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H. B. No. 600 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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Representatives Beck, Adams, J.
Cosponsors:
Representatives Retherford, Brenner
A BILL
To amend sections 5739.02, 5741.02, 5741.03, and
5751.03 and to enact sections 5739.20 and 5751.031
of the Revised Code to earmark new Ohio use tax
collections by remote sellers for the purposes of
paying back amounts borrowed by the state from the
federal government to issue unemployment benefits
and reducing the rates of the sales and use tax
and commercial activity tax.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5739.02, 5741.02, 5741.03, and
5751.03 be amended and sections 5739.20 and 5751.031 of the
Revised Code be enacted to read as follows:
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 Except as provided in section
5739.20 of the Revised Code, the rate of the tax shall be five and
three-fourths 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 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 or laws of the United States or the Constitution
of this state;
(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;
building and construction materials for incorporation into a
transportation facility pursuant to a public-private agreement
entered into under sections 5501.70 to 5501.83 of the Revised
Code; 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 JobsOhio in accordance with section 4313.02
of the Revised Code.
(52)(a) Sales to a qualifying corporation.
(b) As used in division (B)(52) of this section:
(i) "Qualifying corporation" means a nonprofit corporation
organized in this state that leases from an eligible county land,
buildings, structures, fixtures, and improvements to the land that
are part of or used in a public recreational facility used by a
major league professional athletic team or a class A to class AAA
minor league affiliate of a major league professional athletic
team for a significant portion of the team's home schedule,
provided the following apply:
(I) The facility is leased from the eligible county pursuant
to a lease that requires substantially all of the revenue from the
operation of the business or activity conducted by the nonprofit
corporation at the facility in excess of operating costs, capital
expenditures, and reserves to be paid to the eligible county at
least once per calendar year.
(II) Upon dissolution and liquidation of the nonprofit
corporation, all of its net assets are distributable to the board
of commissioners of the eligible county from which the corporation
leases the facility.
(ii) "Eligible county" has the same meaning as in section
307.695 of the Revised Code.
(53) Sales to or by a cable service provider, video service
provider, or radio or television broadcast station regulated by
the federal government of cable service or programming, video
service or programming, audio service or programming, or
electronically transferred digital audiovisual or audio work. As
used in division (B)(53) of this section, "cable service" and
"cable service provider" have the same meanings as in section
1332.01 of the Revised Code, and "video service," "video service
provider," and "video programming" have the same meanings as in
section 1332.21 of the Revised Code.
(C) For the purpose of the proper administration of this
chapter, and to prevent the evasion of the tax, it is presumed
that all sales made in this state are subject to the tax until the
contrary is established.
(D) The levy of this tax on retail sales of recreation and
sports club service shall not prevent a municipal corporation from
levying any tax on recreation and sports club dues or on any
income generated by recreation and sports club dues.
(E) The tax collected by the vendor from the consumer under
this chapter is not part of the price, but is a tax collection for
the benefit of the state, and of counties levying an additional
sales tax pursuant to section 5739.021 or 5739.026 of the Revised
Code and of transit authorities levying an additional sales tax
pursuant to section 5739.023 of the Revised Code. Except for the
discount authorized under section 5739.12 of the Revised Code and
the effects of any rounding pursuant to section 5703.055 of the
Revised Code, no person other than the state or such a county or
transit authority shall derive any benefit from the collection or
payment of the tax levied by this section or section 5739.021,
5739.023, or 5739.026 of the Revised Code.
Sec. 5739.20. (A) There is hereby created in the state
treasury the sales and use tax relief fund, which shall consist of
remote seller use tax collections credited by the director of
budget and management pursuant to division (C)(2)(b) of section
5741.03 of the Revised Code.
(B) Not later than the thirty-first day of July of each year
beginning in 2015, the director shall calculate the following
based on the director's best estimates:
(1) The revenue that will be received from the taxes levied
under sections 5739.02 and 5741.02 of the Revised Code in the
twelve-month period beginning on the succeeding first day of
November and ending on the last day of the following October with
no reductions to the rates specified in division (A)(1) of section
5739.02 and division (A)(1) of section 5741.02 of the Revised
Code;
(2) The revenue that would be received from such taxes during
that period if the director subtracted one-half of one percentage
point from each of the rates specified in division (A)(1) of
section 5739.02 and division (A)(1) of section 5741.02 of the
Revised Code;
(3) The percentage obtained by multiplying the balance of the
sales and use tax relief fund, after all credits for the current
year have been made pursuant to divisions (C)(2)(a) and (b) of
section 5741.03 of the Revised Code, by the tax rate specified in
division (A)(1) of section 5739.02 of the Revised Code, then
dividing the product by the revenue estimate determined in
division (B)(1) of this section.
(C) Not later than the thirty-first day of July of each year
beginning in 2015, the director shall certify the percentage
calculated in division (B)(3) of this section to the tax
commissioner. If the percentage is not less than one-half of one
per cent, the commissioner shall reduce the rates of the taxes
levied under sections 5739.02 and 5741.02 of the Revised Code by
one-half of one percentage point. If the percentage is less than
one-half of one per cent but not less than one-quarter of one per
cent, the commissioner shall reduce the rates of such taxes by
one-quarter of one percentage point. If the percentage is less
than one-quarter of one per cent, the commissioner shall not
reduce the rate of such taxes.
Rate reductions under this division apply during the
twelve-month period beginning on the succeeding first day of
October and ending on the thirtieth day of the following
September. If the rate of tax levied under section 5739.02 of the
Revised Code is reduced under this division, the rate and amount
of tax levied under section 5739.10 of the Revised Code shall be
reduced to the same extent for the same period.
(D) The director shall transfer money in the sales and use
tax relief fund to the general revenue fund, the local government
fund, and the public library fund as necessary to offset revenue
reductions resulting from the reductions in taxes required under
division (C) of this section in the respective amounts and
percentages prescribed by sections 131.51, 5739.21, and 5741.03 of
the Revised Code. If no reductions in taxes are made under that
division, the director shall not transfer money from the sales and
use tax relief fund to the general revenue fund, the local
government fund, and the public library fund. Interest earned on
money in the sales and use tax relief fund shall be credited to
the sales and use tax relief fund.
Sec. 5741.02. (A)(1) For the use of the general revenue fund
of the state, an excise tax is hereby levied on the storage, use,
or other consumption in this state of tangible personal property
or the benefit realized in this state of any service provided. The
tax shall be collected as provided in section 5739.025 of the
Revised Code. The Except as provided in section 5739.20 of the
Revised Code, the rate of the tax shall be five and three-fourths
per cent.
(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
seller at the time the lease or rental is consummated and shall be
calculated by the seller on the basis of the total amount to be
paid by the lessee or renter under the lease or rental 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 seller 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 seller 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.
(3) Except as provided in division (A)(2) of this section, in
the case of a transaction, the price of which consists in whole or
part of the lease or rental of tangible personal property, the tax
shall be measured by the installments of those leases or rentals.
(B) Each consumer, storing, using, or otherwise consuming in
this state tangible personal property or realizing in this state
the benefit of any service provided, shall be liable for the tax,
and such liability shall not be extinguished until the tax has
been paid to this state; provided, that the consumer shall be
relieved from further liability for the tax if the tax has been
paid to a seller in accordance with section 5741.04 of the Revised
Code or prepaid by the seller in accordance with section 5741.06
of the Revised Code.
(C) The tax does not apply to the storage, use, or
consumption in this state of the following described tangible
personal property or services, nor to the storage, use, or
consumption or benefit in this state of tangible personal property
or services purchased under the following described circumstances:
(1) When the sale of property or service in this state is
subject to the excise tax imposed by sections 5739.01 to 5739.31
of the Revised Code, provided said tax has been paid;
(2) Except as provided in division (D) of this section,
tangible personal property or services, the acquisition of which,
if made in Ohio, would be a sale not subject to the tax imposed by
sections 5739.01 to 5739.31 of the Revised Code;
(3) Property or services, the storage, use, or other
consumption of or benefit from which this state is prohibited from
taxing by the Constitution of the United States, laws of the
United States, or the Constitution of this state. This exemption
shall not exempt from the application of the tax imposed by this
section the storage, use, or consumption of tangible personal
property that was purchased in interstate commerce, but that has
come to rest in this state, provided that fuel to be used or
transported in carrying on interstate commerce that is stopped
within this state pending transfer from one conveyance to another
is exempt from the excise tax imposed by this section and section
5739.02 of the Revised Code;
(4) Transient use of tangible personal property in this state
by a nonresident tourist or vacationer, or a nonbusiness use
within this state by a nonresident of this state, if the property
so used was purchased outside this state for use outside this
state and is not required to be registered or licensed under the
laws of this state;
(5) Tangible personal property or services rendered, upon
which taxes have been paid to another jurisdiction to the extent
of the amount of the tax paid to such other jurisdiction. Where
the amount of the tax imposed by this section and imposed pursuant
to section 5741.021, 5741.022, or 5741.023 of the Revised Code
exceeds the amount paid to another jurisdiction, the difference
shall be allocated between the tax imposed by this section and any
tax imposed by a county or a transit authority pursuant to section
5741.021, 5741.022, or 5741.023 of the Revised Code, in proportion
to the respective rates of such taxes.
As used in this subdivision, "taxes paid to another
jurisdiction" means the total amount of retail sales or use tax or
similar tax based upon the sale, purchase, or use of tangible
personal property or services rendered legally, levied by and paid
to another state or political subdivision thereof, or to the
District of Columbia, where the payment of such tax does not
entitle the taxpayer to any refund or credit for such payment.
(6) The transfer of a used manufactured home or used mobile
home, as defined by section 5739.0210 of the Revised Code, made on
or after January 1, 2000;
(7) Drugs that are or are intended to be distributed free of
charge to a practitioner licensed to prescribe, dispense, and
administer drugs to a human being in the course of a professional
practice and that by law may be dispensed only by or upon the
order of such a practitioner.;
(8) Computer equipment and related software leased from a
lessor located outside this state and initially received in this
state on behalf of the consumer by a third party that will retain
possession of such property for not more than ninety days and that
will, within that ninety-day period, deliver such property to the
consumer at a location outside this state. Division (C)(8) of this
section does not provide exemption from taxation for any otherwise
taxable charges associated with such property while it is in this
state or for any subsequent storage, use, or consumption of such
property in this state by or on behalf of the consumer.
(9) Tangible personal property held for sale by a person but
not for that person's own use and donated by that person, without
charge or other compensation, to either of the following:
(a) A nonprofit organization 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; or
(b) This state or any political subdivision of this state,
but only if donated for exclusively public purposes.
For the purposes of division (C)(10)(9) of this section,
"charitable purposes" has the same meaning as in division (B)(12)
of section 5739.02 of the Revised Code.
(D) The tax applies to the storage, use, or other consumption
in this state of tangible personal property or services, the
acquisition of which at the time of sale was excepted under
division (E) of section 5739.01 of the Revised Code from the tax
imposed by section 5739.02 of the Revised Code, but which has
subsequently been temporarily or permanently stored, used, or
otherwise consumed in a taxable manner.
(E)(1)(a) If any transaction is claimed to be exempt under
division (E) of section 5739.01 of the Revised Code or under
section 5739.02 of the Revised Code, with the exception of
divisions (B)(1) to (11) or (28) of section 5739.02 of the Revised
Code, the consumer shall provide to the seller, and the seller
shall obtain from the consumer, a certificate specifying the
reason that the transaction is not subject to the tax. The
certificate shall be in such form, and shall be provided either in
a hard copy form or electronic form, as the tax commissioner
prescribes.
(b) A seller that obtains a fully completed exemption
certificate from a consumer is relieved of liability for
collecting and remitting tax on any sale covered by that
certificate. If it is determined the exemption was improperly
claimed, the consumer shall be liable for any tax due on that sale
under this chapter. Relief under this division from liability does
not apply to any of the following:
(i) A seller that fraudulently fails to collect tax;
(ii) A seller that solicits consumers to participate in the
unlawful claim of an exemption;
(iii) A seller that accepts an exemption certificate from a
consumer that claims an exemption based on who purchases or who
sells property or a service, when the subject of the transaction
sought to be covered by the exemption certificate is actually
received by the consumer at a location operated by the seller in
this state, and this state has posted to its web site an exemption
certificate form that clearly and affirmatively indicates that the
claimed exemption is not available in this state;
(iv) A seller that accepts an exemption certificate from a
consumer who claims a multiple points of use exemption under
division (D) of section 5739.033 of the Revised Code, if the item
purchased is tangible personal property, other than prewritten
computer software.
(2) The seller shall maintain records, including exemption
certificates, of all sales on which a consumer has claimed an
exemption, and provide them to the tax commissioner on request.
(3) If no certificate is provided or obtained within ninety
days after the date on which the transaction is consummated, it
shall be presumed that the tax applies. Failure to have so
provided or obtained a certificate shall not preclude a seller,
within one hundred twenty days after the tax commissioner gives
written notice of intent to levy an assessment, from either
establishing that the transaction is not subject to the tax, or
obtaining, in good faith, a fully completed exemption certificate.
(4) If a transaction is claimed to be exempt under division
(B)(13) of section 5739.02 of the Revised Code, the contractor
shall obtain certification of the claimed exemption from the
contractee. This certification shall be in addition to an
exemption certificate provided by the contractor to the seller. A
contractee that provides a certification under this division shall
be deemed to be the consumer of all items purchased by the
contractor under the claim of exemption, if it is subsequently
determined that the exemption is not properly claimed. The
certification shall be in such form as the tax commissioner
prescribes.
(F) A seller who files a petition for reassessment contesting
the assessment of tax on transactions for which the seller
obtained no valid exemption certificates, and for which the seller
failed to establish that the transactions were not subject to the
tax during the one-hundred-twenty-day period allowed under
division (E) of this section, may present to the tax commissioner
additional evidence to prove that the transactions were exempt.
The seller shall file such evidence within ninety days of the
receipt by the seller of the notice of assessment, except that,
upon application and for reasonable cause, the tax commissioner
may extend the period for submitting such evidence thirty days.
(G) For the purpose of the proper administration of sections
5741.01 to 5741.22 of the Revised Code, and to prevent the evasion
of the tax hereby levied, it shall be presumed that any use,
storage, or other consumption of tangible personal property in
this state is subject to the tax until the contrary is
established.
(H) The tax collected by the seller 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
use tax pursuant to section 5741.021 or 5741.023 of the Revised
Code and of transit authorities levying an additional use tax
pursuant to section 5741.022 of the Revised Code. Except for the
discount authorized under section 5741.12 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 of
such tax.
Sec. 5741.03. (A) One hundred per cent of all money
deposited into the state treasury under sections 5741.01 to
5741.22 of the Revised Code that is not required to be distributed
as provided in division (B) of this section shall be credited to
the general revenue fund.
(B) In any case where any county or transit authority has
levied a tax or taxes pursuant to section 5741.021, 5741.022, or
5741.023 of the Revised Code, the tax commissioner shall, within
forty-five days after the end of each month, determine and certify
to the director of budget and management the amount of the
proceeds of such tax or taxes from billings and assessments
received during that month, or shown on tax returns or reports
filed during that month, to be returned to the county or transit
authority levying the tax or taxes, which amounts shall be
determined in the manner provided in section 5739.21 of the
Revised Code. The director of budget and management shall
transfer, from the general revenue fund, to the permissive tax
distribution fund created by division (B)(1) of section 4301.423
of the Revised Code and to the local sales tax administrative fund
created by division (C) of section 5739.21 of the Revised Code,
the amounts certified by the tax commissioner. The tax
commissioner shall then, on or before the twentieth day of the
month in which such certification is made, provide for payment of
such respective amounts to the county treasurer or to the fiscal
officer of the transit authority levying the tax or taxes. The
amount transferred to the local sales tax administrative fund is
for use by the tax commissioner in defraying costs the
commissioner incurs in administering such taxes levied by a county
or transit authority.
(C)(1) Not later than the first thirty-first day of January
and of July each calendar year beginning July 1 31, 2015, the tax
commissioner and the director of budget and management shall
jointly determine the remote seller use tax collections for the
preceding fiscal year. The amount of remote seller use tax
collections equals the amount of tax imposed by section 5741.02 of
the Revised Code and remitted under this chapter by remote sellers
during the six-month period ending on the preceding last day of
November and of May, respectively, that fiscal year reduced by any
the following:
(a) Any such tax remitted by sellers pursuant to an agreement
entered into under section 5740.03 of the Revised Code during the
six-month period and by any that fiscal year;
(b) Any refunds issued during the six-month period that
fiscal year to remote sellers from the tax refund fund on account
of that tax;
(c) The amount of that tax remitted during fiscal year 2013
by remote sellers that voluntarily registered under section
5741.17 of the Revised Code.
(2) Not later than that first thirty-first day of January and
of July of
the each calendar year beginning July 1 31, 2015, the
director of budget and management shall transfer from the general
revenue fund to the income tax reduction fund credit the remote
seller use tax collections amount determined under division (C)(1)
of this section, less one-half of the amount of that tax remitted
during fiscal year 2013 by remote sellers that voluntarily
registered under section 5741.17 of the Revised Code. Amounts
transferred to the income tax reduction fund under this section
shall be included in the determination of the percentage under
division (B)(2) of section 131.44 of the Revised Code required to
be made by the thirty-first day of July of the calendar year in
which the commissioner makes the certifications under this
division. as follows:
(a) To the extent that the remote seller use tax collections
do not exceed the debt the state owes to the federal government
for amounts borrowed to issue unemployment benefits from the
state's unemployment compensation trust fund, credit the amount to
the federal unemployment insurance debt retirement fund, which is
hereby created in the state treasury. The director shall use money
in the fund to make payments to the United States secretary of the
treasury on the balance of amounts borrowed by the state from the
federal government to issue unemployment benefits from the state's
unemployment compensation trust fund. Interest earned on money in
the debt retirement fund shall be credited to that fund. If the
debt is paid in full or is no longer owed, the director shall use
the remainder of the remote seller use tax collections and any
money remaining in the debt retirement fund as provided in
divisions (C)(2)(b) and (c) of this section.
(b) To the extent that the remaining remote seller use tax
collections do not exceed the difference between the sales and use
tax revenue estimates calculated by the director under divisions
(B)(1) and (2) of section 5739.20 of the Revised Code, credit the
amount to the sales and use tax relief fund created under that
section. Any remaining remote seller use tax collections shall be
used as provided in division (C)(2)(c) of this section.
(c) To the extent that the remote seller use tax collections
remaining after crediting under division (C)(2)(b) of this section
do not exceed the difference between the commercial activity tax
revenue estimates calculated by the director under divisions
(B)(1) and (2) of section 5751.031 of the Revised Code, credit the
amount to the commercial activity tax relief fund created under
that section. Remaining remote seller use tax collections shall be
retained in the general revenue fund.
Sec. 5751.03. (A) Except as provided in division (B) of this
section and section 5751.031 of the Revised Code, the tax levied
under this section for each tax period shall be the product of two
and six-tenths mills per dollar times the remainder of the
taxpayer's taxable gross receipts for the tax period after
subtracting the exclusion amount provided for in division (C) of
this section.
(B) Notwithstanding division (C) of this section, the tax on
the first one million dollars in taxable gross receipts each
calendar year shall be calculated as follows:
(1) For taxpayers with annual taxable gross receipts of one
million dollars or less for the calendar year, one hundred fifty
dollars;
(2) For taxpayers with annual taxable gross receipts greater
than one million dollars, but less than or equal to two million
dollars for the calendar year, eight hundred dollars;
(3) For taxpayers with annual taxable gross receipts greater
than two million dollars, but less than or equal to four million
dollars for the calendar year, two thousand one hundred dollars;
(4) For taxpayers with annual taxable gross receipts greater
than four million dollars for the calendar year, two thousand six
hundred dollars.
The tax imposed under division (B)(1) of this section shall
be paid not later than the tenth day of May of each year along
with the annual tax return. The tax imposed under divisions
(B)(2), (3), and (4) of this section shall be paid not later than
the tenth day of May of each year along with the first quarter tax
return.
(C)(1) Each taxpayer may exclude the first one million
dollars of taxable gross receipts for a calendar year. Calendar
quarter taxpayers shall apply the full exclusion amount to the
first calendar quarter return the taxpayer files that calendar
year and may carry forward and apply any unused exclusion amount
to subsequent calendar quarters within that same calendar year.
(2) A taxpayer switching from a calendar year tax period to a
calendar quarter tax period may, for the first quarter of the
change, apply the full one-million-dollar exclusion amount to the
first calendar quarter return the taxpayer files that calendar
year. Such taxpayers may carry forward and apply any unused
exclusion amount to subsequent calendar quarters within that same
calendar year. The tax rate shall be based on the rate imposed
that calendar quarter when the taxpayer switches from a calendar
year to a calendar quarter tax period.
(3) A taxpayer shall not exclude more than one million
dollars pursuant to division (C) of this section in a calendar
year.
Sec. 5751.031. (A) There is hereby created in the state
treasury the commercial activity tax relief fund, which shall
consist of remote seller use tax collections credited by the
director of budget and management pursuant to division (C)(2)(c)
of section 5741.03 of the Revised Code.
(B) Not later than the thirty-first day of July of each year
beginning in 2015, the director shall calculate the following
based on the director's best estimates:
(1) The revenue that will be received from the tax levied
under Chapter 5751. of the Revised Code in the twelve-month period
beginning on the succeeding first day of December and ending on
the last day of the following November with no reduction to the
rate specified in division (A) of section 5751.03 of the Revised
Code;
(2) The revenue that would be received from that tax during
that period if the rate of the tax were to be two mills per dollar
instead of the rate specified in division (A) of section 5751.03
of the Revised Code;
(3) The percentage obtained by multiplying the balance of the
commercial activity tax relief fund, after all credits for the
current year have been made pursuant to divisions (C)(2)(a), (b),
and (c) of section 5741.03 of the Revised Code, by twenty-six
hundredths of one per cent, then dividing the product by the
revenue estimate determined in division (B)(1) of this section.
(C) Not later than the thirty-first day of July of each year
beginning in 2015, the director shall certify the percentage
calculated in division (B)(3) of this section to the tax
commissioner. If the percentage is not less than six thousandths
of one per cent, the commissioner shall reduce the rate specified
in division (A) of section 5751.03 of the Revised Code by
six-tenths of one mill per dollar. If the percentage is less than
six thousandths of one per cent but not less than three
thousandths of one per cent, the commissioner shall reduce the tax
rate by three-tenths of one mill per dollar. If the percentage is
less than one-one thousandth of one per cent, the commissioner
shall not reduce the tax rate.
Rate reductions under this division apply to tax periods
beginning on the succeeding first day of October and ending on the
thirtieth day of the following September.
(D) The director shall transfer money in the commercial
activity tax relief fund to the general revenue fund, the local
government fund, the public library fund, the revenue enhancement
fund, the commercial activity tax motor fuel receipts fund, the
school district tangible property tax replacement fund, and the
local government property tax replacement fund as necessary to
offset revenue reductions resulting from the reductions in taxes
required under division (C) of this section in the respective
amounts and percentages prescribed by sections 131.51 and 5751.20
of the Revised Code. If no reductions in taxes are made under that
division, the director shall not transfer money from the
commercial activity relief fund. Interest earned on money in the
commercial activity tax relief fund shall be credited to the
commercial activity tax relief fund.
Section 2. That existing sections 5739.02, 5741.02, 5741.03,
and 5751.03 of the Revised Code are hereby repealed.
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