Bill Text: OH HB51 | 2013-2014 | 130th General Assembly | Engrossed

Ohio House Bill 51 (Prior Session Legislation)

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

Bill Title: That are scheduled to take effect January 1, 2017, to continue the amendments by this act on and after that effective date; to make appropriations for programs related to transportation and public safety for the biennium beginning July 1, 2013, and ending June 30, 2015, and to provide authorization and conditions for the operation of those programs.

Spectrum: Moderate Partisan Bill (Republican 23-3)

Status: (Passed) 2013-07-01 - Effective Date [HB51 Detail]

Download: Ohio-2013-HB51-Engrossed.html

As Passed by the House

130th General Assembly

Regular Session

2013-2014

Am. H. B. No. 51

Representatives McGregor, Patmon

Cosponsors: Representatives Wachtmann, Amstutz, Beck, Grossman, Hackett, Huffman, Perales, Sears, Sprague, Stebelton, Terhar, Speaker Batchelder

A BILL

To amend sections 9.33, 153.65, 718.01, 2937.221,

3354.13, 3355.10, 3357.12, 5503.31, 5503.32,

5513.01, 5533.31, 5537.01, 5537.02, 5537.03,

5537.04, 5537.05, 5537.051, 5537.06, 5537.07,

5537.08, 5537.09, 5537.11, 5537.12, 5537.13,

5537.14, 5537.15, 5537.16, 5537.17, 5537.19,

5537.20, 5537.21, 5537.22, 5537.24, 5537.25,

5537.26, 5537.27, 5537.28, 5537.30, 5728.01,

5735.05, 5735.23, 5739.02, 5747.01, and 5751.01;

to enact section 5537.18; and to repeal sections

126.60, 126.601, 126.602, 126.603, 126.604, and

126.605 of the Revised Code to authorize the Ohio

Turnpike Commission to issue revenue bonds for

infrastructure projects, to rename the Ohio

Turnpike Commission as the Ohio Turnpike and

Infrastructure Commission, to repeal authority

allowing the Director of Budget and Management and

the Director of Transportation to execute a

contract with a private entity for the purpose of

outsourcing turnpike-related highway services, to

make other changes in the law governing the Ohio

Turnpike Commission, and to make an appropriation.

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

Section 101.01. That sections 9.33, 153.65, 718.01,	23
2937.221, 3354.13, 3355.10, 3357.12, 5503.31, 5503.32, 5513.01,	24
5533.31, 5537.01, 5537.02, 5537.03, 5537.04, 5537.05, 5537.051,	25
5537.06, 5537.07, 5537.08, 5537.09, 5537.11, 5537.12, 5537.13,	26
5537.14, 5537.15, 5537.16, 5537.17, 5537.19, 5537.20, 5537.21,	27
5537.22, 5537.24, 5537.25, 5537.26, 5537.27, 5537.28, 5537.30,	28
5728.01, 5735.05, 5735.23, 5739.02, 5747.01, and 5751.01 be	29
amended and section 5537.18 of the Revised Code be enacted to read	30
as follows:	31

Sec. 9.33. As used in sections 9.33 to 9.335 of the Revised	32
Code:	33

(A) "Construction manager" means a person with substantial	34
discretion and authority to plan, coordinate, manage, and direct	35
all phases of a project for the construction, demolition,	36
alteration, repair, or reconstruction of any public building,	37
structure, or other improvement, but does not mean the person who	38
provides the professional design services or who actually performs	39
the construction, demolition, alteration, repair, or	40
reconstruction work on the project.	41

(B)(1) "Construction manager at risk" means a person with	42
substantial discretion and authority to plan, coordinate, manage,	43
direct, and construct all phases of a project for the	44
construction, demolition, alteration, repair, or reconstruction of	45
any public building, structure, or other improvement and who	46
provides the public authority a guaranteed maximum price as	47
determined in section 9.334 of the Revised Code.	48

(2) As used in division (B)(1) of this section:

(a) "Construct" includes performing, or subcontracting for	50
performing, construction, demolition, alteration, repair, or	51
reconstruction.	52

(b) "Manage" includes approving bidders and awarding	53
subcontracts for furnishing materials regarding, or for	54
performing, construction, demolition, alteration, repair, or	55
reconstruction.	56

(C) "Construction management contract" means a contract	57
between a public authority and another person obligating the	58
person to provide construction management services.	59

(D) "Construction management services" or "management	60
services" means the range of services that either a construction	61
manager or a construction manager at risk may provide.	62

(E) "Qualified" means having the following qualifications:

(1) Competence to perform the required management services as	64
indicated by the technical training, education, and experience of	65
the construction manager's or construction manager at risk's	66
personnel, especially the technical training, education, and	67
experience of the construction manager's or construction manager	68
at risk's employees who would be assigned to perform the services;	69

(2) Ability in terms of workload and the availability of	70
qualified personnel, equipment, and facilities to perform the	71
required management services competently and expeditiously;	72

(3) Past performance as reflected by the evaluations of	73
previous clients with respect to factors such as control of costs,	74
quality of work, and meeting of deadlines;	75

(4) Financial responsibility as evidenced by the capability	76
to provide a letter of credit pursuant to Chapter 1305. of the	77
Revised Code, a surety bond, certified check, or cashier's check	78
in an amount equal to the value of the construction management	79
contract, or by other means acceptable to the public authority;	80

(5) Other similar factors.

(F)~~(1)~~ "Public authority" means the state, any state	82
institution of higher education as defined in section 3345.011 of	83
the Revised Code, any county, township, municipal corporation,	84
school district, or other political subdivision, or any public	85
agency, authority, board, commission, instrumentality, or special	86
purpose district of the state or of a political subdivision.	87

~~(2) "Public authority" does not include the Ohio turnpike~~	88
~~commission.~~	89

(G) "Open book pricing method" means a method in which a	90
construction manager at risk provides the public authority, at the	91
public authority's request, all books, records, documents, and	92
other data in its possession pertaining to the bidding, pricing,	93
or performance of a construction management contract awarded to	94
the construction manager at risk.	95

Sec. 153.65. As used in sections 153.65 to 153.73 of the	96
Revised Code:	97

(A)~~(1)~~ "Public authority" means the state, a state	98
institution of higher education as defined in section 3345.011 of	99
the Revised Code, a county, township, municipal corporation,	100
school district, or other political subdivision, or any public	101
agency, authority, board, commission, instrumentality, or special	102
purpose district of the state or of a political subdivision.	103

~~(2) "Public authority" does not include the Ohio turnpike~~	104
~~commission.~~	105

(B) "Professional design firm" means any person legally	106
engaged in rendering professional design services.	107

(C) "Professional design services" means services within the	108
scope of practice of an architect or landscape architect	109
registered under Chapter 4703. of the Revised Code or a	110
professional engineer or surveyor registered under Chapter 4733.	111
of the Revised Code.	112

(D) "Qualifications" means all of the following:

113

(1)(a) For a professional design firm, competence to perform	114
the required professional design services as indicated by the	115
technical training, education, and experience of the firm's	116
personnel, especially the technical training, education, and	117
experience of the employees within the firm who would be assigned	118
to perform the services;	119

(b) For a design-build firm, competence to perform the	120
required design-build services as indicated by the technical	121
training, education, and experience of the design-build firm's	122
personnel and key consultants, especially the technical training,	123
education, and experience of the employees and consultants of the	124
design-build firm who would be assigned to perform the services,	125
including the proposed architect or engineer of record.	126

(2) Ability of the firm in terms of its workload and the	127
availability of qualified personnel, equipment, and facilities to	128
perform the required professional design services or design-build	129
services competently and expeditiously;	130

(3) Past performance of the firm as reflected by the	131
evaluations of previous clients with respect to such factors as	132
control of costs, quality of work, and meeting of deadlines;	133

(4) Any other relevant factors as determined by the public	134
authority;	135

(5) With respect to a design-build firm, compliance with	136
sections 4703.182, 4703.332, and 4733.16 of the Revised Code,	137
including the use of a licensed design professional for all design	138
services.	139

(E) "Design-build contract" means a contract between a public	140
authority and another person that obligates the person to provide	141
design-build services.	142

(F) "Design-build firm" means a person capable of providing	143
design-build services.	144

(G) "Design-build services" means services that form an	145
integrated delivery system for which a person is responsible to a	146
public authority for both the design and construction, demolition,	147
alteration, repair, or reconstruction of a public improvement.	148

(H) "Architect or engineer of record" means the architect or	149
engineer that serves as the final signatory on the plans and	150
specifications for the design-build project.	151

(I) "Criteria architect or engineer" means the architect or	152
engineer retained by a public authority to prepare conceptual	153
plans and specifications, to assist the public authority in	154
connection with the establishment of the design criteria for a	155
design-build project, and, if requested by the public authority,	156
to serve as the representative of the public authority and	157
provide, during the design-build project, other design and	158
construction administration services on behalf of the public	159
authority, including but not limited to, confirming that the	160
design prepared by the design-build firm reflects the original	161
design intent established in the design criteria package.	162

(J) "Open book pricing method" means a method in which a	163
design-build firm provides the public authority, at the public	164
authority's request, all books, records, documents, contracts,	165
subcontracts, purchase orders, and other data in its possession	166
pertaining to the bidding, pricing, or performance of a contract	167
for design-build services awarded to the design-build firm.	168

Sec. 718.01. (A) As used in this chapter:

169

(1) "Adjusted federal taxable income" means a C corporation's	170
federal taxable income before net operating losses and special	171
deductions as determined under the Internal Revenue Code, adjusted	172
as follows:	173

(a) Deduct intangible income to the extent included in	174
federal taxable income. The deduction shall be allowed regardless	175
of whether the intangible income relates to assets used in a trade	176
or business or assets held for the production of income.	177

(b) Add an amount equal to five per cent of intangible income	178
deducted under division (A)(1)(a) of this section, but excluding	179
that portion of intangible income directly related to the sale,	180
exchange, or other disposition of property described in section	181
1221 of the Internal Revenue Code;	182

(c) Add any losses allowed as a deduction in the computation	183
of federal taxable income if the losses directly relate to the	184
sale, exchange, or other disposition of an asset described in	185
section 1221 or 1231 of the Internal Revenue Code;	186

(d)(i) Except as provided in division (A)(1)(d)(ii) of this	187
section, deduct income and gain included in federal taxable income	188
to the extent the income and gain directly relate to the sale,	189
exchange, or other disposition of an asset described in section	190
1221 or 1231 of the Internal Revenue Code;	191

(ii) Division (A)(1)(d)(i) of this section does not apply to	192
the extent the income or gain is income or gain described in	193
section 1245 or 1250 of the Internal Revenue Code.	194

(e) Add taxes on or measured by net income allowed as a	195
deduction in the computation of federal taxable income;	196

(f) In the case of a real estate investment trust and	197
regulated investment company, add all amounts with respect to	198
dividends to, distributions to, or amounts set aside for or	199
credited to the benefit of investors and allowed as a deduction in	200
the computation of federal taxable income;	201

(g) Deduct, to the extent not otherwise deducted or excluded	202
in computing federal taxable income, any income ~~derived from~~	203
~~providing public services under a contract through a project owned~~	204
~~by the state, as described in section 126.604 of the Revised Code~~	205
or derived from a transfer agreement or from the enterprise	206
transferred under that agreement under section 4313.02 of the	207
Revised Code.	208

If the taxpayer is not a C corporation and is not an	209
individual, the taxpayer shall compute adjusted federal taxable	210
income as if the taxpayer were a C corporation, except guaranteed	211
payments and other similar amounts paid or accrued to a partner,	212
former partner, member, or former member shall not be allowed as a	213
deductible expense; amounts paid or accrued to a qualified	214
self-employed retirement plan with respect to an owner or	215
owner-employee of the taxpayer, amounts paid or accrued to or for	216
health insurance for an owner or owner-employee, and amounts paid	217
or accrued to or for life insurance for an owner or owner-employee	218
shall not be allowed as a deduction.	219

Nothing in division (A)(1) of this section shall be construed	220
as allowing the taxpayer to add or deduct any amount more than	221
once or shall be construed as allowing any taxpayer to deduct any	222
amount paid to or accrued for purposes of federal self-employment	223
tax.	224

Nothing in this chapter shall be construed as limiting or	225
removing the ability of any municipal corporation to administer,	226
audit, and enforce the provisions of its municipal income tax.	227

(2) "Internal Revenue Code" means the Internal Revenue Code	228
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.	229

(3) "Schedule C" means internal revenue service schedule C	230
filed by a taxpayer pursuant to the Internal Revenue Code.	231

(4) "Form 2106" means internal revenue service form 2106	232
filed by a taxpayer pursuant to the Internal Revenue Code.	233

(5) "Intangible income" means income of any of the following	234
types: income yield, interest, capital gains, dividends, or other	235
income arising from the ownership, sale, exchange, or other	236
disposition of intangible property including, but not limited to,	237
investments, deposits, money, or credits as those terms are	238
defined in Chapter 5701. of the Revised Code, and patents,	239
copyrights, trademarks, tradenames, investments in real estate	240
investment trusts, investments in regulated investment companies,	241
and appreciation on deferred compensation. "Intangible income"	242
does not include prizes, awards, or other income associated with	243
any lottery winnings or other similar games of chance.	244

(6) "S corporation" means a corporation that has made an	245
election under subchapter S of Chapter 1 of Subtitle A of the	246
Internal Revenue Code for its taxable year.	247

(7) For taxable years beginning on or after January 1, 2004,	248
"net profit" for a taxpayer other than an individual means	249
adjusted federal taxable income and "net profit" for a taxpayer	250
who is an individual means the individual's profit required to be	251
reported on schedule C, schedule E, or schedule F, other than any	252
amount allowed as a deduction under division (E)(2) or (3) of this	253
section or amounts described in division (H) of this section.	254

(8) "Taxpayer" means a person subject to a tax on income	255
levied by a municipal corporation. Except as provided in division	256
(L) of this section, "taxpayer" does not include any person that	257
is a disregarded entity or a qualifying subchapter S subsidiary	258
for federal income tax purposes, but "taxpayer" includes any other	259
person who owns the disregarded entity or qualifying subchapter S	260
subsidiary.	261

(9) "Taxable year" means the corresponding tax reporting	262
period as prescribed for the taxpayer under the Internal Revenue	263
Code.	264

(10) "Tax administrator" means the individual charged with	265
direct responsibility for administration of a tax on income levied	266
by a municipal corporation and includes:	267

(a) The central collection agency and the regional income tax	268
agency and their successors in interest, and other entities	269
organized to perform functions similar to those performed by the	270
central collection agency and the regional income tax agency;	271

(b) A municipal corporation acting as the agent of another	272
municipal corporation; and	273

(c) Persons retained by a municipal corporation to administer	274
a tax levied by the municipal corporation, but only if the	275
municipal corporation does not compensate the person in whole or	276
in part on a contingency basis.	277

(11) "Person" includes individuals, firms, companies,	278
business trusts, estates, trusts, partnerships, limited liability	279
companies, associations, corporations, governmental entities, and	280
any other entity.	281

(12) "Schedule E" means internal revenue service schedule E	282
filed by a taxpayer pursuant to the Internal Revenue Code.	283

(13) "Schedule F" means internal revenue service schedule F	284
filed by a taxpayer pursuant to the Internal Revenue Code.	285

(B) No municipal corporation shall tax income at other than a	286
uniform rate.	287

(C) No municipal corporation shall levy a tax on income at a	288
rate in excess of one per cent without having obtained the	289
approval of the excess by a majority of the electors of the	290
municipality voting on the question at a general, primary, or	291
special election. The legislative authority of the municipal	292
corporation shall file with the board of elections at least ninety	293
days before the day of the election a copy of the ordinance	294
together with a resolution specifying the date the election is to	295
be held and directing the board of elections to conduct the	296
election. The ballot shall be in the following form: "Shall the	297
Ordinance providing for a ... per cent levy on income for (Brief	298
description of the purpose of the proposed levy) be passed?	299

300

		FOR THE INCOME TAX			301
		AGAINST THE INCOME TAX	"		302

303

In the event of an affirmative vote, the proceeds of the levy	304
may be used only for the specified purpose.	305

(D)(1) Except as otherwise provided in this section, no	306
municipal corporation shall exempt from a tax on income	307
compensation for personal services of individuals over eighteen	308
years of age or the net profit from a business or profession.	309

(2)(a) For taxable years beginning on or after January 1,	310
2004, no municipal corporation shall tax the net profit from a	311
business or profession using any base other than the taxpayer's	312
adjusted federal taxable income.	313

(b) Division (D)(2)(a) of this section does not apply to any	314
taxpayer required to file a return under section 5745.03 of the	315
Revised Code or to the net profit from a sole proprietorship.	316

(E)(1) The legislative authority of a municipal corporation	317
may, by ordinance or resolution, exempt from withholding and from	318
a tax on income the following:	319

(a) Compensation arising from the sale, exchange, or other	320
disposition of a stock option, the exercise of a stock option, or	321
the sale, exchange, or other disposition of stock purchased under	322
a stock option; or	323

(b) Compensation attributable to a nonqualified deferred	324
compensation plan or program described in section 3121(v)(2)(C) of	325
the Internal Revenue Code.	326

(2) The legislative authority of a municipal corporation may	327
adopt an ordinance or resolution that allows a taxpayer who is an	328
individual to deduct, in computing the taxpayer's municipal income	329
tax liability, an amount equal to the aggregate amount the	330
taxpayer paid in cash during the taxable year to a health savings	331
account of the taxpayer, to the extent the taxpayer is entitled to	332
deduct that amount on internal revenue service form 1040.	333

(3) The legislative authority of a municipal corporation may	334
adopt an ordinance or resolution that allows a taxpayer who has a	335
net profit from a business or profession that is operated as a	336
sole proprietorship to deduct from that net profit the amount that	337
the taxpayer paid during the taxable year for medical care	338
insurance premiums for the taxpayer, the taxpayer's spouse, and	339
dependents as defined in section 5747.01 of the Revised Code. The	340
deduction shall be allowed to the same extent the taxpayer is	341
entitled to deduct the premiums on internal revenue service form	342
1040. The deduction allowed under this division shall be net of	343
any related premium refunds, related premium reimbursements, or	344
related insurance premium dividends received by the taxpayer	345
during the taxable year.	346

(F) If an individual's taxable income includes income against	347
which the taxpayer has taken a deduction for federal income tax	348
purposes as reportable on the taxpayer's form 2106, and against	349
which a like deduction has not been allowed by the municipal	350
corporation, the municipal corporation shall deduct from the	351
taxpayer's taxable income an amount equal to the deduction shown	352
on such form allowable against such income, to the extent not	353
otherwise so allowed as a deduction by the municipal corporation.	354

(G)(1) In the case of a taxpayer who has a net profit from a	355
business or profession that is operated as a sole proprietorship,	356
no municipal corporation may tax or use as the base for	357
determining the amount of the net profit that shall be considered	358
as having a taxable situs in the municipal corporation, an amount	359
other than the net profit required to be reported by the taxpayer	360
on schedule C or F from such sole proprietorship for the taxable	361
year.	362

(2) In the case of a taxpayer who has a net profit from	363
rental activity required to be reported on schedule E, no	364
municipal corporation may tax or use as the base for determining	365
the amount of the net profit that shall be considered as having a	366
taxable situs in the municipal corporation, an amount other than	367
the net profit from rental activities required to be reported by	368
the taxpayer on schedule E for the taxable year.	369

(H) A municipal corporation shall not tax any of the	370
following:	371

(1) The military pay or allowances of members of the armed	372
forces of the United States and of members of their reserve	373
components, including the Ohio national guard;	374

(2) The income of religious, fraternal, charitable,	375
scientific, literary, or educational institutions to the extent	376
that such income is derived from tax-exempt real estate,	377
tax-exempt tangible or intangible property, or tax-exempt	378
activities;	379

(3) Except as otherwise provided in division (I) of this	380
section, intangible income;	381

(4) Compensation paid under section 3501.28 or 3501.36 of the	382
Revised Code to a person serving as a precinct election official,	383
to the extent that such compensation does not exceed one thousand	384
dollars annually. Such compensation in excess of one thousand	385
dollars may be subjected to taxation by a municipal corporation. A	386
municipal corporation shall not require the payer of such	387
compensation to withhold any tax from that compensation.	388

(5) Compensation paid to an employee of a transit authority,	389
regional transit authority, or regional transit commission created	390
under Chapter 306. of the Revised Code for operating a transit bus	391
or other motor vehicle for the authority or commission in or	392
through the municipal corporation, unless the bus or vehicle is	393
operated on a regularly scheduled route, the operator is subject	394
to such a tax by reason of residence or domicile in the municipal	395
corporation, or the headquarters of the authority or commission is	396
located within the municipal corporation;	397

(6) The income of a public utility, when that public utility	398
is subject to the tax levied under section 5727.24 or 5727.30 of	399
the Revised Code, except a municipal corporation may tax the	400
following, subject to Chapter 5745. of the Revised Code:	401

(a) Beginning January 1, 2002, the income of an electric	402
company or combined company;	403

(b) Beginning January 1, 2004, the income of a telephone	404
company.	405

As used in division (H)(6) of this section, "combined	406
company," "electric company," and "telephone company" have the	407
same meanings as in section 5727.01 of the Revised Code.	408

(7) On and after January 1, 2003, items excluded from federal	409
gross income pursuant to section 107 of the Internal Revenue Code;	410

(8) On and after January 1, 2001, compensation paid to a	411
nonresident individual to the extent prohibited under section	412
718.011 of the Revised Code;	413

(9)(a) Except as provided in division (H)(9)(b) and (c) of	414
this section, an S corporation shareholder's distributive share of	415
net profits of the S corporation, other than any part of the	416
distributive share of net profits that represents wages as defined	417
in section 3121(a) of the Internal Revenue Code or net earnings	418
from self-employment as defined in section 1402(a) of the Internal	419
Revenue Code.	420

(b) If, pursuant to division (H) of former section 718.01 of	421
the Revised Code as it existed before March 11, 2004, a majority	422
of the electors of a municipal corporation voted in favor of the	423
question at an election held on November 4, 2003, the municipal	424
corporation may continue after 2002 to tax an S corporation	425
shareholder's distributive share of net profits of an S	426
corporation.	427

(c) If, on December 6, 2002, a municipal corporation was	428
imposing, assessing, and collecting a tax on an S corporation	429
shareholder's distributive share of net profits of the S	430
corporation to the extent the distributive share would be	431
allocated or apportioned to this state under divisions (B)(1) and	432
(2) of section 5733.05 of the Revised Code if the S corporation	433
were a corporation subject to taxes imposed under Chapter 5733. of	434
the Revised Code, the municipal corporation may continue to impose	435
the tax on such distributive shares to the extent such shares	436
would be so allocated or apportioned to this state only until	437
December 31, 2004, unless a majority of the electors of the	438
municipal corporation voting on the question of continuing to tax	439
such shares after that date vote in favor of that question at an	440
election held November 2, 2004. If a majority of those electors	441
vote in favor of the question, the municipal corporation may	442
continue after December 31, 2004, to impose the tax on such	443
distributive shares only to the extent such shares would be so	444
allocated or apportioned to this state.	445

(d) For the purposes of division (D) of section 718.14 of the	446
Revised Code, a municipal corporation shall be deemed to have	447
elected to tax S corporation shareholders' distributive shares of	448
net profits of the S corporation in the hands of the shareholders	449
if a majority of the electors of a municipal corporation vote in	450
favor of a question at an election held under division (H)(9)(b)	451
or (c) of this section. The municipal corporation shall specify by	452
ordinance or rule that the tax applies to the distributive share	453
of a shareholder of an S corporation in the hands of the	454
shareholder of the S corporation.	455

(10) Employee compensation that is not "qualifying wages" as	456
defined in section 718.03 of the Revised Code;	457

(11) Beginning August 1, 2007, compensation paid to a person	458
employed within the boundaries of a United States air force base	459
under the jurisdiction of the United States air force that is used	460
for the housing of members of the United States air force and is a	461
center for air force operations, unless the person is subject to	462
taxation because of residence or domicile. If the compensation is	463
subject to taxation because of residence or domicile, municipal	464
income tax shall be payable only to the municipal corporation of	465
residence or domicile.	466

(I) Any municipal corporation that taxes any type of	467
intangible income on March 29, 1988, pursuant to Section 3 of	468
Amended Substitute Senate Bill No. 238 of the 116th general	469
assembly, may continue to tax that type of income after 1988 if a	470
majority of the electors of the municipal corporation voting on	471
the question of whether to permit the taxation of that type of	472
intangible income after 1988 vote in favor thereof at an election	473
held on November 8, 1988.	474

(J) Nothing in this section or section 718.02 of the Revised	475
Code shall authorize the levy of any tax on income that a	476
municipal corporation is not authorized to levy under existing	477
laws or shall require a municipal corporation to allow a deduction	478
from taxable income for losses incurred from a sole proprietorship	479
or partnership.	480

(K)(1) Nothing in this chapter prohibits a municipal	481
corporation from allowing, by resolution or ordinance, a net	482
operating loss carryforward.	483

(2) Nothing in this chapter requires a municipal corporation	484
to allow a net operating loss carryforward.	485

(L)(1) A single member limited liability company that is a	486
disregarded entity for federal tax purposes may elect to be a	487
separate taxpayer from its single member in all Ohio municipal	488
corporations in which it either filed as a separate taxpayer or	489
did not file for its taxable year ending in 2003, if all of the	490
following conditions are met:	491

(a) The limited liability company's single member is also a	492
limited liability company;	493

(b) The limited liability company and its single member were	494
formed and doing business in one or more Ohio municipal	495
corporations for at least five years before January 1, 2004;	496

(c) Not later than December 31, 2004, the limited liability	497
company and its single member each make an election to be treated	498
as a separate taxpayer under division (L) of this section;	499

(d) The limited liability company was not formed for the	500
purpose of evading or reducing Ohio municipal corporation income	501
tax liability of the limited liability company or its single	502
member;	503

(e) The Ohio municipal corporation that is the primary place	504
of business of the sole member of the limited liability company	505
consents to the election.	506

(2) For purposes of division (L)(1)(e) of this section, a	507
municipal corporation is the primary place of business of a	508
limited liability company if, for the limited liability company's	509
taxable year ending in 2003, its income tax liability is greater	510
in that municipal corporation than in any other municipal	511
corporation in Ohio, and that tax liability to that municipal	512
corporation for its taxable year ending in 2003 is at least four	513
hundred thousand dollars.	514

Sec. 2937.221. (A) A person arrested without warrant for any	515
violation listed in division (B) of this section, and having a	516
current valid Ohio driver's or commercial driver's license, if the	517
person has been notified of the possible consequences of the	518
person's actions as required by division (C) of this section, may	519
post bond by depositing the license with the arresting officer if	520
the officer and person so choose, or with the local court having	521
jurisdiction if the court and person so choose. The license may be	522
used as bond only during the period for which it is valid.	523

When an arresting officer accepts the driver's or commercial	524
driver's license as bond, the officer shall note the date, time,	525
and place of the court appearance on "the violator's notice to	526
appear," and the notice shall serve as a valid Ohio driver's or	527
commercial driver's license until the date and time appearing	528
thereon. The arresting officer immediately shall forward the	529
license to the appropriate court.	530

When a local court accepts the license as bond or continues	531
the case to another date and time, it shall provide the person	532
with a card in a form approved by the registrar of motor vehicles	533
setting forth the license number, name, address, the date and time	534
of the court appearance, and a statement that the license is being	535
held as bond. The card shall serve as a valid license until the	536
date and time contained in the card.	537

The court may accept other bond at any time and return the	538
license to the person. The court shall return the license to the	539
person when judgment is satisfied, including, but not limited to,	540
compliance with any court orders, unless a suspension or	541
cancellation is part of the penalty imposed.	542

Neither "the violator's notice to appear" nor a court-	543
granted card shall continue driving privileges beyond the	544
expiration date of the license.	545

If the person arrested fails to appear in court at the date	546
and time set by the court or fails to satisfy the judgment of the	547
court, including, but not limited to, compliance with all court	548
orders within the time allowed by the court, the court may declare	549
the forfeiture of the person's license. Thirty days after the	550
declaration of the forfeiture, the court shall forward the	551
person's license to the registrar. The court also shall enter	552
information relative to the forfeiture on a form approved and	553
furnished by the registrar and send the form to the registrar. The	554
registrar shall suspend the person's license and send written	555
notification of the suspension to the person at the person's last	556
known address. No valid driver's or commercial driver's license	557
shall be granted to the person until the court having jurisdiction	558
orders that the forfeiture be terminated. The court shall inform	559
the registrar of the termination of the forfeiture by entering	560
information relative to the termination on a form approved and	561
furnished by the registrar and sending the form to the registrar.	562
Upon the termination, the person shall pay to the bureau of motor	563
vehicles a reinstatement fee of fifteen dollars to cover the costs	564
of the bureau in administering this section. The registrar shall	565
deposit the fees so paid into the state bureau of motor vehicles	566
fund created by section 4501.25 of the Revised Code.	567

In addition, upon receipt from the court of the copy of the	568
declaration of forfeiture, neither the registrar nor any deputy	569
registrar shall accept any application for the registration or	570
transfer of registration of any motor vehicle owned by or leased	571
in the name of the person named in the declaration of forfeiture	572
until the court having jurisdiction over the offense that led to	573
the suspension issues an order terminating the forfeiture.	574
However, for a motor vehicle leased in the name of a person named	575
in a declaration of forfeiture, the registrar shall not implement	576
the preceding sentence until the registrar adopts procedures for	577
that implementation under section 4503.39 of the Revised Code.	578
Upon receipt by the registrar of such an order, the registrar also	579
shall take the measures necessary to permit the person to register	580
a motor vehicle the person owns or leases or to transfer the	581
registration of a motor vehicle the person owns or leases if the	582
person later makes a proper application and otherwise is eligible	583
to be issued or to transfer a motor vehicle registration.	584

(B) Division (A) of this section applies to persons arrested	585
for violation of:	586

(1) Any of the provisions of Chapter 4511. or 4513. of the	587
Revised Code, except sections 4511.19, 4511.20, 4511.251, and	588
4513.36 of the Revised Code;	589

(2) Any municipal ordinance substantially similar to a	590
section included in division (B)(1) of this section;	591

(3) Any bylaw, rule, or regulation of the Ohio turnpike and	592
infrastructure commission substantially similar to a section	593
included in division (B)(1) of this section.	594

Division (A) of this section does not apply to those persons	595
issued a citation for the commission of a minor misdemeanor under	596
section 2935.26 of the Revised Code.	597

(C) No license shall be accepted as bond by an arresting	598
officer or by a court under this section until the officer or	599
court has notified the person that, if the person deposits the	600
license with the officer or court and either does not appear on	601
the date and at the time set by the officer or the court, if the	602
court sets a time, or does not satisfy any judgment rendered,	603
including, but not limited to, compliance with all court orders,	604
the license will be suspended, and the person will not be eligible	605
for reissuance of the license or issuance of a new license, or the	606
issuance of a certificate of registration for a motor vehicle	607
owned or leased by the person until the person appears and	608
complies with any order issued by the court. The person also is	609
subject to any criminal penalties that may apply to the person.	610

(D) The registrar shall not restore the person's driving or	611
vehicle registration privileges until the person pays the	612
reinstatement fee as provided in this section.	613

Sec. 3354.13. The ownership of a community college created	614
and established pursuant to provisions of sections 3354.02 and	615
3354.04 of the Revised Code, including all right, title, and	616
interest in and to all property, both real and personal,	617
pertaining thereto, shall be vested in the board of trustees of	618
the community college district in which such college is situated,	619
except as may be provided in a contract entered into under the	620
authority of division (A) of section 3354.09 of the Revised Code.	621
The board may acquire by appropriation any land, rights, rights of	622
way, franchises, easements, or other property necessary or proper	623
for the construction or the efficient operation of any facility of	624
the community college district, pursuant to the procedure provided	625
in section 5537.06 of the Revised Code, with respect to the Ohio	626
turnpike and infrastructure commission, and insofar as such	627
procedure is applicable.	628

Any instrument by which real property is acquired pursuant to	629
this section shall identify the agency of the state that has the	630
use and benefit of the real property as specified in section	631
5301.012 of the Revised Code.	632

Sec. 3355.10. The ownership of the university branch campus,	633
created and established pursuant to sections 3355.01 to 3355.14 of	634
the Revised Code, including all right, title, and interest in and	635
to all property, both real and personal, pertaining thereto, shall	636
be vested in the managing authority of the university branch	637
district. The board may acquire by appropriation any land, rights,	638
rights of way, franchises, easements, or other property necessary	639
or proper for the construction or the efficient operation of any	640
facility of the university branch district, pursuant to section	641
5537.06 of the Revised Code, with respect to the Ohio turnpike and	642
infrastructure commission, and insofar as such procedure is	643
applicable.	644

University branch district bonds, issued pursuant to section	645
3355.08 of the Revised Code, are lawful investments of banks,	646
savings banks, trust companies, trustees, boards of trustees of	647
sinking funds of municipal corporations, school districts,	648
counties, the administrator of workers' compensation, the state	649
teachers retirement system, the public employees retirement	650
system, and the school employees retirement system, and also are	651
acceptable as security for the deposit of public moneys.	652

Any instrument by which real property is acquired pursuant to	653
this section shall identify the agency of the state that has the	654
use and benefit of the real property as specified in section	655
5301.012 of the Revised Code.	656

Sec. 3357.12. The ownership of a technical college, created	657
and established pursuant to section 3357.07 of the Revised Code,	658
including all right, title, and interest in and to all property,	659
both real and personal, pertaining thereto, shall be vested in the	660
board of trustees of the technical college district in which such	661
college is situated. The board may acquire by appropriation any	662
land, rights, rights-of-way, franchises, easements, or other	663
property necessary or proper for the construction or the efficient	664
operation of any facility of the technical college district,	665
pursuant to the procedure provided in section 5537.06 of the	666
Revised Code, with respect to the Ohio turnpike and infrastructure	667
commission, and insofar as such procedure is applicable.	668

Any instrument by which real property is acquired pursuant to	669
this section shall identify the agency of the state that has the	670
use and benefit of the real property as specified in section	671
5301.012 of the Revised Code.	672

Sec. 5503.31. The state highway patrol shall have the same	673
authority as is conferred upon it by section 5503.02 of the	674
Revised Code with respect to the enforcement of state laws on	675
other roads and highways and on other state properties, to enforce	676
on all turnpike projects the laws of the state and the bylaws,	677
rules, and regulations of the Ohio turnpike and infrastructure	678
commission. The patrol, the superintendent of the patrol, and all	679
state highway patrol troopers shall have the same authority to	680
make arrests on all turnpike projects for violations of state laws	681
and of bylaws, rules, and regulations of the Ohio turnpike and	682
infrastructure commission as is conferred upon them by section	683
5503.02 of the Revised Code to make arrests on, and in connection	684
with offenses committed on, other roads and highways and on other	685
state properties.	686

Sec. 5503.32. The director of public safety may from time to	687
time enter into contracts with the Ohio turnpike and	688
infrastructure commission with respect to the policing of turnpike	689
projects by the state highway patrol. The contracts shall provide	690
for the reimbursement of the state by the commission for the costs	691
incurred by the patrol in policing turnpike projects, including,	692
but not limited to, the salaries of employees of the patrol	693
assigned to the policing, the current costs of funding retirement	694
pensions for the employees of the patrol and of providing workers'	695
compensation for them, the cost of training state highway patrol	696
troopers and radio operators assigned to turnpike projects, and	697
the cost of equipment and supplies used by the patrol in such	698
policing, and of housing for such troopers and radio operators, to	699
the extent that the equipment, supplies, and housing are not	700
directly furnished by the commission. Each contract may provide	701
for the ascertainment of such costs, and shall be of any duration,	702
not in excess of five years, and may contain any other terms, that	703
the director and the commission may agree upon. The patrol shall	704
not be obligated to furnish policing services on any turnpike	705
project beyond the extent required by the contract. All payments	706
pursuant to any contract in reimbursement of the costs of the	707
policing shall be deposited in the state treasury to the credit of	708
the turnpike policing fund, which is hereby created. All	709
investment earnings of the fund shall be credited to the fund.	710

Sec. 5513.01. (A) All purchases of machinery, materials,	711
supplies, or other articles that the director of transportation	712
makes shall be in the manner provided in this section. In all	713
cases except those in which the director provides written	714
authorization for purchases by district deputy directors of	715
transportation, all such purchases shall be made at the central	716
office of the department of transportation in Columbus. Before	717
making any purchase at that office, the director, as provided in	718
this section, shall give notice to bidders of the director's	719
intention to purchase. Where the expenditure does not exceed the	720
amount applicable to the purchase of supplies specified in	721
division (B) of section 125.05 of the Revised Code, as adjusted	722
pursuant to division (D) of that section, the director shall give	723
such notice as the director considers proper, or the director may	724
make the purchase without notice. Where the expenditure exceeds	725
the amount applicable to the purchase of supplies specified in	726
division (B) of section 125.05 of the Revised Code, as adjusted	727
pursuant to division (D) of that section, the director shall give	728
notice by posting for not less than ten days a written, typed, or	729
printed invitation to bidders on a bulletin board, which shall be	730
located in a place in the offices assigned to the department and	731
open to the public during business hours. Producers or	732
distributors of any product may notify the director, in writing,	733
of the class of articles for the furnishing of which they desire	734
to bid and their post-office addresses, in which case copies of	735
all invitations to bidders relating to the purchase of such	736
articles shall be mailed to such persons by the director by	737
regular first class mail at least ten days prior to the time fixed	738
for taking bids. The director also may mail copies of all	739
invitations to bidders to news agencies or other agencies or	740
organizations distributing information of this character. Requests	741
for invitations shall not be valid nor require action by the	742
director unless renewed, either annually or after such shorter	743
period as the director may prescribe by a general rule. The	744
invitation to bidders shall contain a brief statement of the	745
general character of the article that it is intended to purchase,	746
the approximate quantity desired, and a statement of the time and	747
place where bids will be received, and may relate to and describe	748
as many different articles as the director thinks proper, it being	749
the intent and purpose of this section to authorize the inclusion	750
in a single invitation of as many different articles as the	751
director desires to invite bids upon at any given time.	752
Invitations issued during each calendar year shall be given	753
consecutive numbers, and the number assigned to each invitation	754
shall appear on all copies thereof. In all cases where notice is	755
required by this section, sealed bids shall be taken, on forms	756
prescribed and furnished by the director, and modification of bids	757
after they have been opened shall not be permitted.	758

(B) The director may permit the Ohio turnpike and	759
infrastructure commission, any political subdivision, and any	760
state university or college to participate in contracts into which	761
the director has entered for the purchase of machinery, materials,	762
supplies, or other articles. The turnpike and infrastructure	763
commission and any political subdivision or state university or	764
college desiring to participate in such purchase contracts shall	765
file with the director a certified copy of the bylaws or rules of	766
the turnpike and infrastructure commission or the ordinance or	767
resolution of the legislative authority, board of trustees, or	768
other governing board requesting authorization to participate in	769
such contracts and agreeing to be bound by such terms and	770
conditions as the director prescribes. Purchases made by the	771
turnpike and infrastructure commission, political subdivisions, or	772
state universities or colleges under this division are exempt from	773
any competitive bidding required by law for the purchase of	774
machinery, materials, supplies, or other articles.	775

776

(1) "Political subdivision" means any county, township,	777
municipal corporation, conservancy district, township park	778
district, park district created under Chapter 1545. of the Revised	779
Code, port authority, regional transit authority, regional airport	780
authority, regional water and sewer district, county transit	781
board, or school district as defined in section 5513.04 of the	782
Revised Code.	783

(2) "State university or college" has the same meaning as in	784
division (A)(1) of section 3345.32 of the Revised Code.	785

(3) "Ohio turnpike and infrastructure commission" means the	786
commission created by section 5537.02 of the Revised Code.	787

Sec. 5533.31. The road known as interstate route eighty,	788
extending across Ohio from the Pennsylvania border in Trumbull	789
county to the Indiana border in Williams county, shall be known as	790
the "Christopher Columbus highway."	791

The director of transportation may erect suitable markers	792
upon the portions of such highway under ~~his~~the director's	793
jurisdiction indicating its name, and the Ohio turnpike and	794
infrastructure commission may erect suitable markers on the	795
portions of such highway under its jurisdiction indicating its	796
name.	797

Sec. 5537.01. As used in this chapter:

798

(A) "Commission" means the Ohio turnpike and infrastructure	799
commission created by section 5537.02 of the Revised Code or, if	800
that commission is abolished, the board, body, officer, or	801
commission succeeding to the principal functions thereof or to	802
which the powers given by this chapter to the commission are given	803
by law.	804

(B) "~~Project" or "turnpike~~Turnpike project" means any	805
express or limited access highway, super highway, or motorway	806
constructed, operated, or improved, under the jurisdiction of the	807
commission and pursuant to this chapter, at a location or	808
locations reviewed by the turnpike legislative review committee	809
and approved by the governor, including all bridges, tunnels,	810
overpasses, underpasses, interchanges, entrance plazas,	811
approaches, those portions of connecting public roads that serve	812
interchanges and are determined by the commission and the director	813
of transportation to be necessary for the safe merging of traffic	814
between the turnpike project and those public roads, toll booths,	815
service facilities, and administration, storage, and other	816
buildings, property, and facilities that the commission considers	817
necessary for the operation or policing of the turnpike project,	818
together with all property and rights which may be acquired by the	819
commission for the construction, maintenance, or operation of the	820
turnpike project, and includes any sections or extensions of a	821
turnpike project designated by the commission as such for the	822
particular purpose. Each turnpike project shall be separately	823
designated, by name or number, and may be constructed, improved,	824
or extended in such sections as the commission may from time to	825
time determine. Construction includes the improvement and	826
renovation of a previously constructed turnpike project, including	827
additional interchanges, whether or not the turnpike project was	828
initially constructed by the commission.	829

(C) "Infrastructure project" means any public express or	830
limited access highway, super highway, or motorway, including all	831
bridges, tunnels, overpasses, underpasses, interchanges, entrance	832
plazas, approaches, and those portions of connecting public roads	833
that serve interchanges, that is constructed or improved, in whole	834
or in part, with infrastructure funding approved pursuant to	835
criteria established under section 5537.18 of the Revised Code.	836

(D) "Cost," as applied to construction of a turnpike project	837
or an infrastructure project, includes the cost of construction,	838
including bridges over or under existing highways and railroads,	839
acquisition of all property acquired either by the commission or	840
by the owner of the infrastructure project for the construction,	841
demolishing or removing any buildings or structures on land so	842
acquired, including the cost of acquiring any lands to which the	843
buildings or structures may be moved, site clearance, improvement,	844
and preparation, diverting public roads, interchanges with public	845
roads, access roads to private property, including the cost of	846
land or easements therefor, all machinery, furnishings, and	847
equipment, communications facilities, financing expenses, interest	848
prior to and during construction and for one year after completion	849
of construction, traffic estimates, indemnity and surety bonds and	850
premiums on insurance, title work and title commitments,	851
insurance, and guarantees, engineering, feasibility studies, and	852
legal expenses, plans, specifications, surveys, estimates of cost	853
and revenues, other expenses necessary or incident to determining	854
the feasibility or practicability of constructing or operating a	855
turnpike project or an infrastructure project, administrative	856
expenses, and any other expense that may be necessary or incident	857
to the construction of the turnpike project or an infrastructure	858
project, the financing of the construction, and the placing of the	859
turnpike project or an infrastructure project in operation. Any	860
obligation or expense incurred by the department of transportation	861
with the approval of the commission for surveys, borings,	862
preparation of plans and specifications, and other engineering	863
services in connection with the construction of a turnpike project	864
or an infrastructure project, or by the federal government with	865
the approval of the commission for any public road projects which	866
must be reimbursed as a condition to the exercise of any of the	867
powers of the commission under this chapter, shall be regarded as	868
a part of the cost of the turnpike project or an infrastructure	869
project and shall be reimbursed to the state or the federal	870
government, as the case may be, from revenues, state taxes, or the	871
proceeds of bonds as authorized by this chapter.	872

~~(D)~~(E) "Owner" includes all persons having any title or	873
interest in any property authorized to be acquired by the	874
commission for turnpike projects under this chapter, or the public	875
entity for whom an infrastructure project is funded, in whole or	876
in part, by the commission under this chapter.	877

~~(E)~~(F) "Revenues" means all tolls, service revenues,	878
investment income on special funds, rentals, gifts, grants, and	879
all other moneys coming into the possession of or under the	880
control of the commission by virtue of this chapter, except the	881
proceeds from the sale of bonds. "Revenues" does not include state	882
taxes.	883

~~(F)~~(G) "Public roads" means all public highways, roads, and	884
streets in the state, whether maintained by a state agency or any	885
other governmental agency.	886

~~(G)~~(H) "Public utility facilities" means tracks, pipes,	887
mains, conduits, cables, wires, towers, poles, and other equipment	888
and appliances of any public utility.	889

~~(H)~~(I) "Financing expenses" means all costs and expenses	890
relating to the authorization, issuance, sale, delivery,	891
authentication, deposit, custody, clearing, registration,	892
transfer, exchange, fractionalization, replacement, payment, and	893
servicing of bonds including, without limitation, costs and	894
expenses for or relating to publication and printing, postage,	895
delivery, preliminary and final official statements, offering	896
circulars, and informational statements, travel and	897
transportation, underwriters, placement agents, investment	898
bankers, paying agents, registrars, authenticating agents,	899
remarketing agents, custodians, clearing agencies or corporations,	900
securities depositories, financial advisory services,	901
certifications, audits, federal or state regulatory agencies,	902
accounting and computation services, legal services and obtaining	903
approving legal opinions and other legal opinions, credit ratings,	904
redemption premiums, and credit enhancement facilities.	905

~~(I)~~(J) "Bond proceedings" means the resolutions, trust	906
agreements, certifications, notices, sale proceedings, leases,	907
lease-purchase agreements, assignments, credit enhancement	908
facility agreements, and other agreements, instruments, and	909
documents, as amended and supplemented, or any one or more or any	910
combination thereof, authorizing, or authorizing or providing for	911
the terms and conditions applicable to, or providing for the	912
security or sale or award or liquidity of, bonds, and includes the	913
provisions set forth or incorporated in those bonds and bond	914
proceedings.	915

~~(J)~~(K) "Bond service charges" means principal, including any	916
mandatory sinking fund or mandatory redemption requirements for	917
the retirement of bonds, and interest and any redemption premium	918
payable on bonds, as those payments come due and are payable to	919
the bondholder or to a person making payment under a credit	920
enhancement facility of those bond service charges to a	921
bondholder.	922

~~(K)~~(L) "Bond service fund" means the applicable fund created	923
by the bond proceedings for and pledged to the payment of bond	924
service charges on bonds provided for by those proceedings,	925
including all moneys and investments, and earnings from	926
investments, credited and to be credited to that fund as provided	927
in the bond proceedings.	928

~~(L)~~(M) "Bonds" means bonds, notes, including notes	929
anticipating bonds or other notes, commercial paper, certificates	930
of participation, or other evidences of obligation, including any	931
interest coupons pertaining thereto, issued by the commission	932
pursuant to this chapter.	933

~~(M)~~(N) "Infrastructure fund" means the applicable fund or	934
funds created by the bond proceedings, which shall be used to pay	935
or defray the cost of infrastructure projects recommended by the	936
director of transportation and evaluated and approved by the	937
commission.	938

(O) "Net revenues" means revenues lawfully available to pay	939
both current operating expenses of the commission and bond service	940
charges in any fiscal year or other specified period, less current	941
operating expenses of the commission and any amount necessary to	942
maintain a working capital reserve for that period.	943

~~(N)~~(P) "Pledged revenues" means net revenues, moneys and	944
investments, and earnings on those investments, in the applicable	945
bond service fund and any other special funds, and the proceeds of	946
any bonds issued for the purpose of refunding prior bonds, all as	947
lawfully available and by resolution of the commission committed	948
for application as pledged revenues to the payment of bond service	949
charges on particular issues of bonds.	950

~~(O)~~(Q) "Service facilities" means service stations,	951
restaurants, and other facilities for food service, roadside parks	952
and rest areas, parking, camping, tenting, rest, and sleeping	953
facilities, hotels or motels, and all similar and other facilities	954
providing services to the traveling public in connection with the	955
use of a turnpike project and owned, leased, licensed, or operated	956
by the commission.	957

~~(P)~~(R) "Service revenues" means those revenues of the	958
commission derived from its ownership, leasing, licensing, or	959
operation of service facilities.	960

~~(Q)~~(S) "Special funds" means the applicable bond service fund	961
and any accounts and subaccounts in that fund, any other funds or	962
accounts permitted by and established under, and identified as a	963
"special fund" or "special account" in, the bond proceedings,	964
including any special fund or account established for purposes of	965
rebate or other requirements under federal income tax laws.	966

~~(R)~~(T) "State agencies" means the state, officers of the	967
state, and boards, departments, branches, divisions, or other	968
units or agencies of the state.	969

~~(S)~~(U) "State taxes" means receipts of the commission from	970
the proceeds of state taxes or excises levied and collected, or	971
appropriated by the general assembly to the commission, for the	972
purposes and functions of the commission. State taxes do not	973
include tolls, or investment earnings on state taxes except on	974
those state taxes referred to in Section 5a of Article XII, Ohio	975
Constitution.	976

~~(T)~~(V) "Tolls" means tolls, special fees or permit fees, or	977
other charges by the commission to the owners, lessors, lessees,	978
or operators of motor vehicles for the operation of or the right	979
to operate those vehicles on a turnpike project.	980

~~(U)~~(W) "Credit enhancement facilities" means letters of	981
credit, lines of credit, standby, contingent, or firm securities	982
purchase agreements, insurance, or surety arrangements,	983
guarantees, and other arrangements that provide for direct or	984
contingent payment of bond service charges, for security or	985
additional security in the event of nonpayment or default in	986
respect of bonds, or for making payment of bond service charges	987
and at the option and on demand of bondholders or at the option of	988
the commission or upon certain conditions occurring under put or	989
similar arrangements, or for otherwise supporting the credit or	990
liquidity of the bonds, and includes credit, reimbursement,	991
marketing, remarketing, indexing, carrying, interest rate hedge,	992
and subrogation agreements, and other agreements and arrangements	993
for payment and reimbursement of the person providing the credit	994
enhancement facility and the security for that payment and	995
reimbursement.	996

~~(V)~~(X) "Person" has the same meaning as in section 1.59 of	997
the Revised Code and, unless the context otherwise provides, also	998
includes any governmental agency and any combination of those	999
persons.	1000

~~(W)~~(Y) "Refund" means to fund and retire outstanding bonds,	1001
including advance refunding with or without payment or redemption	1002
prior to stated maturity.	1003

~~(X)~~(Z) "Governmental agency" means any state agency, federal	1004
agency, political subdivision, or other local, interstate, or	1005
regional governmental agency, and any combination of those	1006
agencies.	1007

~~(Y)~~(AA) "Property" has the same meaning as in section 1.59 of	1008
the Revised Code, and includes interests in property.	1009

~~(Z)~~(BB) "Administrative agent," "agent," "commercial paper,"	1010
"floating rate interest structure," "indexing agent," "interest	1011
rate hedge," "interest rate period," "put arrangement," and	1012
"remarketing agent" have the same meanings as in section 9.98 of	1013
the Revised Code.	1014

~~(AA)~~(CC) "Outstanding," as applied to bonds, means	1015
outstanding in accordance with the terms of the bonds and the	1016
applicable bond proceedings.	1017

~~(BB)~~(DD) "Ohio turnpike system" or "system" means all	1018
existing and future turnpike projects constructed, operated, and	1019
maintained under the jurisdiction of the commission.	1020

(EE) "Ohio turnpike and infrastructure system" means turnpike	1021
projects and infrastructure projects funded by the commission	1022
existing on and after July 1, 2013.	1023

Sec. 5537.02. (A) There is hereby created a commission to be	1024
known on and after July 1, 2013, as the "Ohio turnpike and	1025
infrastructure commission." The commission is a body both	1026
corporate and politic, constituting an instrumentality of the	1027
state, and the exercise by it of the powers conferred by this	1028
chapter in the construction, operation, and maintenance of the	1029
Ohio turnpike system, and also in entering into agreements with	1030
the department of transportation to pay the cost or a portion of	1031
the costs of infrastructure projects, are and shall be held to be	1032
essential governmental functions of the state, but the commission	1033
shall not be immune from liability by reason thereof. Chapter	1034
2744. of the Revised Code applies to the commission and the	1035
commission is a political subdivision of the state for purposes of	1036
that chapter. The commission is subject to all provisions of law	1037
generally applicable to state agencies which do not conflict with	1038
this chapter.	1039

(B)(1) The commission shall consist of ~~nine~~ten members as	1040
follows:	1041

(a) ~~Four~~Six members appointed by the governor with the	1042
advice and consent of the senate, no more than ~~two~~three of whom	1043
shall be members of the same political party;	1044

(b) The director of transportation, who shall be a voting	1045
member, and the director of budget and management, ~~and the~~	1046
~~director of development, each~~both of whom shall ~~be a member~~serve	1047
as ex officio members, without compensation;	1048

(c) One member of the senate, appointed by the president of	1049
the senate, who shall represent either a district in which is	1050
located or through which passes a portion of a turnpike project	1051
that is part of the Ohio turnpike system or a district located in	1052
the vicinity of a turnpike project that is part of the Ohio	1053
turnpike system;	1054

(d) One member of the house of representatives, appointed by	1055
the speaker of the house of representatives, who shall represent	1056
either a district in which is located or through which passes a	1057
portion of a turnpike project that is part of the Ohio turnpike	1058
system or a district located in the vicinity of a turnpike project	1059
that is part of the Ohio turnpike system.	1060

(2) The members appointed by the governor shall be residents	1061
of the state, shall have been qualified electors therein for a	1062
period of at least five years next preceding their appointment,	1063
~~and~~. In making the appointments, the governor may appoint persons	1064
who reside in different geographic areas of the state, taking into	1065
consideration the various turnpike and infrastructure projects in	1066
the state. Members appointed to the commission prior to July 1,	1067
2013, shall serve terms of eight years commencing on the first day	1068
of July and ending on the thirtieth day of June. Thereafter,	1069
members appointed by the governor shall serve terms of three years	1070
commencing on the first day of July and ending on the thirtieth	1071
day of June. Those members appointed by the president of the	1072
senate or the speaker of the house of representatives shall serve	1073
a term of the remainder of the general assembly during which the	1074
senator or representative is appointed. Each appointed member	1075
shall hold office from the date of appointment until the end of	1076
the term for which the member was appointed. If a commission	1077
member dies or resigns, or if a senator or representative who is a	1078
member of the commission ceases to be a senator or representative,	1079
or if an ex officio member ceases to hold the applicable office,	1080
the vacancy shall be filled in the same manner as provided in	1081
division (B)(1) of this section. Any member who fills a vacancy	1082
occurring prior to the end of the term for which the member's	1083
predecessor was appointed shall, if appointed by the governor,	1084
hold office for the remainder of such term or, if appointed by the	1085
president of the senate or the speaker of the house of	1086
representatives, shall hold office for the remainder of the term	1087
or for a shorter period of time as determined by the president or	1088
the speaker. Any member appointed by the governor shall continue	1089
in office subsequent to the expiration date of the member's term	1090
until the member's successor takes office, or until a period of	1091
sixty days has elapsed, whichever occurs first. A member of the	1092
commission is eligible for reappointment. Each member of the	1093
commission appointed by the governor, before entering upon the	1094
member's duties, shall take an oath as provided by Section 7 of	1095
Article XV, Ohio Constitution. The governor, the president of the	1096
senate, or the speaker of the house of representatives, may at any	1097
time remove their respective appointees to the commission for	1098
misfeasance, nonfeasance, or malfeasance in office.	1099

(3)(a) A member of the commission who is appointed by the	1100
president of the senate or the speaker of the house of	1101
representatives shall not participate in any vote of the	1102
commission. Serving as an appointed member of the commission under	1103
divisions (B)(1)(c), (1)(d), or (2) of this section does not	1104
constitute grounds for resignation from the senate or the house of	1105
representatives under section 101.26 of the Revised Code.	1106

(b) The director of budget and management ~~and the director of~~	1107
~~development~~ shall not participate in any vote of the commission.	1108

(C) The voting members of the commission shall elect one of	1109
the ~~appointed~~ voting members as chairperson and another as	1110
vice-chairperson, and shall appoint a secretary-treasurer who need	1111
not be a member of the commission. ~~Three~~Four of the voting	1112
members of the commission constitute a quorum, and the affirmative	1113
vote of ~~three~~four voting members is necessary for any action	1114
taken by the commission. No vacancy in the membership of the	1115
commission impairs the rights of a quorum to exercise all the	1116
rights and perform all the duties of the commission.	1117

(D) Each member of the commission appointed by the governor	1118
shall give a surety bond to the commission in the penal sum of	1119
twenty-five thousand dollars and the secretary-treasurer shall	1120
give such a bond in at least the penal sum of fifty thousand	1121
dollars. The commission may require any of its officers or	1122
employees to file surety bonds including a blanket bond as	1123
provided in section 3.06 of the Revised Code. Each such bond shall	1124
be in favor of the commission and shall be conditioned upon the	1125
faithful performance of the duties of the office, executed by a	1126
surety company authorized to transact business in this state,	1127
approved by the governor, and filed in the office of the secretary	1128
of state. The costs of the surety bonds shall be paid or	1129
reimbursed by the commission from revenues. Each member of the	1130
commission appointed by the governor shall receive an annual	1131
salary of five thousand dollars, payable in monthly installments.	1132
Each member shall be reimbursed for the member's actual expenses	1133
necessarily incurred in the performance of the member's duties.	1134
All costs and expenses incurred by the commission in carrying out	1135
this chapter shall be payable solely from revenues and state	1136
taxes, and no liability or obligation shall be incurred by the	1137
commission beyond the extent to which revenues have been provided	1138
for pursuant to this chapter.	1139

Sec. 5537.03. In order to remove present and anticipated	1140
handicaps and potential hazards on the congested highways in this	1141
state, to facilitate vehicular traffic throughout the state, to	1142
finance infrastructure projects that enhance mobility and economic	1143
development in Ohio, to promote the agricultural, commercial,	1144
recreational, tourism, and industrial development of the state,	1145
and to provide for the general welfare by the construction,	1146
improvement, and maintenance of modern express highways embodying	1147
safety devices, including without limitation center divisions,	1148
ample shoulder widths, longsight distances, multiple lanes in each	1149
direction, and grade separations at intersections with other	1150
public roads and railroads, the Ohio turnpike and infrastructure	1151
commission~~, subject~~may do the following:	1152

(A) Subject to section 5537.26 of the Revised Code, ~~may~~	1153
construct, maintain, repair, and operate a system of turnpike	1154
projects at locations that are reviewed by the turnpike	1155
legislative review committee and approved by the governor, and in	1156
accordance with alignment and design standards that are approved	1157
by the director of transportation, and issue revenue bonds of this	1158
state, payable solely from pledged revenues, to pay the cost of	1159
those projects. The turnpikes and turnpike projects authorized by	1160
this chapter are hereby or shall be made part of the Ohio turnpike	1161
system.	1162

(B) Provide the infrastructure funds to pay the cost or a	1163
portion of the cost of infrastructure projects as recommended by	1164
the director of transportation pursuant to a determination made by	1165
the commission based on criteria set forth in rules adopted by the	1166
commission under section 5537.18 of the Revised Code. A	1167
determination by the commission to provide infrastructure funds	1168
for an infrastructure project shall be conclusive and	1169
incontestable.	1170

Sec. 5537.04. (A) The Ohio turnpike and infrastructure	1171
commission may do any of the following:	1172

(1) Adopt bylaws for the regulation of its affairs and the	1173
conduct of its business;	1174

(2) Adopt an official seal, which shall not be the great seal	1175
of the state and which need not be in compliance with section 5.10	1176
of the Revised Code;	1177

(3) Maintain a principal office and suboffices at such places	1178
within the state as it designates;	1179

(4) ~~Sue~~With respect to the Ohio turnpike system and turnpike	1180
projects, sue and be sued in its own name, plead and be impleaded,	1181
provided any actions against the commission shall be brought in	1182
the court of common pleas of the county in which the principal	1183
office of the commission is located, or in the court of common	1184
pleas of the county in which the cause of action arose if that	1185
county is located within this state, and all summonses,	1186
exceptions, and notices of every kind shall be served on the	1187
commission by leaving a copy thereof at its principal office with	1188
the secretary-treasurer or executive director of the commission;	1189

(5) With respect to infrastructure projects only, sue and be	1190
sued in its own name, plead and be impleaded, provided any actions	1191
against the commission shall be brought in the court of common	1192
pleas of Franklin county, and all summonses, exceptions, and	1193
notices of every kind shall be served on the commission by leaving	1194
a copy thereof at its principal office with the	1195
secretary-treasurer or executive director of the commission.	1196

(6) Construct, maintain, repair, police, and operate the	1197
turnpike system, and establish rules for the use of any turnpike	1198
project;	1199

~~(6)~~(7) Issue revenue bonds of the state, payable solely from	1200
pledged revenues, as provided in this chapter, for the purpose of	1201
paying any part of the cost of constructing any one or more	1202
turnpike projects or infrastructure projects;	1203

~~(7)~~(8) Fix, and revise from time to time, and charge and	1204
collect tolls by any method approved by the commission, including,	1205
but not limited to, manual methods or through electronic	1206
technology accepted within the tolling industry;	1207

~~(8)~~(9) Acquire, hold, and dispose of property in the exercise	1208
of its powers and the performance of its duties under this	1209
chapter;	1210

~~(9)~~(10) Designate the locations and establish, limit, and	1211
control such points of ingress to and egress from each turnpike	1212
project as are necessary or desirable in the judgment of the	1213
commission and of the director of transportation to ensure the	1214
proper operation and maintenance of that turnpike project, and	1215
prohibit entrance to such a turnpike project from any point not so	1216
designated;	1217

~~(10)~~(11) Make and enter into all contracts and agreements	1218
necessary or incidental to the performance of its duties and the	1219
execution of its powers under this chapter, including	1220
participation in a multi-jurisdiction electronic toll collection	1221
agreement and collection or remittance of tolls, fees, or other	1222
charges to or from entities or agencies that participate in such	1223
an agreement;	1224

~~(11)~~(12) Employ or retain or contract for the services of	1225
consulting engineers, superintendents, managers, and any other	1226
engineers, construction and accounting experts, financial	1227
advisers, trustees, marketing, remarketing, and administrative	1228
agents, attorneys, and other employees, independent contractors,	1229
or agents that are necessary in its judgment and fix their	1230
compensation, provided all such expenses shall be payable solely	1231
from the proceeds of bonds or from revenues of the Ohio turnpike	1232
system;	1233

~~(12)~~(13) Receive and accept from any federal agency, subject	1234
to the approval of the governor, and from any other governmental	1235
agency grants for or in aid of the construction, reconstruction,	1236
repair, renovation, maintenance, or operation of any turnpike	1237
project, and receive and accept aid or contributions from any	1238
source or person of money, property, labor, or other things of	1239
value, to be held, used, and applied only for the purposes for	1240
which such grants and contributions are made;	1241

~~(13)~~(14) Provide coverage for its employees under Chapters	1242
4123. and 4141. of the Revised Code;	1243

~~(14)~~(15) Fix and revise by rule, from time to time, such	1244
permit fees, processing fees, or administrative charges for the	1245
prepayment, deferred payment, or nonpayment of tolls and use of	1246
electronic tolling equipment or other commission property;	1247

(16) Adopt rules for the issuance of citations either by a	1248
policing authority or through administrative means to individuals	1249
or corporations that evade the payment of tolls established for	1250
the use of any turnpike project;	1251

(17) Approve funding and authorize agreements with the	1252
department of transportation for the funding of infrastructure	1253
projects recommended by the director of transportation pursuant to	1254
the criteria established by rule under section 5537.18 of the	1255
Revised Code.	1256

(B) The commission may do all acts necessary or proper to	1257
carry out the powers expressly granted in this chapter.	1258

Sec. 5537.05. (A) The Ohio turnpike and infrastructure	1259
commission may construct grade separations at intersections of any	1260
turnpike project with public roads and railroads, and change and	1261
adjust the lines and grades of those roads and railroads, and of	1262
public utility facilities, which change and adjustment of lines	1263
and grades of those roads shall be subject to the approval of the	1264
governmental agency having jurisdiction over the road, so as to	1265
accommodate them to the design of the grade separation. The cost	1266
of the grade separation and any damage incurred in changing and	1267
adjusting the lines and grades of roads, railroads, and public	1268
utility facilities shall be ascertained and paid by the commission	1269
as a part of the cost of the turnpike project or from revenues or	1270
state taxes.	1271

(1) If the commission finds it necessary to change the	1272
location of any portion of any public road, railroad, or public	1273
utility facility, it shall cause the same to be reconstructed at	1274
the location the governmental agency having jurisdiction over such	1275
road, railroad, or public utility facility considers most	1276
favorable. The construction shall be of substantially the same	1277
type and in as good condition as the original road, railroad, or	1278
public utility facility. The cost of the reconstruction,	1279
relocation, or removal and any damage incurred in changing the	1280
location shall be ascertained and paid by the commission as a part	1281
of the cost of the turnpike project or from revenues or state	1282
taxes.	1283

(2) The commission may petition the board of county	1284
commissioners of the county in which is situated any public road	1285
or part thereof affected by the location therein of any turnpike	1286
project, for the vacation or relocation of the road or any part	1287
thereof, in the same manner and with the same force and effect as	1288
is given to the director of transportation pursuant to sections	1289
5553.04 to 5553.11 of the Revised Code.	1290

(B) The commission and its authorized agents and employees,	1291
after proper notice, may enter upon any lands, waters, and	1292
premises in the state for the purpose of making surveys,	1293
soundings, drillings, and examinations that are necessary or	1294
proper for the purposes of this chapter, and the entry shall not	1295
be deemed a trespass, nor shall an entry for those purposes be	1296
deemed an entry under any appropriation proceedings which may then	1297
be pending, provided that before entering upon the premises of any	1298
railroad notice shall be given to the superintendent of the	1299
railroad involved at least five days in advance of entry, and	1300
provided that no survey, sounding, drilling, and examination shall	1301
be made between the rails or so close to a railroad track as would	1302
render the track unusable. The commission shall make reimbursement	1303
for any actual damage resulting to such lands, waters, and	1304
premises and to private property located in, on, along, over, or	1305
under such lands, waters, and premises, as a result of such	1306
activities. The state, subject to the approval of the governor,	1307
hereby consents to the use of all lands owned by it, including	1308
lands lying under water, that are necessary or proper for the	1309
construction, maintenance, or operation of any turnpike project,	1310
provided adequate consideration is provided for the use.	1311

(C) The commission may make reasonable provisions or rules	1312
for the installation, construction, maintenance, repair, renewal,	1313
relocation, and removal of public utility facilities in, on,	1314
along, over, or under any turnpike project. Whenever the	1315
commission determines that it is necessary that any public utility	1316
facilities located in, on, along, over, or under any turnpike	1317
project should be relocated in or removed from the turnpike	1318
project, the public utility owning or operating the facilities	1319
shall relocate or remove them in accordance with the order of the	1320
commission. Except as otherwise provided in any license or other	1321
agreement with the commission, the cost and expenses of such	1322
relocation or removal, including the cost of installing the	1323
facilities in a new location, the cost of any lands, or any rights	1324
or interests in lands, and any other rights, acquired to	1325
accomplish the relocation or removal, shall be ascertained and	1326
paid by the commission as part of the cost of the turnpike project	1327
or from revenues of the Ohio turnpike system. In case of any such	1328
relocation or removal of facilities, the public utility owning or	1329
operating them and its successors or assigns may maintain and	1330
operate the facilities, with the necessary appurtenances, in the	1331
new location, for as long a period, and upon the same terms, as it	1332
had the right to maintain and operate the facilities in their	1333
former location.	1334

(D) The commission is subject to Chapters 1515., 6131.,	1335
6133., 6135., and 6137. of the Revised Code and shall pay any	1336
assessments levied under those chapters for an improvement or	1337
maintenance of an improvement on land under the control or	1338
ownership of the commission.	1339

Sec. 5537.051. (A)(1) In any county that as of January 1,	1340
2011, had closed one or more roads as a result of grade separation	1341
failure at intersections of a turnpike project with a county or	1342
township road, the Ohio turnpike and infrastructure commission is	1343
responsible for the major maintenance and repair and replacement	1344
of failed grade separations. The governmental entity with	1345
jurisdiction over the county or township road is responsible for	1346
routine maintenance of such failed grade separations.	1347

(2) This section does not apply to any grade separation at	1348
intersections of a turnpike project with a county or township road	1349
except as described in division (A)(1) of this section.	1350

(3) Major maintenance and repair and replacement of	1351
aforementioned failed grade separations shall commence not later	1352
than July 1, 2011, and be completed before December 31, 2014.	1353

(B) As used in this section:

1354

(1) "Major maintenance and repair and replacement" relates to	1355
all elements constructed as part of or required for a grade	1356
separation, including bridges, pile, foundations, substructures,	1357
abutments, piers, superstructures, approach slabs, slopes,	1358
embankments, fences, and appurtenances.	1359

(2) "Routine maintenance" includes, without limitation,	1360
clearing debris, sweeping, snow and ice removal, wearing surface	1361
improvements, marking for traffic control, box culverts, drainage	1362
facilities including headwalls and underdrains, inlets, catch	1363
basins and grates, guardrails, minor and emergency repairs to	1364
railing and appurtenances, and emergency patching.	1365

Sec. 5537.06. (A) The Ohio turnpike and infrastructure	1366
commission may acquire by purchase, lease, lease-purchase, lease	1367
with option to purchase, appropriation, or otherwise and in such	1368
manner and for such consideration as it considers proper, any	1369
public or private property necessary, convenient, or proper for	1370
the construction, maintenance, or efficient operation of the Ohio	1371
turnpike system. The commission may pledge net revenues, to the	1372
extent permitted by this chapter with respect to bonds, to secure	1373
payments to be made by the commission under any such lease,	1374
lease-purchase agreement, or lease with option to purchase. Title	1375
to personal property, and interests less than a fee in real	1376
property, shall be held in the name of the commission. Title to	1377
real property held in fee shall be held in the name of the state	1378
for the use of the commission. In any proceedings for	1379
appropriation under this section, the procedure to be followed	1380
shall be in accordance with the procedure provided in sections	1381
163.01 to 163.22 of the Revised Code, including division (B) of	1382
section 163.06 of the Revised Code notwithstanding the limitation	1383
in that division of its applicability to roads open to the public	1384
without charge. Except as otherwise agreed upon by the owner, full	1385
compensation shall be paid for public property so taken.	1386

(B) This section does not authorize the commission to take or	1387
disturb property or facilities belonging to any public utility or	1388
to a common carrier engaged in interstate commerce, which property	1389
or facilities are required for the proper and convenient operation	1390
of the public utility or common carrier, unless provision is made	1391
for the restoration, relocation, replication, or duplication of	1392
the property or facilities elsewhere at the sole cost of the	1393
commission.	1394

(C) Disposition of real property shall be by the commission	1395
in the manner and for the consideration it determines if to a	1396
state agency or other governmental agency, and otherwise in the	1397
manner provided in section 5501.45 of the Revised Code for the	1398
disposition of property by the director of transportation.	1399
Disposition of personal property shall be in the manner and for	1400
the consideration the commission determines.	1401

(D) Any instrument by which real property is acquired	1402
pursuant to this section shall identify the agency of the state	1403
that has the use and benefit of the real property as specified in	1404
section 5301.012 of the Revised Code.	1405

Sec. 5537.07. (A) When the cost to the Ohio turnpike and	1406
infrastructure commission under any contract with a person other	1407
than a governmental agency involves an expenditure of more than	1408
fifty thousand dollars, the commission shall make a written	1409
contract with the lowest responsive and responsible bidder in	1410
accordance with section 9.312 of the Revised Code after	1411
advertisement for not less than two consecutive weeks in a	1412
newspaper of general circulation in Franklin county, and in such	1413
other publications as the commission determines, which notice	1414
shall state the general character of the work and the general	1415
character of the materials to be furnished, the place where plans	1416
and specifications therefor may be examined, and the time and	1417
place of receiving bids. The commission may require that the cost	1418
estimate for the construction, demolition, alteration, repair,	1419
improvement, renovation, or reconstruction of roadways and bridges	1420
for which the commission is required to receive bids be kept	1421
confidential and remain confidential until after all bids for the	1422
public improvement have been received or the deadline for	1423
receiving bids has passed. Thereafter, and before opening the bids	1424
submitted for the roadways and bridges, the commission shall make	1425
the cost estimate public knowledge by reading the cost estimate in	1426
a public place. The commission may reject any and all bids. The	1427
requirements of this division do not apply to contracts for the	1428
acquisition of real property or compensation for professional or	1429
other personal services.	1430

(B) Each bid for a contract for construction, demolition,	1431
alteration, repair, improvement, renovation, or reconstruction	1432
shall contain the full name of every person interested in it and	1433
shall meet the requirements of section 153.54 of the Revised Code.	1434

(C) Other than for a contract referred to in division (B) of	1435
this section, each bid for a contract that involves an expenditure	1436
in excess of one hundred fifty thousand dollars or any contract	1437
with a service facility operator shall contain the full name of	1438
every person interested in it and shall be accompanied by a	1439
sufficient bond or certified check on a solvent bank that if the	1440
bid is accepted a contract will be entered into and the	1441
performance of its proposal secured.	1442

(D) Other than a contract referred to in division (B) of this	1443
section, a bond with good and sufficient surety, in a form as	1444
prescribed and approved by the commission, shall be required of	1445
every contractor awarded a contract that involves an expenditure	1446
in excess of one hundred fifty thousand dollars or any contract	1447
with a service facility operator. The bond shall be in an amount	1448
equal to at least fifty per cent of the contract price and shall	1449
be conditioned upon the faithful performance of the contract.	1450

(E) Notwithstanding any other provisions of this section, the	1451
commission may establish a program to expedite special turnpike	1452
projects by combining the design and construction elements of any	1453
public improvement project into a single contract. The commission	1454
shall prepare and distribute a scope of work document upon which	1455
the bidders shall base their bids. At a minimum, bidders shall	1456
meet the requirements of section 4733.161 of the Revised Code.	1457
Except in regard to those requirements relating to providing	1458
plans, the commission shall award contracts following the	1459
requirements set forth in divisions (A), (B), (C), and (D) of this	1460
section.	1461

Sec. 5537.08. (A) The Ohio turnpike and infrastructure	1462
commission may provide by resolution for the issuance, at one time	1463
or from time to time, of revenue bonds of the state for the	1464
purpose of paying all or any part of the cost of any one or more	1465
turnpike projects or infrastructure projects. The bond service	1466
charges shall be payable solely from pledged revenues pledged for	1467
such payment pursuant to the applicable bond proceedings. The	1468
bonds of each issue shall be dated, shall bear interest at a rate	1469
or rates or at variable rates, and shall mature or be payable at	1470
such time or times, with a final maturity not to exceed forty	1471
years from their date or dates, all as determined by the	1472
commission in the bond proceedings. The commission shall determine	1473
the form of the bonds, including any interest coupons to be	1474
attached thereto, and shall fix the denomination or denominations	1475
of the bonds and the place or places of payment of bond service	1476
charges.	1477

(B) The bonds shall be signed by the chairperson or	1478
vice-chairperson of the commission or by the facsimile signature	1479
of that officer, the official seal of the commission or a	1480
facsimile thereof shall be affixed thereto or printed thereon and	1481
attested by the secretary-treasurer of the commission, which may	1482
be by facsimile signature, and any coupons attached thereto shall	1483
bear the facsimile signature of the chairperson or	1484
vice-chairperson of the commission. In case any officer whose	1485
signature, or a facsimile of whose signature, appears on any bonds	1486
or coupons ceases to be such officer before delivery of bonds,	1487
such signature or facsimile shall nevertheless be valid and	1488
sufficient for all purposes the same as if the officer had	1489
remained in office until such delivery.	1490

(C) Subject to the bond proceedings and provisions for	1491
registration, the bonds shall have all the qualities and incidents	1492
of negotiable instruments under Title XIII of the Revised Code.	1493
The bonds may be issued in such form or forms as the commission	1494
determines, including without limitation coupon, book entry, and	1495
fully registered form, and provision may be made for the	1496
registration of any coupon bonds as to principal alone and also as	1497
to both principal and interest, and for the exchange of bonds	1498
between forms. The commission may sell such bonds by competitive	1499
bid on the best bid after advertisement or request for bids or by	1500
private sale in the manner, and for the price, it determines to be	1501
for the best interest of the state. ~~The determination of the~~	1502
~~commission as to the manner of sale, by competitive bid or by~~	1503
~~private sale, shall be approved by the controlling board.~~	1504

(D) The proceeds of the bonds of each issue shall be used	1505
solely for the payment of the costs of the turnpike project or	1506
projects for which such bonds were issued, ~~and~~or for the payment	1507
of the costs of the infrastructure project or projects as approved	1508
by the commission under section 5537.18 of the Revised Code. The	1509
proceeds shall be disbursed in such manner and under such	1510
restrictions as the commission provides in the applicable bond	1511
proceedings.	1512

(E) Prior to the preparation of definitive bonds, the	1513
commission may, under like restrictions, issue interim receipts or	1514
temporary bonds or bond anticipation notes, with or without	1515
coupons, exchangeable for definitive bonds when such bonds have	1516
been executed and are available for delivery. The commission may	1517
provide for the replacement of any mutilated, stolen, destroyed,	1518
or lost bonds. Bonds may be issued by the commission under this	1519
chapter without obtaining the consent of any state agency, and	1520
without any other proceedings or the happening of any other	1521
conditions or things than those proceedings, conditions, or things	1522
that are specifically required by this chapter or those	1523
proceedings.	1524

(F) Sections 9.98 to 9.983 of the Revised Code apply to the	1525
bonds.	1526

(G) The bond proceedings shall provide, subject to the	1527
provisions of any other applicable bond proceedings, for the	1528
pledge to the payment of bond service charges and of any costs of	1529
or relating to credit enhancement facilities of all, or such part	1530
as the commission may determine, of the pledged revenues and the	1531
applicable special fund or funds, which pledges may be made to	1532
secure the bonds on a parity with bonds theretofore or thereafter	1533
issued if and to the extent provided in the bond proceedings.	1534
Every pledge, and every covenant and agreement with respect	1535
thereto, made in the bond proceedings may in the bond proceedings	1536
be extended to the benefit of the owners and holders of bonds and	1537
to any trustee and any person providing a credit enhancement	1538
facility for those bonds, for the further security for the payment	1539
of the bond service charges and credit enhancement facility costs.	1540

(H) The bond proceedings may contain additional provisions as	1541
to:	1542

(1) The redemption of bonds prior to maturity at the option	1543
of the commission or of the bondholders or upon the occurrence of	1544
certain stated conditions, and at such price or prices and under	1545
such terms and conditions as are provided in the bond proceedings;	1546

(2) Other terms of the bonds;

1547

(3) Limitations on the issuance of additional bonds;

1548

(4) The terms of any trust agreement securing the bonds or	1549
under which the same may be issued;	1550

(5) Any or every provision of the bond proceedings being	1551
binding upon the commission and state agencies, or other person as	1552
may from time to time have the authority under law to take such	1553
actions as may be necessary to perform all or any part of the duty	1554
required by such provision;	1555

(6) Any provision that may be made in a trust agreement;

1556

(7) Any other or additional agreements with the holders of	1557
the bonds, or the trustee therefor, relating to the bonds or the	1558
security for the bonds, including agreements for credit	1559
enhancement facilities.	1560

(I) Any holder of bonds or a trustee under the bond	1561
proceedings, except to the extent that the holder's or trustee's	1562
rights are restricted by the bond proceedings, may by any suitable	1563
form of legal proceedings, protect and enforce any rights under	1564
the laws of this state or granted by the bond proceedings. Those	1565
rights include the right to compel the performance of all duties	1566
of the commission and state agencies required by this chapter or	1567
the bond proceedings; to enjoin unlawful activities; and in the	1568
event of default with respect to the payment of any bond service	1569
charges on any bonds or in the performance of any covenant or	1570
agreement on the part of the commission contained in the bond	1571
proceedings, to apply to a court having jurisdiction of the cause	1572
to appoint a receiver to receive and administer the revenues and	1573
the pledged revenues which are pledged to the payment of the bond	1574
service charges on such bonds or which are the subject of the	1575
covenant or agreement, with full power to pay, and to provide for	1576
payment of, bond service charges on such bonds, and with such	1577
powers, subject to the direction of the court, as are accorded	1578
receivers in general equity cases, excluding any power to pledge	1579
additional revenues or receipts or other income, funds, or moneys	1580
of the commission or state agencies to the payment of such bond	1581
service charges and excluding the power to take possession of,	1582
mortgage, or cause the sale or otherwise dispose of any turnpike	1583
project or other property of the commission.	1584

(J) Each duty of the commission and the commission's officers	1585
and employees, undertaken pursuant to the bond proceedings, is	1586
hereby established as a duty of the commission, and of each such	1587
officer, member, or employee having authority to perform the duty,	1588
specifically enjoined by law resulting from an office, trust, or	1589
station within the meaning of section 2731.01 of the Revised Code.	1590

(K) The commission's officers or employees are not liable in	1591
their personal capacities on any bonds issued by the commission or	1592
any agreements of or with the commission relating to those bonds.	1593

(L) The bonds are lawful investments for banks, savings and	1594
loan associations, credit union share guaranty corporations, trust	1595
companies, trustees, fiduciaries, insurance companies, including	1596
domestic for life and domestic not for life, trustees or other	1597
officers having charge of sinking and bond retirement or other	1598
funds of the state or its political subdivisions and taxing	1599
districts, the commissioners of the sinking fund of the state, the	1600
administrator of workers' compensation, the state teachers	1601
retirement system, the public employees retirement system, the	1602
school employees retirement system, and the Ohio police and fire	1603
pension fund, notwithstanding any other provisions of the Revised	1604
Code or rules adopted pursuant thereto by any state agency with	1605
respect to investments by them, and are also acceptable as	1606
security for the repayment of the deposit of public moneys.	1607

(M) Provision may be made in the applicable bond proceedings	1608
for the establishment of separate accounts in the bond service	1609
fund and for the application of such accounts only to the	1610
specified bond service charges pertinent to such accounts and bond	1611
service fund, and for other accounts therein within the general	1612
purposes of such fund.	1613

(N) The commission may pledge all, or such portion as it	1614
determines, of the pledged revenues to the payment of bond service	1615
charges, and for the establishment and maintenance of any reserves	1616
and special funds, as provided in the bond proceedings, and make	1617
other provisions therein with respect to pledged revenues,	1618
revenues, and net revenues as authorized by this chapter, which	1619
provisions are controlling notwithstanding any other provisions of	1620
law pertaining thereto.	1621

Sec. 5537.09. The Ohio turnpike and infrastructure	1622
commission may provide by resolution for the issuance of revenue	1623
bonds of the state, payable solely from pledged revenues, for the	1624
purpose of refunding any bonds then outstanding, including the	1625
payment of related financing expenses and, if considered advisable	1626
by the commission, for the additional purpose of paying costs of	1627
improvements, extensions, renovations, or enlargements of any	1628
turnpike project or any infrastructure project. The issuance of	1629
refunding bonds, the maturities and other details thereof, the	1630
rights of the holders thereof, and the rights, duties, and	1631
obligations of the commission in respect to such bonds shall be	1632
governed by the provisions of this chapter insofar as they are	1633
applicable and by the applicable bond proceedings.	1634

Sec. 5537.11. (A) The bonds do not constitute a debt, or a	1635
pledge of the faith and credit, of the state or of any political	1636
subdivision of the state. Bond service charges on outstanding	1637
bonds are payable solely from the pledged revenues pledged for	1638
their payment as authorized by this chapter and as provided in the	1639
bond proceedings. All turnpike and infrastructure revenue bonds	1640
shall contain on their face a statement to that effect.	1641

(B) All expenses incurred in carrying out this chapter shall	1642
be payable solely from revenues provided under this chapter and	1643
from state taxes. This chapter does not authorize the Ohio	1644
turnpike and infrastructure commission to incur indebtedness or	1645
liability on behalf of or payable by the state or any political	1646
subdivision of the state.	1647

Sec. 5537.12. (A) In the discretion of the Ohio turnpike and	1648
infrastructure commission any bonds may be secured by a trust	1649
agreement between the commission and a corporate trustee, which	1650
may be any trust company or bank having the powers of a trust	1651
company within or without the state but authorized to exercise	1652
trust powers within this state.	1653

(B) Any trust agreement may pledge or assign the revenues to	1654
be received, but shall not convey or mortgage any turnpike project	1655
or infrastructure project, any part of a turnpike project or	1656
infrastructure project, or any part of the Ohio turnpike system or	1657
the Ohio turnpike and infrastructure system. Any such trust	1658
agreement or other bond proceedings may contain provisions for	1659
protecting and enforcing the rights and remedies of the	1660
bondholders that are reasonable and proper and not in violation of	1661
law, including covenants setting forth the duties of the	1662
commission in relation to the acquisition of property, and the	1663
construction, maintenance, repair, operation, and insurance of the	1664
turnpike project or projects in connection with which the bonds	1665
are authorized, the rates of toll to be charged, and the custody,	1666
safeguarding, and application of all moneys, and provisions for	1667
the employment or retention of the services of consulting	1668
engineers in connection with the construction, maintenance, or	1669
operation of the turnpike project or projects. Any bank or trust	1670
company incorporated under the laws of this state which may act as	1671
depository of the proceeds of bonds or of revenues may furnish	1672
such indemnifying bonds or may pledge such securities as are	1673
required by the commission. Any such trust agreement may set forth	1674
the rights and remedies of the bondholders and of the trustee, may	1675
restrict the individual right of action by bondholders as is	1676
customary in revenue bond trust agreements of public bodies, and	1677
may contain other provisions that the commission considers	1678
reasonable and proper for the security of the bondholders. All	1679
expenses incurred in entering into or carrying out the provisions	1680
of such a trust agreement may be treated as a part of the cost, or	1681
of the cost of the operation, of the turnpike project or projects.	1682

Sec. 5537.13. (A) Subject to section 5537.26 of the Revised	1683
Code, the Ohio turnpike and infrastructure commission may fix,	1684
revise, charge, and collect tolls for each turnpike project, and	1685
contract in the manner provided by this section with any person	1686
desiring the use of any part thereof, including the right-of-way	1687
adjoining the paved portion, for placing thereon telephone,	1688
electric light, or power lines, service facilities, or for any	1689
other purpose, and fix the terms, conditions, rents, and rates of	1690
charge for such use, provided that no toll, charge, or rental may	1691
be made by the commission for placing in, on, along, over, or	1692
under the turnpike project, equipment or public utility facilities	1693
that are necessary to serve service facilities or to interconnect	1694
any public utility facilities.	1695

(B) Contracts for the operation of service facilities shall	1696
be made in writing. Such contracts, except contracts with state	1697
agencies or other governmental agencies, shall be made with the	1698
bidder whose bid is determined by the commission to be the best	1699
bid received, after advertisement for two consecutive weeks in a	1700
newspaper of general circulation in Franklin county, and in other	1701
publications that the commission determines. The notice shall	1702
state the general character of the service facilities operation	1703
proposed, the place where plans and specifications may be	1704
examined, and the time and place of receiving bids. Bids shall	1705
contain the full name of each person interested in them, and shall	1706
be in such form as the commission requires. The commission may	1707
reject any and all bids. All contracts for service facilities	1708
shall be preserved in the principal office of the commission.	1709

(C) Tolls shall be so fixed and adjusted as to provide funds	1710
at least sufficient with other revenues of the Ohio turnpike	1711
system, if any, to pay:	1712

(1) The cost of maintaining, improving, repairing,	1713
constructing, and operating the Ohio turnpike system and its	1714
different parts and sections, and to create and maintain any	1715
reserves for those purposes;	1716

(2) Any unpaid bond service charges on outstanding bonds	1717
payable from pledged revenues as such charges become due and	1718
payable, and to create and maintain any reserves for that purpose.	1719

(D) Tolls are not subject to supervision, approval, or	1720
regulation by any state agency other than the turnpike and	1721
infrastructure commission.	1722

(E) Revenues derived from each turnpike project ~~in connection~~	1723
~~with which any bonds are outstanding~~ shall be first applied to pay	1724
the cost of maintenance, improvement, repair, and operation and to	1725
provide any reserves therefor that are provided for in the bond	1726
proceedings authorizing the issuance of those outstanding bonds,	1727
and otherwise as provided by the commission~~, and the balance~~. The	1728
bond proceedings also shall provide, subject to the provisions of	1729
any other applicable bond proceedings, for the pledge of all, or	1730
such part as the commission may determine of the pledged revenues	1731
~~shall be set aside, at such regular intervals as are provided in~~	1732
~~the bond proceedings, in a bond service fund, which is hereby~~	1733
~~pledged to and charged with~~and the applicable special fund or	1734
funds to the payment of the bond service charges ~~on any such~~	1735
~~outstanding bonds as provided in the applicable~~, which pledge may	1736
be made to secure the bonds senior or subordinate to or on a	1737
parity with bonds theretofore or thereafter issued, if and to the	1738
extent provided in the bond proceedings. The pledge shall be valid	1739
and binding from the time the pledge is made; the revenues and the	1740
pledged revenues thereafter received by the commission immediately	1741
shall be subject to the lien of the pledge without any physical	1742
delivery thereof or further act, and the lien of the pledge shall	1743
be valid and binding as against all parties having claims of any	1744
kind in tort, contract, or otherwise against the commission,	1745
whether or not those parties have notice thereof. The bond	1746
proceedings by which a pledge is created need not be filed or	1747
recorded except in the records of the commission. The use and	1748
disposition of moneys to the credit of a bond service fund shall	1749
be subject to the applicable bond proceedings. ~~Except as is~~	1750
~~otherwise provided in such bond proceedings, such a bond service~~	1751
~~fund shall be a fund for all such bonds, without distinction or~~	1752
~~priority of one over another.~~	1753

(F) The proceeds of bonds issued for the payment of the costs	1754
of infrastructure projects, net of the payment of all financing	1755
expenses and deposits into debt service reserves or other special	1756
funds as may be required in the applicable bond proceedings, shall	1757
be deposited to the infrastructure fund or funds and shall be	1758
exclusively used to pay the cost of infrastructure projects	1759
approved by the commission, except that income earned by the	1760
infrastructure fund may be used by the commission towards the	1761
payment of bond service charges.	1762

Sec. 5537.14. All moneys received by the Ohio turnpike and	1763
infrastructure commission under this chapter, whether as proceeds	1764
from the sale of bonds or as revenues, are to be held and applied	1765
solely as provided in this chapter and in any applicable bond	1766
proceedings. Such moneys shall be kept in depositories as selected	1767
by the commission in the manner provided in sections 135.01 to	1768
135.21 of the Revised Code, insofar as such sections are	1769
applicable, and the deposits shall be secured as provided in	1770
sections 135.01 to 135.21 of the Revised Code. The bond	1771
proceedings shall provide that any officer to whom, or any bank or	1772
trust company to which, revenues or pledged revenues are paid	1773
shall act as trustee of such moneys and hold and apply them for	1774
the purposes thereof, subject to applicable provisions of this	1775
chapter and the bond proceedings.	1776

Sec. 5537.15. Any holder of bonds issued and outstanding	1777
under this chapter, or any of the coupons appertaining thereto,	1778
and the trustee under any trust agreement, except to the extent	1779
the rights given by this chapter may be restricted or modified by	1780
the bond proceedings, may by suit, action, mandamus, or other	1781
proceedings, protect and enforce any rights under the laws of the	1782
state or granted under this chapter or the bond proceedings, and	1783
may enforce and compel the performance of all duties required by	1784
this chapter or the bond proceedings, to be performed by the Ohio	1785
turnpike and infrastructure commission or any officer of the	1786
commission, including the fixing, charging, collecting, and	1787
application of tolls.	1788

Sec. 5537.16. (A) The Ohio turnpike and infrastructure	1789
commission may adopt such bylaws and rules as it considers	1790
advisable for the control and regulation of traffic on any	1791
turnpike project, for the protection and preservation of property	1792
under its jurisdiction and control, for the maintenance and	1793
preservation of good order within the property under its control,	1794
and for the purpose of establishing owner or operator liability	1795
for failure to comply with toll collection rules. The rules of the	1796
commission with respect to the speed, use of special engine	1797
brakes, axle loads, vehicle loads, and vehicle dimensions of	1798
vehicles on turnpike projects, including the issuance of a special	1799
permit by the commission to allow the operation on any turnpike	1800
project of a motor vehicle transporting two or fewer steel coils,	1801
shall apply notwithstanding sections 4511.21 to 4511.24, 4513.34,	1802
and Chapter 5577. of the Revised Code. Such bylaws and rules shall	1803
be published in a newspaper of general circulation in Franklin	1804
county, and in such other manner as the commission prescribes.	1805

(B) Such rules shall provide that public police officers	1806
shall be afforded ready access, while in the performance of their	1807
official duty, to all property under the jurisdiction of the	1808
commission and without the payment of tolls.	1809

(C) No person shall violate any such bylaws or rules of the	1810
commission.	1811

(D)(1) All fines collected for the violation of applicable	1812
laws of the state and the bylaws and rules of the commission or	1813
moneys arising from bonds forfeited for such violation shall be	1814
disposed of in accordance with section 5503.04 of the Revised	1815
Code.	1816

(2) All fees or charges assessed by the commission against an	1817
owner or operator of a vehicle as a civil violation for failure to	1818
comply with toll collection or toll evasion rules shall be	1819
revenues of the commission.	1820

Sec. 5537.17. (A) Each turnpike project open to traffic	1821
shall be maintained and kept in good condition and repair by the	1822
Ohio turnpike and infrastructure commission. The Ohio turnpike	1823
system shall be policed and operated by a force of police, toll	1824
collectors, and other employees and agents that the commission	1825
employs or contracts for.	1826

(B) All public or private property damaged or destroyed in	1827
carrying out the powers granted by this chapter shall be restored	1828
or repaired and placed in its original condition, as nearly as	1829
practicable, or adequate compensation or consideration made	1830
therefor out of moneys provided under this chapter.	1831

(C) All governmental agencies may lease, lend, grant, or	1832
convey to the commission at its request, upon terms that the	1833
proper authorities of the governmental agencies consider	1834
reasonable and fair and without the necessity for an	1835
advertisement, order of court, or other action or formality, other	1836
than the regular and formal action of the authorities concerned,	1837
any property that is necessary or convenient to the effectuation	1838
of the purposes of the commission, including public roads and	1839
other property already devoted to public use.	1840

(D) Each bridge constituting part of a turnpike project shall	1841
be inspected at least once each year by a professional engineer	1842
employed or retained by the commission.	1843

(E) On or before the first day of July in each year, the	1844
commission shall make an annual report of its activities for the	1845
preceding calendar year to the governor and the general assembly.	1846
Each such report shall set forth a complete operating and	1847
financial statement covering the commission's operations and	1848
funding of any turnpike projects and infrastructure projects	1849
during the year. The commission shall cause an audit of its books	1850
and accounts to be made at least once each year by certified	1851
public accountants, and the cost thereof may be treated as a part	1852
of the cost of operations of the commission. The auditor of state,	1853
at least once a year and without previous notice to the	1854
commission, shall audit the accounts and transactions of the	1855
commission.	1856

(F) The commission shall submit a copy of its annual audit by	1857
the auditor of state and its proposed annual budget for each	1858
calendar or fiscal year to the governor, the presiding officers of	1859
each house of the general assembly, the director of budget and	1860
management, and the legislative service commission no later than	1861
the first day of that calendar or fiscal year.	1862

(G) Upon request of the chairperson of the appropriate	1863
standing committee or subcommittee of the senate and house of	1864
representatives that is primarily responsible for considering	1865
transportation budget matters, the commission shall appear at	1866
least one time before each committee or subcommittee during the	1867
period when that committee or subcommittee is considering the	1868
biennial appropriations for the department of transportation and	1869
shall provide testimony outlining its budgetary results for the	1870
last two calendar years, including a comparison of budget and	1871
actual revenue and expenditure amounts. The commission also shall	1872
address its current budget and long-term capital plan.	1873

(H) Not more than sixty nor less than thirty days before	1874
adopting its annual budget, the commission shall submit a copy of	1875
its proposed annual budget to the governor, the presiding officers	1876
of each house of the general assembly, the director of budget and	1877
management, and the legislative service commission. The office of	1878
budget and management shall review the proposed budget and may	1879
provide recommendations to the commission for its consideration.	1880

Sec. 5537.18. (A) The Ohio turnpike and infrastructure	1881
commission shall adopt rules establishing the procedures and	1882
criteria under which the commission may approve an application	1883
received from the director of transportation for infrastructure	1884
project funding under division (B) of this section. The rules	1885
shall require both of the following:	1886

(1) An infrastructure project to have an anticipated economic	1887
or transportation-related impact on the Ohio turnpike and	1888
infrastructure system;	1889

(2) Proceeds from bonds for infrastructure projects issued	1890
under this chapter to be used solely to fund infrastructure	1891
projects with a nexus to the Ohio turnpike.	1892

(B) The director of transportation may submit an application	1893
to the commission for infrastructure project funding. An	1894
application to the commission for infrastructure project funding,	1895
as submitted by the director, shall include only infrastructure	1896
projects that previously have been reviewed and recommended by the	1897
transportation review advisory council pursuant to the selection	1898
process followed by the council under Chapter 5512. of the Revised	1899
Code.	1900

(C) The commission shall evaluate each application for	1901
infrastructure project funding submitted under division (B) of	1902
this section in accordance with the procedures and criteria	1903
established in rules adopted under division (A) of this section. A	1904
determination or approval made under this section is conclusive	1905
and incontestable.	1906

Sec. 5537.19. The Ohio turnpike and infrastructure	1907
commission shall expend such moneys as the commission considers	1908
necessary for studies of any turnpike project or infrastructure	1909
project, whether proposed, under construction, or in operation,	1910
and may employ consulting engineers, traffic engineers, and any	1911
other individuals or firms that the commission considers necessary	1912
to properly implement the studies. The cost of the studies may be	1913
paid from revenues, eligible state and federal grants, state taxes	1914
available to the commission and permitted by law to be spent for	1915
such purposes, or the proceeds of bonds.	1916

Sec. 5537.20. The exercise of the powers granted by this	1917
chapter is in all respects for the benefit of the people of the	1918
state, for the increase of their commerce and prosperity, and for	1919
the improvement of their health and living conditions, and as the	1920
construction, operation, and maintenance of the Ohio turnpike	1921
system by the Ohio turnpike and infrastructure commission	1922
constitute the performance of essential governmental functions,	1923
the commission, except as provided in division (D) of section	1924
5537.05 of the Revised Code, shall not be required to pay any	1925
state or local taxes or assessments upon any turnpike project or	1926
infrastructure project funded by it, or upon revenues or any	1927
property acquired or used by the commission under this chapter, or	1928
upon the income therefrom. The bonds issued under this chapter,	1929
their transfer, and the income therefrom, including any profit	1930
made on the sale thereof, shall at all times be free from taxation	1931
within the state.	1932

Sec. 5537.21. (A) When bond service charges on all	1933
outstanding bonds issued in connection with any turnpike project	1934
have been paid or provision for that payment has been made, as	1935
provided in the applicable bond proceedings, or in the case of a	1936
turnpike project in connection with which no bonds have been	1937
issued, the project shall continue to be or be operated, and	1938
improved and maintained, by the Ohio turnpike and infrastructure	1939
commission as a part of the Ohio turnpike system and as a toll	1940
road, and all revenues received by the commission relating to that	1941
project shall be applied as provided in division (B) of this	1942
section.	1943

(B) Subject to the bond proceedings for bonds relating to any	1944
turnpike project or infrastructure project, tolls relating to a	1945
turnpike project as referred to in division (A) of this section	1946
shall be so fixed and adjusted such that the aggregate of	1947
available revenues relating to that turnpike project ~~and available~~	1948
~~for the purpose~~ are in amounts ~~to provide moneys~~at least	1949
sufficient~~, and those revenues shall be used,~~ to pay the costs	1950
described in division (C)(1) of section 5537.13 of the Revised	1951
Code.	1952

Sec. 5537.22. All final actions of the Ohio turnpike and	1953
infrastructure commission shall be journalized and such journal	1954
shall be open to the inspection of the public at all reasonable	1955
times.	1956

Sec. 5537.24. (A) There is hereby created a turnpike	1957
legislative review committee consisting of six members as follows:	1958

(1) Three members of the senate, no more than two of whom	1959
shall be members of the same political party, one of whom shall be	1960
the chairperson of the committee dealing primarily with highway	1961
matters, one of whom shall be appointed by the president of the	1962
senate, and one of whom shall be appointed by the minority leader	1963
of the senate.	1964

Both the senate member who is appointed by the president of	1965
the senate and the senate member appointed by the minority leader	1966
of the senate shall represent either districts in which is located	1967
or through which passes a portion of a turnpike project that is	1968
part of the Ohio turnpike system or districts located in the	1969
vicinity of a turnpike project that is part of the Ohio turnpike	1970
system.	1971

The president of the senate shall make the president of the	1972
senate's appointment to the committee first, followed by the	1973
minority leader of the senate, and they shall make their	1974
appointments in such a manner that their two appointees represent	1975
districts that are located in different areas of the state. If the	1976
chairperson of the senate committee dealing primarily with highway	1977
matters represents a district in which is located or through which	1978
passes a portion of a turnpike project that is part of the Ohio	1979
turnpike system or a district located in the vicinity of a	1980
turnpike project that is part of the Ohio turnpike system, the	1981
president of the senate and the minority leader of the senate	1982
shall make their appointments in such a manner that their two	1983
appointees and the chairperson of the senate committee dealing	1984
primarily with highway matters all represent districts that are	1985
located in different areas of the state.	1986

(2) Three members of the house of representatives, no more	1987
than two of whom shall be members of the same political party, one	1988
of whom shall be the chairperson of the house of representatives	1989
committee dealing primarily with highway matters, one of whom	1990
shall be appointed by the speaker of the house of representatives,	1991
and one of whom shall be appointed by the minority leader of the	1992
house of representatives.	1993

Both the house of representatives member who is appointed by	1994
the speaker of the house of representatives and the house of	1995
representatives member appointed by the minority leader of the	1996
house of representatives shall represent either districts in which	1997
is located or through which passes a portion of a turnpike project	1998
that is part of the Ohio turnpike system or districts located in	1999
the vicinity of a turnpike project that is part of the Ohio	2000
turnpike system.	2001

The speaker of the house of representatives shall make the	2002
speaker of the house of representative's appointment to the	2003
committee first, followed by the minority leader of the house of	2004
representatives, and they shall make their appointments in such a	2005
manner that their two appointees represent districts that are	2006
located in different areas of the state. If the chairperson of the	2007
house of representatives committee dealing primarily with highway	2008
matters represents a district in which is located or through which	2009
passes a portion of a turnpike project that is part of the Ohio	2010
turnpike system or a district located in the vicinity of a	2011
turnpike project that is part of the Ohio turnpike system, the	2012
speaker of the house of representatives and the minority leader of	2013
the house of representatives shall make their appointments in such	2014
a manner that their two appointees and the chairperson of the	2015
house of representatives committee dealing primarily with highway	2016
matters all represent districts that are located in different	2017
areas of the state.	2018

The chairperson of the house of representatives committee	2019
shall serve as the chairperson of the turnpike legislative review	2020
committee for the year 1996. Thereafter, the chair annually shall	2021
alternate between, first, the chairperson of the senate committee	2022
and then the chairperson of the house of representatives	2023
committee.	2024

(B) Each member of the turnpike legislative review committee	2025
who is a member of the general assembly shall serve a term of the	2026
remainder of the general assembly during which the member is	2027
appointed or is serving as chairperson of the specified senate or	2028
house committee. In the event of the death or resignation of a	2029
committee member who is a member of the general assembly, or in	2030
the event that a member ceases to be a senator or representative,	2031
or in the event that the chairperson of the senate committee	2032
dealing primarily with highway matters or the chairperson of the	2033
house of representatives committee dealing primarily with highway	2034
matters ceases to hold that position, the vacancy shall be filled	2035
through an appointment by the president of the senate or the	2036
speaker of the house of representatives or minority leader of the	2037
senate or house of representatives, as applicable. Any member	2038
appointed to fill a vacancy occurring prior to the end of the term	2039
for which the member's predecessor was appointed shall hold office	2040
for the remainder of the term or for a shorter period of time as	2041
determined by the president or the speaker. A member of the	2042
committee is eligible for reappointment.	2043

(C) The turnpike legislative review committee shall meet at	2044
least quarterly and may meet at the call of its chairperson, or	2045
upon the written request to the chairperson of not fewer than four	2046
members of the committee. Meetings shall be held at sites that are	2047
determined solely by the chairperson of the committee. At each	2048
meeting, the Ohio turnpike and infrastructure commission shall	2049
make a report to the committee on commission matters, including	2050
but not limited to financial and budgetary matters and proposed	2051
and on-going construction, maintenance, repair, and operational	2052
projects of the commission.	2053

The committee, by the affirmative vote of at least four of	2054
its members, may submit written recommendations to the commission,	2055
either at meetings held pursuant to this section or at any other	2056
time, describing new turnpike projects or new interchanges located	2057
on existing projects that the committee believes the commission	2058
should consider constructing.	2059

(D) At least annually the commission shall make a report to	2060
the committee of those infrastructure projects approved and paid	2061
for by the commission.	2062

(E) The members of the turnpike legislative review committee	2063
who are members of the general assembly shall serve without	2064
compensation, but shall be reimbursed by the commission for their	2065
actual and necessary expenses incurred in the discharge of their	2066
official duties as committee members. Serving as a member of the	2067
turnpike legislative review committee does not constitute grounds	2068
for resignation from the senate or house of representatives under	2069
section 101.26 of the Revised Code.	2070

Sec. 5537.25. (A) Notwithstanding any provision of law to	2071
the contrary, the Ohio turnpike and infrastructure commission	2072
shall make no expenditure to engage the services of any person to	2073
influence either of the following:	2074

(1) Administrative actions or decisions of the governor, the	2075
director of any department listed in section 121.02 of the Revised	2076
Code, any member of the staff of any public officer or employee	2077
listed in this section, the president of the United States, or any	2078
federal officer or employee;	2079

(2) Legislation pending in this state or any other state, a	2080
subdivision of this state or any other state, or the federal	2081
government, including the executive approval or veto of any such	2082
pending legislation.	2083

(B) This section shall not be interpreted to prohibit the	2084
commission from designating officers or members of the commission,	2085
or full-time, permanent employees of the commission, to act as	2086
administrative or legislative agents for the commission.	2087

Sec. 5537.26. (A) Except as provided in division (D) of this	2088
section, no increase by the Ohio turnpike and infrastructure	2089
commission in the toll rate structure that is applicable to	2090
vehicles operating on a turnpike project shall become effective	2091
unless the commission complies with the notice and hearing	2092
requirements prescribed in division (B) of this section, and the	2093
commission shall not take any action that expands, has the effect	2094
of expanding, or will to any degree at any time in the future have	2095
the effect of expanding the sphere of responsibility of the	2096
commission beyond the Ohio turnpike, unless the commission	2097
complies with the notice and hearing requirements prescribed in	2098
division (B) of this section.	2099

(B) Not less than ninety days prior to the date on which the	2100
commission votes to increase any part of the toll rate structure	2101
that is applicable to vehicles operating on a turnpike project,	2102
and not less than ninety days prior to the date on which the	2103
commission votes to take an action that expands, has the effect of	2104
expanding, or will to any degree at any time in the future have	2105
the effect of expanding the sphere of responsibility of the	2106
commission beyond the Ohio turnpike, the commission shall do both	2107
of the following:	2108

(1) Send notice to the governor and the presiding officers	2109
and minority leaders of the senate and house of representatives	2110
that details the proposed increase to the toll rate structure or	2111
the expansion of the sphere of responsibility of the commission	2112
beyond the Ohio turnpike, including a description of and a	2113
justification for the increase or expansion;	2114

(2) Commence holding public hearings on the proposed increase	2115
in the toll rate structure or the proposed action. If the	2116
commission is proposing an increase in the toll rate structure	2117
that is applicable to vehicles operating on a turnpike project, it	2118
shall hold not less than three public hearings in three	2119
geographically diverse locations in this state that are in the	2120
immediate vicinity of the affected project. If the commission is	2121
proposing to take an action that expands, has the effect of	2122
expanding, or will to any degree at any time in the future have	2123
the effect of expanding the sphere of responsibility of the	2124
commission beyond the Ohio turnpike, it shall hold not less than	2125
three public hearings in three locations in the immediate vicinity	2126
where the expanded responsibilities would arise.	2127

The commission shall hold the third or, if it holds more than	2128
three hearings, the last hearing of any set of hearings required	2129
to be held under this section not less than thirty days prior to	2130
the date on which it votes to increase part of the toll rate	2131
structure that is applicable to vehicles operating on a turnpike	2132
project or to take an action that expands, has the effect of	2133
expanding, or will to any degree at any time in the future have	2134
the effect of expanding the sphere of responsibility of the	2135
commission beyond the Ohio turnpike.	2136

The commission shall inform the public of all the hearings	2137
required to be held under this section by causing a notice to be	2138
published in a newspaper of general circulation in the county in	2139
which each hearing is to be held, not less than once per week for	2140
two weeks prior to the date of the hearing.	2141

(C) If the commission does not comply with the notice and	2142
hearing requirements contained in division (B) of this section and	2143
votes for an increase in the toll rate structure that is	2144
applicable to vehicles operating on a turnpike project, the	2145
increase in the toll rate structure shall not take effect, any	2146
attempt by the commission to implement the increase in the toll	2147
rate structure is void, and, if necessary, the attorney general	2148
shall file an action in the court of common pleas of the county in	2149
which the principal office of the commission is located to enjoin	2150
the commission from implementing the increase. The commission	2151
shall not implement any increase until it complies with division	2152
(B) of this section.	2153

If the commission does not comply with the notice and hearing	2154
requirements contained in division (B) of this section and votes	2155
to take an action that expands, has the effect of expanding, or	2156
will to any degree at any time in the future have the effect of	2157
expanding the sphere of responsibility of the commission beyond	2158
the Ohio turnpike, the commission shall not take the proposed	2159
action and, if necessary, the attorney general shall file an	2160
action in the court of common pleas of the county in which the	2161
principal office of the commission is located to enjoin the	2162
commission from taking the proposed action. The commission shall	2163
not take the proposed action until it complies with the notice and	2164
hearing requirements prescribed in division (B) of this section.	2165

(D) Divisions (A) to (C) of this section do not apply to any	2166
decrease made to the toll rate structure by the commission. The	2167
commission may implement a temporary decrease in the toll rate	2168
structure only if it does not exceed eighteen months in duration.	2169
Prior to instituting any decrease to the toll rate structure, the	2170
commission shall do both of the following:	2171

(1) Not less than five days prior to any public meeting under	2172
division (D)(2) of this section, send notice to the governor and	2173
the presiding officers and minority leaders of the senate and	2174
house of representatives that details the proposed decrease to the	2175
toll rate structure;	2176

(2) Hold a public meeting to explain to members of the	2177
traveling public the reasons for the upcoming decrease, to inform	2178
them of any benefits and any negative consequences, and to give	2179
them the opportunity to express their opinions as to the relative	2180
merits or drawbacks of each toll decrease. The commission shall	2181
inform the public of the meeting by causing a notice to be	2182
published in newspapers of general circulation in Cuyahoga, Lucas,	2183
Mahoning, Trumbull, Williams, and Summit counties not less than	2184
five days prior to the meeting. The commission shall not be	2185
required to hold any public hearing or meeting upon the expiration	2186
of any temporary decrease in the toll rate structure, so long as	2187
it implements the same toll rate structure that was in effect	2188
immediately prior to the temporary decrease.	2189

(E) As used in this section, "Ohio turnpike" means the toll	2190
freeway that is under the jurisdiction of the commission and runs	2191
in an easterly and westerly direction across the entire northern	2192
portion of this state between its borders with the state of	2193
Pennsylvania in the east and the state of Indiana in the west, and	2194
carries the interstate highway designations of interstate	2195
seventy-six, interstate eighty, and interstate eighty-ninety.	2196

Sec. 5537.27. The Ohio turnpike and infrastructure	2197
commission, the director of transportation or the director's	2198
designee, and another person designated by the governor shall	2199
establish a procedure whereby a political subdivision or other	2200
government agency or agencies may submit a written application to	2201
the commission, requesting the commission to construct and operate	2202
a turnpike project within the boundaries of the subdivision,	2203
agency, or agencies making the request. The procedure shall	2204
include a requirement that the commission send a written reply to	2205
the subdivision, agency, or agencies, explaining the disposition	2206
of the request. The procedure established pursuant to this section	2207
shall not become effective unless it is approved by the commission	2208
and by the director or the director's designee and the designee of	2209
the governor, and shall require submission of the proposed	2210
turnpike project to the turnpike legislative review committee if	2211
the project must be approved by the governor.	2212

Sec. 5537.28. (A) ~~Notwithstanding any other provision of~~	2213
~~law, on and after the effective date of this section, the Ohio~~	2214
~~turnpike commission shall not expend any toll revenues that are~~	2215
~~generated by an existing turnpike project to fund in any manner or~~	2216
~~to any degree the construction, operation, maintenance, or repair~~	2217
~~of another turnpike project the location of which must be reviewed~~	2218
~~by the turnpike legislative review committee and approved by the~~	2219
~~governor.~~	2220

In paying the cost of ~~such a~~any turnpike project, the Ohio	2221
turnpike and infrastructure commission may issue bonds and bond	2222
anticipation notes as permitted by this chapter, and may accept	2223
moneys from any source to pay the cost of any portion of the	2224
turnpike project, including, but not limited to, the federal	2225
government, any department or agency of this state, and any	2226
political subdivision or other government agency. Each such	2227
project shall be constructed, operated, maintained, and repaired	2228
~~entirely~~ with funds ~~generated by that project or otherwise~~	2229
specifically acquired for that project or from ~~sources permitted~~	2230
~~by this chapter~~excess funds available from any other turnpike	2231
project.	2232

(B) ~~The commission shall not expend any toll revenues~~	2233
~~generated by the Ohio turnpike to pay any amount of the principal~~	2234
~~amount of, or interest due on, any bonds or bond anticipation~~	2235
~~notes issued by the commission to pay any portion of the cost of~~	2236
~~another turnpike project the location of which must be reviewed by~~	2237
~~the turnpike legislative review committee and approved by the~~	2238
~~governor. The commission shall not expend any toll revenues~~	2239
~~generated by any turnpike project to pay any amount of the~~	2240
~~principal amount of, or interest due on, any bonds or bond~~	2241
~~anticipation notes issued by the commission to pay any portion of~~	2242
~~the cost of a new turnpike project the location of which must be~~	2243
~~reviewed by the turnpike legislative review committee and approved~~	2244
~~by the governor or the cost of the operation, repair, improvement,~~	2245
~~maintenance, or reconstruction of any turnpike project other than~~	2246
~~the project that generated those toll revenues.~~	2247

~~(C)~~ As used in this section:

2248

~~(1) "Ohio turnpike" has the same meaning as in division (E)~~	2249
~~of section 5537.26 of the Revised Code;~~	2250

~~(2) "Another~~"any turnpike project" does not include	2251
infrastructure ~~improvements on the Ohio turnpike or on connecting~~	2252
~~roadways within one mile of an Ohio turnpike interchange~~projects.	2253
The costs of infrastructure projects approved under section	2254
5537.18 of the Revised Code shall be funded exclusively out of the	2255
infrastructure fund or funds.	2256

Sec. 5537.30. (A) Not later than December 31, 2009, the Ohio	2257
turnpike and infrastructure commission shall establish a program	2258
for the placement of business logos for identification purposes on	2259
directional signs within the turnpike right-of-way.	2260

(B)(1) The commission shall establish, and may revise at any	2261
time, a fee for participation in the business logo sign program.	2262
All direct and indirect costs of the business logo sign program	2263
established pursuant to this section shall be fully paid by the	2264
businesses applying for participation in the program. The direct	2265
and indirect costs of the program shall include, but not be	2266
limited to, the cost of capital, directional signs, blanks, posts,	2267
logos, installation, repair, engineering, design, insurance,	2268
removal, replacement, and administration.	2269

(2) Money generated from participating businesses in excess	2270
of the direct and indirect costs and any reasonable profit earned	2271
by a person awarded a contract ~~under division (C) of this section~~	2272
to operate, maintain, or market the business logo sign program	2273
shall be remitted to the commission.	2274

(3) If the commission operates such a program and does not	2275
contract with a private person to operate it, all money collected	2276
from participating businesses shall be retained by the commission.	2277

(C) ~~The commission, in accordance with rules adopted pursuant~~	2278
~~to section 111.15 of the Revised Code, may contract with any~~	2279
~~private person to operate, maintain, or market the business logo~~	2280
~~sign program. The contract may allow for a reasonable profit to be~~	2281
~~earned by the successful applicant. In awarding the contract, the~~	2282
~~commission shall consider the skill, expertise, prior experience,~~	2283
~~and other qualifications of each applicant.~~	2284

~~(D)~~ The program shall permit the business logo signs of a	2285
seller of motor vehicle fuel to include on the seller's signs a	2286
marking or symbol indicating that the seller sells one or more	2287
types of alternative fuel so long as the seller in fact sells that	2288
fuel. As used in this division, "alternative fuel" has the same	2289
meaning as in section 125.831 of the Revised Code.	2290

Sec. 5728.01. As used in sections 5728.02 to 5728.14 of the	2291
Revised Code:	2292

(A) "Motor vehicle" means everything on wheels that is	2293
self-propelled, other than by muscular power or power collected	2294
from electric trolley wires and other than vehicles or machinery	2295
not designed for or employed in general highway transportation,	2296
used to transport or propel persons or property over a public	2297
highway.	2298

(B) "Commercial car" means any motor vehicle used for	2299
transporting persons or property, wholly on its own structure on a	2300
public highway.	2301

(C) "Commercial tractor" means any motor vehicle designed and	2302
used to propel or draw a trailer or semi-trailer or both on a	2303
public highway without having any provision for carrying loads	2304
independently of such trailer or semi-trailer.	2305

(D) "Trailer" means everything on wheels that is not	2306
self-propelled, except vehicles or machinery not designed for or	2307
employed in general highway transportation, used for carrying	2308
property wholly on its own structure and for being drawn by a	2309
motor vehicle on a public highway, including any such vehicle when	2310
formed by or operated as a combination of a semi-trailer and a	2311
vehicle of the dolly type such as that commonly known as a trailer	2312
dolly. "Trailer" does not include manufactured homes as defined in	2313
division (C)(4) of section 3781.06 of the Revised Code or mobile	2314
homes as defined in division (O) of section 4501.01 of the Revised	2315
Code.	2316

(E) "Semi-trailer" means everything on wheels that is not	2317
self-propelled, except vehicles or machinery not designed for or	2318
employed in general highway transportation, designed and used for	2319
carrying property on a public highway when being propelled or	2320
drawn by a commercial tractor when part of its own weight or the	2321
weight of its load, or both, rest upon and is carried by a	2322
commercial tractor.	2323

(F) "Commercial tandem" means any commercial car and trailer	2324
or any commercial tractor, semi-trailer, and trailer when fastened	2325
together and used as one unit.	2326

(G) "Commercial tractor combination" means any commercial	2327
tractor and semi-trailer when fastened together and used as one	2328
unit.	2329

(H) "Axle" means two or more load carrying wheels mounted in	2330
a single transverse vertical plane.	2331

(I) "Public highway" means any highway, road, or street	2332
dedicated to public use, including a highway under the control and	2333
jurisdiction of the Ohio turnpike and infrastructure commission	2334
created by the provisions of section 5537.02 of the Revised Code	2335
and land and lots over which the public, either as user or owner,	2336
generally has a right to pass even though such land or lots are	2337
closed temporarily by public authorities for the purpose of	2338
construction, reconstruction, maintenance, or repair.	2339

(J) "Jurisdiction" means a state of the United States, the	2340
District of Columbia, or a province or territory of Canada.	2341

Sec. 5735.05. (A) To provide revenue for maintaining the	2342
state highway system; to widen existing surfaces on such highways;	2343
to resurface such highways; to pay that portion of the	2344
construction cost of a highway project which a county, township,	2345
or municipal corporation normally would be required to pay, but	2346
which the director of transportation, pursuant to division (B) of	2347
section 5531.08 of the Revised Code, determines instead will be	2348
paid from moneys in the highway operating fund; to enable the	2349
counties of the state properly to plan, maintain, and repair their	2350
roads and to pay principal, interest, and charges on bonds and	2351
other obligations issued pursuant to Chapter 133. of the Revised	2352
Code or incurred pursuant to section 5531.09 of the Revised Code	2353
for highway improvements; to enable the municipal corporations to	2354
plan, construct, reconstruct, repave, widen, maintain, repair,	2355
clear, and clean public highways, roads, and streets, and to pay	2356
the principal, interest, and charges on bonds and other	2357
obligations issued pursuant to Chapter 133. of the Revised Code or	2358
incurred pursuant to section 5531.09 of the Revised Code for	2359
highway improvements; to enable the Ohio turnpike and	2360
infrastructure commission to construct, reconstruct, maintain, and	2361
repair turnpike projects; to maintain and repair bridges and	2362
viaducts; to purchase, erect, and maintain street and traffic	2363
signs and markers; to purchase, erect, and maintain traffic lights	2364
and signals; to pay the costs apportioned to the public under	2365
sections 4907.47 and 4907.471 of the Revised Code and to	2366
supplement revenue already available for such purposes; to pay the	2367
costs incurred by the public utilities commission in administering	2368
sections 4907.47 to 4907.476 of the Revised Code; to distribute	2369
equitably among those persons using the privilege of driving motor	2370
vehicles upon such highways and streets the cost of maintaining	2371
and repairing them; to pay the interest, principal, and charges on	2372
highway capital improvements bonds and other obligations issued	2373
pursuant to Section 2m of Article VIII, Ohio Constitution, and	2374
section 151.06 of the Revised Code; to pay the interest,	2375
principal, and charges on highway obligations issued pursuant to	2376
Section 2i of Article VIII, Ohio Constitution, and sections	2377
5528.30 and 5528.31 of the Revised Code; to pay the interest,	2378
principal, and charges on major new state infrastructure bonds and	2379
other obligations of the state issued pursuant to Section 13 of	2380
Article VIII, Ohio Constitution, and section 5531.10 of the	2381
Revised Code; to provide revenue for the purposes of sections	2382
1547.71 to 1547.78 of the Revised Code; and to pay the expenses of	2383
the department of taxation incident to the administration of the	2384
motor fuel laws, a motor fuel excise tax is hereby imposed on all	2385
motor fuel dealers upon receipt of motor fuel within this state at	2386
the rate of two cents plus the cents per gallon rate on each	2387
gallon so received, to be computed in the manner set forth in	2388
section 5735.06 of the Revised Code; provided that no tax is	2389
hereby imposed upon the following transactions:	2390

(1) The sale of dyed diesel fuel by a licensed motor fuel	2391
dealer from a location other than a retail service station	2392
provided the licensed motor fuel dealer places on the face of the	2393
delivery document or invoice, or both if both are used, a	2394
conspicuous notice stating that the fuel is dyed and is not for	2395
taxable use, and that taxable use of that fuel is subject to a	2396
penalty. The tax commissioner, by rule, may provide that any	2397
notice conforming to rules or regulations issued by the United	2398
States department of the treasury or the Internal Revenue Service	2399
is sufficient notice for the purposes of division (A)(1) of this	2400
section.	2401

(2) The sale of K-1 kerosene to a retail service station,	2402
except when placed directly in the fuel supply tank of a motor	2403
vehicle. Such sale shall be rebuttably presumed to not be	2404
distributed or sold for use or used to generate power for the	2405
operation of motor vehicles upon the public highways or upon the	2406
waters within the boundaries of this state.	2407

(3) The sale of motor fuel by a licensed motor fuel dealer to	2408
another licensed motor fuel dealer;	2409

(4) The exportation of motor fuel by a licensed motor fuel	2410
dealer from this state to any other state or foreign country;	2411

(5) The sale of motor fuel to the United States government or	2412
any of its agencies, except such tax as is permitted by it, where	2413
such sale is evidenced by an exemption certificate, in a form	2414
approved by the tax commissioner, executed by the United States	2415
government or an agency thereof certifying that the motor fuel	2416
therein identified has been purchased for the exclusive use of the	2417
United States government or its agency;	2418

(6) The sale of motor fuel that is in the process of	2419
transportation in foreign or interstate commerce, except insofar	2420
as it may be taxable under the Constitution and statutes of the	2421
United States, and except as may be agreed upon in writing by the	2422
dealer and the commissioner;	2423

(7) The sale of motor fuel when sold exclusively for use in	2424
the operation of aircraft, where such sale is evidenced by an	2425
exemption certificate prescribed by the commissioner and executed	2426
by the purchaser certifying that the motor fuel purchased has been	2427
purchased for exclusive use in the operation of aircraft;	2428

(8) The sale for exportation of motor fuel by a licensed	2429
motor fuel dealer to a licensed exporter type A;	2430

(9) The sale for exportation of motor fuel by a licensed	2431
motor fuel dealer to a licensed exporter type B, provided that the	2432
destination state motor fuel tax has been paid or will be accrued	2433
and paid by the licensed motor fuel dealer.	2434

(10) The sale to a consumer of diesel fuel, by a motor fuel	2435
dealer for delivery from a bulk lot vehicle, for consumption in	2436
operating a vessel when the use of such fuel in a vessel would	2437
otherwise qualify for a refund under section 5735.14 of the	2438
Revised Code.	2439

Division (A)(1) of this section does not apply to the sale or	2440
distribution of dyed diesel fuel used to operate a motor vehicle	2441
on the public highways or upon water within the boundaries of this	2442
state by persons permitted under regulations of the United States	2443
department of the treasury or of the Internal Revenue Service to	2444
so use dyed diesel fuel.	2445

(B) The two cent motor fuel tax levied by this section is	2446
also for the purpose of paying the expenses of administering and	2447
enforcing the state law relating to the registration and operation	2448
of motor vehicles.	2449

(C) After the tax provided for by this section on the receipt	2450
of any motor fuel has been paid by the motor fuel dealer, the	2451
motor fuel may thereafter be used, sold, or resold by any person	2452
having lawful title to it, without incurring liability for such	2453
tax.	2454

If a licensed motor fuel dealer sells motor fuel received by	2455
the licensed motor fuel dealer to another licensed motor fuel	2456
dealer, the seller may deduct on the report required by section	2457
5735.06 of the Revised Code the number of gallons so sold for the	2458
month within which the motor fuel was sold or delivered. In this	2459
event the number of gallons is deemed to have been received by the	2460
purchaser, who shall report and pay the tax imposed thereon.	2461

Sec. 5735.23. (A) Out of receipts from the tax levied by	2462
section 5735.05 of the Revised Code, the treasurer of state shall	2463
place to the credit of the tax refund fund established by section	2464
5703.052 of the Revised Code amounts equal to the refunds	2465
certified by the tax commissioner pursuant to sections 5735.13,	2466
5735.14, 5735.141, 5735.142, and 5735.16 of the Revised Code. The	2467
treasurer of state shall then transfer the amount required by	2468
section 5735.051 of the Revised Code to the waterways safety fund,	2469
the amount required by section 4907.472 of the Revised Code to the	2470
grade crossing protection fund, and the amount required by section	2471
5735.053 of the Revised Code to the motor fuel tax administration	2472
fund.	2473

(B) Except as provided in division (D) of this section, each	2474
month the balance of the receipts from the tax levied by section	2475
5735.05 of the Revised Code shall be credited, after receipt by	2476
the treasurer of state of certification from the commissioners of	2477
the sinking fund, as required by section 5528.35 of the Revised	2478
Code, that there are sufficient moneys to the credit of the	2479
highway obligations bond retirement fund to meet in full all	2480
payments of interest, principal, and charges for the retirement of	2481
highway obligations issued pursuant to Section 2i of Article VIII,	2482
Ohio Constitution, and sections 5528.30 and 5528.31 of the Revised	2483
Code due and payable during the current calendar year, as follows:	2484

(1) To the state and local government highway distribution	2485
fund, which is hereby created in the state treasury, an amount	2486
that is the same percentage of the balance to be credited as that	2487
portion of the tax per gallon determined under division (B)(2)(a)	2488
of section 5735.06 of the Revised Code is of the total tax per	2489
gallon determined under divisions (B)(2)(a) and (b) of that	2490
section.	2491

(2) After making the distribution to the state and local	2492
government highway distribution fund, the remainder shall be	2493
credited as follows:	2494

(a) Thirty per cent to the gasoline excise tax fund for	2495
distribution pursuant to division (A)(1) of section 5735.27 of the	2496
Revised Code;	2497

(b) Twenty-five per cent to the gasoline excise tax fund for	2498
distribution pursuant to division (A)(3) of section 5735.27 of the	2499
Revised Code;	2500

(c) Except as provided in division (D) of this section,	2501
forty-five per cent to the highway operating fund for distribution	2502
pursuant to division (B)(1) of section 5735.27 of the Revised	2503
Code.	2504

(C) From the balance in the state and local government	2505
highway distribution fund on the last day of each month there	2506
shall be paid the following amounts:	2507

(1) To the local transportation improvement program fund	2508
created by section 164.14 of the Revised Code, an amount equal to	2509
a fraction of the balance in the state and local government	2510
highway distribution fund, the numerator of which fraction is one	2511
and the denominator of which fraction is that portion of the tax	2512
per gallon determined under division (B)(2)(a) of section 5735.06	2513
of the Revised Code;	2514

(2) An amount equal to five cents multiplied by the number of	2515
gallons of motor fuel sold at stations operated by the Ohio	2516
turnpike and infrastructure commission, such gallonage to be	2517
certified by the commission to the treasurer of state not later	2518
than the last day of the month following. The funds paid to the	2519
commission pursuant to this section shall be expended for the	2520
construction, reconstruction, maintenance, and repair of turnpike	2521
projects, except that the funds may not be expended for the	2522
construction of new interchanges. The funds also may be expended	2523
for the construction, reconstruction, maintenance, and repair of	2524
those portions of connecting public roads that serve existing	2525
interchanges and are determined by the commission and the director	2526
of transportation to be necessary for the safe merging of traffic	2527
between the turnpike and those public roads.	2528

The remainder of the balance shall be distributed as follows	2529
on the fifteenth day of the following month:	2530

(a) Ten and seven-tenths per cent shall be paid to municipal	2531
corporations for distribution pursuant to division (A)(1) of	2532
section 5735.27 of the Revised Code and may be used for any	2533
purpose for which payments received under that division may be	2534
used. Through July 15, 2005, the sum of two hundred forty-eight	2535
thousand six hundred twenty-five dollars shall be monthly	2536
subtracted from the amount so computed and credited to the highway	2537
operating fund. Beginning August 15, 2005, the sum of seven	2538
hundred forty-five thousand eight hundred seventy-five dollars	2539
shall be monthly subtracted from the amount so computed and	2540
credited to the highway operating fund.	2541

(b) Five per cent shall be paid to townships for distribution	2542
pursuant to division (A)(5) of section 5735.27 of the Revised Code	2543
and may be used for any purpose for which payments received under	2544
that division may be used. Through July 15, 2005, the sum of	2545
eighty-seven thousand seven hundred fifty dollars shall be monthly	2546
subtracted from the amount so computed and credited to the highway	2547
operating fund. Beginning August 15, 2005, the sum of two hundred	2548
sixty-three thousand two hundred fifty dollars shall be monthly	2549
subtracted from the amount so computed and credited to the highway	2550
operating fund.	2551

(c) Nine and three-tenths per cent shall be paid to counties	2552
for distribution pursuant to division (A)(3) of section 5735.27 of	2553
the Revised Code and may be used for any purpose for which	2554
payments received under that division may be used. Through July	2555
15, 2005, the sum of two hundred forty-eight thousand six hundred	2556
twenty-five dollars shall be monthly subtracted from the amount so	2557
computed and credited to the highway operating fund. Beginning	2558
August 15, 2005, the sum of seven hundred forty-five thousand	2559
eight hundred seventy-five dollars shall be monthly subtracted	2560
from the amount so computed and credited to the highway operating	2561
fund.	2562

(d) Except as provided in division (D) of this section, the	2563
balance shall be transferred to the highway operating fund and	2564
used for the purposes set forth in division (B)(1) of section	2565
5735.27 of the Revised Code.	2566

(D) Monthly from September to February of each fiscal year,	2567
an amount equal to one-sixth of the amount certified in July of	2568
that year by the treasurer of state pursuant to division (Q) of	2569
section 151.01 of the Revised Code shall, from amounts required to	2570
be credited or transferred to the highway operating fund pursuant	2571
to division (B)(2)(c) or (C)(2)(d) of this section, be credited or	2572
transferred to the highway capital improvement bond service fund	2573
created in section 151.06 of the Revised Code. If, in any of those	2574
months, the amount available to be credited or transferred to the	2575
bond service fund is less than one-sixth of the amount so	2576
certified, the shortfall shall be added to the amount due the next	2577
succeeding month. Any amount still due at the end of the six-month	2578
period shall be credited or transferred as the money becomes	2579
available, until such time as the office of budget and management	2580
receives certification from the treasurer of state or the	2581
treasurer of state's designee that sufficient money has been	2582
credited or transferred to the bond service fund to meet in full	2583
all payments of debt service and financing costs due during the	2584
fiscal year from that fund.	2585

Sec. 5739.02. For the purpose of providing revenue with	2586
which to meet the needs of the state, for the use of the general	2587
revenue fund of the state, for the purpose of securing a thorough	2588
and efficient system of common schools throughout the state, for	2589
the purpose of affording revenues, in addition to those from	2590
general property taxes, permitted under constitutional	2591
limitations, and from other sources, for the support of local	2592
governmental functions, and for the purpose of reimbursing the	2593
state for the expense of administering this chapter, an excise tax	2594
is hereby levied on each retail sale made in this state.	2595

(A)(1) The tax shall be collected as provided in section	2596
5739.025 of the Revised Code. The rate of the tax shall be five	2597
and one-half per cent. The tax applies and is collectible when the	2598
sale is made, regardless of the time when the price is paid or	2599
delivered.	2600

(2) In the case of the lease or rental, with a fixed term of	2601
more than thirty days or an indefinite term with a minimum period	2602
of more than thirty days, of any motor vehicles designed by the	2603
manufacturer to carry a load of not more than one ton, watercraft,	2604
outboard motor, or aircraft, or of any tangible personal property,	2605
other than motor vehicles designed by the manufacturer to carry a	2606
load of more than one ton, to be used by the lessee or renter	2607
primarily for business purposes, the tax shall be collected by the	2608
vendor at the time the lease or rental is consummated and shall be	2609
calculated by the vendor on the basis of the total amount to be	2610
paid by the lessee or renter under the lease agreement. If the	2611
total amount of the consideration for the lease or rental includes	2612
amounts that are not calculated at the time the lease or rental is	2613
executed, the tax shall be calculated and collected by the vendor	2614
at the time such amounts are billed to the lessee or renter. In	2615
the case of an open-end lease or rental, the tax shall be	2616
calculated by the vendor on the basis of the total amount to be	2617
paid during the initial fixed term of the lease or rental, and for	2618
each subsequent renewal period as it comes due. As used in this	2619
division, "motor vehicle" has the same meaning as in section	2620
4501.01 of the Revised Code, and "watercraft" includes an outdrive	2621
unit attached to the watercraft.	2622

A lease with a renewal clause and a termination penalty or	2623
similar provision that applies if the renewal clause is not	2624
exercised is presumed to be a sham transaction. In such a case,	2625
the tax shall be calculated and paid on the basis of the entire	2626
length of the lease period, including any renewal periods, until	2627
the termination penalty or similar provision no longer applies.	2628
The taxpayer shall bear the burden, by a preponderance of the	2629
evidence, that the transaction or series of transactions is not a	2630
sham transaction.	2631

(3) Except as provided in division (A)(2) of this section, in	2632
the case of a sale, the price of which consists in whole or in	2633
part of the lease or rental of tangible personal property, the tax	2634
shall be measured by the installments of that lease or rental.	2635

(4) In the case of a sale of a physical fitness facility	2636
service or recreation and sports club service, the price of which	2637
consists in whole or in part of a membership for the receipt of	2638
the benefit of the service, the tax applicable to the sale shall	2639
be measured by the installments thereof.	2640

(B) The tax does not apply to the following:

2641

(1) Sales to the state or any of its political subdivisions,	2642
or to any other state or its political subdivisions if the laws of	2643
that state exempt from taxation sales made to this state and its	2644
political subdivisions;	2645

(2) Sales of food for human consumption off the premises	2646
where sold;	2647

(3) Sales of food sold to students only in a cafeteria,	2648
dormitory, fraternity, or sorority maintained in a private,	2649
public, or parochial school, college, or university;	2650

(4) Sales of newspapers and of magazine subscriptions and	2651
sales or transfers of magazines distributed as controlled	2652
circulation publications;	2653

(5) The furnishing, preparing, or serving of meals without	2654
charge by an employer to an employee provided the employer records	2655
the meals as part compensation for services performed or work	2656
done;	2657

(6) Sales of motor fuel upon receipt, use, distribution, or	2658
sale of which in this state a tax is imposed by the law of this	2659
state, but this exemption shall not apply to the sale of motor	2660
fuel on which a refund of the tax is allowable under division (A)	2661
of section 5735.14 of the Revised Code; and the tax commissioner	2662
may deduct the amount of tax levied by this section applicable to	2663
the price of motor fuel when granting a refund of motor fuel tax	2664
pursuant to division (A) of section 5735.14 of the Revised Code	2665
and shall cause the amount deducted to be paid into the general	2666
revenue fund of this state;	2667

(7) Sales of natural gas by a natural gas company, of water	2668
by a water-works company, or of steam by a heating company, if in	2669
each case the thing sold is delivered to consumers through pipes	2670
or conduits, and all sales of communications services by a	2671
telegraph company, all terms as defined in section 5727.01 of the	2672
Revised Code, and sales of electricity delivered through wires;	2673

(8) Casual sales by a person, or auctioneer employed directly	2674
by the person to conduct such sales, except as to such sales of	2675
motor vehicles, watercraft or outboard motors required to be	2676
titled under section 1548.06 of the Revised Code, watercraft	2677
documented with the United States coast guard, snowmobiles, and	2678
all-purpose vehicles as defined in section 4519.01 of the Revised	2679
Code;	2680

(9)(a) Sales of services or tangible personal property, other	2681
than motor vehicles, mobile homes, and manufactured homes, by	2682
churches, organizations exempt from taxation under section	2683
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	2684
organizations operated exclusively for charitable purposes as	2685
defined in division (B)(12) of this section, provided that the	2686
number of days on which such tangible personal property or	2687
services, other than items never subject to the tax, are sold does	2688
not exceed six in any calendar year, except as otherwise provided	2689
in division (B)(9)(b) of this section. If the number of days on	2690
which such sales are made exceeds six in any calendar year, the	2691
church or organization shall be considered to be engaged in	2692
business and all subsequent sales by it shall be subject to the	2693
tax. In counting the number of days, all sales by groups within a	2694
church or within an organization shall be considered to be sales	2695
of that church or organization.	2696

(b) The limitation on the number of days on which tax-exempt	2697
sales may be made by a church or organization under division	2698
(B)(9)(a) of this section does not apply to sales made by student	2699
clubs and other groups of students of a primary or secondary	2700
school, or a parent-teacher association, booster group, or similar	2701
organization that raises money to support or fund curricular or	2702
extracurricular activities of a primary or secondary school.	2703

(c) Divisions (B)(9)(a) and (b) of this section do not apply	2704
to sales by a noncommercial educational radio or television	2705
broadcasting station.	2706

(10) Sales not within the taxing power of this state under	2707
the Constitution of the United States;	2708

(11) Except for transactions that are sales under division	2709
(B)(3)(r) of section 5739.01 of the Revised Code, the	2710
transportation of persons or property, unless the transportation	2711
is by a private investigation and security service;	2712

(12) Sales of tangible personal property or services to	2713
churches, to organizations exempt from taxation under section	2714
501(c)(3) of the Internal Revenue Code of 1986, and to any other	2715
nonprofit organizations operated exclusively for charitable	2716
purposes in this state, no part of the net income of which inures	2717
to the benefit of any private shareholder or individual, and no	2718
substantial part of the activities of which consists of carrying	2719
on propaganda or otherwise attempting to influence legislation;	2720
sales to offices administering one or more homes for the aged or	2721
one or more hospital facilities exempt under section 140.08 of the	2722
Revised Code; and sales to organizations described in division (D)	2723
of section 5709.12 of the Revised Code.	2724

"Charitable purposes" means the relief of poverty; the	2725
improvement of health through the alleviation of illness, disease,	2726
or injury; the operation of an organization exclusively for the	2727
provision of professional, laundry, printing, and purchasing	2728
services to hospitals or charitable institutions; the operation of	2729
a home for the aged, as defined in section 5701.13 of the Revised	2730
Code; the operation of a radio or television broadcasting station	2731
that is licensed by the federal communications commission as a	2732
noncommercial educational radio or television station; the	2733
operation of a nonprofit animal adoption service or a county	2734
humane society; the promotion of education by an institution of	2735
learning that maintains a faculty of qualified instructors,	2736
teaches regular continuous courses of study, and confers a	2737
recognized diploma upon completion of a specific curriculum; the	2738
operation of a parent-teacher association, booster group, or	2739
similar organization primarily engaged in the promotion and	2740
support of the curricular or extracurricular activities of a	2741
primary or secondary school; the operation of a community or area	2742
center in which presentations in music, dramatics, the arts, and	2743
related fields are made in order to foster public interest and	2744
education therein; the production of performances in music,	2745
dramatics, and the arts; or the promotion of education by an	2746
organization engaged in carrying on research in, or the	2747
dissemination of, scientific and technological knowledge and	2748
information primarily for the public.	2749

Nothing in this division shall be deemed to exempt sales to	2750
any organization for use in the operation or carrying on of a	2751
trade or business, or sales to a home for the aged for use in the	2752
operation of independent living facilities as defined in division	2753
(A) of section 5709.12 of the Revised Code.	2754

(13) Building and construction materials and services sold to	2755
construction contractors for incorporation into a structure or	2756
improvement to real property under a construction contract with	2757
this state or a political subdivision of this state, or with the	2758
United States government or any of its agencies; building and	2759
construction materials and services sold to construction	2760
contractors for incorporation into a structure or improvement to	2761
real property that are accepted for ownership by this state or any	2762
of its political subdivisions, or by the United States government	2763
or any of its agencies at the time of completion of the structures	2764
or improvements; building and construction materials sold to	2765
construction contractors for incorporation into a horticulture	2766
structure or livestock structure for a person engaged in the	2767
business of horticulture or producing livestock; building	2768
materials and services sold to a construction contractor for	2769
incorporation into a house of public worship or religious	2770
education, or a building used exclusively for charitable purposes	2771
under a construction contract with an organization whose purpose	2772
is as described in division (B)(12) of this section; building	2773
materials and services sold to a construction contractor for	2774
incorporation into a building under a construction contract with	2775
an organization exempt from taxation under section 501(c)(3) of	2776
the Internal Revenue Code of 1986 when the building is to be used	2777
exclusively for the organization's exempt purposes; building and	2778
construction materials sold for incorporation into the original	2779
construction of a sports facility under section 307.696 of the	2780
Revised Code; building and construction materials and services	2781
sold to a construction contractor for incorporation into real	2782
property outside this state if such materials and services, when	2783
sold to a construction contractor in the state in which the real	2784
property is located for incorporation into real property in that	2785
state, would be exempt from a tax on sales levied by that state;	2786
and, until one calendar year after the construction of a	2787
convention center that qualifies for property tax exemption under	2788
section 5709.084 of the Revised Code is completed, building and	2789
construction materials and services sold to a construction	2790
contractor for incorporation into the real property comprising	2791
that convention center;	2792

(14) Sales of ships or vessels or rail rolling stock used or	2793
to be used principally in interstate or foreign commerce, and	2794
repairs, alterations, fuel, and lubricants for such ships or	2795
vessels or rail rolling stock;	2796

(15) Sales to persons primarily engaged in any of the	2797
activities mentioned in division (B)(42)(a), (g), or (h) of this	2798
section, to persons engaged in making retail sales, or to persons	2799
who purchase for sale from a manufacturer tangible personal	2800
property that was produced by the manufacturer in accordance with	2801
specific designs provided by the purchaser, of packages, including	2802
material, labels, and parts for packages, and of machinery,	2803
equipment, and material for use primarily in packaging tangible	2804
personal property produced for sale, including any machinery,	2805
equipment, and supplies used to make labels or packages, to	2806
prepare packages or products for labeling, or to label packages or	2807
products, by or on the order of the person doing the packaging, or	2808
sold at retail. "Packages" includes bags, baskets, cartons,	2809
crates, boxes, cans, bottles, bindings, wrappings, and other	2810
similar devices and containers, but does not include motor	2811
vehicles or bulk tanks, trailers, or similar devices attached to	2812
motor vehicles. "Packaging" means placing in a package. Division	2813
(B)(15) of this section does not apply to persons engaged in	2814
highway transportation for hire.	2815

(16) Sales of food to persons using supplemental nutrition	2816
assistance program benefits to purchase the food. As used in this	2817
division, "food" has the same meaning as in 7 U.S.C. 2012 and	2818
federal regulations adopted pursuant to the Food and Nutrition Act	2819
of 2008.	2820

(17) Sales to persons engaged in farming, agriculture,	2821
horticulture, or floriculture, of tangible personal property for	2822
use or consumption primarily in the production by farming,	2823
agriculture, horticulture, or floriculture of other tangible	2824
personal property for use or consumption primarily in the	2825
production of tangible personal property for sale by farming,	2826
agriculture, horticulture, or floriculture; or material and parts	2827
for incorporation into any such tangible personal property for use	2828
or consumption in production; and of tangible personal property	2829
for such use or consumption in the conditioning or holding of	2830
products produced by and for such use, consumption, or sale by	2831
persons engaged in farming, agriculture, horticulture, or	2832
floriculture, except where such property is incorporated into real	2833
property;	2834

(18) Sales of drugs for a human being that may be dispensed	2835
only pursuant to a prescription; insulin as recognized in the	2836
official United States pharmacopoeia; urine and blood testing	2837
materials when used by diabetics or persons with hypoglycemia to	2838
test for glucose or acetone; hypodermic syringes and needles when	2839
used by diabetics for insulin injections; epoetin alfa when	2840
purchased for use in the treatment of persons with medical	2841
disease; hospital beds when purchased by hospitals, nursing homes,	2842
or other medical facilities; and medical oxygen and medical	2843
oxygen-dispensing equipment when purchased by hospitals, nursing	2844
homes, or other medical facilities;	2845

(19) Sales of prosthetic devices, durable medical equipment	2846
for home use, or mobility enhancing equipment, when made pursuant	2847
to a prescription and when such devices or equipment are for use	2848
by a human being.	2849

(20) Sales of emergency and fire protection vehicles and	2850
equipment to nonprofit organizations for use solely in providing	2851
fire protection and emergency services, including trauma care and	2852
emergency medical services, for political subdivisions of the	2853
state;	2854

(21) Sales of tangible personal property manufactured in this	2855
state, if sold by the manufacturer in this state to a retailer for	2856
use in the retail business of the retailer outside of this state	2857
and if possession is taken from the manufacturer by the purchaser	2858
within this state for the sole purpose of immediately removing the	2859
same from this state in a vehicle owned by the purchaser;	2860

(22) Sales of services provided by the state or any of its	2861
political subdivisions, agencies, instrumentalities, institutions,	2862
or authorities, or by governmental entities of the state or any of	2863
its political subdivisions, agencies, instrumentalities,	2864
institutions, or authorities;	2865

(23) Sales of motor vehicles to nonresidents of this state	2866
under the circumstances described in division (B) of section	2867
5739.029 of the Revised Code;	2868

(24) Sales to persons engaged in the preparation of eggs for	2869
sale of tangible personal property used or consumed directly in	2870
such preparation, including such tangible personal property used	2871
for cleaning, sanitizing, preserving, grading, sorting, and	2872
classifying by size; packages, including material and parts for	2873
packages, and machinery, equipment, and material for use in	2874
packaging eggs for sale; and handling and transportation equipment	2875
and parts therefor, except motor vehicles licensed to operate on	2876
public highways, used in intraplant or interplant transfers or	2877
shipment of eggs in the process of preparation for sale, when the	2878
plant or plants within or between which such transfers or	2879
shipments occur are operated by the same person. "Packages"	2880
includes containers, cases, baskets, flats, fillers, filler flats,	2881
cartons, closure materials, labels, and labeling materials, and	2882
"packaging" means placing therein.	2883

(25)(a) Sales of water to a consumer for residential use;

2884

(b) Sales of water by a nonprofit corporation engaged	2885
exclusively in the treatment, distribution, and sale of water to	2886
consumers, if such water is delivered to consumers through pipes	2887
or tubing.	2888

(26) Fees charged for inspection or reinspection of motor	2889
vehicles under section 3704.14 of the Revised Code;	2890

(27) Sales to persons licensed to conduct a food service	2891
operation pursuant to section 3717.43 of the Revised Code, of	2892
tangible personal property primarily used directly for the	2893
following:	2894

(a) To prepare food for human consumption for sale;

2895

(b) To preserve food that has been or will be prepared for	2896
human consumption for sale by the food service operator, not	2897
including tangible personal property used to display food for	2898
selection by the consumer;	2899

(c) To clean tangible personal property used to prepare or	2900
serve food for human consumption for sale.	2901

(28) Sales of animals by nonprofit animal adoption services	2902
or county humane societies;	2903

(29) Sales of services to a corporation described in division	2904
(A) of section 5709.72 of the Revised Code, and sales of tangible	2905
personal property that qualifies for exemption from taxation under	2906
section 5709.72 of the Revised Code;	2907

(30) Sales and installation of agricultural land tile, as	2908
defined in division (B)(5)(a) of section 5739.01 of the Revised	2909
Code;	2910

(31) Sales and erection or installation of portable grain	2911
bins, as defined in division (B)(5)(b) of section 5739.01 of the	2912
Revised Code;	2913

(32) The sale, lease, repair, and maintenance of, parts for,	2914
or items attached to or incorporated in, motor vehicles that are	2915
primarily used for transporting tangible personal property	2916
belonging to others by a person engaged in highway transportation	2917
for hire, except for packages and packaging used for the	2918
transportation of tangible personal property;	2919

(33) Sales to the state headquarters of any veterans'	2920
organization in this state that is either incorporated and issued	2921
a charter by the congress of the United States or is recognized by	2922
the United States veterans administration, for use by the	2923
headquarters;	2924

(34) Sales to a telecommunications service vendor, mobile	2925
telecommunications service vendor, or satellite broadcasting	2926
service vendor of tangible personal property and services used	2927
directly and primarily in transmitting, receiving, switching, or	2928
recording any interactive, one- or two-way electromagnetic	2929
communications, including voice, image, data, and information,	2930
through the use of any medium, including, but not limited to,	2931
poles, wires, cables, switching equipment, computers, and record	2932
storage devices and media, and component parts for the tangible	2933
personal property. The exemption provided in this division shall	2934
be in lieu of all other exemptions under division (B)(42)(a) or	2935
(n) of this section to which the vendor may otherwise be entitled,	2936
based upon the use of the thing purchased in providing the	2937
telecommunications, mobile telecommunications, or satellite	2938
broadcasting service.	2939

(35)(a) Sales where the purpose of the consumer is to use or	2940
consume the things transferred in making retail sales and	2941
consisting of newspaper inserts, catalogues, coupons, flyers, gift	2942
certificates, or other advertising material that prices and	2943
describes tangible personal property offered for retail sale.	2944

(b) Sales to direct marketing vendors of preliminary	2945
materials such as photographs, artwork, and typesetting that will	2946
be used in printing advertising material; and of printed matter	2947
that offers free merchandise or chances to win sweepstake prizes	2948
and that is mailed to potential customers with advertising	2949
material described in division (B)(35)(a) of this section;	2950

(c) Sales of equipment such as telephones, computers,	2951
facsimile machines, and similar tangible personal property	2952
primarily used to accept orders for direct marketing retail sales.	2953

(d) Sales of automatic food vending machines that preserve	2954
food with a shelf life of forty-five days or less by refrigeration	2955
and dispense it to the consumer.	2956

For purposes of division (B)(35) of this section, "direct	2957
marketing" means the method of selling where consumers order	2958
tangible personal property by United States mail, delivery	2959
service, or telecommunication and the vendor delivers or ships the	2960
tangible personal property sold to the consumer from a warehouse,	2961
catalogue distribution center, or similar fulfillment facility by	2962
means of the United States mail, delivery service, or common	2963
carrier.	2964

(36) Sales to a person engaged in the business of	2965
horticulture or producing livestock of materials to be	2966
incorporated into a horticulture structure or livestock structure;	2967

(37) Sales of personal computers, computer monitors, computer	2968
keyboards, modems, and other peripheral computer equipment to an	2969
individual who is licensed or certified to teach in an elementary	2970
or a secondary school in this state for use by that individual in	2971
preparation for teaching elementary or secondary school students;	2972

(38) Sales to a professional racing team of any of the	2973
following:	2974

(a) Motor racing vehicles;

2975

(b) Repair services for motor racing vehicles;

2976

(c) Items of property that are attached to or incorporated in	2977
motor racing vehicles, including engines, chassis, and all other	2978
components of the vehicles, and all spare, replacement, and	2979
rebuilt parts or components of the vehicles; except not including	2980
tires, consumable fluids, paint, and accessories consisting of	2981
instrumentation sensors and related items added to the vehicle to	2982
collect and transmit data by means of telemetry and other forms of	2983
communication.	2984

(39) Sales of used manufactured homes and used mobile homes,	2985
as defined in section 5739.0210 of the Revised Code, made on or	2986
after January 1, 2000;	2987

(40) Sales of tangible personal property and services to a	2988
provider of electricity used or consumed directly and primarily in	2989
generating, transmitting, or distributing electricity for use by	2990
others, including property that is or is to be incorporated into	2991
and will become a part of the consumer's production, transmission,	2992
or distribution system and that retains its classification as	2993
tangible personal property after incorporation; fuel or power used	2994
in the production, transmission, or distribution of electricity;	2995
energy conversion equipment as defined in section 5727.01 of the	2996
Revised Code; and tangible personal property and services used in	2997
the repair and maintenance of the production, transmission, or	2998
distribution system, including only those motor vehicles as are	2999
specially designed and equipped for such use. The exemption	3000
provided in this division shall be in lieu of all other exemptions	3001
in division (B)(42)(a) or (n) of this section to which a provider	3002
of electricity may otherwise be entitled based on the use of the	3003
tangible personal property or service purchased in generating,	3004
transmitting, or distributing electricity.	3005

(41) Sales to a person providing services under division	3006
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	3007
personal property and services used directly and primarily in	3008
providing taxable services under that section.	3009

(42) Sales where the purpose of the purchaser is to do any of	3010
the following:	3011

(a) To incorporate the thing transferred as a material or a	3012
part into tangible personal property to be produced for sale by	3013
manufacturing, assembling, processing, or refining; or to use or	3014
consume the thing transferred directly in producing tangible	3015
personal property for sale by mining, including, without	3016
limitation, the extraction from the earth of all substances that	3017
are classed geologically as minerals, production of crude oil and	3018
natural gas, or directly in the rendition of a public utility	3019
service, except that the sales tax levied by this section shall be	3020
collected upon all meals, drinks, and food for human consumption	3021
sold when transporting persons. Persons engaged in rendering	3022
services in the exploration for, and production of, crude oil and	3023
natural gas for others are deemed engaged directly in the	3024
exploration for, and production of, crude oil and natural gas.	3025
This paragraph does not exempt from "retail sale" or "sales at	3026
retail" the sale of tangible personal property that is to be	3027
incorporated into a structure or improvement to real property.	3028

(b) To hold the thing transferred as security for the	3029
performance of an obligation of the vendor;	3030

(c) To resell, hold, use, or consume the thing transferred as	3031
evidence of a contract of insurance;	3032

(d) To use or consume the thing directly in commercial	3033
fishing;	3034

(e) To incorporate the thing transferred as a material or a	3035
part into, or to use or consume the thing transferred directly in	3036
the production of, magazines distributed as controlled circulation	3037
publications;	3038

(f) To use or consume the thing transferred in the production	3039
and preparation in suitable condition for market and sale of	3040
printed, imprinted, overprinted, lithographic, multilithic,	3041
blueprinted, photostatic, or other productions or reproductions of	3042
written or graphic matter;	3043

(g) To use the thing transferred, as described in section	3044
5739.011 of the Revised Code, primarily in a manufacturing	3045
operation to produce tangible personal property for sale;	3046

(h) To use the benefit of a warranty, maintenance or service	3047
contract, or similar agreement, as described in division (B)(7) of	3048
section 5739.01 of the Revised Code, to repair or maintain	3049
tangible personal property, if all of the property that is the	3050
subject of the warranty, contract, or agreement would not be	3051
subject to the tax imposed by this section;	3052

(i) To use the thing transferred as qualified research and	3053
development equipment;	3054

(j) To use or consume the thing transferred primarily in	3055
storing, transporting, mailing, or otherwise handling purchased	3056
sales inventory in a warehouse, distribution center, or similar	3057
facility when the inventory is primarily distributed outside this	3058
state to retail stores of the person who owns or controls the	3059
warehouse, distribution center, or similar facility, to retail	3060
stores of an affiliated group of which that person is a member, or	3061
by means of direct marketing. This division does not apply to	3062
motor vehicles registered for operation on the public highways. As	3063
used in this division, "affiliated group" has the same meaning as	3064
in division (B)(3)(e) of section 5739.01 of the Revised Code and	3065
"direct marketing" has the same meaning as in division (B)(35) of	3066
this section.	3067

(k) To use or consume the thing transferred to fulfill a	3068
contractual obligation incurred by a warrantor pursuant to a	3069
warranty provided as a part of the price of the tangible personal	3070
property sold or by a vendor of a warranty, maintenance or service	3071
contract, or similar agreement the provision of which is defined	3072
as a sale under division (B)(7) of section 5739.01 of the Revised	3073
Code;	3074

(l) To use or consume the thing transferred in the production	3075
of a newspaper for distribution to the public;	3076

(m) To use tangible personal property to perform a service	3077
listed in division (B)(3) of section 5739.01 of the Revised Code,	3078
if the property is or is to be permanently transferred to the	3079
consumer of the service as an integral part of the performance of	3080
the service;	3081

(n) To use or consume the thing transferred primarily in	3082
producing tangible personal property for sale by farming,	3083
agriculture, horticulture, or floriculture. Persons engaged in	3084
rendering farming, agriculture, horticulture, or floriculture	3085
services for others are deemed engaged primarily in farming,	3086
agriculture, horticulture, or floriculture. This paragraph does	3087
not exempt from "retail sale" or "sales at retail" the sale of	3088
tangible personal property that is to be incorporated into a	3089
structure or improvement to real property.	3090

(o) To use or consume the thing transferred in acquiring,	3091
formatting, editing, storing, and disseminating data or	3092
information by electronic publishing.	3093

As used in division (B)(42) of this section, "thing" includes	3094
all transactions included in divisions (B)(3)(a), (b), and (e) of	3095
section 5739.01 of the Revised Code.	3096

(43) Sales conducted through a coin operated device that	3097
activates vacuum equipment or equipment that dispenses water,	3098
whether or not in combination with soap or other cleaning agents	3099
or wax, to the consumer for the consumer's use on the premises in	3100
washing, cleaning, or waxing a motor vehicle, provided no other	3101
personal property or personal service is provided as part of the	3102
transaction.	3103

(44) Sales of replacement and modification parts for engines,	3104
airframes, instruments, and interiors in, and paint for, aircraft	3105
used primarily in a fractional aircraft ownership program, and	3106
sales of services for the repair, modification, and maintenance of	3107
such aircraft, and machinery, equipment, and supplies primarily	3108
used to provide those services.	3109

(45) Sales of telecommunications service that is used	3110
directly and primarily to perform the functions of a call center.	3111
As used in this division, "call center" means any physical	3112
location where telephone calls are placed or received in high	3113
volume for the purpose of making sales, marketing, customer	3114
service, technical support, or other specialized business	3115
activity, and that employs at least fifty individuals that engage	3116
in call center activities on a full-time basis, or sufficient	3117
individuals to fill fifty full-time equivalent positions.	3118

(46) Sales by a telecommunications service vendor of 900	3119
service to a subscriber. This division does not apply to	3120
information services, as defined in division (FF) of section	3121
5739.01 of the Revised Code.	3122

(47) Sales of value-added non-voice data service. This	3123
division does not apply to any similar service that is not	3124
otherwise a telecommunications service.	3125

(48)(a) Sales of machinery, equipment, and software to a	3126
qualified direct selling entity for use in a warehouse or	3127
distribution center primarily for storing, transporting, or	3128
otherwise handling inventory that is held for sale to independent	3129
salespersons who operate as direct sellers and that is held	3130
primarily for distribution outside this state;	3131

(b) As used in division (B)(48)(a) of this section:

3132

(i) "Direct seller" means a person selling consumer products	3133
to individuals for personal or household use and not from a fixed	3134
retail location, including selling such product at in-home product	3135
demonstrations, parties, and other one-on-one selling.	3136

(ii) "Qualified direct selling entity" means an entity	3137
selling to direct sellers at the time the entity enters into a tax	3138
credit agreement with the tax credit authority pursuant to section	3139
122.17 of the Revised Code, provided that the agreement was	3140
entered into on or after January 1, 2007. Neither contingencies	3141
relevant to the granting of, nor later developments with respect	3142
to, the tax credit shall impair the status of the qualified direct	3143
selling entity under division (B)(48) of this section after	3144
execution of the tax credit agreement by the tax credit authority.	3145

(c) Division (B)(48) of this section is limited to machinery,	3146
equipment, and software first stored, used, or consumed in this	3147
state within the period commencing June 24, 2008, and ending on	3148
the date that is five years after that date.	3149

(49) Sales of materials, parts, equipment, or engines used in	3150
the repair or maintenance of aircraft or avionics systems of such	3151
aircraft, and sales of repair, remodeling, replacement, or	3152
maintenance services in this state performed on aircraft or on an	3153
aircraft's avionics, engine, or component materials or parts. As	3154
used in division (B)(49) of this section, "aircraft" means	3155
aircraft of more than six thousand pounds maximum certified	3156
takeoff weight or used exclusively in general aviation.	3157

(50) Sales of full flight simulators that are used for pilot	3158
or flight-crew training, sales of repair or replacement parts or	3159
components, and sales of repair or maintenance services for such	3160
full flight simulators. "Full flight simulator" means a replica of	3161
a specific type, or make, model, and series of aircraft cockpit.	3162
It includes the assemblage of equipment and computer programs	3163
necessary to represent aircraft operations in ground and flight	3164
conditions, a visual system providing an out-of-the-cockpit view,	3165
and a system that provides cues at least equivalent to those of a	3166
three-degree-of-freedom motion system, and has the full range of	3167
capabilities of the systems installed in the device as described	3168
in appendices A and B of part 60 of chapter 1 of title 14 of the	3169
Code of Federal Regulations.	3170

(51) Any transfer or lease of tangible personal property	3171
~~between the state and a successful proposer in accordance with~~	3172
~~sections 126.60 to 126.605 of the Revised Code, provided the~~	3173
~~property is part of a project as defined in section 126.60 of the~~	3174
~~Revised Code and the state retains ownership of the project or~~	3175
~~part thereof that is being transferred or leased,~~ between the	3176
state and JobsOhio in accordance with section 4313.02 of the	3177
Revised Code.	3178

(C) For the purpose of the proper administration of this	3179
chapter, and to prevent the evasion of the tax, it is presumed	3180
that all sales made in this state are subject to the tax until the	3181
contrary is established.	3182

(D) The levy of this tax on retail sales of recreation and	3183
sports club service shall not prevent a municipal corporation from	3184
levying any tax on recreation and sports club dues or on any	3185
income generated by recreation and sports club dues.	3186

(E) The tax collected by the vendor from the consumer under	3187
this chapter is not part of the price, but is a tax collection for	3188
the benefit of the state, and of counties levying an additional	3189
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	3190
Code and of transit authorities levying an additional sales tax	3191
pursuant to section 5739.023 of the Revised Code. Except for the	3192
discount authorized under section 5739.12 of the Revised Code and	3193
the effects of any rounding pursuant to section 5703.055 of the	3194
Revised Code, no person other than the state or such a county or	3195
transit authority shall derive any benefit from the collection or	3196
payment of the tax levied by this section or section 5739.021,	3197
5739.023, or 5739.026 of the Revised Code.	3198

Sec. 5747.01. Except as otherwise expressly provided or	3199
clearly appearing from the context, any term used in this chapter	3200
that is not otherwise defined in this section has the same meaning	3201
as when used in a comparable context in the laws of the United	3202
States relating to federal income taxes or if not used in a	3203
comparable context in those laws, has the same meaning as in	3204
section 5733.40 of the Revised Code. Any reference in this chapter	3205
to the Internal Revenue Code includes other laws of the United	3206
States relating to federal income taxes.	3207

As used in this chapter:

3208

(A) "Adjusted gross income" or "Ohio adjusted gross income"	3209
means federal adjusted gross income, as defined and used in the	3210
Internal Revenue Code, adjusted as provided in this section:	3211

(1) Add interest or dividends on obligations or securities of	3212
any state or of any political subdivision or authority of any	3213
state, other than this state and its subdivisions and authorities.	3214

(2) Add interest or dividends on obligations of any	3215
authority, commission, instrumentality, territory, or possession	3216
of the United States to the extent that the interest or dividends	3217
are exempt from federal income taxes but not from state income	3218
taxes.	3219

(3) Deduct interest or dividends on obligations of the United	3220
States and its territories and possessions or of any authority,	3221
commission, or instrumentality of the United States to the extent	3222
that the interest or dividends are included in federal adjusted	3223
gross income but exempt from state income taxes under the laws of	3224
the United States.	3225

(4) Deduct disability and survivor's benefits to the extent	3226
included in federal adjusted gross income.	3227

(5) Deduct benefits under Title II of the Social Security Act	3228
and tier 1 railroad retirement benefits to the extent included in	3229
federal adjusted gross income under section 86 of the Internal	3230
Revenue Code.	3231

(6) In the case of a taxpayer who is a beneficiary of a trust	3232
that makes an accumulation distribution as defined in section 665	3233
of the Internal Revenue Code, add, for the beneficiary's taxable	3234
years beginning before 2002, the portion, if any, of such	3235
distribution that does not exceed the undistributed net income of	3236
the trust for the three taxable years preceding the taxable year	3237
in which the distribution is made to the extent that the portion	3238
was not included in the trust's taxable income for any of the	3239
trust's taxable years beginning in 2002 or thereafter.	3240
"Undistributed net income of a trust" means the taxable income of	3241
the trust increased by (a)(i) the additions to adjusted gross	3242
income required under division (A) of this section and (ii) the	3243
personal exemptions allowed to the trust pursuant to section	3244
642(b) of the Internal Revenue Code, and decreased by (b)(i) the	3245
deductions to adjusted gross income required under division (A) of	3246
this section, (ii) the amount of federal income taxes attributable	3247
to such income, and (iii) the amount of taxable income that has	3248
been included in the adjusted gross income of a beneficiary by	3249
reason of a prior accumulation distribution. Any undistributed net	3250
income included in the adjusted gross income of a beneficiary	3251
shall reduce the undistributed net income of the trust commencing	3252
with the earliest years of the accumulation period.	3253

(7) Deduct the amount of wages and salaries, if any, not	3254
otherwise allowable as a deduction but that would have been	3255
allowable as a deduction in computing federal adjusted gross	3256
income for the taxable year, had the targeted jobs credit allowed	3257
and determined under sections 38, 51, and 52 of the Internal	3258
Revenue Code not been in effect.	3259

(8) Deduct any interest or interest equivalent on public	3260
obligations and purchase obligations to the extent that the	3261
interest or interest equivalent is included in federal adjusted	3262
gross income.	3263

(9) Add any loss or deduct any gain resulting from the sale,	3264
exchange, or other disposition of public obligations to the extent	3265
that the loss has been deducted or the gain has been included in	3266
computing federal adjusted gross income.	3267

(10) Deduct or add amounts, as provided under section 5747.70	3268
of the Revised Code, related to contributions to variable college	3269
savings program accounts made or tuition units purchased pursuant	3270
to Chapter 3334. of the Revised Code.	3271

(11)(a) Deduct, to the extent not otherwise allowable as a	3272
deduction or exclusion in computing federal or Ohio adjusted gross	3273
income for the taxable year, the amount the taxpayer paid during	3274
the taxable year for medical care insurance and qualified	3275
long-term care insurance for the taxpayer, the taxpayer's spouse,	3276
and dependents. No deduction for medical care insurance under	3277
division (A)(11) of this section shall be allowed either to any	3278
taxpayer who is eligible to participate in any subsidized health	3279
plan maintained by any employer of the taxpayer or of the	3280
taxpayer's spouse, or to any taxpayer who is entitled to, or on	3281
application would be entitled to, benefits under part A of Title	3282
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	3283
301, as amended. For the purposes of division (A)(11)(a) of this	3284
section, "subsidized health plan" means a health plan for which	3285
the employer pays any portion of the plan's cost. The deduction	3286
allowed under division (A)(11)(a) of this section shall be the net	3287
of any related premium refunds, related premium reimbursements, or	3288
related insurance premium dividends received during the taxable	3289
year.	3290

(b) Deduct, to the extent not otherwise deducted or excluded	3291
in computing federal or Ohio adjusted gross income during the	3292
taxable year, the amount the taxpayer paid during the taxable	3293
year, not compensated for by any insurance or otherwise, for	3294
medical care of the taxpayer, the taxpayer's spouse, and	3295
dependents, to the extent the expenses exceed seven and one-half	3296
per cent of the taxpayer's federal adjusted gross income.	3297

(c) Deduct, to the extent not otherwise deducted or excluded	3298
in computing federal or Ohio adjusted gross income, any amount	3299
included in federal adjusted gross income under section 105 or not	3300
excluded under section 106 of the Internal Revenue Code solely	3301
because it relates to an accident and health plan for a person who	3302
otherwise would be a "qualifying relative" and thus a "dependent"	3303
under section 152 of the Internal Revenue Code but for the fact	3304
that the person fails to meet the income and support limitations	3305
under section 152(d)(1)(B) and (C) of the Internal Revenue Code.	3306

(d) For purposes of division (A)(11) of this section,	3307
"medical care" has the meaning given in section 213 of the	3308
Internal Revenue Code, subject to the special rules, limitations,	3309
and exclusions set forth therein, and "qualified long-term care"	3310
has the same meaning given in section 7702B(c) of the Internal	3311
Revenue Code. Solely for purposes of divisions (A)(11)(a) and (c)	3312
of this section, "dependent" includes a person who otherwise would	3313
be a "qualifying relative" and thus a "dependent" under section	3314
152 of the Internal Revenue Code but for the fact that the person	3315
fails to meet the income and support limitations under section	3316
152(d)(1)(B) and (C) of the Internal Revenue Code.	3317

(12)(a) Deduct any amount included in federal adjusted gross	3318
income solely because the amount represents a reimbursement or	3319
refund of expenses that in any year the taxpayer had deducted as	3320
an itemized deduction pursuant to section 63 of the Internal	3321
Revenue Code and applicable United States department of the	3322
treasury regulations. The deduction otherwise allowed under	3323
division (A)(12)(a) of this section shall be reduced to the extent	3324
the reimbursement is attributable to an amount the taxpayer	3325
deducted under this section in any taxable year.	3326

(b) Add any amount not otherwise included in Ohio adjusted	3327
gross income for any taxable year to the extent that the amount is	3328
attributable to the recovery during the taxable year of any amount	3329
deducted or excluded in computing federal or Ohio adjusted gross	3330
income in any taxable year.	3331

(13) Deduct any portion of the deduction described in section	3332
1341(a)(2) of the Internal Revenue Code, for repaying previously	3333
reported income received under a claim of right, that meets both	3334
of the following requirements:	3335

(a) It is allowable for repayment of an item that was	3336
included in the taxpayer's adjusted gross income for a prior	3337
taxable year and did not qualify for a credit under division (A)	3338
or (B) of section 5747.05 of the Revised Code for that year;	3339

(b) It does not otherwise reduce the taxpayer's adjusted	3340
gross income for the current or any other taxable year.	3341

(14) Deduct an amount equal to the deposits made to, and net	3342
investment earnings of, a medical savings account during the	3343
taxable year, in accordance with section 3924.66 of the Revised	3344
Code. The deduction allowed by division (A)(14) of this section	3345
does not apply to medical savings account deposits and earnings	3346
otherwise deducted or excluded for the current or any other	3347
taxable year from the taxpayer's federal adjusted gross income.	3348

(15)(a) Add an amount equal to the funds withdrawn from a	3349
medical savings account during the taxable year, and the net	3350
investment earnings on those funds, when the funds withdrawn were	3351
used for any purpose other than to reimburse an account holder	3352
for, or to pay, eligible medical expenses, in accordance with	3353
section 3924.66 of the Revised Code;	3354

(b) Add the amounts distributed from a medical savings	3355
account under division (A)(2) of section 3924.68 of the Revised	3356
Code during the taxable year.	3357

(16) Add any amount claimed as a credit under section	3358
5747.059 or 5747.65 of the Revised Code to the extent that such	3359
amount satisfies either of the following:	3360

(a) The amount was deducted or excluded from the computation	3361
of the taxpayer's federal adjusted gross income as required to be	3362
reported for the taxpayer's taxable year under the Internal	3363
Revenue Code;	3364

(b) The amount resulted in a reduction of the taxpayer's	3365
federal adjusted gross income as required to be reported for any	3366
of the taxpayer's taxable years under the Internal Revenue Code.	3367

(17) Deduct the amount contributed by the taxpayer to an	3368
individual development account program established by a county	3369
department of job and family services pursuant to sections 329.11	3370
to 329.14 of the Revised Code for the purpose of matching funds	3371
deposited by program participants. On request of the tax	3372
commissioner, the taxpayer shall provide any information that, in	3373
the tax commissioner's opinion, is necessary to establish the	3374
amount deducted under division (A)(17) of this section.	3375

(18) Beginning in taxable year 2001 but not for any taxable	3376
year beginning after December 31, 2005, if the taxpayer is married	3377
and files a joint return and the combined federal adjusted gross	3378
income of the taxpayer and the taxpayer's spouse for the taxable	3379
year does not exceed one hundred thousand dollars, or if the	3380
taxpayer is single and has a federal adjusted gross income for the	3381
taxable year not exceeding fifty thousand dollars, deduct amounts	3382
paid during the taxable year for qualified tuition and fees paid	3383
to an eligible institution for the taxpayer, the taxpayer's	3384
spouse, or any dependent of the taxpayer, who is a resident of	3385
this state and is enrolled in or attending a program that	3386
culminates in a degree or diploma at an eligible institution. The	3387
deduction may be claimed only to the extent that qualified tuition	3388
and fees are not otherwise deducted or excluded for any taxable	3389
year from federal or Ohio adjusted gross income. The deduction may	3390
not be claimed for educational expenses for which the taxpayer	3391
claims a credit under section 5747.27 of the Revised Code.	3392

(19) Add any reimbursement received during the taxable year	3393
of any amount the taxpayer deducted under division (A)(18) of this	3394
section in any previous taxable year to the extent the amount is	3395
not otherwise included in Ohio adjusted gross income.	3396

(20)(a)(i) Subject to divisions (A)(20)(a)(iii), (iv), and	3397
(v) of this section, add five-sixths of the amount of depreciation	3398
expense allowed by subsection (k) of section 168 of the Internal	3399
Revenue Code, including the taxpayer's proportionate or	3400
distributive share of the amount of depreciation expense allowed	3401
by that subsection to a pass-through entity in which the taxpayer	3402
has a direct or indirect ownership interest.	3403

(ii) Subject to divisions (A)(20)(a)(iii), (iv), and (v) of	3404
this section, add five-sixths of the amount of qualifying section	3405
179 depreciation expense, including the taxpayer's proportionate	3406
or distributive share of the amount of qualifying section 179	3407
depreciation expense allowed to any pass-through entity in which	3408
the taxpayer has a direct or indirect ownership interest.	3409

(iii) Subject to division (A)(20)(a)(v) of this section, for	3410
taxable years beginning in 2012 or thereafter, if the increase in	3411
income taxes withheld by the taxpayer is equal to or greater than	3412
ten per cent of income taxes withheld by the taxpayer during the	3413
taxpayer's immediately preceding taxable year, "two-thirds" shall	3414
be substituted for "five-sixths" for the purpose of divisions	3415
(A)(20)(a)(i) and (ii) of this section.	3416

(iv) Subject to division (A)(20)(a)(v) of this section, for	3417
taxable years beginning in 2012 or thereafter, a taxpayer is not	3418
required to add an amount under division (A)(20) of this section	3419
if the increase in income taxes withheld by the taxpayer and by	3420
any pass-through entity in which the taxpayer has a direct or	3421
indirect ownership interest is equal to or greater than the sum of	3422
(I) the amount of qualifying section 179 depreciation expense and	3423
(II) the amount of depreciation expense allowed to the taxpayer by	3424
subsection (k) of section 168 of the Internal Revenue Code, and	3425
including the taxpayer's proportionate or distributive shares of	3426
such amounts allowed to any such pass-through entities.	3427

(v) If a taxpayer directly or indirectly incurs a net	3428
operating loss for the taxable year for federal income tax	3429
purposes, to the extent such loss resulted from depreciation	3430
expense allowed by subsection (k) of section 168 of the Internal	3431
Revenue Code and by qualifying section 179 depreciation expense,	3432
"the entire" shall be substituted for "five-sixths of the" for the	3433
purpose of divisions (A)(20)(a)(i) and (ii) of this section.	3434

The tax commissioner, under procedures established by the	3435
commissioner, may waive the add-backs related to a pass-through	3436
entity if the taxpayer owns, directly or indirectly, less than	3437
five per cent of the pass-through entity.	3438

(b) Nothing in division (A)(20) of this section shall be	3439
construed to adjust or modify the adjusted basis of any asset.	3440

(c) To the extent the add-back required under division	3441
(A)(20)(a) of this section is attributable to property generating	3442
nonbusiness income or loss allocated under section 5747.20 of the	3443
Revised Code, the add-back shall be sitused to the same location	3444
as the nonbusiness income or loss generated by the property for	3445
the purpose of determining the credit under division (A) of	3446
section 5747.05 of the Revised Code. Otherwise, the add-back shall	3447
be apportioned, subject to one or more of the four alternative	3448
methods of apportionment enumerated in section 5747.21 of the	3449
Revised Code.	3450

(d) For the purposes of division (A)(20)(a)(v) of this	3451
section, net operating loss carryback and carryforward shall not	3452
include the allowance of any net operating loss deduction	3453
carryback or carryforward to the taxable year to the extent such	3454
loss resulted from depreciation allowed by section 168(k) of the	3455
Internal Revenue Code and by the qualifying section 179	3456
depreciation expense amount.	3457

(e) For the purposes of divisions (A)(20) and (21) of this	3458
section:	3459

(i) "Income taxes withheld" means the total amount withheld	3460
and remitted under sections 5747.06 and 5747.07 of the Revised	3461
Code by an employer during the employer's taxable year.	3462

(ii) "Increase in income taxes withheld" means the amount by	3463
which the amount of income taxes withheld by an employer during	3464
the employer's current taxable year exceeds the amount of income	3465
taxes withheld by that employer during the employer's immediately	3466
preceding taxable year.	3467

(iii) "Qualifying section 179 depreciation expense" means the	3468
difference between (I) the amount of depreciation expense directly	3469
or indirectly allowed to a taxpayer under section 179 of the	3470
Internal Revised Code, and (II) the amount of depreciation expense	3471
directly or indirectly allowed to the taxpayer under section 179	3472
of the Internal Revenue Code as that section existed on December	3473
31, 2002.	3474

(21)(a) If the taxpayer was required to add an amount under	3475
division (A)(20)(a) of this section for a taxable year, deduct one	3476
of the following:	3477

(i) One-fifth of the amount so added for each of the five	3478
succeeding taxable years if the amount so added was five-sixths of	3479
qualifying section 179 depreciation expense or depreciation	3480
expense allowed by subsection (k) of section 168 of the Internal	3481
Revenue Code;	3482

(ii) One-half of the amount so added for each of the two	3483
succeeding taxable years if the amount so added was two-thirds of	3484
such depreciation expense;	3485

(iii) One-sixth of the amount so added for each of the six	3486
succeeding taxable years if the entire amount of such depreciation	3487
expense was so added.	3488

(b) If the amount deducted under division (A)(21)(a) of this	3489
section is attributable to an add-back allocated under division	3490
(A)(20)(c) of this section, the amount deducted shall be sitused	3491
to the same location. Otherwise, the add-back shall be apportioned	3492
using the apportionment factors for the taxable year in which the	3493
deduction is taken, subject to one or more of the four alternative	3494
methods of apportionment enumerated in section 5747.21 of the	3495
Revised Code.	3496

(c) No deduction is available under division (A)(21)(a) of	3497
this section with regard to any depreciation allowed by section	3498
168(k) of the Internal Revenue Code and by the qualifying section	3499
179 depreciation expense amount to the extent that such	3500
depreciation results in or increases a federal net operating loss	3501
carryback or carryforward. If no such deduction is available for a	3502
taxable year, the taxpayer may carry forward the amount not	3503
deducted in such taxable year to the next taxable year and add	3504
that amount to any deduction otherwise available under division	3505
(A)(21)(a) of this section for that next taxable year. The	3506
carryforward of amounts not so deducted shall continue until the	3507
entire addition required by division (A)(20)(a) of this section	3508
has been deducted.	3509

(d) No refund shall be allowed as a result of adjustments	3510
made by division (A)(21) of this section.	3511

(22) Deduct, to the extent not otherwise deducted or excluded	3512
in computing federal or Ohio adjusted gross income for the taxable	3513
year, the amount the taxpayer received during the taxable year as	3514
reimbursement for life insurance premiums under section 5919.31 of	3515
the Revised Code.	3516

(23) Deduct, to the extent not otherwise deducted or excluded	3517
in computing federal or Ohio adjusted gross income for the taxable	3518
year, the amount the taxpayer received during the taxable year as	3519
a death benefit paid by the adjutant general under section 5919.33	3520
of the Revised Code.	3521

(24) Deduct, to the extent included in federal adjusted gross	3522
income and not otherwise allowable as a deduction or exclusion in	3523
computing federal or Ohio adjusted gross income for the taxable	3524
year, military pay and allowances received by the taxpayer during	3525
the taxable year for active duty service in the United States	3526
army, air force, navy, marine corps, or coast guard or reserve	3527
components thereof or the national guard. The deduction may not be	3528
claimed for military pay and allowances received by the taxpayer	3529
while the taxpayer is stationed in this state.	3530

(25) Deduct, to the extent not otherwise allowable as a	3531
deduction or exclusion in computing federal or Ohio adjusted gross	3532
income for the taxable year and not otherwise compensated for by	3533
any other source, the amount of qualified organ donation expenses	3534
incurred by the taxpayer during the taxable year, not to exceed	3535
ten thousand dollars. A taxpayer may deduct qualified organ	3536
donation expenses only once for all taxable years beginning with	3537
taxable years beginning in 2007.	3538

For the purposes of division (A)(25) of this section:

3539

(a) "Human organ" means all or any portion of a human liver,	3540
pancreas, kidney, intestine, or lung, and any portion of human	3541
bone marrow.	3542

(b) "Qualified organ donation expenses" means travel	3543
expenses, lodging expenses, and wages and salary forgone by a	3544
taxpayer in connection with the taxpayer's donation, while living,	3545
of one or more of the taxpayer's human organs to another human	3546
being.	3547

(26) Deduct, to the extent not otherwise deducted or excluded	3548
in computing federal or Ohio adjusted gross income for the taxable	3549
year, amounts received by the taxpayer as retired military	3550
personnel pay for service in the United States army, navy, air	3551
force, coast guard, or marine corps or reserve components thereof,	3552
or the national guard, or received by the surviving spouse or	3553
former spouse of such a taxpayer under the survivor benefit plan	3554
on account of such a taxpayer's death. If the taxpayer receives	3555
income on account of retirement paid under the federal civil	3556
service retirement system or federal employees retirement system,	3557
or under any successor retirement program enacted by the congress	3558
of the United States that is established and maintained for	3559
retired employees of the United States government, and such	3560
retirement income is based, in whole or in part, on credit for the	3561
taxpayer's military service, the deduction allowed under this	3562
division shall include only that portion of such retirement income	3563
that is attributable to the taxpayer's military service, to the	3564
extent that portion of such retirement income is otherwise	3565
included in federal adjusted gross income and is not otherwise	3566
deducted under this section. Any amount deducted under division	3567
(A)(26) of this section is not included in a taxpayer's adjusted	3568
gross income for the purposes of section 5747.055 of the Revised	3569
Code. No amount may be deducted under division (A)(26) of this	3570
section on the basis of which a credit was claimed under section	3571
5747.055 of the Revised Code.	3572

(27) Deduct, to the extent not otherwise deducted or excluded	3573
in computing federal or Ohio adjusted gross income for the taxable	3574
year, the amount the taxpayer received during the taxable year	3575
from the military injury relief fund created in section 5101.98 of	3576
the Revised Code.	3577

(28) Deduct, to the extent not otherwise deducted or excluded	3578
in computing federal or Ohio adjusted gross income for the taxable	3579
year, the amount the taxpayer received as a veterans bonus during	3580
the taxable year from the Ohio department of veterans services as	3581
authorized by Section 2r of Article VIII, Ohio Constitution.	3582

(29) Deduct, to the extent not otherwise deducted or excluded	3583
in computing federal or Ohio adjusted gross income for the taxable	3584
year, any loss from wagering transactions that is allowed as an	3585
itemized deduction under section 165 of the Internal Revenue Code	3586
and that the taxpayer deducted in computing federal taxable	3587
income.	3588

(30) Deduct, to the extent not otherwise deducted or excluded	3589
in computing federal or Ohio adjusted gross income for the taxable	3590
year, any income ~~derived from providing public services under a~~	3591
~~contract through a project owned by the state, as described in~~	3592
~~section 126.604 of the Revised Code or~~ derived from a transfer	3593
agreement or from the enterprise transferred under that agreement	3594
under section 4313.02 of the Revised Code.	3595

(31) Deduct, to the extent not otherwise deducted or excluded	3596
in computing federal or Ohio adjusted gross income for the taxable	3597
year, Ohio college opportunity or federal Pell grant amounts	3598
received by the taxpayer or the taxpayer's spouse or dependent	3599
pursuant to section 3333.122 of the Revised Code or 20 U.S.C.	3600
1070a, et seq., and used to pay room or board furnished by the	3601
educational institution for which the grant was awarded at the	3602
institution's facilities, including meal plans administered by the	3603
institution. For the purposes of this division, receipt of a grant	3604
includes the distribution of a grant directly to an educational	3605
institution and the crediting of the grant to the enrollee's	3606
account with the institution.	3607

(B) "Business income" means income, including gain or loss,	3608
arising from transactions, activities, and sources in the regular	3609
course of a trade or business and includes income, gain, or loss	3610
from real property, tangible property, and intangible property if	3611
the acquisition, rental, management, and disposition of the	3612
property constitute integral parts of the regular course of a	3613
trade or business operation. "Business income" includes income,	3614
including gain or loss, from a partial or complete liquidation of	3615
a business, including, but not limited to, gain or loss from the	3616
sale or other disposition of goodwill.	3617

(C) "Nonbusiness income" means all income other than business	3618
income and may include, but is not limited to, compensation, rents	3619
and royalties from real or tangible personal property, capital	3620
gains, interest, dividends and distributions, patent or copyright	3621
royalties, or lottery winnings, prizes, and awards.	3622

(D) "Compensation" means any form of remuneration paid to an	3623
employee for personal services.	3624

(E) "Fiduciary" means a guardian, trustee, executor,	3625
administrator, receiver, conservator, or any other person acting	3626
in any fiduciary capacity for any individual, trust, or estate.	3627

(F) "Fiscal year" means an accounting period of twelve months	3628
ending on the last day of any month other than December.	3629

(G) "Individual" means any natural person.

3630

(H) "Internal Revenue Code" means the "Internal Revenue Code	3631
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	3632

(I) "Resident" means any of the following, provided that	3633
division (I)(3) of this section applies only to taxable years of a	3634
trust beginning in 2002 or thereafter:	3635

(1) An individual who is domiciled in this state, subject to	3636
section 5747.24 of the Revised Code;	3637

(2) The estate of a decedent who at the time of death was	3638
domiciled in this state. The domicile tests of section 5747.24 of	3639
the Revised Code are not controlling for purposes of division	3640
(I)(2) of this section.	3641

(3) A trust that, in whole or part, resides in this state. If	3642
only part of a trust resides in this state, the trust is a	3643
resident only with respect to that part.	3644

For the purposes of division (I)(3) of this section:

3645

(a) A trust resides in this state for the trust's current	3646
taxable year to the extent, as described in division (I)(3)(d) of	3647
this section, that the trust consists directly or indirectly, in	3648
whole or in part, of assets, net of any related liabilities, that	3649
were transferred, or caused to be transferred, directly or	3650
indirectly, to the trust by any of the following:	3651

(i) A person, a court, or a governmental entity or	3652
instrumentality on account of the death of a decedent, but only if	3653
the trust is described in division (I)(3)(e)(i) or (ii) of this	3654
section;	3655

(ii) A person who was domiciled in this state for the	3656
purposes of this chapter when the person directly or indirectly	3657
transferred assets to an irrevocable trust, but only if at least	3658
one of the trust's qualifying beneficiaries is domiciled in this	3659
state for the purposes of this chapter during all or some portion	3660
of the trust's current taxable year;	3661

(iii) A person who was domiciled in this state for the	3662
purposes of this chapter when the trust document or instrument or	3663
part of the trust document or instrument became irrevocable, but	3664
only if at least one of the trust's qualifying beneficiaries is a	3665
resident domiciled in this state for the purposes of this chapter	3666
during all or some portion of the trust's current taxable year. If	3667
a trust document or instrument became irrevocable upon the death	3668
of a person who at the time of death was domiciled in this state	3669
for purposes of this chapter, that person is a person described in	3670
division (I)(3)(a)(iii) of this section.	3671

(b) A trust is irrevocable to the extent that the transferor	3672
is not considered to be the owner of the net assets of the trust	3673
under sections 671 to 678 of the Internal Revenue Code.	3674

(c) With respect to a trust other than a charitable lead	3675
trust, "qualifying beneficiary" has the same meaning as "potential	3676
current beneficiary" as defined in section 1361(e)(2) of the	3677
Internal Revenue Code, and with respect to a charitable lead trust	3678
"qualifying beneficiary" is any current, future, or contingent	3679
beneficiary, but with respect to any trust "qualifying	3680
beneficiary" excludes a person or a governmental entity or	3681
instrumentality to any of which a contribution would qualify for	3682
the charitable deduction under section 170 of the Internal Revenue	3683
Code.	3684

(d) For the purposes of division (I)(3)(a) of this section,	3685
the extent to which a trust consists directly or indirectly, in	3686
whole or in part, of assets, net of any related liabilities, that	3687
were transferred directly or indirectly, in whole or part, to the	3688
trust by any of the sources enumerated in that division shall be	3689
ascertained by multiplying the fair market value of the trust's	3690
assets, net of related liabilities, by the qualifying ratio, which	3691
shall be computed as follows:	3692

(i) The first time the trust receives assets, the numerator	3693
of the qualifying ratio is the fair market value of those assets	3694
at that time, net of any related liabilities, from sources	3695
enumerated in division (I)(3)(a) of this section. The denominator	3696
of the qualifying ratio is the fair market value of all the	3697
trust's assets at that time, net of any related liabilities.	3698

(ii) Each subsequent time the trust receives assets, a	3699
revised qualifying ratio shall be computed. The numerator of the	3700
revised qualifying ratio is the sum of (1) the fair market value	3701
of the trust's assets immediately prior to the subsequent	3702
transfer, net of any related liabilities, multiplied by the	3703
qualifying ratio last computed without regard to the subsequent	3704
transfer, and (2) the fair market value of the subsequently	3705
transferred assets at the time transferred, net of any related	3706
liabilities, from sources enumerated in division (I)(3)(a) of this	3707
section. The denominator of the revised qualifying ratio is the	3708
fair market value of all the trust's assets immediately after the	3709
subsequent transfer, net of any related liabilities.	3710

(iii) Whether a transfer to the trust is by or from any of	3711
the sources enumerated in division (I)(3)(a) of this section shall	3712
be ascertained without regard to the domicile of the trust's	3713
beneficiaries.	3714

(e) For the purposes of division (I)(3)(a)(i) of this	3715
section:	3716

(i) A trust is described in division (I)(3)(e)(i) of this	3717
section if the trust is a testamentary trust and the testator of	3718
that testamentary trust was domiciled in this state at the time of	3719
the testator's death for purposes of the taxes levied under	3720
Chapter 5731. of the Revised Code.	3721

(ii) A trust is described in division (I)(3)(e)(ii) of this	3722
section if the transfer is a qualifying transfer described in any	3723
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an	3724
irrevocable inter vivos trust, and at least one of the trust's	3725
qualifying beneficiaries is domiciled in this state for purposes	3726
of this chapter during all or some portion of the trust's current	3727
taxable year.	3728

(f) For the purposes of division (I)(3)(e)(ii) of this	3729
section, a "qualifying transfer" is a transfer of assets, net of	3730
any related liabilities, directly or indirectly to a trust, if the	3731
transfer is described in any of the following:	3732

(i) The transfer is made to a trust, created by the decedent	3733
before the decedent's death and while the decedent was domiciled	3734
in this state for the purposes of this chapter, and, prior to the	3735
death of the decedent, the trust became irrevocable while the	3736
decedent was domiciled in this state for the purposes of this	3737
chapter.	3738

(ii) The transfer is made to a trust to which the decedent,	3739
prior to the decedent's death, had directly or indirectly	3740
transferred assets, net of any related liabilities, while the	3741
decedent was domiciled in this state for the purposes of this	3742
chapter, and prior to the death of the decedent the trust became	3743
irrevocable while the decedent was domiciled in this state for the	3744
purposes of this chapter.	3745

(iii) The transfer is made on account of a contractual	3746
relationship existing directly or indirectly between the	3747
transferor and either the decedent or the estate of the decedent	3748
at any time prior to the date of the decedent's death, and the	3749
decedent was domiciled in this state at the time of death for	3750
purposes of the taxes levied under Chapter 5731. of the Revised	3751
Code.	3752

(iv) The transfer is made to a trust on account of a	3753
contractual relationship existing directly or indirectly between	3754
the transferor and another person who at the time of the	3755
decedent's death was domiciled in this state for purposes of this	3756
chapter.	3757

(v) The transfer is made to a trust on account of the will of	3758
a testator who was domiciled in this state at the time of the	3759
testator's death for purposes of the taxes levied under Chapter	3760
5731. of the Revised Code.	3761

(vi) The transfer is made to a trust created by or caused to	3762
be created by a court, and the trust was directly or indirectly	3763
created in connection with or as a result of the death of an	3764
individual who, for purposes of the taxes levied under Chapter	3765
5731. of the Revised Code, was domiciled in this state at the time	3766
of the individual's death.	3767

(g) The tax commissioner may adopt rules to ascertain the	3768
part of a trust residing in this state.	3769

(J) "Nonresident" means an individual or estate that is not a	3770
resident. An individual who is a resident for only part of a	3771
taxable year is a nonresident for the remainder of that taxable	3772
year.	3773

(K) "Pass-through entity" has the same meaning as in section	3774
5733.04 of the Revised Code.	3775

(L) "Return" means the notifications and reports required to	3776
be filed pursuant to this chapter for the purpose of reporting the	3777
tax due and includes declarations of estimated tax when so	3778
required.	3779

(M) "Taxable year" means the calendar year or the taxpayer's	3780
fiscal year ending during the calendar year, or fractional part	3781
thereof, upon which the adjusted gross income is calculated	3782
pursuant to this chapter.	3783

(N) "Taxpayer" means any person subject to the tax imposed by	3784
section 5747.02 of the Revised Code or any pass-through entity	3785
that makes the election under division (D) of section 5747.08 of	3786
the Revised Code.	3787

(O) "Dependents" means dependents as defined in the Internal	3788
Revenue Code and as claimed in the taxpayer's federal income tax	3789
return for the taxable year or which the taxpayer would have been	3790
permitted to claim had the taxpayer filed a federal income tax	3791
return.	3792

(P) "Principal county of employment" means, in the case of a	3793
nonresident, the county within the state in which a taxpayer	3794
performs services for an employer or, if those services are	3795
performed in more than one county, the county in which the major	3796
portion of the services are performed.	3797

(Q) As used in sections 5747.50 to 5747.55 of the Revised	3798
Code:	3799

(1) "Subdivision" means any county, municipal corporation,	3800
park district, or township.	3801

(2) "Essential local government purposes" includes all	3802
functions that any subdivision is required by general law to	3803
exercise, including like functions that are exercised under a	3804
charter adopted pursuant to the Ohio Constitution.	3805

(R) "Overpayment" means any amount already paid that exceeds	3806
the figure determined to be the correct amount of the tax.	3807

(S) "Taxable income" or "Ohio taxable income" applies only to	3808
estates and trusts, and means federal taxable income, as defined	3809
and used in the Internal Revenue Code, adjusted as follows:	3810

(1) Add interest or dividends, net of ordinary, necessary,	3811
and reasonable expenses not deducted in computing federal taxable	3812
income, on obligations or securities of any state or of any	3813
political subdivision or authority of any state, other than this	3814
state and its subdivisions and authorities, but only to the extent	3815
that such net amount is not otherwise includible in Ohio taxable	3816
income and is described in either division (S)(1)(a) or (b) of	3817
this section:	3818

(a) The net amount is not attributable to the S portion of an	3819
electing small business trust and has not been distributed to	3820
beneficiaries for the taxable year;	3821

(b) The net amount is attributable to the S portion of an	3822
electing small business trust for the taxable year.	3823

(2) Add interest or dividends, net of ordinary, necessary,	3824
and reasonable expenses not deducted in computing federal taxable	3825
income, on obligations of any authority, commission,	3826
instrumentality, territory, or possession of the United States to	3827
the extent that the interest or dividends are exempt from federal	3828
income taxes but not from state income taxes, but only to the	3829
extent that such net amount is not otherwise includible in Ohio	3830
taxable income and is described in either division (S)(1)(a) or	3831
(b) of this section;	3832

(3) Add the amount of personal exemption allowed to the	3833
estate pursuant to section 642(b) of the Internal Revenue Code;	3834

(4) Deduct interest or dividends, net of related expenses	3835
deducted in computing federal taxable income, on obligations of	3836
the United States and its territories and possessions or of any	3837
authority, commission, or instrumentality of the United States to	3838
the extent that the interest or dividends are exempt from state	3839
taxes under the laws of the United States, but only to the extent	3840
that such amount is included in federal taxable income and is	3841
described in either division (S)(1)(a) or (b) of this section;	3842

(5) Deduct the amount of wages and salaries, if any, not	3843
otherwise allowable as a deduction but that would have been	3844
allowable as a deduction in computing federal taxable income for	3845
the taxable year, had the targeted jobs credit allowed under	3846
sections 38, 51, and 52 of the Internal Revenue Code not been in	3847
effect, but only to the extent such amount relates either to	3848
income included in federal taxable income for the taxable year or	3849
to income of the S portion of an electing small business trust for	3850
the taxable year;	3851

(6) Deduct any interest or interest equivalent, net of	3852
related expenses deducted in computing federal taxable income, on	3853
public obligations and purchase obligations, but only to the	3854
extent that such net amount relates either to income included in	3855
federal taxable income for the taxable year or to income of the S	3856
portion of an electing small business trust for the taxable year;	3857

(7) Add any loss or deduct any gain resulting from sale,	3858
exchange, or other disposition of public obligations to the extent	3859
that such loss has been deducted or such gain has been included in	3860
computing either federal taxable income or income of the S portion	3861
of an electing small business trust for the taxable year;	3862

(8) Except in the case of the final return of an estate, add	3863
any amount deducted by the taxpayer on both its Ohio estate tax	3864
return pursuant to section 5731.14 of the Revised Code, and on its	3865
federal income tax return in determining federal taxable income;	3866

(9)(a) Deduct any amount included in federal taxable income	3867
solely because the amount represents a reimbursement or refund of	3868
expenses that in a previous year the decedent had deducted as an	3869
itemized deduction pursuant to section 63 of the Internal Revenue	3870
Code and applicable treasury regulations. The deduction otherwise	3871
allowed under division (S)(9)(a) of this section shall be reduced	3872
to the extent the reimbursement is attributable to an amount the	3873
taxpayer or decedent deducted under this section in any taxable	3874
year.	3875

(b) Add any amount not otherwise included in Ohio taxable	3876
income for any taxable year to the extent that the amount is	3877
attributable to the recovery during the taxable year of any amount	3878
deducted or excluded in computing federal or Ohio taxable income	3879
in any taxable year, but only to the extent such amount has not	3880
been distributed to beneficiaries for the taxable year.	3881

(10) Deduct any portion of the deduction described in section	3882
1341(a)(2) of the Internal Revenue Code, for repaying previously	3883
reported income received under a claim of right, that meets both	3884
of the following requirements:	3885

(a) It is allowable for repayment of an item that was	3886
included in the taxpayer's taxable income or the decedent's	3887
adjusted gross income for a prior taxable year and did not qualify	3888
for a credit under division (A) or (B) of section 5747.05 of the	3889
Revised Code for that year.	3890

(b) It does not otherwise reduce the taxpayer's taxable	3891
income or the decedent's adjusted gross income for the current or	3892
any other taxable year.	3893

(11) Add any amount claimed as a credit under section	3894
5747.059 or 5747.65 of the Revised Code to the extent that the	3895
amount satisfies either of the following:	3896

(a) The amount was deducted or excluded from the computation	3897
of the taxpayer's federal taxable income as required to be	3898
reported for the taxpayer's taxable year under the Internal	3899
Revenue Code;	3900

(b) The amount resulted in a reduction in the taxpayer's	3901
federal taxable income as required to be reported for any of the	3902
taxpayer's taxable years under the Internal Revenue Code.	3903

(12) Deduct any amount, net of related expenses deducted in	3904
computing federal taxable income, that a trust is required to	3905
report as farm income on its federal income tax return, but only	3906
if the assets of the trust include at least ten acres of land	3907
satisfying the definition of "land devoted exclusively to	3908
agricultural use" under section 5713.30 of the Revised Code,	3909
regardless of whether the land is valued for tax purposes as such	3910
land under sections 5713.30 to 5713.38 of the Revised Code. If the	3911
trust is a pass-through entity investor, section 5747.231 of the	3912
Revised Code applies in ascertaining if the trust is eligible to	3913
claim the deduction provided by division (S)(12) of this section	3914
in connection with the pass-through entity's farm income.	3915

Except for farm income attributable to the S portion of an	3916
electing small business trust, the deduction provided by division	3917
(S)(12) of this section is allowed only to the extent that the	3918
trust has not distributed such farm income. Division (S)(12) of	3919
this section applies only to taxable years of a trust beginning in	3920
2002 or thereafter.	3921

(13) Add the net amount of income described in section 641(c)	3922
of the Internal Revenue Code to the extent that amount is not	3923
included in federal taxable income.	3924

(14) Add or deduct the amount the taxpayer would be required	3925
to add or deduct under division (A)(20) or (21) of this section if	3926
the taxpayer's Ohio taxable income were computed in the same	3927
manner as an individual's Ohio adjusted gross income is computed	3928
under this section. In the case of a trust, division (S)(14) of	3929
this section applies only to any of the trust's taxable years	3930
beginning in 2002 or thereafter.	3931

(T) "School district income" and "school district income tax"	3932
have the same meanings as in section 5748.01 of the Revised Code.	3933

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	3934
of this section, "public obligations," "purchase obligations," and	3935
"interest or interest equivalent" have the same meanings as in	3936
section 5709.76 of the Revised Code.	3937

(V) "Limited liability company" means any limited liability	3938
company formed under Chapter 1705. of the Revised Code or under	3939
the laws of any other state.	3940

(W) "Pass-through entity investor" means any person who,	3941
during any portion of a taxable year of a pass-through entity, is	3942
a partner, member, shareholder, or equity investor in that	3943
pass-through entity.	3944

(X) "Banking day" has the same meaning as in section 1304.01	3945
of the Revised Code.	3946

(Y) "Month" means a calendar month.

3947

(Z) "Quarter" means the first three months, the second three	3948
months, the third three months, or the last three months of the	3949
taxpayer's taxable year.	3950

(AA)(1) "Eligible institution" means a state university or	3951
state institution of higher education as defined in section	3952
3345.011 of the Revised Code, or a private, nonprofit college,	3953
university, or other post-secondary institution located in this	3954
state that possesses a certificate of authorization issued by the	3955
Ohio board of regents pursuant to Chapter 1713. of the Revised	3956
Code or a certificate of registration issued by the state board of	3957
career colleges and schools under Chapter 3332. of the Revised	3958
Code.	3959

(2) "Qualified tuition and fees" means tuition and fees	3960
imposed by an eligible institution as a condition of enrollment or	3961
attendance, not exceeding two thousand five hundred dollars in	3962
each of the individual's first two years of post-secondary	3963
education. If the individual is a part-time student, "qualified	3964
tuition and fees" includes tuition and fees paid for the academic	3965
equivalent of the first two years of post-secondary education	3966
during a maximum of five taxable years, not exceeding a total of	3967
five thousand dollars. "Qualified tuition and fees" does not	3968
include:	3969

(a) Expenses for any course or activity involving sports,	3970
games, or hobbies unless the course or activity is part of the	3971
individual's degree or diploma program;	3972

(b) The cost of books, room and board, student activity fees,	3973
athletic fees, insurance expenses, or other expenses unrelated to	3974
the individual's academic course of instruction;	3975

(c) Tuition, fees, or other expenses paid or reimbursed	3976
through an employer, scholarship, grant in aid, or other	3977
educational benefit program.	3978

(BB)(1) "Modified business income" means the business income	3979
included in a trust's Ohio taxable income after such taxable	3980
income is first reduced by the qualifying trust amount, if any.	3981

(2) "Qualifying trust amount" of a trust means capital gains	3982
and losses from the sale, exchange, or other disposition of equity	3983
or ownership interests in, or debt obligations of, a qualifying	3984
investee to the extent included in the trust's Ohio taxable	3985
income, but only if the following requirements are satisfied:	3986

(a) The book value of the qualifying investee's physical	3987
assets in this state and everywhere, as of the last day of the	3988
qualifying investee's fiscal or calendar year ending immediately	3989
prior to the date on which the trust recognizes the gain or loss,	3990
is available to the trust.	3991

(b) The requirements of section 5747.011 of the Revised Code	3992
are satisfied for the trust's taxable year in which the trust	3993
recognizes the gain or loss.	3994

Any gain or loss that is not a qualifying trust amount is	3995
modified business income, qualifying investment income, or	3996
modified nonbusiness income, as the case may be.	3997

(3) "Modified nonbusiness income" means a trust's Ohio	3998
taxable income other than modified business income, other than the	3999
qualifying trust amount, and other than qualifying investment	4000
income, as defined in section 5747.012 of the Revised Code, to the	4001
extent such qualifying investment income is not otherwise part of	4002
modified business income.	4003

(4) "Modified Ohio taxable income" applies only to trusts,	4004
and means the sum of the amounts described in divisions (BB)(4)(a)	4005
to (c) of this section:	4006

(a) The fraction, calculated under section 5747.013, and	4007
applying section 5747.231 of the Revised Code, multiplied by the	4008
sum of the following amounts:	4009

(i) The trust's modified business income;

4010

(ii) The trust's qualifying investment income, as defined in	4011
section 5747.012 of the Revised Code, but only to the extent the	4012
qualifying investment income does not otherwise constitute	4013
modified business income and does not otherwise constitute a	4014
qualifying trust amount.	4015

(b) The qualifying trust amount multiplied by a fraction, the	4016
numerator of which is the sum of the book value of the qualifying	4017
investee's physical assets in this state on the last day of the	4018
qualifying investee's fiscal or calendar year ending immediately	4019
prior to the day on which the trust recognizes the qualifying	4020
trust amount, and the denominator of which is the sum of the book	4021
value of the qualifying investee's total physical assets	4022
everywhere on the last day of the qualifying investee's fiscal or	4023
calendar year ending immediately prior to the day on which the	4024
trust recognizes the qualifying trust amount. If, for a taxable	4025
year, the trust recognizes a qualifying trust amount with respect	4026
to more than one qualifying investee, the amount described in	4027
division (BB)(4)(b) of this section shall equal the sum of the	4028
products so computed for each such qualifying investee.	4029

(c)(i) With respect to a trust or portion of a trust that is	4030
a resident as ascertained in accordance with division (I)(3)(d) of	4031
this section, its modified nonbusiness income.	4032

(ii) With respect to a trust or portion of a trust that is	4033
not a resident as ascertained in accordance with division	4034
(I)(3)(d) of this section, the amount of its modified nonbusiness	4035
income satisfying the descriptions in divisions (B)(2) to (5) of	4036
section 5747.20 of the Revised Code, except as otherwise provided	4037
in division (BB)(4)(c)(ii) of this section. With respect to a	4038
trust or portion of a trust that is not a resident as ascertained	4039
in accordance with division (I)(3)(d) of this section, the trust's	4040
portion of modified nonbusiness income recognized from the sale,	4041
exchange, or other disposition of a debt interest in or equity	4042
interest in a section 5747.212 entity, as defined in section	4043
5747.212 of the Revised Code, without regard to division (A) of	4044
that section, shall not be allocated to this state in accordance	4045
with section 5747.20 of the Revised Code but shall be apportioned	4046
to this state in accordance with division (B) of section 5747.212	4047
of the Revised Code without regard to division (A) of that	4048
section.	4049

If the allocation and apportionment of a trust's income under	4050
divisions (BB)(4)(a) and (c) of this section do not fairly	4051
represent the modified Ohio taxable income of the trust in this	4052
state, the alternative methods described in division (C) of	4053
section 5747.21 of the Revised Code may be applied in the manner	4054
and to the same extent provided in that section.	4055

(5)(a) Except as set forth in division (BB)(5)(b) of this	4056
section, "qualifying investee" means a person in which a trust has	4057
an equity or ownership interest, or a person or unit of government	4058
the debt obligations of either of which are owned by a trust. For	4059
the purposes of division (BB)(2)(a) of this section and for the	4060
purpose of computing the fraction described in division (BB)(4)(b)	4061
of this section, all of the following apply:	4062

(i) If the qualifying investee is a member of a qualifying	4063
controlled group on the last day of the qualifying investee's	4064
fiscal or calendar year ending immediately prior to the date on	4065
which the trust recognizes the gain or loss, then "qualifying	4066
investee" includes all persons in the qualifying controlled group	4067
on such last day.	4068

(ii) If the qualifying investee, or if the qualifying	4069
investee and any members of the qualifying controlled group of	4070
which the qualifying investee is a member on the last day of the	4071
qualifying investee's fiscal or calendar year ending immediately	4072
prior to the date on which the trust recognizes the gain or loss,	4073
separately or cumulatively own, directly or indirectly, on the	4074
last day of the qualifying investee's fiscal or calendar year	4075
ending immediately prior to the date on which the trust recognizes	4076
the qualifying trust amount, more than fifty per cent of the	4077
equity of a pass-through entity, then the qualifying investee and	4078
the other members are deemed to own the proportionate share of the	4079
pass-through entity's physical assets which the pass-through	4080
entity directly or indirectly owns on the last day of the	4081
pass-through entity's calendar or fiscal year ending within or	4082
with the last day of the qualifying investee's fiscal or calendar	4083
year ending immediately prior to the date on which the trust	4084
recognizes the qualifying trust amount.	4085

(iii) For the purposes of division (BB)(5)(a)(iii) of this	4086
section, "upper level pass-through entity" means a pass-through	4087
entity directly or indirectly owning any equity of another	4088
pass-through entity, and "lower level pass-through entity" means	4089
that other pass-through entity.	4090

An upper level pass-through entity, whether or not it is also	4091
a qualifying investee, is deemed to own, on the last day of the	4092
upper level pass-through entity's calendar or fiscal year, the	4093
proportionate share of the lower level pass-through entity's	4094
physical assets that the lower level pass-through entity directly	4095
or indirectly owns on the last day of the lower level pass-through	4096
entity's calendar or fiscal year ending within or with the last	4097
day of the upper level pass-through entity's fiscal or calendar	4098
year. If the upper level pass-through entity directly and	4099
indirectly owns less than fifty per cent of the equity of the	4100
lower level pass-through entity on each day of the upper level	4101
pass-through entity's calendar or fiscal year in which or with	4102
which ends the calendar or fiscal year of the lower level	4103
pass-through entity and if, based upon clear and convincing	4104
evidence, complete information about the location and cost of the	4105
physical assets of the lower pass-through entity is not available	4106
to the upper level pass-through entity, then solely for purposes	4107
of ascertaining if a gain or loss constitutes a qualifying trust	4108
amount, the upper level pass-through entity shall be deemed as	4109
owning no equity of the lower level pass-through entity for each	4110
day during the upper level pass-through entity's calendar or	4111
fiscal year in which or with which ends the lower level	4112
pass-through entity's calendar or fiscal year. Nothing in division	4113
(BB)(5)(a)(iii) of this section shall be construed to provide for	4114
any deduction or exclusion in computing any trust's Ohio taxable	4115
income.	4116

(b) With respect to a trust that is not a resident for the	4117
taxable year and with respect to a part of a trust that is not a	4118
resident for the taxable year, "qualifying investee" for that	4119
taxable year does not include a C corporation if both of the	4120
following apply:	4121

(i) During the taxable year the trust or part of the trust	4122
recognizes a gain or loss from the sale, exchange, or other	4123
disposition of equity or ownership interests in, or debt	4124
obligations of, the C corporation.	4125

(ii) Such gain or loss constitutes nonbusiness income.

4126

(6) "Available" means information is such that a person is	4127
able to learn of the information by the due date plus extensions,	4128
if any, for filing the return for the taxable year in which the	4129
trust recognizes the gain or loss.	4130

(CC) "Qualifying controlled group" has the same meaning as in	4131
section 5733.04 of the Revised Code.	4132

(DD) "Related member" has the same meaning as in section	4133
5733.042 of the Revised Code.	4134

(EE)(1) For the purposes of division (EE) of this section:

4135

(a) "Qualifying person" means any person other than a	4136
qualifying corporation.	4137

(b) "Qualifying corporation" means any person classified for	4138
federal income tax purposes as an association taxable as a	4139
corporation, except either of the following:	4140

(i) A corporation that has made an election under subchapter	4141
S, chapter one, subtitle A, of the Internal Revenue Code for its	4142
taxable year ending within, or on the last day of, the investor's	4143
taxable year;	4144

(ii) A subsidiary that is wholly owned by any corporation	4145
that has made an election under subchapter S, chapter one,	4146
subtitle A of the Internal Revenue Code for its taxable year	4147
ending within, or on the last day of, the investor's taxable year.	4148

(2) For the purposes of this chapter, unless expressly stated	4149
otherwise, no qualifying person indirectly owns any asset directly	4150
or indirectly owned by any qualifying corporation.	4151

(FF) For purposes of this chapter and Chapter 5751. of the	4152
Revised Code:	4153

(1) "Trust" does not include a qualified pre-income tax	4154
trust.	4155

(2) A "qualified pre-income tax trust" is any pre-income tax	4156
trust that makes a qualifying pre-income tax trust election as	4157
described in division (FF)(3) of this section.	4158

(3) A "qualifying pre-income tax trust election" is an	4159
election by a pre-income tax trust to subject to the tax imposed	4160
by section 5751.02 of the Revised Code the pre-income tax trust	4161
and all pass-through entities of which the trust owns or controls,	4162
directly, indirectly, or constructively through related interests,	4163
five per cent or more of the ownership or equity interests. The	4164
trustee shall notify the tax commissioner in writing of the	4165
election on or before April 15, 2006. The election, if timely	4166
made, shall be effective on and after January 1, 2006, and shall	4167
apply for all tax periods and tax years until revoked by the	4168
trustee of the trust.	4169

(4) A "pre-income tax trust" is a trust that satisfies all of	4170
the following requirements:	4171

(a) The document or instrument creating the trust was	4172
executed by the grantor before January 1, 1972;	4173

(b) The trust became irrevocable upon the creation of the	4174
trust; and	4175

(c) The grantor was domiciled in this state at the time the	4176
trust was created.	4177

Sec. 5751.01. As used in this chapter:

4178

(A) "Person" means, but is not limited to, individuals,	4179
combinations of individuals of any form, receivers, assignees,	4180
trustees in bankruptcy, firms, companies, joint-stock companies,	4181
business trusts, estates, partnerships, limited liability	4182
partnerships, limited liability companies, associations, joint	4183
ventures, clubs, societies, for-profit corporations, S	4184
corporations, qualified subchapter S subsidiaries, qualified	4185
subchapter S trusts, trusts, entities that are disregarded for	4186
federal income tax purposes, and any other entities.	4187

(B) "Consolidated elected taxpayer" means a group of two or	4188
more persons treated as a single taxpayer for purposes of this	4189
chapter as the result of an election made under section 5751.011	4190
of the Revised Code.	4191

(C) "Combined taxpayer" means a group of two or more persons	4192
treated as a single taxpayer for purposes of this chapter under	4193
section 5751.012 of the Revised Code.	4194

(D) "Taxpayer" means any person, or any group of persons in	4195
the case of a consolidated elected taxpayer or combined taxpayer	4196
treated as one taxpayer, required to register or pay tax under	4197
this chapter. "Taxpayer" does not include excluded persons.	4198

(E) "Excluded person" means any of the following:

4199

(1) Any person with not more than one hundred fifty thousand	4200
dollars of taxable gross receipts during the calendar year.	4201
Division (E)(1) of this section does not apply to a person that is	4202
a member of a consolidated elected taxpayer;	4203

(2) A public utility that paid the excise tax imposed by	4204
section 5727.24 or 5727.30 of the Revised Code based on one or	4205
more measurement periods that include the entire tax period under	4206
this chapter, except that a public utility that is a combined	4207
company is a taxpayer with regard to the following gross receipts:	4208

(a) Taxable gross receipts directly attributed to a public	4209
utility activity, but not directly attributed to an activity that	4210
is subject to the excise tax imposed by section 5727.24 or 5727.30	4211
of the Revised Code;	4212

(b) Taxable gross receipts that cannot be directly attributed	4213
to any activity, multiplied by a fraction whose numerator is the	4214
taxable gross receipts described in division (E)(2)(a) of this	4215
section and whose denominator is the total taxable gross receipts	4216
that can be directly attributed to any activity;	4217

(c) Except for any differences resulting from the use of an	4218
accrual basis method of accounting for purposes of determining	4219
gross receipts under this chapter and the use of the cash basis	4220
method of accounting for purposes of determining gross receipts	4221
under section 5727.24 of the Revised Code, the gross receipts	4222
directly attributed to the activity of a natural gas company shall	4223
be determined in a manner consistent with division (D) of section	4224
5727.03 of the Revised Code.	4225

As used in division (E)(2) of this section, "combined	4226
company" and "public utility" have the same meanings as in section	4227
5727.01 of the Revised Code.	4228

(3) A financial institution, as defined in section 5726.01 of	4229
the Revised Code, that paid the tax imposed by section 5726.02 of	4230
the Revised Code based on one or more taxable years that include	4231
the entire tax period under this chapter;	4232

(4) A person directly or indirectly owned by one or more	4233
financial institutions, as defined in section 5726.01 of the	4234
Revised Code, that paid the tax imposed by section 5726.02 of the	4235
Revised Code based on one or more taxable years that include the	4236
entire tax period under this chapter.	4237

For the purposes of division (E)(4) of this section, a person	4238
owns another person under the following circumstances:	4239

(a) In the case of corporations issuing capital stock, one	4240
corporation owns another corporation if it owns fifty per cent or	4241
more of the other corporation's capital stock with current voting	4242
rights;	4243

(b) In the case of a limited liability company, one person	4244
owns the company if that person's membership interest, as defined	4245
in section 1705.01 of the Revised Code, is fifty per cent or more	4246
of the combined membership interests of all persons owning such	4247
interests in the company;	4248

(c) In the case of a partnership, trust, or other	4249
unincorporated business organization other than a limited	4250
liability company, one person owns the organization if, under the	4251
articles of organization or other instrument governing the affairs	4252
of the organization, that person has a beneficial interest in the	4253
organization's profits, surpluses, losses, or distributions of	4254
fifty per cent or more of the combined beneficial interests of all	4255
persons having such an interest in the organization.	4256

(5) A domestic insurance company or foreign insurance	4257
company, as defined in section 5725.01 of the Revised Code, that	4258
paid the insurance company premiums tax imposed by section 5725.18	4259
or Chapter 5729. of the Revised Code, or an unauthorized insurance	4260
company whose gross premiums are subject to tax under section	4261
3905.36 of the Revised Code based on one or more measurement	4262
periods that include the entire tax period under this chapter;	4263

(6) A person that solely facilitates or services one or more	4264
securitizations of phase-in-recovery property pursuant to a final	4265
financing order as those terms are defined in section 4928.23 of	4266
the Revised Code. For purposes of this division, "securitization"	4267
means transferring one or more assets to one or more persons and	4268
then issuing securities backed by the right to receive payment	4269
from the asset or assets so transferred.	4270

(7) Except as otherwise provided in this division, a	4271
pre-income tax trust as defined in division (FF)(4) of section	4272
5747.01 of the Revised Code and any pass-through entity of which	4273
such pre-income tax trust owns or controls, directly, indirectly,	4274
or constructively through related interests, more than five per	4275
cent of the ownership or equity interests. If the pre-income tax	4276
trust has made a qualifying pre-income tax trust election under	4277
division (FF)(3) of section 5747.01 of the Revised Code, then the	4278
trust and the pass-through entities of which it owns or controls,	4279
directly, indirectly, or constructively through related interests,	4280
more than five per cent of the ownership or equity interests,	4281
shall not be excluded persons for purposes of the tax imposed	4282
under section 5751.02 of the Revised Code.	4283

(8) Nonprofit organizations or the state and its agencies,	4284
instrumentalities, or political subdivisions.	4285

(F) Except as otherwise provided in divisions (F)(2), (3),	4286
and (4) of this section, "gross receipts" means the total amount	4287
realized by a person, without deduction for the cost of goods sold	4288
or other expenses incurred, that contributes to the production of	4289
gross income of the person, including the fair market value of any	4290
property and any services received, and any debt transferred or	4291
forgiven as consideration.	4292

(1) The following are examples of gross receipts:

4293

(a) Amounts realized from the sale, exchange, or other	4294
disposition of the taxpayer's property to or with another;	4295

(b) Amounts realized from the taxpayer's performance of	4296
services for another;	4297

(c) Amounts realized from another's use or possession of the	4298
taxpayer's property or capital;	4299

(d) Any combination of the foregoing amounts.

4300

(2) "Gross receipts" excludes the following amounts:

4301

(a) Interest income except interest on credit sales;

4302

(b) Dividends and distributions from corporations, and	4303
distributive or proportionate shares of receipts and income from a	4304
pass-through entity as defined under section 5733.04 of the	4305
Revised Code;	4306

(c) Receipts from the sale, exchange, or other disposition of	4307
an asset described in section 1221 or 1231 of the Internal Revenue	4308
Code, without regard to the length of time the person held the	4309
asset. Notwithstanding section 1221 of the Internal Revenue Code,	4310
receipts from hedging transactions also are excluded to the extent	4311
the transactions are entered into primarily to protect a financial	4312
position, such as managing the risk of exposure to (i) foreign	4313
currency fluctuations that affect assets, liabilities, profits,	4314
losses, equity, or investments in foreign operations; (ii)	4315
interest rate fluctuations; or (iii) commodity price fluctuations.	4316
As used in division (F)(2)(c) of this section, "hedging	4317
transaction" has the same meaning as used in section 1221 of the	4318
Internal Revenue Code and also includes transactions accorded	4319
hedge accounting treatment under statement of financial accounting	4320
standards number 133 of the financial accounting standards board.	4321
For the purposes of division (F)(2)(c) of this section, the actual	4322
transfer of title of real or tangible personal property to another	4323
entity is not a hedging transaction.	4324

(d) Proceeds received attributable to the repayment,	4325
maturity, or redemption of the principal of a loan, bond, mutual	4326
fund, certificate of deposit, or marketable instrument;	4327

(e) The principal amount received under a repurchase	4328
agreement or on account of any transaction properly characterized	4329
as a loan to the person;	4330

(f) Contributions received by a trust, plan, or other	4331
arrangement, any of which is described in section 501(a) of the	4332
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	4333
1, Subchapter (D) of the Internal Revenue Code applies;	4334

(g) Compensation, whether current or deferred, and whether in	4335
cash or in kind, received or to be received by an employee, former	4336
employee, or the employee's legal successor for services rendered	4337
to or for an employer, including reimbursements received by or for	4338
an individual for medical or education expenses, health insurance	4339
premiums, or employee expenses, or on account of a dependent care	4340
spending account, legal services plan, any cafeteria plan	4341
described in section 125 of the Internal Revenue Code, or any	4342
similar employee reimbursement;	4343

(h) Proceeds received from the issuance of the taxpayer's own	4344
stock, options, warrants, puts, or calls, or from the sale of the	4345
taxpayer's treasury stock;	4346

(i) Proceeds received on the account of payments from	4347
insurance policies, except those proceeds received for the loss of	4348
business revenue;	4349

(j) Gifts or charitable contributions received; membership	4350
dues received by trade, professional, homeowners', or condominium	4351
associations; and payments received for educational courses,	4352
meetings, meals, or similar payments to a trade, professional, or	4353
other similar association; and fundraising receipts received by	4354
any person when any excess receipts are donated or used	4355
exclusively for charitable purposes;	4356

(k) Damages received as the result of litigation in excess of	4357
amounts that, if received without litigation, would be gross	4358
receipts;	4359

(l) Property, money, and other amounts received or acquired	4360
by an agent on behalf of another in excess of the agent's	4361
commission, fee, or other remuneration;	4362

(m) Tax refunds, other tax benefit recoveries, and	4363
reimbursements for the tax imposed under this chapter made by	4364
entities that are part of the same combined taxpayer or	4365
consolidated elected taxpayer group, and reimbursements made by	4366
entities that are not members of a combined taxpayer or	4367
consolidated elected taxpayer group that are required to be made	4368
for economic parity among multiple owners of an entity whose tax	4369
obligation under this chapter is required to be reported and paid	4370
entirely by one owner, pursuant to the requirements of sections	4371
5751.011 and 5751.012 of the Revised Code;	4372

(n) Pension reversions;

4373

(o) Contributions to capital;

4374

(p) Sales or use taxes collected as a vendor or an	4375
out-of-state seller on behalf of the taxing jurisdiction from a	4376
consumer or other taxes the taxpayer is required by law to collect	4377
directly from a purchaser and remit to a local, state, or federal	4378
tax authority;	4379

(q) In the case of receipts from the sale of cigarettes or	4380
tobacco products by a wholesale dealer, retail dealer,	4381
distributor, manufacturer, or seller, all as defined in section	4382
5743.01 of the Revised Code, an amount equal to the federal and	4383
state excise taxes paid by any person on or for such cigarettes or	4384
tobacco products under subtitle E of the Internal Revenue Code or	4385
Chapter 5743. of the Revised Code;	4386

(r) In the case of receipts from the sale of motor fuel by a	4387
licensed motor fuel dealer, licensed retail dealer, or licensed	4388
permissive motor fuel dealer, all as defined in section 5735.01 of	4389
the Revised Code, an amount equal to federal and state excise	4390
taxes paid by any person on such motor fuel under section 4081 of	4391
the Internal Revenue Code or Chapter 5735. of the Revised Code;	4392

(s) In the case of receipts from the sale of beer or	4393
intoxicating liquor, as defined in section 4301.01 of the Revised	4394
Code, by a person holding a permit issued under Chapter 4301. or	4395
4303. of the Revised Code, an amount equal to federal and state	4396
excise taxes paid by any person on or for such beer or	4397
intoxicating liquor under subtitle E of the Internal Revenue Code	4398
or Chapter 4301. or 4305. of the Revised Code;	4399

(t) Receipts realized by a new motor vehicle dealer or used	4400
motor vehicle dealer, as defined in section 4517.01 of the Revised	4401
Code, from the sale or other transfer of a motor vehicle, as	4402
defined in that section, to another motor vehicle dealer for the	4403
purpose of resale by the transferee motor vehicle dealer, but only	4404
if the sale or other transfer was based upon the transferee's need	4405
to meet a specific customer's preference for a motor vehicle;	4406

(u) Receipts from a financial institution described in	4407
division (E)(3) of this section for services provided to the	4408
financial institution in connection with the issuance, processing,	4409
servicing, and management of loans or credit accounts, if such	4410
financial institution and the recipient of such receipts have at	4411
least fifty per cent of their ownership interests owned or	4412
controlled, directly or constructively through related interests,	4413
by common owners;	4414

(v) Receipts realized from administering anti-neoplastic	4415
drugs and other cancer chemotherapy, biologicals, therapeutic	4416
agents, and supportive drugs in a physician's office to patients	4417
with cancer;	4418

(w) Funds received or used by a mortgage broker that is not a	4419
dealer in intangibles, other than fees or other consideration,	4420
pursuant to a table-funding mortgage loan or warehouse-lending	4421
mortgage loan. Terms used in division (F)(2)(w) of this section	4422
have the same meanings as in section 1322.01 of the Revised Code,	4423
except "mortgage broker" means a person assisting a buyer in	4424
obtaining a mortgage loan for a fee or other consideration paid by	4425
the buyer or a lender, or a person engaged in table-funding or	4426
warehouse-lending mortgage loans that are first lien mortgage	4427
loans.	4428

(x) Property, money, and other amounts received by a	4429
professional employer organization, as defined in section 4125.01	4430
of the Revised Code, from a client employer, as defined in that	4431
section, in excess of the administrative fee charged by the	4432
professional employer organization to the client employer;	4433

(y) In the case of amounts retained as commissions by a	4434
permit holder under Chapter 3769. of the Revised Code, an amount	4435
equal to the amounts specified under that chapter that must be	4436
paid to or collected by the tax commissioner as a tax and the	4437
amounts specified under that chapter to be used as purse money;	4438

(z) Qualifying distribution center receipts.

4439

(i) For purposes of division (F)(2)(z) of this section:

4440

(I) "Qualifying distribution center receipts" means receipts	4441
of a supplier from qualified property that is delivered to a	4442
qualified distribution center, multiplied by a quantity that	4443
equals one minus the Ohio delivery percentage. If the qualified	4444
distribution center is a refining facility, "supplier" includes	4445
all dealers, brokers, processors, sellers, vendors, cosigners, and	4446
distributors of qualified property.	4447

(II) "Qualified property" means tangible personal property	4448
delivered to a qualified distribution center that is shipped to	4449
that qualified distribution center solely for further shipping by	4450
the qualified distribution center to another location in this	4451
state or elsewhere or, in the case of gold, silver, platinum, or	4452
palladium delivered to a refining facility solely for refining to	4453
a grade and fineness acceptable for delivery to a registered	4454
commodities exchange. "Further shipping" includes storing and	4455
repackaging property into smaller or larger bundles, so long as	4456
the property is not subject to further manufacturing or	4457
processing. "Refining" is limited to extracting impurities from	4458
gold, silver, platinum, or palladium through smelting or some	4459
other process at a refining facility.	4460

(III) "Qualified distribution center" means a warehouse, a	4461
facility similar to a warehouse, or a refining facility in this	4462
state that, for the qualifying year, is operated by a person that	4463
is not part of a combined taxpayer group and that has a qualifying	4464
certificate. All warehouses or facilities similar to warehouses	4465
that are operated by persons in the same taxpayer group and that	4466
are located within one mile of each other shall be treated as one	4467
qualified distribution center. All refining facilities that are	4468
operated by persons in the same taxpayer group and that are	4469
located in the same or adjacent counties may be treated as one	4470
qualified distribution center.	4471

(IV) "Qualifying year" means the calendar year to which the	4472
qualifying certificate applies.	4473

(V) "Qualifying period" means the period of the first day of	4474
July of the second year preceding the qualifying year through the	4475
thirtieth day of June of the year preceding the qualifying year.	4476

(VI) "Qualifying certificate" means the certificate issued by	4477
the tax commissioner after the operator of a distribution center	4478
files an annual application with the commissioner. The application	4479
and annual fee shall be filed and paid for each qualified	4480
distribution center on or before the first day of September before	4481
the qualifying year or within forty-five days after the	4482
distribution center opens, whichever is later.	4483

The applicant must substantiate to the commissioner's	4484
satisfaction that, for the qualifying period, all persons	4485
operating the distribution center have more than fifty per cent of	4486
the cost of the qualified property shipped to a location such that	4487
it would be sitused outside this state under the provisions of	4488
division (E) of section 5751.033 of the Revised Code. The	4489
applicant must also substantiate that the distribution center	4490
cumulatively had costs from its suppliers equal to or exceeding	4491
five hundred million dollars during the qualifying period. (For	4492
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	4493
excludes any person that is part of the consolidated elected	4494
taxpayer group, if applicable, of the operator of the qualified	4495
distribution center.) The commissioner may require the applicant	4496
to have an independent certified public accountant certify that	4497
the calculation of the minimum thresholds required for a qualified	4498
distribution center by the operator of a distribution center has	4499
been made in accordance with generally accepted accounting	4500
principles. The commissioner shall issue or deny the issuance of a	4501
certificate within sixty days after the receipt of the	4502
application. A denial is subject to appeal under section 5717.02	4503
of the Revised Code. If the operator files a timely appeal under	4504
section 5717.02 of the Revised Code, the operator shall be granted	4505
a qualifying certificate, provided that the operator is liable for	4506
any tax, interest, or penalty upon amounts claimed as qualifying	4507
distribution center receipts, other than those receipts exempt	4508
under division (C)(1) of section 5751.011 of the Revised Code,	4509
that would have otherwise not been owed by its suppliers if the	4510
qualifying certificate was valid.	4511

(VII) "Ohio delivery percentage" means the proportion of the	4512
total property delivered to a destination inside Ohio from the	4513
qualified distribution center during the qualifying period	4514
compared with total deliveries from such distribution center	4515
everywhere during the qualifying period.	4516

(VIII) "Refining facility" means one or more buildings	4517
located in a county in the Appalachian region of this state as	4518
defined by section 107.21 of the Revised Code and utilized for	4519
refining or smelting gold, silver, platinum, or palladium to a	4520
grade and fineness acceptable for delivery to a registered	4521
commodities exchange.	4522

(IX) "Registered commodities exchange" means a board of	4523
trade, such as New York mercantile exchange, inc. or commodity	4524
exchange, inc., designated as a contract market by the commodity	4525
futures trading commission under the "Commodity Exchange Act," 7	4526
U.S.C. 1 et seq., as amended.	4527

(ii) If the distribution center is new and was not open for	4528
the entire qualifying period, the operator of the distribution	4529
center may request that the commissioner grant a qualifying	4530
certificate. If the certificate is granted and it is later	4531
determined that more than fifty per cent of the qualified property	4532
during that year was not shipped to a location such that it would	4533
be sitused outside of this state under the provisions of division	4534
(E) of section 5751.033 of the Revised Code or if it is later	4535
determined that the person that operates the distribution center	4536
had average monthly costs from its suppliers of less than forty	4537
million dollars during that year, then the operator of the	4538
distribution center shall be liable for any tax, interest, or	4539
penalty upon amounts claimed as qualifying distribution center	4540
receipts, other than those receipts exempt under division (C)(1)	4541
of section 5751.011 of the Revised Code, that would have not	4542
otherwise been owed by its suppliers during the qualifying year if	4543
the qualifying certificate was valid. (For purposes of division	4544
(F)(2)(z)(ii) of this section, "supplier" excludes any person that	4545
is part of the consolidated elected taxpayer group, if applicable,	4546
of the operator of the qualified distribution center.)	4547

(iii) When filing an application for a qualifying certificate	4548
under division (F)(2)(z)(i)(VI) of this section, the operator of a	4549
qualified distribution center also shall provide documentation, as	4550
the commissioner requires, for the commissioner to ascertain the	4551
Ohio delivery percentage. The commissioner, upon issuing the	4552
qualifying certificate, also shall certify the Ohio delivery	4553
percentage. The operator of the qualified distribution center may	4554
appeal the commissioner's certification of the Ohio delivery	4555
percentage in the same manner as an appeal is taken from the	4556
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	4557
of this section.	4558

Within thirty days after all appeals have been exhausted, the	4559
operator of the qualified distribution center shall notify the	4560
affected suppliers of qualified property that such suppliers are	4561
required to file, within sixty days after receiving notice from	4562
the operator of the qualified distribution center, amended reports	4563
for the impacted calendar quarter or quarters or calendar year,	4564
whichever the case may be. Any additional tax liability or tax	4565
overpayment shall be subject to interest but shall not be subject	4566
to the imposition of any penalty so long as the amended returns	4567
are timely filed. The supplier of tangible personal property	4568
delivered to the qualified distribution center shall include in	4569
its report of taxable gross receipts the receipts from the total	4570
sales of property delivered to the qualified distribution center	4571
for the calendar quarter or calendar year, whichever the case may	4572
be, multiplied by the Ohio delivery percentage for the qualifying	4573
year. Nothing in division (F)(2)(z)(iii) of this section shall be	4574
construed as imposing liability on the operator of a qualified	4575
distribution center for the tax imposed by this chapter arising	4576
from any change to the Ohio delivery percentage.	4577

(iv) In the case where the distribution center is new and not	4578
open for the entire qualifying period, the operator shall make a	4579
good faith estimate of an Ohio delivery percentage for use by	4580
suppliers in their reports of taxable gross receipts for the	4581
remainder of the qualifying period. The operator of the facility	4582
shall disclose to the suppliers that such Ohio delivery percentage	4583
is an estimate and is subject to recalculation. By the due date of	4584
the next application for a qualifying certificate, the operator	4585
shall determine the actual Ohio delivery percentage for the	4586
estimated qualifying period and proceed as provided in division	4587
(F)(2)(z)(iii) of this section with respect to the calculation and	4588
recalculation of the Ohio delivery percentage. The supplier is	4589
required to file, within sixty days after receiving notice from	4590
the operator of the qualified distribution center, amended reports	4591
for the impacted calendar quarter or quarters or calendar year,	4592
whichever the case may be. Any additional tax liability or tax	4593
overpayment shall be subject to interest but shall not be subject	4594
to the imposition of any penalty so long as the amended returns	4595
are timely filed.	4596

(v) Qualifying certificates and Ohio delivery percentages	4597
issued by the commissioner shall be open to public inspection and	4598
shall be timely published by the commissioner. A supplier relying	4599
in good faith on a certificate issued under this division shall	4600
not be subject to tax on the qualifying distribution center	4601
receipts under division (F)(2)(z) of this section. A person	4602
receiving a qualifying certificate is responsible for paying the	4603
tax, interest, and penalty upon amounts claimed as qualifying	4604
distribution center receipts that would not otherwise have been	4605
owed by the supplier if the qualifying certificate were available	4606
when it is later determined that the qualifying certificate should	4607
not have been issued because the statutory requirements were in	4608
fact not met.	4609

(vi) The annual fee for a qualifying certificate shall be one	4610
hundred thousand dollars for each qualified distribution center.	4611
If a qualifying certificate is not issued, the annual fee is	4612
subject to refund after the exhaustion of all appeals provided for	4613
in division (F)(2)(z)(i)(VI) of this section. The fee imposed	4614
under this division may be assessed in the same manner as the tax	4615
imposed under this chapter. The first one hundred thousand dollars	4616
of the annual application fees collected each calendar year shall	4617
be credited to the revenue enhancement fund. The remainder of the	4618
annual application fees collected shall be distributed in the same	4619
manner required under section 5751.20 of the Revised Code.	4620

(vii) The tax commissioner may require that adequate security	4621
be posted by the operator of the distribution center on appeal	4622
when the commissioner disagrees that the applicant has met the	4623
minimum thresholds for a qualified distribution center as set	4624
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this	4625
section.	4626

(aa) Receipts of an employer from payroll deductions relating	4627
to the reimbursement of the employer for advancing moneys to an	4628
unrelated third party on an employee's behalf;	4629

(bb) Cash discounts allowed and taken;

4630

(cc) Returns and allowances;

4631

(dd) Bad debts from receipts on the basis of which the tax	4632
imposed by this chapter was paid in a prior quarterly tax payment	4633
period. For the purpose of this division, "bad debts" means any	4634
debts that have become worthless or uncollectible between the	4635
preceding and current quarterly tax payment periods, have been	4636
uncollected for at least six months, and that may be claimed as a	4637
deduction under section 166 of the Internal Revenue Code and the	4638
regulations adopted under that section, or that could be claimed	4639
as such if the taxpayer kept its accounts on the accrual basis.	4640
"Bad debts" does not include repossessed property, uncollectible	4641
amounts on property that remains in the possession of the taxpayer	4642
until the full purchase price is paid, or expenses in attempting	4643
to collect any account receivable or for any portion of the debt	4644
recovered;	4645

(ee) Any amount realized from the sale of an account	4646
receivable to the extent the receipts from the underlying	4647
transaction giving rise to the account receivable were included in	4648
the gross receipts of the taxpayer;	4649

(ff) Any receipts directly attributed ~~to providing public~~	4650
~~services pursuant to sections 126.60 to 126.605 of the Revised~~	4651
~~Code, or any receipts directly attributed~~ to a transfer agreement	4652
or to the enterprise transferred under that agreement under	4653
section 4313.02 of the Revised Code.	4654

(gg)(i) As used in this division:

4655

(I) "Qualified uranium receipts" means receipts from the	4656
sale, exchange, lease, loan, production, processing, or other	4657
disposition of uranium within a uranium enrichment zone certified	4658
by the tax commissioner under division (F)(2)(gg)(ii) of this	4659
section. "Qualified uranium receipts" does not include any	4660
receipts with a situs in this state outside a uranium enrichment	4661
zone certified by the tax commissioner under division	4662
(F)(2)(gg)(ii) of this section.	4663

(II) "Uranium enrichment zone" means all real property that	4664
is part of a uranium enrichment facility licensed by the United	4665
States nuclear regulatory commission and that was or is owned or	4666
controlled by the United States department of energy or its	4667
successor.	4668

(ii) Any person that owns, leases, or operates real or	4669
tangible personal property constituting or located within a	4670
uranium enrichment zone may apply to the tax commissioner to have	4671
the uranium enrichment zone certified for the purpose of excluding	4672
qualified uranium receipts under division (F)(2)(gg) of this	4673
section. The application shall include such information that the	4674
tax commissioner prescribes. Within sixty days after receiving the	4675
application, the tax commissioner shall certify the zone for that	4676
purpose if the commissioner determines that the property qualifies	4677
as a uranium enrichment zone as defined in division (F)(2)(gg) of	4678
this section, or, if the tax commissioner determines that the	4679
property does not qualify, the commissioner shall deny the	4680
application or request additional information from the applicant.	4681
If the tax commissioner denies an application, the commissioner	4682
shall state the reasons for the denial. The applicant may appeal	4683
the denial of an application to the board of tax appeals pursuant	4684
to section 5717.02 of the Revised Code. If the applicant files a	4685
timely appeal, the tax commissioner shall conditionally certify	4686
the applicant's property. The conditional certification shall	4687
expire when all of the applicant's appeals are exhausted. Until	4688
final resolution of the appeal, the applicant shall retain the	4689
applicant's records in accordance with section 5751.12 of the	4690
Revised Code, notwithstanding any time limit on the preservation	4691
of records under that section.	4692

(hh) Amounts realized by licensed motor fuel dealers or	4693
licensed permissive motor fuel dealers from the exchange of	4694
petroleum products, including motor fuel, between such dealers,	4695
provided that delivery of the petroleum products occurs at a	4696
refinery, terminal, pipeline, or marine vessel and that the	4697
exchanging dealers agree neither dealer shall require monetary	4698
compensation from the other for the value of the exchanged	4699
petroleum products other than such compensation for differences in	4700
product location or grade. Division (F)(2)(hh) of this section	4701
does not apply to amounts realized as a result of differences in	4702
location or grade of exchanged petroleum products or from	4703
handling, lubricity, dye, or other additive injections fees,	4704
pipeline security fees, or similar fees. As used in this division,	4705
"motor fuel," "licensed motor fuel dealer," "licensed permissive	4706
motor fuel dealer," and "terminal" have the same meanings as in	4707
section 5735.01 of the Revised Code.	4708

(ii) In the case of amounts collected by a licensed casino	4709
operator from casino gaming, amounts in excess of the casino	4710
operator's gross casino revenue. In this division, "casino	4711
operator" and "casino gaming" have the meanings defined in section	4712
3772.01 of the Revised Code, and "gross casino revenue" has the	4713
meaning defined in section 5753.01 of the Revised Code.	4714

(jj) Any receipts for which the tax imposed by this chapter	4715
is prohibited by the constitution or laws of the United States or	4716
the constitution of this state.	4717

(3) In the case of a taxpayer when acting as a real estate	4718
broker, "gross receipts" includes only the portion of any fee for	4719
the service of a real estate broker, or service of a real estate	4720
salesperson associated with that broker, that is retained by the	4721
broker and not paid to an associated real estate salesperson or	4722
another real estate broker. For the purposes of this division,	4723
"real estate broker" and "real estate salesperson" have the same	4724
meanings as in section 4735.01 of the Revised Code.	4725

(4) A taxpayer's method of accounting for gross receipts for	4726
a tax period shall be the same as the taxpayer's method of	4727
accounting for federal income tax purposes for the taxpayer's	4728
federal taxable year that includes the tax period. If a taxpayer's	4729
method of accounting for federal income tax purposes changes, its	4730
method of accounting for gross receipts under this chapter shall	4731
be changed accordingly.	4732

(G) "Taxable gross receipts" means gross receipts sitused to	4733
this state under section 5751.033 of the Revised Code.	4734

(H) A person has "substantial nexus with this state" if any	4735
of the following applies. The person:	4736

(1) Owns or uses a part or all of its capital in this state;

4737

(2) Holds a certificate of compliance with the laws of this	4738
state authorizing the person to do business in this state;	4739

(3) Has bright-line presence in this state;

4740

(4) Otherwise has nexus with this state to an extent that the	4741
person can be required to remit the tax imposed under this chapter	4742
under the Constitution of the United States.	4743

(I) A person has "bright-line presence" in this state for a	4744
reporting period and for the remaining portion of the calendar	4745
year if any of the following applies. The person:	4746

(1) Has at any time during the calendar year property in this	4747
state with an aggregate value of at least fifty thousand dollars.	4748
For the purpose of division (I)(1) of this section, owned property	4749
is valued at original cost and rented property is valued at eight	4750
times the net annual rental charge.	4751

(2) Has during the calendar year payroll in this state of at	4752
least fifty thousand dollars. Payroll in this state includes all	4753
of the following:	4754

(a) Any amount subject to withholding by the person under	4755
section 5747.06 of the Revised Code;	4756

(b) Any other amount the person pays as compensation to an	4757
individual under the supervision or control of the person for work	4758
done in this state; and	4759

(c) Any amount the person pays for services performed in this	4760
state on its behalf by another.	4761

(3) Has during the calendar year taxable gross receipts of at	4762
least five hundred thousand dollars.	4763

(4) Has at any time during the calendar year within this	4764
state at least twenty-five per cent of the person's total	4765
property, total payroll, or total gross receipts.	4766

(5) Is domiciled in this state as an individual or for	4767
corporate, commercial, or other business purposes.	4768

(J) "Tangible personal property" has the same meaning as in	4769
section 5739.01 of the Revised Code.	4770

(K) "Internal Revenue Code" means the Internal Revenue Code	4771
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	4772
this chapter that is not otherwise defined has the same meaning as	4773
when used in a comparable context in the laws of the United States	4774
relating to federal income taxes unless a different meaning is	4775
clearly required. Any reference in this chapter to the Internal	4776
Revenue Code includes other laws of the United States relating to	4777
federal income taxes.	4778

(L) "Calendar quarter" means a three-month period ending on	4779
the thirty-first day of March, the thirtieth day of June, the	4780
thirtieth day of September, or the thirty-first day of December.	4781

(M) "Tax period" means the calendar quarter or calendar year	4782
on the basis of which a taxpayer is required to pay the tax	4783
imposed under this chapter.	4784

(N) "Calendar year taxpayer" means a taxpayer for which the	4785
tax period is a calendar year.	4786

(O) "Calendar quarter taxpayer" means a taxpayer for which	4787
the tax period is a calendar quarter.	4788

(P) "Agent" means a person authorized by another person to	4789
act on its behalf to undertake a transaction for the other,	4790
including any of the following:	4791

(1) A person receiving a fee to sell financial instruments;

4792

(2) A person retaining only a commission from a transaction	4793
with the other proceeds from the transaction being remitted to	4794
another person;	4795

(3) A person issuing licenses and permits under section	4796
1533.13 of the Revised Code;	4797

(4) A lottery sales agent holding a valid license issued	4798
under section 3770.05 of the Revised Code;	4799

(5) A person acting as an agent of the division of liquor	4800
control under section 4301.17 of the Revised Code.	4801

(Q) "Received" includes amounts accrued under the accrual	4802
method of accounting.	4803

(R) "Reporting person" means a person in a consolidated	4804
elected taxpayer or combined taxpayer group that is designated by	4805
that group to legally bind the group for all filings and tax	4806
liabilities and to receive all legal notices with respect to	4807
matters under this chapter, or, for the purposes of section	4808
5751.04 of the Revised Code, a separate taxpayer that is not a	4809
member of such a group.	4810

Section 101.02. That existing sections 9.33, 153.65, 718.01,	4811
2937.221, 3354.13, 3355.10, 3357.12, 5503.31, 5503.32, 5513.01,	4812
5533.31, 5537.01, 5537.02, 5537.03, 5537.04, 5537.05, 5537.051,	4813
5537.06, 5537.07, 5537.08, 5537.09, 5537.11, 5537.12, 5537.13,	4814
5537.14, 5537.15, 5537.16, 5537.17, 5537.19, 5537.20, 5537.21,	4815
5537.22, 5537.24, 5537.25, 5537.26, 5537.27, 5537.28, 5537.30,	4816
5728.01, 5735.05, 5735.23, 5739.02, 5747.01, and 5751.01 and	4817
sections 126.60, 126.601, 126.602, 126.603, 126.604, and 126.605	4818
of the Revised Code are hereby repealed.	4819

Section 203.10. All items in this section are hereby	4820
appropriated as designated out of any moneys in the state treasury	4821
to the credit of the designated fund. For all appropriations made	4822
in this act, those in the first column are for fiscal year 2014	4823
and those in the second column are for fiscal year 2015. The	4824
appropriations made in this act are in addition to any other	4825
appropriations made for the FY 2014-FY 2015 biennium.	4826

Appropriations

DOT DEPARTMENT OF TRANSPORTATION	4827

Highway Operating Fund Group	4828

7002	772425	Highway Construction - Turnpike	$	200,000,000	$	300,000,000	4829
TOTAL HOF Highway Operating Fund Group			$	200,000,000	$	300,000,000	4830
TOTAL ALL BUDGET FUND GROUPS			$	200,000,000	$	300,000,000	4831

Within the limits set forth in this act, the Director of	4832
Budget and Management shall establish accounts indicating the	4833
source and amount of funds for each appropriation made in this	4834
act, and shall determine the form and manner in which	4835
appropriation accounts shall be maintained. Expenditures from	4836
appropriations contained in this act shall be accounted for as	4837
though made in the transportation budget act of the 130th General	4838
Assembly.	4839

The appropriations made in this act are subject to all	4840
provisions of the transportation budget act of the 130th General	4841
Assembly that are generally applicable to such appropriations.	4842

Section 815.10. The General Assembly, applying the principle	4843
stated in division (B) of section 1.52 of the Revised Code that	4844
amendments are to be harmonized if reasonably capable of	4845
simultaneous operation, finds that the following sections,	4846
presented in this act as composites of the sections as amended by	4847
the acts indicated, are the resulting versions of the sections in	4848
effect prior to the effective date of the sections as presented in	4849
this act:	4850

Section 5739.02 of the Revised Code as amended by both Am.	4851
Sub. H.B. 487 and Am. Sub. H.B. 508 of the 129th General Assembly.	4852

Section 5747.01 of the Revised Code as amended by Am. H.B.	4853
167, Sub. H.B. 365, and Am. Sub. H.B. 510, all of the 129th	4854
General Assembly.	4855

Section 5751.01 of the Revised Code as amended by both Am.	4856
Sub. H.B. 472 and Am. Sub. H.B. 510 of the 129th General Assembly.	4857

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Bill Text: OH HB51 | 2013-2014 | 130th General Assembly | Engrossed

Ohio House Bill 51 (Prior Session Legislation)

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