Bill Text: OH HB492 | 2013-2014 | 130th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: To provide authorization and conditions for the levy and administration of taxes in this state.

Spectrum: Slight Partisan Bill (Republican 30-10)

Status: (Passed) 2014-09-17 - Effective Date [HB492 Detail]

Download: Ohio-2013-HB492-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 492

Representative Scherer 

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A BILL

To amend sections 122.17, 122.171, 122.86, 166.21,

1

718.15, 718.151, 3734.905, 4921.13, 4921.19,

2

5703.056, 5703.059, 5703.21, 5727.47, 5727.91,

3

5735.01, 5735.026, 5735.03, 5735.06, 5735.062,

4

5735.07, 5735.09, 5735.12, 5735.141, 5735.23,

5

5736.06, 5736.09, 5736.13, 5743.01, 5743.021,

6

5743.024, 5743.025, 5743.03, 5743.04, 5743.05,

7

5743.051, 5743.112, 5743.52, 5743.65, 5747.08,

8

5747.98, and 5751.20, to enact section 5736.50,

9

and to repeal sections 183.35, 5726.08, 5733.30,

10

5735.16, 5743.06, and 5745.10 of the Revised Code

11

to provide authorization and conditions for the

12

levy and administration of taxes in this state.

13

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 122.17, 122.171, 122.86, 166.21,	14
718.15, 718.151, 3734.905, 4921.13, 4921.19, 5703.056, 5703.059,	15
5703.21, 5727.47, 5727.91, 5735.01, 5735.026, 5735.03, 5735.06,	16
5735.062, 5735.07, 5735.09, 5735.12, 5735.141, 5735.23, 5736.06,	17
5736.09, 5736.13, 5743.01, 5743.021, 5743.024, 5743.025, 5743.03,	18
5743.04, 5743.05, 5743.051, 5743.112, 5743.52, 5743.65, 5747.08,	19
5747.98, and 5751.20 be amended and section 5736.50 of the Revised	20
Code be enacted to read as follows:	21

Sec. 122.17.  (A) As used in this section:

22

(1) "Income tax revenue" means the total amount withheld	23
under section 5747.06 of the Revised Code by the taxpayer during	24
the taxable year, or during the calendar year that includes the	25
tax period, from the compensation of each employee or each	26
home-based employee employed in the project to the extent the	27
employee's withholdings are not used to determine the credit under	28
section 122.171 of the Revised Code. "Income tax revenue" excludes	29
amounts withheld before the day the taxpayer becomes eligible for	30
the credit.	31

(2) "Baseline income tax revenue" means income tax revenue	32
except that the applicable withholding period is the twelve months	33
immediately preceding the date the tax credit authority approves	34
the taxpayer's application or the date the tax credit authority	35
receives the recommendation described in division (C)(2)(a) of	36
this section, whichever occurs first, multiplied by the sum of one	37
plus an annual pay increase factor to be determined by the tax	38
credit authority. If the taxpayer becomes eligible for the credit	39
after the first day of the taxpayer's taxable year or after the	40
first day of the calendar year that includes the tax period, the	41
taxpayer's baseline income tax revenue for the first such taxable	42
or calendar year of credit eligibility shall be reduced in	43
proportion to the number of days during the taxable or calendar	44
year for which the taxpayer was not eligible for the credit. For	45
subsequent taxable or calendar years, "baseline income tax	46
revenue" equals the unreduced baseline income tax revenue for the	47
preceding taxable or calendar year multiplied by the sum of one	48
plus the pay increase factor.	49

(3) "Excess income tax revenue" means income tax revenue	50
minus baseline income tax revenue.	51

(4) "Home-based employee" means an employee whose services	52
are performed primarily from the employee's residence in this	53
state exclusively for the benefit of the project and whose rate of	54
pay is at least one hundred thirty-one per cent of the federal	55
minimum wage under 29 U.S.C. 206.	56

(B) The tax credit authority may make grants under this	57
section to foster job creation in this state. Such a grant shall	58
take the form of a refundable credit allowed against the tax	59
imposed by section 5725.18, 5726.02, 5729.03, 5733.06, 5736.02, or	60
5747.02 or levied under Chapter 5751. of the Revised Code. The	61
credit shall be claimed for the taxable years or tax periods	62
specified in the taxpayer's agreement with the tax credit	63
authority under division (D) of this section. With respect to	64
taxes imposed under section 5726.02, 5733.06, or 5747.02 or	65
Chapter 5751. of the Revised Code, the credit shall be claimed in	66
the order required under section 5726.98, 5733.98, 5747.98, or	67
5751.98 of the Revised Code. The amount of the credit available	68
for a taxable year or for a calendar year that includes a tax	69
period equals the excess income tax revenue for that year	70
multiplied by the percentage specified in the agreement with the	71
tax credit authority. Any credit granted under this section	72
against the tax imposed by section 5733.06 or 5747.02 of the	73
Revised Code, to the extent not fully utilized against such tax	74
for taxable years ending prior to 2008, shall automatically be	75
converted without any action taken by the tax credit authority to	76
a credit against the tax levied under Chapter 5751. of the Revised	77
Code for tax periods beginning on or after July 1, 2008, provided	78
that the person to whom the credit was granted is subject to such	79
tax. The converted credit shall apply to those calendar years in	80
which the remaining taxable years specified in the agreement end.	81

(C)(1) A taxpayer or potential taxpayer who proposes a	82
project to create new jobs in this state may apply to the tax	83
credit authority to enter into an agreement for a tax credit under	84
this section.	85

An application shall not propose to include both home-based	86
employees and employees who are not home-based employees in the	87
computation of income tax revenue for the purposes of the same tax	88
credit agreement. If a taxpayer or potential taxpayer employs both	89
home-based employees and employees who are not home-based	90
employees in a project, the taxpayer shall submit separate	91
applications for separate tax credit agreements for the project,	92
one of which shall include home-based employees in the computation	93
of income tax revenue and one of which shall include all other	94
employees in the computation of income tax revenue.	95

The director of development services shall prescribe the form	96
of the application. After receipt of an application, the authority	97
may enter into an agreement with the taxpayer for a credit under	98
this section if it determines all of the following:	99

(a) The taxpayer's project will increase payroll and income	100
tax revenue;	101

(b) The taxpayer's project is economically sound and will	102
benefit the people of this state by increasing opportunities for	103
employment and strengthening the economy of this state;	104

(c) Receiving the tax credit is a major factor in the	105
taxpayer's decision to go forward with the project.	106

(2)(a) A taxpayer that chooses to begin the project prior to	107
receiving the determination of the authority may, upon submitting	108
the taxpayer's application to the authority, request that the	109
chief investment officer of the nonprofit corporation formed under	110
section 187.01 of the Revised Code and the director review the	111
taxpayer's application and recommend to the authority that the	112
taxpayer's application be considered. As soon as possible after	113
receiving such a request, the chief investment officer and the	114
director shall review the taxpayer's application and, if they	115
determine that the application warrants consideration by the	116
authority, make that recommendation to the authority not later	117
than six months after the application is received by the	118
authority.	119

(b) The authority shall consider any taxpayer's application	120
for which it receives a recommendation under division (C)(2)(a) of	121
this section. If the authority determines that the taxpayer does	122
not meet all of the criteria set forth in division (C)(1) of this	123
section, the authority and the development services agency shall	124
proceed in accordance with rules adopted by the director pursuant	125
to division (I) of this section.	126

(D) An agreement under this section shall include all of the	127
following:	128

(1) A detailed description of the project that is the subject	129
of the agreement;	130

(2)(a) The term of the tax credit, which, except as provided	131
in division (D)(2)(b) of this section, shall not exceed fifteen	132
years, and the first taxable year, or first calendar year that	133
includes a tax period, for which the credit may be claimed;	134

(b) If the tax credit is computed on the basis of home-based	135
employees, the term of the credit shall expire on or before the	136
last day of the taxable or calendar year ending before the	137
beginning of the seventh year after September 6, 2012, the	138
effective date of H.B. 327 of the 129th general assembly.	139

(3) A requirement that the taxpayer shall maintain operations	140
at the project location for at least the greater of seven years or	141
the term of the credit plus three years;	142

(4) The percentage, as determined by the tax credit	143
authority, of excess income tax revenue that will be allowed as	144
the amount of the credit for each taxable year or for each	145
calendar year that includes a tax period;	146

(5) The pay increase factor to be applied to the taxpayer's	147
baseline income tax revenue;	148

(6) A requirement that the taxpayer annually shall report to	149
the director of development services employment, tax withholding,	150
investment, the provision of health care benefits and tuition	151
reimbursement if required in the agreement, and other information	152
the director needs to perform the director's duties under this	153
section;	154

(7) A requirement that the director of development services	155
annually review the information reported under division (D)(6) of	156
this section and verify compliance with the agreement; if the	157
taxpayer is in compliance, a requirement that the director issue a	158
certificate to the taxpayer stating that the information has been	159
verified and identifying the amount of the credit that may be	160
claimed for the taxable or calendar year;	161

(8) A provision providing that the taxpayer may not relocate	162
a substantial number of employment positions from elsewhere in	163
this state to the project location unless the director of	164
development services determines that the legislative authority of	165
the county, township, or municipal corporation from which the	166
employment positions would be relocated has been notified by the	167
taxpayer of the relocation.	168

For purposes of this section, the movement of an employment	169
position from one political subdivision to another political	170
subdivision shall be considered a relocation of an employment	171
position unless the employment position in the first political	172
subdivision is replaced.	173

(9) If the tax credit is computed on the basis of home-based	174
employees, that the tax credit may not be claimed by the taxpayer	175
until the taxable year or tax period in which the taxpayer employs	176
at least two hundred employees more than the number of employees	177
the taxpayer employed on June 30, 2011.	178

(E) If a taxpayer fails to meet or comply with any condition	179
or requirement set forth in a tax credit agreement, the tax credit	180
authority may amend the agreement to reduce the percentage or term	181
of the tax credit. The reduction of the percentage or term may	182
take effect in the current taxable or calendar year.	183

(F) Projects that consist solely of point-of-final-purchase	184
retail facilities are not eligible for a tax credit under this	185
section. If a project consists of both point-of-final-purchase	186
retail facilities and nonretail facilities, only the portion of	187
the project consisting of the nonretail facilities is eligible for	188
a tax credit and only the excess income tax revenue from the	189
nonretail facilities shall be considered when computing the amount	190
of the tax credit. If a warehouse facility is part of a	191
point-of-final-purchase retail facility and supplies only that	192
facility, the warehouse facility is not eligible for a tax credit.	193
Catalog distribution centers are not considered	194
point-of-final-purchase retail facilities for the purposes of this	195
division, and are eligible for tax credits under this section.	196

(G) Financial statements and other information submitted to	197
the development services agency or the tax credit authority by an	198
applicant or recipient of a tax credit under this section, and any	199
information taken for any purpose from such statements or	200
information, are not public records subject to section 149.43 of	201
the Revised Code. However, the chairperson of the authority may	202
make use of the statements and other information for purposes of	203
issuing public reports or in connection with court proceedings	204
concerning tax credit agreements under this section. Upon the	205
request of the tax commissioner or, if the applicant or recipient	206
is an insurance company, upon the request of the superintendent of	207
insurance, the chairperson of the authority shall provide to the	208
commissioner or superintendent any statement or information	209
submitted by an applicant or recipient of a tax credit in	210
connection with the credit. The commissioner or superintendent	211
shall preserve the confidentiality of the statement or	212
information.	213

(H) A taxpayer claiming a credit under this section shall	214
submit to the tax commissioner or, if the taxpayer is an insurance	215
company, to the superintendent of insurance, a copy of the	216
director of development services' certificate of verification	217
under division (D)(7) of this section with the taxpayer's tax	218
report or return for the taxable year or for the calendar year	219
that includes the tax period. Failure to submit a copy of the	220
certificate with the report or return does not invalidate a claim	221
for a credit if the taxpayer submits a copy of the certificate to	222
the commissioner or superintendent within sixty days after the	223
commissioner or superintendent requests it.	224

(I) The director of development services, after consultation	225
with the tax commissioner and the superintendent of insurance and	226
in accordance with Chapter 119. of the Revised Code, shall adopt	227
rules necessary to implement this section, including rules that	228
establish a procedure to be followed by the tax credit authority	229
and the development services agency in the event the authority	230
considers a taxpayer's application for which it receives a	231
recommendation under division (C)(2)(a) of this section but does	232
not approve it. The rules may provide for recipients of tax	233
credits under this section to be charged fees to cover	234
administrative costs of the tax credit program. The fees collected	235
shall be credited to the business assistance fund created in	236
section 122.174 of the Revised Code. At the time the director	237
gives public notice under division (A) of section 119.03 of the	238
Revised Code of the adoption of the rules, the director shall	239
submit copies of the proposed rules to the chairpersons of the	240
standing committees on economic development in the senate and the	241
house of representatives.	242

(J) For the purposes of this section, a taxpayer may include	243
a partnership, a corporation that has made an election under	244
subchapter S of chapter one of subtitle A of the Internal Revenue	245
Code, or any other business entity through which income flows as a	246
distributive share to its owners. A partnership, S-corporation, or	247
other such business entity may elect to pass the credit received	248
under this section through to the persons to whom the income or	249
profit of the partnership, S-corporation, or other entity is	250
distributed. The election shall be made on the annual report	251
required under division (D)(6) of this section. The election	252
applies to and is irrevocable for the credit for which the report	253
is submitted. If the election is made, the credit shall be	254
apportioned among those persons in the same proportions as those	255
in which the income or profit is distributed.	256

(K) If the director of development services determines that a	257
taxpayer who has received a credit under this section is not	258
complying with the requirement under division (D)(3) of this	259
section, the director shall notify the tax credit authority of the	260
noncompliance. After receiving such a notice, and after giving the	261
taxpayer an opportunity to explain the noncompliance, the tax	262
credit authority may require the taxpayer to refund to this state	263
a portion of the credit in accordance with the following:	264

(1) If the taxpayer maintained operations at the project	265
location for a period less than or equal to the term of the	266
credit, an amount not exceeding one hundred per cent of the sum of	267
any credits allowed and received under this section;	268

(2) If the taxpayer maintained operations at the project	269
location for a period longer than the term of the credit, but less	270
than the greater of seven years or the term of the credit plus	271
three years, an amount not exceeding seventy-five per cent of the	272
sum of any credits allowed and received under this section.	273

In determining the portion of the tax credit to be refunded	274
to this state, the tax credit authority shall consider the effect	275
of market conditions on the taxpayer's project and whether the	276
taxpayer continues to maintain other operations in this state.	277
After making the determination, the authority shall certify the	278
amount to be refunded to the tax commissioner or superintendent of	279
insurance, as appropriate. If the amount is certified to the	280
commissioner, the commissioner shall make an assessment for that	281
amount against the taxpayer under Chapter 5726., 5733., 5736.,	282
5747., or 5751. of the Revised Code. If the amount is certified to	283
the superintendent, the superintendent shall make an assessment	284
for that amount against the taxpayer under Chapter 5725. or 5729.	285
of the Revised Code. The time limitations on assessments under	286
those chapters do not apply to an assessment under this division,	287
but the commissioner or superintendent, as appropriate, shall make	288
the assessment within one year after the date the authority	289
certifies to the commissioner or superintendent the amount to be	290
refunded.	291

(L) On or before the first day of August each year, the	292
director of development services shall submit a report to the	293
governor, the president of the senate, and the speaker of the	294
house of representatives on the tax credit program under this	295
section. The report shall include information on the number of	296
agreements that were entered into under this section during the	297
preceding calendar year, a description of the project that is the	298
subject of each such agreement, and an update on the status of	299
projects under agreements entered into before the preceding	300
calendar year.	301

(M) There is hereby created the tax credit authority, which	302
consists of the director of development services and four other	303
members appointed as follows: the governor, the president of the	304
senate, and the speaker of the house of representatives each shall	305
appoint one member who shall be a specialist in economic	306
development; the governor also shall appoint a member who is a	307
specialist in taxation. Of the initial appointees, the members	308
appointed by the governor shall serve a term of two years; the	309
members appointed by the president of the senate and the speaker	310
of the house of representatives shall serve a term of four years.	311
Thereafter, terms of office shall be for four years. Initial	312
appointments to the authority shall be made within thirty days	313
after January 13, 1993. Each member shall serve on the authority	314
until the end of the term for which the member was appointed.	315
Vacancies shall be filled in the same manner provided for original	316
appointments. Any member appointed to fill a vacancy occurring	317
prior to the expiration of the term for which the member's	318
predecessor was appointed shall hold office for the remainder of	319
that term. Members may be reappointed to the authority. Members of	320
the authority shall receive their necessary and actual expenses	321
while engaged in the business of the authority. The director of	322
development services shall serve as chairperson of the authority,	323
and the members annually shall elect a vice-chairperson from among	324
themselves. Three members of the authority constitute a quorum to	325
transact and vote on the business of the authority. The majority	326
vote of the membership of the authority is necessary to approve	327
any such business, including the election of the vice-chairperson.	328

The director of development services may appoint a	329
professional employee of the development services agency to serve	330
as the director's substitute at a meeting of the authority. The	331
director shall make the appointment in writing. In the absence of	332
the director from a meeting of the authority, the appointed	333
substitute shall serve as chairperson. In the absence of both the	334
director and the director's substitute from a meeting, the	335
vice-chairperson shall serve as chairperson.	336

(N) For purposes of the credits granted by this section	337
against the taxes imposed under sections 5725.18 and 5729.03 of	338
the Revised Code, "taxable year" means the period covered by the	339
taxpayer's annual statement to the superintendent of insurance.	340

(O) On or before the first day of March of each of the five	341
calendar years beginning with 2014, each taxpayer subject to an	342
agreement with the tax credit authority under this section on the	343
basis of home-based employees shall report the number of	344
home-based employees and other employees employed by the taxpayer	345
in this state to the development services agency.	346

(P) On or before the first day of January of 2019, the	347
director of development services shall submit a report to the	348
governor, the president of the senate, and the speaker of the	349
house of representatives on the effect of agreements entered into	350
under this section in which the taxpayer included home-based	351
employees in the computation of income tax revenue. The report	352
shall include information on the number of such agreements that	353
were entered into in the preceding six years, a description of the	354
projects that were the subjects of such agreements, and an	355
analysis of nationwide home-based employment trends, including the	356
number of home-based jobs created from July 1, 2011, through June	357
30, 2017, and a description of any home-based employment tax	358
incentives provided by other states during that time.	359

(Q) The director of development services may require any	360
agreement entered into under this section for a tax credit	361
computed on the basis of home-based employees to contain a	362
provision that the taxpayer makes available health care benefits	363
and tuition reimbursement to all employees.	364

Sec. 122.171. (A) As used in this section:

365

(1) "Capital investment project" means a plan of investment	366
at a project site for the acquisition, construction, renovation,	367
or repair of buildings, machinery, or equipment, or for	368
capitalized costs of basic research and new product development	369
determined in accordance with generally accepted accounting	370
principles, but does not include any of the following:	371

(a) Payments made for the acquisition of personal property	372
through operating leases;	373

(b) Project costs paid before January 1, 2002;

374

(c) Payments made to a related member as defined in section	375
5733.042 of the Revised Code or to a consolidated elected taxpayer	376
or a combined taxpayer as defined in section 5751.01 of the	377
Revised Code.	378

(2) "Eligible business" means a taxpayer and its related	379
members with Ohio operations satisfying all of the following:	380

(a) The taxpayer employs at least five hundred full-time	381
equivalent employees or has an annual payroll of at least	382
thirty-five million dollars at the time the tax credit authority	383
grants the tax credit under this section;	384

(b) The taxpayer makes or causes to be made payments for the	385
capital investment project of one of the following:	386

(i) If the taxpayer is engaged at the project site primarily	387
as a manufacturer, at least fifty million dollars in the aggregate	388
at the project site during a period of three consecutive calendar	389
years, including the calendar year that includes a day of the	390
taxpayer's taxable year or tax period with respect to which the	391
credit is granted;	392

(ii) If the taxpayer is engaged at the project site primarily	393
in significant corporate administrative functions, as defined by	394
the director of development services by rule, at least twenty	395
million dollars in the aggregate at the project site during a	396
period of three consecutive calendar years including the calendar	397
year that includes a day of the taxpayer's taxable year or tax	398
period with respect to which the credit is granted;	399

(iii) If the taxpayer is applying to enter into an agreement	400
for a tax credit authorized under division (B)(3) of this section,	401
at least five million dollars in the aggregate at the project site	402
during a period of three consecutive calendar years, including the	403
calendar year that includes a day of the taxpayer's taxable year	404
or tax period with respect to which the credit is granted.	405

(c) The taxpayer had a capital investment project reviewed	406
and approved by the tax credit authority as provided in divisions	407
(C), (D), and (E) of this section.	408

(3) "Full-time equivalent employees" means the quotient	409
obtained by dividing the total number of hours for which employees	410
were compensated for employment in the project by two thousand	411
eighty. "Full-time equivalent employees" shall exclude hours that	412
are counted for a credit under section 122.17 of the Revised Code.	413

(4) "Income tax revenue" means the total amount withheld	414
under section 5747.06 of the Revised Code by the taxpayer during	415
the taxable year, or during the calendar year that includes the	416
tax period, from the compensation of all employees employed in the	417
project whose hours of compensation are included in calculating	418
the number of full-time equivalent employees.	419

(5) "Manufacturer" has the same meaning as in section	420
5739.011 of the Revised Code.	421

(6) "Project site" means an integrated complex of facilities	422
in this state, as specified by the tax credit authority under this	423
section, within a fifteen-mile radius where a taxpayer is	424
primarily operating as an eligible business.	425

(7) "Related member" has the same meaning as in section	426
5733.042 of the Revised Code as that section existed on the	427
effective date of its amendment by Am. Sub. H.B. 215 of the 122nd	428
general assembly, September 29, 1997.	429

(8) "Taxable year" includes, in the case of a domestic or	430
foreign insurance company, the calendar year ending on the	431
thirty-first day of December preceding the day the superintendent	432
of insurance is required to certify to the treasurer of state	433
under section 5725.20 or 5729.05 of the Revised Code the amount of	434
taxes due from insurance companies.	435

(B) The tax credit authority created under section 122.17 of	436
the Revised Code may grant tax credits under this section for the	437
purpose of fostering job retention in this state. Upon application	438
by an eligible business and upon consideration of the	439
recommendation of the director of budget and management, tax	440
commissioner, the superintendent of insurance in the case of an	441
insurance company, and director of development services under	442
division (C) of this section, the tax credit authority may grant	443
the following credits against the tax imposed by section 5725.18,	444
5726.02, 5729.03, 5733.06, 5736.02, 5747.02, or 5751.02 of the	445
Revised Code:	446

(1) A nonrefundable credit to an eligible business;

447

(2) A refundable credit to an eligible business meeting the	448
following conditions, provided that the director of budget and	449
management, tax commissioner, superintendent of insurance in the	450
case of an insurance company, and director of development services	451
have recommended the granting of the credit to the tax credit	452
authority before July 1, 2011:	453

(a) The business retains at least one thousand full-time	454
equivalent employees at the project site.	455

(b) The business makes or causes to be made payments for a	456
capital investment project of at least twenty-five million dollars	457
in the aggregate at the project site during a period of three	458
consecutive calendar years, including the calendar year that	459
includes a day of the business' taxable year or tax period with	460
respect to which the credit is granted.	461

(c) In 2010, the business received a written offer of	462
financial incentives from another state of the United States that	463
the director determines to be sufficient inducement for the	464
business to relocate the business' operations from this state to	465
that state.	466

(3) A refundable credit to an eligible business with a total	467
annual payroll of at least twenty million dollars, provided that	468
the tax credit authority grants the tax credit on or after July 1,	469
2011, and before January 1, 2014.	470

The credits authorized in divisions (B)(1), (2), and (3) of	471
this section may be granted for a period up to fifteen taxable	472
years or, in the case of the tax levied by section 5736.02 or	473
5751.02 of the Revised Code, for a period of up to fifteen	474
calendar years. The credit amount for a taxable year or a calendar	475
year that includes the tax period for which a credit may be	476
claimed equals the income tax revenue for that year multiplied by	477
the percentage specified in the agreement with the tax credit	478
authority. The percentage may not exceed seventy-five per cent.	479
The credit shall be claimed in the order required under section	480
5725.98, 5726.98, 5729.98, 5733.98, 5747.98, or 5751.98 of the	481
Revised Code. In determining the percentage and term of the	482
credit, the tax credit authority shall consider both the number of	483
full-time equivalent employees and the value of the capital	484
investment project. The credit amount may not be based on the	485
income tax revenue for a calendar year before the calendar year in	486
which the tax credit authority specifies the tax credit is to	487
begin, and the credit shall be claimed only for the taxable years	488
or tax periods specified in the eligible business' agreement with	489
the tax credit authority. In no event shall the credit be claimed	490
for a taxable year or tax period terminating before the date	491
specified in the agreement. Any credit granted under this section	492
against the tax imposed by section 5733.06 or 5747.02 of the	493
Revised Code, to the extent not fully utilized against such tax	494
for taxable years ending prior to 2008, shall automatically be	495
converted without any action taken by the tax credit authority to	496
a credit against the tax levied under Chapter 5751. of the Revised	497
Code for tax periods beginning on or after July 1, 2008, provided	498
that the person to whom the credit was granted is subject to such	499
tax. The converted credit shall apply to those calendar years in	500
which the remaining taxable years specified in the agreement end.	501

If a nonrefundable credit allowed under division (B)(1) of	502
this section for a taxable year or tax period exceeds the	503
taxpayer's tax liability for that year or period, the excess may	504
be carried forward for the three succeeding taxable or calendar	505
years, but the amount of any excess credit allowed in any taxable	506
year or tax period shall be deducted from the balance carried	507
forward to the succeeding year or period.	508

(C) A taxpayer that proposes a capital investment project to	509
retain jobs in this state may apply to the tax credit authority to	510
enter into an agreement for a tax credit under this section. The	511
director of development services shall prescribe the form of the	512
application. After receipt of an application, the authority shall	513
forward copies of the application to the director of budget and	514
management, the tax commissioner, the superintendent of insurance	515
in the case of an insurance company, and the director of	516
development services, each of whom shall review the application to	517
determine the economic impact the proposed project would have on	518
the state and the affected political subdivisions and shall submit	519
a summary of their determinations and recommendations to the	520
authority.	521

(D) Upon review and consideration of the determinations and	522
recommendations described in division (C) of this section, the tax	523
credit authority may enter into an agreement with the taxpayer for	524
a credit under this section if the authority determines all of the	525
following:	526

(1) The taxpayer's capital investment project will result in	527
the retention of employment in this state.	528

(2) The taxpayer is economically sound and has the ability to	529
complete the proposed capital investment project.	530

(3) The taxpayer intends to and has the ability to maintain	531
operations at the project site for at least the greater of (a) the	532
term of the credit plus three years, or (b) seven years.	533

(4) Receiving the credit is a major factor in the taxpayer's	534
decision to begin, continue with, or complete the project.	535

(5) If the taxpayer is applying to enter into an agreement	536
for a tax credit authorized under division (B)(3) of this section,	537
the taxpayer's capital investment project will be located in the	538
political subdivision in which the taxpayer maintains its	539
principal place of business or maintains a unit or division with	540
at least four thousand two hundred employees at the project site.	541

(E) An agreement under this section shall include all of the	542
following:	543

(1) A detailed description of the project that is the subject	544
of the agreement, including the amount of the investment, the	545
period over which the investment has been or is being made, the	546
number of full-time equivalent employees at the project site, and	547
the anticipated income tax revenue to be generated.	548

(2) The term of the credit, the percentage of the tax credit,	549
the maximum annual value of tax credits that may be allowed each	550
year, and the first year for which the credit may be claimed.	551

(3) A requirement that the taxpayer maintain operations at	552
the project site for at least the greater of (a) the term of the	553
credit plus three years, or (b) seven years.	554

(4)(a) In the case of a credit granted under division (B)(1)	555
of this section, a requirement that the taxpayer retain at least	556
five hundred full-time equivalent employees at the project site	557
and within this state for the entire term of the credit, or a	558
requirement that the taxpayer maintain an annual payroll of at	559
least thirty-five million dollars for the entire term of the	560
credit;	561

(b) In the case of a credit granted under division (B)(2) of	562
this section, a requirement that the taxpayer retain at least one	563
thousand full-time equivalent employees at the project site and	564
within this state for the entire term of the credit;	565

(c) In the case of a credit granted under division (B)(3) of	566
this section, either of the following:	567

(i) A requirement that the taxpayer retain at least five	568
hundred full-time equivalent employees at the project site and	569
within this state for the entire term of the credit and a	570
requirement that the taxpayer maintain an annual payroll of at	571
least twenty million dollars for the entire term of the credit;	572

(ii) A requirement that the taxpayer maintain an annual	573
payroll of at least thirty-five million dollars for the entire	574
term of the credit.	575

(5) A requirement that the taxpayer annually report to the	576
director of development services employment, tax withholding,	577
capital investment, and other information the director needs to	578
perform the director's duties under this section.	579

(6) A requirement that the director of development services	580
annually review the annual reports of the taxpayer to verify the	581
information reported under division (E)(5) of this section and	582
compliance with the agreement. Upon verification, the director	583
shall issue a certificate to the taxpayer stating that the	584
information has been verified and identifying the amount of the	585
credit for the taxable year or calendar year that includes the tax	586
period. In determining the number of full-time equivalent	587
employees, no position shall be counted that is filled by an	588
employee who is included in the calculation of a tax credit under	589
section 122.17 of the Revised Code.	590

(7) A provision providing that the taxpayer may not relocate	591
a substantial number of employment positions from elsewhere in	592
this state to the project site unless the director of development	593
services determines that the taxpayer notified the legislative	594
authority of the county, township, or municipal corporation from	595
which the employment positions would be relocated.	596

For purposes of this section, the movement of an employment	597
position from one political subdivision to another political	598
subdivision shall be considered a relocation of an employment	599
position unless the movement is confined to the project site. The	600
transfer of an employment position from one political subdivision	601
to another political subdivision shall not be considered a	602
relocation of an employment position if the employment position in	603
the first political subdivision is replaced by another employment	604
position.	605

(8) A waiver by the taxpayer of any limitations periods	606
relating to assessments or adjustments resulting from the	607
taxpayer's failure to comply with the agreement.	608

(F) If a taxpayer fails to meet or comply with any condition	609
or requirement set forth in a tax credit agreement, the tax credit	610
authority may amend the agreement to reduce the percentage or term	611
of the credit. The reduction of the percentage or term may take	612
effect in the current taxable or calendar year.	613

(G) Financial statements and other information submitted to	614
the department of development services or the tax credit authority	615
by an applicant for or recipient of a tax credit under this	616
section, and any information taken for any purpose from such	617
statements or information, are not public records subject to	618
section 149.43 of the Revised Code. However, the chairperson of	619
the authority may make use of the statements and other information	620
for purposes of issuing public reports or in connection with court	621
proceedings concerning tax credit agreements under this section.	622
Upon the request of the tax commissioner, or the superintendent of	623
insurance in the case of an insurance company, the chairperson of	624
the authority shall provide to the commissioner or superintendent	625
any statement or other information submitted by an applicant for	626
or recipient of a tax credit in connection with the credit. The	627
commissioner or superintendent shall preserve the confidentiality	628
of the statement or other information.	629

(H) A taxpayer claiming a tax credit under this section shall	630
submit to the tax commissioner or, in the case of an insurance	631
company, to the superintendent of insurance, a copy of the	632
director of development services' certificate of verification	633
under division (E)(6) of this section with the taxpayer's tax	634
report or return for the taxable year or for the calendar year	635
that includes the tax period. Failure to submit a copy of the	636
certificate with the report or return does not invalidate a claim	637
for a credit if the taxpayer submits a copy of the certificate to	638
the commissioner or superintendent within sixty days after the	639
commissioner or superintendent requests it.	640

(I) For the purposes of this section, a taxpayer may include	641
a partnership, a corporation that has made an election under	642
subchapter S of chapter one of subtitle A of the Internal Revenue	643
Code, or any other business entity through which income flows as a	644
distributive share to its owners. A partnership, S-corporation, or	645
other such business entity may elect to pass the credit received	646
under this section through to the persons to whom the income or	647
profit of the partnership, S-corporation, or other entity is	648
distributed. The election shall be made on the annual report	649
required under division (E)(5) of this section. The election	650
applies to and is irrevocable for the credit for which the report	651
is submitted. If the election is made, the credit shall be	652
apportioned among those persons in the same proportions as those	653
in which the income or profit is distributed.	654

(J) If the director of development services determines that a	655
taxpayer that received a certificate under division (E)(6) of this	656
section is not complying with the requirement under division	657
(E)(3) of this section, the director shall notify the tax credit	658
authority of the noncompliance. After receiving such a notice, and	659
after giving the taxpayer an opportunity to explain the	660
noncompliance, the authority may terminate the agreement and	661
require the taxpayer, or any related member or members that	662
claimed the tax credit under division (N) of this section, to	663
refund to the state all or a portion of the credit claimed in	664
previous years, as follows:	665

(1) If the taxpayer maintained operations at the project site	666
for less than or equal to the term of the credit, an amount not to	667
exceed one hundred per cent of the sum of any tax credits allowed	668
and received under this section.	669

(2) If the taxpayer maintained operations at the project site	670
longer than the term of the credit, but less than the greater of	671
(a) the term of the credit plus three years, or (b) seven years,	672
the amount required to be refunded shall not exceed seventy-five	673
per cent of the sum of any tax credits allowed and received under	674
this section.	675

In determining the portion of the credit to be refunded to	676
this state, the authority shall consider the effect of market	677
conditions on the taxpayer's project and whether the taxpayer	678
continues to maintain other operations in this state. After making	679
the determination, the authority shall certify the amount to be	680
refunded to the tax commissioner or the superintendent of	681
insurance. If the taxpayer, or any related member or members who	682
claimed the tax credit under division (N) of this section, is not	683
an insurance company, the commissioner shall make an assessment	684
for that amount against the taxpayer under Chapter 5726., 5733.,	685
5736., 5747., or 5751. of the Revised Code. If the taxpayer, or	686
any related member or members that claimed the tax credit under	687
division (N) of this section, is an insurance company, the	688
superintendent of insurance shall make an assessment under section	689
5725.222 or 5729.102 of the Revised Code. The time limitations on	690
assessments under those chapters and sections do not apply to an	691
assessment under this division, but the commissioner or	692
superintendent shall make the assessment within one year after the	693
date the authority certifies to the commissioner or superintendent	694
the amount to be refunded.	695

(K) The director of development services, after consultation	696
with the tax commissioner and the superintendent of insurance and	697
in accordance with Chapter 119. of the Revised Code, shall adopt	698
rules necessary to implement this section. The rules may provide	699
for recipients of tax credits under this section to be charged	700
fees to cover administrative costs of the tax credit program. The	701
fees collected shall be credited to the business assistance fund	702
created in section 122.174 of the Revised Code. At the time the	703
director gives public notice under division (A) of section 119.03	704
of the Revised Code of the adoption of the rules, the director	705
shall submit copies of the proposed rules to the chairpersons of	706
the standing committees on economic development in the senate and	707
the house of representatives.	708

(L) On or before the first day of August of each year, the	709
director of development services shall submit a report to the	710
governor, the president of the senate, and the speaker of the	711
house of representatives on the tax credit program under this	712
section. The report shall include information on the number of	713
agreements that were entered into under this section during the	714
preceding calendar year, a description of the project that is the	715
subject of each such agreement, and an update on the status of	716
projects under agreements entered into before the preceding	717
calendar year.	718

(M)(1) The aggregate amount of tax credits issued under	719
division (B)(1) of this section during any calendar year for	720
capital investment projects reviewed and approved by the tax	721
credit authority may not exceed the following amounts:	722

(a) For 2010, thirteen million dollars;

723

(b) For 2011 through 2023, the amount of the limit for the	724
preceding calendar year plus thirteen million dollars;	725

(c) For 2024 and each year thereafter, one hundred	726
ninety-five million dollars.	727

(2) The aggregate amount of tax credits authorized under	728
divisions (B)(2) and (3) of this section and allowed to be claimed	729
by taxpayers in any calendar year for capital improvement projects	730
reviewed and approved by the tax credit authority in 2011, 2012,	731
and 2013 combined shall not exceed twenty-five million dollars. An	732
amount equal to the aggregate amount of credits first authorized	733
in calendar year 2011, 2012, and 2013 may be claimed over the	734
ensuing period up to fifteen years, subject to the terms of	735
individual tax credit agreements.	736

The limitations in division (M) of this section do not apply	737
to credits for capital investment projects approved by the tax	738
credit authority before July 1, 2009.	739

(N) This division applies only to an eligible business that	740
is part of an affiliated group that includes a diversified savings	741
and loan holding company or a grandfathered unitary savings and	742
loan holding company, as those terms are defined in section	743
5726.01 of the Revised Code. Notwithstanding any contrary	744
provision of the agreement between such an eligible business and	745
the tax credit authority, any credit granted under this section	746
against the tax imposed by section 5725.18, 5729.03, 5733.06,	747
5747.02, or 5751.02 of the Revised Code to the eligible business,	748
at the election of the eligible business and without any action by	749
the tax credit authority, may be shared with any member or members	750
of the affiliated group that includes the eligible business, which	751
member or members may claim the credit against the taxes imposed	752
by section 5725.18, 5726.02, 5729.03, 5733.06, 5747.02, or 5751.02	753
of the Revised Code. Credits shall be claimed by the eligible	754
business in sequential order, as applicable, first claiming the	755
credits to the fullest extent possible against the tax that the	756
certificate holder is subject to, then against the tax imposed by,	757
sequentially, section 5729.03, 5725.18, 5747.02, 5751.02, and	758
lastly 5726.02 of the Revised Code. The credits may be allocated	759
among the members of the affiliated group in such manner as the	760
eligible business elects, but subject to the sequential order	761
required under this division. This division applies to credits	762
granted before, on, or after March 27, 2013, the effective date of	763
H.B. 510 of the 129th general assembly. Credits granted before	764
that effective date that are shared and allocated under this	765
division may be claimed in those calendar years in which the	766
remaining taxable years specified in the agreement end.	767

As used in this division, "affiliated group" means a group of	768
two or more persons with fifty per cent or greater of the value of	769
each person's ownership interests owned or controlled directly,	770
indirectly, or constructively through related interests by common	771
owners during all or any portion of the taxable year, and the	772
common owners. "Affiliated group" includes, but is not limited to,	773
any person eligible to be included in a consolidated elected	774
taxpayer group under section 5751.011 of the Revised Code or a	775
combined taxpayer group under section 5751.012 of the Revised	776
Code.	777

Sec. 122.86.  (A) As used in this section and section 5747.81	778
of the Revised Code:	779

(1) "Small business enterprise" means a corporation,	780
pass-through entity, or other person satisfying all of the	781
following:	782

(a) At the time of a qualifying investment, the enterprise	783
meets all of the following requirements:	784

(i) Has no outstanding tax or other liabilities owed to the	785
state;	786

(ii) Is in good standing with the secretary of state, if the	787
enterprise is required to be registered with the secretary;	788

(iii) Is current with any court-ordered payments;

789

(iv) Is not engaged in any illegal activity.

790

(b) At the time of a qualifying investment, the enterprise's	791
assets according to generally accepted accounting principles do	792
not exceed fifty million dollars, or its annual sales do not	793
exceed ten million dollars. When making this determination, the	794
assets and annual sales of all of the enterprise's related or	795
affiliated entities shall be included in the calculation.	796

(c) The enterprise employs at least fifty full-time	797
equivalent employees in this state for whom the enterprise is	798
required to withhold income tax under section 5747.06 of the	799
Revised Code, or more than one-half the enterprise's total number	800
of full-time equivalent employees employed anywhere in the United	801
States are employed in this state and are subject to that	802
withholding requirement.	803

(d) The enterprise, within six months after an eligible	804
investor's qualifying investment is made, invests in or incurs	805
cost for one or more of the following in an amount at least equal	806
to the amount of the qualifying investment:	807

(i) Tangible personal property, other than motor vehicles	808
operated on public roads and highways, used in business and	809
physically located in this state from the time of its acquisition	810
by the enterprise until the end of the investor's holding period;	811

(ii) Motor vehicles operated on public roads and highways if,	812
from the time of acquisition by the enterprise until the end of	813
the investor's holding period, the motor vehicles are purchased in	814
this state, registered in this state under Chapter 4503. of the	815
Revised Code, are used primarily for business purposes, and are	816
necessary for the operation of the enterprise's business;	817

(iii) Real property located in this state that is used in	818
business from the time of its acquisition by the enterprise until	819
the end of the holding period;	820

(iv) Intangible personal property, including patents,	821
copyrights, trademarks, service marks, or licenses used in	822
business primarily in this state from the time of its acquisition	823
by the enterprise until the end of the holding period;	824

(v) Compensation for new employees of the enterprise for whom	825
the enterprise is required to withhold income tax under section	826
5747.06 of the Revised Code, not including increased compensation	827
for owners, officers, or managers of the enterprise. For this	828
purpose compensation for new employees includes compensation for	829
newly hired or retained employees.	830

(2) "Qualifying investment" means an investment of money made	831
on or after July 1, 2011, to acquire capital stock or other equity	832
interest in a small business enterprise. "Qualifying investment"	833
does not include either of the following:	834

(a) Any investment of money an eligible investor derives,	835
directly or indirectly, from a grant or loan from the federal	836
government or the state or a political subdivision, including the	837
third frontier program under Chapter 184. of the Revised Code;	838

(b) Any investment of money which is the basis of a tax	839
credit granted under any other section of the Revised Code.	840

(3) "Eligible investor" means an individual, estate, or trust	841
subject to the tax imposed by section 5747.02 of the Revised Code,	842
or a pass-through entity in which such an individual, estate, or	843
trust holds a direct or indirect ownership or other equity	844
interest. To qualify as an eligible investor, the individual,	845
estate, trust, or pass-through entity shall not owe any	846
outstanding tax or other liability to the state at the time of a	847
qualifying investment.	848

(4) "Holding period" means:

849

(a) For qualifying investments made on or after July 1, 2011,	850
but before July 1, 2013, the two-year period beginning on the day	851
the investment was made;	852

(b) For qualifying investments made on or after July 1, 2013,	853
the five-year period beginning on the day the investment wasa	854
qualifying investment is made.	855

(5) "Pass-through entity" has the same meaning as in section	856
5733.04 of the Revised Code.	857

(B) Any eligible investor that makes a qualifying investment	858
in a small business enterprise on or after July 1, 2011, may apply	859
to the director of development services to obtain a small business	860
investment certificate from the director. Alternatively, a small	861
business enterprise may apply on behalf of eligible investors to	862
obtain the certificates for those investors. The director, in	863
consultation with the tax commissioner, shall prescribe the form	864
or manner in which an applicant shall apply for the certificate,	865
devise the form of the certificate, and prescribe any records or	866
other information an applicant shall furnish with the application	867
to evidence the qualifying investment. The applicant shall state	868
the amount of the intended investment. The applicant shall pay an	869
application fee equal to the greater of one-tenth of one per cent	870
of the amount of the intended investment or one hundred dollars.	871

A small business investment certificate entitles the	872
certificate holder to receive a tax credit under section 5747.81	873
of the Revised Code if the certificate holder qualifies for the	874
credit as otherwise provided in this section. If the certificate	875
holder is a pass-through entity, the certificate entitles the	876
entity's equity owners to receive their distributive or	877
proportionate shares of the credit. In any fiscal biennium, an	878
eligible investor may not apply for small business investment	879
certificates representing intended investment amounts in excess of	880
ten million dollars. Such certificates are not transferable.	881

The director of development services may reserve small	882
business investment certificates to qualifying applicants in the	883
order in which the director receives applications, but may issue	884
the certificates as the applications are completed. An application	885
is completed when the director has validated that an eligible	886
investor has made a qualified investment and the small business	887
enterprise has made the appropriate reinvestment of the qualified	888
investment pursuant to the requirements of division (A)(1)(d) of	889
this section. To qualify for a certificate, an eligible investor	890
must satisfy both of the following, subject to the limitation on	891
the amount of qualifying investments for which certificates may be	892
issued under division (C) of this section:	893

(1) The eligible investor makes a qualifying investment on or	894
after July 1, 2011.	895

(2) The eligible investor pledges not to sell or otherwise	896
dispose of the qualifying investment before the conclusion of the	897
applicable holding period.	898

(C)(1) The amount of any eligible investor's qualifying	899
investments for which small business investment certificates may	900
be issued for a fiscal biennium shall not exceed ten million	901
dollars.	902

(2) The director of development services shall not issue a	903
small business investment certificate to an eligible investor	904
representing an amount of qualifying investment in excess of the	905
amount of the intended investment indicated on the investor's	906
application for the certificate.	907

(3) The director of development services shall not issue	908
small business investment certificates in a total amount that	909
would cause the tax credits claimed in any fiscal biennium to	910
exceed one hundred million dollars.	911

(4) The director of development services may issue a small	912
business investment certificate only if both of the following	913
apply at the time of issuance:	914

(a) The small business enterprise meets all the requirements	915
listed in divisions (A)(1)(a)(i) to (iv) of this section;	916

(b) The eligible investor does not owe any outstanding tax or	917
other liability to the state.	918

(D) Before the end of the applicable holding period of a	919
qualifying investment, each enterprise in which a qualifying	920
investment was made for which a small business investment	921
certificate has been issued, upon the request of the director of	922
development services, shall provide to the director records or	923
other evidence satisfactory to the director that the enterprise is	924
a small business enterprise for the purposes of this section. Each	925
enterprise shall also provide annually to the director records or	926
evidence regarding the number of jobs created or retained in the	927
state. No credit may be claimed under this section and section	928
5747.81 of the Revised Code if the director finds that an	929
enterprise is not a small business enterprise for the purposes of	930
this section. The director shall compile and maintain a register	931
of small business enterprises qualifying under this section and	932
shall certify the register to the tax commissioner. The director	933
shall also compile and maintain a record of the number of jobs	934
created or retained as a result of qualifying investments made	935
pursuant to this section.	936

(E) After the conclusion of the applicable holding period for	937
a qualifying investment, a person to whom a small business	938
investment certificate has been issued under this section may	939
claim a credit as provided under section 5747.81 of the Revised	940
Code.	941

(F) The director of development services, in consultation	942
with the tax commissioner, may adopt rules for the administration	943
of this section, including rules governing the following:	944

(1) Documents, records, or other information eligible	945
investors shall provide to the director;	946

(2) Any information a small business enterprise shall provide	947
for the purposes of this section and section 5747.81 of the	948
Revised Code;	949

(3) Determination of the number of full-time equivalent	950
employees of a small business enterprise;	951

(4) Verification of a small business enterprise's investment	952
in tangible personal property and intangible personal property	953
under division (A)(1)(d) of this section, including when such	954
investments have been made and where the property is used in	955
business;	956

(5) Circumstances under which small business enterprises or	957
eligible investors may be subverting the purposes of this section	958
and section 5747.81 of the Revised Code.	959

There is hereby created in the state treasury the InvestOhio	960
support fund. The fund shall consist of the fees paid under	961
division (B) of this section and shall be used by the development	962
services agency to pay the costs of administering the small	963
business investment certificate program established under this	964
section.	965

Sec. 166.21. (A) The director of development services, with	966
the approval of the controlling board and subject to other	967
applicable provisions of this chapter, may lend moneys in the	968
research and development loan fund to persons for the purpose of	969
paying allowable costs of eligible research and development	970
projects, if the director determines that all of the following	971
conditions are met:	972

(1) The project is an eligible research and development	973
project and is economically sound;	974

(2) The amount to be lent from the research and development	975
loan fund will not exceed seventy-five per cent of the total costs	976
of the eligible research and development project;	977

(3) The repayment of the loan from the research and	978
development loan fund will be secured by a mortgage, assignment,	979
pledge, lien provided for under section 9.661 of the Revised Code,	980
or other interest in property or other assets of the borrower, at	981
such level of priority and value as the director considers	982
necessary, provided that, in making such a determination, the	983
director shall take into account the value of any rights granted	984
by the borrower to the director to control the use of any assets	985
of the borrower under the circumstances described in the loan	986
documents.	987

(B) The determinations of the director under division (A) of	988
this section shall be conclusive for purposes of the validity of a	989
loan commitment evidenced by a loan agreement signed by the	990
director.	991

(C) Fees, charges, rates of interest, times of payment of	992
interest and principal, and other terms and conditions of, and	993
security for, loans made from the research and development loan	994
fund shall be such as the director determines to be appropriate	995
and in furtherance of the purpose for which the loans are made.	996
The moneys used in making loans shall be disbursed from the fund	997
upon order of the director. Unless otherwise specified in any	998
indenture or other instrument securing obligations under division	999
(D) of section 166.08 of the Revised Code, any payments of	1000
principal and interest from loans made from the fund shall be paid	1001
to the fund and used for the purpose of making loans under this	1002
section.	1003

(D)(1) As used in this division, "qualified research and	1004
development loan payments" means payments of principal and	1005
interest on a loan made from the research and development loan	1006
fund.	1007

(2) Each year, the director may, upon request, issue a	1008
certificate to a borrower of moneys from the research and	1009
development loan fund indicating the amount of the qualified	1010
research and development loan payments made by or on behalf of the	1011
borrower during the calendar year immediately preceding the tax	1012
year, as defined in section 5733.04 of the Revised Code, or	1013
taxable year, as defined in section 5747.01 of the Revised Code,	1014
for which the certificate is issued. In addition to indicating the	1015
amount of qualified research and development loan payments, the	1016
certificate shall include a determination of the director that as	1017
of the thirty-first day of December of the calendar year for which	1018
the certificate is issued, the borrower is not in default under	1019
the loan agreement, lease, or other instrument governing repayment	1020
of the loan, including compliance with the job creation and	1021
retention commitments that are part of the qualified research and	1022
development project. If the director determines that a borrower is	1023
in default under the loan agreement, lease, or other instrument	1024
governing repayment of the loan, the director may reduce the	1025
amount, percentage, or term of the credit allowed under section	1026
5733.352, 5747.331, or 5751.52 of the Revised Code with respect to	1027
the certificate issued to the borrower. The director shall not	1028
issue a certificate in an amount that exceeds one hundred fifty	1029
thousand dollars.	1030

(E) The director may take actions necessary or appropriate to	1031
collect or otherwise deal with any loan made under this section.	1032

(F) The director may fix service charges for the making of a	1033
loan. The charges shall be payable at such times and place and in	1034
such amounts and manner as may be prescribed by the director.	1035

(G)(1) There shall be credited to the research and	1036
development loan fund moneys received by this state from the	1037
repayment of loans, including interest thereon, made from the	1038
fund, and moneys received from the sale, lease, or other	1039
disposition of property acquired or constructed with moneys in the	1040
fund derived from the proceeds of the sale of obligations under	1041
section 166.08 of the Revised Code. Moneys in the fund shall be	1042
applied as provided in this chapter pursuant to appropriations	1043
made by the general assembly.	1044

(2) In addition to the requirements in division (G)(1) of	1045
this section, moneys referred to in that division may be deposited	1046
to the credit of separate accounts established by the director of	1047
development services within the research and development loan fund	1048
or in the bond service fund and pledged to the security of	1049
obligations, applied to the payment of bond service charges	1050
without need for appropriation, released from any such pledge and	1051
transferred to the research and development loan fund, all as and	1052
to the extent provided in the bond proceedings pursuant to written	1053
directions of the director of development. Accounts may be	1054
established by the director in the research and development loan	1055
fund for particular projects or otherwise. The director may	1056
withdraw from the fund or, subject to provisions of the applicable	1057
bond proceedings, from any special funds established pursuant to	1058
the bond proceedings, or from any accounts in such funds, any	1059
amounts of investment income required to be rebated and paid to	1060
the federal government in order to maintain the exemption from	1061
federal income taxation of interest on obligations issued under	1062
this chapter, which withdrawal and payment may be made without the	1063
necessity for appropriation.	1064

Sec. 718.15.  A municipal corporation, by ordinance, may	1065
grant a refundable or nonrefundable credit against its tax on	1066
income to a taxpayer that also receives a tax credit under section	1067
122.17 of the Revised Codeto foster job creation in the municipal	1068
corporation. If a credit is granted under this section, it shall	1069
be measured as a percentage of the new income tax revenue the	1070
municipal corporation derives from new employees of the taxpayer	1071
and shall be for a term not exceeding fifteen years. Before the	1072
municipal corporation passes an ordinance granting a credit, the	1073
municipal corporation and the taxpayer shall enter into an	1074
agreement specifying all the conditions of the credit.	1075

Sec. 718.151. A municipal corporation, by ordinance, may	1076
grant a refundable or nonrefundable credit against its tax on	1077
income to a taxpayer that receives a nonrefundable tax credit	1078
under section 122.171 of the Revised Code and may grant a	1079
refundable credit against its tax on income to a taxpayer that	1080
receives a refundable tax credit under that sectionfor the	1081
purpose of fostering job retention in the municipal corporation.	1082
If a credit is granted under this section, it shall be measured as	1083
a percentage of the income tax revenue the municipal corporation	1084
derives from the retained employees of the taxpayer, and shall be	1085
for a term not exceeding fifteen years. Before a municipal	1086
corporation passes an ordinance allowing such a credit, the	1087
municipal corporation and the taxpayer shall enter into an	1088
agreement specifying all the conditions of the credit.	1089

Sec. 3734.905.  (A) The treasurer of state shall refund the	1090
fee imposed by section 3734.901 of the Revised Code paid illegally	1091
or erroneously, or paid on an illegal or erroneous assessment.	1092
Applications for refund shall be filed with the tax commissioner	1093
on a form prescribed by the commissioner, within four years of the	1094
illegal or erroneous payment of the fee.	1095

On the filing of the application, the commissioner shall	1096
determine the amount of refund to which the applicant is entitled.	1097
If the amount is not less than that claimed, the commissioner	1098
shall certify the amount to the director of budget and management	1099
and treasurer of state for payment from the tax refund fund	1100
created by section 5703.052 of the Revised Code. If the amount is	1101
less than that claimed, the commissioner shall proceed in	1102
accordance with section 5703.70 of the Revised Code.	1103

If the application for refund is for fees paid on an illegal	1104
or erroneous assessment, theThe certified amount shall include	1105
interest calculated at the rate per annum prescribed by section	1106
5703.47 of the Revised Code from the date of overpayment to the	1107
date of the commissioner's certification.	1108

(B) When the fee imposed pursuant to section 3734.901 of the	1109
Revised Code has been paid on tires that are sold by a retail	1110
dealer or wholesale distributor to a motor vehicle manufacturer,	1111
or to a wholesale distributor or retail dealer for the purpose of	1112
resale outside this state, the seller in this state is entitled to	1113
a refund of the amount of the fee actually paid on the tires. To	1114
obtain a refund under this division, the seller shall apply to the	1115
tax commissioner, shall furnish documentary evidence satisfactory	1116
to the commissioner that the price paid by the purchaser did not	1117
include the fee, and shall provide the name and address of the	1118
purchaser to the commissioner. The seller shall apply on the form	1119
prescribed by the commissioner, within four years after the date	1120
of the sale. Upon receipt of an application, the commissioner	1121
shall determine the amount of any refund due and shall certify	1122
that amount to the director of budget and management and the	1123
treasurer of state for payment from the tax refund fund created in	1124
section 5703.052 of the Revised Code. The certified amount shall	1125
include interest calculated at the rate per annum prescribed by	1126
section 5703.47 of the Revised Code from the date of overpayment	1127
to the date of the commissioner's certification.	1128

(C) If any person entitled to a refund of fees under this	1129
section, or section 5703.70 of the Revised Code, is indebted to	1130
the state for any tax administered by the tax commissioner, or any	1131
charge, penalties, or interest arising from such tax, the amount	1132
allowable on the application for refund first shall be applied in	1133
satisfaction of the debt.	1134

Sec. 4921.13. (A) The public utilities commission shall adopt	1135
rules applicable to the filing of annual update forms and the	1136
payment of taxes by for-hire motor carriers. The rules shall not	1137
be incompatible with the requirements of the United States	1138
department of transportation. The rules shall at a minimum address	1139
all of the following:	1140

(1) The information and certifications that must be provided	1141
to the commission on an annual update form, including a	1142
certification that the carrier continues to be in compliance with	1143
the applicable laws of this state.	1144

(2) Documentation and information that must be provided	1145
regarding proof of financial responsibility;	1146

(3) The form and manner in which taxes may be paid under	1147
section 4921.19 of the Revised Code.	1148

(B) The rules may address any other information that the	1149
commission determines is necessary to carry out this section.	1150

(C) A for-hire motor carrier shall not be issued aany tax	1151
receipt under division (C) of section 4921.19 of the Revised Code	1152
until all of the following have been satisfied:	1153

(1) A complete and accurate annual update form has been filed	1154
with the commission;	1155

(2) Proof of financial responsibility remains in effect;

1156

(3) All applicable registration fees in accordance with rules	1157
adopted under section 4921.11 of the Revised Code, all applicable	1158
taxes under section 4921.19 of the Revised Code, and any	1159
forfeitures imposed under section 4923.99 of the Revised Code have	1160
been paid in full.	1161

Sec. 4921.19.  (A) Every for-hire motor carrier operating in	1162
this state shall, at the time of the issuance of a certificate of	1163
public convenience and necessity under section 4921.03 of the	1164
Revised Code, pay to the public utilities commission, for and on	1165
behalf of the treasurer of state, the following taxes:	1166

(1) For each motor vehicle used for transporting persons,	1167
thirty dollars;	1168

(2) For each commercial tractor, as defined in section	1169
4501.01 of the Revised Code, used for transporting property,	1170
thirty dollars;	1171

(3) For each other motor vehicle transporting property,	1172
twenty dollars.	1173

(B) Every for-hire motor carrier operating in this state	1174
solely in intrastate commerce shall, annually between the first	1175
day of May and the thirtieth day of June, pay to the commission,	1176
for and on behalf of the treasurer of state, the following taxes:	1177

(1) For each motor vehicle used for transporting persons,	1178
thirty dollars;	1179

(2) For each commercial tractor, as defined in section	1180
4501.01 of the Revised Code, used for transporting property,	1181
thirty dollars;	1182

(3) For each other motor vehicle transporting property,	1183
twenty dollars.	1184

(C) After a for-hire motor carrier has paid the applicable	1185
taxes under division (A) or (B) of this section and met all	1186
applicable requirements under section 4921.03 or division (C) of	1187
section 4921.13 of the Revised Code have been met, the commission	1188
shall issue the carrier a tax receipt for each motor vehicle for	1189
which a tax has been paid under this section. The carrier shall	1190
carry a copy ofkeep the appropriate tax receipt in each motor	1191
vehicle operated by the carrier. The carrier shall maintain the	1192
original copy of the tax receipt at the carrier's primary place of	1193
businesstax receipt records that specify to which motor vehicle	1194
each tax receipt is assigned.	1195

(D) A trailer used by a for-hire motor carrier shall not be	1196
taxed under this section.	1197

(E) The annual tax levied by division (B) of this section	1198
does not apply in those cases where the commission finds that the	1199
movement of agricultural commodities or foodstuffs produced	1200
therefrom requires a temporary and seasonal use of vehicular	1201
equipment for a period of not more than ninety days. In such	1202
event, the tax on the vehicular equipment shall be twenty-five per	1203
cent of the annual tax levied by division (B) of this section. If	1204
any vehicular equipment is used in excess of the ninety-day	1205
period, the annual tax levied by this section shall be paid.	1206

(F) All taxes levied by division (B) of this section shall be	1207
reckoned as from the beginning of the quarter in which the tax	1208
receipt is issued or as from when the use of equipment under any	1209
existing tax receipt began.	1210

(G) The fees for unified carrier registration pursuant to	1211
section 4921.11 of the Revised Code shall be identical to those	1212
established by the unified carrier registration act board as	1213
approved by the federal motor carrier safety administration for	1214
each year.	1215

(H)(1) The fees for uniform registration and a uniform permit	1216
as a carrier of hazardous materials pursuant to section 4921.15 of	1217
the Revised Code shall consist of the following:	1218

(a) A processing fee of fifty dollars;

1219

(b) An apportioned per-truck registration fee, which shall be	1220
calculated by multiplying the percentage of a registrant's	1221
activity in this state times the percentage of the registrant's	1222
business that is hazardous-materials-related, times the number of	1223
vehicles owned or operated by the registrant, times a per-truck	1224
fee determined by order of the commission following public notice	1225
and an opportunity for comment.	1226

(i) The percentage of a registrant's activity in this state	1227
shall be calculated by dividing the number of miles that the	1228
registrant travels in this state under the international	1229
registration plan, pursuant to section 4503.61 of the Revised	1230
Code, by the number of miles that the registrant travels	1231
nationwide under the international registration plan. Registrants	1232
that operate solely within this state shall use one hundred per	1233
cent as their percentage of activity. Registrants that do not	1234
register their vehicles through the international registration	1235
plan shall calculate activity in the state in the same manner as	1236
that required by the international registration plan.	1237

(ii) The percentage of a registrant's business that is	1238
hazardous-materials-related shall be calculated, for	1239
less-than-truckload shipments, by dividing the weight of all the	1240
registrant's hazardous materials shipments by the total weight of	1241
all shipments in the previous year. The percentage of a	1242
registrant's business that is hazardous-materials-related shall be	1243
calculated, for truckload shipments, by dividing the number of	1244
shipments for which placarding, marking of the vehicle, or	1245
manifesting, as appropriate, was required by regulations adopted	1246
under sections 4 to 6 of the "Hazardous Materials Transportation	1247
Uniform Safety Act of 1990," 104 Stat. 3244, 49 U.S.C. App. 1804,	1248
by the total number of the registrant's shipments that transported	1249
any kind of goods in the previous year. A registrant that	1250
transports both less-than-truckload and truckload shipments of	1251
hazardous materials shall calculate the percentage of business	1252
that is hazardous-materials-related on a proportional basis.	1253

(iii) A registrant may utilize fiscal year, or calendar year,	1254
or other current company accounting data, or other publicly	1255
available information, in calculating the percentages required by	1256
divisions (H)(1)(b)(i) and (ii) of this section.	1257

(2) The commission, after notice and opportunity for a	1258
hearing, may assess each carrier a fee for any background	1259
investigation required for the issuance, for the purpose of	1260
section 3734.15 of the Revised Code, of a uniform permit as a	1261
carrier of hazardous wastes and fees related to investigations and	1262
proceedings for the denial, suspension, or revocation of a uniform	1263
permit as a carrier of hazardous materials. The fees shall not	1264
exceed the reasonable costs of the investigations and proceedings.	1265
The fee for a background investigation for a uniform permit as a	1266
carrier of hazardous wastes shall be six hundred dollars plus the	1267
costs of obtaining any necessary information not included in the	1268
permit application, to be calculated at the rate of thirty dollars	1269
per hour, not exceeding six hundred dollars, plus any fees payable	1270
to obtain necessary information.	1271

(I) The application fee for a certificate for the	1272
transportation of household goods issued pursuant to sections	1273
4921.30 to 4921.38 of the Revised Code shall be based on the	1274
certificate holder's gross revenue, in the prior year, for the	1275
intrastate transportation of household goods. The commission shall	1276
establish, by order, ranges of gross revenue and the fee for each	1277
range. The fees shall be set in amounts sufficient to carry out	1278
the purposes of sections 4921.30 to 4921.38 and 4923.99 of the	1279
Revised Code and, to the extent necessary, the commission shall	1280
make changes to the fee structure to ensure that neither over nor	1281
under collection of the fees occurs. The fees shall also take into	1282
consideration the revenue generated from the assessment of	1283
forfeitures under section 4923.99 of the Revised Code regarding	1284
the consumer protection provisions applicable to for-hire motor	1285
carriers engaged in the transportation of household goods.	1286

(J) The fees and taxes provided under this section shall be	1287
in addition to taxes, fees, and charges fixed and exacted by other	1288
sections of the Revised Code, except the assessments required by	1289
section 4905.10 of the Revised Code, but all fees, license fees,	1290
annual payments, license taxes, or taxes or other money exactions,	1291
except the general property tax, assessed, charged, fixed, or	1292
exacted by local authorities such as municipal corporations,	1293
townships, counties, or other local boards, or the officers of	1294
such subdivisions are illegal and, are superseded by sections	1295
4503.04 and 4905.03 and Chapter 4921. of the Revised Code. On	1296
compliance with sections 4503.04 and 4905.03 and Chapter 4921. of	1297
the Revised Code, all local ordinances, resolutions, by laws	1298
bylaws, and rules in force shall cease to be operative as to the	1299
persons in compliance, except that such local subdivisions may	1300
make reasonable local police regulations within their respective	1301
boundaries not inconsistent with sections 4503.04 and 4905.03 and	1302
Chapter 4921. of the Revised Code.	1303

Sec. 5703.056.  (A) As used in any section of the Revised	1304
Code that requires the tax commissioner to use certified mail or	1305
personal service or that requires or permits a payment to be made	1306
or a document to be submitted to the tax commissioner or the board	1307
of tax appeals by mail or personal service, and as used in any	1308
section of Chapter 3734., 3769., 4303., or 4305. or Title LVII of	1309
the Revised Code that requires or permits a payment to be made or	1310
a document to be submitted to the treasurer of state by mail:	1311

(1) "Certified mail," "express mail," "United States mail,"	1312
"United States postal service," and similar terms include any	1313
delivery service authorized pursuant to division (B) of this	1314
section.	1315

(2) "Postmark date," "date of postmark," and similar terms	1316
include the date recorded and marked in the manner described in	1317
division (B)(3) of this section.	1318

(B) The tax commissioner may authorize the use of a delivery	1319
service for the delivery of any payment or document described in	1320
division (A) of this section if the commissioner finds that the	1321
delivery service:	1322

(1) Is available to the general public;

1323

(2) Is at least as timely and reliable on a regular basis as	1324
the United States postal service;	1325

(3) Records electronically to a database kept in the regular	1326
course of its business, and marks on the cover in which the	1327
payment or document is enclosed, the date on which the payment or	1328
document was given to the delivery service for delivery;	1329

(4) Records electronically to a database kept in the regular	1330
course of its business the date on which the payment or document	1331
was given by the delivery service to the person who signed the	1332
receipt of delivery and the name of the person who signed the	1333
receipt; and	1334

(5) Meets any other criteria that the tax commissioner may by	1335
rule prescribe.	1336

(C) In any section of the Revised Code referring to the date	1337
any payment or document is received by the tax commissioner by	1338
mail, personal service, or electronically or by a person receiving	1339
a document or payment from the tax commissioner by mail, the	1340
payment or document shall be considered to be received on one of	1341
the following dates, as applicable, except as provided in section	1342
5703.053 or 5703.37 of the Revised Code:	1343

(1) For a document or payment sent by certified mail, express	1344
mail, United States mail, foreign mail, or a delivery service	1345
authorized for use under division (B) of this section, the date of	1346
the postmark placed by the postal or delivery service on the	1347
sender's receipt or, if the sender was not issued a postmarked	1348
sender's receipt, the date of the postmark placed by the postal or	1349
delivery service on the package containing the payment or	1350
document.	1351

(2) For personal service to the tax commissioner, the date	1352
the payment or document is received in any of the tax	1353
commissioner's offices during business hours.	1354

(3) For a document filed or sent electronically or a payment	1355
made electronically, the date on the timestamp assigned by the	1356
first electronic system receiving that payment or document.	1357

(D) As used in divisions (A) and (C) of this section	1358
"electronically" includes by facsimile, if applicable.	1359

Sec. 5703.059. (A) The tax commissioner may adopt rules	1360
requiring returns, including any accompanying schedule or	1361
statement, for any of the following taxestax or fee administered	1362
by the commissioner to be filed electronically using the Ohio	1363
business gateway as defined in section 718.051 of the Revised	1364
Code, filed telephonically using the system known as the Ohio	1365
telefile system, or filed by any other electronic means prescribed	1366
by the commissioner:	1367

(1) Employer income tax withholding under Chapter 5747. of	1368
the Revised Code;	1369

(2) Motor fuel tax under Chapter 5735. of the Revised Code;

1370

(3) Cigarette and tobacco product tax under Chapter 5743. of	1371
the Revised Code;	1372

(4) Severance tax under Chapter 5749. of the Revised Code;

1373

(5) Use tax under Chapter 5741. of the Revised Code;

1374

(6) Commercial activity tax under Chapter 5751. of the	1375
Revised Code;	1376

(7) Financial institutions tax under Chapter 5726. of the	1377
Revised Code;	1378

(8) Motor fuel receipts tax under Chapter 5736. of the	1379
Revised Code;	1380

(9) Horse-racing taxes under Chapter 3769. of the Revised	1381
Code.	1382

(B) The tax commissioner may adopt rules requiring any	1383
payment of tax shown on such a return to be due to be made	1384
electronically in a manner approved by the commissioner.	1385

(C) A rule adopted under this section does not apply to	1386
returns or reports filed or payments made before six months after	1387
the effective date of the rule. The commissioner shall publicize	1388
any new electronic filing requirement on the department's web	1389
site. The commissioner shall educate the public of the requirement	1390
through seminars, workshops, conferences, or other outreach	1391
activities.	1392

(D) Any person required to file returns and make payments	1393
electronically under rules adopted under this section may apply to	1394
the commissioner, on a form prescribed by the commissioner, to be	1395
excused from that requirement. For good cause shown, the	1396
commissioner may excuse the applicant from the requirement and	1397
permit the applicant to file the returns or reports or make the	1398
payments required under this section by nonelectronic means.	1399

Sec. 5703.21.  (A) Except as provided in divisions (B) and	1400
(C) of this section, no agent of the department of taxation,	1401
except in the agent's report to the department or when called on	1402
to testify in any court or proceeding, shall divulge any	1403
information acquired by the agent as to the transactions,	1404
property, or business of any person while acting or claiming to	1405
act under orders of the department. Whoever violates this	1406
provision shall thereafter be disqualified from acting as an	1407
officer or employee or in any other capacity under appointment or	1408
employment of the department.	1409

(B)(1) For purposes of an audit pursuant to section 117.15 of	1410
the Revised Code, or an audit of the department pursuant to	1411
Chapter 117. of the Revised Code, or an audit, pursuant to that	1412
chapter, the objective of which is to express an opinion on a	1413
financial report or statement prepared or issued pursuant to	1414
division (A)(7) or (9) of section 126.21 of the Revised Code, the	1415
officers and employees of the auditor of state charged with	1416
conducting the audit shall have access to and the right to examine	1417
any state tax returns and state tax return information in the	1418
possession of the department to the extent that the access and	1419
examination are necessary for purposes of the audit. Any	1420
information acquired as the result of that access and examination	1421
shall not be divulged for any purpose other than as required for	1422
the audit or unless the officers and employees are required to	1423
testify in a court or proceeding under compulsion of legal	1424
process. Whoever violates this provision shall thereafter be	1425
disqualified from acting as an officer or employee or in any other	1426
capacity under appointment or employment of the auditor of state.	1427

(2) For purposes of an internal audit pursuant to section	1428
126.45 of the Revised Code, the officers and employees of the	1429
office of internal audit in the office of budget and management	1430
charged with directing the internal audit shall have access to and	1431
the right to examine any state tax returns and state tax return	1432
information in the possession of the department to the extent that	1433
the access and examination are necessary for purposes of the	1434
internal audit. Any information acquired as the result of that	1435
access and examination shall not be divulged for any purpose other	1436
than as required for the internal audit or unless the officers and	1437
employees are required to testify in a court or proceeding under	1438
compulsion of legal process. Whoever violates this provision shall	1439
thereafter be disqualified from acting as an officer or employee	1440
or in any other capacity under appointment or employment of the	1441
office of internal audit.	1442

(3) As provided by section 6103(d)(2) of the Internal Revenue	1443
Code, any federal tax returns or federal tax information that the	1444
department has acquired from the internal revenue service, through	1445
federal and state statutory authority, may be disclosed to the	1446
auditor of state or the office of internal audit solely for	1447
purposes of an audit of the department.	1448

(4) For purposes of Chapter 3739. of the Revised Code, an	1449
agent of the department of taxation may share information with the	1450
division of state fire marshal that the agent finds during the	1451
course of an investigation.	1452

(C) Division (A) of this section does not prohibit any of the	1453
following:	1454

(1) Divulging information contained in applications,	1455
complaints, and related documents filed with the department under	1456
section 5715.27 of the Revised Code or in applications filed with	1457
the department under section 5715.39 of the Revised Code;	1458

(2) Providing information to the office of child support	1459
within the department of job and family services pursuant to	1460
section 3125.43 of the Revised Code;	1461

(3) Disclosing to the motor vehicle repair board any	1462
information in the possession of the department that is necessary	1463
for the board to verify the existence of an applicant's valid	1464
vendor's license and current state tax identification number under	1465
section 4775.07 of the Revised Code;	1466

(4) Providing information to the administrator of workers'	1467
compensation pursuant to sections 4123.271 and 4123.591 of the	1468
Revised Code;	1469

(5) Providing to the attorney general information the	1470
department obtains under division (J) of section 1346.01 of the	1471
Revised Code;	1472

(6) Permitting properly authorized officers, employees, or	1473
agents of a municipal corporation from inspecting reports or	1474
information pursuant to rules adopted under section 5745.16 of the	1475
Revised Code;	1476

(7) Providing information regarding the name, account number,	1477
or business address of a holder of a vendor's license issued	1478
pursuant to section 5739.17 of the Revised Code, a holder of a	1479
direct payment permit issued pursuant to section 5739.031 of the	1480
Revised Code, or a seller having a use tax account maintained	1481
pursuant to section 5741.17 of the Revised Code, or information	1482
regarding the active or inactive status of a vendor's license,	1483
direct payment permit, or seller's use tax account;	1484

(8) Releasing invoices or invoice information furnished under	1485
section 4301.433 of the Revised Code pursuant to that section;	1486

(9) Providing to a county auditor notices or documents	1487
concerning or affecting the taxable value of property in the	1488
county auditor's county. Unless authorized by law to disclose	1489
documents so provided, the county auditor shall not disclose such	1490
documents;	1491

(10) Providing to a county auditor sales or use tax return or	1492
audit information under section 333.06 of the Revised Code;	1493

(11) Subject to section 4301.441 of the Revised Code,	1494
disclosing to the appropriate state agency information in the	1495
possession of the department of taxation that is necessary to	1496
verify a permit holder's gallonage or noncompliance with taxes	1497
levied under Chapter 4301. or 4305. of the Revised Code;	1498

(12) Disclosing to the department of natural resources	1499
information in the possession of the department of taxation that	1500
is necessary for the department of taxation to verify the	1501
taxpayer's compliance with section 5749.02 of the Revised Code or	1502
to allow the department of natural resources to enforce Chapter	1503
1509. of the Revised Code;	1504

(13) Disclosing to the department of job and family services,	1505
industrial commission, and bureau of workers' compensation	1506
information in the possession of the department of taxation solely	1507
for the purpose of identifying employers that misclassify	1508
employees as independent contractors or that fail to properly	1509
report and pay employer tax liabilities. The department of	1510
taxation shall disclose only such information that is necessary to	1511
verify employer compliance with law administered by those	1512
agencies.	1513

(14) Disclosing to the Ohio casino control commission	1514
information in the possession of the department of taxation that	1515
is necessary to verify a casino operator's compliance with section	1516
5747.063 or 5753.02 of the Revised Code and sections related	1517
thereto;	1518

(15) Disclosing to the state lottery commission information	1519
in the possession of the department of taxation that is necessary	1520
to verify a lottery sales agent's compliance with section 5747.064	1521
of the Revised Code.	1522

(16) Disclosing to the development services agency	1523
information in the possession of the department of taxation that	1524
is necessary to ensure compliance with the laws of this state	1525
governing taxation and to verify information reported to the	1526
development services agency for the purpose of evaluating	1527
potential tax credits, grants, or loans. Such information shall	1528
not include information received from the internal revenue service	1529
the disclosure of which is prohibited by section 6103 of the	1530
Internal Revenue Code. No officer, employee, or agent of the	1531
development services agency shall disclose any information	1532
provided to the development services agency by the department of	1533
taxation under division (C)(16) of this section except when	1534
disclosure of the information is necessary for, and made solely	1535
for the purpose of facilitating, the evaluation of potential tax	1536
credits, grants, or loans.	1537

Sec. 5727.47.  (A) Notice of each assessment certified	1538
pursuant to section 5727.23 or 5727.38 of the Revised Code shall	1539
be mailed to the public utility, and its mailing shall be	1540
prima-facie evidence of its receipt by the public utility to which	1541
it is addressed. With the notice, the tax commissioner shall	1542
provide instructions on how to petition for reassessment and	1543
request a hearing on the petition. If a public utility objects to	1544
any assessment certified to it pursuant to such sections, it may	1545
file with the commissioner, either personally or by certified	1546
mail, within sixty days after the mailing of the notice of	1547
assessment a written petition for reassessment signed by the	1548
utility's authorized agent having knowledge of the facts. IfThe	1549
date the commissioner receives the petition is filed by certified	1550
mail, the date of the United States postmark placed on the	1551
sender's receipt by the postal employee to whom the petition is	1552
presented shall be treated asshall be considered the date of	1553
filing. The petition shall indicate the utility's objections, but	1554
additional objections may be raised in writing if received by the	1555
commissioner prior to the date shown on the final determination.	1556

In the case of a petition seeking a reduction in taxable	1557
value filed with respect to an assessment issued under section	1558
5727.23 of the Revised Code, the petitioner shall state in the	1559
petition the total amount of reduction in taxable value sought by	1560
the petitioner. If the petitioner objects to the percentage of	1561
true value at which taxable property is assessed by the	1562
commissioner, the petitioner shall state in the petition the total	1563
amount of reduction in taxable value sought both with and without	1564
regard to the objection pertaining to the percentage of true value	1565
at which its taxable property is assessed. If a petitioner objects	1566
to the commissioner's apportionment of the taxable value of the	1567
petitioner's taxable property, the petitioner shall distinctly	1568
state in the petition that the petitioner objects to the	1569
commissioner's apportionment, and, within forty-five days after	1570
filing the petition for reassessment, shall submit the	1571
petitioner's proposed apportionment of the taxable value of its	1572
taxable property among taxing districts. If a petitioner that	1573
objects to the commissioner's apportionment fails to state its	1574
objections to that apportionment in its petition for reassessment	1575
or fails to submit its proposed apportionment within forty-five	1576
days after filing the petition for reassessment, the commissioner	1577
shall dismiss the petitioner's objection to the commissioner's	1578
apportionment, and the taxable value of the petitioner's taxable	1579
property, subject to any adjustment to taxable value pursuant to	1580
the petition or appeal, shall be apportioned in the manner used by	1581
the commissioner in the preliminary or amended preliminary	1582
assessment issued under section 5727.23 of the Revised Code.	1583

If an additional objection seeking a reduction in taxable	1584
value in excess of the reduction stated in the original petition	1585
is properly and timely raised with respect to an assessment issued	1586
under section 5727.23 of the Revised Code, the petitioner shall	1587
state the total amount of the reduction in taxable value sought in	1588
the additional objection both with and without regard to any	1589
reduction in taxable value pertaining to the percentage of true	1590
value at which taxable property is assessed. If a petitioner fails	1591
to state the reduction in taxable value sought in the original	1592
petition or in additional objections properly raised after the	1593
petition is filed, the commissioner shall notify the petitioner of	1594
the failure by certified mail. If the petitioner fails to notify	1595
the commissioner in writing of the reduction in taxable value	1596
sought in the petition or in an additional objection within thirty	1597
days after receiving the commissioner's notice, the commissioner	1598
shall dismiss the petition or the additional objection in which	1599
that reduction is sought.	1600

(B)(1) Subject to divisions (B)(2) and (3) of this section, a	1601
public utility filing a petition for reassessment regarding an	1602
assessment issued under section 5727.23 or 5727.38 of the Revised	1603
Code shall pay the tax with respect to the assessment objected to	1604
as required by law. The acceptance of any tax payment by the	1605
treasurer of state or any county treasurer shall not prejudice any	1606
claim for taxes on final determination by the commissioner or	1607
final decision by the board of tax appeals or any court.	1608

(2) If a public utility properly and timely files a petition	1609
for reassessment regarding an assessment issued under section	1610
5727.23 of the Revised Code, the petitioner shall pay the tax as	1611
prescribed by divisions (B)(2)(a), (b), and (c) of this section:	1612

(a) If the petitioner does not object to the commissioner's	1613
apportionment of the taxable value of the petitioner's taxable	1614
property, the petitioner is not required to pay the part of the	1615
tax otherwise due on the taxable value that the petitioner seeks	1616
to have reduced, subject to division (B)(2)(c) of this section.	1617

(b) If the petitioner objects to the commissioner's	1618
apportionment of the taxable value of the petitioner's taxable	1619
property, the petitioner is not required to pay the tax otherwise	1620
due on the part of the taxable value apportioned to any taxing	1621
district that the petitioner objects to, subject to division	1622
(B)(2)(c) of this section. If, pursuant to division (A) of this	1623
section, the petitioner has, in a proper and timely manner,	1624
apportioned taxable value to a taxing district to which the	1625
commissioner did not apportion the petitioner's taxable value, the	1626
petitioner shall pay the tax due on the taxable value that the	1627
petitioner has apportioned to the taxing district, subject to	1628
division (B)(2)(c) of this section.	1629

(c) If a petitioner objects to the percentage of true value	1630
at which taxable property is assessed by the commissioner, the	1631
petitioner shall pay the tax due on the basis of the percentage of	1632
true value at which the public utility's taxable property is	1633
assessed by the commissioner. In any case, the petitioner's	1634
payment of tax shall not be less than the amount of tax due based	1635
on the taxable value reflected on the last appeal notice issued by	1636
the commissioner under division (C) of this section. Until the	1637
county auditor receives notification under division (E) of this	1638
section and proceeds under section 5727.471 of the Revised Code to	1639
issue any refund that is found to be due, the county auditor shall	1640
not issue a refund for any increase in the reduction in taxable	1641
value that is sought by a petitioner later than forty-five days	1642
after the petitioner files the original petition as required under	1643
division (A) of this section.	1644

(3) Any part of the tax that, under division (B)(2)(a) or (b)	1645
of this section, is not paid shall be collected upon receipt of	1646
the notification as provided in section 5727.471 of the Revised	1647
Code with interest thereon computed in the same manner as interest	1648
is computed under division (E) of section 5715.19 of the Revised	1649
Code, subject to any correction of the assessment by the	1650
commissioner under division (E) of this section or the final	1651
judgment of the board of tax appeals or a court to which the	1652
board's final judgment is appealed. The penalty imposed under	1653
section 323.121 of the Revised Code shall apply only to the unpaid	1654
portion of the tax if the petitioner's tax payment is less than	1655
the amount of tax due based on the taxable value reflected on the	1656
last appeal notice issued by the commissioner under division (C)	1657
of this section.	1658

(C) Upon receipt of a properly filed petition for	1659
reassessment, the tax commissioner shall notify the treasurer of	1660
state or the auditor of each county to which the assessment	1661
objected to has been certified. In the case of a petition with	1662
respect to an assessment issued under section 5727.23 of the	1663
Revised Code, the commissioner shall issue an appeal notice within	1664
thirty days after receiving the amount of the taxable value	1665
reduction and apportionment changes sought by the petitioner in	1666
the original petition or in any additional objections properly and	1667
timely raised by the petitioner. The appeal notice shall indicate	1668
the amount of the reduction in taxable value sought in the	1669
petition or in the additional objections and the extent to which	1670
the reduction in taxable value and any change in apportionment	1671
requested by the petitioner would affect the commissioner's	1672
apportionment of the taxable value among taxing districts in the	1673
county as shown in the assessment. If a petitioner is seeking a	1674
reduction in taxable value on the basis of a lower percentage of	1675
true value than the percentage at which the commissioner assessed	1676
the petitioner's taxable property, the appeal notice shall	1677
indicate the reduction in taxable value sought by the petitioner	1678
without regard to the reduction sought on the basis of the lower	1679
percentage and shall indicate that the petitioner is required to	1680
pay tax on the reduced taxable value determined without regard to	1681
the reduction sought on the basis of a lower percentage of true	1682
value, as provided under division (B)(2)(c) of this section. The	1683
appeal notice shall include a statement that the reduced taxable	1684
value and the apportionment indicated in the notice are not final	1685
and are subject to adjustment by the commissioner or by the board	1686
of tax appeals or a court on appeal. If the commissioner finds an	1687
error in the appeal notice, the commissioner may amend the notice,	1688
but the notice is only for informational and tax payment purposes;	1689
the notice is not subject to appeal by any person. The	1690
commissioner also shall mail a copy of the appeal notice to the	1691
petitioner. Upon the request of a taxing authority, the county	1692
auditor may disclose to the taxing authority the extent to which a	1693
reduction in taxable value sought by a petitioner would affect the	1694
apportionment of taxable value to the taxing district or districts	1695
under the taxing authority's jurisdiction, but such a disclosure	1696
does not constitute a notice required by law to be given for the	1697
purpose of section 5717.02 of the Revised Code.	1698

(D) If the petitioner requests a hearing on the petition, the	1699
tax commissioner shall assign a time and place for the hearing on	1700
the petition and notify the petitioner of such time and place, but	1701
the commissioner may continue the hearing from time to time as	1702
necessary.	1703

(E) The tax commissioner may make corrections to the	1704
assessment as the commissioner finds proper. The commissioner	1705
shall serve a copy of the commissioner's final determination on	1706
the petitioner in the manner provided in section 5703.37 of the	1707
Revised Code. The commissioner's decision in the matter shall be	1708
final, subject to appeal under section 5717.02 of the Revised	1709
Code. The commissioner also shall transmit a copy of the final	1710
determination to the treasurer of state or applicable county	1711
auditor. In the absence of any further appeal, or when a decision	1712
of the board of tax appeals or of any court to which the decision	1713
has been appealed becomes final, the commissioner shall notify the	1714
public utility and, as appropriate, the treasurer of state who	1715
shall proceed under section 5727.42 of the Revised Code, or the	1716
applicable county auditor who shall proceed under section 5727.471	1717
of the Revised Code.	1718

The notification made under this division is not subject to	1719
further appeal.	1720

(F) On appeal, no adjustment shall be made in the tax	1721
commissioner's assessment issued under section 5727.23 of the	1722
Revised Code that reduces the taxable value of a petitioner's	1723
taxable property by an amount that exceeds the reduction sought by	1724
the petitioner in its petition for reassessment or in any	1725
additional objections properly and timely raised after the	1726
petition is filed with the commissioner.	1727

Sec. 5727.91.  (A) The treasurer of state shall refund the	1728
amount of tax paid under section 5727.81 or 5727.811 of the	1729
Revised Code that was paid illegally or erroneously, or paid on an	1730
illegal or erroneous assessment. A natural gas distribution	1731
company, an electric distribution company, or a self-assessing	1732
purchaser shall file an application for a refund with the tax	1733
commissioner on a form prescribed by the commissioner, within four	1734
years of the illegal or erroneous payment of the tax.	1735

On the filing of the application, the commissioner shall	1736
determine the amount of refund to which the applicant is entitled.	1737
If the amount is not less than that claimed, the commissioner	1738
shall certify that amount to the director of budget and management	1739
and the treasurer of state for payment from the tax refund fund	1740
under section 5703.052 of the Revised Code. If the amount is less	1741
than that claimed, the commissioner shall proceed in accordance	1742
with section 5703.70 of the Revised Code.	1743

If the application for refund is for taxes paid on an illegal	1744
or erroneous assessment, theThe commissioner shall include in the	1745
certified amount interest calculated at the rate per annum	1746
prescribed by section 5703.47 of the Revised Code from the date of	1747
overpayment to the date of the commissioner's certification.	1748

(B) If a natural gas distribution company or an electric	1749
distribution company entitled to a refund of taxes under this	1750
section, or section 5703.70 of the Revised Code, is indebted to	1751
the state for any tax or fee administered by the tax commissioner	1752
that is paid to the state, or any charge, penalty, or interest	1753
arising from such a tax or fee, the amount refundable may be	1754
applied in satisfaction of the debt. If the amount refundable is	1755
less than the amount of the debt, it may be applied in partial	1756
satisfaction of the debt. If the amount refundable is greater than	1757
the amount of the debt, the amount remaining after satisfaction of	1758
the debt shall be refunded. If the natural gas distribution	1759
company or electric distribution company has more than one such	1760
debt, any debt subject to section 5739.33 or division (G) of	1761
section 5747.07 of the Revised Code shall be satisfied first. This	1762
section applies only to debts that have become final.	1763

(C)(1) Any electric distribution company that can	1764
substantiate to the tax commissioner that the tax imposed by	1765
section 5727.81 of the Revised Code was paid on electricity	1766
distributed via wires and consumed at a location outside of this	1767
state may claim a refund in the manner and within the time period	1768
prescribed in division (A) of this section.	1769

(2) Any natural gas distribution company that can	1770
substantiate to the tax commissioner that the tax imposed by	1771
section 5727.811 of the Revised Code was paid on natural gas	1772
distributed via its facilities and consumed at a location outside	1773
of this state may claim a refund in the manner and within the time	1774
period prescribed in division (A) of this section.	1775

(3) If the commissioner certifies a refund based on an	1776
application filed under division (C)(1) or (2) of this section,	1777
the commissioner shall include in the certified amount interest	1778
calculated at the rate per annum prescribed by section 5703.47 of	1779
the Revised Code from the date of overpayment to the date of the	1780
commissioner's certification.	1781

(D) Before a refund is issued under this section or section	1782
5703.70 of the Revised Code, a natural gas company or an electric	1783
distribution company shall certify, as prescribed by the tax	1784
commissioner, that it either did not include the tax imposed by	1785
section 5727.81 of the Revised Code in the case of an electric	1786
distribution company, or the tax imposed by section 5727.811 of	1787
the Revised Code in the case of a natural gas distribution	1788
company, in its distribution charge to its customer upon which a	1789
refund of the tax is claimed, or it has refunded or credited to	1790
the customer the excess distribution charge related to the tax	1791
that was erroneously included in the customer's distribution	1792
charge.	1793

Sec. 5735.01.  As used in this chapter:

1794

(A) "Motor vehicles" includes all vehicles, vessels,	1795
watercraft, engines, machines, or mechanical contrivances which	1796
are powered by internal combustion engines or motors.	1797

(B) "Motor fuel" means gasoline, diesel fuel, K-1 kerosene,	1798
or any other liquid motor fuel, including, but not limited to,	1799
liquid petroleum gas or liquid natural gas, but excluding	1800
substances prepackaged and sold in containers of five gallons or	1801
less.	1802

(C) "K-1 Kerosenekerosene" means fuel that conforms to the	1803
chemical and physical standards for kerosene no. 1-K as set forth	1804
in the americanAmerican society for testing and materials (ASTM)	1805
designated D-3699 "standard for specification for kerosene," as	1806
that standard may be modified from time to time. For purposes of	1807
inspection and testing, laboratory analysis shall be conducted	1808
using methods recognized by the ASTM designation D-3699.	1809

(D) "Diesel fuel" means any liquid fuel capable of use in	1810
discrete form or as a blend component in the operation of engines	1811
of the diesel type, including transmix when mixed with diesel	1812
fuel.	1813

(E) "Gasoline" means any of the following:

1814

(1) All products, commonly or commercially known or sold as	1815
gasoline;	1816

(2) Any blend stocks or additives, including alcohol, that	1817
are sold for blending with gasoline, other than products typically	1818
sold in containers of five gallons or less;	1819

(3) Transmix when mixed with gasoline, unless certified, as	1820
required by the tax commissioner, for withdrawal from terminals	1821
for reprocessing at refineries;	1822

(4) Alcohol that is offered for sale or sold for use as, or	1823
commonly and commercially used as, a fuel for internal combustion	1824
engines.	1825

Gasoline does not include diesel fuel, commercial or	1826
industrial napthas or solvents manufactured, imported, received,	1827
stored, distributed, sold, or used exclusively for purposes other	1828
than as a motor fuel for a motor vehicle or vessel. The blending	1829
of any of the products listed in the preceding sentence,	1830
regardless of name or characteristics, is conclusively presumed to	1831
have been done to produce gasoline, unless the product obtained by	1832
the blending is entirely incapable for use as fuel to operate a	1833
motor vehicle. An additive, blend stock, or alcohol is presumed to	1834
be sold for blending unless a certification is obtained as	1835
required by the tax commissioner.	1836

(F) "Public highways" means lands and lots over which the	1837
public, either as user or owner, generally has a right to pass,	1838
even though the same are closed temporarily by the authorities for	1839
the purpose of construction, reconstruction, maintenance, or	1840
repair.	1841

(G) "Waters within the boundaries of this state" means all	1842
streams, lakes, ponds, marshes, water courses, and all other	1843
bodies of surface water, natural or artificial, which are situated	1844
wholly or partially within this state or within its jurisdiction,	1845
except private impounded bodies of water.	1846

(H) "Person" includes individuals, partnerships, firms,	1847
associations, corporations, receivers, trustees in bankruptcy,	1848
estates, joint-stock companies, joint ventures, the state and its	1849
political subdivisions, and any combination of persons of any	1850
form.	1851

(I)(1) "Motor fuel dealer" means any person who satisfies any	1852
of the following:	1853

(a) The person imports from another state or foreign country	1854
or acquires motor fuel by any means into a terminal in this state;	1855

(b) The person imports motor fuel from another state or	1856
foreign country in bulk lot vehicles for subsequent sale and	1857
distribution in this state from bulk lot vehicles;	1858

(c) The person refines motor fuel in this state;

1859

(d) The person acquires motor fuel from a motor fuel dealer	1860
for subsequent sale and distribution by that person in this state	1861
from bulk lot vehicles;	1862

(e) The person possesses an unrevoked permissive motor fuel	1863
dealer's license.	1864

(2) Any person who obtains dyed diesel fuel for use other	1865
than the operation of motor vehicles upon the public highways or	1866
upon waters within the boundaries of this state, but later uses	1867
that motor fuel for the operation of motor vehicles upon the	1868
public highways or upon waters within the boundaries of this	1869
state, is deemed a motor fuel dealer as regards any unpaid motor	1870
fuel taxes levied on the motor fuel so used.	1871

(J) As used in sections 5735.05, 5735.25, 5735.29, and	1872
5735.30 of the Revised Code only:	1873

(1) With respect to gasoline, "received" or "receipt" shall	1874
be construed as follows:	1875

(a) Gasoline produced at a refinery in this state or	1876
delivered to a terminal in this state is deemed received when it	1877
is disbursed through a loading rack at that refinery or terminal;	1878

(b) Except as provided in division (J)(1)(a) of this section,	1879
gasoline imported into this state or purchased or otherwise	1880
acquired in this state by any person is deemed received within	1881
this state by that person when the gasoline is withdrawn from the	1882
container in which it was transported;	1883

(c) Gasoline delivered or disbursed by any means from a	1884
terminal directly to another terminal is not deemed received.	1885

(2) With respect to motor fuel other than gasoline,	1886
"received" or "receipt" means distributed or sold for use or used	1887
to generate power for the operation of motor vehicles upon the	1888
public highways or upon waters within the boundaries of this	1889
state. All diesel fuel that is not dyed diesel fuel, regardless of	1890
its use, shall be considered as used to generate power for the	1891
operation of motor vehicles upon the public highways or upon	1892
waters within the boundaries of this state when the fuel is sold	1893
or distributed to a person other than a licensed motor fuel dealer	1894
or to a person licensed under section 5735.026 of the Revised	1895
Code.	1896

(K) Motor fuel used for the operation of licensed motor	1897
vehicles employed in the maintenance, construction, or repair of	1898
public highways is deemed to be used for the operation of motor	1899
vehicles upon the public highways.	1900

(L) "Licensed motor fuel dealer" means any dealer possessing	1901
an unrevoked motor fuel dealer's license issued by the tax	1902
commissioner as provided in section 5735.02 of the Revised Code.	1903

(M) "Licensed retail dealer" means any retail dealer	1904
possessing an unrevoked retail dealer's license issued by the tax	1905
commissioner as provided in section 5735.022 of the Revised Code.	1906

(N) "Cents per gallon rate" means the amount computed by the	1907
tax commissioner under section 5735.011 of the Revised Code that	1908
is used to determine that portion of the tax levied by section	1909
5735.05 of the Revised Code that is computed in the manner	1910
prescribed by division (B)(2) of section 5735.06 of the Revised	1911
Code and that is applicable for the period that begins on the	1912
first day of July following the date on which the commissioner	1913
makes the computation.	1914

(O) "Retail dealer" means any person that sells or	1915
distributes motor fuel at a retail service station located in this	1916
state.	1917

(P) "Retail service station" means a location from which	1918
motor fuel is sold to the general public and is dispensed or	1919
pumped directly into motor vehicle fuel tanks for consumption.	1920

(Q) "Transit bus" means a motor vehicle that is operated for	1921
public transit or paratransit service on a regular and continuing	1922
basis within the state by or for a county, a municipal	1923
corporation, a county transit board pursuant to sections 306.01 to	1924
306.13 of the Revised Code, a regional transit authority pursuant	1925
to sections 306.30 to 306.54 of the Revised Code, or a regional	1926
transit commission pursuant to sections 306.80 to 306.90 of the	1927
Revised Code. Public transit or paratransit service may include	1928
fixed route, demand-responsive, or subscription bus service	1929
transportation, but does not include shared-ride taxi service,	1930
carpools, vanpools, jitney service, school bus transportation, or	1931
charter or sightseeing services.	1932

(R) "Export" means motor fuel delivered outside this state.	1933
Motor fuel delivered outside this state by or for the seller	1934
constitutes an export by the seller. Motor fuel delivered outside	1935
this state by or for the purchaser constitutes an export by the	1936
purchaser.	1937

(S) "Import" means motor fuel delivered into this state from	1938
outside this state. Motor fuel delivered into this state from	1939
outside this state by or for the seller constitutes an import by	1940
the seller. Motor fuel delivered into this state from outside this	1941
state by or for the purchaser constitutes an import by the	1942
purchaser.	1943

(T) "Terminal" means a motor fuel storage or distribution	1944
facility that is supplied by pipeline or marine vessel.	1945

(U) "Consumer" means a buyer of motor fuel for purposes other	1946
than resale in any form.	1947

(V) "Bulk lot vehicle" means railroad tank cars, transport	1948
tank trucks and tank wagons with a capacity of at least 1,400	1949
gallons.	1950

(W) "Licensed permissive motor fuel dealer" means any person	1951
possessing an unrevoked permissive motor fuel dealer's license	1952
issued by the tax commissioner under section 5735.021 of the	1953
Revised Code.	1954

(X) "Licensed terminal operator" means any person possessing	1955
an unrevoked terminal operator's license issued by the tax	1956
commissioner under section 5735.026 of the Revised Code.	1957

(Y) "Licensed exporter" means any person possessing an	1958
unrevoked exporter's license issued by the tax commissioner under	1959
section 5735.026 of the Revised Code.	1960

(Z) "Dyed diesel fuel" means any diesel fuel dyed pursuant to	1961
regulations issued by the internal revenue service or a rule	1962
promulgated by the tax commissioner.	1963

(AA) "Gross gallons" means U.S. gallons without temperature	1964
or barometric adjustments.	1965

(BB) "Net gallons" means U.S. gallons with a temperature	1966
adjustment to sixty degrees fahrenheit.	1967

(CC) "Transporter" means either of the following:

1968

(1) A railroad company, street, suburban, or interurban	1969
railroad company, a pipeline company, or water transportation	1970
company that transports motor fuel, either in interstate or	1971
intrastate commerce, to points in this state;	1972

(2) A person that transports motor fuel by any manner to a	1973
point in this state.	1974

(DD) "Exporter" means either of the following:

1975

(1) A person that is licensed to collect and remit motor fuel	1976
taxes in a specified state of destination;	1977

(2) A person that is statutorily prohibited from obtaining a	1978
license to collect and remit motor fuel taxes in a specified state	1979
of destination, and is licensed to sell or distribute tax-paid	1980
motor fuel in the specified state of destination.	1981

(EE) "Report" means a report or return required to be filed	1982
under this chapter and may be used interchangeably with, and for	1983
all purposes has the same meaning as, "return."	1984

Sec. 5735.026.  (A) The tax commissioner, for the purposes of	1985
administering this chapter, shall issue two classes of export	1986
licenses: "exporter type A" licenses and "exporter type B"	1987
licenses. To qualify for an exporter type A license, a person must	1988
demonstrate to the tax commissioner's satisfaction that the person	1989
is licensed to collect and remit motor fuel taxes in the specified	1990
state of destination. To qualify for an exporter type B license,	1991
to a person must demonstratethat receives motor fuel in this	1992
state and exports that fuel out of this state and that	1993
demonstrates to the tax commissioner's satisfaction that the	1994
person is statutorily prohibited from obtaining a license to	1995
collect and remit motor fuel taxes in the specified state of	1996
destination, and that the person is licensed to sell or distribute	1997
tax-paid motor fuel in the specified state of destinationan	1998
exporter.	1999

(B) To obtain an exporter'sexporter license of either class,	2000
a person shall file, under oath, an application with the	2001
commissioner in such form as the commissioner prescribes. An	2002
application for a license shall be accompanied by a bond of the	2003
character and in the amount described in section 5735.03 of the	2004
Revised Code. The application shall set forth the following	2005
information:	2006

(1) The name under which the exporter will transact business	2007
within the state;	2008

(2) The location, including street number address, of the	2009
exporter's principal office or place of business;	2010

(3) The name and address of the owner, or the names and	2011
addresses of the partners if such exporter is a partnership, or	2012
the names and addresses of the principal officers if the exporter	2013
is a corporation or an association;	2014

(4) A certified copy of the certificate or license issued by	2015
the Secretary of State showing that the corporation is authorized	2016
to transact business in this state if the exporter is a	2017
corporation organized under the laws of another state, territory,	2018
or country;	2019

(5) For an exporter type A licensedescribed in division	2020
(DD)(1) of section 5735.01 of the Revised Code, a copy of the	2021
applicant's license or certificate to collect and remit motor fuel	2022
taxes or sell or distribute motor fuel in the specified	2023
destination state or states for which the license or certificate	2024
is to be issued;	2025

(6) Any other information the commissioner may require.

2026

(C)(1) After a hearing as provided in division (C)(2) of this	2027
section, the tax commissioner may refuse to issue a license to	2028
transact business as an exporter of motor fuel in the following	2029
circumstances:	2030

(a) The applicant has previously had a license issued under	2031
this chapter canceled for cause by the tax commissioner;	2032

(b) The tax commissioner believes that an application is not	2033
filed in good faith;	2034

(c) The applicant has previously violated any provision of	2035
this chapter;	2036

(d) The application is filed as a subterfuge by the applicant	2037
for the real person in interest who has previously had a license	2038
issued under this chapter canceled for cause by the tax	2039
commissioner or who has violated any provision of this chapter.	2040

(2) The tax commissioner shall conduct a hearing before	2041
refusing to issue a license to transact business as an exporter in	2042
any of the circumstances described in division (C)(1) of this	2043
section. The applicant shall be given five days' notice, in	2044
writing, of the hearing. The applicant may appear in person or be	2045
represented by counsel, and may present testimony at the hearing.	2046

(D) When an application in proper form has been accepted for	2047
filing, the commissioner shall issue to such exporter a license to	2048
transact business as an exporter of motor fuel in this state,	2049
subject to cancellation of such license as provided by law.	2050

(E) No person shall make a false or fraudulent statement on	2051
the application required by this section.	2052

Sec. 5735.03.  Except as provided in division (C)(2) of	2053
section 5735.02 of the Revised Code, every motor fuel dealer shall	2054
file with the tax commissioner a surety bond of not less than five	2055
thousand dollars, but may be required by the tax commissioner to	2056
submit a surety bond equal to three months' average tax	2057
liability,. Each exporter shall file with the commissioner a	2058
surety bond in an amount equal to the greater of five thousand	2059
dollars or the average number of gallons exported from this state	2060
as reported on three months' of exporter returns filed under	2061
section 5735.064 of the Revised Code, multiplied by the combined	2062
rate of the taxes levied under this chapter.	2063

A surety bond required under this section shall be filed on a	2064
form approved by and with a surety satisfactory to the	2065
commissioner, upon which the motor fuel dealer or exporter shall	2066
be the principal obligor and the state shall be the obligee,	2067
conditioned upon the prompt filing of true reports and the payment	2068
by the motor fuel dealer, or the exporter as may be required, to	2069
the treasurer of state of all motor fuel excise taxes levied by	2070
the state, provided that after notice is received from the state	2071
by the surety of the delinquency of any taxes, if the surety pays	2072
the taxes within thirty days after the receipt of the notice, no	2073
penalties or interest shall be charged against the surety. If the	2074
surety does not pay the taxes within thirty days, but does pay	2075
within ninety days from the date of the receipt of notice from the	2076
state by the surety, no penalty shall be assessed against the	2077
surety but the surety shall pay interest at the rate of six per	2078
cent per annum on the unpaid taxes from the date the taxes are due	2079
and payable. If the surety does not pay within ninety days, then	2080
the surety shall be liable for interest and penalties, and the tax	2081
commissioner may cancel all bonds issued by the surety.	2082

The commissioner may increase or reduce the amount of the	2083
bond required to be filed by any licensed motor fuel dealer or	2084
licensed exporter. If the commissioner finds that it is necessary	2085
to increase the bond to assure payment of the tax, the bond may	2086
be increased to an amount equal to three months/average liability	2087
or fifty thousand dollars, whichever is greater.	2088

If liability upon the bond thus filed by the motor fuel	2089
dealer or exporter with the commissioner is discharged or reduced,	2090
whether by judgment rendered, payment made, or otherwise, or if,	2091
in the opinion of the commissioner any surety on the bond	2092
theretofore given has become unsatisfactory or unacceptable, the	2093
commissioner may require the motor fuel dealer or exporter to file	2094
a new bond with satisfactory sureties in the same amount, and if a	2095
new bond is not filed the commissioner shall forthwith cancel the	2096
license of the motor fuel dealer or exporter. If a new bond is	2097
furnished by the motor fuel dealer or exporter, the commissioner	2098
shall cancel and surrender the bond of the motor fuel dealer or	2099
exporter for which the new bond is substituted.	2100

A surety on a bond furnished by a motor fuel dealer or	2101
exporter shall be released from all liability to the state	2102
accruing on the bond after the expiration of sixty days from the	2103
date upon which the surety lodges with the commissioner a written	2104
request to be released. The request shall not operate to release	2105
the surety from any liability already accrued, or which accrues	2106
before the expiration of the sixty-day period. The commissioner	2107
shall promptly on receipt of notice of the request notify the	2108
motor fuel dealer or exporter who furnished the bond and, unless	2109
the motor fuel dealer or exporter, on or before the expiration of	2110
the sixty-day period, files with the commissioner a new bond with	2111
a surety satisfactory to the commissioner in the amount and form	2112
provided in this section, the commissioner shall forthwith cancel	2113
the license of the motor fuel dealer or exporter. If the new bond	2114
is furnished by saidthe motor fuel dealer or exporter, the	2115
commissioner shall cancel and surrender the bond of the motor fuel	2116
dealer or exporter for which the new bond is substituted.	2117

The commissioner, in lieu of any surety bond required by this	2118
section, may accept a deposit by a motor fuel dealer or exporter	2119
of cash. Any cash thus accepted shall be deposited with the	2120
treasurer of state to be held by the treasurer of state, in the	2121
same manner as other cash required to be deposited with the	2122
treasurer of state under the laws of the state, for the account of	2123
such motor fuel dealer or exporter and subject to any lawful	2124
claim of the state for any excise tax upon motor fuel, and	2125
penalties and interest thereon levied by the laws of this state.	2126
The state shall have a lien upon cash thus deposited for the	2127
amount of any motor fuel excise taxes and penalty and interest due	2128
to the state from the motor fuel dealer or exporter in whose	2129
behalf they were deposited. The amount of cash to be thus accepted	2130
shall in all respects be determined in the same manner as provided	2131
in this section for the amount of surety bonds. Any cash deposited	2132
shall be subject to levy upon execution to satisfy any judgment	2133
secured in any action by the state to recover any motor fuel	2134
excise taxes, and penalties and interest found to be due to the	2135
state from such motor fuel dealer or exporter. The cash shall be	2136
released by the treasurer of state upon certificate of the	2137
commissioner that the license of the motor fuel dealer or exporter	2138
in whose behalf they have been deposited has been canceled or that	2139
other security has been accepted in lieu thereof, and that the	2140
state asserts no claim thereto.	2141

Sec. 5735.06.  (A) On or before the lasttwenty-third day of	2142
each month, each motor fuel dealer shall file with the tax	2143
commissioner a report for the preceding calendar month, on forms	2144
prescribed by or in a form acceptable to the tax commissioner. The	2145
report shall include the following information:	2146

(1) An itemized statement of the number of gallons of all	2147
motor fuel received during the preceding calendar month by such	2148
motor fuel dealer, which has been produced, refined, prepared,	2149
distilled, manufactured, blended, or compounded by such motor fuel	2150
dealer in the state;	2151

(2) An itemized statement of the number of gallons of all	2152
motor fuel received by such motor fuel dealer in the state from	2153
any source during the preceding calendar month, other than motor	2154
fuel included in division (A)(1) of this section, together with a	2155
statement showing the date of receipt of such motor fuel; the name	2156
of the person from whom purchased or received; the date of receipt	2157
of each shipment of motor fuel; the point of origin and the point	2158
of destination of each shipment; the quantity of each of said	2159
purchases or shipments; the name of the carrier; the number of	2160
gallons contained in each car if shipped by rail; the point of	2161
origin, destination, and shipper if shipped by pipe line; or the	2162
name and owner of the boat, barge, or vessel if shipped by water;	2163

(3) An itemized statement of the number of gallons of motor	2164
fuel which such motor fuel dealer has during the preceding	2165
calendar month:	2166

(a) For motor fuel other than gasoline sold for use other	2167
than for operating motor vehicles on the public highways or on	2168
waters within the boundaries of this state;	2169

(b) Exported from this state to any other state or foreign	2170
country as provided in division (A)(4) of section 5735.05 of the	2171
Revised Code;	2172

(c) Sold to the United States government or any of its	2173
agencies;	2174

(d) Sold for delivery to motor fuel dealers;

2175

(e) Sold exclusively for use in the operation of aircraft;.

2176

(4) Such other information incidental to the enforcement of	2177
the motor fuel laws of the state as the commissioner requires.	2178

(B) The report shall show the tax due, computed as follows:

2179

(1) The following deductions shall be made from the total	2180
number of gallons of motor fuel received by the motor fuel dealer	2181
within the state during the preceding calendar month:	2182

(a) The total number of gallons of motor fuel received by the	2183
motor fuel dealer within the state and sold or otherwise disposed	2184
of during the preceding calendar month as set forth in section	2185
5735.05 of the Revised Code;	2186

(b) The total number of gallons received during the preceding	2187
calendar month and sold or otherwise disposed of to another	2188
licensed motor fuel dealer pursuant to section 5735.05 of the	2189
Revised Code;	2190

(c) To cover the costs of the motor fuel dealer in compiling	2191
the report, and evaporation, shrinkage, or other unaccounted-for	2192
losses:	2193

(i) If the report is timely filed and the tax is timely paid,	2194
three per cent of the total number of gallons of motor fuel	2195
received by the motor fuel dealer within the state during the	2196
preceding calendar month less the total number of gallons deducted	2197
under divisions (B)(1)(a) and (b) of this section, less one per	2198
cent of the total number of gallons of motor fuel that were sold	2199
to a retail dealer during the preceding calendar month;	2200

(ii) If the report required by division (A) of this section	2201
is not timely filed and the tax is not timely paid, no deduction	2202
shall be allowed;	2203

(iii) If the report is incomplete, no deduction shall be	2204
allowed for any fuel on which the tax is not timely reported and	2205
paid;.	2206

(2) The number of gallons remaining after the deductions have	2207
been made shall be multiplied separately by each of the following	2208
amounts:	2209

(a) The cents per gallon rate;

2210

(b) Two cents.

2211

The sum of the products obtained in divisions (B)(2)(a) and	2212
(b) of this section shall be the amount of motor fuel tax for the	2213
preceding calendar month.	2214

(C) The report shall be filed together with payment of the	2215
tax shown on the report to be due, unless the motor fuel dealer is	2216
required by section 5735.062 of the Revised Code to pay the tax by	2217
electronic funds transfer, in which case the dealer shall file the	2218
report pursuant to this section and pay the tax pursuant to	2219
section 5735.062 of the Revised Code. The commissioner may extend	2220
the time for filing reports and may remit all or part of penalties	2221
which may become due under sections 5735.01 to 5735.99 of the	2222
Revised Code. For purposes of this section and sections 5735.062	2223
and 5735.12 of the Revised Code, a report required to be filed	2224
under this section is considered filed when it is received by the	2225
tax commissioner, and remittance of the tax due is considered to	2226
be made when the remittance is received by the tax commissioner or	2227
when credited to an account designated by the treasurer of state	2228
and the tax commissioner for the receipt of tax remittances. The	2229
tax commissioner shall immediately forward to the treasurer of	2230
state all amounts received under this section.	2231

(D) The tax commissioner may require a motor fuel dealer to	2232
file a report for a period other than one month. Such a report,	2233
together with payment of the tax, shall be filed not later than	2234
thirty days after the last day of the prescribed reporting period.	2235

(E) No person required by this section to file a tax report	2236
shall file a false or fraudulent tax report or supporting	2237
schedule.	2238

Sec. 5735.062.  (A) If the total amount of tax required to be	2239
paid under section 5735.06 of the Revised Code for any calendar	2240
year indicated in the following schedule exceeds the amounts	2241
prescribed for that year in the schedulecommissioner so requires,	2242
the dealer shall remit each monthly tax payment in the second	2243
ensuing and each succeeding year by electronic funds transfer	2244
electronically as prescribed by division (B) of this section.	2245

Year 1992         1993 and thereafter Total tax payment $1,200,000         $600,000	2246

If a dealer's total tax payment for each of two consecutive	2247
years beginning with 1993 is six hundred thousand dollars or less,	2248
the dealer is relieved of the requirement to remit taxes by	2249
electronic funds transfer for the year that next follows the	2250
second of the consecutive years in which the total tax payment is	2251
six hundred thousand dollars or less, and is relieved of that	2252
requirement for each succeeding year unless the total tax payment	2253
in a subsequent year exceeds six hundred thousand dollars.	2254

The tax commissioner shall notify each dealer required to	2255
remit taxes by electronic funds transferelectronically of the	2256
dealer's obligation to do so, shall maintain an updated list of	2257
those dealers, and shall timely certify the list and any additions	2258
thereto or deletions therefrom to the treasurer of state. Failure	2259
by the tax commissioner to notify a dealer subject to this section	2260
to remit taxes by electronic funds transferelectronically does	2261
not relieve the dealer of its obligation to remit taxes by	2262
electronic funds transferelectronically.	2263

(B) Dealers required by division (A) of this section to remit	2264
payments by electronic funds transferelectronically shall remit	2265
such payments to the treasurer of state in the manner prescribed	2266
by rules adopted by the treasurer under section 113.061 of the	2267
Revised Code andor through the department of taxation's web site.	2268
Required payments shall be remitted on or before the dates	2269
specified under section 5735.06 of the Revised Code. The payment	2270
of taxes by electronic funds transferelectronically does not	2271
affect a dealer's obligation to file the monthly reportreturn as	2272
required under section 5735.06 of the Revised Code.	2273

A dealer required by this section to remit taxes by	2274
electronic funds transferelectronically may apply to the	2275
treasurer of state in the manner prescribed by the treasurer	2276
commissioner to be excused from that requirement. The treasurer of	2277
statecommissioner may excuse the dealer from the electronic	2278
remittance by electronic funds transferrequirement for good cause	2279
shown for the period of time requested by the dealer or for a	2280
portion of that period. The treasurer shall notify the tax	2281
commissioner and the dealer of the treasurer's decision as soon as	2282
is practicable.	2283

(C) If a dealer required by this section to remit taxes by	2284
electronic funds transfer remits those taxes by some means other	2285
than by electronic funds transfer as prescribed by this section	2286
and the rules adopted by the treasurer of state, and the treasurer	2287
determines that such failure was not due to reasonable cause or	2288
was due to willful neglect, the treasurer shall notify the tax	2289
commissioner of the failure to remit by electronic funds transfer	2290
and shall provide the commissioner with any information used in	2291
making that determination. The taxelectronically fails to do so,	2292
the commissioner may collect an additional charge by assessment in	2293
the manner prescribed by section 5735.12 of the Revised Code. The	2294
additional charge shall equal five per cent of the amount of the	2295
taxes required to be paid by electronic funds transfer, but shall	2296
not exceed five thousand dollars. Any additional charge assessed	2297
under this section is in addition to any other penalty or charge	2298
imposed under this chapter, and shall be considered as revenue	2299
arising from taxes imposed under this chapter. The tax	2300
commissioner may remit all or a portion of such a charge and may	2301
adopt rules governing such remission.	2302

No additional charge shall be assessed under this division	2303
against a dealer that has been notified of its obligation to remit	2304
taxes under this section and that remits its first two tax	2305
payments after such notification by some means other than	2306
electronic funds transfer. The additional charge may be assessed	2307
upon the remittance of any subsequent tax payment that the dealer	2308
remits by some means other than electronic funds transferimpose a	2309
penalty on the dealer not to exceed one of the following:	2310

(1) For the first return period the dealer fails to remit	2311
taxes electronically, the greater of twenty-five dollars or five	2312
per cent of the amount of the payment required to be remitted;	2313

(2) For the second or any subsequent return period the dealer	2314
fails to remit taxes electronically, the greater of fifty dollars	2315
or ten per cent of the amount of the payment required to be	2316
remitted.	2317

The penalty imposed under division (C) of this section is in	2318
addition to any other penalty imposed under this chapter and shall	2319
be considered as revenue arising from the taxes imposed under this	2320
chapter. A penalty may be collected by assessment in the manner	2321
prescribed by section 5735.12 of the Revised Code. The	2322
commissioner may abate all or a portion of a penalty.	2323

(D) The commissioner may adopt rules necessary to administer	2324
this section.	2325

Sec. 5735.07.  Each month the tax commissioner shall make a	2326
list of all motor fuel dealers that have filed a report pursuant	2327
to section 5735.06 of the Revised Code. The list shall contain the	2328
names and addresses of all dealers and, the number of gallons of	2329
motor fuel upon which those dealers were required to pay the tax	2330
as reported on the return or as determined by investigation of the	2331
commissioner, and each dealer's federal identification number or	2332
other motor fuel tax account number. The list shall be open to	2333
public inspection in the office of the commissioner or posted on	2334
the department of taxation's web site.	2335

Sec. 5735.09.  (A) Every railroad company, every street,	2336
suburban, or interurban railroad company, every pipe line company,	2337
and every water transportation company, which transports motor	2338
fuel, either in interstate or in intrastate commerce, to points	2339
within this state, and every person who transports motor fuel by	2340
any manner to a point in this state,transporter shall report all	2341
deliveries of motor fuel made to points within this state to	2342
register with the tax commissioner on formsa form prescribed by	2343
the tax commissioner.	2344

Each transporter shall report all deliveries of motor fuel	2345
made to points in this state to the commissioner on forms	2346
prescribed by the commissioner. Such reports shall cover monthly	2347
periods, shall be submitted within thirty days after the close of	2348
the month covered by the report, shall show the name and address	2349
of the person to whom the deliveries of motor fuel were actually	2350
made, the name and address of the person that assumes ownership of	2351
the motor fuel, the point of origin, the point of delivery, the	2352
date of delivery, and the number and initials of each car if	2353
shipped by rail, the quantity of each shipment and delivery in	2354
gallons, the date delivered, the name of the person to whom	2355
delivered, the point of shipment, the point of delivery, the name	2356
of the boat or barge if delivered by water, and if delivered by	2357
other means, the manner in which such delivery is made.	2358

(B) No person required by this section to file a report shall	2359
file a false or fraudulent report or supporting schedule.	2360

Sec. 5735.12.  (A) Any motor fuel dealerperson required by	2361
this chapter to file reports andor pay the tax levied by this	2362
chapter who fails to file the reportdo so within the time	2363
prescribed, may be liable for an additional charge not exceeding	2364
the greater of ten per cent of the motor fuel dealer'sperson's	2365
tax liability for that month or fifty dollars. The tax	2366
commissioner may remit all or a portion of the additional charge	2367
and may adopt rules relating to the remission of all or a portion	2368
of the charge.	2369

If any person required by this chapter to file reports andor	2370
pay the taxes, interest, or additional charge levied by this	2371
chapter fails to file the report, files an incomplete or incorrect	2372
report, or fails to remit the full amount of the tax, interest, or	2373
additional charge due for the period covered by the report, the	2374
commissioner may make an assessment against the person based upon	2375
any information in the commissioner's possession.	2376

No assessment shall be made against any motor fuel dealer for	2377
taxes imposed by this chapter more than four years after the date	2378
on which the report on which the assessment was based was due or	2379
was filed, whichever is later. This section does not bar an	2380
assessment against any motor fuel dealer who fails to file a	2381
report required by section 5735.06 of the Revised Code, or who	2382
files a fraudulent motor fuel tax report.	2383

A penalty of up to fifteen per cent may be added to the	2384
amount of every assessment made under this section. The	2385
commissioner may adopt rules providing for the imposition and	2386
remission of penalties added to assessments made under this	2387
section.	2388

The commissioner shall give the party assessed written notice	2389
of the assessment in the manner provided in section 5703.37 of the	2390
Revised Code. With the notice, the commissioner shall provide	2391
instructions on how to petition for reassessment and request a	2392
hearing on the petition.	2393

(B) Unless the party assessed files with the tax commissioner	2394
within sixty days after service of the notice of assessment,	2395
either personally or by certified mail, a written petition for	2396
reassessment in writing, signed by the party assessed or that	2397
party's authorized agent having knowledge of the facts, the	2398
assessment becomes final and the amount of the assessment is due	2399
and payable from the party assessed to the treasurer of state. The	2400
petition shall indicate the objections of the party assessed, but	2401
additional objections may be raised in writing if received by the	2402
commissioner prior to the date shown on the final determination.	2403
If the petition has been properly filed, the commissioner shall	2404
proceed under section 5703.60 of the Revised Code.	2405

(C) After an assessment becomes final, if any portion of the	2406
assessment remains unpaid, including accrued interest, a certified	2407
copy of the tax commissioner's entry making the assessment final	2408
may be filed in the office of the clerk of the court of common	2409
pleas in the county in which the party assessed resides or in	2410
which the business of the party assessed is conducted. If the	2411
party assessed maintains no place of business in this state and is	2412
not a resident of this state, the certified copy of the entry may	2413
be filed in the office of the clerk of the court of common pleas	2414
of Franklin county.	2415

Immediately upon the filing of the entry, the clerk shall	2416
enter a judgment for the state against the party assessed in the	2417
amount shown on the entry. The judgment may be filed by the clerk	2418
in a loose-leaf book entitled "special judgments for state motor	2419
fuel tax," and shall have the same effect as other judgments.	2420
Execution shall issue upon the judgment upon the request of the	2421
tax commissioner, and all laws applicable to sales on execution	2422
shall apply to sales made under the judgment.	2423

If the assessment is not paid in its entirety within sixty	2424
days after the day the assessment was issued, the portion of the	2425
assessment consisting of tax due shall bear interest at the rate	2426
per annum prescribed by section 5703.47 of the Revised Code from	2427
the day the commissioner issues the assessment until it is paid or	2428
until it is certified to the attorney general for collection under	2429
section 131.02 of the Revised Code, whichever comes first. If the	2430
unpaid portion of the assessment is certified to the attorney	2431
general for collection, the entire unpaid portion of the	2432
assessment shall bear interest at the rate per annum prescribed by	2433
section 5703.47 of the Revised Code from the date of certification	2434
until the date it is paid in its entirety. Interest shall be paid	2435
in the same manner as the tax and may be collected by the issuance	2436
of an assessment under this section.	2437

(D) All money collected by the tax commissioner under this	2438
section shall be paid to the treasurer of state, and when paid	2439
shall be considered as revenue arising from the tax imposed by	2440
this chapter.	2441

(E) If the tax commissioner determines that the commissioner	2442
has erroneously refunded motor fuel tax to any person, the	2443
commissioner may make an assessment against the person for	2444
recovery of the erroneously refunded tax.	2445

Sec. 5735.141.  Any retail dealer of motor fuel shall receive	2446
a refund for Ohio motor fuel taxes paid on fuel lost by a retail	2447
dealer through shrinkage and evaporation. This refund shall be one	2448
per cent of the Ohio motor fuel taxes paid on fuel purchased	2449
during any semiannual period ending the thirtieth day of June or	2450
the thirty-first day of December.	2451

In order to receive a refund, the retail dealer shall file	2452
with the tax commissioner, within one hundred twenty days after	2453
the thirtieth day of June and the thirty-first day of December of	2454
each year, an application for a refund stating the quantity of	2455
motor fuel that was purchased for resale by the applicant during	2456
the preceding semiannual period ending the thirtieth day of June	2457
or the thirty-first day of December and upon which the motor fuel	2458
tax has been paid. No person shall file a claim for the tax on	2459
fewer than one hundred gallons of motor fuel. The form and	2460
contents of the application shall be prescribed by the	2461
commissioner, and the application shall be signed in accordance	2462
with section 5703.25 of the Revised Code. On the filing of the	2463
application, the commissioner shall determine the amount of refund	2464
to which the applicant is entitled. If the amount is not less than	2465
that claimed, the commissioner shall certify the amount to the	2466
director of budget and management and treasurer of state for	2467
payment from the tax refund fund created by section 5703.052 of	2468
the Revised Code. If the amount is less than that claimed, the	2469
commissioner shall proceed in accordance with section 5703.70 of	2470
the Revised Code.	2471

No refund shall be authorized or ordered under this section	2472
for any single claim for the tax on fewer than one hundred gallons	2473
of motor fuel.	2474

The refund authorized by this section or section 5703.70 of	2475
the Revised Code shall be reduced by the cents per gallon amount	2476
of any qualified fuel credit received under section 5735.145 of	2477
the Revised Code, as determined by the commissioner, for each	2478
gallon of qualified fuel included in the total gallonage of motor	2479
fuel upon which the refund is computed.	2480

The right to receive any refund under this section or section	2481
5703.70 of the Revised Code is not assignable. The payment of the	2482
refund shall not be made to any person other than the retail	2483
dealer originally entitled thereto, except that the refund may be	2484
paid to the executor, administrator, receiver, trustee in	2485
bankruptcy, or assignee in insolvency proceedings of such	2486
retailer.	2487

A motor fuel dealer shall be deemed to be a retail dealer	2488
when acting in a retail capacity.	2489

For the purpose of administering this section, the	2490
commissioner may provide a retail dealer with information related	2491
to a wholesale dealer, including the wholesale dealer's federal	2492
identification number or other motor fuel tax account number.	2493

Sec. 5735.23.  (A) Out of receipts from the tax levied by	2494
section 5735.05 of the Revised Code, the treasurer of state shall	2495
place to the credit of the tax refund fund established by section	2496
5703.052 of the Revised Code amounts equal to the refunds	2497
certified by the tax commissioner pursuant to sections 5735.13,	2498
5735.14, 5735.141, and 5735.142, and 5735.16 of the Revised Code.	2499
The treasurer of state shall then transfer the amount required by	2500
section 5735.051 of the Revised Code to the waterways safety fund,	2501
the amount required by section 4907.472 of the Revised Code to the	2502
grade crossing protection fund, and the amount required by section	2503
5735.053 of the Revised Code to the motor fuel tax administration	2504
fund.	2505

(B) Except as provided in division (D) of this section, each	2506
month the balance of the receipts from the tax levied by section	2507
5735.05 of the Revised Code shall be credited, after receipt by	2508
the treasurer of state of certification from the commissioners of	2509
the sinking fund, as required by section 5528.35 of the Revised	2510
Code, that there are sufficient moneys to the credit of the	2511
highway obligations bond retirement fund to meet in full all	2512
payments of interest, principal, and charges for the retirement of	2513
highway obligations issued pursuant to Section 2i of Article VIII,	2514
Ohio Constitution, and sections 5528.30 and 5528.31 of the Revised	2515
Code due and payable during the current calendar year, as follows:	2516

(1) To the state and local government highway distribution	2517
fund, which is hereby created in the state treasury, an amount	2518
that is the same percentage of the balance to be credited as that	2519
portion of the tax per gallon determined under division (B)(2)(a)	2520
of section 5735.06 of the Revised Code is of the total tax per	2521
gallon determined under divisions (B)(2)(a) and (b) of that	2522
section.	2523

(2) After making the distribution to the state and local	2524
government highway distribution fund, the remainder shall be	2525
credited as follows:	2526

(a) Thirty per cent to the gasoline excise tax fund for	2527
distribution pursuant to division (A)(1) of section 5735.27 of the	2528
Revised Code;	2529

(b) Twenty-five per cent to the gasoline excise tax fund for	2530
distribution pursuant to division (A)(3) of section 5735.27 of the	2531
Revised Code;	2532

(c) Except as provided in division (D) of this section,	2533
forty-five per cent to the highway operating fund for distribution	2534
pursuant to division (B)(1) of section 5735.27 of the Revised	2535
Code.	2536

(C) From the balance in the state and local government	2537
highway distribution fund on the last day of each month there	2538
shall be paid the following amounts:	2539

(1) To the local transportation improvement program fund	2540
created by section 164.14 of the Revised Code, an amount equal to	2541
a fraction of the balance in the state and local government	2542
highway distribution fund, the numerator of which fraction is one	2543
and the denominator of which fraction is that portion of the tax	2544
per gallon determined under division (B)(2)(a) of section 5735.06	2545
of the Revised Code;	2546

(2) An amount equal to five cents multiplied by the number of	2547
gallons of motor fuel sold at stations operated by the Ohio	2548
turnpike and infrastructure commission, such gallonage to be	2549
certified by the commission to the treasurer of state not later	2550
than the last day of the month following. The funds paid to the	2551
commission pursuant to this section shall be expended for the	2552
construction, reconstruction, maintenance, and repair of turnpike	2553
projects, except that the funds may not be expended for the	2554
construction of new interchanges. The funds also may be expended	2555
for the construction, reconstruction, maintenance, and repair of	2556
those portions of connecting public roads that serve existing	2557
interchanges and are determined by the commission and the director	2558
of transportation to be necessary for the safe merging of traffic	2559
between the turnpike and those public roads.	2560

The remainder of the balance shall be distributed as follows	2561
on the fifteenth day of the following month:	2562

(a) Ten and seven-tenths per cent shall be paid to municipal	2563
corporations for distribution pursuant to division (A)(1) of	2564
section 5735.27 of the Revised Code and may be used for any	2565
purpose for which payments received under that division may be	2566
used. Through July 15, 2005, the sum of two hundred forty-eight	2567
thousand six hundred twenty-five dollars shall be monthly	2568
subtracted from the amount so computed and credited to the highway	2569
operating fund. Beginning August 15, 2005, the sum of seven	2570
hundred forty-five thousand eight hundred seventy-five dollars	2571
shall be monthly subtracted from the amount so computed and	2572
credited to the highway operating fund.	2573

(b) Five per cent shall be paid to townships for distribution	2574
pursuant to division (A)(5) of section 5735.27 of the Revised Code	2575
and may be used for any purpose for which payments received under	2576
that division may be used. Through July 15, 2005, the sum of	2577
eighty-seven thousand seven hundred fifty dollars shall be monthly	2578
subtracted from the amount so computed and credited to the highway	2579
operating fund. Beginning August 15, 2005, the sum of two hundred	2580
sixty-three thousand two hundred fifty dollars shall be monthly	2581
subtracted from the amount so computed and credited to the highway	2582
operating fund.	2583

(c) Nine and three-tenths per cent shall be paid to counties	2584
for distribution pursuant to division (A)(3) of section 5735.27 of	2585
the Revised Code and may be used for any purpose for which	2586
payments received under that division may be used. Through July	2587
15, 2005, the sum of two hundred forty-eight thousand six hundred	2588
twenty-five dollars shall be monthly subtracted from the amount so	2589
computed and credited to the highway operating fund. Beginning	2590
August 15, 2005, the sum of seven hundred forty-five thousand	2591
eight hundred seventy-five dollars shall be monthly subtracted	2592
from the amount so computed and credited to the highway operating	2593
fund.	2594

(d) Except as provided in division (D) of this section, the	2595
balance shall be transferred to the highway operating fund and	2596
used for the purposes set forth in division (B)(1) of section	2597
5735.27 of the Revised Code.	2598

(D) Monthly from September to February of each fiscal year,	2599
an amount equal to one-sixth of the amount certified in July of	2600
that year by the treasurer of state pursuant to division (Q) of	2601
section 151.01 of the Revised Code shall, from amounts required to	2602
be credited or transferred to the highway operating fund pursuant	2603
to division (B)(2)(c) or (C)(2)(d) of this section, be credited or	2604
transferred to the highway capital improvement bond service fund	2605
created in section 151.06 of the Revised Code. If, in any of those	2606
months, the amount available to be credited or transferred to the	2607
bond service fund is less than one-sixth of the amount so	2608
certified, the shortfall shall be added to the amount due the next	2609
succeeding month. Any amount still due at the end of the six-month	2610
period shall be credited or transferred as the money becomes	2611
available, until such time as the office of budget and management	2612
receives certification from the treasurer of state or the	2613
treasurer of state's designee that sufficient money has been	2614
credited or transferred to the bond service fund to meet in full	2615
all payments of debt service and financing costs due during the	2616
fiscal year from that fund.	2617

Sec. 5736.06.  (A) No person subject to the tax imposed by	2618
section 5736.02 of the Revised Code shall distribute, import, or	2619
cause the importation of motor fuel for consumption in this state	2620
without holding a supplier's license issued by the tax	2621
commissioner to engage in such activities.	2622

(B)(1) A person subject to the tax imposed by section 5736.02	2623
of the Revised Code shall, on or before March 1, 2014, or within	2624
thirty days of first becoming subject to the tax imposed by this	2625
chapter, whichever is earlier, apply to the tax commissioner for a	2626
supplier's license on the form prescribed by the commissioner.	2627

(2) Each person issued a supplier's license under division	2628
(B)(1) of this section shall apply to renew the license on or	2629
before the first day of March of each year.	2630

(3) With each license application submitted under division	2631
(B)(1) or (2) of this section, the applicant shall pay an	2632
application fee equal to one of the following amounts:	2633

(a) If the applicant solely imports or causes the importation	2634
of motor fuel for sale, exchange, or transfer by the person in	2635
this state, three hundred dollars;	2636

(b) If the applicant engages in activities in addition to	2637
those described in division (B)(3)(a) of this section, one	2638
thousand dollars.	2639

If an applicant timely submits an application under division	2640
(B)(1) of this section on or after the first day of September of	2641
any year, the fee that would apply to the applicant under division	2642
(B)(3)(a) or (b) of this section shall be reduced by one-half.	2643

(4) The failure to apply to the commissioner for a supplier's	2644
license does not relieve a person from the requirement to file	2645
returns and pay the tax imposed by this chapter.	2646

(C) The tax commissioner may refuse to issue a license to any	2647
applicant under this section in the following circumstances:	2648

(1) The applicant has previously had any license canceled for	2649
cause by the commissioner.	2650

(2) The commissioner believes that the application is not	2651
filed in good faith or is filed as a subterfuge in an attempt to	2652
procure a license for another person.	2653

(3) The applicant has violated any provision of this chapter.

2654

(D) If the tax commissioner refuses to issue a license to an	2655
applicant under this section, the applicant is entitled to a	2656
refund of the application fee in accordance with section 5736.08	2657
of the Revised Code. All application fees collected under this	2658
section shall be deposited into the motor fuel receiptspetroleum	2659
activity tax administration fund created in section 5736.13 of the	2660
Revised Code.	2661

(E) No person shall make a false or fraudulent statement on	2662
an application required by this section.	2663

Sec. 5736.09.  (A) The tax commissioner may make an	2664
assessment, based on any information in the commissioner's	2665
possession, against any person that fails to file a return or pay	2666
any tax as required by this chapter. The commissioner shall give	2667
the person assessed written notice of the assessment as provided	2668
in section 5703.37 of the Revised Code. With the notice, the	2669
commissioner shall provide instructions on the manner in which to	2670
petition for reassessment and request a hearing with respect to	2671
the petition.	2672

(B) Unless the person assessed, within sixty days after	2673
service of the notice of assessment, files with the commissioner,	2674
either personally or by certified mail, a written petition signed	2675
by the person or the person's authorized agent having knowledge of	2676
the facts, the assessment becomes final, and the amount of the	2677
assessment is due and payable from the person assessed to the	2678
treasurer of state. The petition shall indicate the objections of	2679
the person assessed, but additional objections may be raised in	2680
writing if received by the commissioner prior to the date shown on	2681
the final determination.	2682

If a petition for reassessment has been properly filed, the	2683
commissioner shall proceed under section 5703.60 of the Revised	2684
Code.	2685

(C)(1) After an assessment becomes final, if any portion of	2686
the assessment, including accrued interest, remains unpaid, a	2687
certified copy of the commissioner's entry making the assessment	2688
final may be filed in the office of the clerk of the court of	2689
common pleas in the county in which the person resides or has its	2690
principal place of business in this state, or in the office of the	2691
clerk of court of common pleas of Franklin county.	2692

(2) Immediately upon the filing of the entry, the clerk shall	2693
enter judgment for the state against the person assessed in the	2694
amount shown on the entry. The judgment may be filed by the clerk	2695
in a loose-leaf book entitled, "special judgments for the motor	2696
fuel receiptspetroleum activity tax" and shall have the same	2697
effect as other judgments. Execution shall issue upon the judgment	2698
at the request of the commissioner, and all laws applicable to	2699
sales on execution shall apply to sales made under the judgment.	2700

(3) If the assessment is not paid in its entirety within	2701
sixty days after the day the assessment was issued, the portion of	2702
the assessment consisting of tax due shall bear interest at the	2703
rate per annum prescribed by section 5703.47 of the Revised Code	2704
from the day the commissioner issues the assessment until it is	2705
paid or until it is certified to the attorney general for	2706
collection under section 131.02 of the Revised Code, whichever	2707
comes first. If the unpaid portion of the assessment is certified	2708
to the attorney general for collection, the entire unpaid portion	2709
of the assessment shall bear interest at the rate per annum	2710
prescribed by section 5703.47 of the Revised Code from the date of	2711
certification until the date it is paid in its entirety. Interest	2712
shall be paid in the same manner as the tax and may be collected	2713
by the issuance of an assessment under this section.	2714

(D) If the commissioner believes that collection of the tax	2715
will be jeopardized unless proceedings to collect or secure	2716
collection of the tax are instituted without delay, the	2717
commissioner may issue a jeopardy assessment against the person	2718
liable for the tax. Immediately upon the issuance of the jeopardy	2719
assessment, the commissioner shall file an entry with the clerk of	2720
the court of common pleas in the manner prescribed by division (C)	2721
of this section. Notice of the jeopardy assessment shall be served	2722
on the person assessed or the person's authorized agent in the	2723
manner provided in section 5703.37 of the Revised Code within five	2724
days of the filing of the entry with the clerk. The total amount	2725
assessed is immediately due and payable, unless the person	2726
assessed files a petition for reassessment in accordance with	2727
division (B) of this section and provides security in a form	2728
satisfactory to the commissioner and in an amount sufficient to	2729
satisfy the unpaid balance of the assessment. Full or partial	2730
payment of the assessment does not prejudice the commissioner's	2731
consideration of the petition for reassessment.	2732

(E) The commissioner shall immediately forward to the	2733
treasurer of state all amounts the commissioner receives under	2734
this section, and such amounts shall be considered as revenue	2735
arising from the tax imposed under this chapter.	2736

(F) Except as otherwise provided in this division, no	2737
assessment shall be made or issued against a taxpayer for the tax	2738
imposed under this chapter more than four years after the due date	2739
for the filing of the return for the tax period for which the tax	2740
was reported, or more than four years after the return for the tax	2741
period was filed, whichever is later. The time limit may be	2742
extended if both the taxpayer and the commissioner consent in	2743
writing to the extension or enter into an agreement waiving or	2744
extending the time limit. Any such extension shall extend the	2745
four-year time limit in division (A) of section 5736.08 of the	2746
Revised Code for the same period of time. Nothing in this division	2747
bars an assessment against a taxpayer that fails to file a return	2748
required by this chapter or that files a fraudulent return.	2749

(G) If the commissioner possesses information that indicates	2750
that the amount of tax a taxpayer is required to pay under this	2751
chapter exceeds the amount the taxpayer paid, the commissioner may	2752
audit a sample of the taxpayer's gross receipts over a	2753
representative period of time to ascertain the amount of tax due,	2754
and may issue an assessment based on the audit. The commissioner	2755
shall make a good faith effort to reach agreement with the	2756
taxpayer in selecting a representative sample. The commissioner	2757
may apply a sampling method only if the commissioner has	2758
prescribed the method by rule.	2759

(H) If the whereabouts of a person subject to this chapter is	2760
not known to the commissioner, the commissioner shall follow the	2761
procedures under section 5703.37 of the Revised Code.	2762

Sec. 5736.13.  (A) For the purpose of receiving, accounting	2763
for, and distributing revenue received from the tax imposed by	2764
section 5736.02 of the Revised Code, the following funds are	2765
hereby created in the state treasury:	2766

(1) The motor fuel receiptspetroleum activity tax fund;

2767

(2) The motor fuel receiptspetroleum activity tax	2768
administration fund. All amounts credited to the motor fuel	2769
receiptspetroleum activity tax administration fund shall be used	2770
solely for the purpose of paying the expenses of the department of	2771
taxation incident to the administration of the tax imposed by	2772
section 5736.02 of the Revised Code.	2773

(3) The motor fuel receiptspetroleum activity tax public	2774
highways fund.	2775

(B) All money collected from the tax imposed by section	2776
5736.02 of the Revised Code shall be deposited into the motor fuel	2777
receiptspetroleum activity tax fund.	2778

(C) From the motor fuel receiptspetroleum activity tax fund,	2779
the director of budget and management shall place to the credit of	2780
the tax refund fund established by section 5703.052 of the Revised	2781
Code amounts equal to the refunds certified by the tax	2782
commissioner pursuant to section 5736.08 of the Revised Code.	2783

(D) Not later than the last day of March, June, September,	2784
and December of each year, the director of budget and management	2785
shall provide for the transfer of the balance of the motor fuel	2786
receiptspetroleum activity tax fund as of the last day of the	2787
preceding month, excluding any amounts required to be transferred	2788
as provided in division (C) of this section, as follows:	2789

(1) To the motor fuel receiptspetroleum activity tax	2790
administration fund, one per cent;	2791

(2) To the motor fuel receiptspetroleum activity tax public	2792
highways fund, an amount that bears the same ratio to the balance	2793
in the motor fuel receiptspetroleum activity tax fund, after	2794
subtracting the amount transferred under division (D)(1) of this	2795
section, that (a) the gross receipts attributed to motor fuel used	2796
for propelling vehicles on public highways and waterways as	2797
indicated by returns filed by the last day of the preceding month,	2798
bears to (b) all gross receipts as indicated by those returns;	2799

(3) To the general revenue fund, the amount remaining after	2800
the transfers required by divisions (D)(1) and (2) of this	2801
section.	2802

Sec. 5736.50. (A) A taxpayer granted a credit by the tax	2803
credit authority under section 122.17 or division (B)(2) or (3) of	2804
section 122.171 of the Revised Code may claim a refundable credit	2805
against the tax imposed under this chapter. For the purpose of	2806
making tax payments under this chapter, taxes equal to the amount	2807
of the refundable credit shall be considered to be paid on the	2808
first day of the tax period.	2809

(B) A taxpayer granted a credit by the tax credit authority	2810
under division (B)(1) of section 122.171 of the Revised Code may	2811
claim a nonrefundable tax credit against the tax imposed under	2812
this chapter.	2813

(C) Credits authorized in division (A) or (B) of this section	2814
shall not be claimed for any tax period beginning after the date	2815
on which a relocation of employment positions occurs in violation	2816
of an agreement entered into under section 122.17 or 122.171 of	2817
the Revised Code.	2818

(D) A taxpayer may claim any unused portion of the credit	2819
authorized under division (B) of section 5751.50 of the Revised	2820
Code against the tax imposed under this chapter. No credit shall	2821
be allowed under this division if the credit was available against	2822
the tax imposed under section 5751.02 of the Revised Code except	2823
to the extent the credit was not applied against that tax.	2824

Sec. 5743.01.  As used in this chapter:

2825

(A) "Person" includes individuals, firms, partnerships,	2826
associations, joint-stock companies, corporations, combinations of	2827
individuals of any form, and the state and any of its political	2828
subdivisions.	2829

(B) "Wholesale dealer" includes only those persons:

2830

(1) Who bring in or cause to be brought into this state	2831
unstamped cigarettes purchased directly from the manufacturer,	2832
producer, or importer of cigarettes for sale in this state but	2833
does not include persons who bring in or cause to be brought into	2834
this state cigarettes with respect to which no evidence of tax	2835
payment is required thereon as provided in section 5743.04 of the	2836
Revised Code; or	2837

(2) Who are engaged in the business of selling cigarettes or	2838
tobacco products to others for the purpose of resale.	2839

"Wholesale dealer" does not include any cigarette	2840
manufacturer, export warehouse proprietor, or importer with a	2841
valid permit under 26 U.S.C. 5713 if that person sells cigarettes	2842
in this state only to wholesale dealers holding valid and current	2843
licenses under section 5743.15 of the Revised Code or to an export	2844
warehouse proprietor or another manufacturer.	2845

(C) "Retail dealer" includes:

2846

(1) In reference to dealers in cigarettes, every person other	2847
than a wholesale dealer engaged in the business of selling	2848
cigarettes in this state, regardless of whether the person is	2849
located in this state or elsewhere, and regardless of quantity,	2850
amount, or number of sales;	2851

(2) In reference to dealers in tobacco products, any person	2852
in this state engaged in the business of selling tobacco products	2853
to ultimate consumers in this state, regardless of quantity,	2854
amount, or number of sales.	2855

(D) "Sale" includes exchange, barter, gift, offer for sale,	2856
and distribution, and includes transactions in interstate or	2857
foreign commerce.	2858

(E) "Cigarettes" includes any roll for smoking made wholly or	2859
in part of tobacco, irrespective of size or shape, and whether or	2860
not such tobacco is flavored, adulterated, or mixed with any other	2861
ingredient, the wrapper or cover of which is made of paper,	2862
reconstituted cigarette tobacco, homogenized cigarette tobacco,	2863
cigarette tobacco sheet, or any similar materials other than cigar	2864
tobacco.	2865

(F) "Package" means the individual package, box, or other	2866
container in or from which retail sales of cigarettes are normally	2867
made or intended to be made.	2868

(G) "Stamp" includes an impression made by a metering device	2869
as provided for in section 5743.04 of the Revised Code.	2870

(H) "Storage" includes any keeping or retention of cigarettes	2871
or tobacco products for use or consumption in this state.	2872

(I)(H) "Use" includes the exercise of any right or power	2873
incidental to the ownership of cigarettes or tobacco products.	2874

(J)(I) "Tobacco product" or "other tobacco product" means any	2875
product made from tobacco, other than cigarettes, that is made for	2876
smoking or chewing, or both, and snuff.	2877

(K)(J) "Wholesale price" means the invoice price, including	2878
all federal excise taxes, at which the manufacturer of the tobacco	2879
product sells the tobacco product to unaffiliated distributors,	2880
excluding any discounts based on the method of payment of the	2881
invoice or on time of payment of the invoice. If the taxpayer buys	2882
from other than a manufacturer, "wholesale price" means the	2883
invoice price, including all federal excise taxes and excluding	2884
any discounts based on the method of payment of the invoice or on	2885
time of payment of the invoice.	2886

(L)(K) "Distributor" means:

2887

(1) Any manufacturer who sells, barters, exchanges, or	2888
distributes tobacco products to a retail dealer in the state,	2889
except when selling to a retail dealer that has filed with the	2890
manufacturer a signed statement agreeing to pay and be liable for	2891
the tax imposed by section 5743.51 of the Revised Code;	2892

(2) Any wholesale dealer located in the state who receives	2893
tobacco products from a manufacturer, or who receives tobacco	2894
products on which the tax imposed by this chapter has not been	2895
paid;	2896

(3) Any wholesale dealer located outside the state who sells,	2897
barters, exchanges, or distributes tobacco products to a wholesale	2898
or retail dealer in the state; or	2899

(4) Any retail dealer who receives tobacco products on which	2900
the tax has not or will not be paid by another distributor,	2901
including a retail dealer that has filed a signed statement with a	2902
manufacturer in which the retail dealer agrees to pay and be	2903
liable for the tax that would otherwise be imposed on the	2904
manufacturer by section 5743.51 of the Revised Code.	2905

(M)(L) "Taxpayer" means any person liable for the tax imposed	2906
by section 5743.51, 5743.62, or 5743.63 of the Revised Code.	2907

(N)(M) "Seller" means any person located outside this state	2908
engaged in the business of selling tobacco products to consumers	2909
for storage, use, or other consumption in this state.	2910

(O)(N) "Manufacturer" means any person who manufactures and	2911
sells cigarettes or tobacco products.	2912

(P)(O) "Importer" means any person that is authorized, under	2913
a valid permit issued under Section 5713 of the Internal Revenue	2914
Code, to import finished cigarettes into the United States, either	2915
directly or indirectly.	2916

(Q)(P) "Little cigar" means any roll for smoking, other than	2917
cigarettes, made wholly or in part of tobacco that uses an	2918
integrated cellulose acetate filter or other filter and is wrapped	2919
in any substance containing tobacco, other than natural leaf	2920
tobacco.	2921

Sec. 5743.021.  (A) As used in this section, "qualifying	2922
regional arts and cultural district" means a regional arts and	2923
cultural district created under section 3381.04 of the Revised	2924
Code in a county having a population of one million two hundred	2925
thousand or more according to the 2000 federal decennial census.	2926

(B) For one or more of the purposes for which a tax may be	2927
levied under section 3381.16 of the Revised Code and for the	2928
purposes of paying the expenses of administering the tax and the	2929
expenses charged by a board of elections to hold an election on a	2930
question submitted under this section, the board of county	2931
commissioners of a county that has within its territorial	2932
boundaries a qualifying regional arts and cultural district may	2933
levy a tax on the sale of cigarettes sold for resale at retail in	2934
the county composing the district. The rate of the tax, when added	2935
to the rate of any other tax concurrently levied by the board	2936
under this section, shall not exceed fifteen mills per cigarette,	2937
and shall be computed on each cigarette sold. Only one sale of the	2938
same article shall be used in computing the amount of tax due. The	2939
tax may be levied for any number of years not exceeding ten years.	2940

The tax shall be levied pursuant to a resolution of the board	2941
of county commissioners approved by a majority of the electors in	2942
the county voting on the question of levying the tax. The	2943
resolution shall specify the rate of the tax, the number of years	2944
the tax will be levied, and the purposes for which the tax is	2945
levied. The election may be held on the date of a general,	2946
primary, or special election held not sooner than ninety days	2947
after the date the board certifies its resolution to the board of	2948
elections. If approved by the electors, the tax shall take effect	2949
on the first day of the month specified in the resolution but not	2950
sooner than the first day of the month that is at least sixty days	2951
after the certification of the election results by the board of	2952
elections. A copy of the resolution levying the tax shall be	2953
certified to the tax commissioner at least sixty days prior to the	2954
date on which the tax is to become effective.	2955

(C) The form of the ballot in an election held under this	2956
section shall be as follows, or in any other form acceptable to	2957
the secretary of state:	2958

"For the purpose of .......... (insert the purpose or	2959
purposes of the tax), shall an excise tax be levied throughout	2960
.......... County for the benefit of the ........... (name of the	2961
qualifying regional arts and cultural district) on the sale of	2962
cigarettes at wholesale at the rate of .... mills per cigarette	2963
for ..... years?	2964

2965

		For the tax			2966
		Against the tax	"		2967

(D) The treasurer of state shall credit all moneysAll money	2968
arising from taxes levied on behalf of each district under this	2969
section and section 5743.321 of the Revised Code shall be credited	2970
as follows:	2971

(1) To the tax refund fund created by section 5703.052 of the	2972
Revised Code, amounts equal to the refunds from each tax levied	2973
under this section certified by the tax commissioner pursuant to	2974
section 5743.05 of the Revised Code;	2975

(2) Following the crediting of amounts pursuant to division	2976
(D)(1) of this section:	2977

(a) To the permissive tax distribution fund created under	2978
section 4301.423 of the Revised Code, an amount equal to	2979
ninety-eight per cent of the remainder collected;	2980

(b) To the local excise tax administrative fund, which is	2981
hereby created in the state treasury, an amount equal to two per	2982
cent of such remainder, for use by the tax commissioner in	2983
defraying costs incurred in administering the tax.	2984

On or before the second working day of each month, the	2985
treasurer of state shall certify to the tax commissioner the	2986
amount of taxes levied on behalf of each district under sections	2987
5743.021 and 5743.321 of the Revised Code and paid to the	2988
treasurer of state during the preceding month.	2989

On or before the tenth day of each month, the tax	2990
commissioner shall distribute the amount credited to the	2991
permissive tax distribution fund during the preceding month by	2992
providing for payment of the appropriate amount to the county	2993
treasurer of the county in which the tax is levied.	2994

Sec. 5743.024.  (A) For the purposes of section 307.696 of	2995
the Revised Code, to pay the expenses of administering the tax,	2996
and to pay any or all of the charge the board of elections makes	2997
against the county to hold the election on the question of levying	2998
the tax, or for such purposes and to provide revenues to the	2999
county for permanent improvements, the board of county	3000
commissioners may levy a tax on sales of cigarettes sold for	3001
resale at retail in the county. The tax shall not exceed two and	3002
twenty-five hundredths of a mill per cigarette, and shall be	3003
computed on each cigarette sold. The tax may be levied for any	3004
number of years not exceeding twenty. Only one sale of the same	3005
article shall be used in computing the amount of tax due.	3006

The tax shall be levied pursuant to a resolution of the	3007
county commissioners approved by a majority of the electors in the	3008
county voting on the question of levying the tax. The resolution	3009
shall specify the rate of the tax, the number of years the tax	3010
will be levied, and the purposes for which the tax is levied. Such	3011
election may be held on the date of a general or special election	3012
held not sooner than ninety days after the date the board	3013
certifies its resolution to the board of elections. If approved by	3014
the electors, the tax shall take effect on the first day of the	3015
month specified in the resolution but not sooner than the first	3016
day of the month that is at least sixty days after the	3017
certification of the election results by the board of elections. A	3018
copy of the resolution levying the tax shall be certified to the	3019
tax commissioner at least sixty days prior to the date on which	3020
the tax is to become effective.	3021

A resolution under this section may be joined on the ballot	3022
as a single question with a resolution adopted under section	3023
307.697 or 4301.421 of the Revised Code to levy a tax for the same	3024
purposes and for the purpose of paying the expenses of	3025
administering the tax. The form of the ballot in an election held	3026
pursuant to this section shall be as prescribed in section 307.697	3027
of the Revised Code.	3028

(B) The treasurer of state shall credit all moneysAll money	3029
arising from each county's taxes levied under this section and	3030
section 5743.323 of the Revised Code shall be credited as follows:	3031

(1) To the tax refund fund created by section 5703.052 of the	3032
Revised Code, amounts equal to the refunds from each tax levied	3033
under this section certified by the tax commissioner pursuant to	3034
section 5743.05 of the Revised Code;	3035

(2) Following the crediting of amounts pursuant to division	3036
(B)(1) of this section:	3037

(a) To the permissive tax distribution fund created by	3038
division (B)(1) of section 4301.423 of the Revised Code, an amount	3039
equal to ninety-eight per cent of the remainder collected;	3040

(b) To the local excise tax administrative fund, which is	3041
hereby created in the state treasury, an amount equal to two per	3042
cent of such remainder, for use by the tax commissioner in	3043
defraying costs incurred in administering the tax.	3044

On or before the second working day of each month, the	3045
treasurer of state shall certify to the tax commissioner the	3046
amount of each county's taxes levied under sections 5743.024 and	3047
5743.323 of the Revised Code and paid to the treasurer of state	3048
during the preceding month.	3049

On or before the tenth day of each month, the tax	3050
commissioner shall distribute the amount credited to the	3051
permissive tax distribution fund during the preceding month by	3052
providing for payment of the appropriate amount to the county	3053
treasurer of each county levying the tax.	3054

(C) The board of county commissioners of a county in which a	3055
tax is imposed under this section on the effective date of the	3056
amendment of this section by H.B. 59 of the 130th general	3057
assembly, September 29, 2013, may levy a tax for the purpose of	3058
section 307.673 of the Revised Code regardless of whether or not	3059
the cooperative agreement authorized under that section has been	3060
entered into prior to the day the resolution adopted under	3061
division (C)(1) or (2) of this section is adopted, for the purpose	3062
of reimbursing a county for costs incurred in the construction of	3063
a sports facility pursuant to an agreement entered into by the	3064
county under section 307.696 of the Revised Code, or for the	3065
purpose of paying the costs of capital repairs of and improvements	3066
to a sports facility. The tax shall be levied and approved in one	3067
of the manners prescribed by division (C)(1) or (2) of this	3068
section.	3069

(1) The tax may be levied pursuant to a resolution adopted by	3070
a majority of the members of the board of county commissioners not	3071
later than forty-five days after July 19, 1995. A board of county	3072
commissioners approving a tax under division (C)(1) of this	3073
section may approve a tax under division (D)(1) of section 307.697	3074
or division (B)(1) of section 4301.421 of the Revised Code at the	3075
same time. Subject to the resolution being submitted to a	3076
referendum under sections 305.31 to 305.41 of the Revised Code,	3077
the resolution shall take effect immediately, but the tax levied	3078
pursuant to the resolution shall not be levied prior to the day	3079
following the last day that any tax previously levied pursuant to	3080
this division may be levied.	3081

(2) The tax may be levied pursuant to a resolution adopted by	3082
a majority of the members of the board of county commissioners not	3083
later than September 1, 2015, and approved by a majority of the	3084
electors of the county voting on the question of levying the tax.	3085
The board of county commissioners shall certify a copy of the	3086
resolution to the board of elections immediately upon adopting a	3087
resolution under division (C)(2) of this section. The election may	3088
be held on the date of a general or special election held not	3089
sooner than ninety days after the date the board certifies its	3090
resolution to the board of elections. The form of the ballot shall	3091
be as prescribed by division (C) of section 307.697 of the Revised	3092
Code, except that the phrase "paying not more than one-half of the	3093
costs of providing a sports facility together with related	3094
redevelopment and economic development projects" shall be replaced	3095
by the phrase "paying the costs of constructing, renovating,	3096
improving, or repairing a sports facility and reimbursing a county	3097
for costs incurred by the county in the construction of a sports	3098
facility," and the phrase ", beginning .......... (here insert the	3099
earliest date the tax would take effect)" shall be appended after	3100
"years." A board of county commissioners submitting the question	3101
of a tax under division (C)(2) of this section may submit the	3102
question of a tax under division (D)(2) of section 307.697 or	3103
division (B)(2) of section 4301.421 of the Revised Code as a	3104
single question, and the form of the ballot shall include each of	3105
the proposed taxes.	3106

If approved by a majority of electors voting on the question,	3107
the tax shall take effect on the day specified on the ballot,	3108
which shall not be earlier than the day following the last day	3109
that any tax previously levied pursuant to this division may be	3110
levied.	3111

The rate of a tax levied pursuant to division (C)(1) or (2)	3112
of this section shall not exceed the rate specified in division	3113
(A) of this section. A tax levied pursuant to division (C)(1) or	3114
(2) of this section may be levied for any number of years not	3115
exceeding twenty.	3116

A board of county commissioners adopting a resolution under	3117
this division shall certify a copy of the resolution to the tax	3118
commissioner immediately upon adoption of the resolution.	3119

(D) No tax shall be levied under division (A) of this section	3120
on or after September 23, 2008. This division does not apply to a	3121
tax levied under division (C) of this section, and does not	3122
prevent the collection of any tax levied under this section before	3123
September 23, 2008, so long as that tax remains effective.	3124

Sec. 5743.025.  In addition to the return required by section	3125
5743.03 of the Revised Code, each retail dealer in a county in	3126
which a tax is levied under section 5743.021, 5743.024, or	3127
5743.026 of the Revised Code shall, within thirty days after the	3128
date on which the tax takes effect, make and file a return, on	3129
forms prescribed by the tax commissioner, showing the total number	3130
of cigarettes which such retail dealer had on hand as of the	3131
beginning of business on the date on which the tax takes effect,	3132
and such other information as the commissioner deems necessary for	3133
the administration of section 5743.021, 5743.024, or 5743.026 of	3134
the Revised Code. Each retail dealer shall deliver the return	3135
together with a remittance of the additional amount of tax due on	3136
the cigarettes shown on such return to the treasurer of state. The	3137
treasurer of state shall stamp or otherwise mark on the return the	3138
date it was received and shall also show thereon by stamp or	3139
otherwise the tax payment remitted with the return. Thereafter,	3140
the treasurer of state shall immediately transmit all returns	3141
filed under this section to the tax commissioner. Any retail	3142
dealer who fails to file a return under this section shall, for	3143
each day the retail dealer so fails, forfeit and pay into the	3144
state treasury the sum of one dollar as revenue arising from the	3145
tax imposed by section 5743.021, 5743.024, or 5743.026 of the	3146
Revised Code, and such sum may be collected by assessment in the	3147
manner provided in section 5743.081 of the Revised Code. For	3148
thirty days after the effective date of a tax imposed by section	3149
5743.021, 5743.024, or 5743.026 of the Revised Code, a retail	3150
dealer may possess for sale or sell in the county in which the tax	3151
is levied cigarettes not bearing the stamp or impression required	3152
by section 5743.03 of the Revised Code to evidence payment of the	3153
county tax but on which the tax has or will be paid.	3154

Sec. 5743.03. (A) Except as provided in section 5743.04 of	3155
the Revised Code, the taxes imposed under sections 5743.02,	3156
5743.021, 5743.024, and 5743.026 of the Revised Code shall be paid	3157
by the purchase of tax stamps. A tax stamp shall be affixed to	3158
each package of an aggregate denomination not less than the amount	3159
of the tax upon the contents thereof. The tax stamp, so affixed,	3160
shall be prima-facie evidence of payment of the tax.	3161

Except as is provided in the rules prescribed by the tax	3162
commissioner under authority of sections 5743.01 to 5743.20 of the	3163
Revised Code, and unless tax stamps have been previously affixed,	3164
they shall be so affixed by each wholesale dealer, and canceled by	3165
writing or stamping across the face thereof the number assigned to	3166
such wholesale dealer by the tax commissioner for that purpose,	3167
prior to the delivery of any cigarettes to any person in this	3168
state, or in the case of a tax levied pursuant to section	3169
5743.021, 5743.024, or 5743.026 of the Revised Code, prior to the	3170
delivery of cigarettes to any person in the county in which the	3171
tax is levied.	3172

(B) Except as provided in the rules prescribed by the	3173
commissioner under authority of sections 5743.01 to 5743.20 of the	3174
Revised Code, each retail dealer, within twenty-four hours after	3175
the receipt of any cigarettes at the retail dealer's place of	3176
business, shall inspect the cigarettes to ensure that tax stamps	3177
are affixed. The inspection shall be completed before the	3178
cigarettes are delivered to any person in this state, or, in the	3179
case of a tax levied pursuant to section 5743.021, 5743.024, or	3180
5743.026 of the Revised Code, before the cigarettes are delivered	3181
to any person in the county in which the tax is levied.	3182

(C) Whenever any cigarettes are found in the place of	3183
business of any retail dealer without proper tax stamps affixed	3184
thereto and canceled, it is presumed that such cigarettes are kept	3185
therein in violation of sections 5743.01 to 5743.20 of the Revised	3186
Code.	3187

(D) Each wholesale dealer who purchases cigarettes without	3188
proper tax stamps affixed thereto shall, on or before the	3189
thirty-first day of the month following the close of each	3190
semiannual period, which period shall end on the thirtieth day of	3191
June and the thirty-first day of December of each year, make and	3192
file a return of the preceding semiannual period, on such form as	3193
is prescribed by the tax commissioner, showing the dealer's entire	3194
purchases and sales of cigarettes and stamps or impressions for	3195
such semiannual period and accurate inventories as of the	3196
beginning and end of each semiannual period of cigarettes, stamped	3197
or unstamped; cigarette tax stamps affixed or unaffixed and unused	3198
meter impressions; and such other information as the commissioner	3199
finds necessary to the proper administration of sections 5743.01	3200
to 5743.20 of the Revised Code. The commissioner may extend the	3201
time for making and filing returns and may remit all or any part	3202
of amounts of penalties that may become due under sections 5743.01	3203
to 5743.20 of the Revised Code. The wholesale dealer shall deliver	3204
the return together with a remittance of the tax deficiency	3205
reported thereon to the treasurer of state. The treasurer of state	3206
shall stamp or otherwise mark on the return the date it was	3207
received and shall also show thereon by stamp or otherwise a	3208
payment or nonpayment of the deficiency shown by the return.	3209
Thereafter, the treasurer of state shall immediately transmit all	3210
returns filed under this section to the commissioner.	3211

(E) Any wholesale dealer who fails to file a return under	3212
this section and the rules of the commissioner, other than a	3213
report required pursuant to division (F) of this section, may be	3214
required, for each day the dealer so fails, to forfeit and pay	3215
into the state treasury the sum of one dollar as revenue arising	3216
from the tax imposed by sections 5743.01 to 5743.20 of the Revised	3217
Code and such sum may be collected by assessment in the manner	3218
provided in section 5743.081 of the Revised Code. If the	3219
commissioner finds it necessary in order to insure the payment of	3220
the tax imposed by sections 5743.01 to 5743.20 of the Revised	3221
Code, the commissioner may require returns and payments to be made	3222
other than semiannually. The returns shall be signed by the	3223
wholesale dealer or an authorized agent thereof.	3224

(F) Each person required to file a tax return under section	3225
5743.03, 5743.52, or 5743.62 of the Revised Code shall report to	3226
the commissioner the quantity of all cigarettes and roll-your-own	3227
cigarette tobacco sold in Ohio for each brand not covered by the	3228
tobacco master settlement agreement for which the person is liable	3229
for the taxes levied under section 5743.02, 5743.51, or 5743.62 of	3230
the Revised Code.	3231

As used in this division, "tobacco master settlement	3232
agreement" has the same meaning as in section 183.01 of the	3233
Revised Code.	3234

(G) The report required by division (F) of this section shall	3235
be made on a form prescribed by the commissioner and shall be	3236
filed not later than the last day of each month for the previous	3237
month, except that if the commissioner determines that the	3238
quantity reported by a person does not warrant monthly reporting,	3239
the commissioner may authorize reporting at less frequent	3240
intervals. The commissioner may assess a penalty of not more than	3241
two hundred fifty dollars for each month or portion thereof that a	3242
person fails to timely file a required report, and such sum may be	3243
collected by assessment in the manner provided in section 5743.081	3244
of the Revised Code. All money collected under this division shall	3245
be considered as revenue arising from the taxes imposed by	3246
sections 5743.01 to 5743.20 of the Revised Code.	3247

(H) The treasurer of statecommissioner or an agent of the	3248
treasurercommissioner may sell tax stamps only to a licensed	3249
wholesale dealer, except as otherwise authorized by the	3250
commissioner. The treasurercommissioner or an agent of the	3251
treasurercommissioner may charge the costs associated with the	3252
shipment of tax stamps to the licensed wholesale dealer. Amounts	3253
collected from such charges shall be credited to the treasurer of	3254
state's administrativecigarette tax enforcement fund created	3255
under section 113.205743.15 of the Revised Code.	3256

Sec. 5743.04.  The tax commissioner shall design and procure	3257
the stamps provided for in section 5743.03 of the Revised Code and	3258
shall enforce and administer sections 5743.01 to 5743.44 of the	3259
Revised Code. With respect to packages containing any number of	3260
cigarettes other than twenty, if the commissioner finds that it is	3261
practicable to collect the taxes levied under sections 5743.02,	3262
5743.021, 5743.024, and 5743.026 of the Revised Code by any method	3263
other than that provided in this section and section 5743.03 of	3264
the Revised Code, the commissioner may by rule prescribe such	3265
other method for payment of the taxes upon such packages of	3266
cigarettes as will adequately protect the revenue; provided, that	3267
in any case where the commissioner prescribes that the taxes upon	3268
such packages of cigarettes shall be paid on the basis of returns	3269
filed by a wholesale or retail dealer, said returns, together with	3270
a remittance of all taxes due as shown thereon, shall be filed	3271
with the treasurer of statecommissioner not later than the tenth	3272
day of the month following the month in which such cigarettes are	3273
sold in this state. The commissioner may promulgate rules in	3274
accordance with sections 119.01 to 119.13 of the Revised Code as	3275
the commissioner deems necessary to carry out sections 5743.01 to	3276
5743.44 of the Revised Code and may adopt different detailed rules	3277
applicable to diverse methods and conditions of sale of	3278
cigarettes, prescribing, in each class of cases, upon whom, as	3279
between the wholesale dealer and the retail dealer, the primary	3280
duty of affixing stamps shall rest, and the manner in which stamps	3281
shall be affixed. A copy of such rules shall be furnished to every	3282
licensed dealer as provided in sections 119.01 to 119.13 of the	3283
Revised Code. Any such rule so furnished which excuses a wholesale	3284
dealer from affixing stamps under the circumstances of the	3285
particular case shall be a defense in the prosecution of such	3286
dealer for violation of section 5743.03 of the Revised Code.	3287

The commissioner, after determining that it is practicable to	3288
evidence payment of the taxes levied under sections 5743.02,	3289
5743.021, 5743.024, and 5743.026 of the Revised Code by impression	3290
made by a metering device, shall by resolution provide that such	3291
metering device may be used in lieu of the stamps otherwise	3292
provided for in section 5743.03 of the Revised Code. The	3293
commissioner may authorize any wholesale or retail dealer to use	3294
the metering device approved by the commissioner. Such device	3295
before being used shall be sealed by the treasurer of state, and	3296
shall be used only in accordance with the rules prescribed by the	3297
commissioner.	3298

Wholesale and retail dealers authorized to use said device	3299
shall prepay the tax represented by meter impressions and shall	3300
deliver the metering device to the treasurer of state or county	3301
treasurer in the county in which the place of business of any	3302
wholesaler or retailer is located if such treasurer is designated	3303
by the treasurer of state, who shall seal the meter in accordance	3304
with the prepayments so made.	3305

Sec. 5743.05.  All stamps provided for by section 5743.03 of	3306
the Revised Code, when procured by the tax commissioner, shallmay	3307
be immediately delivered to the treasureran agent of statethe	3308
commissioner, who shall execute a receipt therefor showing the	3309
number and aggregate face value of each denomination received by	3310
the treasurer of stateagent and any other information that the	3311
commissioner requires to enforce the collection and distribution	3312
of all taxes imposed under section 5743.021, 5743.024, or 5743.026	3313
of the Revised Code, and deliver the receipt to the commissioner.	3314
The treasurerAn agent of statethe commissioner who receives	3315
stamps under this section shall sell the stamps and, on the fifth	3316
day of each month, make a report showing all sales made during the	3317
preceding month, with the names of purchasers, the number of each	3318
denomination, the aggregate face value purchased by each, and any	3319
other information as the commissioner requires to enforce the	3320
collection and distribution of all taxes imposed under section	3321
5743.021, 5743.024, or 5743.026 of the Revised Code, and deliver	3322
it to the commissioner. The treasurerSuch an agent of statethe	3323
commissioner shall be accountable for all stamps received and	3324
unsold. The stamps shall be sold and accounted for at their face	3325
value, except the commissioner shall, by rule certified to the	3326
treasurer of state, authorize the sale of stamps and meter	3327
impressions to wholesale or retail dealers in this state, or to	3328
wholesale dealers outside this state, at a discount of not less	3329
than one and eight-tenths per cent or more than ten per cent of	3330
their face value, as a commission for affixing and canceling the	3331
stamps or meter impressions.	3332

The commissioner, by rule certified to the treasurer of	3333
state, shall authorize the delivery of stamps and meter	3334
impressions to wholesale dealers in this state and to wholesale	3335
dealers outside this state on credit. If such a dealer has not	3336
been in good credit standing with this state for five consecutive	3337
years preceding the purchase, the tax commissioner shall require	3338
the dealer to file with the commissioner a bond to the state in	3339
the amount and in the form prescribed by the commissioner, with	3340
surety to the satisfaction of the commissioner, conditioned on	3341
payment to the treasurer of state or the commissioner within	3342
thirty days for stamps or meter impressions delivered within that	3343
time. If such a dealer has been in good credit standing with this	3344
state for five consecutive years preceding the purchase, the tax	3345
commissioner shall not require that the dealer file such a bond	3346
but shall require payment for the stamps and meter impressions	3347
within thirty days after purchase of the stamps and meter	3348
impressions. Stamps and meter impressions sold to a dealer not	3349
required to file a bond shall be sold at face value. The maximum	3350
amount that may be sold on credit to a dealer not required to file	3351
a bond shall equal one hundred ten per cent of the dealer's	3352
average monthly purchases over the preceding calendar year. The	3353
maximum amount shall be adjusted to reflect any changes in the tax	3354
rate and may be adjusted, upon application to the tax commissioner	3355
by the dealer, to reflect changes in the business operations of	3356
the dealer. The maximum amount shall be applicable to the period	3357
of July through April. Payment by a dealer not required to file a	3358
bond shall be remitted by electronic funds transfer as prescribed	3359
by section 5743.051 of the Revised Code. If a dealer not required	3360
to file a bond fails to make the payment in full within the	3361
thirty-day period, neither the treasurercommissioner nor an	3362
agent of state shall notthe commissioner may thereafter sell	3363
stamps or meter impressions to that dealer until the dealer pays	3364
the outstanding amount, including penalty and interest on that	3365
amount as prescribed in this chapter, and the commissioner	3366
thereafter may require the dealer to file a bond until the dealer	3367
is restored to good standing. The commissioner shall limit	3368
delivery of stamps and meter impressions on credit to the period	3369
running from the first day of July of the fiscal year until the	3370
first day of the following May. Any discount allowed as a	3371
commission for affixing and canceling stamps or meter impressions	3372
shall be allowed with respect to sales of stamps and meter	3373
impressions on credit.	3374

The treasurer of statecommissioner shall redeem and pay for	3375
any destroyed, unused, or spoiled tax stamps and any unused meter	3376
impressions at their net value, and shall refund to wholesale	3377
dealers the net amount of state and county taxes paid erroneously	3378
or paid on cigarettes that have been sold in interstate or foreign	3379
commerce or that have become unsalable, and the net amount of	3380
county taxes that were paid on cigarettes that have been sold at	3381
retail or for retail sale outside a taxing county.	3382

An application for a refund of tax shall be filed with the	3383
tax commissioner, on the form prescribed by the commissioner for	3384
that purpose, within three years from the date the tax stamps are	3385
destroyed or spoiled, from the date of the erroneous payment, or	3386
from the date that cigarettes on which taxes have been paid have	3387
been sold in interstate or foreign commerce or have become	3388
unsalable.	3389

On the filing of the application, the commissioner shall	3390
determine the amount of refund to which the applicant is entitled,	3391
payable from receipts of the state tax, and, if applicable,	3392
payable from receipts of a county tax. If the amount is less than	3393
that claimed, the commissioner shall certify the amount to the	3394
director of budget and management and treasurer of state for	3395
payment from the tax refund fund created by section 5703.052 of	3396
the Revised Code. If the amount is less than that claimed, the	3397
commissioner shall proceed in accordance with section 5703.70 of	3398
the Revised Code.	3399

If a refund is granted for payment of an illegal or erroneous	3400
assessment issued by the department, the refund shall include	3401
interest on the amount of the refund from the date of the	3402
overpayment. The interest shall be computed at the rate per annum	3403
prescribed by section 5703.47 of the Revised Code.	3404

Sec. 5743.051. This section applies to any wholesale or	3405
retail cigarette dealer required by section 5743.05 of the Revised	3406
Code to remit payment for tax stamps and meter impressions by	3407
electronic funds transfer. The tax commissioner shall notify each	3408
dealer of the dealer's obligation to do so and shall maintain an	3409
updated list of those dealers. Failure by the tax commissioner to	3410
notify a dealer subject to this section to remit taxes by	3411
electronic funds transfer does not relieve the dealer of its	3412
obligation to remit taxes by electronic funds transfer.	3413

A dealer required to remit payments by electronic funds	3414
transfer shall remit such payments to the treasurer of state in	3415
the manner prescribed by rules adopted by the treasurer of state	3416
under section 113.061 of the Revised Code and within the time	3417
prescribed for such a dealer by section 5743.05 of the Revised	3418
Code.	3419

A dealer required to remit taxes by electronic funds transfer	3420
may apply to the tax commissioner in the manner prescribed by the	3421
tax commissioner to be excused from that requirement. The tax	3422
commissioner may excuse the dealer from remittance by electronic	3423
funds transfer for good cause shown for the period of time	3424
requested by the dealer or for a portion of that period.	3425

If a dealer required to remit taxes by electronic funds	3426
transfer remits those taxes by some other means, the treasurer of	3427
state shall notify the tax commissioner of the failure to remit by	3428
electronic funds transfer. If the tax commissioner determines that	3429
such failure was not due to reasonable cause or was due to willful	3430
neglect, the tax commissioner may collect an additional charge by	3431
assessment in the manner prescribed by section 5743.081 of the	3432
Revised Code. The additional charge shall equal five per cent of	3433
the amount of the taxes required to be paid by electronic funds	3434
transfer but shall not exceed five thousand dollars. Any	3435
additional charge assessed under this section is in addition to	3436
any other penalty or charge imposed under this chapter and shall	3437
be considered as revenue arising from taxes imposed under this	3438
chapter. The tax commissioner may abate all or a portion of such a	3439
charge and may adopt rules governing such remissions.	3440

No additional charge shall be assessed under this section	3441
against a dealer that has been notified of its obligation to remit	3442
taxes under this section and that remits its first two tax	3443
payments after such notification by some means other than	3444
electronic funds transfer. The additional charge may be assessed	3445
upon the remittance of any subsequent tax payment that the dealer	3446
remits by some means other than electronic funds transfer.	3447

Sec. 5743.112.  (A) No person shall prepare for shipment,	3448
ship, transport, deliver, prepare for distribution, or distribute	3449
cigarettes, or otherwise engage or participate in the wholesale or	3450
retail business of trafficking in cigarettes, with the intent to	3451
avoid payment of the tax imposed by this chapter, when the total	3452
number of cigarettes in the aggregate exceeds one thousand two	3453
hundred during any twelve-month period.	3454

(B) Any vending machine containing cigarettes which do not	3455
have affixed the stamps or impressions provided for by sections	3456
5743.03 and 5743.04 of the Revised Code shall be seized and	3457
forfeited to the state in accordance with Chapter 2981. of the	3458
Revised Code. Forfeiture shall not affect the rights of a holder	3459
of a valid lien.	3460

(C) A vehicle that is seized as contraband under Chapter	3461
2981. of the Revised Code because of its use in violation of this	3462
chapter is subject to the procedures set forth in that chapter.	3463

Sec. 5743.52.  (A) Each distributor of tobacco products	3464
subject to the tax levied by section 5743.51 of the Revised Code,	3465
on or before the lasttwenty-third day of each month, shall file	3466
with the treasurer of statetax commissioner a return for the	3467
preceding month showing any information the tax commissioner finds	3468
necessary for the proper administration of sections 5743.51 to	3469
5743.66 of the Revised Code, together with remittance of the tax	3470
due. The treasurer of state shall stamp or otherwise mark on the	3471
return the date it was received and shall also show thereon by	3472
stamp or otherwise the amount of payment received with the return.	3473
Thereafter, the treasurer of state shall immediately transmit all	3474
returns filed under this section to the tax commissioner. The	3475
return and payment of the tax required by this section shall be	3476
filed in such a manner that it is received by the treasurer of	3477
statecommissioner on or before the lasttwenty-third day of the	3478
month following the reporting period. If the return is filed and	3479
the amount of tax shown on the return to be due is paid on or	3480
before the date the return is required to be filed, the	3481
distributor is entitled to a discount equal to two and five-tenths	3482
per cent of the amount shown on the return to be due.	3483

(B) Any person who fails to timely file the return and make	3484
payment of taxes as required under this section, section 5743.62,	3485
or section 5743.63 of the Revised Code may be required to pay an	3486
additional charge not exceeding the greater of fifty dollars or	3487
ten per cent of the tax due. Any additional charge imposed under	3488
this section may be collected by assessment as provided in section	3489
5743.56 of the Revised Code.	3490

(C) If any tax due is not paid timely in accordance with	3491
sections 5743.52, 5743.62, or 5743.63 of the Revised Code, the	3492
person liable for the tax shall pay interest, calculated at the	3493
rate per annum as prescribed by section 5703.47 of the Revised	3494
Code, from the date the tax payment was due to the date of payment	3495
or to the date an assessment is issued under section 5743.56 of	3496
the Revised Code, whichever occurs first. The commissioner may	3497
collect such interest by assessment pursuant to section 5743.56 of	3498
the Revised Code.	3499

(D) The commissioner may authorize the filing of returns and	3500
the payment of the tax required by this section, section 5743.62,	3501
or section 5743.63 of the Revised Code for periods longer than a	3502
calendar month.	3503

(E) The commissioner may order any taxpayer to file with the	3504
commissioner security to the satisfaction of the commissioner	3505
conditioned upon filing the return and paying the taxes required	3506
under this section, section 5743.62, or section 5743.63 of the	3507
Revised Code if the commissioner believes that the collection of	3508
the tax may be in jeopardy.	3509

Sec. 5743.65.  No person required by division (B) of section	3510
5743.62 or division (B) of section 5743.63 of the Revised Code to	3511
file a return with the treasurer of statetax commissioner shall	3512
fail to make the return or fail to pay the applicable taxes levied	3513
under section 5743.62 or 5743.63 of the Revised Code or fail to	3514
pay any lawful assessment issued by the tax commissioner.	3515

Sec. 5747.08.  An annual return with respect to the tax	3516
imposed by section 5747.02 of the Revised Code and each tax	3517
imposed under Chapter 5748. of the Revised Code shall be made by	3518
every taxpayer for any taxable year for which the taxpayer is	3519
liable for the tax imposed by that section or under that chapter,	3520
unless the total credits allowed under divisions (E), (F), and (G)	3521
of section 5747.05 of the Revised Code for the year are equal to	3522
or exceed the tax imposed by section 5747.02 of the Revised Code,	3523
in which case no return shall be required unless the taxpayer is	3524
liable for a tax imposed pursuant to Chapter 5748. of the Revised	3525
Code.	3526

(A) If an individual is deceased, any return or notice	3527
required of that individual under this chapter shall be made and	3528
filed by that decedent's executor, administrator, or other person	3529
charged with the property of that decedent.	3530

(B) If an individual is unable to make a return or notice	3531
required by this chapter, the return or notice required of that	3532
individual shall be made and filed by the individual's duly	3533
authorized agent, guardian, conservator, fiduciary, or other	3534
person charged with the care of the person or property of that	3535
individual.	3536

(C) Returns or notices required of an estate or a trust shall	3537
be made and filed by the fiduciary of the estate or trust.	3538

(D)(1)(a) Except as otherwise provided in division (D)(1)(b)	3539
of this section, any pass-through entity may file a single return	3540
on behalf of one or more of the entity's investors other than an	3541
investor that is a person subject to the tax imposed under section	3542
5733.06 of the Revised Code. The single return shall set forth the	3543
name, address, and social security number or other identifying	3544
number of each of those pass-through entity investors and shall	3545
indicate the distributive share of each of those pass-through	3546
entity investor's income taxable in this state in accordance with	3547
sections 5747.20 to 5747.231 of the Revised Code. Such	3548
pass-through entity investors for whom the pass-through entity	3549
elects to file a single return are not entitled to the exemption	3550
or credit provided for by sections 5747.02 and 5747.022 of the	3551
Revised Code; shall calculate the tax before business credits at	3552
the highest rate of tax set forth in section 5747.02 of the	3553
Revised Code for the taxable year for which the return is filed;	3554
and are entitled to only their distributive share of the business	3555
credits as defined in division (D)(2) of this section. A single	3556
check drawn by the pass-through entity shall accompany the return	3557
in full payment of the tax due, as shown on the single return, for	3558
such investors, other than investors who are persons subject to	3559
the tax imposed under section 5733.06 of the Revised Code.	3560

(b)(i) A pass-through entity shall not include in such a	3561
single return any investor that is a trust to the extent that any	3562
direct or indirect current, future, or contingent beneficiary of	3563
the trust is a person subject to the tax imposed under section	3564
5733.06 of the Revised Code.	3565

(ii) A pass-through entity shall not include in such a single	3566
return any investor that is itself a pass-through entity to the	3567
extent that any direct or indirect investor in the second	3568
pass-through entity is a person subject to the tax imposed under	3569
section 5733.06 of the Revised Code.	3570

(c) Nothing in division (D) of this section precludes the tax	3571
commissioner from requiring such investors to file the return and	3572
make the payment of taxes and related interest, penalty, and	3573
interest penalty required by this section or section 5747.02,	3574
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)	3575
of this section precludes such an investor from filing the annual	3576
return under this section, utilizing the refundable credit equal	3577
to the investor's proportionate share of the tax paid by the	3578
pass-through entity on behalf of the investor under division (J)	3579
of this section, and making the payment of taxes imposed under	3580
section 5747.02 of the Revised Code. Nothing in division (D) of	3581
this section shall be construed to provide to such an investor or	3582
pass-through entity any additional deduction or credit, other than	3583
the credit provided by division (J) of this section, solely on	3584
account of the entity's filing a return in accordance with this	3585
section. Such a pass-through entity also shall make the filing and	3586
payment of estimated taxes on behalf of the pass-through entity	3587
investors other than an investor that is a person subject to the	3588
tax imposed under section 5733.06 of the Revised Code.	3589

(2) For the purposes of this section, "business credits"	3590
means the credits listed in section 5747.98 of the Revised Code	3591
excluding the following credits:	3592

(a) The retirement credit under division (B) of section	3593
5747.055 of the Revised Code;	3594

(b) The senior citizen credit under division (C) of section	3595
5747.05 of the Revised Code;	3596

(c) The lump sum distribution credit under division (D) of	3597
section 5747.05 of the Revised Code;	3598

(d) The dependent care credit under section 5747.054 of the	3599
Revised Code;	3600

(e) The lump sum retirement income credit under division (C)	3601
of section 5747.055 of the Revised Code;	3602

(f) The lump sum retirement income credit under division (D)	3603
of section 5747.055 of the Revised Code;	3604

(g) The lump sum retirement income credit under division (E)	3605
of section 5747.055 of the Revised Code;	3606

(h) The credit for displaced workers who pay for job training	3607
under section 5747.27 of the Revised Code;	3608

(i) The twenty-dollar personal exemption credit under section	3609
5747.022 of the Revised Code;	3610

(j) The joint filing credit under division (G) of section	3611
5747.05 of the Revised Code;	3612

(k) The nonresident credit under division (A) of section	3613
5747.05 of the Revised Code;	3614

(l) The credit for a resident's out-of-state income under	3615
division (B) of section 5747.05 of the Revised Code;	3616

(m) The low-income credit under section 5747.056 of the	3617
Revised Code;	3618

(n) The earned income tax credit under section 5747.71 of the	3619
Revised Code.	3620

(3) The election provided for under division (D) of this	3621
section applies only to the taxable year for which the election is	3622
made by the pass-through entity. Unless the tax commissioner	3623
provides otherwise, this election, once made, is binding and	3624
irrevocable for the taxable year for which the election is made.	3625
Nothing in this division shall be construed to provide for any	3626
deduction or credit that would not be allowable if a nonresident	3627
pass-through entity investor were to file an annual return.	3628

(4) If a pass-through entity makes the election provided for	3629
under division (D) of this section, the pass-through entity shall	3630
be liable for any additional taxes, interest, interest penalty, or	3631
penalties imposed by this chapter if the tax commissioner finds	3632
that the single return does not reflect the correct tax due by the	3633
pass-through entity investors covered by that return. Nothing in	3634
this division shall be construed to limit or alter the liability,	3635
if any, imposed on pass-through entity investors for unpaid or	3636
underpaid taxes, interest, interest penalty, or penalties as a	3637
result of the pass-through entity's making the election provided	3638
for under division (D) of this section. For the purposes of	3639
division (D) of this section, "correct tax due" means the tax that	3640
would have been paid by the pass-through entity had the single	3641
return been filed in a manner reflecting the commissioner's	3642
findings. Nothing in division (D) of this section shall be	3643
construed to make or hold a pass-through entity liable for tax	3644
attributable to a pass-through entity investor's income from a	3645
source other than the pass-through entity electing to file the	3646
single return.	3647

(E) If a husband and wife file a joint federal income tax	3648
return for a taxable year, they shall file a joint return under	3649
this section for that taxable year, and their liabilities are	3650
joint and several, but, if the federal income tax liability of	3651
either spouse is determined on a separate federal income tax	3652
return, they shall file separate returns under this section.	3653

If either spouse is not required to file a federal income tax	3654
return and either or both are required to file a return pursuant	3655
to this chapter, they may elect to file separate or joint returns,	3656
and, pursuant to that election, their liabilities are separate or	3657
joint and several. If a husband and wife file separate returns	3658
pursuant to this chapter, each must claim the taxpayer's own	3659
exemption, but not both, as authorized under section 5747.02 of	3660
the Revised Code on the taxpayer's own return.	3661

(F) Each return or notice required to be filed under this	3662
section shall contain the signature of the taxpayer or the	3663
taxpayer's duly authorized agent and of the person who prepared	3664
the return for the taxpayer, and shall include the taxpayer's	3665
social security number. Each return shall be verified by a	3666
declaration under the penalties of perjury. The tax commissioner	3667
shall prescribe the form that the signature and declaration shall	3668
take.	3669

(G) Each return or notice required to be filed under this	3670
section shall be made and filed as required by section 5747.04 of	3671
the Revised Code, on or before the fifteenth day of April of each	3672
year, on forms that the tax commissioner shall prescribe, together	3673
with remittance made payable to the treasurer of state in the	3674
combined amount of the state and all school district income taxes	3675
shown to be due on the form.	3676

Upon good cause shown, the commissioner may extend the period	3677
for filing any notice or return required to be filed under this	3678
section and may adopt rules relating to extensions. If the	3679
extension results in an extension of time for the payment of any	3680
state or school district income tax liability with respect to	3681
which the return is filed, the taxpayer shall pay at the time the	3682
tax liability is paid an amount of interest computed at the rate	3683
per annum prescribed by section 5703.47 of the Revised Code on	3684
that liability from the time that payment is due without extension	3685
to the time of actual payment. Except as provided in section	3686
5747.132 of the Revised Code, in addition to all other interest	3687
charges and penalties, all taxes imposed under this chapter or	3688
Chapter 5748. of the Revised Code and remaining unpaid after they	3689
become due, except combined amounts due of one dollar or less,	3690
bear interest at the rate per annum prescribed by section 5703.47	3691
of the Revised Code until paid or until the day an assessment is	3692
issued under section 5747.13 of the Revised Code, whichever occurs	3693
first.	3694

If the commissioner considers it necessary in order to ensure	3695
the payment of the tax imposed by section 5747.02 of the Revised	3696
Code or any tax imposed under Chapter 5748. of the Revised Code,	3697
the commissioner may require returns and payments to be made	3698
otherwise than as provided in this section.	3699

To the extent that any provision in this division conflicts	3700
with any provision in section 5747.026 of the Revised Code, the	3701
provision in that section prevails.	3702

(H) If any report, claim, statement, or other document	3703
required to be filed, or any payment required to be made, within a	3704
prescribed period or on or before a prescribed date under this	3705
chapter is delivered after that period or that date by United	3706
States mail to the agency, officer, or office with which the	3707
report, claim, statement, or other document is required to be	3708
filed, or to which the payment is required to be made, the date of	3709
the postmark stamped on the cover in which the report, claim,	3710
statement, or other document, or payment is mailed shall be deemed	3711
to be the date of delivery or the date of payment.	3712

If a payment is required to be made by electronic funds	3713
transfer pursuant to section 5747.072 of the Revised Code, the	3714
payment is considered to be made when the payment is received by	3715
the treasurer of state or credited to an account designated by the	3716
treasurer of state for the receipt of tax payments.	3717

"The date of the postmark" means, in the event there is more	3718
than one date on the cover, the earliest date imprinted on the	3719
cover by the United States postal service.	3720

(I) The amounts withheld by an employer pursuant to section	3721
5747.06 of the Revised Code, a casino operator pursuant to section	3722
5747.063 of the Revised Code, or a lottery sales agent pursuant to	3723
section 5747.064 of the Revised Code shall be allowed to the	3724
recipient of the compensation casino winnings, or lottery prize	3725
award as credits against payment of the appropriate taxes imposed	3726
on the recipient by section 5747.02 and under Chapter 5748. of the	3727
Revised Code.	3728

(J)(I) If a pass-through entity elects to file a single	3729
return under division (D) of this section and if any investor is	3730
required to file the annual return and make the payment of taxes	3731
required by this chapter on account of the investor's other income	3732
that is not included in a single return filed by a pass-through	3733
entity or any other investor elects to file the annual return, the	3734
investor is entitled to a refundable credit equal to the	3735
investor's proportionate share of the tax paid by the pass-through	3736
entity on behalf of the investor. The investor shall claim the	3737
credit for the investor's taxable year in which or with which ends	3738
the taxable year of the pass-through entity. Nothing in this	3739
chapter shall be construed to allow any credit provided in this	3740
chapter to be claimed more than once. For the purpose of computing	3741
any interest, penalty, or interest penalty, the investor shall be	3742
deemed to have paid the refundable credit provided by this	3743
division on the day that the pass-through entity paid the	3744
estimated tax or the tax giving rise to the credit.	3745

(K)(J) The tax commissioner shall ensure that each return	3746
required to be filed under this section includes a box that the	3747
taxpayer may check to authorize a paid tax preparer who prepared	3748
the return to communicate with the department of taxation about	3749
matters pertaining to the return. The return or instructions	3750
accompanying the return shall indicate that by checking the box	3751
the taxpayer authorizes the department of taxation to contact the	3752
preparer concerning questions that arise during the processing of	3753
the return and authorizes the preparer only to provide the	3754
department with information that is missing from the return, to	3755
contact the department for information about the processing of the	3756
return or the status of the taxpayer's refund or payments, and to	3757
respond to notices about mathematical errors, offsets, or return	3758
preparation that the taxpayer has received from the department and	3759
has shown to the preparer.	3760

(L)(K) The tax commissioner shall permit individual taxpayers	3761
to instruct the department of taxation to cause any refund of	3762
overpaid taxes to be deposited directly into a checking account,	3763
savings account, or an individual retirement account or individual	3764
retirement annuity, or preexisting college savings plan or program	3765
account offered by the Ohio tuition trust authority under Chapter	3766
3334. of the Revised Code, as designated by the taxpayer, when the	3767
taxpayer files the annual return required by this section	3768
electronically.	3769

(M)(L) The tax commissioner may adopt rules to administer	3770
this section.	3771

Sec. 5747.98.  (A) To provide a uniform procedure for	3772
calculating the amount of tax due under section 5747.02 of the	3773
Revised Code, a taxpayer shall claim any credits to which the	3774
taxpayer is entitled in the following order:	3775

(1) The retirement income credit under division (B) of	3776
section 5747.055 of the Revised Code;	3777

(2) The senior citizen credit under division (C) of section	3778
5747.05 of the Revised Code;	3779

(3) The lump sum distribution credit under division (D) of	3780
section 5747.05 of the Revised Code;	3781

(4) The dependent care credit under section 5747.054 of the	3782
Revised Code;	3783

(5) The lump sum retirement income credit under division (C)	3784
of section 5747.055 of the Revised Code;	3785

(6) The lump sum retirement income credit under division (D)	3786
of section 5747.055 of the Revised Code;	3787

(7) The lump sum retirement income credit under division (E)	3788
of section 5747.055 of the Revised Code;	3789

(8) The low-income credit under section 5747.056 of the	3790
Revised Code;	3791

(9) The credit for displaced workers who pay for job training	3792
under section 5747.27 of the Revised Code;	3793

(10) The campaign contribution credit under section 5747.29	3794
of the Revised Code;	3795

(11) The twenty-dollar personal exemption credit under	3796
section 5747.022 of the Revised Code;	3797

(12) The joint filing credit under division (G) of section	3798
5747.05 of the Revised Code;	3799

(13) The nonresident credit under division (A) of section	3800
5747.05 of the Revised Code;	3801

(14) The credit for a resident's out-of-state income under	3802
division (B) of section 5747.05 of the Revised Code;	3803

(15) The earned income credit under section 5747.71 of the	3804
Revised Code;	3805

(16) The credit for employers that reimburse employee child	3806
care expenses under section 5747.36 of the Revised Code;	3807

(17) The credit for adoption of a minor child under section	3808
5747.37 of the Revised Code;	3809

(18) The credit for purchases of lights and reflectors under	3810
section 5747.38 of the Revised Code;	3811

(19) The nonrefundable job retention credit under division	3812
(B) of section 5747.058 of the Revised Code;	3813

(20) The credit for selling alternative fuel under section	3814
5747.77 of the Revised Code;	3815

(21) The second credit for purchases of new manufacturing	3816
machinery and equipment and the credit for using Ohio coal under	3817
section 5747.31 of the Revised Code;	3818

(22) The job training credit under section 5747.39 of the	3819
Revised Code;	3820

(23) The enterprise zone credit under section 5709.66 of the	3821
Revised Code;	3822

(24) The credit for the eligible costs associated with a	3823
voluntary action under section 5747.32 of the Revised Code;	3824

(25) The credit for employers that establish on-site child	3825
day-care centers under section 5747.35 of the Revised Code;	3826

(26) The ethanol plant investment credit under section	3827
5747.75 of the Revised Code;	3828

(27) The credit for purchases of qualifying grape production	3829
property under section 5747.28 of the Revised Code;	3830

(28) The small business investment credit under section	3831
5747.81 of the Revised Code;	3832

(29) The enterprise zone credits under section 5709.65 of the	3833
Revised Code;	3834

(30) The research and development credit under section	3835
5747.331 of the Revised Code;	3836

(31) The credit for rehabilitating a historic building under	3837
section 5747.76 of the Revised Code;	3838

(32) The refundable credit for rehabilitating a historic	3839
building under section 5747.76 of the Revised Code;	3840

(33) The refundable jobs creation credit or job retention	3841
credit under division (A) of section 5747.058 of the Revised Code;	3842

(34) The refundable credit for taxes paid by a qualifying	3843
entity granted under section 5747.059 of the Revised Code;	3844

(35) The refundable credits for taxes paid by a qualifying	3845
pass-through entity granted under division (J)(I) of section	3846
5747.08 of the Revised Code;	3847

(36) The refundable credit under section 5747.80 of the	3848
Revised Code for losses on loans made to the Ohio venture capital	3849
program under sections 150.01 to 150.10 of the Revised Code;	3850

(37) The refundable motion picture production credit under	3851
section 5747.66 of the Revised Code.;	3852

(38) The refundable credit for financial institution taxes	3853
paid by a pass-through entity granted under section 5747.65 of the	3854
Revised Code.	3855

(B) For any credit, except the refundable credits enumerated	3856
in this section and the credit granted under division (I) of	3857
section 5747.08 of the Revised Code, the amount of the credit for	3858
a taxable year shall not exceed the tax due after allowing for any	3859
other credit that precedes it in the order required under this	3860
section. Any excess amount of a particular credit may be carried	3861
forward if authorized under the section creating that credit.	3862
Nothing in this chapter shall be construed to allow a taxpayer to	3863
claim, directly or indirectly, a credit more than once for a	3864
taxable year.	3865

Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of	3866
the Revised Code:	3867

(1) "School district," "joint vocational school district,"	3868
"local taxing unit," "recognized valuation," "fixed-rate levy,"	3869
and "fixed-sum levy" have the same meanings as used in section	3870
5727.84 of the Revised Code.	3871

(2) "State education aid" for a school district means the	3872
following:	3873

(a) For fiscal years prior to fiscal year 2010, the sum of	3874
state aid amounts computed for the district under the following	3875
provisions, as they existed for the applicable fiscal year:	3876
division (A) of section 3317.022 of the Revised Code, including	3877
the amounts calculated under former section 3317.029 and section	3878
3317.0217 of the Revised Code; divisions (C)(1), (C)(4), (D), (E),	3879
and (F) of section 3317.022; divisions (B), (C), and (D) of	3880
section 3317.023; divisions (L) and (N) of section 3317.024;	3881
section 3317.0216; and any unit payments for gifted student	3882
services paid under section 3317.05 and former sections 3317.052	3883
and 3317.053 of the Revised Code; except that, for fiscal years	3884
2008 and 2009, the amount computed for the district under Section	3885
269.20.80 of H.B. 119 of the 127th general assembly and as that	3886
section subsequently may be amended shall be substituted for the	3887
amount computed under division (D) of section 3317.022 of the	3888
Revised Code, and the amount computed under Section 269.30.80 of	3889
H.B. 119 of the 127th general assembly and as that section	3890
subsequently may be amended shall be included.	3891

(b) For fiscal years 2010 and 2011, the sum of the amounts	3892
computed under former sections 3306.052, 3306.12, 3306.13,	3893
3306.19, 3306.191, and 3306.192 of the Revised Code;	3894

(c) For fiscal years 2012 and 2013, the sum of the amounts	3895
paid under Sections 267.30.50, 267.30.53, and 267.30.56 of H.B.	3896
153 of the 129th general assembly;	3897

(d) For fiscal year 2014 and each fiscal year thereafter, the	3898
sum of state amounts computed for the district under section	3899
3317.022 of the Revised Code; except that, for fiscal years 2014	3900
and 2015, the amount computed for the district under the section	3901
of this act entitled "TRANSITIONAL AID FOR CITY, LOCAL, AND	3902
EXEMPTED VILLAGE SCHOOL DISTRICTS" shall be included.	3903

(3) "State education aid" for a joint vocational school	3904
district means the following:	3905

(a) For fiscal years prior to fiscal year 2010, the sum of	3906
the state aid computed for the district under division (N) of	3907
section 3317.024 and former section 3317.16 of the Revised Code,	3908
except that, for fiscal years 2008 and 2009, the amount computed	3909
under Section 269.30.80 of H.B. 119 of the 127th general assembly	3910
and as that section subsequently may be amended shall be included.	3911

(b) For fiscal years 2010 and 2011, the amount paid in	3912
accordance with Section 265.30.50 of H.B. 1 of the 128th general	3913
assembly.	3914

(c) For fiscal years 2012 and 2013, the amount paid in	3915
accordance with Section 267.30.60 of H.B. 153 of the 129th general	3916
assembly.	3917

(d) For fiscal year 2014 and each fiscal year thereafter, the	3918
amount computed for the district under section 3317.16 of the	3919
Revised Code; except that, for fiscal years 2014 and 2015, the	3920
amount computed for the district under the section of this act	3921
entitled "TRANSITIONAL AID FOR JOINT VOCATIONAL SCHOOL DISTRICTS"	3922
shall be included.	3923

(4) "State education aid offset" means the amount determined	3924
for each school district or joint vocational school district under	3925
division (A)(1) of section 5751.21 of the Revised Code.	3926

(5) "Machinery and equipment property tax value loss" means	3927
the amount determined under division (C)(1) of this section.	3928

(6) "Inventory property tax value loss" means the amount	3929
determined under division (C)(2) of this section.	3930

(7) "Furniture and fixtures property tax value loss" means	3931
the amount determined under division (C)(3) of this section.	3932

(8) "Machinery and equipment fixed-rate levy loss" means the	3933
amount determined under division (D)(1) of this section.	3934

(9) "Inventory fixed-rate levy loss" means the amount	3935
determined under division (D)(2) of this section.	3936

(10) "Furniture and fixtures fixed-rate levy loss" means the	3937
amount determined under division (D)(3) of this section.	3938

(11) "Total fixed-rate levy loss" means the sum of the	3939
machinery and equipment fixed-rate levy loss, the inventory	3940
fixed-rate levy loss, the furniture and fixtures fixed-rate levy	3941
loss, and the telephone company fixed-rate levy loss.	3942

(12) "Fixed-sum levy loss" means the amount determined under	3943
division (E) of this section.	3944

(13) "Machinery and equipment" means personal property	3945
subject to the assessment rate specified in division (F) of	3946
section 5711.22 of the Revised Code.	3947

(14) "Inventory" means personal property subject to the	3948
assessment rate specified in division (E) of section 5711.22 of	3949
the Revised Code.	3950

(15) "Furniture and fixtures" means personal property subject	3951
to the assessment rate specified in division (G) of section	3952
5711.22 of the Revised Code.	3953

(16) "Qualifying levies" are levies in effect for tax year	3954
2004 or applicable to tax year 2005 or approved at an election	3955
conducted before September 1, 2005. For the purpose of determining	3956
the rate of a qualifying levy authorized by section 5705.212 or	3957
5705.213 of the Revised Code, the rate shall be the rate that	3958
would be in effect for tax year 2010.	3959

(17) "Telephone property" means tangible personal property of	3960
a telephone, telegraph, or interexchange telecommunications	3961
company subject to an assessment rate specified in section	3962
5727.111 of the Revised Code in tax year 2004.	3963

(18) "Telephone property tax value loss" means the amount	3964
determined under division (C)(4) of this section.	3965

(19) "Telephone property fixed-rate levy loss" means the	3966
amount determined under division (D)(4) of this section.	3967

(20) "Taxes charged and payable" means taxes charged and	3968
payable after the reduction required by section 319.301 of the	3969
Revised Code but before the reductions required by sections	3970
319.302 and 323.152 of the Revised Code.	3971

(21) "Median estate tax collections" means, in the case of a	3972
municipal corporation to which revenue from the taxes levied in	3973
Chapter 5731. of the Revised Code was distributed in each of	3974
calendar years 2006, 2007, 2008, and 2009, the median of those	3975
distributions. In the case of a municipal corporation to which no	3976
distributions were made in one or more of those years, "median	3977
estate tax collections" means zero.	3978

(22) "Total resources," in the case of a school district,	3979
means the sum of the amounts in divisions (A)(22)(a) to (h) of	3980
this section less any reduction required under division (A)(32) or	3981
(33) of this section.	3982

(a) The state education aid for fiscal year 2010;

3983

(b) The sum of the payments received by the school district	3984
in fiscal year 2010 for current expense levy losses pursuant to	3985
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of	3986
section 5751.21 of the Revised Code, excluding the portion of such	3987
payments attributable to levies for joint vocational school	3988
district purposes;	3989

(c) The sum of fixed-sum levy loss payments received by the	3990
school district in fiscal year 2010 pursuant to division (E)(1) of	3991
section 5727.85 and division (E)(1) of section 5751.21 of the	3992
Revised Code for fixed-sum levies charged and payable for a	3993
purpose other than paying debt charges;	3994

(d) Fifty per cent of the school district's taxes charged and	3995
payable against all property on the tax list of real and public	3996
utility property for current expense purposes for tax year 2008,	3997
including taxes charged and payable from emergency levies charged	3998
and payable under section 5709.194 of the Revised Code and	3999
excluding taxes levied for joint vocational school district	4000
purposes;	4001

(e) Fifty per cent of the school district's taxes charged and	4002
payable against all property on the tax list of real and public	4003
utility property for current expenses for tax year 2009, including	4004
taxes charged and payable from emergency levies and excluding	4005
taxes levied for joint vocational school district purposes;	4006

(f) The school district's taxes charged and payable against	4007
all property on the general tax list of personal property for	4008
current expenses for tax year 2009, including taxes charged and	4009
payable from emergency levies;	4010

(g) The amount certified for fiscal year 2010 under division	4011
(A)(2) of section 3317.08 of the Revised Code;	4012

(h) Distributions received during calendar year 2009 from	4013
taxes levied under section 718.09 of the Revised Code.	4014

(23) "Total resources," in the case of a joint vocational	4015
school district, means the sum of amounts in divisions (A)(23)(a)	4016
to (g) of this section less any reduction required under division	4017
(A)(32) of this section.	4018

(a) The state education aid for fiscal year 2010;

4019

(b) The sum of the payments received by the joint vocational	4020
school district in fiscal year 2010 for current expense levy	4021
losses pursuant to division (C)(2) of section 5727.85 and	4022
divisions (C)(8) and (9) of section 5751.21 of the Revised Code;	4023

(c) Fifty per cent of the joint vocational school district's	4024
taxes charged and payable against all property on the tax list of	4025
real and public utility property for current expense purposes for	4026
tax year 2008;	4027

(d) Fifty per cent of the joint vocational school district's	4028
taxes charged and payable against all property on the tax list of	4029
real and public utility property for current expenses for tax year	4030
2009;	4031

(e) Fifty per cent of a city, local, or exempted village	4032
school district's taxes charged and payable against all property	4033
on the tax list of real and public utility property for current	4034
expenses of the joint vocational school district for tax year	4035
2008;	4036

(f) Fifty per cent of a city, local, or exempted village	4037
school district's taxes charged and payable against all property	4038
on the tax list of real and public utility property for current	4039
expenses of the joint vocational school district for tax year	4040
2009;	4041

(g) The joint vocational school district's taxes charged and	4042
payable against all property on the general tax list of personal	4043
property for current expenses for tax year 2009.	4044

(24) "Total resources," in the case of county mental health	4045
and disability related functions, means the sum of the amounts in	4046
divisions (A)(24)(a) and (b) of this section less any reduction	4047
required under division (A)(32) of this section.	4048

(a) The sum of the payments received by the county for mental	4049
health and developmental disability related functions in calendar	4050
year 2010 under division (A)(1) of section 5727.86 and divisions	4051
(A)(1) and (2) of section 5751.22 of the Revised Code as they	4052
existed at that time;	4053

(b) With respect to taxes levied by the county for mental	4054
health and developmental disability related purposes, the taxes	4055
charged and payable for such purposes against all property on the	4056
tax list of real and public utility property for tax year 2009.	4057

(25) "Total resources," in the case of county senior services	4058
related functions, means the sum of the amounts in divisions	4059
(A)(25)(a) and (b) of this section less any reduction required	4060
under division (A)(32) of this section.	4061

(a) The sum of the payments received by the county for senior	4062
services related functions in calendar year 2010 under division	4063
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	4064
5751.22 of the Revised Code as they existed at that time;	4065

(b) With respect to taxes levied by the county for senior	4066
services related purposes, the taxes charged and payable for such	4067
purposes against all property on the tax list of real and public	4068
utility property for tax year 2009.	4069

(26) "Total resources," in the case of county children's	4070
services related functions, means the sum of the amounts in	4071
divisions (A)(26)(a) and (b) of this section less any reduction	4072
required under division (A)(32) of this section.	4073

(a) The sum of the payments received by the county for	4074
children's services related functions in calendar year 2010 under	4075
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of	4076
section 5751.22 of the Revised Code as they existed at that time;	4077

(b) With respect to taxes levied by the county for children's	4078
services related purposes, the taxes charged and payable for such	4079
purposes against all property on the tax list of real and public	4080
utility property for tax year 2009.	4081

(27) "Total resources," in the case of county public health	4082
related functions, means the sum of the amounts in divisions	4083
(A)(27)(a) and (b) of this section less any reduction required	4084
under division (A)(32) of this section.	4085

(a) The sum of the payments received by the county for public	4086
health related functions in calendar year 2010 under division	4087
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	4088
5751.22 of the Revised Code as they existed at that time;	4089

(b) With respect to taxes levied by the county for public	4090
health related purposes, the taxes charged and payable for such	4091
purposes against all property on the tax list of real and public	4092
utility property for tax year 2009.	4093

(28) "Total resources," in the case of all county functions	4094
not included in divisions (A)(24) to (27) of this section, means	4095
the sum of the amounts in divisions (A)(28)(a) to (d) of this	4096
section less any reduction required under division (A)(32) or (33)	4097
of this section.	4098

(a) The sum of the payments received by the county for all	4099
other purposes in calendar year 2010 under division (A)(1) of	4100
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of	4101
the Revised Code as they existed at that time;	4102

(b) The county's percentage share of county undivided local	4103
government fund allocations as certified to the tax commissioner	4104
for calendar year 2010 by the county auditor under division (J) of	4105
section 5747.51 of the Revised Code or division (F) of section	4106
5747.53 of the Revised Code multiplied by the total amount	4107
actually distributed in calendar year 2010 from the county	4108
undivided local government fund;	4109

(c) With respect to taxes levied by the county for all other	4110
purposes, the taxes charged and payable for such purposes against	4111
all property on the tax list of real and public utility property	4112
for tax year 2009, excluding taxes charged and payable for the	4113
purpose of paying debt charges;	4114

(d) The sum of the amounts distributed to the county in	4115
calendar year 2010 for the taxes levied pursuant to sections	4116
5739.021 and 5741.021 of the Revised Code.	4117

(29) "Total resources," in the case of a municipal	4118
corporation, means the sum of the amounts in divisions (A)(29)(a)	4119
to (g) of this section less any reduction required under division	4120
(A)(32) or (33) of this section.	4121

(a) The sum of the payments received by the municipal	4122
corporation in calendar year 2010 for current expense levy losses	4123
under division (A)(1) of section 5727.86 and divisions (A)(1) and	4124
(2) of section 5751.22 of the Revised Code as they existed at that	4125
time;	4126

(b) The municipal corporation's percentage share of county	4127
undivided local government fund allocations as certified to the	4128
tax commissioner for calendar year 2010 by the county auditor	4129
under division (J) of section 5747.51 of the Revised Code or	4130
division (F) of section 5747.53 of the Revised Code multiplied by	4131
the total amount actually distributed in calendar year 2010 from	4132
the county undivided local government fund;	4133

(c) The sum of the amounts distributed to the municipal	4134
corporation in calendar year 2010 pursuant to section 5747.50 of	4135
the Revised Code;	4136

(d) With respect to taxes levied by the municipal	4137
corporation, the taxes charged and payable against all property on	4138
the tax list of real and public utility property for current	4139
expenses, defined in division (A)(35) of this section, for tax	4140
year 2009;	4141

(e) The amount of admissions tax collected by the municipal	4142
corporation in calendar year 2008, or if such information has not	4143
yet been reported to the tax commissioner, in the most recent year	4144
before 2008 for which the municipal corporation has reported data	4145
to the commissioner;	4146

(f) The amount of income taxes collected by the municipal	4147
corporation in calendar year 2008, or if such information has not	4148
yet been reported to the tax commissioner, in the most recent year	4149
before 2008 for which the municipal corporation has reported data	4150
to the commissioner;	4151

(g) The municipal corporation's median estate tax	4152
collections.	4153

(30) "Total resources," in the case of a township, means the	4154
sum of the amounts in divisions (A)(30)(a) to (c) of this section	4155
less any reduction required under division (A)(32) or (33) of this	4156
section.	4157

(a) The sum of the payments received by the township in	4158
calendar year 2010 pursuant to division (A)(1) of section 5727.86	4159
of the Revised Code and divisions (A)(1) and (2) of section	4160
5751.22 of the Revised Code as they existed at that time,	4161
excluding payments received for debt purposes;	4162

(b) The township's percentage share of county undivided local	4163
government fund allocations as certified to the tax commissioner	4164
for calendar year 2010 by the county auditor under division (J) of	4165
section 5747.51 of the Revised Code or division (F) of section	4166
5747.53 of the Revised Code multiplied by the total amount	4167
actually distributed in calendar year 2010 from the county	4168
undivided local government fund;	4169

(c) With respect to taxes levied by the township, the taxes	4170
charged and payable against all property on the tax list of real	4171
and public utility property for tax year 2009 excluding taxes	4172
charged and payable for the purpose of paying debt charges.	4173

(31) "Total resources," in the case of a local taxing unit	4174
that is not a county, municipal corporation, or township, means	4175
the sum of the amounts in divisions (A)(31)(a) to (e) of this	4176
section less any reduction required under division (A)(32) of this	4177
section.	4178

(a) The sum of the payments received by the local taxing unit	4179
in calendar year 2010 pursuant to division (A)(1) of section	4180
5727.86 of the Revised Code and divisions (A)(1) and (2) of	4181
section 5751.22 of the Revised Code as they existed at that time;	4182

(b) The local taxing unit's percentage share of county	4183
undivided local government fund allocations as certified to the	4184
tax commissioner for calendar year 2010 by the county auditor	4185
under division (J) of section 5747.51 of the Revised Code or	4186
division (F) of section 5747.53 of the Revised Code multiplied by	4187
the total amount actually distributed in calendar year 2010 from	4188
the county undivided local government fund;	4189

(c) With respect to taxes levied by the local taxing unit,	4190
the taxes charged and payable against all property on the tax list	4191
of real and public utility property for tax year 2009 excluding	4192
taxes charged and payable for the purpose of paying debt charges;	4193

(d) The amount received from the tax commissioner during	4194
calendar year 2010 for sales or use taxes authorized under	4195
sections 5739.023 and 5741.022 of the Revised Code;	4196

(e) For institutions of higher education receiving tax	4197
revenue from a local levy, as identified in section 3358.02 of the	4198
Revised Code, the final state share of instruction allocation for	4199
fiscal year 2010 as calculated by the board of regents and	4200
reported to the state controlling board.	4201

(32) If a fixed-rate levy that is a qualifying levy is not	4202
charged and payable in any year after tax year 2010, "total	4203
resources" used to compute payments to be made under division	4204
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section	4205
5751.22 of the Revised Code in the tax years following the last	4206
year the levy is charged and payable shall be reduced to the	4207
extent that the payments are attributable to the fixed-rate levy	4208
loss of that levy as would be computed under division (C)(2) of	4209
section 5727.85, division (A)(1) of section 5727.85, divisions	4210
(C)(8) and (9) of section 5751.21, or division (A)(1) of section	4211
5751.22 of the Revised Code.	4212

(33) In the case of a county, municipal corporation, school	4213
district, or township with fixed-rate levy losses attributable to	4214
a tax levied under section 5705.23 of the Revised Code, "total	4215
resources" used to compute payments to be made under division	4216
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86,	4217
division (C)(12) of section 5751.21, or division (A)(1)(c) of	4218
section 5751.22 of the Revised Code shall be reduced by the	4219
amounts described in divisions (A)(34)(a) to (c) of this section	4220
to the extent that those amounts were included in calculating the	4221
"total resources" of the school district or local taxing unit	4222
under division (A)(22), (28), (29), or (30) of this section.	4223

(34) "Total library resources," in the case of a county,	4224
municipal corporation, school district, or township public library	4225
that receives the proceeds of a tax levied under section 5705.23	4226
of the Revised Code, means the sum of the amounts in divisions	4227
(A)(34)(a) to (c) of this section less any reduction required	4228
under division (A)(32) of this section.	4229

(a) The sum of the payments received by the county, municipal	4230
corporation, school district, or township public library in	4231
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the	4232
Revised Code, as they existed at that time, for fixed-rate levy	4233
losses attributable to a tax levied under section 5705.23 of the	4234
Revised Code for the benefit of the public library;	4235

(b) The public library's percentage share of county undivided	4236
local government fund allocations as certified to the tax	4237
commissioner for calendar year 2010 by the county auditor under	4238
division (J) of section 5747.51 of the Revised Code or division	4239
(F) of section 5747.53 of the Revised Code multiplied by the total	4240
amount actually distributed in calendar year 2010 from the county	4241
undivided local government fund;	4242

(c) With respect to a tax levied pursuant to section 5705.23	4243
of the Revised Code for the benefit of the public library, the	4244
amount of such tax that is charged and payable against all	4245
property on the tax list of real and public utility property for	4246
tax year 2009 excluding any tax that is charged and payable for	4247
the purpose of paying debt charges.	4248

(35) "Municipal current expense property tax levies" means	4249
all property tax levies of a municipality, except those with the	4250
following levy names: airport resurfacing; bond or any levy name	4251
including the word "bond"; capital improvement or any levy name	4252
including the word "capital"; debt or any levy name including the	4253
word "debt"; equipment or any levy name including the word	4254
"equipment," unless the levy is for combined operating and	4255
equipment; employee termination fund; fire pension or any levy	4256
containing the word "pension," including police pensions;	4257
fireman's fund or any practically similar name; sinking fund; road	4258
improvements or any levy containing the word "road"; fire truck or	4259
apparatus; flood or any levy containing the word "flood";	4260
conservancy district; county health; note retirement; sewage, or	4261
any levy containing the words "sewage" or "sewer"; park	4262
improvement; parkland acquisition; storm drain; street or any levy	4263
name containing the word "street"; lighting, or any levy name	4264
containing the word "lighting"; and water.	4265

(36) "Current expense TPP allocation" means, in the case of a	4266
school district or joint vocational school district, the sum of	4267
the payments received by the school district in fiscal year 2011	4268
pursuant to divisions (C)(10) and (11) of section 5751.21 of the	4269
Revised Code to the extent paid for current expense levies. In the	4270
case of a municipal corporation, "current expense TPP allocation"	4271
means the sum of the payments received by the municipal	4272
corporation in calendar year 2010 pursuant to divisions (A)(1) and	4273
(2) of section 5751.22 of the Revised Code to the extent paid for	4274
municipal current expense property tax levies as defined in	4275
division (A)(35) of this section, excluding any such payments	4276
received for current expense levy losses attributable to a tax	4277
levied under section 5705.23 of the Revised Code. If a fixed-rate	4278
levy that is a qualifying levy is not charged and payable in any	4279
year after tax year 2010, "current expense TPP allocation" used to	4280
compute payments to be made under division (C)(12) of section	4281
5751.21 or division (A)(1)(b) or (c) of section 5751.22 of the	4282
Revised Code in the tax years following the last year the levy is	4283
charged and payable shall be reduced to the extent that the	4284
payments are attributable to the fixed-rate levy loss of that levy	4285
as would be computed under divisions (C)(10) and (11) of section	4286
5751.21 or division (A)(1) of section 5751.22 of the Revised Code.	4287

(37) "TPP allocation" means the sum of payments received by a	4288
local taxing unit in calendar year 2010 pursuant to divisions	4289
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding	4290
any such payments received for fixed-rate levy losses attributable	4291
to a tax levied under section 5705.23 of the Revised Code. If a	4292
fixed-rate levy that is a qualifying levy is not charged and	4293
payable in any year after tax year 2010, "TPP allocation" used to	4294
compute payments to be made under division (A)(1)(b) or (c) of	4295
section 5751.22 of the Revised Code in the tax years following the	4296
last year the levy is charged and payable shall be reduced to the	4297
extent that the payments are attributable to the fixed-rate levy	4298
loss of that levy as would be computed under division (A)(1) of	4299
that section.	4300

(38) "Total TPP allocation" means, in the case of a school	4301
district or joint vocational school district, the sum of the	4302
amounts received in fiscal year 2011 pursuant to divisions (C)(10)	4303
and (11) and (D) of section 5751.21 of the Revised Code. In the	4304
case of a local taxing unit, "total TPP allocation" means the sum	4305
of payments received by the unit in calendar year 2010 pursuant to	4306
divisions (A)(1), (2), and (3) of section 5751.22 of the Revised	4307
Code. If a fixed-rate levy that is a qualifying levy is not	4308
charged and payable in any year after tax year 2010, "total TPP	4309
allocation" used to compute payments to be made under division	4310
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section	4311
5751.22 of the Revised Code in the tax years following the last	4312
year the levy is charged and payable shall be reduced to the	4313
extent that the payments are attributable to the fixed-rate levy	4314
loss of that levy as would be computed under divisions (C)(10) and	4315
(11) of section 5751.21 or division (A)(1) of section 5751.22 of	4316
the Revised Code.	4317

(39) "Non-current expense TPP allocation" means the	4318
difference of total TPP allocation minus the sum of current	4319
expense TPP allocation and the portion of total TPP allocation	4320
constituting reimbursement for debt levies, pursuant to division	4321
(D) of section 5751.21 of the Revised Code in the case of a school	4322
district or joint vocational school district and pursuant to	4323
division (A)(3) of section 5751.22 of the Revised Code in the case	4324
of a municipal corporation.	4325

(40) "TPP allocation for library purposes" means the sum of	4326
payments received by a county, municipal corporation, school	4327
district, or township public library in calendar year 2010	4328
pursuant to section 5751.22 of the Revised Code for fixed-rate	4329
levy losses attributable to a tax levied under section 5705.23 of	4330
the Revised Code. If a fixed-rate levy authorized under section	4331
5705.23 of the Revised Code that is a qualifying levy is not	4332
charged and payable in any year after tax year 2010, "TPP	4333
allocation for library purposes" used to compute payments to be	4334
made under division (A)(1)(d) of section 5751.22 of the Revised	4335
Code in the tax years following the last year the levy is charged	4336
and payable shall be reduced to the extent that the payments are	4337
attributable to the fixed-rate levy loss of that levy as would be	4338
computed under division (A)(1) of section 5751.22 of the Revised	4339
Code.	4340

(41) "Threshold per cent" means, in the case of a school	4341
district or joint vocational school district, two per cent for	4342
fiscal year 2012 and four per cent for fiscal years 2013 and	4343
thereafter. In the case of a local taxing unit or public library	4344
that receives the proceeds of a tax levied under section 5705.23	4345
of the Revised Code, "threshold per cent" means two per cent for	4346
tax year 2011, four per cent for tax year 2012, and six per cent	4347
for tax years 2013 and thereafter.	4348

(B)(1) The commercial activities tax receipts fund is hereby	4349
created in the state treasury and shall consist of money arising	4350
from the tax imposed under this chapter. Eighty-five	4351
one-hundredths of one per cent of the money credited to that fund	4352
shall be credited to the revenue enhancement fund and shall be	4353
used to defray the costs incurred by the department of taxation in	4354
administering the tax imposed by this chapter and in implementing	4355
tax reform measures. The remainder of the money in the commercial	4356
activities tax receipts fund shall first be credited to the	4357
commercial activity tax motor fuel receipts fund, pursuant to	4358
division (B)(2) of this section, and the remainder shall be	4359
credited in the following percentages each fiscal year to the	4360
general revenue fund, to the school district tangible property tax	4361
replacement fund, which is hereby created in the state treasury	4362
for the purpose of making the payments described in section	4363
5751.21 of the Revised Code, and to the local government tangible	4364
property tax replacement fund, which is hereby created in the	4365
state treasury for the purpose of making the payments described in	4366
section 5751.22 of the Revised Code, in the following percentages:	4367

Fiscal year	General Revenue Fund	School District Tangible Property Tax Replacement Fund	Local Government Tangible Property Tax Replacement Fund		4368
2006	67.7%	22.6%	9.7%		4369
2007	0%	70.0%	30.0%		4370
2008	0%	70.0%	30.0%		4371
2009	0%	70.0%	30.0%		4372
2010	0%	70.0%	30.0%		4373
2011	0%	70.0%	30.0%		4374
2012	25.0%	52.5%	22.5%		4375
2013 and thereafter	50.0%	35.0%	15.0%		4376

(2) Not later than the twentieth day of February, May,	4377
August, and November of each year, the commissioner shall provide	4378
for payment from the commercial activities tax receipts fund to	4379
the commercial activity tax motor fuel receipts fund an amount	4380
that bears the same ratio to the balance in the commercial	4381
activities tax receipts fund that (a) the taxable gross receipts	4382
attributed to motor fuel used for propelling vehicles on public	4383
highways as indicated by returns filed by the tenth day of that	4384
month for a liability that is due and payable on or after July 1,	4385
2013, for a tax period ending before July 1, 2014, bears to (b)	4386
all taxable gross receipts as indicated by those returns for such	4387
liabilities.	4388

(C) Not later than September 15, 2005, the tax commissioner	4389
shall determine for each school district, joint vocational school	4390
district, and local taxing unit its machinery and equipment,	4391
inventory property, furniture and fixtures property, and telephone	4392
property tax value losses, which are the applicable amounts	4393
described in divisions (C)(1), (2), (3), and (4) of this section,	4394
except as provided in division (C)(5) of this section:	4395

(1) Machinery and equipment property tax value loss is the	4396
taxable value of machinery and equipment property as reported by	4397
taxpayers for tax year 2004 multiplied by:	4398

(a) For tax year 2006, thirty-three and eight-tenths per	4399
cent;	4400

(b) For tax year 2007, sixty-one and three-tenths per cent;

4401

(c) For tax year 2008, eighty-three per cent;

4402

(d) For tax year 2009 and thereafter, one hundred per cent.

4403

(2) Inventory property tax value loss is the taxable value of	4404
inventory property as reported by taxpayers for tax year 2004	4405
multiplied by:	4406

(a) For tax year 2006, a fraction, the numerator of which is	4407
five and three-fourths and the denominator of which is	4408
twenty-three;	4409

(b) For tax year 2007, a fraction, the numerator of which is	4410
nine and one-half and the denominator of which is twenty-three;	4411

(c) For tax year 2008, a fraction, the numerator of which is	4412
thirteen and one-fourth and the denominator of which is	4413
twenty-three;	4414

(d) For tax year 2009 and thereafter a fraction, the	4415
numerator of which is seventeen and the denominator of which is	4416
twenty-three.	4417

(3) Furniture and fixtures property tax value loss is the	4418
taxable value of furniture and fixture property as reported by	4419
taxpayers for tax year 2004 multiplied by:	4420

(a) For tax year 2006, twenty-five per cent;

4421

(b) For tax year 2007, fifty per cent;

4422

(c) For tax year 2008, seventy-five per cent;

4423

(d) For tax year 2009 and thereafter, one hundred per cent.

4424

The taxable value of property reported by taxpayers used in	4425
divisions (C)(1), (2), and (3) of this section shall be such	4426
values as determined to be final by the tax commissioner as of	4427
August 31, 2005. Such determinations shall be final except for any	4428
correction of a clerical error that was made prior to August 31,	4429
2005, by the tax commissioner.	4430

(4) Telephone property tax value loss is the taxable value of	4431
telephone property as taxpayers would have reported that property	4432
for tax year 2004 if the assessment rate for all telephone	4433
property for that year were twenty-five per cent, multiplied by:	4434

(a) For tax year 2006, zero per cent;

4435

(b) For tax year 2007, zero per cent;

4436

(c) For tax year 2008, zero per cent;

4437

(d) For tax year 2009, sixty per cent;

4438

(e) For tax year 2010, eighty per cent;

4439

(f) For tax year 2011 and thereafter, one hundred per cent.

4440

(5) Division (C)(5) of this section applies to any school	4441
district, joint vocational school district, or local taxing unit	4442
in a county in which is located a facility currently or formerly	4443
devoted to the enrichment or commercialization of uranium or	4444
uranium products, and for which the total taxable value of	4445
property listed on the general tax list of personal property for	4446
any tax year from tax year 2001 to tax year 2004 was fifty per	4447
cent or less of the taxable value of such property listed on the	4448
general tax list of personal property for the next preceding tax	4449
year.	4450

In computing the fixed-rate levy losses under divisions	4451
(D)(1), (2), and (3) of this section for any school district,	4452
joint vocational school district, or local taxing unit to which	4453
division (C)(5) of this section applies, the taxable value of such	4454
property as listed on the general tax list of personal property	4455
for tax year 2000 shall be substituted for the taxable value of	4456
such property as reported by taxpayers for tax year 2004, in the	4457
taxing district containing the uranium facility, if the taxable	4458
value listed for tax year 2000 is greater than the taxable value	4459
reported by taxpayers for tax year 2004. For the purpose of making	4460
the computations under divisions (D)(1), (2), and (3) of this	4461
section, the tax year 2000 valuation is to be allocated to	4462
machinery and equipment, inventory, and furniture and fixtures	4463
property in the same proportions as the tax year 2004 values. For	4464
the purpose of the calculations in division (A) of section 5751.21	4465
of the Revised Code, the tax year 2004 taxable values shall be	4466
used.	4467

To facilitate the calculations required under division (C) of	4468
this section, the county auditor, upon request from the tax	4469
commissioner, shall provide by August 1, 2005, the values of	4470
machinery and equipment, inventory, and furniture and fixtures for	4471
all single-county personal property taxpayers for tax year 2004.	4472

(D) Not later than September 15, 2005, the tax commissioner	4473
shall determine for each tax year from 2006 through 2009 for each	4474
school district, joint vocational school district, and local	4475
taxing unit its machinery and equipment, inventory, and furniture	4476
and fixtures fixed-rate levy losses, and for each tax year from	4477
2006 through 2011 its telephone property fixed-rate levy loss.	4478
Except as provided in division (F) of this section, such losses	4479
are the applicable amounts described in divisions (D)(1), (2),	4480
(3), and (4) of this section:	4481

(1) The machinery and equipment fixed-rate levy loss is the	4482
machinery and equipment property tax value loss multiplied by the	4483
sum of the tax rates of fixed-rate qualifying levies.	4484

(2) The inventory fixed-rate loss is the inventory property	4485
tax value loss multiplied by the sum of the tax rates of	4486
fixed-rate qualifying levies.	4487

(3) The furniture and fixtures fixed-rate levy loss is the	4488
furniture and fixture property tax value loss multiplied by the	4489
sum of the tax rates of fixed-rate qualifying levies.	4490

(4) The telephone property fixed-rate levy loss is the	4491
telephone property tax value loss multiplied by the sum of the tax	4492
rates of fixed-rate qualifying levies.	4493

(E) Not later than September 15, 2005, the tax commissioner	4494
shall determine for each school district, joint vocational school	4495
district, and local taxing unit its fixed-sum levy loss. The	4496
fixed-sum levy loss is the amount obtained by subtracting the	4497
amount described in division (E)(2) of this section from the	4498
amount described in division (E)(1) of this section:	4499

(1) The sum of the machinery and equipment property tax value	4500
loss, the inventory property tax value loss, and the furniture and	4501
fixtures property tax value loss, and, for 2008 through 2010, the	4502
telephone property tax value loss of the district or unit	4503
multiplied by the sum of the fixed-sum tax rates of qualifying	4504
levies. For 2006 through 2010, this computation shall include all	4505
qualifying levies remaining in effect for the current tax year and	4506
any school district levies charged and payable under section	4507
5705.194 or 5705.213 of the Revised Code that are qualifying	4508
levies not remaining in effect for the current year. For 2011	4509
through 2017 in the case of school district levies charged and	4510
payable under section 5705.194 or 5705.213 of the Revised Code and	4511
for all years after 2010 in the case of other fixed-sum levies,	4512
this computation shall include only qualifying levies remaining in	4513
effect for the current year. For purposes of this computation, a	4514
qualifying school district levy charged and payable under section	4515
5705.194 or 5705.213 of the Revised Code remains in effect in a	4516
year after 2010 only if, for that year, the board of education	4517
levies a school district levy charged and payable under section	4518
5705.194, 5705.199, 5705.213, or 5705.219 of the Revised Code for	4519
an annual sum at least equal to the annual sum levied by the board	4520
in tax year 2004 less the amount of the payment certified under	4521
this division for 2006.	4522

(2) The total taxable value in tax year 2004 less the sum of	4523
the machinery and equipment, inventory, furniture and fixtures,	4524
and telephone property tax value losses in each school district,	4525
joint vocational school district, and local taxing unit multiplied	4526
by one-half of one mill per dollar.	4527

(3) For the calculations in divisions (E)(1) and (2) of this	4528
section, the tax value losses are those that would be calculated	4529
for tax year 2009 under divisions (C)(1), (2), and (3) of this	4530
section and for tax year 2011 under division (C)(4) of this	4531
section.	4532

(4) To facilitate the calculation under divisions (D) and (E)	4533
of this section, not later than September 1, 2005, any school	4534
district, joint vocational school district, or local taxing unit	4535
that has a qualifying levy that was approved at an election	4536
conducted during 2005 before September 1, 2005, shall certify to	4537
the tax commissioner a copy of the county auditor's certificate of	4538
estimated property tax millage for such levy as required under	4539
division (B) of section 5705.03 of the Revised Code, which is the	4540
rate that shall be used in the calculations under such divisions.	4541

If the amount determined under division (E) of this section	4542
for any school district, joint vocational school district, or	4543
local taxing unit is greater than zero, that amount shall equal	4544
the reimbursement to be paid pursuant to division (E) of section	4545
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,	4546
and the one-half of one mill that is subtracted under division	4547
(E)(2) of this section shall be apportioned among all contributing	4548
fixed-sum levies in the proportion that each levy bears to the sum	4549
of all fixed-sum levies within each school district, joint	4550
vocational school district, or local taxing unit.	4551

(F) If a school district levies a tax under section 5705.219	4552
of the Revised Code, the fixed-rate levy loss for qualifying	4553
levies, to the extent repealed under that section, shall equal the	4554
sum of the following amounts in lieu of the amounts computed for	4555
such levies under division (D) of this section:	4556

(1) The sum of the rates of qualifying levies to the extent	4557
so repealed multiplied by the sum of the machinery and equipment,	4558
inventory, and furniture and fixtures tax value losses for 2009 as	4559
determined under that division;	4560

(2) The sum of the rates of qualifying levies to the extent	4561
so repealed multiplied by the telephone property tax value loss	4562
for 2011 as determined under that division.	4563

The fixed-rate levy losses for qualifying levies to the	4564
extent not repealed under section 5705.219 of the Revised Code	4565
shall be as determined under division (D) of this section. The	4566
revised fixed-rate levy losses determined under this division and	4567
division (D) of this section first apply in the year following the	4568
first year the district levies the tax under section 5705.219 of	4569
the Revised Code.	4570

(G) Not later than October 1, 2005, the tax commissioner	4571
shall certify to the department of education for every school	4572
district and joint vocational school district the machinery and	4573
equipment, inventory, furniture and fixtures, and telephone	4574
property tax value losses determined under division (C) of this	4575
section, the machinery and equipment, inventory, furniture and	4576
fixtures, and telephone fixed-rate levy losses determined under	4577
division (D) of this section, and the fixed-sum levy losses	4578
calculated under division (E) of this section. The calculations	4579
under divisions (D) and (E) of this section shall separately	4580
display the levy loss for each levy eligible for reimbursement.	4581

(H) Not later than October 1, 2005, the tax commissioner	4582
shall certify the amount of the fixed-sum levy losses to the	4583
county auditor of each county in which a school district, joint	4584
vocational school district, or local taxing unit with a fixed-sum	4585
levy loss reimbursement has territory.	4586

(I) Not later than the twenty-eighth day of February each	4587
year beginning in 2011 and ending in 2014, the tax commissioner	4588
shall certify to the department of education for each school	4589
district first levying a tax under section 5705.219 of the Revised	4590
Code in the preceding year the revised fixed-rate levy losses	4591
determined under divisions (D) and (F) of this section.	4592

(J)(1) There is hereby created in the state treasury the	4593
commercial activity tax motor fuel receipts fund.	4594

(2)(a) On or before June 15, 2014, the director of the Ohio	4595
public works commission shall certify to the director of budget	4596
and management the amount of debt service paid from the general	4597
revenue fund in fiscal years 2013 and 2014 on bonds issued to	4598
finance or assist in the financing of the cost of local	4599
subdivision public infrastructure capital improvement projects, as	4600
provided for in Sections 2k, 2m, and 2p of Article VIII, Ohio	4601
Constitution, that are attributable to costs for construction,	4602
reconstruction, maintenance, or repair of public highways and	4603
bridges and other statutory highway purposes. That certification	4604
shall allocate the total amount of debt service paid from the	4605
general revenue fund and attributable to those costs in each of	4606
fiscal years 2013 and 2014 according to the applicable section of	4607
the Ohio Constitution under which the bonds were originally	4608
issued.	4609

(b) On or before June 30, 2014, the director of budget and	4610
management shall determine an amount up to but not exceeding the	4611
amount certified under division (J)(2)(a) of this section and	4612
shall reserve that amount from the cash balance in the commercial	4613
activity tax motor fuel receipts fund for transfer to the general	4614
revenue fund at times and in amounts to be determined by the	4615
director. The director shall transfer the cash balance in the	4616
commercial activity tax motor fuel receipts fund in excess of the	4617
amount so reserved to the highway operating fund on or before June	4618
30, 2014.	4619

(3)(a) On or before the fifteenth day of June of each fiscal	4620
year beginning with fiscal year 2015, the director of the Ohio	4621
public works commission shall certify to the director of budget	4622
and management the amount of debt service paid from the general	4623
revenue fund in the current fiscal year on bonds issued to finance	4624
or assist in the financing of the cost of local subdivision public	4625
infrastructure capital improvement projects, as provided for in	4626
Sections 2k, 2m, and 2p of Article VIII, Ohio Constitution, that	4627
are attributable to costs for construction, reconstruction,	4628
maintenance, or repair of public highways and bridges and other	4629
statutory highway purposes. That certification shall allocate the	4630
total amount of debt service paid from the general revenue fund	4631
and attributable to those costs in the current fiscal year	4632
according to the applicable section of the Ohio Constitution under	4633
which the bonds were originally issued.	4634

(b) On or before the thirtieth day of June of each fiscal	4635
year beginning with fiscal year 2015, the director of budget and	4636
management shall determine an amount up to but not exceeding the	4637
amount certified under division (J)(3)(a) of this section and	4638
shall reserve that amount from the cash balance in the motor fuel	4639
receiptspetroleum activity tax public highways fund or the	4640
commercial activity tax motor fuel receipts fund for transfer to	4641
the general revenue fund at times and in amounts to be determined	4642
by the director. The director shall transfer the cash balance in	4643
the motor fuel receiptspetroleum activity tax public highways	4644
fund or the commercial activity tax motor fuel receipts fund in	4645
excess of the amount so reserved to the highway operating fund on	4646
or before the thirtieth day of June of the current fiscal year.	4647

Section 2. That existing sections 122.17, 122.171, 122.86,	4648
166.21, 718.15, 718.151, 3734.905, 4921.13, 4921.19, 5703.056,	4649
5703.059, 5703.21, 5727.47, 5727.91, 5735.01, 5735.026, 5735.03,	4650
5735.06, 5735.062, 5735.07, 5735.09, 5735.12, 5735.141, 5735.23,	4651
5736.06, 5736.09, 5736.13, 5743.01, 5743.021, 5743.024, 5743.025,	4652
5743.03, 5743.04, 5743.05, 5743.051, 5743.112, 5743.52, 5743.65,	4653
5747.08, 5747.98, and 5751.20, and sections 183.35, 5726.08,	4654
5733.30, 5735.16, 5743.06, and 5745.10 of the Revised Code are	4655
hereby repealed.	4656

Section 3.  The amendment by this act of section 122.86 of	4657
the Revised Code applies to any qualifying investment made on or	4658
after July 1, 2011, including any qualifying investment made on or	4659
after July 1, 2013.	4660

Section 4. Division (J) of section 5751.20 of the Revised	4661
Code is amended by this act and also by H.B. 59 of the 130th	4662
General Assembly (effective July 1, 2014). The amendments of H.B.	4663
59 are included in this act to confirm the intention to retain	4664
them, but are not intended to be effective until July 1, 2014.	4665