Enact Amya's Law for Child Access Prevention

hb901_00_IN

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 901

2025-2026

Representative Brewer

Cosponsors: Representatives
Piccolantonio, Brennan, Brownlee, Synenberg, Sigrist, McNally, Grim

To
amend sections 2923.11
,
5739.01, 5739.02, 5739.03, 5739.17
,
5747.08, and 5747.98 and to enact sections 2923.26, 2923.27
,
3701.982
,
and 5747.74 of the Revised Code
to
enact Amya's Law for Child Access Prevention to provide for the safe
storage of firearms, to authorize a nonrefundable income tax credit
for the purchase of secure storage and safety devices, and to exempt
such devices from sales and use tax.

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

Section
1.
That
sections 2923.11
,
5739.01, 5739.02, 5739.03, 5739.17
,
5747.08, and 5747.98 be amended and sections 2923.26, 2923.27
,
3701.982
,
and 5747.74 of the Revised Code be enacted to read as follows:

Sec.
2923.11.
As
used in sections 2923.11 to
2923.24

2923.27

of
the Revised Code:

(A)
"Deadly weapon" means any instrument, device, or thing
capable of inflicting death, and designed or specially adapted for
use as a weapon, or possessed, carried, or used as a weapon.

(B)(1)
"Firearm" means any deadly weapon capable of expelling or
propelling one or more projectiles by the action of an explosive or
combustible propellant. "Firearm" includes an unloaded
firearm, and any firearm that is inoperable but that can readily be
rendered operable.

(2)
When determining whether a firearm is capable of expelling or
propelling one or more projectiles by the action of an explosive or
combustible propellant, the trier of fact may rely upon
circumstantial evidence, including, but not limited to, the
representations and actions of the individual exercising control over
the firearm.

(C)
"Handgun" means any of the following:

(1)
Any firearm that has a short stock and is designed to be held and
fired by the use of a single hand;

(2)
Any combination of parts from which a firearm of a type described in
division (C)(1) of this section can be assembled.

(D)
"Semi-automatic firearm" means any firearm designed or
specially adapted to fire a single cartridge and automatically
chamber a succeeding cartridge ready to fire, with a single function
of the trigger.

(E)
"Automatic firearm" means any firearm designed or specially
adapted to fire a succession of cartridges with a single function of
the trigger.

(F)
"Sawed-off firearm" means a shotgun with a barrel less than
eighteen inches long, or a rifle with a barrel less than sixteen
inches long, or a shotgun or rifle less than twenty-six inches long
overall. "Sawed-off firearm" does not include any firearm
with an overall length of at least twenty-six inches that is approved
for sale by the federal bureau of alcohol, tobacco, firearms, and
explosives under the "Gun Control Act of 1968," 82 Stat.
1213, 18 U.S.C. 921(a)(3), but that is found by the bureau not to be
regulated under the "National Firearms Act," 68A Stat. 725
(1934), 26 U.S.C. 5845(a).

(G)
"Zip-gun" means any of the following:

(1)
Any firearm of crude and extemporized manufacture;

(2)
Any device, including without limitation a starter's pistol, that is
not designed as a firearm, but that is specially adapted for use as a
firearm;

(3)
Any industrial tool, signalling device, or safety device, that is not
designed as a firearm, but that as designed is capable of use as
such, when possessed, carried, or used as a firearm.

(H)
"Explosive device" means any device designed or specially
adapted to cause physical harm to persons or property by means of an
explosion, and consisting of an explosive substance or agency and a
means to detonate it. "Explosive device" includes without
limitation any bomb, any explosive demolition device, any blasting
cap or detonator containing an explosive charge, and any pressure
vessel that has been knowingly tampered with or arranged so as to
explode.

(I)
"Incendiary device" means any firebomb, and any device
designed or specially adapted to cause physical harm to persons or
property by means of fire, and consisting of an incendiary substance
or agency and a means to ignite it.

(J)
"Ballistic knife" means a knife with a detachable blade
that is propelled by a spring-operated mechanism.

(K)
"Dangerous ordnance" means any of the following, except as
provided in division (L) of this section:

(1)
Any automatic or sawed-off firearm, zip-gun, or ballistic knife;

(2)
Any explosive device or incendiary device;

(3)
Nitroglycerin, nitrocellulose, nitrostarch, PETN, cyclonite, TNT,
picric acid, and other high explosives; amatol, tritonal, tetrytol,
pentolite, pecretol, cyclotol, and other high explosive compositions;
plastic explosives; dynamite, blasting gelatin, gelatin dynamite,
sensitized ammonium nitrate, liquid-oxygen blasting explosives,
blasting powder, and other blasting agents; and any other explosive
substance having sufficient brisance or power to be particularly
suitable for use as a military explosive, or for use in mining,
quarrying, excavating, or demolitions;

(4)
Any firearm, rocket launcher, mortar, artillery piece, grenade, mine,
bomb, torpedo, or similar weapon, designed and manufactured for
military purposes, and the ammunition for that weapon;

(5)
Any firearm muffler or suppressor;

(6)
Any combination of parts that is intended by the owner for use in
converting any firearm or other device into a dangerous ordnance.

(L)
"Dangerous ordnance" does not include any of the following:

(1)
Any firearm, including a military weapon and the ammunition for that
weapon, and regardless of its actual age, that employs a percussion
cap or other obsolete ignition system, or that is designed and safe
for use only with black powder;

(2)
Any pistol, rifle, or shotgun, designed or suitable for sporting
purposes, including a military weapon as issued or as modified, and
the ammunition for that weapon, unless the firearm is an automatic or
sawed-off firearm;

(3)
Any cannon or other artillery piece that, regardless of its actual
age, is of a type in accepted use prior to 1887, has no mechanical,
hydraulic, pneumatic, or other system for absorbing recoil and
returning the tube into battery without displacing the carriage, and
is designed and safe for use only with black powder;

(4)
Black powder, priming quills, and percussion caps possessed and
lawfully used to fire a cannon of a type defined in division (L)(3)
of this section during displays, celebrations, organized matches or
shoots, and target practice, and smokeless and black powder, primers,
and percussion caps possessed and lawfully used as a propellant or
ignition device in small-arms or small-arms ammunition;

(5)
Dangerous ordnance that is inoperable or inert and cannot readily be
rendered operable or activated, and that is kept as a trophy,
souvenir, curio, or museum piece;

(6)
Any device that is expressly excepted from the definition of a
destructive device pursuant to the "Gun Control Act of 1968,"
82 Stat. 1213, 18 U.S.C. 921(a)(4), as amended, and regulations
issued under that act;

(7)
Any firearm with an overall length of at least twenty-six inches that
is approved for sale by the federal bureau of alcohol, tobacco,
firearms, and explosives under the "Gun Control Act of 1968,"
82 Stat. 1213, 18 U.S.C. 921(a)(3), but that is found by the bureau
not to be regulated under the "National Firearms Act," 68A
Stat. 725 (1934), 26 U.S.C. 5845(a).

(M)
"Explosive" means any chemical compound, mixture, or
device, the primary or common purpose of which is to function by
explosion. "Explosive" includes all materials that have
been classified as division 1.1, division 1.2, division 1.3, or
division 1.4 explosives by the United States department of
transportation in its regulations and includes, but is not limited
to, dynamite, black powder, pellet powders, initiating explosives,
blasting caps, electric blasting caps, safety fuses, fuse igniters,
squibs, cordeau detonant fuses, instantaneous fuses, and igniter
cords and igniters. "Explosive" does not include
"fireworks," as defined in section 3743.01 of the Revised
Code, or any substance or material otherwise meeting the definition
of explosive set forth in this section that is manufactured, sold,
possessed, transported, stored, or used in any activity described in
section 3743.80 of the Revised Code, provided the activity is
conducted in accordance with all applicable laws, rules, and
regulations, including, but not limited to, the provisions of section
3743.80 of the Revised Code and the rules of the fire marshal adopted
pursuant to section 3737.82 of the Revised Code.

(N)(1)
"Concealed handgun license" or "license to carry a
concealed handgun" means, subject to division (N)(2) of this
section, a license or temporary emergency license to carry a
concealed handgun issued under section 2923.125 or 2923.1213 of the
Revised Code or a license to carry a concealed handgun issued by
another state with which the attorney general has entered into a
reciprocity agreement under section 109.69 of the Revised Code.

(2)
A reference in any provision of the Revised Code to a concealed
handgun license issued under section 2923.125 of the Revised Code or
a license to carry a concealed handgun issued under section 2923.125
of the Revised Code means only a license of the type that is
specified in that section. A reference in any provision of the
Revised Code to a concealed handgun license issued under section
2923.1213 of the Revised Code, a license to carry a concealed handgun
issued under section 2923.1213 of the Revised Code, or a license to
carry a concealed handgun on a temporary emergency basis means only a
license of the type that is specified in section 2923.1213 of the
Revised Code. A reference in any provision of the Revised Code to a
concealed handgun license issued by another state or a license to
carry a concealed handgun issued by another state means only a
license issued by another state with which the attorney general has
entered into a reciprocity agreement under section 109.69 of the
Revised Code.

(O)
"Valid concealed handgun license" or "valid license to
carry a concealed handgun" means a concealed handgun license
that is currently valid, that is not under a suspension under
division (A)(1) of section 2923.128 of the Revised Code, under
section 2923.1213 of the Revised Code, or under a suspension
provision of the state other than this state in which the license was
issued, and that has not been revoked under division (B)(1) of
section 2923.128 of the Revised Code, under section 2923.1213 of the
Revised Code, or under a revocation provision of the state other than
this state in which the license was issued.

(P)
"Misdemeanor punishable by imprisonment for a term exceeding one
year" does not include any of the following:

(1)
Any federal or state offense pertaining to antitrust violations,
unfair trade practices, restraints of trade, or other similar
offenses relating to the regulation of business practices;

(2)
Any misdemeanor offense punishable by a term of imprisonment of two
years or less.

(Q)
"Alien registration number" means the number issued by the
United States citizenship and immigration services agency that is
located on the alien's permanent resident card and may also be
commonly referred to as the "USCIS number" or the "alien
number."

(R)
"Active duty" has the same meaning as defined in 10 U.S.C.
101.

Sec.
2923.26.
(A)
As used in this section:

(1)
"Federally licensed firearms dealer" has the same meaning
as in section 5502.63 of the Revised Code.

(2)
"Firearm hold agreement" means an agreement between the
owner of a lawfully possessed firearm and a federally licensed
firearms dealer or county or municipal law enforcement agency that
includes all of the following:

(a)
That the federally licensed firearms dealer or county or municipal
law enforcement agency will take physical possession of the owner's
lawfully possessed firearm;

(b)
That the federally licensed firearms dealer or county or municipal
law enforcement agency will hold the owner's lawfully possessed
firearm for an agreed period of time;

(c)
That the federally licensed firearms dealer or county or municipal
law enforcement agency will return the firearm to the owner at the
expiration of the agreed period of time.

(B)
If a federally licensed firearms dealer or county or municipal law
enforcement agency enters into a firearm hold agreement with the
owner of a lawfully possessed firearm, the federally licensed
firearms dealer or county or municipal law enforcement agency who
enters into the firearm hold agreement with the owner shall provide
the owner with the pamphlet described in section 3701.982 of the
Revised Code at the time that the federally licensed firearms dealer
or county or municipal law enforcement agency enters into the firearm
hold agreement with the owner of the lawfully possessed firearm.

(C)(1)
Subject to division (C)(2) of this section, no federally licensed
firearms dealer or county or municipal law enforcement agency who
enters into a firearm hold agreement with an owner of a lawfully
possessed firearm is liable in damages in a civil action for the
injury, death, or loss to person or property that arose from an act
or omission associated with the federally licensed firearms dealer or
county or municipal law enforcement agency returning the firearm to
the owner under the firearm hold agreement, unless the act or
omission constitutes unlawful conduct.

(2)
Division (C)(1) of this section does not eliminate, limit, or reduce
any other immunity or defense that a county or municipal law
enforcement agency may be entitled to under Chapter 2744. or any
other provision of the Revised Code or under the common law of this
state.

(D)(1)
If a federally licensed firearms dealer or county or municipal law
enforcement agency enters into a firearm hold agreement with the
owner of a lawfully possessed firearm and if after the expiration of
the agreed period of time the owner of the firearm does not claim the
firearm, the federally licensed firearms dealer or county or
municipal law enforcement agency shall contact the owner of the
firearm at least two times within the following sixty days requesting
that the owner claim the firearm.

(2)
If a federally licensed firearms dealer has physical possession of
the firearm and the firearm remains unclaimed after the federally
licensed firearm dealer complies with division (D)(1) of this
section, then the federally licensed firearms dealer shall surrender
the firearm to a county or municipal law enforcement agency.

(3)
If a county or municipal law enforcement agency has physical
possession of the firearm and the firearm remains unclaimed after the
county or municipal law enforcement agency complies with division
(D)(1) of this section or the firearm has been surrendered to the
county or municipal law enforcement agency as described in division
(D)(2) of this section, then the county or municipal law enforcement
agency shall dispose of the firearm in accordance with the county or
municipal law enforcement agency's policies and procedures for the
disposal of a firearm in police custody.

Sec.
2923.27.
(A)
As used in this section:

(1)
"Residence" has the same meaning as in section 2901.05 of
the Revised Code.

(2)
"Secure gun storage or safety device" means any of the
following:

(a)
A device that, when installed on a firearm, is designed to prevent
the firearm from being operated without first deactivating the
device;

(b)
A device incorporated into the design of the firearm that is designed
to prevent the operation of the firearm by anyone not having access
to the device;

(c)
A safe, gun safe, gun case, lock box, or other device that is
designed to be or can be used to store a firearm and that is designed
to be unlocked only by means of a key, a combination, or other
similar means.

(3)
A firearm is "securely stored" if, at any time that the
firearm is not being possessed or carried, a secure gun storage or
safety device is being used.

(B)
Except as provided in division (C) of this section, no person shall
knowingly store or leave a firearm in a manner or location at which a
minor may gain access to the firearm.

(C)
This section does not apply in any of the following circumstances:

(1)
The firearm was securely stored at the time the minor gained access
to the firearm.

(2)
The minor gained access to the firearm by unlawfully entering a
residence.

(3)
The minor gained access to the firearm while the firearm was
temporarily stored with a federally licensed firearms dealer or
county or municipal law enforcement agency under section 2923.26 of
the Revised Code.

(4)
The minor gained access to the firearm with the consent of the
minor's parent or guardian.

(5)
The minor gained access to the firearm for a lawful purpose,
including for hunting, sporting, educational purposes, or
self-defense.

(D)(1)
Whoever violates division (B) of this section is guilty of improper
storage of a firearm. Except as otherwise provided in division (D)(2)
of this section, if the offense results in physical harm to persons,
including the minor, improper storage of a firearm is a first degree
misdemeanor.

(2)
If the offense results in serious physical harm to persons, including
the minor, improper storage of a firearm is a fourth degree felony.

Sec.
3701.982.
(A)
As used in this section, "secure gun storage or safety device"
has the same meaning as in section 2923.27 of the Revised Code.

(B)
The department of health, in consultation with the department of
veterans services, shall prepare a pamphlet with all of the following
information:

(1)
Mental health resources, including how to access the following:

(a)
The 9-8-8 suicide prevention and mental health crisis hotline and the
global crisis text line;

(b)
The United States department of veterans affairs' veterans crisis
line;

(c)
The United States department of veterans affairs' suicide prevention
toolkit.

(2)
A list of local veterans organizations, including veterans clinics;

(3)
Guidance on secure gun storage and safety devices, including any
discounted or complimentary firearm safety device programs available
for veterans.

(C)
The department of health and the department of veterans services
shall each publish the pamphlet described in division (B) of this
section on each department's web site.

Sec.
5739.01.
As
used in this chapter:

(A)
"Person" includes individuals, receivers, assignees,
trustees in bankruptcy, estates, firms, partnerships, associations,
joint-stock companies, joint ventures, clubs, societies,
corporations, the state and its political subdivisions, and
combinations of individuals of any form.

(B)
"Sale" and "selling" include all of the following
transactions for a consideration in any manner, whether absolutely or
conditionally, whether for a price or rental, in money or by
exchange, and by any means whatsoever:

(1)
All transactions by which title or possession, or both, of tangible
personal property, is or is to be transferred, or a license to use or
consume tangible personal property is or is to be granted;

(2)
All transactions by which lodging by a hotel is or is to be furnished
to transient guests;

(3)
All transactions by which:

(a)
An item of tangible personal property is or is to be repaired, except
property, the purchase of which would not be subject to the tax
imposed by section 5739.02 of the Revised Code;

(b)
An item of tangible personal property is or is to be installed,
except property, the purchase of which would not be subject to the
tax imposed by section 5739.02 of the Revised Code or property that
is or is to be incorporated into and will become a part of a
production, transmission, transportation, or distribution system for
the delivery of a public utility service;

(c)
The service of washing, cleaning, waxing, polishing, or painting a
motor vehicle is or is to be furnished;

(d)
Laundry and dry cleaning services are or are to be provided;

(e)
Automatic data processing, computer services, or electronic
information services are or are to be provided for use in business
when the true object of the transaction is the receipt by the
consumer of automatic data processing, computer services, or
electronic information services rather than the receipt of personal
or professional services to which automatic data processing, computer
services, or electronic information services are incidental or
supplemental. Notwithstanding any other provision of this chapter,
such transactions that occur between members of an affiliated group
are not sales. An "affiliated group" means two or more
persons related in such a way that one person owns or controls the
business operation of another member of the group. In the case of
corporations with stock, one corporation owns or controls another if
it owns more than fifty per cent of the other corporation's common
stock with voting rights.

(f)
Telecommunications service, including prepaid calling service,
prepaid wireless calling service, or ancillary service, is or is to
be provided, but not including coin-operated telephone service;

(g)
Landscaping and lawn care service is or is to be provided;

(h)
Private investigation and security service is or is to be provided;

(i)
Information services or tangible personal property is provided or
ordered by means of a nine hundred telephone call;

(j)
Building maintenance and janitorial service is or is to be provided;

(k)
Exterminating service is or is to be provided;

(l)
Physical fitness facility service is or is to be provided;

(m)
Recreation and sports club service is or is to be provided;

(n)
Satellite broadcasting service is or is to be provided;

(o)
Personal care service is or is to be provided to an individual. As
used in this division, "personal care service" includes
skin care, the application of cosmetics, manicuring, pedicuring, hair
removal, tattooing, body piercing, tanning, massage, and other
similar services. "Personal care service" does not include
a service provided by or on the order of a licensed physician,
certified nurse-midwife, clinical nurse specialist, certified nurse
practitioner, or chiropractor, or the cutting, coloring, or styling
of an individual's hair.

(p)
The transportation of persons by motor vehicle or aircraft is or is
to be provided, when the transportation is entirely within this
state, except for transportation provided by an ambulance service, by
a transit bus, as defined in section 5735.01 of the Revised Code, and
transportation provided by a citizen of the United States holding a
certificate of public convenience and necessity issued under 49
U.S.C. 41102;

(q)
Motor vehicle towing service is or is to be provided. As used in this
division, "motor vehicle towing service" means the towing
or conveyance of a wrecked, disabled, or illegally parked motor
vehicle.

(r)
Snow removal service is or is to be provided. As used in this
division, "snow removal service" means the removal of snow
by any mechanized means, but does not include the providing of such
service by a person that has less than five thousand dollars in sales
of such service during the calendar year.

(s)
Electronic publishing service is or is to be provided to a consumer
for use in business, except that such transactions occurring between
members of an affiliated group, as defined in division (B)(3)(e) of
this section, are not sales.

(4)
All transactions by which printed, imprinted, overprinted,
lithographic, multilithic, blueprinted, photostatic, or other
productions or reproductions of written or graphic matter are or are
to be furnished or transferred;

(5)
The production or fabrication of tangible personal property for a
consideration for consumers who furnish either directly or indirectly
the materials used in the production of fabrication work; and include
the furnishing, preparing, or serving for a consideration of any
tangible personal property consumed on the premises of the person
furnishing, preparing, or serving such tangible personal property.
Except as provided in section 5739.03 of the Revised Code, a
construction contract pursuant to which tangible personal property is
or is to be incorporated into a structure or improvement on and
becoming a part of real property is not a sale of such tangible
personal property. The construction contractor is the consumer of
such tangible personal property, provided that the sale and
installation of carpeting, the sale and installation of agricultural
land tile, the sale and erection or installation of portable grain
bins, or the provision of landscaping and lawn care service and the
transfer of property as part of such service is never a construction
contract.

As
used in division (B)(5) of this section:

(a)
"Agricultural land tile" means fired clay or concrete tile,
or flexible or rigid perforated plastic pipe or tubing, incorporated
or to be incorporated into a subsurface drainage system appurtenant
to land used or to be used primarily in production by farming,
agriculture, horticulture, or floriculture. The term does not include
such materials when they are or are to be incorporated into a
drainage system appurtenant to a building or structure even if the
building or structure is used or to be used in such production.

(b)
"Portable grain bin" means a structure that is used or to
be used by a person engaged in farming or agriculture to shelter the
person's grain and that is designed to be disassembled without
significant damage to its component parts.

(6)
All transactions in which all of the shares of stock of a closely
held corporation are transferred, or an ownership interest in a
pass-through entity, as defined in section 5733.04 of the Revised
Code, is transferred, if the corporation or pass-through entity is
not engaging in business and its entire assets consist of boats,
planes, motor vehicles, or other tangible personal property operated
primarily for the use and enjoyment of the shareholders or owners;

(7)
All transactions in which a warranty, maintenance or service
contract, or similar agreement by which the vendor of the warranty,
contract, or agreement agrees to repair or maintain the tangible
personal property of the consumer is or is to be provided;

(8)
The transfer of copyrighted motion picture films used solely for
advertising purposes, except that the transfer of such films for
exhibition purposes is not a sale;

(9)
All transactions by which tangible personal property is or is to be
stored, except such property that the consumer of the storage holds
for sale in the regular course of business;

(10)
All transactions in which "guaranteed auto protection" is
provided whereby a person promises to pay to the consumer the
difference between the amount the consumer receives from motor
vehicle insurance and the amount the consumer owes to a person
holding title to or a lien on the consumer's motor vehicle in the
event the consumer's motor vehicle suffers a total loss under the
terms of the motor vehicle insurance policy or is stolen and not
recovered, if the protection and its price are included in the
purchase or lease agreement;

(11)(a)
Except as provided in division (B)(11)(b) of this section, all
transactions by which health care services are paid for, reimbursed,
provided, delivered, arranged for, or otherwise made available by a
medicaid health insuring corporation pursuant to the corporation's
contract with the state.

(b)
If the centers for medicare and medicaid services of the United
States department of health and human services determines that the
taxation of transactions described in division (B)(11)(a) of this
section constitutes an impermissible health care-related tax under
the "Social Security Act," section 1903(w), 42 U.S.C.
1396b(w), and regulations adopted thereunder, the medicaid director
shall notify the tax commissioner of that determination. Beginning
with the first day of the month following that notification, the
transactions described in division (B)(11)(a) of this section are not
sales for the purposes of this chapter or Chapter 5741. of the
Revised Code. The tax commissioner shall order that the collection of
taxes under sections 5739.02, 5739.021, 5739.023, 5739.026, 5741.02,
5741.021, 5741.022, and 5741.023 of the Revised Code shall cease for
transactions occurring on or after that date.

(12)
All transactions by which a specified digital product is provided for
permanent use or less than permanent use, regardless of whether
continued payment is required.

(13)
All transactions by a delivery network company for the company's
delivery network services, provided the company has a waiver issued
under section 5741.072 of the Revised Code.

Except
as provided in this section, "sale" and "selling"
do not include transfers of interest in leased property where the
original lessee and the terms of the original lease agreement remain
unchanged, or professional, insurance, or personal service
transactions that involve the transfer of tangible personal property
as an inconsequential element, for which no separate charges are
made.

(C)
"Vendor" means the person providing the service or by whom
the transfer effected or license given by a sale is or is to be made
or given and, for sales described in division (B)(3)(i) of this
section, the telecommunications service vendor that provides the nine
hundred telephone service; if two or more persons are engaged in
business at the same place of business under a single trade name in
which all collections on account of sales by each are made, such
persons shall constitute a single vendor.

Physicians,
certified nurse-midwives, clinical nurse specialists, certified nurse
practitioners, dentists, hospitals, and veterinarians who are engaged
in selling tangible personal property as received from others, such
as eyeglasses, mouthwashes, dentifrices, or similar articles, are
vendors. Veterinarians who are engaged in transferring to others for
a consideration drugs, the dispensing of which does not require an
order of a licensed veterinarian, physician, certified nurse-midwife,
clinical nurse specialist, or certified nurse practitioner under
federal law, are vendors.

The
operator of any peer-to-peer car sharing program shall be considered
to be the vendor.

(D)(1)
"Consumer" means the person for whom the service is
provided, to whom the transfer effected or license given by a sale is
or is to be made or given, to whom the service described in division
(B)(3)(f) or (i) of this section is charged, or to whom the admission
is granted.

(2)
Physicians, certified nurse-midwives, clinical nurse specialists,
certified nurse practitioners, dentists, hospitals, and blood banks
operated by nonprofit institutions and persons licensed to practice
veterinary medicine, surgery, and dentistry are consumers of all
tangible personal property and services purchased by them in
connection with the practice of medicine, dentistry, the rendition of
hospital or blood bank service, or the practice of veterinary
medicine, surgery, and dentistry. In addition to being consumers of
drugs administered by them or by their assistants according to their
direction, veterinarians also are consumers of drugs that under
federal law may be dispensed only by or upon the order of a licensed
veterinarian, physician, certified nurse-midwife, clinical nurse
specialist, or certified nurse practitioner, when transferred by them
to others for a consideration to provide treatment to animals as
directed by the veterinarian.

(3)
A person who performs a facility management, or similar service
contract for a contractee is a consumer of all tangible personal
property and services purchased for use in connection with the
performance of such contract, regardless of whether title to any such
property vests in the contractee. The purchase of such property and
services is not subject to the exception for resale under division
(E) of this section.

(4)(a)
In the case of a person who purchases printed matter for the purpose
of distributing it or having it distributed to the public or to a
designated segment of the public, free of charge, that person is the
consumer of that printed matter, and the purchase of that printed
matter for that purpose is a sale.

(b)
In the case of a person who produces, rather than purchases, printed
matter for the purpose of distributing it or having it distributed to
the public or to a designated segment of the public, free of charge,
that person is the consumer of all tangible personal property and
services purchased for use or consumption in the production of that
printed matter. That person is not entitled to claim exemption under
division (B)(42)(f) of section 5739.02 of the Revised Code for any
material incorporated into the printed matter or any equipment,
supplies, or services primarily used to produce the printed matter.

(c)
The distribution of printed matter to the public or to a designated
segment of the public, free of charge, is not a sale to the members
of the public to whom the printed matter is distributed or to any
persons who purchase space in the printed matter for advertising or
other purposes.

(5)
A person who makes sales of any of the services listed in division
(B)(3) of this section is the consumer of any tangible personal
property used in performing the service. The purchase of that
property is not subject to the resale exception under division (E) of
this section.

(6)
A person who engages in highway transportation for hire is the
consumer of all packaging materials purchased by that person and used
in performing the service, except for packaging materials sold by
such person in a transaction separate from the service.

(7)
In the case of a transaction for health care services under division
(B)(11) of this section, a medicaid health insuring corporation is
the consumer of such services. The purchase of such services by a
medicaid health insuring corporation is not subject to the exception
for resale under division (E) of this section or to the exemptions
provided under divisions (B)(12), (18), (19), and (22) of section
5739.02 of the Revised Code.

(E)
"Retail sale" and "sales at retail" include all
sales, except those in which the purpose of the consumer is to resell
the thing transferred or benefit of the service provided, by a person
engaging in business, in the form in which the same is, or is to be,
received by the person.

(F)
"Business" includes any activity engaged in by any person
with the object of gain, benefit, or advantage, either direct or
indirect. "Business" does not include the activity of a
person in managing and investing the person's own funds.

(G)
"Engaging in business" means commencing, conducting, or
continuing in business, and liquidating a business when the
liquidator thereof holds itself out to the public as conducting such
business. Making a casual sale is not engaging in business.

(H)(1)(a)
"Price," except as provided in divisions (H)(2), (3), and
(4) of this section, means the total amount of consideration,
including cash, credit, property, and services, for which tangible
personal property or services are sold, leased, or rented, valued in
money, whether received in money or otherwise, without any deduction
for any of the following:

(i)
The vendor's cost of the property sold;

(ii)
The cost of materials used, labor or service costs, interest, losses,
all costs of transportation to the vendor, all taxes imposed on the
vendor, including the tax imposed under Chapter 5751. of the Revised
Code, and any other expense of the vendor;

(iii)
Charges by the vendor for any services necessary to complete the
sale;

(iv)
Delivery charges. As used in this division, "delivery charges"
means charges by the vendor for preparation and delivery to a
location designated by the consumer of tangible personal property or
a service, including transportation, shipping, postage, handling,
crating, and packing.

(v)
Installation charges;

(vi)
Credit for any trade-in.

(b)
"Price" includes consideration received by the vendor from
a third party, if the vendor actually receives the consideration from
a party other than the consumer, and the consideration is directly
related to a price reduction or discount on the sale; the vendor has
an obligation to pass the price reduction or discount through to the
consumer; the amount of the consideration attributable to the sale is
fixed and determinable by the vendor at the time of the sale of the
item to the consumer; and one of the following criteria is met:

(i)
The consumer presents a coupon, certificate, or other document to the
vendor to claim a price reduction or discount where the coupon,
certificate, or document is authorized, distributed, or granted by a
third party with the understanding that the third party will
reimburse any vendor to whom the coupon, certificate, or document is
presented;

(ii)
The consumer identifies the consumer's self to the seller as a member
of a group or organization entitled to a price reduction or discount.
A preferred customer card that is available to any patron does not
constitute membership in such a group or organization.

(iii)
The price reduction or discount is identified as a third party price
reduction or discount on the invoice received by the consumer, or on
a coupon, certificate, or other document presented by the consumer.

(c)
"Price" does not include any of the following:

(i)
Discounts, including cash, term, or coupons that are not reimbursed
by a third party that are allowed by a vendor and taken by a consumer
on a sale;

(ii)
Interest, financing, and carrying charges from credit extended on the
sale of tangible personal property or services, if the amount is
separately stated on the invoice, bill of sale, or similar document
given to the purchaser;

(iii)
Any taxes legally imposed directly on the consumer that are
separately stated on the invoice, bill of sale, or similar document
given to the consumer. For the purpose of this division, the tax
imposed under Chapter 5751. of the Revised Code is not a tax directly
on the consumer, even if the tax or a portion thereof is separately
stated.

(iv)
Notwithstanding divisions (H)(1)(b)(i) to (iii) of this section, any
discount allowed by an automobile manufacturer to its employee, or to
the employee of a supplier, on the purchase of a new motor vehicle
from a new motor vehicle dealer in this state.

(v)
The dollar value of a gift card that is not sold by a vendor or
purchased by a consumer and that is redeemed by the consumer in
purchasing tangible personal property or services if the vendor is
not reimbursed and does not receive compensation from a third party
to cover all or part of the gift card value. For the purposes of this
division, a gift card is not sold by a vendor or purchased by a
consumer if it is distributed pursuant to an awards, loyalty, or
promotional program. Past and present purchases of tangible personal
property or services by the consumer shall not be treated as
consideration exchanged for a gift card.

(2)
In the case of a sale of any new motor vehicle by a new motor vehicle
dealer, as defined in section 4517.01 of the Revised Code, in which
another motor vehicle is accepted by the dealer as part of the
consideration received, "price" has the same meaning as in
division (H)(1) of this section, reduced by the credit afforded the
consumer by the dealer for the motor vehicle received in trade.

(3)
In the case of a sale of any watercraft or outboard motor by a
watercraft dealer licensed in accordance with section 1547.543 of the
Revised Code, in which another watercraft, watercraft and trailer, or
outboard motor is accepted by the dealer as part of the consideration
received, "price" has the same meaning as in division
(H)(1) of this section, reduced by the credit afforded the consumer
by the dealer for the watercraft, watercraft and trailer, or outboard
motor received in trade. As used in this division, "watercraft"
includes an outdrive unit attached to the watercraft.

(4)
In the case of transactions for health care services under division
(B)(11) of this section, "price" means the amount of
managed care premiums received each month by a medicaid health
insuring corporation.

(I)
"Receipts" means the total amount of the prices of the
sales of vendors, provided that the dollar value of gift cards
distributed pursuant to an awards, loyalty, or promotional program,
and cash discounts allowed and taken on sales at the time they are
consummated are not included, minus any amount deducted as a bad debt
pursuant to section 5739.121 of the Revised Code. "Receipts"
does not include the sale price of property returned or services
rejected by consumers when the full sale price and tax are refunded
either in cash or by credit.

(J)
"Place of business" means any location at which a person
engages in business.

(K)
"Premises" includes any real property or portion thereof
upon which any person engages in selling tangible personal property
at retail or making retail sales and also includes any real property
or portion thereof designated for, or devoted to, use in conjunction
with the business engaged in by such person.

(L)
"Casual sale" means a sale of an item of tangible personal
property, in person or online, that was obtained by the person making
the sale, through purchase or otherwise, for the person's own use and
was previously subject to any state's taxing jurisdiction on its sale
or use, and includes such items acquired for the seller's use that
are sold by an auctioneer employed directly by the person for such
purpose, provided the location of such sales is not the auctioneer's
physical permanent place of business. As used in this division,
"permanent place of business" includes any physical
location where such auctioneer has conducted more than two auctions
during the year.

(M)
"Hotel" means every establishment kept, used, maintained,
advertised, or held out to the public to be a place where sleeping
accommodations are offered to guests, in which five or more rooms are
used for the accommodation of such guests, whether the rooms are in
one or several structures, except as otherwise provided in section
5739.091 of the Revised Code.

(N)
"Transient guests" means persons occupying a room or rooms
for sleeping accommodations for less than thirty consecutive days.

(O)
"Making retail sales" means the effecting of transactions
wherein one party is obligated to pay the price and the other party
is obligated to provide a service or to transfer title to or
possession of the item sold. "Making retail sales" does not
include the preliminary acts of promoting or soliciting the retail
sales, other than the distribution of printed matter which displays
or describes and prices the item offered for sale, nor does it
include delivery of a predetermined quantity of tangible personal
property or transportation of property or personnel to or from a
place where a service is performed.

(P)
"Used directly in the rendition of a public utility service"
means that property that is to be incorporated into and will become a
part of the consumer's production, transmission, transportation, or
distribution system and that retains its classification as tangible
personal property after such incorporation; fuel or power used in the
production, transmission, transportation, or distribution system; and
tangible personal property used in the repair and maintenance of the
production, transmission, transportation, or distribution system,
including only such motor vehicles as are specially designed and
equipped for such use. Tangible personal property and services used
primarily in providing highway transportation for hire are not used
directly in the rendition of a public utility service. In this
definition, "public utility" includes a citizen of the
United States holding, and required to hold, a certificate of public
convenience and necessity issued under 49 U.S.C. 41102.

(Q)
"Refining" means removing or separating a desirable product
from raw or contaminated materials by distillation or physical,
mechanical, or chemical processes.

(R)
"Assembly" and "assembling" mean attaching or
fitting together parts to form a product, but do not include
packaging a product.

(S)
"Manufacturing operation" means a process in which
materials are changed, converted, or transformed into a different
state or form from which they previously existed and includes
refining materials, assembling parts, and preparing raw materials and
parts by mixing, measuring, blending, or otherwise committing such
materials or parts to the manufacturing process. "Manufacturing
operation" does not include packaging.

(T)
"Fiscal officer" means, with respect to a regional transit
authority, the secretary-treasurer thereof, and with respect to a
county that is a transit authority, the fiscal officer of the county
transit board if one is appointed pursuant to section 306.03 of the
Revised Code or the county auditor if the board of county
commissioners operates the county transit system.

(U)
"Transit authority" means a regional transit authority
created pursuant to section 306.31 of the Revised Code or a county in
which a county transit system is created pursuant to section 306.01
of the Revised Code. For the purposes of this chapter, a transit
authority must extend to at least the entire area of a single county.
A transit authority that includes territory in more than one county
must include all the area of the most populous county that is a part
of such transit authority. County population shall be measured by the
most recent census taken by the United States census bureau.

(V)
"Legislative authority" means, with respect to a regional
transit authority, the board of trustees thereof, and with respect to
a county that is a transit authority, the board of county
commissioners.

(W)
"Territory of the transit authority" means all of the area
included within the territorial boundaries of a transit authority as
they from time to time exist. Such territorial boundaries must at all
times include all the area of a single county or all the area of the
most populous county that is a part of such transit authority. County
population shall be measured by the most recent census taken by the
United States census bureau.

(X)
"Providing a service" means providing or furnishing
anything described in division (B)(3) of this section for
consideration.

(Y)(1)(a)
"Automatic data processing" means processing of others'
data, including keypunching or similar data entry services together
with verification thereof, or providing access to computer equipment
for the purpose of processing data.

(b)
"Computer services" means providing services consisting of
specifying computer hardware configurations and evaluating technical
processing characteristics, computer programming, and training of
computer programmers and operators, provided in conjunction with and
to support the sale, lease, or operation of taxable computer
equipment or systems.

(c)
"Electronic information services" means providing access to
computer equipment by means of telecommunications equipment for the
purpose of either of the following:

(i)
Examining or acquiring data stored in or accessible to the computer
equipment;

(ii)
Placing data into the computer equipment to be retrieved by
designated recipients with access to the computer equipment.

"Electronic
information services" does not include electronic publishing.

(d)
"Automatic data processing, computer services, or electronic
information services" shall not include personal or professional
services.

(2)
As used in divisions (B)(3)(e) and (Y)(1) of this section, "personal
and professional services" means all services other than
automatic data processing, computer services, or electronic
information services, including but not limited to:

(a)
Accounting and legal services such as advice on tax matters, asset
management, budgetary matters, quality control, information security,
and auditing and any other situation where the service provider
receives data or information and studies, alters, analyzes,
interprets, or adjusts such material;

(b)
Analyzing business policies and procedures;

(c)
Identifying management information needs;

(d)
Feasibility studies, including economic and technical analysis of
existing or potential computer hardware or software needs and
alternatives;

(e)
Designing policies, procedures, and custom software for collecting
business information, and determining how data should be summarized,
sequenced, formatted, processed, controlled, and reported so that it
will be meaningful to management;

(f)
Developing policies and procedures that document how business events
and transactions are to be authorized, executed, and controlled;

(g)
Testing of business procedures;

(h)
Training personnel in business procedure applications;

(i)
Providing credit information to users of such information by a
consumer reporting agency, as defined in the "Fair Credit
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f),
or as hereafter amended, including but not limited to gathering,
organizing, analyzing, recording, and furnishing such information by
any oral, written, graphic, or electronic medium;

(j)
Providing debt collection services by any oral, written, graphic, or
electronic means;

(k)
Providing digital advertising services;

(l)
Providing services to electronically file any federal, state, or
local individual income tax return, report, or other related document
or schedule with a federal, state, or local government entity or to
electronically remit a payment of any such individual income tax to
such an entity. For the purpose of this division, "individual
income tax" does not include federal, state, or local taxes
withheld by an employer from an employee's compensation.

The
services listed in divisions (Y)(2)(a) to (l) of this section are not
automatic data processing or computer services.

(Z)
"Highway transportation for hire" means the transportation
of personal property belonging to others for consideration by any of
the following:

(1)
The holder of a permit or certificate issued by this state or the
United States authorizing the holder to engage in transportation of
personal property belonging to others for consideration over or on
highways, roadways, streets, or any similar public thoroughfare;

(2)
A person who engages in the transportation of personal property
belonging to others for consideration over or on highways, roadways,
streets, or any similar public thoroughfare but who could not have
engaged in such transportation on December 11, 1985, unless the
person was the holder of a permit or certificate of the types
described in division (Z)(1) of this section;

(3)
A person who leases a motor vehicle to and operates it for a person
described by division (Z)(1) or (2) of this section.

"Highway
transportation for hire" does not include delivery network
services.

(AA)(1)
"Telecommunications service" means the electronic
transmission, conveyance, or routing of voice, data, audio, video, or
any other information or signals to a point, or between or among
points. "Telecommunications service" includes such
transmission, conveyance, or routing in which computer processing
applications are used to act on the form, code, or protocol of the
content for purposes of transmission, conveyance, or routing without
regard to whether the service is referred to as voice-over internet
protocol service or is classified by the federal communications
commission as enhanced or value-added. "Telecommunications
service" does not include any of the following:

(a)
Data processing and information services that allow data to be
generated, acquired, stored, processed, or retrieved and delivered by
an electronic transmission to a consumer where the consumer's primary
purpose for the underlying transaction is the processed data or
information;

(b)
Installation or maintenance of wiring or equipment on a customer's
premises;

(c)
Tangible personal property;

(d)
Advertising, including directory advertising;

(e)
Billing and collection services provided to third parties;

(f)
Internet access service;

(g)
Radio and television audio and video programming services, regardless
of the medium, including the furnishing of transmission, conveyance,
and routing of such services by the programming service provider.
Radio and television audio and video programming services include,
but are not limited to, cable service, as defined in 47 U.S.C.
522(6), and audio and video programming services delivered by
commercial mobile radio service providers, as defined in 47 C.F.R.
20.3;

(h)
Ancillary service;

(i)
Digital products delivered electronically, including software, music,
video, reading materials, or ring tones.

(2)
"Ancillary service" means a service that is associated with
or incidental to the provision of telecommunications service,
including conference bridging service, detailed telecommunications
billing service, directory assistance, vertical service, and voice
mail service. As used in this division:

(a)
"Conference bridging service" means an ancillary service
that links two or more participants of an audio or video conference
call, including providing a telephone number. "Conference
bridging service" does not include telecommunications services
used to reach the conference bridge.

(b)
"Detailed telecommunications billing service" means an
ancillary service of separately stating information pertaining to
individual calls on a customer's billing statement.

(c)
"Directory assistance" means an ancillary service of
providing telephone number or address information.

(d)
"Vertical service" means an ancillary service that is
offered in connection with one or more telecommunications services,
which offers advanced calling features that allow customers to
identify callers and manage multiple calls and call connections,
including conference bridging service.

(e)
"Voice mail service" means an ancillary service that
enables the customer to store, send, or receive recorded messages.
"Voice mail service" does not include any vertical services
that the customer may be required to have in order to utilize the
voice mail service.

(3)
"900 service" means an inbound toll telecommunications
service purchased by a subscriber that allows the subscriber's
customers to call in to the subscriber's prerecorded announcement or
live service, and which is typically marketed under the name "900
service" and any subsequent numbers designated by the federal
communications commission. "900 service" does not include
the charge for collection services provided by the seller of the
telecommunications service to the subscriber, or services or products
sold by the subscriber to the subscriber's customer.

(4)
"Prepaid calling service" means the right to access
exclusively telecommunications services, which must be paid for in
advance and which enables the origination of calls using an access
number or authorization code, whether manually or electronically
dialed, and that is sold in predetermined units or dollars of which
the number declines with use in a known amount.

(5)
"Prepaid wireless calling service" means a
telecommunications service that provides the right to utilize mobile
telecommunications service as well as other non-telecommunications
services, including the download of digital products delivered
electronically, and content and ancillary services, that must be paid
for in advance and that is sold in predetermined units or dollars of
which the number declines with use in a known amount.

(6)
"Value-added non-voice data service" means a
telecommunications service in which computer processing applications
are used to act on the form, content, code, or protocol of the
information or data primarily for a purpose other than transmission,
conveyance, or routing.

(7)
"Coin-operated telephone service" means a
telecommunications service paid for by inserting money into a
telephone accepting direct deposits of money to operate.

(8)
"Customer" has the same meaning as in section 5739.034 of
the Revised Code.

(BB)
"Laundry and dry cleaning services" means removing soil or
dirt from towels, linens, articles of clothing, or other fabric items
that belong to others and supplying towels, linens, articles of
clothing, or other fabric items. "Laundry and dry cleaning
services" does not include the provision of self-service
facilities for use by consumers to remove soil or dirt from towels,
linens, articles of clothing, or other fabric items.

(CC)
"Magazines distributed as controlled circulation publications"
means magazines containing at least twenty-four pages, at least
twenty-five per cent editorial content, issued at regular intervals
four or more times a year, and circulated without charge to the
recipient, provided that such magazines are not owned or controlled
by individuals or business concerns which conduct such publications
as an auxiliary to, and essentially for the advancement of the main
business or calling of, those who own or control them.

(DD)
"Landscaping and lawn care service" means the services of
planting, seeding, sodding, removing, cutting, trimming, pruning,
mulching, aerating, applying chemicals, watering, fertilizing, and
providing similar services to establish, promote, or control the
growth of trees, shrubs, flowers, grass, ground cover, and other
flora, or otherwise maintaining a lawn or landscape grown or
maintained by the owner for ornamentation or other nonagricultural
purpose. However, "landscaping and lawn care service" does
not include the providing of such services by a person who has less
than five thousand dollars in sales of such services during the
calendar year.

(EE)
"Private investigation and security service" means the
performance of any activity for which the provider of such service is
required to be licensed pursuant to Chapter 4749. of the Revised
Code, or would be required to be so licensed in performing such
services in this state, and also includes the services of conducting
polygraph examinations and of monitoring or overseeing the activities
on or in, or the condition of, the consumer's home, business, or
other facility by means of electronic or similar monitoring devices.
"Private investigation and security service" does not
include special duty services provided by off-duty police officers,
deputy sheriffs, and other peace officers regularly employed by the
state or a political subdivision.

(FF)
"Information services" means providing conversation, giving
consultation or advice, playing or making a voice or other recording,
making or keeping a record of the number of callers, and any other
service provided to a consumer by means of a nine hundred telephone
call, except when the nine hundred telephone call is the means by
which the consumer makes a contribution to a recognized charity.

(GG)
"Research and development" means designing, creating, or
formulating new or enhanced products, equipment, or manufacturing
processes, and also means conducting scientific or technological
inquiry and experimentation in the physical sciences with the goal of
increasing scientific knowledge which may reveal the bases for new or
enhanced products, equipment, or manufacturing processes.

(HH)
"Qualified research and development equipment" means either
of the following:

(1)
Capitalized tangible personal property, and leased personal property
that would be capitalized if purchased, used by a person primarily to
perform research and development;

(2)
Any tangible personal property used by a megaproject operator
primarily to perform research and development at the site of a
megaproject that satisfies the criteria described in division
(A)(11)(a)(ii) of section 122.17 of the Revised Code during the
period that the megaproject operator has an agreement for such
megaproject with the tax credit authority under division (D) of that
section that remains in effect and has not expired or been
terminated.

"Qualified
research and development equipment" does not include tangible
personal property primarily used in testing, as defined in division
(A)(4) of section 5739.011 of the Revised Code, or used for recording
or storing test results, unless such property is primarily used by
the consumer in testing the product, equipment, or manufacturing
process being created, designed, or formulated by the consumer in the
research and development activity or in recording or storing such
test results.

(II)
"Building maintenance and janitorial service" means
cleaning the interior or exterior of a building and any tangible
personal property located therein or thereon, including any services
incidental to such cleaning for which no separate charge is made.
However, "building maintenance and janitorial service" does
not include the providing of such service by a person who has less
than five thousand dollars in sales of such service during the
calendar year. As used in this division, "cleaning" does
not include sanitation services necessary for an establishment
described in 21 U.S.C. 608 to comply with rules and regulations
adopted pursuant to that section.

(JJ)
"Exterminating service" means eradicating or attempting to
eradicate vermin infestations from a building or structure, or the
area surrounding a building or structure, and includes activities to
inspect, detect, or prevent vermin infestation of a building or
structure.

(KK)
"Physical fitness facility service" means all transactions
by which a membership is granted, maintained, or renewed, including
initiation fees, membership dues, renewal fees, monthly minimum fees,
and other similar fees and dues, by a physical fitness facility such
as an athletic club, health spa, or gymnasium, which entitles the
member to use the facility for physical exercise.

(LL)
"Recreation and sports club service" means all transactions
by which a membership is granted, maintained, or renewed, including
initiation fees, membership dues, renewal fees, monthly minimum fees,
and other similar fees and dues, by a recreation and sports club,
which entitles the member to use the facilities of the organization.
"Recreation and sports club" means an organization that has
ownership of, or controls or leases on a continuing, long-term basis,
the facilities used by its members and includes an aviation club, gun
or shooting club, yacht club, card club, swimming club, tennis club,
golf club, country club, riding club, amateur sports club, or similar
organization.

(MM)
"Livestock" means farm animals commonly raised for food,
food production, or other agricultural purposes, including, but not
limited to, cattle, sheep, goats, swine, poultry, and captive deer.
"Livestock" does not include invertebrates, amphibians,
reptiles, domestic pets, animals for use in laboratories or for
exhibition, or other animals not commonly raised for food or food
production.

(NN)
"Livestock structure" means a building or structure used
exclusively for the housing, raising, feeding, or sheltering of
livestock, and includes feed storage or handling structures and
structures for livestock waste handling.

(OO)
"Horticulture" means the growing, cultivation, and
production of flowers, fruits, herbs, vegetables, sod, mushrooms, and
nursery stock. As used in this division, "nursery stock"
has the same meaning as in section 927.51 of the Revised Code.

(PP)
"Horticulture structure" means a building or structure used
exclusively for the commercial growing, raising, or overwintering of
horticultural products, and includes the area used for stocking,
storing, and packing horticultural products when done in conjunction
with the production of those products.

(QQ)
"Newspaper" means an unbound publication bearing a title or
name that is regularly published, at least as frequently as biweekly,
and distributed from a fixed place of business to the public in a
specific geographic area, and that contains a substantial amount of
news matter of international, national, or local events of interest
to the general public.

(RR)(1)
"Feminine hygiene products" means tampons, panty liners,
menstrual cups, sanitary napkins, and other similar tangible personal
property designed for feminine hygiene in connection with the human
menstrual cycle, but does not include grooming and hygiene products.

(2)
"Grooming and hygiene products" means soaps and cleaning
solutions, shampoo, toothpaste, mouthwash, antiperspirants, and sun
tan lotions and screens, regardless of whether any of these products
are over-the-counter drugs.

(3)
"Over-the-counter drugs" means a drug that contains a label
that identifies the product as a drug as required by 21 C.F.R.
201.66, which label includes a drug facts panel or a statement of the
active ingredients with a list of those ingredients contained in the
compound, substance, or preparation.

(SS)(1)
"Lease" or "rental" means any transfer of the
possession or control of tangible personal property for a fixed or
indefinite term, for consideration. "Lease" or "rental"
includes future options to purchase or extend, and agreements
described in 26 U.S.C. 7701(h)(1) covering motor vehicles and
trailers where the amount of consideration may be increased or
decreased by reference to the amount realized upon the sale or
disposition of the property. "Lease" or "rental"
does not include:

(a)
A transfer of possession or control of tangible personal property
under a security agreement or a deferred payment plan that requires
the transfer of title upon completion of the required payments;

(b)
A transfer of possession or control of tangible personal property
under an agreement that requires the transfer of title upon
completion of required payments and payment of an option price that
does not exceed the greater of one hundred dollars or one per cent of
the total required payments;

(c)
Providing tangible personal property along with an operator for a
fixed or indefinite period of time, if the operator is necessary for
the property to perform as designed. For purposes of this division,
the operator must do more than maintain, inspect, or set up the
tangible personal property.

(2)
"Lease" and "rental," as defined in division (SS)
of this section, shall not apply to leases or rentals that exist
before June 26, 2003.

(3)
"Lease" and "rental" have the same meaning as in
division (SS)(1) of this section regardless of whether a transaction
is characterized as a lease or rental under generally accepted
accounting principles, the Internal Revenue Code, Title XIII of the
Revised Code, or other federal, state, or local laws.

(TT)
"Mobile telecommunications service" has the same meaning as
in the "Mobile Telecommunications Sourcing Act," Pub. L.
No. 106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended,
and, on and after August 1, 2003, includes related fees and ancillary
services, including universal service fees, detailed billing service,
directory assistance, service initiation, voice mail service, and
vertical services, such as caller ID and three-way calling.

(UU)
"Certified service provider" has the same meaning as in
section 5740.01 of the Revised Code.

(VV)
"Satellite broadcasting service" means the distribution or
broadcasting of programming or services by satellite directly to the
subscriber's receiving equipment without the use of ground receiving
or distribution equipment, except the subscriber's receiving
equipment or equipment used in the uplink process to the satellite,
and includes all service and rental charges, premium channels or
other special services, installation and repair service charges, and
any other charges having any connection with the provision of the
satellite broadcasting service.

(WW)
"Tangible personal property" means personal property that
can be seen, weighed, measured, felt, or touched, or that is in any
other manner perceptible to the senses. For purposes of this chapter
and Chapter 5741. of the Revised Code, "tangible personal
property" includes motor vehicles, electricity, water, gas,
steam, and prewritten computer software.

(XX)
"Municipal gas utility" means a municipal corporation that
owns or operates a system for the distribution of natural gas.

(YY)
"Computer" means an electronic device that accepts
information in digital or similar form and manipulates it for a
result based on a sequence of instructions.

(ZZ)
"Computer software" means a set of coded instructions
designed to cause a computer or automatic data processing equipment
to perform a task.

(AAA)
"Delivered electronically" means delivery of computer
software from the seller to the purchaser by means other than
tangible storage media.

(BBB)
"Prewritten computer software" means computer software,
including prewritten upgrades, that is not designed and developed by
the author or other creator to the specifications of a specific
purchaser. The combining of two or more prewritten computer software
programs or prewritten portions thereof does not cause the
combination to be other than prewritten computer software.
"Prewritten computer software" includes software designed
and developed by the author or other creator to the specifications of
a specific purchaser when it is sold to a person other than the
purchaser. If a person modifies or enhances computer software of
which the person is not the author or creator, the person shall be
deemed to be the author or creator only of such person's
modifications or enhancements. Prewritten computer software or a
prewritten portion thereof that is modified or enhanced to any
degree, where such modification or enhancement is designed and
developed to the specifications of a specific purchaser, remains
prewritten computer software; provided, however, that where there is
a reasonable, separately stated charge or an invoice or other
statement of the price given to the purchaser for the modification or
enhancement, the modification or enhancement shall not constitute
prewritten computer software.

(CCC)(1)
"Food" means substances, whether in liquid, concentrated,
solid, frozen, dried, or dehydrated form, that are sold for ingestion
or chewing by humans and are consumed for their taste or nutritional
value. "Food" does not include alcoholic beverages, dietary
supplements, soft drinks, or tobacco.

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

(a)
"Dietary supplements" means any product, other than
tobacco, that is intended to supplement the diet and that is intended
for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid
form, or, if not intended for ingestion in such a form, is not
represented as conventional food for use as a sole item of a meal or
of the diet; that is required to be labeled as a dietary supplement,
identifiable by the "supplement facts" box found on the
label, as required by 21 C.F.R. 101.36; and that contains one or more
of the following dietary ingredients:

(i)
A vitamin;

(ii)
A mineral;

(iii)
An herb or other botanical;

(iv)
An amino acid;

(v)
A dietary substance for use by humans to supplement the diet by
increasing the total dietary intake;

(vi)
A concentrate, metabolite, constituent, extract, or combination of
any ingredient described in divisions (CCC)(2)(a)(i) to (v) of this
section.

(b)
"Soft drinks" means nonalcoholic beverages that contain
natural or artificial sweeteners. "Soft drinks" does not
include beverages that contain milk or milk products, soy, rice, or
similar milk substitutes, or that contains greater than fifty per
cent vegetable or fruit juice by volume.

(DDD)
"Drug" means a compound, substance, or preparation, and any
component of a compound, substance, or preparation, other than food,
dietary supplements, or alcoholic beverages that is recognized in the
official United States pharmacopoeia, official homeopathic
pharmacopoeia of the United States, or official national formulary,
and supplements to them; is intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease; or is intended to
affect the structure or any function of the body.

(EEE)
"Prescription" means an order, formula, or recipe issued in
any form of oral, written, electronic, or other means of transmission
by a duly licensed practitioner authorized by the laws of this state
to issue a prescription.

(FFF)
"Durable medical equipment" means equipment, including
repair and replacement parts for such equipment, that can withstand
repeated use, is primarily and customarily used to serve a medical
purpose, generally is not useful to a person in the absence of
illness or injury, and is not worn in or on the body. "Durable
medical equipment" does not include mobility enhancing
equipment.

(GGG)
"Mobility enhancing equipment" means equipment, including
repair and replacement parts for such equipment, that is primarily
and customarily used to provide or increase the ability to move from
one place to another and is appropriate for use either in a home or a
motor vehicle, that is not generally used by persons with normal
mobility, and that does not include any motor vehicle or equipment on
a motor vehicle normally provided by a motor vehicle manufacturer.
"Mobility enhancing equipment" does not include durable
medical equipment.

(HHH)
"Prosthetic device" means a replacement, corrective, or
supportive device, including repair and replacement parts for the
device, worn on or in the human body to artificially replace a
missing portion of the body, prevent or correct physical deformity or
malfunction, or support a weak or deformed portion of the body. As
used in this division, before July 1, 2019, "prosthetic device"
does not include corrective eyeglasses, contact lenses, or dental
prosthesis. On or after July 1, 2019, "prosthetic device"
does not include dental prosthesis but does include corrective
eyeglasses or contact lenses.

(III)(1)
"Fractional aircraft ownership program" means a program in
which persons within an affiliated group sell and manage fractional
ownership program aircraft, provided that at least one hundred
airworthy aircraft are operated in the program and the program meets
all of the following criteria:

(a)
Management services are provided by at least one program manager
within an affiliated group on behalf of the fractional owners.

(b)
Each program aircraft is owned or possessed by at least one
fractional owner.

(c)
Each fractional owner owns or possesses at least a one-sixteenth
interest in at least one fixed-wing program aircraft.

(d)
A dry-lease aircraft interchange arrangement is in effect among all
of the fractional owners.

(e)
Multi-year program agreements are in effect regarding the fractional
ownership, management services, and dry-lease aircraft interchange
arrangement aspects of the program.

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

(a)
"Affiliated group" has the same meaning as in division
(B)(3)(e) of this section.

(b)
"Fractional owner" means a person that owns or possesses at
least a one-sixteenth interest in a program aircraft and has entered
into the agreements described in division (III)(1)(e) of this
section.

(c)
"Fractional ownership program aircraft" or "program
aircraft" means a turbojet aircraft that is owned or possessed
by a fractional owner and that has been included in a dry-lease
aircraft interchange arrangement and agreement under divisions
(III)(1)(d) and (e) of this section, or an aircraft a program manager
owns or possesses primarily for use in a fractional aircraft
ownership program.

(d)
"Management services" means administrative and aviation
support services furnished under a fractional aircraft ownership
program in accordance with a management services agreement under
division (III)(1)(e) of this section, and offered by the program
manager to the fractional owners, including, at a minimum, the
establishment and implementation of safety guidelines; the
coordination of the scheduling of the program aircraft and crews;
program aircraft maintenance; program aircraft insurance; crew
training for crews employed, furnished, or contracted by the program
manager or the fractional owner; the satisfaction of record-keeping
requirements; and the development and use of an operations manual and
a maintenance manual for the fractional aircraft ownership program.

(e)
"Program manager" means the person that offers management
services to fractional owners pursuant to a management services
agreement under division (III)(1)(e) of this section.

(JJJ)
"Electronic publishing" means providing access to one or
more of the following primarily for business customers, including the
federal government or a state government or a political subdivision
thereof, to conduct research: news; business, financial, legal,
consumer, or credit materials; editorials, columns, reader
commentary, or features; photos or images; archival or research
material; legal notices, identity verification, or public records;
scientific, educational, instructional, technical, professional,
trade, or other literary materials; or other similar information
which has been gathered and made available by the provider to the
consumer in an electronic format. Providing electronic publishing
includes the functions necessary for the acquisition, formatting,
editing, storage, and dissemination of data or information that is
the subject of a sale.

(KKK)
"Medicaid health insuring corporation" means a health
insuring corporation that holds a certificate of authority under
Chapter 1751. of the Revised Code and is under contract with the
department of medicaid pursuant to section 5167.10 of the Revised
Code.

(LLL)
"Managed care premium" means any premium, capitation, or
other payment a medicaid health insuring corporation receives for
providing or arranging for the provision of health care services to
its members or enrollees residing in this state.

(MMM)
"Captive deer" means deer and other cervidae that have been
legally acquired, or their offspring, that are privately owned for
agricultural or farming purposes.

(NNN)
"Gift card" means a document, card, certificate, or other
record, whether tangible or intangible, that may be redeemed by a
consumer for a dollar value when making a purchase of tangible
personal property or services.

(OOO)
"Specified digital product" means an electronically
transferred digital audiovisual work, digital audio work, or digital
book.

As
used in division (OOO) of this section:

(1)
"Digital audiovisual work" means a series of related images
that, when shown in succession, impart an impression of motion,
together with accompanying sounds, if any.

(2)
"Digital audio work" means a work that results from the
fixation of a series of musical, spoken, or other sounds, including
digitized sound files that are downloaded onto a device and that may
be used to alert the customer with respect to a communication.

(3)
"Digital book" means a work that is generally recognized in
the ordinary and usual sense as a book.

(4)
"Electronically transferred" means obtained by the
purchaser by means other than tangible storage media.

(PPP)
"Digital advertising services" means providing access, by
means of telecommunications equipment, to computer equipment that is
used to enter, upload, download, review, manipulate, store, add, or
delete data for the purpose of electronically displaying, delivering,
placing, or transferring promotional advertisements to potential
customers about products or services or about industry or business
brands.

(QQQ)
"Peer-to-peer car sharing program" has the same meaning as
in section 4516.01 of the Revised Code.

(RRR)
"Megaproject" and "megaproject operator" have the
same meanings as in section 122.17 of the Revised Code.

(SSS)(1)
"Diaper" means an absorbent garment worn by humans who are
incapable of, or have difficulty, controlling their bladder or bowel
movements.

(2)
"Children's diaper" means a diaper marketed to be worn by
children.

(3)
"Adult diaper" means a diaper other than a children's
diaper.

(TTT)
"Sales tax holiday" means three or more dates on which
sales of all eligible tangible personal property are exempt from the
taxes levied under sections 5739.02, 5739.021, 5739.023, 5739.026,
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code.

(UUU)
"Eligible tangible personal property" means any item of
tangible personal property that meets both of the following
requirements:

(1)
The price of the item does not exceed five hundred dollars;

(2)
The item is not a watercraft or outboard motor required to be titled
pursuant to Chapter 1548. of the Revised Code, a motor vehicle, an
alcoholic beverage, tobacco, a vapor product as defined in section
5743.01 of the Revised Code, or an item that contains marijuana as
defined in section 3796.01 of the Revised Code.

(VVV)
"Alcoholic beverages" means beverages that are suitable for
human consumption and contain one-half of one per cent or more of
alcohol by volume.

(WWW)
"Tobacco" means cigarettes, cigars, chewing or pipe
tobacco, or any other item that contains tobacco.

(XXX)(1)
"Delivery network company" means a person that operates a
business platform, including a web site or mobile application, to
facilitate delivery network services.

(2)
"Delivery network courier" means an individual connected to
a consumer through a delivery network company and who provides
delivery network services to that consumer.

(3)
"Delivery network services" means both of the following
when performed as part of a single transaction:

(a)
Pickup of a local product by a delivery network courier from a local
merchant that is not under common ownership or control of the
delivery network company through which the transaction was initiated,
and which may include selection, collection, and purchase of the
local product;

(b)
Delivery by the delivery network courier of that local product to a
location designated by the consumer that is not more than
seventy-five miles from the local merchant's place of business where
the pickup described in division (XXX)(3)(a) of this section occurs.

(4)
"Local merchant" means a person engaged in selling local
products from a temporary or fixed place of business in this state,
including a kitchen, restaurant, grocery store, retail store, or
convenience store.

(5)
"Local product" means any tangible personal property,
including food, but excluding freight, mail, or a package to which
postage is affixed.

(YYY)
"Secure gun storage or safety device" means either of the
following:

(1)
A device that, when installed on a firearm, is designed to prevent
the firearm from being operated without first deactivating the
device;

(2)
A safe, gun safe, gun case, lock box, or other device that is
designed to be or can be used to store a firearm and that is designed
to be unlocked only by means of a key, a combination, or other
similar means.

A
"secure gun storage or safety device" does not include a
glass-faced cabinet or other form of storage that is primarily
designed to allow for the display of firearms.

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

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

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

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

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

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

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

(1)
Sales to the state or any of its political subdivisions, or to any
other state or its political subdivisions if the laws of that state
exempt from taxation sales made to this state and its political
subdivisions including either of the following:

(a)
Sales or rentals of tangible personal property by construction
contractors or subcontractors to provide temporary traffic control or
temporary structures, including material and equipment used to comply
with the Ohio manual of uniform traffic control devices adopted
pursuant to section 4511.09 of the Revised Code, whereby the state or
any of its political subdivisions take title to, or permanent or
temporary possession of, such tangible personal property for use by
the state or any of its political subdivisions, including for use by
the general public thereof;

(b)
Sales of services by construction contractors or subcontractors to
provide temporary traffic control or structures, including labor used
to comply with the Ohio manual of uniform traffic control devices
adopted pursuant to section 4511.09 of the Revised Code, whereby the
state or any of its political subdivisions, including the general
public thereof, receive the benefit of such services.

As
used in divisions (B)(1)(a) and (b) of this section, "temporary
structures" include temporary roads, bridges, drains, and
pavement.

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

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

(4)
Sales of newspapers and sales or transfers of magazines distributed
as controlled circulation publications;

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

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

(b)
Sales of motor fuel other than that described in division (B)(6)(a)
of this section and used for powering a refrigeration unit on a
vehicle other than one used primarily to provide comfort to the
operator or occupants of the vehicle.

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

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

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

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

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

(10)
Sales not within the taxing power of this state under the
Constitution or laws of the United States or the Constitution of this
state including either of the following:

(a)
Sales or rentals of tangible personal property by construction
contractors or subcontractors to provide temporary traffic control or
temporary structures, including material and equipment used to comply
with the Ohio manual of uniform traffic control devices adopted
pursuant to section 4511.09 of the Revised Code, whereby the United
States takes title to, or permanent or temporary possession of, such
tangible personal property for use by the United States including for
use by the general public thereof;

(b)
Sales of services by construction contractors or subcontractors to
provide temporary traffic control or structures, including labor used
to comply with the Ohio manual of uniform traffic control devices
adopted pursuant to section 4511.09 of the Revised Code, whereby the
United States, including the general public thereof, receives the
benefit of such services.

As
used in divisions (B)(10)(a) and (b) of this section, "temporary
structures" include temporary roads, bridges, drains, and
pavement.

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

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

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

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

(13)
Building and construction materials and services sold to construction
contractors for incorporation into a structure or improvement to real
property under a construction contract with this state or a political
subdivision of this state, or with the United States government or
any of its agencies; building and construction materials and services
sold to construction contractors for incorporation into a structure
or improvement to real property that are accepted for ownership by
this state or any of its political subdivisions, or by the United
States government or any of its agencies at the time of completion of
the structures or improvements; building and construction materials
sold to construction contractors for incorporation into a
horticulture structure or livestock structure for a person engaged in
the business of horticulture or producing livestock; building
materials and services sold to a construction contractor for
incorporation into a house of public worship or religious education,
or a building used exclusively for charitable purposes under a
construction contract with an organization whose purpose is as
described in division (B)(12) of this section; building materials and
services sold to a construction contractor for incorporation into a
building under a construction contract with an organization exempt
from taxation under section 501(c)(3) of the Internal Revenue Code of
1986 when the building is to be used exclusively for the
organization's exempt purposes; tangible personal property sold for
incorporation into the construction of a sports facility under
section 307.696 of the Revised Code; building and construction
materials and services sold to a construction contractor for
incorporation into real property outside this state if such materials
and services, when sold to a construction contractor in the state in
which the real property is located for incorporation into real
property in that state, would be exempt from a tax on sales levied by
that state; building and construction materials for incorporation
into a transportation facility pursuant to a public-private agreement
entered into under sections 5501.70 to 5501.83 of the Revised Code;
until one calendar year after the construction of a convention center
that qualifies for property tax exemption under section 5709.084 of
the Revised Code is completed, building and construction materials
and services sold to a construction contractor for incorporation into
the real property comprising that convention center; and building and
construction materials sold for incorporation into a structure or
improvement to real property that is used primarily as, or primarily
in support of, a manufacturing facility or research and development
facility and that is to be owned by a megaproject operator upon
completion and located at the site of a megaproject that satisfies
the criteria described in division (A)(11)(a)(ii) of section 122.17
of the Revised Code, provided that the sale occurs during the period
that the megaproject operator has an agreement for such megaproject
with the tax credit authority under division (D) of section 122.17 of
the Revised Code that remains in effect and has not expired or been
terminated.

This
division does not apply to building and construction materials and
services sold to construction contractors for incorporation into a
structure or improvement to real property under a construction
contract with a port authority if the contract is subject to section
4582.72 of the Revised Code but approval from the appropriate board
of county commissioners, as required by that section, has not been
obtained.

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

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

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

(17)
Sales to persons engaged in farming, agriculture, horticulture, or
floriculture, of tangible personal property for use or consumption
primarily in the production by farming, agriculture, horticulture, or
floriculture of other tangible personal property for use or
consumption primarily in the production of tangible personal property
for sale by farming, agriculture, horticulture, or floriculture; or
material and parts for incorporation into any such tangible personal
property for use or consumption in production; and of tangible
personal property for such use or consumption in the conditioning or
holding of products produced by and for such use, consumption, or
sale by persons engaged in farming, agriculture, horticulture, or
floriculture, except where such property is incorporated into real
property;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(35)
Sales of strollers meant for transporting children from infancy to
about thirty-six months of age that meet the United States consumer
product safety commission safety standard for carriages and strollers
under 16 C.F.R. 1227.2.

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

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

(38)
Sales of tangible personal property that is not required to be
registered or licensed under the laws of this state to a citizen of a
foreign nation that is not a citizen of the United States, provided
the property is delivered to a person in this state that is not a
related member of the purchaser, is physically present in this state
for the sole purpose of temporary storage and package consolidation,
and is subsequently delivered to the purchaser at a delivery address
in a foreign nation. As used in division (B)(38) of this section,
"related member" has the same meaning as in section
5733.042 of the Revised Code, and "temporary storage" means
the storage of tangible personal property for a period of not more
than sixty days.

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

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

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

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

(a)
To incorporate the thing transferred as a material or a part into
tangible personal property to be produced for sale by manufacturing,
assembling, processing, or refining; or to use or consume the thing
transferred directly in producing tangible personal property for sale
by mining, including, without limitation, the extraction from the
earth of all substances that are classed geologically as minerals, or
directly in the rendition of a public utility service, except that
the sales tax levied by this section shall be collected upon all
meals, drinks, and food for human consumption sold when transporting
persons. This paragraph does not exempt from "retail sale"
or "sales at retail" the sale of tangible personal property
that is to be incorporated into a structure or improvement to real
property.

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

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

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

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

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

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

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

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

(j)
To use or consume the thing transferred primarily in storing,
transporting, mailing, or otherwise handling purchased sales
inventory in a warehouse, distribution center, or similar facility
when the inventory is primarily distributed outside this state to
retail stores of the person who owns or controls the warehouse,
distribution center, or similar facility, to retail stores of an
affiliated group of which that person is a member, or by means of
direct marketing. This division does not apply to motor vehicles
registered for operation on the public highways. As used in this
division, "affiliated group" has the same meaning as in
division (B)(3)(e) of section 5739.01 of the Revised Code and "direct
marketing" means the method of selling where consumers order
tangible personal property by United States mail, delivery service,
or telecommunication and the vendor delivers or ships the tangible
personal property sold to the consumer from a warehouse, catalogue
distribution center, or similar fulfillment facility by means of the
United States mail, delivery service, or common carrier.

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

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

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

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

(q)
(o)

To use or consume the thing transferred directly in production of
crude oil and natural gas for sale. Persons engaged in rendering
production services for others are deemed engaged in production.

As
used in division
(B)(42)(q)
(B)(42)(o)

of this section, "production" means operations and tangible
personal property directly used to expose and evaluate an underground
reservoir that may contain hydrocarbon resources, prepare the
wellbore for production, and lift and control all substances yielded
by the reservoir to the surface of the earth.

(i)
For the purposes of division
(B)(42)(q)
(B)(42)(o)

of this section, the "thing transferred" includes, but is
not limited to, any of the following:

(I)
Services provided in the construction of permanent access roads,
services provided in the construction of the well site, and services
provided in the construction of temporary impoundments;

(II)
Equipment and rigging used for the specific purpose of creating with
integrity a wellbore pathway to underground reservoirs;

(III)
Drilling and workover services used to work within a subsurface
wellbore, and tangible personal property directly used in providing
such services;

(IV)
Casing, tubulars, and float and centralizing equipment;

(V)
Trailers to which production equipment is attached;

(VI)
Well completion services, including cementing of casing, and tangible
personal property directly used in providing such services;

(VII)
Wireline evaluation, mud logging, and perforation services, and
tangible personal property directly used in providing such services;

(VIII)
Reservoir stimulation, hydraulic fracturing, and acidizing services,
and tangible personal property directly used in providing such
services, including all material pumped downhole;

(IX)
Pressure pumping equipment;

(X)
Artificial lift systems equipment;

(XI)
Wellhead equipment and well site equipment used to separate,
stabilize, and control hydrocarbon phases and produced water;

(XII)
Tangible personal property directly used to control production
equipment.

(ii)
For the purposes of division
(B)(42)(q)
(B)(42)(o)

of this section, the "thing transferred" does not include
any of the following:

(I)
Tangible personal property used primarily in the exploration and
production of any mineral resource regulated under Chapter 1509. of
the Revised Code other than oil or gas;

(II)
Tangible personal property used primarily in storing, holding, or
delivering solutions or chemicals used in well stimulation as defined
in section 1509.01 of the Revised Code;

(III)
Tangible personal property used primarily in preparing, installing,
or reclaiming foundations for drilling or pumping equipment or well
stimulation material tanks;

(IV)
Tangible personal property used primarily in transporting,
delivering, or removing equipment to or from the well site or storing
such equipment before its use at the well site;

(V)
Tangible personal property used primarily in gathering operations
occurring off the well site, including gathering pipelines
transporting hydrocarbon gas or liquids away from a crude oil or
natural gas production facility;

(VI)
Tangible personal property that is to be incorporated into a
structure or improvement to real property;

(VII)
Well site fencing, lighting, or security systems;

(VIII)
Communication devices or services;

(IX)
Office supplies;

(X)
Trailers used as offices or lodging;

(XI)
Motor vehicles of any kind;

(XII)
Tangible personal property used primarily for the storage of drilling
byproducts and fuel not used for production;

(XIII)
Tangible personal property used primarily as a safety device;

(XIV)
Data collection or monitoring devices;

(XV)
Access ladders, stairs, or platforms attached to storage tanks.

The
enumeration of tangible personal property in division

(B)(42)(q)(ii)
(B)(42)(o)(ii)

of this section is not intended to be exhaustive, and any tangible
personal property not so enumerated shall not necessarily be
construed to be a "thing transferred" for the purposes of
division
(B)(42)(q)
(B)(42)(o)

of this section.

The
commissioner shall adopt and promulgate rules under sections 119.01
to 119.13 of the Revised Code that the commissioner deems necessary
to administer division
(B)(42)(q)
(B)(42)(o)

of this section.

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

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

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

(45)
The fee imposed by section 3743.22 of the Revised Code, if it is
separately stated on the invoice, bill of sale, or similar document
given by the vendor to the consumer for a retail sale made in this
state.

(46)
Sales by a telecommunications service vendor of 900 service to a
subscriber. This division does not apply to information services.

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

(48)
Sales of feminine hygiene products.

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

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

(51)
Any transfer or lease of tangible personal property between the state
and JobsOhio in accordance with section 4313.02 of the Revised Code.

(52)(a)
Sales to a qualifying corporation.

(b)
As used in division (B)(52) of this section:

(i)
"Qualifying corporation" means a nonprofit corporation
organized in this state that leases from an eligible county land,
buildings, structures, fixtures, and improvements to the land that
are part of or used in a public recreational facility used by a major
league professional athletic team or a class A to class AAA minor
league affiliate of a major league professional athletic team for a
significant portion of the team's home schedule, provided the
following apply:

(I)
The facility is leased from the eligible county pursuant to a lease
that requires substantially all of the revenue from the operation of
the business or activity conducted by the nonprofit corporation at
the facility in excess of operating costs, capital expenditures, and
reserves to be paid to the eligible county at least once per calendar
year.

(II)
Upon dissolution and liquidation of the nonprofit corporation, all of
its net assets are distributable to the board of commissioners of the
eligible county from which the corporation leases the facility.

(ii)
"Eligible county" has the same meaning as in section
307.695 of the Revised Code.

(53)
Sales to or by a cable service provider, video service provider, or
radio or television broadcast station regulated by the federal
government of cable service or programming, video service or
programming, audio service or programming, or electronically
transferred digital audiovisual or audio work. As used in division
(B)(53) of this section, "cable service" and "cable
service provider" have the same meanings as in section 1332.01
of the Revised Code, and "video service," "video
service provider," and "video programming" have the
same meanings as in section 1332.21 of the Revised Code.

(54)
Sales of a digital audio work electronically transferred for delivery
through use of a machine, such as a juke box, that does all of the
following:

(a)
Accepts direct payments to operate;

(b)
Automatically plays a selected digital audio work for a single play
upon receipt of a payment described in division (B)(54)(a) of this
section;

(c)
Operates exclusively for the purpose of playing digital audio works
in a commercial establishment.

(55)(a)
Sales of the following occurring on the first Friday of August and
the following Saturday and Sunday of any year, except in 2024 or any
subsequent year in which a sales tax holiday is held pursuant to
section 5739.41 of the Revised Code:

(i)
An item of clothing, the price of which is seventy-five dollars or
less;

(ii)
An item of school supplies, the price of which is twenty dollars or
less;

(iii)
An item of school instructional material, the price of which is
twenty dollars or less.

(b)
As used in division (B)(55) of this section:

(i)
"Clothing" means all human wearing apparel suitable for
general use. "Clothing" includes, but is not limited to,
aprons, household and shop; athletic supporters; baby receiving
blankets; bathing suits and caps; beach capes and coats; belts and
suspenders; boots; coats and jackets; costumes; diapers, children and
adult, including disposable diapers; earmuffs; footlets; formal wear;
garters and garter belts; girdles; gloves and mittens for general
use; hats and caps; hosiery; insoles for shoes; lab coats; neckties;
overshoes; pantyhose; rainwear; rubber pants; sandals; scarves; shoes
and shoe laces; slippers; sneakers; socks and stockings; steel-toed
shoes; underwear; uniforms, athletic and nonathletic; and wedding
apparel. "Clothing" does not include items purchased for
use in a trade or business; clothing accessories or equipment;
protective equipment; sports or recreational equipment; belt buckles
sold separately; costume masks sold separately; patches and emblems
sold separately; sewing equipment and supplies including, but not
limited to, knitting needles, patterns, pins, scissors, sewing
machines, sewing needles, tape measures, and thimbles; and sewing
materials that become part of "clothing" including, but not
limited to, buttons, fabric, lace, thread, yarn, and zippers.

(ii)
"School supplies" means items commonly used by a student in
a course of study. "School supplies" includes only the
following items: binders; book bags; calculators; cellophane tape;
blackboard chalk; compasses; composition books; crayons; erasers;
folders, expandable, pocket, plastic, and manila; glue, paste, and
paste sticks; highlighters; index cards; index card boxes; legal
pads; lunch boxes; markers; notebooks; paper, loose-leaf ruled
notebook paper, copy paper, graph paper, tracing paper, manila paper,
colored paper, poster board, and construction paper; pencil boxes and
other school supply boxes; pencil sharpeners; pencils; pens;
protractors; rulers; scissors; and writing tablets. "School
supplies" does not include any item purchased for use in a trade
or business.

(iii)
"School instructional material" means written material
commonly used by a student in a course of study as a reference and to
learn the subject being taught. "School instructional material"
includes only the following items: reference books, reference maps
and globes, textbooks, and workbooks. "School instructional
material" does not include any material purchased for use in a
trade or business.

(56)(a)
Sales of adult diapers or incontinence underpads sold pursuant to a
prescription, for the benefit of a medicaid recipient with a
diagnosis of incontinence, and by a medicaid provider that maintains
a valid provider agreement under section 5164.30 of the Revised Code
with the department of medicaid, provided that the medicaid program
covers diapers or incontinence underpads as an incontinence garment.

(b)
As used in division (B)(56)(a) of this section, "incontinence
underpad" means an absorbent product, not worn on the body,
designed to protect furniture or other tangible personal property
from soiling or damage due to human incontinence.

(57)
Sales of investment metal bullion and investment coins. "Investment
metal bullion" means any bullion described in section
408(m)(3)(B) of the Internal Revenue Code, regardless of whether that
bullion is in the physical possession of a trustee. "Investment
coin" means any coin composed primarily of gold, silver,
platinum, or palladium.

(58)
Sales of tangible personal property used primarily for any of the
following purposes by a megaproject operator at the site of a
megaproject that satisfies the criteria described in division
(A)(11)(a)(ii) of section 122.17 of the Revised Code, provided that
the sale occurs during the period that the megaproject operator has
an agreement for such megaproject with the tax credit authority under
division (D) of section 122.17 of the Revised Code that remains in
effect and has not expired or been terminated:

(a)
To store, transmit, convey, distribute, recycle, circulate, or clean
water, steam, or other gases used in or produced as a result of
manufacturing activity, including items that support or aid in the
operation of such property;

(b)
To clean or prepare inventory, at any stage of storage or production,
or equipment used in a manufacturing activity, including chemicals,
solvents, catalysts, soaps, and other items that support or aid in
the operation of property;

(c)
To regulate, treat, filter, condition, improve, clean, maintain, or
monitor environmental conditions within areas where manufacturing
activities take place;

(d)
To handle, transport, or convey inventory during production or
manufacturing.

(59)
Documentary services charges imposed pursuant to section 4517.261 or
4781.24 of the Revised Code.

(60)
Sales of children's diapers.

(61)
Sales of therapeutic or preventative creams and wipes marketed
primarily for use on the skin of children.

(62)
Sales of a child restraint device or booster seat that meets the
national highway traffic safety administration standard for child
restraint systems under 49 C.F.R. 571.213.

(63)
Sales of cribs intended to provide sleeping accommodations for
children that comply with the United States consumer product safety
commission's safety standard for full-size baby cribs under 16 C.F.R.
1219 or the commission's safety standard for non-full-size baby cribs
under 16 C.F.R. 1220.

(64)
Sales of eligible tangible personal property occurring during the
period of a sales tax holiday held pursuant to section 5739.41 of the
Revised Code.

(65)
Sales of secure gun storage or safety devices.

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

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

Sec.
5739.03.
(A)
Except as provided in section 5739.05 or section 5739.051 of the
Revised Code, the tax imposed by or pursuant to section 5739.02,
5739.021, 5739.023, or 5739.026 of the Revised Code shall be paid by
the consumer to the vendor, and each vendor shall collect from the
consumer, as a trustee for the state of Ohio, the full and exact
amount of the tax payable on each taxable sale, in the manner and at
the times provided as follows:

(1)
If the price is, at or prior to the provision of the service or the
delivery of possession of the thing sold to the consumer, paid in
currency passed from hand to hand by the consumer or the consumer's
agent to the vendor or the vendor's agent, the vendor or the vendor's
agent shall collect the tax with and at the same time as the price;

(2)
If the price is otherwise paid or to be paid, the vendor or the
vendor's agent shall, at or prior to the provision of the service or
the delivery of possession of the thing sold to the consumer, charge
the tax imposed by or pursuant to section 5739.02, 5739.021,
5739.023, or 5739.026 of the Revised Code to the account of the
consumer, which amount shall be collected by the vendor from the
consumer in addition to the price. Such sale shall be reported on and
the amount of the tax applicable thereto shall be remitted with the
return for the period in which the sale is made, and the amount of
the tax shall become a legal charge in favor of the vendor and
against the consumer.

(B)(1)(a)
If any sale is claimed to be exempt under division (E) of section
5739.01 of the Revised Code or under section 5739.02 of the Revised
Code, with the exception of divisions (B)(1) to (11), (28), (48),
(55), (59),
or

(62)
,
or (65)

of section 5739.02 of the Revised Code, the consumer must provide to
the vendor, and the vendor must obtain from the consumer, a
certificate specifying the reason that the sale is not legally
subject to the tax. The certificate shall be in such form, and shall
be provided either in a hard copy form or electronic form, as the tax
commissioner prescribes.

(b)
A vendor that obtains a fully completed exemption certificate from a
consumer is relieved of liability for collecting and remitting tax on
any sale covered by that certificate. If it is determined the
exemption was improperly claimed, the consumer shall be liable for
any tax due on that sale under section 5739.02, 5739.021, 5739.023,
or 5739.026 or Chapter 5741. of the Revised Code. Relief under this
division from liability does not apply to any of the following:

(i)
A vendor that fraudulently fails to collect tax;

(ii)
A vendor that solicits consumers to participate in the unlawful claim
of an exemption;

(iii)
A vendor that accepts an exemption certificate from a consumer that
claims an exemption based on who purchases or who sells property or a
service, when the subject of the transaction sought to be covered by
the exemption certificate is actually received by the consumer at a
location operated by the vendor in this state, and this state has
posted to its web site an exemption certificate form that clearly and
affirmatively indicates that the claimed exemption is not available
in this state;

(iv)
A vendor that accepts an exemption certificate from a consumer who
claims a multiple points of use exemption under division (D) of
section 5739.033 of the Revised Code, if the item purchased is
tangible personal property, other than prewritten computer software.

(2)
The vendor shall maintain records, including exemption certificates,
of all sales on which a consumer has claimed an exemption, and
provide them to the tax commissioner on request.

(3)
The tax commissioner may establish an identification system whereby
the commissioner issues an identification number to a consumer that
is exempt from payment of the tax. The consumer must present the
number to the vendor, if any sale is claimed to be exempt as provided
in this section.

(4)
If no certificate is provided or obtained within ninety days after
the date on which such sale is consummated, it shall be presumed that
the tax applies. Failure to have so provided or obtained a
certificate shall not preclude a vendor, within one hundred twenty
days after the tax commissioner gives written notice of intent to
levy an assessment, from either establishing that the sale is not
subject to the tax, or obtaining, in good faith, a fully completed
exemption certificate.

(5)
Certificates need not be obtained nor provided where the identity of
the consumer is such that the transaction is never subject to the tax
imposed or where the item of tangible personal property sold or the
service provided is never subject to the tax imposed, regardless of
use, or when the sale is in interstate commerce.

(6)
If a transaction is claimed to be exempt under division (B)(13) of
section 5739.02 of the Revised Code, the contractor shall obtain
certification of the claimed exemption from the contractee. This
certification shall be in addition to an exemption certificate
provided by the contractor to the vendor. A contractee that provides
a certification under this division shall be deemed to be the
consumer of all items purchased by the contractor under the claim of
exemption, if it is subsequently determined that the exemption is not
properly claimed. The certification shall be in such form as the tax
commissioner prescribes.

(7)
If a transaction is claimed to be exempt under division (B)(13) of
section 5739.02 of the Revised Code, the person that leases a sports
facility, as defined in section 307.696 of the Revised Code, wholly
owned by a county may provide and sign, on behalf of the county, an
exemption certificate required under this section for that exemption.

(C)
As used in this division, "contractee" means a person who
seeks to enter or enters into a contract or agreement with a
contractor or vendor for the construction of real property or for the
sale and installation onto real property of tangible personal
property.

Any
contractor or vendor may request from any contractee a certification
of what portion of the property to be transferred under such contract
or agreement is to be incorporated into the realty and what portion
will retain its status as tangible personal property after
installation is completed. The contractor or vendor shall request the
certification by certified mail delivered to the contractee, return
receipt requested. Upon receipt of such request and prior to entering
into the contract or agreement, the contractee shall provide to the
contractor or vendor a certification sufficiently detailed to enable
the contractor or vendor to ascertain the resulting classification of
all materials purchased or fabricated by the contractor or vendor and
transferred to the contractee. This requirement applies to a
contractee regardless of whether the contractee holds a direct
payment permit under section 5739.031 of the Revised Code or provides
to the contractor or vendor an exemption certificate as provided
under this section.

For
the purposes of the taxes levied by this chapter and Chapter 5741. of
the Revised Code, the contractor or vendor may in good faith rely on
the contractee's certification. Notwithstanding division (B) of
section 5739.01 of the Revised Code, if the tax commissioner
determines that certain property certified by the contractee as
tangible personal property pursuant to this division is, in fact,
real property, the contractee shall be considered to be the consumer
of all materials so incorporated into that real property and shall be
liable for the applicable tax, and the contractor or vendor shall be
excused from any liability on those materials.

If
a contractee fails to provide such certification upon the request of
the contractor or vendor, the contractor or vendor shall comply with
the provisions of this chapter and Chapter 5741. of the Revised Code
without the certification. If the tax commissioner determines that
such compliance has been performed in good faith and that certain
property treated as tangible personal property by the contractor or
vendor is, in fact, real property, the contractee shall be considered
to be the consumer of all materials so incorporated into that real
property and shall be liable for the applicable tax, and the
construction contractor or vendor shall be excused from any liability
on those materials.

This
division does not apply to any contract or agreement where the tax
commissioner determines as a fact that a certification under this
division was made solely on the decision or advice of the contractor
or vendor.

(D)
Notwithstanding division (B) of section 5739.01 of the Revised Code,
whenever the total rate of tax imposed under this chapter is
increased after the date after a construction contract is entered
into, the contractee shall reimburse the construction contractor for
any additional tax paid on tangible property consumed or services
received pursuant to the contract.

(E)
A vendor who files a petition for reassessment contesting the
assessment of tax on sales for which the vendor obtained no valid
exemption certificates and for which the vendor failed to establish
that the sales were properly not subject to the tax during the
one-hundred-twenty-day period allowed under division (B) of this
section, may present to the tax commissioner additional evidence to
prove that the sales were properly subject to a claim of exception or
exemption. The vendor shall file such evidence within ninety days of
the receipt by the vendor of the notice of assessment, except that,
upon application and for reasonable cause, the period for submitting
such evidence shall be extended thirty days.

The
commissioner shall consider such additional evidence in reaching the
final determination on the assessment and petition for reassessment.

(F)
Whenever a vendor refunds the price, minus any separately stated
delivery charge, of an item of tangible personal property on which
the tax imposed under this chapter has been paid, the vendor shall
also refund the amount of tax paid, minus the amount of tax
attributable to the delivery charge.

Sec.
5739.17.
(A)
No person shall engage in making retail sales subject to a tax
imposed by or pursuant to section 5739.02, 5739.021, 5739.023, or
5739.026 of the Revised Code as a business without having a license
therefor, except as otherwise provided in divisions (A)(1), (2), and
(3) of this section.

(1)
In the dissolution of a partnership by death, the surviving partner
may operate under the license of the partnership for a period of
sixty days.

(2)
The heirs or legal representatives of deceased persons, and receivers
and trustees in bankruptcy, appointed by any competent authority, may
operate under the license of the person so succeeded in possession.

(3)
Two or more persons who are not partners may operate a single place
of business under one license. In such case neither the retirement of
any such person from business at that place of business, nor the
entrance of any person, under an existing arrangement, shall affect
the license or require the issuance of a new license, unless the
person retiring from the business is the individual named on the
vendor's license.

Except
as otherwise provided in this section, each applicant for a license
shall make out and deliver to the county auditor of each county in
which the applicant desires to engage in business, upon a blank to be
furnished by such auditor for that purpose, a statement showing the
name of the applicant, each place of business in the county where the
applicant will make retail sales, the nature of the business, and any
other information the tax commissioner reasonably prescribes in the
form of a statement prescribed by the commissioner.

At
the time of making the application, the applicant shall pay into the
county treasury a license fee in the sum of fifty dollars for each
fixed place of business in the county that will be the situs of
retail sales. Upon receipt of the application and exhibition of the
county treasurer's receipt, showing the payment of the license fee,
the county auditor shall issue to the applicant a license for each
fixed place of business designated in the application, authorizing
the applicant to engage in business at that location. The county
auditor shall transmit twenty-five dollars of each license fee to the
treasurer of state for deposit into the state treasury to the credit
of the organized crime commission fund for the purposes specified in
section 177.011 of the Revised Code. The remaining twenty-five
dollars of each license fee shall be credited to the general fund of
the county.

(B)
If a vendor's identity changes, the vendor shall apply for a new
license. If a vendor wishes to move an existing fixed place of
business to a new location within the same county, the vendor shall
obtain a new vendor's license or submit a request to the commissioner
to transfer the existing vendor's license to the new location. When
the new location has been verified as being within the same county,
the commissioner shall authorize the transfer and notify the county
auditor of the change of location. If a vendor wishes to move an
existing fixed place of business to another county, the vendor's
license shall not transfer and the vendor shall obtain a new vendor's
license from the county in which the business is to be located. The
form of the license shall be prescribed by the commissioner. The fees
collected shall be credited as specified in division (A)(3) of this
section. If a vendor fails to notify the commissioner of a change of
location of its fixed place of business or that its business has
closed, the commissioner may cancel the vendor's license if ordinary
mail sent to the location shown on the license is returned because of
an undeliverable address.

(C)
The commissioner may establish or participate in a registration
system whereby any vendor may obtain a vendor's license by submitting
to the commissioner a vendor's license application and a license fee
of fifty dollars for each fixed place of business at which the vendor
intends to make retail sales. Under this registration system, the
commissioner shall issue a vendor's license to the applicant on
behalf of the county auditor of the county in which the applicant
desires to engage in business, and shall forward a copy of the
application and license fee to that county. Twenty-five dollars of
each license fee received by the commissioner for the issuance of
vendor's licenses shall be deposited into the vendor's license
application fund, which is hereby created in the state treasury. The
remaining twenty-five dollars of each license fee shall be deposited
into the organized crime commission fund for the purposes specified
in section 177.011 of the Revised Code. The commissioner shall
certify to the director of budget and management within ten business
days after the close of a month the license fees to be transmitted to
each county from the vendor's license application fund for vendor's
license applications received by the commissioner during that month.
License fees transmitted to a county for which payment was not
received by the commissioner may be netted against a future
distribution to that county, including distributions made pursuant to
section 5739.21 of the Revised Code.

A
vendor that makes retail sales subject to tax under Chapter 5739. of
the Revised Code pursuant to a permit issued by the division of
liquor control shall obtain a vendor's license in the identical name
and for the identical address as shown on the permit.

Except
as otherwise provided in this section, if a vendor has no fixed place
of business and sells from a vehicle, each vehicle intended to be
used within a county constitutes a place of business for the purpose
of this section.

(D)
As used in this section, "transient vendor" means any
person who makes sales of tangible personal property from vending
machines located on land owned by others, who leases titled motor
vehicles, titled watercraft, or titled outboard motors, who
effectuates leases that are taxed according to division (A)(2) of
section 5739.02 of the Revised Code, or who, in the usual course of
the person's business, transports inventory, stock of goods, or
similar tangible personal property to a temporary place of business
or temporary exhibition, show, fair, flea market, or similar event in
a county in which the person has no fixed place of business, for the
purpose of making retail sales of such property. A "temporary
place of business" means any public or quasi-public place
including, but not limited to, a hotel, rooming house, storeroom,
building, part of a building, tent, vacant lot, railroad car, or
motor vehicle that is temporarily occupied for the purpose of making
retail sales of goods to the public. A place of business is not
temporary if the same person conducted business at the place
continuously for more than six months or occupied the premises as the
person's permanent residence for more than six months, or if the
person intends it to be a fixed place of business.

Any
transient vendor, in lieu of obtaining a vendor's license under
division (A) of this section for counties in which the transient
vendor has no fixed place of business, may apply to the tax
commissioner, on a form prescribed by the commissioner, for a
transient vendor's license. The transient vendor's license authorizes
the transient vendor to make retail sales in any county in which the
transient vendor does not maintain a fixed place of business. Any
holder of a transient vendor's license shall not be required to
obtain a separate vendor's license from the county auditor in that
county. Upon the commissioner's determination that an applicant is a
transient vendor, the applicant shall pay a license fee in the amount
of fifty dollars, at which time the tax commissioner shall issue the
license. Twenty-five dollars of that license fee shall be deposited
into the organized crime commission fund for the purposes specified
in section 177.011 of the Revised Code. The tax commissioner may
require a vendor to be licensed as a transient vendor if, in the
opinion of the commissioner, such licensing is necessary for the
efficient administration of the tax.

Any
holder of a valid transient vendor's license may make retail sales at
a temporary place of business or temporary exhibition, show, fair,
flea market, or similar event, held anywhere in the state without
complying with any provision of section 311.37 of the Revised Code.
Any holder of a valid vendor's license may make retail sales as a
transient vendor at a temporary place of business or temporary
exhibition, show, fair, flea market, or similar event held in any
county in which the vendor maintains a fixed place of business for
which the vendor holds a vendor's license without obtaining a
transient vendor's license.

(E)
Any vendor who is issued a license pursuant to this section shall
display the license or a copy of it prominently, in plain view, at
every place of business of the vendor.

(F)
No owner, organizer, or promoter who operates a fair, flea market,
show, exhibition, convention, or similar event at which transient
vendors are present shall fail to keep a comprehensive record of all
such vendors, listing the vendor's name, permanent address, vendor's
license number, and the type of goods sold. Such records shall be
kept for four years and shall be open to inspection by the
commissioner.

(G)
The commissioner may issue additional types of licenses if required
to efficiently administer the tax imposed by this chapter.

(H)
A vendor shall post in a conspicuous manner at all points of sale on
the vendor's premises where firearms are sold a notice that says the
following: "The State of Ohio has exempted the sale of secure
gun storage and safety devices from the sales and use tax imposed by
this state and local governments." The vendor, upon the retail
sale or transfer of a firearm, shall furnish such a written notice to
the consumer.

Sec.
5747.08.
An
annual return with respect to the tax imposed by section 5747.02 of
the Revised Code and each tax imposed under Chapter 5748. of the
Revised Code shall be made by every taxpayer for any taxable year for
which the taxpayer is liable for the tax imposed by that section or
under that chapter, unless the total credits allowed under division
(E) of section 5747.05 and divisions (F) and (G) of section 5747.055
of the Revised Code for the year are equal to or exceed the tax
imposed by section 5747.02 of the Revised Code, in which case no
return shall be required unless the taxpayer is liable for a tax
imposed pursuant to Chapter 5748. of the Revised Code.

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

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

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

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

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

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

(c)
Except as provided by division (L) of this section, nothing in
division (D) of this section precludes the tax commissioner from
requiring such investors to file the return and make the payment of
taxes and related interest, penalty, and interest penalty required by
this section or section 5747.02, 5747.09, or 5747.15 of the Revised
Code. Nothing in division (D) of this section precludes such an
investor from filing the annual return under this section, utilizing
the refundable credit equal to the investor's proportionate share of
the tax paid by the pass-through entity on behalf of the investor
under division (I) of this section, and making the payment of taxes
imposed under section 5747.02 of the Revised Code. Nothing in
division (D) of this section shall be construed to provide to such an
investor or pass-through entity any additional deduction or credit,
other than the credit provided by division (I) of this section,
solely on account of the entity's filing a return in accordance with
this section. Such a pass-through entity also shall make the filing
and payment of estimated taxes on behalf of the pass-through entity
investors other than an investor that is a person subject to the tax
imposed under section 5733.06 of the Revised Code.

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

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

(b)
The senior citizen credit under division (F) of section 5747.055 of
the Revised Code;

(c)
The lump sum distribution credit under division (G) of section
5747.055 of the Revised Code;

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

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

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

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

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

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

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

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

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

(m)
The earned income tax credit under section 5747.71 of the Revised
Code;

(n)
The lead abatement credit under section 5747.26 of the Revised Code;

(o)
The credit for education expenses under section 5747.72 of the
Revised Code;

(p)
The credit for tuition paid to a nonchartered nonpublic school under
section 5747.75 of the Revised Code
;

(q)
The credit for secure gun storage or safety device purchases under
section 5747.74 of the Revised Code
.

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

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

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

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

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

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

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

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

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

(H)
The amounts withheld pursuant to section 5747.06, 5747.062, 5747.063,
5747.064, 5747.065, or 5747.071 of the Revised Code shall be allowed
to the ultimate recipient of the income as credits against payment of
the appropriate taxes imposed on the ultimate recipient by section
5747.02 and under Chapter 5748. of the Revised Code. As used in this
division, "ultimate recipient" means the person who is
required to report income from which amounts are withheld pursuant to
section 5747.06, 5747.062, 5747.063, 5747.064, 5747.065, or 5747.071
of the Revised Code on the annual return required to be filed under
this section.

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

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

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

(L)
If, for the taxable year, a nonresident or trust that is the owner of
an electing pass-through entity, as defined in section 5747.38 of the
Revised Code, does not have Ohio adjusted gross income or, in the
case of a trust, modified Ohio taxable income other than from one or
more electing pass-through entities, the nonresident or trust shall
not be required to file an annual return under this section. Nothing
in this division precludes such an owner from filing the annual
return under this section, utilizing the refundable credit under
section 5747.39 of the Revised Code equal to the owner's
proportionate share of the tax levied under section 5747.38 of the
Revised Code and paid by the electing pass-through entity, and making
the payment of taxes imposed under section 5747.02 of the Revised
Code.

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

Sec.
5747.74.
(A)
As used in this section, "secure gun storage or safety device"
means either of the following:

(1)
A device that, when installed on a firearm, is designed to prevent
the firearm from being operated without first deactivating the
device;

(2)
A safe, gun safe, gun case, lock box, or other device that is
designed to be or can be used to store a firearm and that is designed
to be unlocked only by means of a key, a combination, or other
similar means.

(B)
There is allowed a nonrefundable credit against a taxpayer's
aggregate tax liability under section 5747.02 of the Revised Code for
amounts spent by the taxpayer during the taxable year to purchase one
or more secure gun storage or safety devices. The amount of the
credit shall equal the purchase price of each such secure gun storage
or safety device, provided that the total credit claimed under this
section by a taxpayer for any taxable year may not exceed two hundred
fifty dollars. The taxpayer shall claim the credit in the order
required under section 5747.98 of the Revised Code.

(C)
The tax commissioner shall require that a taxpayer furnish a sales
receipt or any other information necessary to support a claim for
credit under this section, and no credit shall be allowed unless the
requested information is provided.

Sec.
5747.98.
(A)
To provide a uniform procedure for calculating a taxpayer's aggregate
tax liability under section 5747.02 of the Revised Code, a taxpayer
shall claim any credits to which the taxpayer is entitled in the
following order:

Either
the retirement income credit under division (B) of section 5747.055
of the Revised Code or the lump sum retirement income credits under
divisions (C), (D), and (E) of that section;

Either
the senior citizen credit under division (F) of section 5747.055 of
the Revised Code or the lump sum distribution credit under division
(G) of that section;

The
dependent care credit under section 5747.054 of the Revised Code;

The
credit for displaced workers who pay for job training under section
5747.27 of the Revised Code;

The
twenty-dollar personal exemption credit under section 5747.022 of the
Revised Code;

The
joint filing credit under division (E) of section 5747.05 of the
Revised Code;

The
earned income credit under section 5747.71 of the Revised Code;

The
nonrefundable credit for education expenses under section 5747.72 of
the Revised Code;

The
nonrefundable credit for donations to scholarship granting
organizations under section 5747.73 of the Revised Code;

The
nonrefundable credit for tuition paid to a nonchartered nonpublic
school under section 5747.75 of the Revised Code;

The
nonrefundable vocational job credit under section 5747.057 of the
Revised Code;

The
nonrefundable credit for secure gun storage or safety device
purchases under section 5747.74 of the Revised Code;

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

The
enterprise zone credit under section 5709.66 of the Revised Code;

The
credit for beginning farmers who participate in a financial
management program under division (B) of section 5747.77 of the
Revised Code;

The
credit for commercial vehicle operator training expenses under
section 5747.82 of the Revised Code;

The
nonrefundable welcome home Ohio (WHO) program credit under section
122.633 of the Revised Code;

The
nonrefundable credit for transformational mixed use development tax
credit certificate holders under section 5747.87 of the Revised Code;

The
credit for selling or renting agricultural assets to beginning
farmers under division (A) of section 5747.77 of the Revised Code;

The
credit for purchases of qualifying grape production property under
section 5747.28 of the Revised Code;

The
small business investment credit under section 5747.81 of the Revised
Code;

The
nonrefundable lead abatement credit under section 5747.26 of the
Revised Code;

The
opportunity zone investment credit under section 5747.86 of the
Revised Code;

The
enterprise zone credits under section 5709.65 of the Revised Code;

The
research and development credit under section 5747.331 of the Revised
Code;

The
credit for rehabilitating a historic building under section 5747.76
of the Revised Code;

The
nonrefundable Ohio low-income housing tax credit under section
5747.83 of the Revised Code;

The
nonrefundable affordable single-family home credit under section
5747.84 of the Revised Code;

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

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

The
refundable motion picture and broadway theatrical production credit
under section 5747.66 of the Revised Code;

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

The
refundable credit for taxes paid by a qualifying entity granted under
section 5747.059 of the Revised Code;

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

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

The
refundable credit for rehabilitating a historic building under
section 5747.76 of the Revised Code;

The
refundable credit under section 5747.39 of the Revised Code for taxes
levied under section 5747.38 of the Revised Code paid by an electing
pass-through entity.

(B)
For any credit, except the refundable credits enumerated in this
section and the credit granted under division (H) of section 5747.08
of the Revised Code, the amount of the credit for a taxable year
shall not exceed the taxpayer's aggregate amount of tax due under
section 5747.02 of the Revised Code, after allowing for any other
credit that precedes it in the order required under this section. Any
excess amount of a particular credit may be carried forward if
authorized under the section creating that credit. Nothing in this
chapter shall be construed to allow a taxpayer to claim, directly or
indirectly, a credit more than once for a taxable year.

Section
2.
That
existing sections 2923.11
,
5739.01, 5739.02, 5739.03, 5739.17
,
5747.08, and 5747.98 of the Revised Code are hereby repealed.

Section
3.
The
enactment by this act of section 5747.74 of the Revised Code applies
to taxable years beginning on or after January 1, 2027.

The
amendment by this act of sections 5739.01, 5739.02, 5739.03, and
5739.17 of the Revised Code applies on and after the first day of the
first month beginning after the effective date of this section.

Section
4.
This
act shall be known as Amya's Law for Child Access Prevention.