
passes a portion of a turnpike project that is part of the Ohio
turnpike system or a district located in the vicinity of a
turnpike project that is part of the Ohio turnpike system, the
president of the senate and the minority leader of the senate
shall make their appointments in such a manner that their two
appointees and the chairperson of the senate committee dealing
primarily with highway matters all represent districts that are
located in different areas of the state.
(2) Three members of the house of representatives, no more
than two of whom shall be members of the same political party, one
of whom shall be the chairperson of the house of representatives
committee dealing primarily with highway matters, one of whom
shall be appointed by the speaker of the house of representatives,
and one of whom shall be appointed by the minority leader of the
house of representatives.
Both the house of representatives member who is appointed by
the speaker of the house of representatives and the house of
representatives member appointed by the minority leader of the
house of representatives shall represent either districts in which
is located or through which passes a portion of a turnpike project
that is part of the Ohio turnpike system or districts located in
the vicinity of a turnpike project that is part of the Ohio
turnpike system.
The speaker of the house of representatives shall make the
speaker of the house of representative's appointment to the
committee first, followed by the minority leader of the house of
representatives, and they shall make their appointments in such a
manner that their two appointees represent districts that are
located in different areas of the state. If the chairperson of the
house of representatives committee dealing primarily with highway
matters represents a district in which is located or through which
passes a portion of a turnpike project that is part of the Ohio
turnpike system or a district located in the vicinity of a
turnpike project that is part of the Ohio turnpike system, the
speaker of the house of representatives and the minority leader of
the house of representatives shall make their appointments in such
a manner that their two appointees and the chairperson of the
house of representatives committee dealing primarily with highway
matters all represent districts that are located in different
areas of the state.
The chairperson of the house of representatives committee
shall serve as the chairperson of the turnpike legislative review
committee for the year 1996. Thereafter, the chair annually shall
alternate between, first, the chairperson of the senate committee
and then the chairperson of the house of representatives
committee.
(B) Each member of the turnpike legislative review committee
who is a member of the general assembly shall serve a term of the
remainder of the general assembly during which the member is
appointed or is serving as chairperson of the specified senate or
house committee. In the event of the death or resignation of a
committee member who is a member of the general assembly, or in
the event that a member ceases to be a senator or representative,
or in the event that the chairperson of the senate committee
dealing primarily with highway matters or the chairperson of the
house of representatives committee dealing primarily with highway
matters ceases to hold that position, the vacancy shall be filled
through an appointment by the president of the senate or the
speaker of the house of representatives or minority leader of the
senate or house of representatives, as applicable. Any member
appointed to fill a vacancy occurring prior to the end of the term
for which the member's predecessor was appointed shall hold office
for the remainder of the term or for a shorter period of time as
determined by the president or the speaker. A member of the
committee is eligible for reappointment.
(C) The turnpike legislative review committee shall meet at
least quarterly and may meet at the call of its chairperson, or
upon the written request to the chairperson of not fewer than four
members of the committee. Meetings shall be held at sites that are
determined solely by the chairperson of the committee. At each
meeting, the Ohio turnpike and infrastructure commission shall
make a report to the committee on commission matters, including
but not limited to financial and budgetary matters and proposed
and on-going construction, maintenance, repair, and operational
projects of the commission.
The committee, by the affirmative vote of at least four of
its members, may submit written recommendations to the commission,
either at meetings held pursuant to this section or at any other
time, describing new turnpike projects or new interchanges located
on existing projects that the committee believes the commission
should consider constructing.
(D) At least annually the commission shall make a report to
the committee of those infrastructure projects approved and paid
for by the commission.
(E) The members of the turnpike legislative review committee
who are members of the general assembly shall serve without
compensation, but shall be reimbursed by the commission for their
actual and necessary expenses incurred in the discharge of their
official duties as committee members. Serving as a member of the
turnpike legislative review committee does not constitute grounds
for resignation from the senate or house of representatives under
section 101.26 of the Revised Code.
Sec. 5537.25. (A) Notwithstanding any provision of law to
the contrary, the Ohio turnpike and infrastructure commission
shall make no expenditure to engage the services of any person to
influence either of the following:
(1) Administrative actions or decisions of the governor, the
director of any department listed in section 121.02 of the Revised
Code, any member of the staff of any public officer or employee
listed in this section, the president of the United States, or any
federal officer or employee;
(2) Legislation pending in this state or any other state, a
subdivision of this state or any other state, or the federal
government, including the executive approval or veto of any such
pending legislation.
(B) This section shall not be interpreted to prohibit the
commission from designating officers or members of the commission,
or full-time, permanent employees of the commission, to act as
administrative or legislative agents for the commission.
Sec. 5537.26. (A) Except as provided in division (D) of this
section, no increase by the Ohio turnpike and infrastructure
commission in the toll rate structure that is applicable to
vehicles operating on a turnpike project shall become effective
unless the commission complies with the notice and hearing
requirements prescribed in division (B) of this section, and the
commission shall not take any action that expands, has the effect
of expanding, or will to any degree at any time in the future have
the effect of expanding the sphere of responsibility of the
commission beyond the Ohio turnpike, unless the commission
complies with the notice and hearing requirements prescribed in
division (B) of this section.
(B) Not less than ninety days prior to the date on which the
commission votes to increase any part of the toll rate structure
that is applicable to vehicles operating on a turnpike project,
and not less than ninety days prior to the date on which the
commission votes to take an action that expands, has the effect of
expanding, or will to any degree at any time in the future have
the effect of expanding the sphere of responsibility of the
commission beyond the Ohio turnpike, the commission shall do both
of the following:
(1) Send notice to the governor and the presiding officers
and minority leaders of the senate and house of representatives
that details the proposed increase to the toll rate structure or
the expansion of the sphere of responsibility of the commission
beyond the Ohio turnpike, including a description of and a
justification for the increase or expansion;
(2) Commence holding public hearings on the proposed increase
in the toll rate structure or the proposed action. If the
commission is proposing an increase in the toll rate structure
that is applicable to vehicles operating on a turnpike project, it
shall hold not less than three public hearings in three
geographically diverse locations in this state that are in the
immediate vicinity of the affected project. If the commission is
proposing to take an action that expands, has the effect of
expanding, or will to any degree at any time in the future have
the effect of expanding the sphere of responsibility of the
commission beyond the Ohio turnpike, it shall hold not less than
three public hearings in three locations in the immediate vicinity
where the expanded responsibilities would arise.
The commission shall hold the third or, if it holds more than
three hearings, the last hearing of any set of hearings required
to be held under this section not less than thirty days prior to
the date on which it votes to increase part of the toll rate
structure that is applicable to vehicles operating on a turnpike
project or to take an action that expands, has the effect of
expanding, or will to any degree at any time in the future have
the effect of expanding the sphere of responsibility of the
commission beyond the Ohio turnpike.
The commission shall inform the public of all the hearings
required to be held under this section by causing a notice to be
published in a newspaper of general circulation in the county in
which each hearing is to be held, not less than once per week for
two weeks prior to the date of the hearing.
(C) If the commission does not comply with the notice and
hearing requirements contained in division (B) of this section and
votes for an increase in the toll rate structure that is
applicable to vehicles operating on a turnpike project, the
increase in the toll rate structure shall not take effect, any
attempt by the commission to implement the increase in the toll
rate structure is void, and, if necessary, the attorney general
shall file an action in the court of common pleas of the county in
which the principal office of the commission is located to enjoin
the commission from implementing the increase. The commission
shall not implement any increase until it complies with division
(B) of this section.
If the commission does not comply with the notice and hearing
requirements contained in division (B) of this section and votes
to take an action that expands, has the effect of expanding, or
will to any degree at any time in the future have the effect of
expanding the sphere of responsibility of the commission beyond
the Ohio turnpike, the commission shall not take the proposed
action and, if necessary, the attorney general shall file an
action in the court of common pleas of the county in which the
principal office of the commission is located to enjoin the
commission from taking the proposed action. The commission shall
not take the proposed action until it complies with the notice and
hearing requirements prescribed in division (B) of this section.
(D) Divisions (A) to (C) of this section do not apply to any
decrease made to the toll rate structure by the commission. The
commission may implement a temporary decrease in the toll rate
structure only if it does not exceed eighteen months in duration.
Prior to instituting any decrease to the toll rate structure, the
commission shall do both of the following:
(1) Not less than five days prior to any public meeting under
division (D)(2) of this section, send notice to the governor and
the presiding officers and minority leaders of the senate and
house of representatives that details the proposed decrease to the
toll rate structure;
(2) Hold a public meeting to explain to members of the
traveling public the reasons for the upcoming decrease, to inform
them of any benefits and any negative consequences, and to give
them the opportunity to express their opinions as to the relative
merits or drawbacks of each toll decrease. The commission shall
inform the public of the meeting by causing a notice to be
published in newspapers of general circulation in Cuyahoga, Lucas,
Mahoning, Trumbull, Williams, and Summit counties not less than
five days prior to the meeting. The commission shall not be
required to hold any public hearing or meeting upon the expiration
of any temporary decrease in the toll rate structure, so long as
it implements the same toll rate structure that was in effect
immediately prior to the temporary decrease.
(E) As used in this section, "Ohio turnpike" means the toll
freeway that is under the jurisdiction of the commission and runs
in an easterly and westerly direction across the entire northern
portion of this state between its borders with the state of
Pennsylvania in the east and the state of Indiana in the west, and
carries the interstate highway designations of interstate
seventy-six, interstate eighty, and interstate eighty-ninety.
Sec. 5537.27. The Ohio turnpike and infrastructure
commission, the director of transportation or the director's
designee, and another person designated by the governor shall
establish a procedure whereby a political subdivision or other
government agency or agencies may submit a written application to
the commission, requesting the commission to construct and operate
a turnpike project within the boundaries of the subdivision,
agency, or agencies making the request. The procedure shall
include a requirement that the commission send a written reply to
the subdivision, agency, or agencies, explaining the disposition
of the request. The procedure established pursuant to this section
shall not become effective unless it is approved by the commission
and by the director or the director's designee and the designee of
the governor, and shall require submission of the proposed
turnpike project to the turnpike legislative review committee if
the project must be approved by the governor.
Sec. 5537.28. (A) Notwithstanding any other provision of
law, on and after the effective date of this section, the Ohio
turnpike commission shall not expend any toll revenues that are
generated by an existing turnpike project to fund in any manner or
to any degree the construction, operation, maintenance, or repair
of another turnpike project the location of which must be reviewed
by the turnpike legislative review committee and approved by the
governor.
In paying the cost of such a any turnpike project, the Ohio
turnpike and infrastructure commission may issue bonds and bond
anticipation notes as permitted by this chapter, and may accept
moneys from any source to pay the cost of any portion of the
turnpike project, including, but not limited to, the federal
government, any department or agency of this state, and any
political subdivision or other government agency. Each such
project shall be constructed, operated, maintained, and repaired
entirely with funds
generated by that project or otherwise
specifically acquired for that project or from sources permitted
by this chapter excess funds available from any other turnpike
project.
(B) The commission shall not expend any toll revenues
generated by the Ohio turnpike to pay any amount of the principal
amount of, or interest due on, any bonds or bond anticipation
notes issued by the commission to pay any portion of the cost of
another turnpike project the location of which must be reviewed by
the turnpike legislative review committee and approved by the
governor. The commission shall not expend any toll revenues
generated by any turnpike project to pay any amount of the
principal amount of, or interest due on, any bonds or bond
anticipation notes issued by the commission to pay any portion of
the cost of a new turnpike project the location of which must be
reviewed by the turnpike legislative review committee and approved
by the governor or the cost of the operation, repair, improvement,
maintenance, or reconstruction of any turnpike project other than
the project that generated those toll revenues.
(C) As used in this section:
(1) "Ohio turnpike" has the same meaning as in division (E)
of section 5537.26 of the Revised Code;
(2) "Another "any turnpike project" does not include
infrastructure
improvements on the Ohio turnpike or on connecting
roadways within one mile of an Ohio turnpike interchange projects.
The costs of infrastructure projects approved under section
5537.18 of the Revised Code shall be funded exclusively out of the
infrastructure fund or funds.
Sec. 5537.30. (A) Not later than December 31, 2009, the Ohio
turnpike and infrastructure commission shall establish a program
for the placement of business logos for identification purposes on
directional signs within the turnpike right-of-way.
(B)(1) The commission shall establish, and may revise at any
time, a fee for participation in the business logo sign program.
All direct and indirect costs of the business logo sign program
established pursuant to this section shall be fully paid by the
businesses applying for participation in the program. The direct
and indirect costs of the program shall include, but not be
limited to, the cost of capital, directional signs, blanks, posts,
logos, installation, repair, engineering, design, insurance,
removal, replacement, and administration.
(2) Money generated from participating businesses in excess
of the direct and indirect costs and any reasonable profit earned
by a person awarded a contract under division (C) of this section
to operate, maintain, or market the business logo sign program
shall be remitted to the commission.
(3) If the commission operates such a program and does not
contract with a private person to operate it, all money collected
from participating businesses shall be retained by the commission.
(C) The commission, in accordance with rules adopted pursuant
to section 111.15 of the Revised Code, may contract with any
private person to operate, maintain, or market the business logo
sign program. The contract may allow for a reasonable profit to be
earned by the successful applicant. In awarding the contract, the
commission shall consider the skill, expertise, prior experience,
and other qualifications of each applicant.
(D) The program shall permit the business logo signs of a
seller of motor vehicle fuel to include on the seller's signs a
marking or symbol indicating that the seller sells one or more
types of alternative fuel so long as the seller in fact sells that
fuel. As used in this division, "alternative fuel" has the same
meaning as in section 125.831 of the Revised Code.
Sec. 5728.01. As used in sections 5728.02 to 5728.14 of the
Revised Code:
(A) "Motor vehicle" means everything on wheels that is
self-propelled, other than by muscular power or power collected
from electric trolley wires and other than vehicles or machinery
not designed for or employed in general highway transportation,
used to transport or propel persons or property over a public
highway.
(B) "Commercial car" means any motor vehicle used for
transporting persons or property, wholly on its own structure on a
public highway.
(C) "Commercial tractor" means any motor vehicle designed and
used to propel or draw a trailer or semi-trailer or both on a
public highway without having any provision for carrying loads
independently of such trailer or semi-trailer.
(D) "Trailer" means everything on wheels that is not
self-propelled, except vehicles or machinery not designed for or
employed in general highway transportation, used for carrying
property wholly on its own structure and for being drawn by a
motor vehicle on a public highway, including any such vehicle when
formed by or operated as a combination of a semi-trailer and a
vehicle of the dolly type such as that commonly known as a trailer
dolly. "Trailer" does not include manufactured homes as defined in
division (C)(4) of section 3781.06 of the Revised Code or mobile
homes as defined in division (O) of section 4501.01 of the Revised
Code.
(E) "Semi-trailer" means everything on wheels that is not
self-propelled, except vehicles or machinery not designed for or
employed in general highway transportation, designed and used for
carrying property on a public highway when being propelled or
drawn by a commercial tractor when part of its own weight or the
weight of its load, or both, rest upon and is carried by a
commercial tractor.
(F) "Commercial tandem" means any commercial car and trailer
or any commercial tractor, semi-trailer, and trailer when fastened
together and used as one unit.
(G) "Commercial tractor combination" means any commercial
tractor and semi-trailer when fastened together and used as one
unit.
(H) "Axle" means two or more load carrying wheels mounted in
a single transverse vertical plane.
(I) "Public highway" means any highway, road, or street
dedicated to public use, including a highway under the control and
jurisdiction of the Ohio turnpike and infrastructure commission
created by the provisions of section 5537.02 of the Revised Code
and land and lots over which the public, either as user or owner,
generally has a right to pass even though such land or lots are
closed temporarily by public authorities for the purpose of
construction, reconstruction, maintenance, or repair.
(J) "Jurisdiction" means a state of the United States, the
District of Columbia, or a province or territory of Canada.
Sec. 5735.05. (A) To provide revenue for maintaining the
state highway system; to widen existing surfaces on such highways;
to resurface such highways; to pay that portion of the
construction cost of a highway project which a county, township,
or municipal corporation normally would be required to pay, but
which the director of transportation, pursuant to division (B) of
section 5531.08 of the Revised Code, determines instead will be
paid from moneys in the highway operating fund; to enable the
counties of the state properly to plan, maintain, and repair their
roads and to pay principal, interest, and charges on bonds and
other obligations issued pursuant to Chapter 133. of the Revised
Code or incurred pursuant to section 5531.09 of the Revised Code
for highway improvements; to enable the municipal corporations to
plan, construct, reconstruct, repave, widen, maintain, repair,
clear, and clean public highways, roads, and streets, and to pay
the principal, interest, and charges on bonds and other
obligations issued pursuant to Chapter 133. of the Revised Code or
incurred pursuant to section 5531.09 of the Revised Code for
highway improvements; to enable the Ohio turnpike and
infrastructure commission to construct, reconstruct, maintain, and
repair turnpike projects; to maintain and repair bridges and
viaducts; to purchase, erect, and maintain street and traffic
signs and markers; to purchase, erect, and maintain traffic lights
and signals; to pay the costs apportioned to the public under
sections 4907.47 and 4907.471 of the Revised Code and to
supplement revenue already available for such purposes; to pay the
costs incurred by the public utilities commission in administering
sections 4907.47 to 4907.476 of the Revised Code; to distribute
equitably among those persons using the privilege of driving motor
vehicles upon such highways and streets the cost of maintaining
and repairing them; to pay the interest, principal, and charges on
highway capital improvements bonds and other obligations issued
pursuant to Section 2m of Article VIII, Ohio Constitution, and
section 151.06 of the Revised Code; to pay the interest,
principal, and charges on highway obligations issued pursuant to
Section 2i of Article VIII, Ohio Constitution, and sections
5528.30 and 5528.31 of the Revised Code; to pay the interest,
principal, and charges on major new state infrastructure bonds and
other obligations of the state issued pursuant to Section 13 of
Article VIII, Ohio Constitution, and section 5531.10 of the
Revised Code; to provide revenue for the purposes of sections
1547.71 to 1547.78 of the Revised Code; and to pay the expenses of
the department of taxation incident to the administration of the
motor fuel laws, a motor fuel excise tax is hereby imposed on all
motor fuel dealers upon receipt of motor fuel within this state at
the rate of two cents plus the cents per gallon rate on each
gallon so received, to be computed in the manner set forth in
section 5735.06 of the Revised Code; provided that no tax is
hereby imposed upon the following transactions:
(1) The sale of dyed diesel fuel by a licensed motor fuel
dealer from a location other than a retail service station
provided the licensed motor fuel dealer places on the face of the
delivery document or invoice, or both if both are used, a
conspicuous notice stating that the fuel is dyed and is not for
taxable use, and that taxable use of that fuel is subject to a
penalty. The tax commissioner, by rule, may provide that any
notice conforming to rules or regulations issued by the United
States department of the treasury or the Internal Revenue Service
is sufficient notice for the purposes of division (A)(1) of this
section.
(2) The sale of K-1 kerosene to a retail service station,
except when placed directly in the fuel supply tank of a motor
vehicle. Such sale shall be rebuttably presumed to not be
distributed or sold for use or used to generate power for the
operation of motor vehicles upon the public highways or upon the
waters within the boundaries of this state.
(3) The sale of motor fuel by a licensed motor fuel dealer to
another licensed motor fuel dealer;
(4) The exportation of motor fuel by a licensed motor fuel
dealer from this state to any other state or foreign country;
(5) The sale of motor fuel to the United States government or
any of its agencies, except such tax as is permitted by it, where
such sale is evidenced by an exemption certificate, in a form
approved by the tax commissioner, executed by the United States
government or an agency thereof certifying that the motor fuel
therein identified has been purchased for the exclusive use of the
United States government or its agency;
(6) The sale of motor fuel that is in the process of
transportation in foreign or interstate commerce, except insofar
as it may be taxable under the Constitution and statutes of the
United States, and except as may be agreed upon in writing by the
dealer and the commissioner;
(7) The sale of motor fuel when sold exclusively for use in
the operation of aircraft, where such sale is evidenced by an
exemption certificate prescribed by the commissioner and executed
by the purchaser certifying that the motor fuel purchased has been
purchased for exclusive use in the operation of aircraft;
(8) The sale for exportation of motor fuel by a licensed
motor fuel dealer to a licensed exporter type A;
(9) The sale for exportation of motor fuel by a licensed
motor fuel dealer to a licensed exporter type B, provided that the
destination state motor fuel tax has been paid or will be accrued
and paid by the licensed motor fuel dealer.
(10) The sale to a consumer of diesel fuel, by a motor fuel
dealer for delivery from a bulk lot vehicle, for consumption in
operating a vessel when the use of such fuel in a vessel would
otherwise qualify for a refund under section 5735.14 of the
Revised Code.
Division (A)(1) of this section does not apply to the sale or
distribution of dyed diesel fuel used to operate a motor vehicle
on the public highways or upon water within the boundaries of this
state by persons permitted under regulations of the United States
department of the treasury or of the Internal Revenue Service to
so use dyed diesel fuel.
(B) The two cent motor fuel tax levied by this section is
also for the purpose of paying the expenses of administering and
enforcing the state law relating to the registration and operation
of motor vehicles.
(C) After the tax provided for by this section on the receipt
of any motor fuel has been paid by the motor fuel dealer, the
motor fuel may thereafter be used, sold, or resold by any person
having lawful title to it, without incurring liability for such
tax.
If a licensed motor fuel dealer sells motor fuel received by
the licensed motor fuel dealer to another licensed motor fuel
dealer, the seller may deduct on the report required by section
5735.06 of the Revised Code the number of gallons so sold for the
month within which the motor fuel was sold or delivered. In this
event the number of gallons is deemed to have been received by the
purchaser, who shall report and pay the tax imposed thereon.
Sec. 5735.23. (A) Out of receipts from the tax levied by
section 5735.05 of the Revised Code, the treasurer of state shall
place to the credit of the tax refund fund established by section
5703.052 of the Revised Code amounts equal to the refunds
certified by the tax commissioner pursuant to sections 5735.13,
5735.14, 5735.141, 5735.142, and 5735.16 of the Revised Code. The
treasurer of state shall then transfer the amount required by
section 5735.051 of the Revised Code to the waterways safety fund,
the amount required by section 4907.472 of the Revised Code to the
grade crossing protection fund, and the amount required by section
5735.053 of the Revised Code to the motor fuel tax administration
fund.
(B) Except as provided in division (D) of this section, each
month the balance of the receipts from the tax levied by section
5735.05 of the Revised Code shall be credited, after receipt by
the treasurer of state of certification from the commissioners of
the sinking fund, as required by section 5528.35 of the Revised
Code, that there are sufficient moneys to the credit of the
highway obligations bond retirement fund to meet in full all
payments of interest, principal, and charges for the retirement of
highway obligations issued pursuant to Section 2i of Article VIII,
Ohio Constitution, and sections 5528.30 and 5528.31 of the Revised
Code due and payable during the current calendar year, as follows:
(1) To the state and local government highway distribution
fund, which is hereby created in the state treasury, an amount
that is the same percentage of the balance to be credited as that
portion of the tax per gallon determined under division (B)(2)(a)
of section 5735.06 of the Revised Code is of the total tax per
gallon determined under divisions (B)(2)(a) and (b) of that
section.
(2) After making the distribution to the state and local
government highway distribution fund, the remainder shall be
credited as follows:
(a) Thirty per cent to the gasoline excise tax fund for
distribution pursuant to division (A)(1) of section 5735.27 of the
Revised Code;
(b) Twenty-five per cent to the gasoline excise tax fund for
distribution pursuant to division (A)(3) of section 5735.27 of the
Revised Code;
(c) Except as provided in division (D) of this section,
forty-five per cent to the highway operating fund for distribution
pursuant to division (B)(1) of section 5735.27 of the Revised
Code.
(C) From the balance in the state and local government
highway distribution fund on the last day of each month there
shall be paid the following amounts:
(1) To the local transportation improvement program fund
created by section 164.14 of the Revised Code, an amount equal to
a fraction of the balance in the state and local government
highway distribution fund, the numerator of which fraction is one
and the denominator of which fraction is that portion of the tax
per gallon determined under division (B)(2)(a) of section 5735.06
of the Revised Code;
(2) An amount equal to five cents multiplied by the number of
gallons of motor fuel sold at stations operated by the Ohio
turnpike and infrastructure commission, such gallonage to be
certified by the commission to the treasurer of state not later
than the last day of the month following. The funds paid to the
commission pursuant to this section shall be expended for the
construction, reconstruction, maintenance, and repair of turnpike
projects, except that the funds may not be expended for the
construction of new interchanges. The funds also may be expended
for the construction, reconstruction, maintenance, and repair of
those portions of connecting public roads that serve existing
interchanges and are determined by the commission and the director
of transportation to be necessary for the safe merging of traffic
between the turnpike and those public roads.
The remainder of the balance shall be distributed as follows
on the fifteenth day of the following month:
(a) Ten and seven-tenths per cent shall be paid to municipal
corporations for distribution pursuant to division (A)(1) of
section 5735.27 of the Revised Code and may be used for any
purpose for which payments received under that division may be
used. Through July 15, 2005, the sum of two hundred forty-eight
thousand six hundred twenty-five dollars shall be monthly
subtracted from the amount so computed and credited to the highway
operating fund. Beginning August 15, 2005, the sum of seven
hundred forty-five thousand eight hundred seventy-five dollars
shall be monthly subtracted from the amount so computed and
credited to the highway operating fund.
(b) Five per cent shall be paid to townships for distribution
pursuant to division (A)(5) of section 5735.27 of the Revised Code
and may be used for any purpose for which payments received under
that division may be used. Through July 15, 2005, the sum of
eighty-seven thousand seven hundred fifty dollars shall be monthly
subtracted from the amount so computed and credited to the highway
operating fund. Beginning August 15, 2005, the sum of two hundred
sixty-three thousand two hundred fifty dollars shall be monthly
subtracted from the amount so computed and credited to the highway
operating fund.
(c) Nine and three-tenths per cent shall be paid to counties
for distribution pursuant to division (A)(3) of section 5735.27 of
the Revised Code and may be used for any purpose for which
payments received under that division may be used. Through July
15, 2005, the sum of two hundred forty-eight thousand six hundred
twenty-five dollars shall be monthly subtracted from the amount so
computed and credited to the highway operating fund. Beginning
August 15, 2005, the sum of seven hundred forty-five thousand
eight hundred seventy-five dollars shall be monthly subtracted
from the amount so computed and credited to the highway operating
fund.
(d) Except as provided in division (D) of this section, the
balance shall be transferred to the highway operating fund and
used for the purposes set forth in division (B)(1) of section
5735.27 of the Revised Code.
(D) Monthly from September to February of each fiscal year,
an amount equal to one-sixth of the amount certified in July of
that year by the treasurer of state pursuant to division (Q) of
section 151.01 of the Revised Code shall, from amounts required to
be credited or transferred to the highway operating fund pursuant
to division (B)(2)(c) or (C)(2)(d) of this section, be credited or
transferred to the highway capital improvement bond service fund
created in section 151.06 of the Revised Code. If, in any of those
months, the amount available to be credited or transferred to the
bond service fund is less than one-sixth of the amount so
certified, the shortfall shall be added to the amount due the next
succeeding month. Any amount still due at the end of the six-month
period shall be credited or transferred as the money becomes
available, until such time as the office of budget and management
receives certification from the treasurer of state or the
treasurer of state's designee that sufficient money has been
credited or transferred to the bond service fund to meet in full
all payments of debt service and financing costs due during the
fiscal year from that fund.
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;
(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; and 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;
(c) Sales of equipment such as telephones, computers,
facsimile machines, and similar tangible personal property
primarily used to accept orders for direct marketing retail sales.
(d) 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. 5747.01. Except as otherwise expressly provided or
clearly appearing from the context, any term used in this chapter
that is not otherwise defined in this section has the same meaning
as when used in a comparable context in the laws of the United
States relating to federal income taxes or if not used in a
comparable context in those laws, has the same meaning as in
section 5733.40 of the Revised Code. Any reference in this chapter
to the Internal Revenue Code includes other laws of the United
States relating to federal income taxes.
(A) "Adjusted gross income" or "Ohio adjusted gross income"
means federal adjusted gross income, as defined and used in the
Internal Revenue Code, adjusted as provided in this section:
(1) Add interest or dividends on obligations or securities of
any state or of any political subdivision or authority of any
state, other than this state and its subdivisions and authorities.
(2) Add interest or dividends on obligations of any
authority, commission, instrumentality, territory, or possession
of the United States to the extent that the interest or dividends
are exempt from federal income taxes but not from state income
taxes.
(3) Deduct interest or dividends on obligations of the United
States and its territories and possessions or of any authority,
commission, or instrumentality of the United States to the extent
that the interest or dividends are included in federal adjusted
gross income but exempt from state income taxes under the laws of
the United States.
(4) Deduct disability and survivor's benefits to the extent
included in federal adjusted gross income.
(5) Deduct benefits under Title II of the Social Security Act
and tier 1 railroad retirement benefits to the extent included in
federal adjusted gross income under section 86 of the Internal
Revenue Code.
(6) In the case of a taxpayer who is a beneficiary of a trust
that makes an accumulation distribution as defined in section 665
of the Internal Revenue Code, add, for the beneficiary's taxable
years beginning before 2002, the portion, if any, of such
distribution that does not exceed the undistributed net income of
the trust for the three taxable years preceding the taxable year
in which the distribution is made to the extent that the portion
was not included in the trust's taxable income for any of the
trust's taxable years beginning in 2002 or thereafter.
"Undistributed net income of a trust" means the taxable income of
the trust increased by (a)(i) the additions to adjusted gross
income required under division (A) of this section and (ii) the
personal exemptions allowed to the trust pursuant to section
642(b) of the Internal Revenue Code, and decreased by (b)(i) the
deductions to adjusted gross income required under division (A) of
this section, (ii) the amount of federal income taxes attributable
to such income, and (iii) the amount of taxable income that has
been included in the adjusted gross income of a beneficiary by
reason of a prior accumulation distribution. Any undistributed net
income included in the adjusted gross income of a beneficiary
shall reduce the undistributed net income of the trust commencing
with the earliest years of the accumulation period.
(7) Deduct the amount of wages and salaries, if any, not
otherwise allowable as a deduction but that would have been
allowable as a deduction in computing federal adjusted gross
income for the taxable year, had the targeted jobs credit allowed
and determined under sections 38, 51, and 52 of the Internal
Revenue Code not been in effect.
(8) Deduct any interest or interest equivalent on public
obligations and purchase obligations to the extent that the
interest or interest equivalent is included in federal adjusted
gross income.
(9) Add any loss or deduct any gain resulting from the sale,
exchange, or other disposition of public obligations to the extent
that the loss has been deducted or the gain has been included in
computing federal adjusted gross income.
(10) Deduct or add amounts, as provided under section 5747.70
of the Revised Code, related to contributions to variable college
savings program accounts made or tuition units purchased pursuant
to Chapter 3334. of the Revised Code.
(11)(a) Deduct, to the extent not otherwise allowable as a
deduction or exclusion in computing federal or Ohio adjusted gross
income for the taxable year, the amount the taxpayer paid during
the taxable year for medical care insurance and qualified
long-term care insurance for the taxpayer, the taxpayer's spouse,
and dependents. No deduction for medical care insurance under
division (A)(11) of this section shall be allowed either to any
taxpayer who is eligible to participate in any subsidized health
plan maintained by any employer of the taxpayer or of the
taxpayer's spouse, or to any taxpayer who is entitled to, or on
application would be entitled to, benefits under part A of Title
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.
301, as amended. For the purposes of division (A)(11)(a) of this
section, "subsidized health plan" means a health plan for which
the employer pays any portion of the plan's cost. The deduction
allowed under division (A)(11)(a) of this section shall be the net
of any related premium refunds, related premium reimbursements, or
related insurance premium dividends received during the taxable
year.
(b) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income during the
taxable year, the amount the taxpayer paid during the taxable
year, not compensated for by any insurance or otherwise, for
medical care of the taxpayer, the taxpayer's spouse, and
dependents, to the extent the expenses exceed seven and one-half
per cent of the taxpayer's federal adjusted gross income.
(c) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income, any amount
included in federal adjusted gross income under section 105 or not
excluded under section 106 of the Internal Revenue Code solely
because it relates to an accident and health plan for a person who
otherwise would be a "qualifying relative" and thus a "dependent"
under section 152 of the Internal Revenue Code but for the fact
that the person fails to meet the income and support limitations
under section 152(d)(1)(B) and (C) of the Internal Revenue Code.
(d) For purposes of division (A)(11) of this section,
"medical care" has the meaning given in section 213 of the
Internal Revenue Code, subject to the special rules, limitations,
and exclusions set forth therein, and "qualified long-term care"
has the same meaning given in section 7702B(c) of the Internal
Revenue Code. Solely for purposes of divisions (A)(11)(a) and (c)
of this section, "dependent" includes a person who otherwise would
be a "qualifying relative" and thus a "dependent" under section
152 of the Internal Revenue Code but for the fact that the person
fails to meet the income and support limitations under section
152(d)(1)(B) and (C) of the Internal Revenue Code.
(12)(a) Deduct any amount included in federal adjusted gross
income solely because the amount represents a reimbursement or
refund of expenses that in any year the taxpayer had deducted as
an itemized deduction pursuant to section 63 of the Internal
Revenue Code and applicable United States department of the
treasury regulations. The deduction otherwise allowed under
division (A)(12)(a) of this section shall be reduced to the extent
the reimbursement is attributable to an amount the taxpayer
deducted under this section in any taxable year.
(b) Add any amount not otherwise included in Ohio adjusted
gross income for any taxable year to the extent that the amount is
attributable to the recovery during the taxable year of any amount
deducted or excluded in computing federal or Ohio adjusted gross
income in any taxable year.
(13) Deduct any portion of the deduction described in section
1341(a)(2) of the Internal Revenue Code, for repaying previously
reported income received under a claim of right, that meets both
of the following requirements:
(a) It is allowable for repayment of an item that was
included in the taxpayer's adjusted gross income for a prior
taxable year and did not qualify for a credit under division (A)
or (B) of section 5747.05 of the Revised Code for that year;
(b) It does not otherwise reduce the taxpayer's adjusted
gross income for the current or any other taxable year.
(14) Deduct an amount equal to the deposits made to, and net
investment earnings of, a medical savings account during the
taxable year, in accordance with section 3924.66 of the Revised
Code. The deduction allowed by division (A)(14) of this section
does not apply to medical savings account deposits and earnings
otherwise deducted or excluded for the current or any other
taxable year from the taxpayer's federal adjusted gross income.
(15)(a) Add an amount equal to the funds withdrawn from a
medical savings account during the taxable year, and the net
investment earnings on those funds, when the funds withdrawn were
used for any purpose other than to reimburse an account holder
for, or to pay, eligible medical expenses, in accordance with
section 3924.66 of the Revised Code;
(b) Add the amounts distributed from a medical savings
account under division (A)(2) of section 3924.68 of the Revised
Code during the taxable year.
(16) Add any amount claimed as a credit under section
5747.059 or 5747.65 of the Revised Code to the extent that such
amount satisfies either of the following:
(a) The amount was deducted or excluded from the computation
of the taxpayer's federal adjusted gross income as required to be
reported for the taxpayer's taxable year under the Internal
Revenue Code;
(b) The amount resulted in a reduction of the taxpayer's
federal adjusted gross income as required to be reported for any
of the taxpayer's taxable years under the Internal Revenue Code.
(17) Deduct the amount contributed by the taxpayer to an
individual development account program established by a county
department of job and family services pursuant to sections 329.11
to 329.14 of the Revised Code for the purpose of matching funds
deposited by program participants. On request of the tax
commissioner, the taxpayer shall provide any information that, in
the tax commissioner's opinion, is necessary to establish the
amount deducted under division (A)(17) of this section.
(18) Beginning in taxable year 2001 but not for any taxable
year beginning after December 31, 2005, if the taxpayer is married
and files a joint return and the combined federal adjusted gross
income of the taxpayer and the taxpayer's spouse for the taxable
year does not exceed one hundred thousand dollars, or if the
taxpayer is single and has a federal adjusted gross income for the
taxable year not exceeding fifty thousand dollars, deduct amounts
paid during the taxable year for qualified tuition and fees paid
to an eligible institution for the taxpayer, the taxpayer's
spouse, or any dependent of the taxpayer, who is a resident of
this state and is enrolled in or attending a program that
culminates in a degree or diploma at an eligible institution. The
deduction may be claimed only to the extent that qualified tuition
and fees are not otherwise deducted or excluded for any taxable
year from federal or Ohio adjusted gross income. The deduction may
not be claimed for educational expenses for which the taxpayer
claims a credit under section 5747.27 of the Revised Code.
(19) Add any reimbursement received during the taxable year
of any amount the taxpayer deducted under division (A)(18) of this
section in any previous taxable year to the extent the amount is
not otherwise included in Ohio adjusted gross income.
(20)(a)(i) Subject to divisions (A)(20)(a)(iii), (iv), and
(v) of this section, add five-sixths of the amount of depreciation
expense allowed by subsection (k) of section 168 of the Internal
Revenue Code, including the taxpayer's proportionate or
distributive share of the amount of depreciation expense allowed
by that subsection to a pass-through entity in which the taxpayer
has a direct or indirect ownership interest.
(ii) Subject to divisions (A)(20)(a)(iii), (iv), and (v) of
this section, add five-sixths of the amount of qualifying section
179 depreciation expense, including the taxpayer's proportionate
or distributive share of the amount of qualifying section 179
depreciation expense allowed to any pass-through entity in which
the taxpayer has a direct or indirect ownership interest.
(iii) Subject to division (A)(20)(a)(v) of this section, for
taxable years beginning in 2012 or thereafter, if the increase in
income taxes withheld by the taxpayer is equal to or greater than
ten per cent of income taxes withheld by the taxpayer during the
taxpayer's immediately preceding taxable year, "two-thirds" shall
be substituted for "five-sixths" for the purpose of divisions
(A)(20)(a)(i) and (ii) of this section.
(iv) Subject to division (A)(20)(a)(v) of this section, for
taxable years beginning in 2012 or thereafter, a taxpayer is not
required to add an amount under division (A)(20) of this section
if the increase in income taxes withheld by the taxpayer and by
any pass-through entity in which the taxpayer has a direct or
indirect ownership interest is equal to or greater than the sum of
(I) the amount of qualifying section 179 depreciation expense and
(II) the amount of depreciation expense allowed to the taxpayer by
subsection (k) of section 168 of the Internal Revenue Code, and
including the taxpayer's proportionate or distributive shares of
such amounts allowed to any such pass-through entities.
(v) If a taxpayer directly or indirectly incurs a net
operating loss for the taxable year for federal income tax
purposes, to the extent such loss resulted from depreciation
expense allowed by subsection (k) of section 168 of the Internal
Revenue Code and by qualifying section 179 depreciation expense,
"the entire" shall be substituted for "five-sixths of the" for the
purpose of divisions (A)(20)(a)(i) and (ii) of this section.
The tax commissioner, under procedures established by the
commissioner, may waive the add-backs related to a pass-through
entity if the taxpayer owns, directly or indirectly, less than
five per cent of the pass-through entity.
(b) Nothing in division (A)(20) of this section shall be
construed to adjust or modify the adjusted basis of any asset.
(c) To the extent the add-back required under division
(A)(20)(a) of this section is attributable to property generating
nonbusiness income or loss allocated under section 5747.20 of the
Revised Code, the add-back shall be sitused to the same location
as the nonbusiness income or loss generated by the property for
the purpose of determining the credit under division (A) of
section 5747.05 of the Revised Code. Otherwise, the add-back shall
be apportioned, subject to one or more of the four alternative
methods of apportionment enumerated in section 5747.21 of the
Revised Code.
(d) For the purposes of division (A)(20)(a)(v) of this
section, net operating loss carryback and carryforward shall not
include the allowance of any net operating loss deduction
carryback or carryforward to the taxable year to the extent such
loss resulted from depreciation allowed by section 168(k) of the
Internal Revenue Code and by the qualifying section 179
depreciation expense amount.
(e) For the purposes of divisions (A)(20) and (21) of this
section:
(i) "Income taxes withheld" means the total amount withheld
and remitted under sections 5747.06 and 5747.07 of the Revised
Code by an employer during the employer's taxable year.
(ii) "Increase in income taxes withheld" means the amount by
which the amount of income taxes withheld by an employer during
the employer's current taxable year exceeds the amount of income
taxes withheld by that employer during the employer's immediately
preceding taxable year.
(iii) "Qualifying section 179 depreciation expense" means the
difference between (I) the amount of depreciation expense directly
or indirectly allowed to a taxpayer under section 179 of the
Internal Revised Code, and (II) the amount of depreciation expense
directly or indirectly allowed to the taxpayer under section 179
of the Internal Revenue Code as that section existed on December
31, 2002.
(21)(a) If the taxpayer was required to add an amount under
division (A)(20)(a) of this section for a taxable year, deduct one
of the following:
(i) One-fifth of the amount so added for each of the five
succeeding taxable years if the amount so added was five-sixths of
qualifying section 179 depreciation expense or depreciation
expense allowed by subsection (k) of section 168 of the Internal
Revenue Code;
(ii) One-half of the amount so added for each of the two
succeeding taxable years if the amount so added was two-thirds of
such depreciation expense;
(iii) One-sixth of the amount so added for each of the six
succeeding taxable years if the entire amount of such depreciation
expense was so added.
(b) If the amount deducted under division (A)(21)(a) of this
section is attributable to an add-back allocated under division
(A)(20)(c) of this section, the amount deducted shall be sitused
to the same location. Otherwise, the add-back shall be apportioned
using the apportionment factors for the taxable year in which the
deduction is taken, subject to one or more of the four alternative
methods of apportionment enumerated in section 5747.21 of the
Revised Code.
(c) No deduction is available under division (A)(21)(a) of
this section with regard to any depreciation allowed by section
168(k) of the Internal Revenue Code and by the qualifying section
179 depreciation expense amount to the extent that such
depreciation results in or increases a federal net operating loss
carryback or carryforward. If no such deduction is available for a
taxable year, the taxpayer may carry forward the amount not
deducted in such taxable year to the next taxable year and add
that amount to any deduction otherwise available under division
(A)(21)(a) of this section for that next taxable year. The
carryforward of amounts not so deducted shall continue until the
entire addition required by division (A)(20)(a) of this section
has been deducted.
(d) No refund shall be allowed as a result of adjustments
made by division (A)(21) of this section.
(22) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income for the taxable
year, the amount the taxpayer received during the taxable year as
reimbursement for life insurance premiums under section 5919.31 of
the Revised Code.
(23) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income for the taxable
year, the amount the taxpayer received during the taxable year as
a death benefit paid by the adjutant general under section 5919.33
of the Revised Code.
(24) Deduct, to the extent included in federal adjusted gross
income and not otherwise allowable as a deduction or exclusion in
computing federal or Ohio adjusted gross income for the taxable
year, military pay and allowances received by the taxpayer during
the taxable year for active duty service in the United States
army, air force, navy, marine corps, or coast guard or reserve
components thereof or the national guard. The deduction may not be
claimed for military pay and allowances received by the taxpayer
while the taxpayer is stationed in this state.
(25) Deduct, to the extent not otherwise allowable as a
deduction or exclusion in computing federal or Ohio adjusted gross
income for the taxable year and not otherwise compensated for by
any other source, the amount of qualified organ donation expenses
incurred by the taxpayer during the taxable year, not to exceed
ten thousand dollars. A taxpayer may deduct qualified organ
donation expenses only once for all taxable years beginning with
taxable years beginning in 2007.
For the purposes of division (A)(25) of this section:
(a) "Human organ" means all or any portion of a human liver,
pancreas, kidney, intestine, or lung, and any portion of human
bone marrow.
(b) "Qualified organ donation expenses" means travel
expenses, lodging expenses, and wages and salary forgone by a
taxpayer in connection with the taxpayer's donation, while living,
of one or more of the taxpayer's human organs to another human
being.
(26) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income for the taxable
year, amounts received by the taxpayer as retired military
personnel pay for service in the United States army, navy, air
force, coast guard, or marine corps or reserve components thereof,
or the national guard, or received by the surviving spouse or
former spouse of such a taxpayer under the survivor benefit plan
on account of such a taxpayer's death. If the taxpayer receives
income on account of retirement paid under the federal civil
service retirement system or federal employees retirement system,
or under any successor retirement program enacted by the congress
of the United States that is established and maintained for
retired employees of the United States government, and such
retirement income is based, in whole or in part, on credit for the
taxpayer's military service, the deduction allowed under this
division shall include only that portion of such retirement income
that is attributable to the taxpayer's military service, to the
extent that portion of such retirement income is otherwise
included in federal adjusted gross income and is not otherwise
deducted under this section. Any amount deducted under division
(A)(26) of this section is not included in a taxpayer's adjusted
gross income for the purposes of section 5747.055 of the Revised
Code. No amount may be deducted under division (A)(26) of this
section on the basis of which a credit was claimed under section
5747.055 of the Revised Code.
(27) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income for the taxable
year, the amount the taxpayer received during the taxable year
from the military injury relief fund created in section 5101.98 of
the Revised Code.
(28) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income for the taxable
year, the amount the taxpayer received as a veterans bonus during
the taxable year from the Ohio department of veterans services as
authorized by Section 2r of Article VIII, Ohio Constitution.
(29) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income for the taxable
year, any loss from wagering transactions that is allowed as an
itemized deduction under section 165 of the Internal Revenue Code
and that the taxpayer deducted in computing federal taxable
income.
(30) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income for the taxable
year, any income derived from providing public services under a
contract through a project owned by the state, as described in
section 126.604 of the Revised Code or derived from a transfer
agreement or from the enterprise transferred under that agreement
under section 4313.02 of the Revised Code.
(31) Deduct, to the extent not otherwise deducted or excluded
in computing federal or Ohio adjusted gross income for the taxable
year, Ohio college opportunity or federal Pell grant amounts
received by the taxpayer or the taxpayer's spouse or dependent
pursuant to section 3333.122 of the Revised Code or 20 U.S.C.
1070a, et seq., and used to pay room or board furnished by the
educational institution for which the grant was awarded at the
institution's facilities, including meal plans administered by the
institution. For the purposes of this division, receipt of a grant
includes the distribution of a grant directly to an educational
institution and the crediting of the grant to the enrollee's
account with the institution.
(B) "Business income" means income, including gain or loss,
arising from transactions, activities, and sources in the regular
course of a trade or business and includes income, gain, or loss
from real property, tangible property, and intangible property if
the acquisition, rental, management, and disposition of the
property constitute integral parts of the regular course of a
trade or business operation. "Business income" includes income,
including gain or loss, from a partial or complete liquidation of
a business, including, but not limited to, gain or loss from the
sale or other disposition of goodwill.
(C) "Nonbusiness income" means all income other than business
income and may include, but is not limited to, compensation, rents
and royalties from real or tangible personal property, capital
gains, interest, dividends and distributions, patent or copyright
royalties, or lottery winnings, prizes, and awards.
(D) "Compensation" means any form of remuneration paid to an
employee for personal services.
(E) "Fiduciary" means a guardian, trustee, executor,
administrator, receiver, conservator, or any other person acting
in any fiduciary capacity for any individual, trust, or estate.
(F) "Fiscal year" means an accounting period of twelve months
ending on the last day of any month other than December.
(G) "Individual" means any natural person.
(H) "Internal Revenue Code" means the "Internal Revenue Code
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.
(I) "Resident" means any of the following, provided that
division (I)(3) of this section applies only to taxable years of a
trust beginning in 2002 or thereafter:
(1) An individual who is domiciled in this state, subject to
section 5747.24 of the Revised Code;
(2) The estate of a decedent who at the time of death was
domiciled in this state. The domicile tests of section 5747.24 of
the Revised Code are not controlling for purposes of division
(I)(2) of this section.
(3) A trust that, in whole or part, resides in this state. If
only part of a trust resides in this state, the trust is a
resident only with respect to that part.
For the purposes of division (I)(3) of this section:
(a) A trust resides in this state for the trust's current
taxable year to the extent, as described in division (I)(3)(d) of
this section, that the trust consists directly or indirectly, in
whole or in part, of assets, net of any related liabilities, that
were transferred, or caused to be transferred, directly or
indirectly, to the trust by any of the following:
(i) A person, a court, or a governmental entity or
instrumentality on account of the death of a decedent, but only if
the trust is described in division (I)(3)(e)(i) or (ii) of this
section;
(ii) A person who was domiciled in this state for the
purposes of this chapter when the person directly or indirectly
transferred assets to an irrevocable trust, but only if at least
one of the trust's qualifying beneficiaries is domiciled in this
state for the purposes of this chapter during all or some portion
of the trust's current taxable year;
(iii) A person who was domiciled in this state for the
purposes of this chapter when the trust document or instrument or
part of the trust document or instrument became irrevocable, but
only if at least one of the trust's qualifying beneficiaries is a
resident domiciled in this state for the purposes of this chapter
during all or some portion of the trust's current taxable year. If
a trust document or instrument became irrevocable upon the death
of a person who at the time of death was domiciled in this state
for purposes of this chapter, that person is a person described in
division (I)(3)(a)(iii) of this section.
(b) A trust is irrevocable to the extent that the transferor
is not considered to be the owner of the net assets of the trust
under sections 671 to 678 of the Internal Revenue Code.
(c) With respect to a trust other than a charitable lead
trust, "qualifying beneficiary" has the same meaning as "potential
current beneficiary" as defined in section 1361(e)(2) of the
Internal Revenue Code, and with respect to a charitable lead trust
"qualifying beneficiary" is any current, future, or contingent
beneficiary, but with respect to any trust "qualifying
beneficiary" excludes a person or a governmental entity or
instrumentality to any of which a contribution would qualify for
the charitable deduction under section 170 of the Internal Revenue
Code.
(d) For the purposes of division (I)(3)(a) of this section,
the extent to which a trust consists directly or indirectly, in
whole or in part, of assets, net of any related liabilities, that
were transferred directly or indirectly, in whole or part, to the
trust by any of the sources enumerated in that division shall be
ascertained by multiplying the fair market value of the trust's
assets, net of related liabilities, by the qualifying ratio, which
shall be computed as follows:
(i) The first time the trust receives assets, the numerator
of the qualifying ratio is the fair market value of those assets
at that time, net of any related liabilities, from sources
enumerated in division (I)(3)(a) of this section. The denominator
of the qualifying ratio is the fair market value of all the
trust's assets at that time, net of any related liabilities.
(ii) Each subsequent time the trust receives assets, a
revised qualifying ratio shall be computed. The numerator of the
revised qualifying ratio is the sum of (1) the fair market value
of the trust's assets immediately prior to the subsequent
transfer, net of any related liabilities, multiplied by the
qualifying ratio last computed without regard to the subsequent
transfer, and (2) the fair market value of the subsequently
transferred assets at the time transferred, net of any related
liabilities, from sources enumerated in division (I)(3)(a) of this
section. The denominator of the revised qualifying ratio is the
fair market value of all the trust's assets immediately after the
subsequent transfer, net of any related liabilities.
(iii) Whether a transfer to the trust is by or from any of
the sources enumerated in division (I)(3)(a) of this section shall
be ascertained without regard to the domicile of the trust's
beneficiaries.
(e) For the purposes of division (I)(3)(a)(i) of this
section:
(i) A trust is described in division (I)(3)(e)(i) of this
section if the trust is a testamentary trust and the testator of
that testamentary trust was domiciled in this state at the time of
the testator's death for purposes of the taxes levied under
Chapter 5731. of the Revised Code.
(ii) A trust is described in division (I)(3)(e)(ii) of this
section if the transfer is a qualifying transfer described in any
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an
irrevocable inter vivos trust, and at least one of the trust's
qualifying beneficiaries is domiciled in this state for purposes
of this chapter during all or some portion of the trust's current
taxable year.
(f) For the purposes of division (I)(3)(e)(ii) of this
section, a "qualifying transfer" is a transfer of assets, net of
any related liabilities, directly or indirectly to a trust, if the
transfer is described in any of the following:
(i) The transfer is made to a trust, created by the decedent
before the decedent's death and while the decedent was domiciled
in this state for the purposes of this chapter, and, prior to the
death of the decedent, the trust became irrevocable while the
decedent was domiciled in this state for the purposes of this
chapter.
(ii) The transfer is made to a trust to which the decedent,
prior to the decedent's death, had directly or indirectly
transferred assets, net of any related liabilities, while the
decedent was domiciled in this state for the purposes of this
chapter, and prior to the death of the decedent the trust became
irrevocable while the decedent was domiciled in this state for the
purposes of this chapter.
(iii) The transfer is made on account of a contractual
relationship existing directly or indirectly between the
transferor and either the decedent or the estate of the decedent
at any time prior to the date of the decedent's death, and the
decedent was domiciled in this state at the time of death for
purposes of the taxes levied under Chapter 5731. of the Revised
Code.
(iv) The transfer is made to a trust on account of a
contractual relationship existing directly or indirectly between
the transferor and another person who at the time of the
decedent's death was domiciled in this state for purposes of this
chapter.
(v) The transfer is made to a trust on account of the will of
a testator who was domiciled in this state at the time of the
testator's death for purposes of the taxes levied under Chapter
5731. of the Revised Code.
(vi) The transfer is made to a trust created by or caused to
be created by a court, and the trust was directly or indirectly
created in connection with or as a result of the death of an
individual who, for purposes of the taxes levied under Chapter
5731. of the Revised Code, was domiciled in this state at the time
of the individual's death.
(g) The tax commissioner may adopt rules to ascertain the
part of a trust residing in this state.
(J) "Nonresident" means an individual or estate that is not a
resident. An individual who is a resident for only part of a
taxable year is a nonresident for the remainder of that taxable
year.
(K) "Pass-through entity" has the same meaning as in section
5733.04 of the Revised Code.
(L) "Return" means the notifications and reports required to
be filed pursuant to this chapter for the purpose of reporting the
tax due and includes declarations of estimated tax when so
required.
(M) "Taxable year" means the calendar year or the taxpayer's
fiscal year ending during the calendar year, or fractional part
thereof, upon which the adjusted gross income is calculated
pursuant to this chapter.
(N) "Taxpayer" means any person subject to the tax imposed by
section 5747.02 of the Revised Code or any pass-through entity
that makes the election under division (D) of section 5747.08 of
the Revised Code.
(O) "Dependents" means dependents as defined in the Internal
Revenue Code and as claimed in the taxpayer's federal income tax
return for the taxable year or which the taxpayer would have been
permitted to claim had the taxpayer filed a federal income tax
return.
(P) "Principal county of employment" means, in the case of a
nonresident, the county within the state in which a taxpayer
performs services for an employer or, if those services are
performed in more than one county, the county in which the major
portion of the services are performed.
(Q) As used in sections 5747.50 to 5747.55 of the Revised
Code:
(1) "Subdivision" means any county, municipal corporation,
park district, or township.
(2) "Essential local government purposes" includes all
functions that any subdivision is required by general law to
exercise, including like functions that are exercised under a
charter adopted pursuant to the Ohio Constitution.
(R) "Overpayment" means any amount already paid that exceeds
the figure determined to be the correct amount of the tax.
(S) "Taxable income" or "Ohio taxable income" applies only to
estates and trusts, and means federal taxable income, as defined
and used in the Internal Revenue Code, adjusted as follows:
(1) Add interest or dividends, net of ordinary, necessary,
and reasonable expenses not deducted in computing federal taxable
income, on obligations or securities of any state or of any
political subdivision or authority of any state, other than this
state and its subdivisions and authorities, but only to the extent
that such net amount is not otherwise includible in Ohio taxable
income and is described in either division (S)(1)(a) or (b) of
this section:
(a) The net amount is not attributable to the S portion of an
electing small business trust and has not been distributed to
beneficiaries for the taxable year;
(b) The net amount is attributable to the S portion of an
electing small business trust for the taxable year.
(2) Add interest or dividends, net of ordinary, necessary,
and reasonable expenses not deducted in computing federal taxable
income, on obligations of any authority, commission,
instrumentality, territory, or possession of the United States to
the extent that the interest or dividends are exempt from federal
income taxes but not from state income taxes, but only to the
extent that such net amount is not otherwise includible in Ohio
taxable income and is described in either division (S)(1)(a) or
(b) of this section;
(3) Add the amount of personal exemption allowed to the
estate pursuant to section 642(b) of the Internal Revenue Code;
(4) Deduct interest or dividends, net of related expenses
deducted in computing federal taxable income, on obligations of
the United States and its territories and possessions or of any
authority, commission, or instrumentality of the United States to
the extent that the interest or dividends are exempt from state
taxes under the laws of the United States, but only to the extent
that such amount is included in federal taxable income and is
described in either division (S)(1)(a) or (b) of this section;
(5) Deduct the amount of wages and salaries, if any, not
otherwise allowable as a deduction but that would have been
allowable as a deduction in computing federal taxable income for
the taxable year, had the targeted jobs credit allowed under
sections 38, 51, and 52 of the Internal Revenue Code not been in
effect, but only to the extent such amount relates either to
income included in federal taxable income for the taxable year or
to income of the S portion of an electing small business trust for
the taxable year;
(6) Deduct any interest or interest equivalent, net of
related expenses deducted in computing federal taxable income, on
public obligations and purchase obligations, but only to the
extent that such net amount relates either to income included in
federal taxable income for the taxable year or to income of the S
portion of an electing small business trust for the taxable year;
(7) Add any loss or deduct any gain resulting from sale,
exchange, or other disposition of public obligations to the extent
that such loss has been deducted or such gain has been included in
computing either federal taxable income or income of the S portion
of an electing small business trust for the taxable year;
(8) Except in the case of the final return of an estate, add
any amount deducted by the taxpayer on both its Ohio estate tax
return pursuant to section 5731.14 of the Revised Code, and on its
federal income tax return in determining federal taxable income;
(9)(a) Deduct any amount included in federal taxable income
solely because the amount represents a reimbursement or refund of
expenses that in a previous year the decedent had deducted as an
itemized deduction pursuant to section 63 of the Internal Revenue
Code and applicable treasury regulations. The deduction otherwise
allowed under division (S)(9)(a) of this section shall be reduced
to the extent the reimbursement is attributable to an amount the
taxpayer or decedent deducted under this section in any taxable
year.
(b) Add any amount not otherwise included in Ohio taxable
income for any taxable year to the extent that the amount is
attributable to the recovery during the taxable year of any amount
deducted or excluded in computing federal or Ohio taxable income
in any taxable year, but only to the extent such amount has not
been distributed to beneficiaries for the taxable year.
(10) Deduct any portion of the deduction described in section
1341(a)(2) of the Internal Revenue Code, for repaying previously
reported income received under a claim of right, that meets both
of the following requirements:
(a) It is allowable for repayment of an item that was
included in the taxpayer's taxable income or the decedent's
adjusted gross income for a prior taxable year and did not qualify
for a credit under division (A) or (B) of section 5747.05 of the
Revised Code for that year.
(b) It does not otherwise reduce the taxpayer's taxable
income or the decedent's adjusted gross income for the current or
any other taxable year.
(11) Add any amount claimed as a credit under section
5747.059 or 5747.65 of the Revised Code to the extent that the
amount satisfies either of the following:
(a) The amount was deducted or excluded from the computation
of the taxpayer's federal taxable income as required to be
reported for the taxpayer's taxable year under the Internal
Revenue Code;
(b) The amount resulted in a reduction in the taxpayer's
federal taxable income as required to be reported for any of the
taxpayer's taxable years under the Internal Revenue Code.
(12) Deduct any amount, net of related expenses deducted in
computing federal taxable income, that a trust is required to
report as farm income on its federal income tax return, but only
if the assets of the trust include at least ten acres of land
satisfying the definition of "land devoted exclusively to
agricultural use" under section 5713.30 of the Revised Code,
regardless of whether the land is valued for tax purposes as such
land under sections 5713.30 to 5713.38 of the Revised Code. If the
trust is a pass-through entity investor, section 5747.231 of the
Revised Code applies in ascertaining if the trust is eligible to
claim the deduction provided by division (S)(12) of this section
in connection with the pass-through entity's farm income.
Except for farm income attributable to the S portion of an
electing small business trust, the deduction provided by division
(S)(12) of this section is allowed only to the extent that the
trust has not distributed such farm income. Division (S)(12) of
this section applies only to taxable years of a trust beginning in
2002 or thereafter.
(13) Add the net amount of income described in section 641(c)
of the Internal Revenue Code to the extent that amount is not
included in federal taxable income.
(14) Add or deduct the amount the taxpayer would be required
to add or deduct under division (A)(20) or (21) of this section if
the taxpayer's Ohio taxable income were computed in the same
manner as an individual's Ohio adjusted gross income is computed
under this section. In the case of a trust, division (S)(14) of
this section applies only to any of the trust's taxable years
beginning in 2002 or thereafter.
(T) "School district income" and "school district income tax"
have the same meanings as in section 5748.01 of the Revised Code.
(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)
of this section, "public obligations," "purchase obligations," and
"interest or interest equivalent" have the same meanings as in
section 5709.76 of the Revised Code.
(V) "Limited liability company" means any limited liability
company formed under Chapter 1705. of the Revised Code or under
the laws of any other state.
(W) "Pass-through entity investor" means any person who,
during any portion of a taxable year of a pass-through entity, is
a partner, member, shareholder, or equity investor in that
pass-through entity.
(X) "Banking day" has the same meaning as in section 1304.01
of the Revised Code.
(Y) "Month" means a calendar month.
(Z) "Quarter" means the first three months, the second three
months, the third three months, or the last three months of the
taxpayer's taxable year.
(AA)(1) "Eligible institution" means a state university or
state institution of higher education as defined in section
3345.011 of the Revised Code, or a private, nonprofit college,
university, or other post-secondary institution located in this
state that possesses a certificate of authorization issued by the
Ohio board of regents pursuant to Chapter 1713. of the Revised
Code or a certificate of registration issued by the state board of
career colleges and schools under Chapter 3332. of the Revised
Code.
(2) "Qualified tuition and fees" means tuition and fees
imposed by an eligible institution as a condition of enrollment or
attendance, not exceeding two thousand five hundred dollars in
each of the individual's first two years of post-secondary
education. If the individual is a part-time student, "qualified
tuition and fees" includes tuition and fees paid for the academic
equivalent of the first two years of post-secondary education
during a maximum of five taxable years, not exceeding a total of
five thousand dollars. "Qualified tuition and fees" does not
include:
(a) Expenses for any course or activity involving sports,
games, or hobbies unless the course or activity is part of the
individual's degree or diploma program;
(b) The cost of books, room and board, student activity fees,
athletic fees, insurance expenses, or other expenses unrelated to
the individual's academic course of instruction;
(c) Tuition, fees, or other expenses paid or reimbursed
through an employer, scholarship, grant in aid, or other
educational benefit program.
(BB)(1) "Modified business income" means the business income
included in a trust's Ohio taxable income after such taxable
income is first reduced by the qualifying trust amount, if any.
(2) "Qualifying trust amount" of a trust means capital gains
and losses from the sale, exchange, or other disposition of equity
or ownership interests in, or debt obligations of, a qualifying
investee to the extent included in the trust's Ohio taxable
income, but only if the following requirements are satisfied:
(a) The book value of the qualifying investee's physical
assets in this state and everywhere, as of the last day of the
qualifying investee's fiscal or calendar year ending immediately
prior to the date on which the trust recognizes the gain or loss,
is available to the trust.
(b) The requirements of section 5747.011 of the Revised Code
are satisfied for the trust's taxable year in which the trust
recognizes the gain or loss.
Any gain or loss that is not a qualifying trust amount is
modified business income, qualifying investment income, or
modified nonbusiness income, as the case may be.
(3) "Modified nonbusiness income" means a trust's Ohio
taxable income other than modified business income, other than the
qualifying trust amount, and other than qualifying investment
income, as defined in section 5747.012 of the Revised Code, to the
extent such qualifying investment income is not otherwise part of
modified business income.
(4) "Modified Ohio taxable income" applies only to trusts,
and means the sum of the amounts described in divisions (BB)(4)(a)
to (c) of this section:
(a) The fraction, calculated under section 5747.013, and
applying section 5747.231 of the Revised Code, multiplied by the
sum of the following amounts:
(i) The trust's modified business income;
(ii) The trust's qualifying investment income, as defined in
section 5747.012 of the Revised Code, but only to the extent the
qualifying investment income does not otherwise constitute
modified business income and does not otherwise constitute a
qualifying trust amount.
(b) The qualifying trust amount multiplied by a fraction, the
numerator of which is the sum of the book value of the qualifying
investee's physical assets in this state on the last day of the
qualifying investee's fiscal or calendar year ending immediately
prior to the day on which the trust recognizes the qualifying
trust amount, and the denominator of which is the sum of the book
value of the qualifying investee's total physical assets
everywhere on the last day of the qualifying investee's fiscal or
calendar year ending immediately prior to the day on which the
trust recognizes the qualifying trust amount. If, for a taxable
year, the trust recognizes a qualifying trust amount with respect
to more than one qualifying investee, the amount described in
division (BB)(4)(b) of this section shall equal the sum of the
products so computed for each such qualifying investee.
(c)(i) With respect to a trust or portion of a trust that is
a resident as ascertained in accordance with division (I)(3)(d) of
this section, its modified nonbusiness income.
(ii) With respect to a trust or portion of a trust that is
not a resident as ascertained in accordance with division
(I)(3)(d) of this section, the amount of its modified nonbusiness
income satisfying the descriptions in divisions (B)(2) to (5) of
section 5747.20 of the Revised Code, except as otherwise provided
in division (BB)(4)(c)(ii) of this section. With respect to a
trust or portion of a trust that is not a resident as ascertained
in accordance with division (I)(3)(d) of this section, the trust's
portion of modified nonbusiness income recognized from the sale,
exchange, or other disposition of a debt interest in or equity
interest in a section 5747.212 entity, as defined in section
5747.212 of the Revised Code, without regard to division (A) of
that section, shall not be allocated to this state in accordance
with section 5747.20 of the Revised Code but shall be apportioned
to this state in accordance with division (B) of section 5747.212
of the Revised Code without regard to division (A) of that
section.
If the allocation and apportionment of a trust's income under
divisions (BB)(4)(a) and (c) of this section do not fairly
represent the modified Ohio taxable income of the trust in this
state, the alternative methods described in division (C) of
section 5747.21 of the Revised Code may be applied in the manner
and to the same extent provided in that section.
(5)(a) Except as set forth in division (BB)(5)(b) of this
section, "qualifying investee" means a person in which a trust has
an equity or ownership interest, or a person or unit of government
the debt obligations of either of which are owned by a trust. For
the purposes of division (BB)(2)(a) of this section and for the
purpose of computing the fraction described in division (BB)(4)(b)
of this section, all of the following apply:
(i) If the qualifying investee is a member of a qualifying
controlled group on the last day of the qualifying investee's
fiscal or calendar year ending immediately prior to the date on
which the trust recognizes the gain or loss, then "qualifying
investee" includes all persons in the qualifying controlled group
on such last day.
(ii) If the qualifying investee, or if the qualifying
investee and any members of the qualifying controlled group of
which the qualifying investee is a member on the last day of the
qualifying investee's fiscal or calendar year ending immediately
prior to the date on which the trust recognizes the gain or loss,
separately or cumulatively own, directly or indirectly, on the
last day of the qualifying investee's fiscal or calendar year
ending immediately prior to the date on which the trust recognizes
the qualifying trust amount, more than fifty per cent of the
equity of a pass-through entity, then the qualifying investee and
the other members are deemed to own the proportionate share of the
pass-through entity's physical assets which the pass-through
entity directly or indirectly owns on the last day of the
pass-through entity's calendar or fiscal year ending within or
with the last day of the qualifying investee's fiscal or calendar
year ending immediately prior to the date on which the trust
recognizes the qualifying trust amount.
(iii) For the purposes of division (BB)(5)(a)(iii) of this
section, "upper level pass-through entity" means a pass-through
entity directly or indirectly owning any equity of another
pass-through entity, and "lower level pass-through entity" means
that other pass-through entity.
An upper level pass-through entity, whether or not it is also
a qualifying investee, is deemed to own, on the last day of the
upper level pass-through entity's calendar or fiscal year, the
proportionate share of the lower level pass-through entity's
physical assets that the lower level pass-through entity directly
or indirectly owns on the last day of the lower level pass-through
entity's calendar or fiscal year ending within or with the last
day of the upper level pass-through entity's fiscal or calendar
year. If the upper level pass-through entity directly and
indirectly owns less than fifty per cent of the equity of the
lower level pass-through entity on each day of the upper level
pass-through entity's calendar or fiscal year in which or with
which ends the calendar or fiscal year of the lower level
pass-through entity and if, based upon clear and convincing
evidence, complete information about the location and cost of the
physical assets of the lower pass-through entity is not available
to the upper level pass-through entity, then solely for purposes
of ascertaining if a gain or loss constitutes a qualifying trust
amount, the upper level pass-through entity shall be deemed as
owning no equity of the lower level pass-through entity for each
day during the upper level pass-through entity's calendar or
fiscal year in which or with which ends the lower level
pass-through entity's calendar or fiscal year. Nothing in division
(BB)(5)(a)(iii) of this section shall be construed to provide for
any deduction or exclusion in computing any trust's Ohio taxable
income.
(b) With respect to a trust that is not a resident for the
taxable year and with respect to a part of a trust that is not a
resident for the taxable year, "qualifying investee" for that
taxable year does not include a C corporation if both of the
following apply:
(i) During the taxable year the trust or part of the trust
recognizes a gain or loss from the sale, exchange, or other
disposition of equity or ownership interests in, or debt
obligations of, the C corporation.
(ii) Such gain or loss constitutes nonbusiness income.
(6) "Available" means information is such that a person is
able to learn of the information by the due date plus extensions,
if any, for filing the return for the taxable year in which the
trust recognizes the gain or loss.
(CC) "Qualifying controlled group" has the same meaning as in
section 5733.04 of the Revised Code.
(DD) "Related member" has the same meaning as in section
5733.042 of the Revised Code.
(EE)(1) For the purposes of division (EE) of this section:
(a) "Qualifying person" means any person other than a
qualifying corporation.
(b) "Qualifying corporation" means any person classified for
federal income tax purposes as an association taxable as a
corporation, except either of the following:
(i) A corporation that has made an election under subchapter
S, chapter one, subtitle A, of the Internal Revenue Code for its
taxable year ending within, or on the last day of, the investor's
taxable year;
(ii) A subsidiary that is wholly owned by any corporation
that has made an election under subchapter S, chapter one,
subtitle A of the Internal Revenue Code for its taxable year
ending within, or on the last day of, the investor's taxable year.
(2) For the purposes of this chapter, unless expressly stated
otherwise, no qualifying person indirectly owns any asset directly
or indirectly owned by any qualifying corporation.
(FF) For purposes of this chapter and Chapter 5751. of the
Revised Code:
(1) "Trust" does not include a qualified pre-income tax
trust.
(2) A "qualified pre-income tax trust" is any pre-income tax
trust that makes a qualifying pre-income tax trust election as
described in division (FF)(3) of this section.
(3) A "qualifying pre-income tax trust election" is an
election by a pre-income tax trust to subject to the tax imposed
by section 5751.02 of the Revised Code the pre-income tax trust
and all pass-through entities of which the trust owns or controls,
directly, indirectly, or constructively through related interests,
five per cent or more of the ownership or equity interests. The
trustee shall notify the tax commissioner in writing of the
election on or before April 15, 2006. The election, if timely
made, shall be effective on and after January 1, 2006, and shall
apply for all tax periods and tax years until revoked by the
trustee of the trust.
(4) A "pre-income tax trust" is a trust that satisfies all of
the following requirements:
(a) The document or instrument creating the trust was
executed by the grantor before January 1, 1972;
(b) The trust became irrevocable upon the creation of the
trust; and
(c) The grantor was domiciled in this state at the time the
trust was created.
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 5726.01 of
the Revised Code, that paid the tax imposed by section 5726.02 of
the Revised Code based on one or more taxable years that include
the entire tax period under this chapter;
(4) A person directly or indirectly owned by one or more
financial institutions, as defined in section 5726.01 of the
Revised Code, that paid the tax imposed by section 5726.02 of the
Revised Code based on one or more taxable years that include the
entire tax period under this chapter.
For the purposes of division (E)(4) 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.
(5) 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, or an unauthorized insurance
company whose gross premiums are subject to tax under section
3905.36 of the Revised Code based on one or more measurement
periods that include the entire tax period under this chapter;
(6) A person that solely facilitates or services one or more
securitizations of phase-in-recovery property pursuant to a final
financing order as those terms are defined in section 4928.23 of
the Revised Code. 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.
(7) 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.
(8) 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. If the qualified
distribution center is a refining facility, "supplier" includes
all dealers, brokers, processors, sellers, vendors, cosigners, and
distributors of qualified property.
(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 or, in the case of gold, silver, platinum, or
palladium delivered to a refining facility solely for refining to
a grade and fineness acceptable for delivery to a registered
commodities exchange. "Further shipping" includes storing and
repackaging property into smaller or larger bundles, so long as
the property is not subject to further manufacturing or
processing. "Refining" is limited to extracting impurities from
gold, silver, platinum, or palladium through smelting or some
other process at a refining facility.
(III) "Qualified distribution center" means a warehouse, a
facility similar to a warehouse, or a refining 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. All warehouses or facilities similar to warehouses
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. All refining facilities that are
operated by persons in the same taxpayer group and that are
located in the same or adjacent counties may 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.
(VIII) "Refining facility" means one or more buildings
located in a county in the Appalachian region of this state as
defined by section 107.21 of the Revised Code and utilized for
refining or smelting gold, silver, platinum, or palladium to a
grade and fineness acceptable for delivery to a registered
commodities exchange.
(IX) "Registered commodities exchange" means a board of
trade, such as New York mercantile exchange, inc. or commodity
exchange, inc., designated as a contract market by the commodity
futures trading commission under the "Commodity Exchange Act," 7
U.S.C. 1 et seq., as amended.
(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 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)(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)(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)(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)(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)(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.
(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)(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.
(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.
Section 101.02. That existing sections 9.33, 153.65, 718.01,
2937.221, 3354.13, 3355.10, 3357.12, 5503.31, 5503.32, 5513.01,
5533.31, 5537.01, 5537.02, 5537.03, 5537.04, 5537.05, 5537.051,
5537.06, 5537.07, 5537.08, 5537.09, 5537.11, 5537.12, 5537.13,
5537.14, 5537.15, 5537.16, 5537.17, 5537.19, 5537.20, 5537.21,
5537.22, 5537.24, 5537.25, 5537.26, 5537.27, 5537.28, 5537.30,
5728.01, 5735.05, 5735.23, 5739.02, 5747.01, and 5751.01 and
sections 126.60,
126.601, 126.602, 126.603, 126.604, and 126.605
of the Revised Code are hereby repealed.
Section 203.10. All items in this section are hereby
appropriated as designated out of any moneys in the state treasury
to the credit of the designated fund. For all appropriations made
in this act, those in the first column are for fiscal year 2014
and those in the second column are for fiscal year 2015. The
appropriations made in this act are in addition to any other
appropriations made for the FY 2014-FY 2015 biennium.
DOT DEPARTMENT OF TRANSPORTATION
Highway Operating Fund Group
7002 |
772425 |
|
Highway Construction - Turnpike |
|
$ |
200,000,000 |
|
$ |
300,000,000 |
|
|
TOTAL HOF Highway Operating Fund Group
| |
$ |
200,000,000 |
|
$ |
300,000,000 |
|
|
TOTAL ALL BUDGET FUND GROUPS
| |
$ |
200,000,000 |
|
$ |
300,000,000 |
|
|
Within the limits set forth in this act, the Director of
Budget and Management shall establish accounts indicating the
source and amount of funds for each appropriation made in this
act, and shall determine the form and manner in which
appropriation accounts shall be maintained. Expenditures from
appropriations contained in this act shall be accounted for as
though made in the transportation budget act of the 130th General
Assembly.
The appropriations made in this act are subject to all
provisions of the transportation budget act of the 130th General
Assembly that are generally applicable to such appropriations.
Section 815.10. 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 following sections,
presented in this act as composites of the sections as amended by
the acts indicated, are the resulting versions of the sections in
effect prior to the effective date of the sections as presented in
this act:
Section 5739.02 of the Revised Code as amended by both Am.
Sub. H.B. 487 and Am. Sub. H.B. 508 of the 129th General Assembly.
Section 5747.01 of the Revised Code as amended by Am. H.B.
167, Sub. H.B. 365, and Am. Sub. H.B. 510, all of the 129th
General Assembly.
Section 5751.01 of the Revised Code as amended by both Am.
Sub. H.B. 472 and Am. Sub. H.B. 510 of the 129th General Assembly.
|