Regards local regulation, taxing of short-term rental properties

As Introduced

136th
General Assembly

Regular
Session
S. B. No. 104

2025-2026

Senator Brenner

To
amend
sections
351.01, 351.021, 353.06,
4735.11
,
5739.01, 5739.08, 5739.09, 5739.091, and 5741.01

and to enact section 5325.01 of the Revised
Code

to limit the authority of local governments to regulate short-term
rental properties, to extend local lodging taxes to short-term
rentals, to require collection of those taxes by short-term rental
platforms, and to require real estate licenses to be issued
electronically.

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

Section
1.
That

sections
351.01, 351.021, 353.06,
4735.11
,
5739.01, 5739.08, 5739.09, 5739.091, and 5741.01

be amended and section 5325.01 of the Revised Code be enacted to read
as follows:

Sec.
351.01.
As
used in this chapter:

(A)
"Convention facilities authority" means a body corporate
and politic created pursuant to section 351.02 of the Revised Code.

(B)
"Governmental agency" means a department, division, or
other unit of the state government or of a municipal corporation,
county, township, or other political subdivision of the state; any
state university or college, as defined in section 3345.12 of the
Revised Code, community college, state community college, university
branch, or technical college; any other public corporation or agency
having the power to acquire, construct, or operate facilities; the
United States or any agency thereof; and any agency, commission, or
authority established pursuant to an interstate compact or agreement.

(C)
"Person" means any individual, firm, partnership,
association, or corporation, or any combination of them.

(D)
"Facility" or "facilities" means any convention,
entertainment, or sports facility, or combination of them, located
within the territory of the convention facilities authority, together
with all hotels, parking facilities, walkways, and other auxiliary
facilities, real and personal property, property rights, easements
and interests that may be appropriate for, or used in connection
with, the operation of the facility.

(E)
"Cost" means the cost of acquisition of all land,
rights-of-way, property rights, easements, franchise rights, and
interests required for such acquisition; the cost of demolishing or
removing any buildings or structures on land so acquired, including
the cost of acquiring any lands to which such buildings or structures
may be moved; the cost of acquiring or constructing and equipping a
principal office of the convention facilities authority; the cost of
diverting highways, interchange of highways, access roads to private
property, including the cost of land or easements for such access
roads; the cost of public utility and common carrier relocation or
duplication; the cost of all machinery, furnishings, and equipment;
financing charges; interest prior to and during construction and for
no more than eighteen months after completion of construction;
expenses of research and development with respect to facilities;
legal expenses; expenses of obtaining plans, specifications,
engineering surveys, studies, and estimates of cost and revenues;
working capital; expenses necessary or incident to determining the
feasibility or practicability of acquiring or constructing such
facility; administrative expense; and such other expenses as may be
necessary or incident to the acquisition or construction of the
facility, the financing of such acquisition or construction,
including the amount authorized in the resolution of the convention
facilities authority providing for the issuance of convention
facilities authority revenue bonds to be paid into any special funds
from the proceeds of such bonds, the cost of issuing the bonds, and
the financing of the placing of such facility in operation. Any
obligation, cost, or expense incurred by any governmental agency or
person for surveys, borings, preparation of plans and specifications,
and other engineering services, or any other cost described above, in
connection with the acquisition or construction of a facility may be
regarded as part of the cost of such facility and may be reimbursed
out of the proceeds of convention facilities authority revenue bonds
as authorized by this chapter.

(F)
"Owner" includes a person having any title or interest in
any property, rights, easements, or interests authorized to be
acquired by Chapter 351. of the Revised Code.

(G)
"Revenues" means all rentals and other charges received by
the convention facilities authority for the use or services of any
facility, the sale of any merchandise, or the operation of any
concessions; any gift or grant received with respect to any facility,
any moneys received with respect to the lease, sublease, sale,
including installment sale or conditional sale, or other disposition
of a facility or part thereof; moneys received in repayment of and
for interest on any loans made by the authority to a person or
governmental agency, whether from the United States or any
department, administration, or agency thereof, or otherwise; proceeds
of convention facilities authority revenue bonds to the extent the
use thereof for payment of principal or of premium, if any, or
interest on the bonds is authorized by the authority; proceeds from
any insurance, appropriation, or guaranty pertaining to a facility or
property mortgaged to secure bonds or pertaining to the financing of
the facility; income and profit from the investment of the proceeds
of convention facilities authority revenue bonds or of any revenues;
contributions of the proceeds of a tax levied pursuant to division
(C) of section 5739.09 of the Revised Code; and moneys transmitted to
the authority pursuant to division (B) of section 5739.211 and
division (B) of section 5741.031 of the Revised Code.

(H)
"Public roads" includes all public highways, roads, and
streets in the state, whether maintained by the state, county, city,
township, or other political subdivision.

(I)
"Construction," unless the context indicates a different
meaning or intent, includes, but is not limited to, reconstruction,
enlargement, improvement, or providing fixtures, furnishings, and
equipment.

(J)
"Convention facilities authority revenue bonds" or "revenue
bonds," unless the context indicates a different meaning or
intent, includes convention facilities authority revenue notes,
convention facilities authority revenue renewal notes, and convention
facilities authority revenue refunding bonds.

(K)
"Convention facilities authority tax anticipation bonds" or
"tax anticipation bonds," unless the context indicates a
different meaning, includes convention facilities authority tax
anticipation bonds, tax anticipation notes, tax anticipation renewal
notes, and tax anticipation refunding bonds.

(L)
"Bonds and notes" means convention facilities authority
revenue bonds and convention facilities authority tax anticipation
bonds.

(M)
"Territory of the authority" means all of the area of the
county creating the convention facilities authority.

(N)
"Excise taxes" means any of the taxes levied pursuant to
division (B) or (C) of section 351.021 of the Revised Code. "Excise
taxes" does not include taxes levied pursuant to section
4301.424, 5743.026, or 5743.324 of the Revised Code.

(O)
"Transaction" means the charge by a hotel
or
short-term rental property
for
each occupancy by transient guests of a room or suite of rooms used
in a hotel
or
short-term rental property
as
a single unit for any period of twenty-four hours or less.

(P)

"Hotel"

"Hotel,"
"short-term rental property,"
and
"transient guests" have the same meanings as in section
5739.01 of the Revised Code.

(Q)
"Sports facility" means a facility intended to house major
league professional athletic teams.

(R)
"Constructing" or "construction" includes
providing fixtures, furnishings, and equipment.

Sec.
351.021.
(A)
The resolution of the county commissioners creating a convention
facilities authority, or any amendment or supplement to that
resolution, may authorize the authority to levy one or both of the
excise taxes authorized by division (B) of this section to pay the
cost of one or more facilities; to pay principal, interest, and
premium on convention facilities authority tax anticipation bonds
issued to pay those costs; to pay the operating costs of the
authority; to pay operating and maintenance costs of those
facilities; and to pay the costs of administering the excise tax.

(B)
The board of directors of a convention facilities authority that has
been authorized pursuant to resolution adopted, amended, or
supplemented by the board of county commissioners pursuant to
division (A) of this section may levy, by resolution adopted on or
before December 31, 1988, either or both of the following:

(1)
Within the territory of the authority, an additional excise tax not
to exceed four per cent on each transaction. The excise tax
authorized by division (B)(1) of this section shall be in addition to
any excise tax levied pursuant to section 5739.08 or 5739.09 of the
Revised Code, or division (B)(2) of this section.

(2)
Within that portion of any municipal corporation that is located
within the territory of the authority or within the boundaries of any
township that is located within the territory of the authority, which
municipal corporation or township is levying any portion of the
excise tax authorized by division (A) of section 5739.08 of the
Revised Code, and with the approval, by ordinance or resolution, of
the legislative authority of that municipal corporation or township,
an additional excise tax not to exceed nine-tenths of one per cent on
each transaction. The excise tax authorized by division (B)(2) of
this section may be levied only if, on the effective date of the levy
specified in the resolution making the levy, the amount being levied
pursuant to division (A) of section 5739.08 of the Revised Code by
each municipal corporation or township in which the tax authorized by
division (B)(2) of this section will be levied, when added to the
amount levied under division (B)(2) of this section, does not exceed
three per cent on each transaction. The excise tax authorized by
division (B)(2) of this section shall be in addition to any excise
tax that is levied pursuant to section 5739.08 or 5739.09 of the
Revised Code, or division (B)(1) of this section.

(C)(1)
The board of directors of a convention facilities authority that is
located in an eligible Appalachian county; that has been authorized
pursuant to resolution adopted, amended, or supplemented by the board
of county commissioners pursuant to division (A) of this section; and
that is not levying a tax under division (B)(1) or (2) of this
section may levy within the territory of the authority, by resolution
adopted on or before December 31, 2005, an additional excise tax not
to exceed three per cent on each transaction. The excise tax
authorized under division (C)(1) of this section shall be in addition
to any excise tax levied pursuant to section 5739.08 or 5739.09 of
the Revised Code.

As
used in division (C)(1) of this section, "eligible Appalachian
county" means a county in this state designated as being in the
"Appalachian region" under the "Appalachian Regional
Development Act of 1965," 79 Stat. 4, 40 U.S.C. App. 403, and
having a population less than eighty thousand according to the most
recent federal decennial census.

(2)
Division (C)(2) of this section applies only to a convention
facilities authority located in a county with a population, according
to the 2000 federal decennial census, of at least one hundred
thirty-five thousand and not more than one hundred fifty thousand and
containing entirely within its boundaries the territory of a
municipal corporation with a population according to that census of
more than fifty thousand. The board of directors of such a convention
facilities authority, by resolution adopted on or before November 1,
2009, may levy within the territory of the authority an excise tax on
transactions by which lodging by a hotel
or
short-term rental property
is
or is to be furnished to transient guests at a rate not to exceed
three per cent on such transactions for the same purposes for which a
tax may be levied under division (B) of this section. The resolution
may be adopted only if the board of county commissioners of the
county, by resolution, authorizes the levy of the tax. The resolution
of the board of county commissioners is subject to referendum as
prescribed by sections 305.31 to 305.41 of the Revised Code. If,
pursuant to those procedures, a referendum is to be held, the board's
resolution does not take effect until approved by a majority of
electors voting on the question. The convention facilities authority
may adopt the resolution authorized by division (C)(2) of this
section before the election, but the authority's resolution shall not
take effect if the board of commissioners' resolution is not approved
at the election. A tax levied under division (C)(2) of this section
is in addition to any tax levied under section 5739.09 of the Revised
Code.

The
board of directors of a convention facilities authority that levies
an excise tax under division (C)(2) of this section may, by
resolution adopted by a majority of the members of the board on or
before November 1, 2021, amend the resolution levying the tax to
increase the rate of the tax by not more than an additional one per
cent on each transaction. The resolution shall provide that all
revenue from the increase in rate shall be used for the same purposes
for which a tax may be levied under division (B) of this section. The
resolution may be adopted only if the board of county commissioners
of the county, by resolution, authorizes the rate increase.

(3)
The board of directors of a convention facilities authority created
between July 1, 2019, and December 31, 2019, by resolution adopted on
or before December 30, 2020, may levy within the territory of the
authority an excise tax on transactions by which lodging by a hotel

or
short-term rental property
is
or is to be furnished to transient guests at a rate not to exceed
three per cent on such transactions for the purposes described in
division (A) of this section. This tax shall be in addition to any
excise tax levied pursuant to this section or section 5739.08 or
5739.09 of the Revised Code. The resolution levying the tax shall not
take effect sooner than ninety days after the convention facilities
authority is created.

(D)
The authority shall provide for the administration and allocation of
an excise tax levied pursuant to division (B) or (C) of this section.
All receipts arising from those excise taxes shall be expended for
the purposes provided in, and in accordance with this section and
section 351.141 of the Revised Code. An excise tax levied under
division (B) or (C) of this section shall remain in effect at the
rate at which it is levied for at least the duration of the period
for which the receipts from the tax have been anticipated and pledged
pursuant to section 351.141 of the Revised Code.

(E)
Except as provided in division (B)(2) of this section, the levy of an
excise tax on each transaction pursuant to sections 5739.08 and
5739.09 of the Revised Code does not prevent a convention facilities
authority from levying an excise tax pursuant to division (B) or (C)
of this section.

(F)
A convention facilities authority located in a county with a
population greater than eighty thousand but less than ninety thousand
according to the 2010 federal decennial census that levies a tax
under division (B) of this section may amend the resolution levying
the tax to allocate a portion of the revenue from the tax for support
of tourism-related sites or facilities and programs operated by the
county or a municipal corporation within the county in which the
authority is located or for the purpose of leasing lands for county
fairs, erecting buildings for county fair purposes, making
improvements on a county fairground, or for any purpose connected
with the use of a county fairground or with the management thereof by
the county in which the authority is located. The revenue allocated
by the authority for such purposes in a calendar year shall not
exceed twenty-five per cent of the total revenue from the tax in the
preceding calendar year. Revenue allocated for such purposes that is
not fully used by the end of the calendar year may be carried forward
for use in subsequent calendar years. Any amount carried forward does
not count toward the limitation on the amount that may be allocated
for such purposes in succeeding calendar years.

Sec.
353.06.
As
used in this section,
"hotel"

"hotel,"
"short-term rental property,"
and
"transient guests" have the same meanings as in section
5739.01 of the Revised Code.

A
resolution creating a lake facilities authority under section 353.02
of the Revised Code, or any amendments or supplements thereto, may
authorize the authority to levy an excise tax on transactions by
which lodging in a hotel
or
short-term rental property
is
or is to be furnished to transient guests to pay any costs authorized
under this chapter; to pay principal, interest, and premium on lake
facilities authority tax anticipation bonds issued to pay those
costs; to pay the operating costs of the authority; and to pay the
costs of administering the tax.

Upon
the affirmative vote of at least a majority of the qualified electors
in a primary or general election within the impacted lake district
voting at an election held for the purpose of authorizing the tax,
the board of directors of a lake facilities authority authorized to
levy a tax under this section may, by resolution, levy an additional
excise tax within the territory of the impacted lake district on all
transactions by which lodging in a hotel
or
short-term rental property
is
or is to be furnished to transient guests. The rate of the tax, when
added to the aggregate rate of excise taxes levied in the impacted
lake district pursuant to section 351.021, 5739.08, or 5739.09 of the
Revised Code, shall not cause the total aggregate rate to exceed five
per cent on any such transaction.

The
lake facilities authority shall provide for the administration and
allocation of a tax levied pursuant to this section. All receipts
arising from the tax shall be expended for the purposes provided in,
and in accordance with, this section. An excise tax levied under this
section shall remain in effect at the rate at which it is levied for
at least the duration of the period for which the receipts from the
tax have been anticipated and pledged pursuant to section 353.08 of
the Revised Code.

The
form of the ballot in an election held on the question of levying a
tax proposed pursuant to this section shall be as follows or in any
other form acceptable to the secretary of state:

"An
excise tax on all transactions by which lodging in a hotel is or is
to be furnished to transient guests within the territory of the (name
of impacted lake district) ___________ for the purpose of __________
at a rate of _________ for ____________ (number of years the tax is
to be levied).

For
the Excise Tax

Against
the Excise Tax

"

Sec.
4735.11.
The
form and size of licenses
Licenses

issued

under
this chapter shall be
issued
in an electronic format in a form and size
prescribed
by the Ohio real estate commission. Each broker's or foreign real
estate dealer's license shall show the name and address of the
licensee, and in the case of partnership, association, limited
liability company, limited liability partnership, and corporation
licenses, the name and address of each of the members or officers of
the partnership, association, limited liability company, limited
liability partnership, or corporation. A real estate salesperson's
license or a foreign real estate salesperson's license shall show the
name of the real estate broker or foreign real estate dealer with
whom the salesperson is or is to be associated. Each license shall be
issued under the seal prescribed in section 121.20 of the Revised
Code and be signed by the president of the commission.

Sec.
5325.01.
(A)
As used in this section:

(1)
"Local government" means a township, county, or municipal
corporation.

(2)
"Short-term rental property" means a house, apartment,
condominium, cooperative unit, cabin, cottage, or bungalow, or one or
more rooms therein, that is, or are, offered to transients or
travelers for a fee for a period of thirty days or less, regardless
of whether amenities, including meals, daily housekeeping, concierge
services, or linen services, are provided.

(B)
No local government shall adopt or enforce a regulation, requirement,
restriction, or other resolution or ordinance concerning short-term
rental properties that relates to any of the following:

(1)
Prohibiting short-term rental properties;

(2)
Creation of a lottery system to be eligible for short-term rental
property registration;

(3)
Use of zoning requirements to prohibit or limit short-term rental
properties in areas that are zoned to allow for residential use;

(4)
Restricting the number of short-term rental properties a person may
operate;

(5)
A requirement that an owner of a short-term rental property occupy
the short-term rental property.

(C)
A local government may require registration or licensing of
short-term rental properties. Any fee associated with a registration
or licensing of a short-term rental property is subject to both of
the following:

(1)
The amount of the fee shall not exceed twenty dollars per year for
each short-term rental property.

(2)
Fees collected by the local government shall be used only for the
enforcement of regulations on short-term rental properties.

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 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 permanent place of
business. As used in this division, "permanent place of
business" includes any 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)
"Short-term rental platform" means a person that operates a
business platform that uses any online-enabled application, software,
web site, or system to connect owners of short-term rental properties
to transient guests to enable the lodging of guests for
consideration.

(ZZZ)
"Short-term rental property" has the same meaning as in
section 5325.01 of the Revised Code.

Sec.
5739.08.
(A)
A municipal corporation or township may levy an excise tax for any
lawful purpose not to exceed three per cent on transactions by which
lodging by a hotel
or
short-term rental property
is
or is to be furnished to transient guests in addition to the tax
levied by section 5739.02 of the Revised Code. If a municipal
corporation or township repeals a tax imposed under division (A) of
this section, and a county in which the municipal corporation or
township has territory has a tax imposed under division (M) of
section 5739.09 of the Revised Code in effect, the municipal
corporation or township may not reimpose its tax as long as that
county tax remains in effect. A municipal corporation or township in
which a tax is levied under division (B)(2) of section 351.021 of the
Revised Code may not increase the rate of its tax levied under
division (A) of this section to any rate that would cause the total
taxes levied under both of those divisions to exceed three per cent
on any lodging transaction within the municipal corporation or
township.

(B)
The legislative authority of a municipal corporation or the board of
trustees of a township that is not wholly or partly located in a
county that has in effect a resolution levying an excise tax pursuant
to division (A) of section 5739.09 of the Revised Code may, by
ordinance or resolution, levy an additional excise tax not to exceed
three per cent on transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. The legislative
authority of the municipal corporation or the board of trustees of
the township shall deposit at least fifty per cent of the revenue
from the tax levied pursuant to this division into a separate fund,
which shall be spent solely to make contributions to convention and
visitors' bureaus operating within the county in which the municipal
corporation or township is wholly or partly located, and the balance
of that revenue shall be deposited in the general fund. The municipal
corporation or township shall establish all regulations necessary to
provide for the administration and allocation of the tax. The
regulations may prescribe the time for payment of the tax, and may
provide for the imposition of a penalty or interest, or both, for
late payments, provided that the penalty does not exceed ten per cent
of the amount of tax due, and the rate at which interest accrues does
not exceed the rate per annum prescribed pursuant to section 5703.47
of the Revised Code. The levy of a tax under this division is in
addition to any tax imposed on the same transaction by a municipal
corporation or a township under division (A) of this section.

(C)(1)
As used in division (C) of this section, "cost" has the
same meaning as in section 351.01 of the Revised Code, and
"convention center" has the same meaning as in section
307.695 of the Revised Code.

(2)
The legislative authority of the most populous municipal corporation
located wholly or partly in a county in which the board of county
commissioners has levied a tax under division (D) of section 5739.09
of the Revised Code may amend, on or before September 30, 2002, that
municipal corporation's ordinance or resolution that levies an excise
tax on transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests, to provide for all of
the following:

(a)
That the rate of the tax shall be increased by not more than an
additional one per cent on each transaction;

(b)
That all of the revenue from the increase in rate shall be pledged
and contributed to a convention facilities authority established by
the board of county commissioners under Chapter 351. of the Revised
Code on or before May 15, 2002, and be used to pay costs of
constructing, expanding, maintaining, operating, or promoting a
convention center in the county, including paying bonds, or notes
issued in anticipation of bonds, as provided by that chapter;

(c)
That the increase in rate shall not be subject to diminution by
initiative or referendum or by law while any bonds, or notes in
anticipation of bonds, issued by the authority under Chapter 351. of
the Revised Code to which the revenue is pledged, remain outstanding
in accordance with their terms, unless provision is made by law, by
the board of county commissioners, or by the legislative authority,
for an adequate substitute therefor that is satisfactory to the
trustee if a trust agreement secures the bonds.

(3)
The legislative authority of a municipal corporation that, pursuant
to division (C)(2) of this section, has amended its ordinance or
resolution to increase the rate of the tax authorized by division (B)
of this section may further amend the ordinance or resolution to
provide that the revenue referred to in division (C)(2)(b) of this
section shall be pledged and contributed both to a convention
facilities authority to pay the costs of constructing, expanding,
maintaining, or operating one or more convention centers in the
county, including paying bonds, or notes issued in anticipation of
bonds, as provided in Chapter 351. of the Revised Code, and to a
convention and visitors' bureau to pay the costs of promoting one or
more convention centers in the county.

(D)
As used in division (D) of this section, "eligible municipal
corporation" means a municipal corporation that, on September
29, 2017, levied a tax under division (B) of this section at a rate
of three per cent and that is located in a county that, on that date,
levied a tax under division (A) of section 5739.09 of the Revised
Code at a rate of three per cent and that has, according to the most
recent federal decennial census, a population exceeding three hundred
thousand but not greater than three hundred fifty thousand.

The
legislative authority of an eligible municipal corporation may amend,
on or before December 31, 2017, that municipal corporation's
ordinance or resolution that levies an excise tax on transactions by
which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests, to provide for the
following:

(1)
That the rate of the tax shall be increased by not more than an
additional three per cent on each transaction;

(2)
That all of the revenue from the increase in rate shall be used by
the municipal corporation for economic development and
tourism-related purposes.

(E)(1)
As used in division (E) of this section, "cost" and
"facility" have the same meanings as in section 351.01 of
the Revised Code, except that "facility" does not include a
"sports facility," as that term is defined in that section,
other than a facility intended to house a major league soccer team.

(2)
The legislative authority of a municipal corporation that has a
population exceeding three hundred thousand but less than three
hundred fifty thousand and that has adopted a resolution or ordinance
levying a tax authorized by division (A) of this section may amend
the resolution or ordinance to provide that all or a portion of the
revenue referred to in division (A) of this section may be pledged
and contributed to a convention facilities authority or a port
authority to pay the costs of acquiring, constructing, renovating,
expanding, maintaining, or operating one or more facilities in the
county, including paying bonds, or notes issued in anticipation of
bonds, or paying the expenses of maintaining, operating, or promoting
one or more facilities.

(3)
The legislative authority of any municipal corporation that, pursuant
to division (C)(2) of this section, has amended a resolution or
ordinance levying the tax authorized by division (D) of section
5739.09 of the Revised Code may further amend the resolution or
ordinance to provide that all or a portion of the revenue referred to
in division (C)(2)(b) of this section may be pledged and contributed
to an issuing authority, as defined in section 5739.093 of the
Revised Code, to pay the costs of acquiring, constructing,
renovating, expanding, maintaining, or operating one or more
facilities in the county, including paying bonds, or notes issued in
anticipation of bonds, or paying the expenses of maintaining,
operating, or promoting one or more facilities.

Sec.
5739.09.
(A)(1)
A board of county commissioners may, by resolution adopted by a
majority of the members of the board, levy an excise tax not to
exceed three per cent on transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. The board shall
establish all regulations necessary to provide for the administration
and allocation of the tax. The regulations may prescribe the time for
payment of the tax, and may provide for the imposition of a penalty
or interest, or both, for late payments, provided that the penalty
does not exceed ten per cent of the amount of tax due, and the rate
at which interest accrues does not exceed the rate per annum
prescribed pursuant to section 5703.47 of the Revised Code. Except as
otherwise provided in this section, the regulations shall provide,
after deducting the real and actual costs of administering the tax,
for the return to each municipal corporation or township that does
not levy an excise tax on the transactions, a uniform percentage of
the tax collected in the municipal corporation or in the
unincorporated portion of the township from each transaction, not to
exceed thirty-three and one-third per cent. Except as provided in
this section, the remainder of the revenue arising from the tax shall
be deposited in a separate fund and shall be spent either (a) to make
contributions to the convention and visitors' bureau operating within
the county, including a pledge and contribution of any portion of the
remainder pursuant to an agreement authorized by section 307.678 or
307.695 of the Revised Code or (b) to pay, if authorized in the
regulations, for public safety services in a resort area designated
under section 5739.101 of the Revised Code.

(2)
If the board of county commissioners of an eligible county as defined
in section 307.678 or 307.695 of the Revised Code adopts a resolution
amending a resolution levying a tax under division (A) of this
section to provide that revenue from the tax shall be used by the
board as described in either division (D) of section 307.678 or
division (H) of section 307.695 of the Revised Code, the remainder of
the revenue shall be used as described in the resolution making that
amendment.

(3)
Except as provided in division (B), (C), (D), (E), (F), (G), (H),
(I), (J), (K), or (Q) of this section, on and after May 10, 1994, a
board of county commissioners may not levy an excise tax pursuant to
division (A) of this section in any municipal corporation or township
located wholly or partly within the county that has in effect an
ordinance or resolution levying an excise tax pursuant to division
(B) of section 5739.08 of the Revised Code.

(4)
The board of a county that has levied a tax under division (M) of
this section may, by resolution adopted within ninety days after July
15, 1985, by a majority of the members of the board, amend the
resolution levying a tax under division (A) of this section to
provide for a portion of that tax to be pledged and contributed in
accordance with an agreement entered into under section 307.695 of
the Revised Code. A tax, any revenue from which is pledged pursuant
to such an agreement, shall remain in effect at the rate at which it
is imposed for the duration of the period for which the revenue from
the tax has been so pledged.

(5)
The board of county commissioners of an eligible county as defined in
section 307.695 of the Revised Code may, by resolution adopted by a
majority of the members of the board, amend a resolution levying a
tax under division (A) of this section to provide that the revenue
from the tax shall be used by the board as described in division (H)
of section 307.695 of the Revised Code, in which case the tax shall
remain in effect at the rate at which it was imposed for the duration
of any agreement entered into by the board under section 307.695 of
the Revised Code, the duration during which any securities issued by
the board under that section are outstanding, or the duration of the
period during which the board owns a project as defined in section
307.695 of the Revised Code, whichever duration is longest.

(6)
The board of county commissioners of an eligible county as defined in
section 307.678 of the Revised Code may, by resolution, amend a
resolution levying a tax under division (A) of this section to
provide that revenue from the tax, not to exceed five hundred
thousand dollars each year, may be used as described in division (E)
of section 307.678 of the Revised Code.

(7)
Notwithstanding division (A) of this section, the board of county
commissioners of a county described in division (H)(1) of this
section may, by resolution, amend a resolution levying a tax under
division (A) of this section to provide that all or a portion of the
revenue from the tax, including any revenue otherwise required to be
returned to townships or municipal corporations under that division,
may be used or pledged for the payment of debt service on securities
issued to pay the costs of constructing, operating, and maintaining
sports facilities described in division (H)(2) of this section.

(8)
The board of county commissioners of a county described in division
(I) of this section may, by resolution, amend a resolution levying a
tax under division (A) of this section to provide that all or a
portion of the revenue from the tax may be used for the purposes
described in section 307.679 of the Revised Code.

(B)
A board of county commissioners that levies an excise tax under
division (A) of this section on June 30, 1997, at a rate of three per
cent, and that has pledged revenue from the tax to an agreement
entered into under section 307.695 of the Revised Code or, in the
case of the board of county commissioners of an eligible county as
defined in section 307.695 of the Revised Code, has amended a
resolution levying a tax under division (M) of this section to
provide that proceeds from the tax shall be used by the board as
described in division (H) of section 307.695 of the Revised Code,
may, at any time by a resolution adopted by a majority of the members
of the board, amend the resolution levying a tax under division (A)
of this section to provide for an increase in the rate of that tax up
to seven per cent on each transaction; to provide that revenue from
the increase in the rate shall be used as described in division (H)
of section 307.695 of the Revised Code or be spent solely to make
contributions to the convention and visitors' bureau operating within
the county to be used specifically for promotion, advertising, and
marketing of the region in which the county is located; and to
provide that the rate in excess of the three per cent levied under
division (A) of this section shall remain in effect at the rate at
which it is imposed for the duration of the period during which any
agreement is in effect that was entered into under section 307.695 of
the Revised Code by the board of county commissioners levying a tax
under division (A) of this section, the duration of the period during
which any securities issued by the board under division (I) of
section 307.695 of the Revised Code are outstanding, or the duration
of the period during which the board owns a project as defined in
section 307.695 of the Revised Code, whichever duration is longest.
The amendment also shall provide that no portion of that revenue need
be returned to townships or municipal corporations as would otherwise
be required under division (A) of this section.

(C)(1)
As used in division (C) of this section, "cost" and
"facility" have the same meanings as in section 351.01 of
the Revised Code, and "convention center" has the same
meaning as in section 307.695 of the Revised Code.

(2)
A board of county commissioners that levies a tax under division (A)
of this section on March 18, 1999, at a rate of three per cent may,
by resolution adopted not later than forty-five days after March 18,
1999, amend the resolution levying the tax to provide for all of the
following:

(a)
That the rate of the tax shall be increased by not more than an
additional four per cent on each transaction;

(b)
That all of the revenue from the increase in the rate shall be
pledged and contributed to a convention facilities authority
established by the board of county commissioners under Chapter 351.
of the Revised Code on or before November 15, 1998, and used to pay
costs of constructing, maintaining, operating, and promoting a
facility in the county, including paying bonds, or notes issued in
anticipation of bonds, as provided by that chapter;

(c)
That no portion of the revenue arising from the increase in rate need
be returned to municipal corporations or townships as otherwise
required under division (A) of this section;

(d)
That the increase in rate shall not be subject to diminution by
initiative or referendum or by law while any bonds, or notes in
anticipation of bonds, issued by the authority under Chapter 351. of
the Revised Code to which the revenue is pledged, remain outstanding
in accordance with their terms, unless provision is made by law or by
the board of county commissioners for an adequate substitute therefor
that is satisfactory to the trustee if a trust agreement secures the
bonds.

(3)
Division (C) of this section does not apply to the board of county
commissioners of any county in which a convention center or facility
exists or is being constructed on November 15, 1998, or of any county
in which a convention facilities authority levies a tax pursuant to
section 351.021 of the Revised Code on that date.

(D)(1)
As used in division (D) of this section, "cost" has the
same meaning as in section 351.01 of the Revised Code, and
"convention center" has the same meaning as in section
307.695 of the Revised Code.

(2)
A board of county commissioners that levies a tax under division (A)
of this section on June 30, 2002, at a rate of three per cent may, by
resolution adopted not later than September 30, 2002, amend the
resolution levying the tax to provide for all of the following:

(a)
That the rate of the tax shall be increased by not more than an
additional three and one-half per cent on each transaction;

(b)
That all of the revenue from the increase in rate shall be pledged
and contributed to a convention facilities authority established by
the board of county commissioners under Chapter 351. of the Revised
Code on or before May 15, 2002, and be used to pay costs of
constructing, expanding, maintaining, operating, or promoting a
convention center in the county, including paying bonds, or notes
issued in anticipation of bonds, as provided by that chapter;

(c)
That no portion of the revenue arising from the increase in rate need
be returned to municipal corporations or townships as otherwise
required under division (A) of this section;

(d)
That the increase in rate shall not be subject to diminution by
initiative or referendum or by law while any bonds, or notes in
anticipation of bonds, issued by the authority under Chapter 351. of
the Revised Code to which the revenue is pledged, remain outstanding
in accordance with their terms, unless provision is made by law or by
the board of county commissioners for an adequate substitute therefor
that is satisfactory to the trustee if a trust agreement secures the
bonds.

(3)
Any board of county commissioners that, pursuant to division (D)(2)
of this section, has amended a resolution levying the tax authorized
by division (A) of this section may further amend the resolution to
provide that the revenue referred to in division (D)(2)(b) of this
section shall be pledged and contributed both to a convention
facilities authority to pay the costs of constructing, expanding,
maintaining, or operating one or more convention centers in the
county, including paying bonds, or notes issued in anticipation of
bonds, as provided in Chapter 351. of the Revised Code, and to a
convention and visitors' bureau to pay the costs of promoting one or
more convention centers in the county.

(E)(1)
As used in division (E) of this section:

(a)
"Port authority" means a port authority created under
Chapter 4582. of the Revised Code.

(b)
"Port authority military-use facility" means port authority
facilities on which or adjacent to which is located an installation
of the armed forces of the United States, a reserve component
thereof, or the national guard and at least part of which is made
available for use, for consideration, by the armed forces of the
United States, a reserve component thereof, or the national guard.

(2)
For the purpose of contributing revenue to pay operating expenses of
a port authority that operates a port authority military-use
facility, the board of county commissioners of a county that created,
participated in the creation of, or has joined such a port authority
may do one or both of the following:

(a)
Amend a resolution previously adopted under division (A) of this
section to designate some or all of the revenue from the tax levied
under the resolution to be used for that purpose, notwithstanding
that division;

(b)
Amend a resolution previously adopted under division (A) of this
section to increase the rate of the tax by not more than an
additional two per cent and use the revenue from the increase
exclusively for that purpose.

(3)
If a board of county commissioners amends a resolution to increase
the rate of a tax as authorized in division (E)(2)(b) of this
section, the board also may amend the resolution to specify that the
increase in rate of the tax does not apply to "hotels," as
otherwise defined in section 5739.01 of the Revised Code, having
fewer rooms used for the accommodation of guests than a number of
rooms specified by the board.
This
limitation on the hotels to which the tax applies does not apply on
and after the first day of the first month starting thirty or more
days after the effective date of this amendment.

(F)(1)
A board of county commissioners of a county organized under a county
charter adopted pursuant to Article X, Section 3, Ohio Constitution,
and that levies an excise tax under division (A) of this section at a
rate of three per cent and levies an additional excise tax under
division (O) of this section at a rate of one and one-half per cent
may, by resolution adopted not later than January 1, 2008, by a
majority of the members of the board, amend the resolution levying a
tax under division (A) of this section to provide for an increase in
the rate of that tax by not more than an additional one per cent on
transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. Notwithstanding
divisions (A) and (O) of this section, the resolution shall provide
that all of the revenue from the increase in rate, after deducting
the real and actual costs of administering the tax, shall be used to
pay the costs of improving, expanding, equipping, financing, or
operating a convention center by a convention and visitors' bureau in
the county.

(2)
The increase in rate shall remain in effect for the period specified
in the resolution, not to exceed ten years, and may be extended for
an additional period of time not to exceed ten years thereafter by a
resolution adopted by a majority of the members of the board.

(3)
The increase in rate shall be subject to the regulations adopted
under division (A) of this section, except that the resolution may
provide that no portion of the revenue from the increase in the rate
shall be returned to townships or municipal corporations as would
otherwise be required under that division.

(G)(1)
Division (G) of this section applies only to a county with a
population greater than sixty-five thousand and less than seventy
thousand according to the most recent federal decennial census and in
which, on December 31, 2006, an excise tax is levied under division
(A) of this section at a rate not less than and not greater than
three per cent, and in which the most recent increase in the rate of
that tax was enacted or took effect in November 1984.

(2)
The board of county commissioners of a county to which division (G)
of this section applies, by resolution adopted by a majority of the
members of the board, may increase the rate of the tax by not more
than one per cent on transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. The increase in rate
shall be for the purpose of paying expenses deemed necessary by the
convention and visitors' bureau operating in the county to promote
travel and tourism.

(3)
The increase in rate shall remain in effect for the period specified
in the resolution, not to exceed twenty years, provided that the
increase in rate may not continue beyond the time when the purpose
for which the increase is levied ceases to exist. If revenue from the
increase in rate is pledged to the payment of debt charges on
securities, the increase in rate is not subject to diminution by
initiative or referendum or by law for so long as the securities are
outstanding, unless provision is made by law or by the board of
county commissioners for an adequate substitute for that revenue that
is satisfactory to the trustee if a trust agreement secures payment
of the debt charges.

(4)
The increase in rate shall be subject to the regulations adopted
under division (A) of this section, except that the resolution may
provide that no portion of the revenue from the increase in the rate
shall be returned to townships or municipal corporations as would
otherwise be required under division (A) of this section.

(5)
A resolution adopted under division (G) of this section is subject to
referendum under sections 305.31 to 305.99 of the Revised Code.

(H)(1)
Division (H) of this section applies only to a county satisfying all
of the following:

(a)
The population of the county is greater than one hundred seventy-five
thousand and less than two hundred twenty-five thousand according to
the most recent federal decennial census.

(b)
An amusement park with an average yearly attendance in excess of two
million guests is located in the county.

(c)
On December 31, 2014, an excise tax was levied in the county under
division (A) of this section at a rate of three per cent.

(2)
The board of county commissioners of a county to which division (H)
of this section applies, by resolution adopted by a majority of the
members of the board, may increase the rate of the tax by not more
than one per cent on transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. The increase in rate
shall be used to pay the costs of constructing and maintaining
facilities owned by the county or by a port authority created under
Chapter 4582. of the Revised Code, and designed to host sporting
events and expenses deemed necessary by the convention and visitors'
bureau operating in the county to promote travel and tourism with
reference to the sports facilities, and to pay or pledge to the
payment of debt service on securities issued to pay the costs of
constructing, operating, and maintaining the sports facilities.

(3)
The increase in rate shall remain in effect for the period specified
in the resolution. If revenue from the increase in rate is pledged to
the payment of debt charges on securities, the increase in rate is
not subject to diminution by initiative or referendum or by law for
so long as the securities are outstanding, unless provision is made
by law or by the board of county commissioners for an adequate
substitute for that revenue that is satisfactory to the trustee if a
trust agreement secures payment of the debt charges.

(4)
The increase in rate shall be subject to the regulations adopted
under division (A) of this section, except that the resolution may
provide that no portion of the revenue from the increase in the rate
shall be returned to townships or municipal corporations as would
otherwise be required under division (A) of this section.

(I)(1)
The board of county commissioners of a county with a population
greater than seventy-five thousand and less than seventy-eight
thousand, by resolution adopted by a majority of the members of the
board not later than October 15, 2015, may increase the rate of the
tax by not more than one per cent on transactions by which lodging by
a hotel

or short-term rental property

is or is to be furnished to transient guests. The increase in rate
shall be for the purposes described in section 307.679 of the Revised
Code or for the promotion of travel and tourism in the county,
including travel and tourism to sports facilities.

(2)
The increase in rate shall remain in effect for the period specified
in the resolution and as necessary to fulfill the county's
obligations under a cooperative agreement entered into under section
307.679 of the Revised Code. If the resolution is adopted by the
board before September 29, 2015, but after that enactment becomes
law, the increase in rate shall become effective beginning on
September 29, 2015. If revenue from the increase in rate is pledged
to the payment of debt charges on securities, or to substitute for
other revenues pledged to the payment of such debt, the increase in
rate is not subject to diminution by initiative or referendum or by
law for so long as the securities are outstanding, unless provision
is made by law or by the board of county commissioners for an
adequate substitute for that revenue that is satisfactory to the
trustee if a trust agreement secures payment of the debt charges.

(3)
The increase in rate shall be subject to the regulations adopted
under division (A) of this section, except that no portion of the
revenue from the increase in the rate shall be returned to townships
or municipal corporations as would otherwise be required under
division (A) of this section.

(J)(1)
Division (J) of this section applies only to counties satisfying
either of the following:

(a)
A county that, on July 1, 2015, does not levy an excise tax under
division (A) of this section and that has a population of at least
thirty-nine thousand but not more than forty thousand according to
the 2010 federal decennial census;

(b)
A county that, on July 1, 2015, levies an excise tax under division
(A) of this section at a rate of three per cent and that has a
population of at least seventy-one thousand but not more than
seventy-five thousand according to 2010 federal decennial census.

(2)
The board of county commissioners of a county to which division (J)
of this section applies, by resolution adopted by a majority of the
members of the board, may levy an excise tax at a rate not to exceed
three per cent on transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests for the purpose of
acquiring, constructing, equipping, or repairing permanent
improvements, as defined in section 133.01 of the Revised Code.

(3)
If the board does not levy a tax under division (A) of this section,
the board shall establish regulations necessary to provide for the
administration of the tax, which may prescribe the time for payment
of the tax and the imposition of penalty or interest subject to the
limitations on penalty and interest provided in division (A) of this
section. No portion of the revenue shall be returned to townships or
municipal corporations in the county unless otherwise provided by
resolution of the board.

(4)
The tax shall apply throughout the territory of the county, including
in any township or municipal corporation levying an excise tax under
division (A) or (B) of section 5739.08 of the Revised Code. The levy
of the tax is subject to referendum as provided under section 305.31
of the Revised Code.

(5)
The tax shall remain in effect for the period specified in the
resolution. If revenue from the increase in rate is pledged to the
payment of debt charges on securities, the increase in rate is not
subject to diminution by initiative or referendum or by law for so
long as the securities are outstanding unless provision is made by
law or by the board for an adequate substitute for that revenue that
is satisfactory to the trustee if a trust agreement secures payment
of the debt charges.

(K)(1)
The board of county commissioners of an eligible county, as defined
in section 307.678 of the Revised Code, that levies an excise tax
under division (A) of this section on July 1, 2017, at a rate of
three per cent may, by resolution adopted by a majority of the
members of the board, amend the resolution levying the tax to
increase the rate of the tax by not more than an additional three per
cent on each transaction.

(2)
No portion of the revenue shall be returned to townships or municipal
corporations in the county unless otherwise provided by resolution of
the board. Otherwise, the revenue from the increase in the rate shall
be distributed and used in the same manner described under division
(A) of this section or distributed or used to provide credit
enhancement facilities as authorized under section 307.678 of the
Revised Code.

(3)
The increase in rate shall remain in effect for the period specified
in the resolution. If revenue from the increase in rate is pledged to
the payment of debt charges on securities, the increase in rate is
not subject to diminution by initiative or referendum or by law for
so long as the securities are outstanding unless provision is made by
law or by the board for an adequate substitute for that revenue that
is satisfactory to the trustee if a trust agreement secures payment
of the debt charges.

(L)(1)
As used in division (L) of this section:

(a)
"Eligible county" means a county that has a population
greater than one hundred ninety thousand and less than two hundred
thousand according to the 2010 federal decennial census and that
levies an excise tax under division (A) of this section at a rate of
three per cent.

(b)
"Professional sports facility" means a sports facility that
is intended to house major or minor league professional athletic
teams, including a stadium, together with all parking facilities,
walkways, and other auxiliary facilities, real and personal property,
property rights, easements, and interests that may be appropriate
for, or used in connection with, the operation of the facility.

(2)
Subject to division (L)(3) of this section, the board of county
commissioners of an eligible county, by resolution adopted by a
majority of the members of the board, may increase the rate of the
tax by not more than one per cent on transactions by which lodging by
a hotel

or short-term rental property

is or is to be furnished to transient guests. Revenue from the
increase in rate shall be used for the purposes of paying the costs
of constructing, improving, and maintaining a professional sports
facility in the county and paying expenses considered necessary by
the convention and visitors' bureau operating in the county to
promote travel and tourism with respect to that professional sports
facility. The tax shall take effect only after the convention and
visitors' bureau enters into a contract for the construction,
improvement, or maintenance of a professional sports facility that is
or will be located on property acquired, in whole or in part, with
revenue from the increased rate, and thereafter shall remain in
effect for the period specified in the resolution. If revenue from
the increase in rate is pledged to the payment of debt charges on
securities, the increase in rate is not subject to diminution by
initiative or referendum or by law for so long as the securities are
outstanding, unless a provision is made by law or by the board of
county commissioners for an adequate substitute for that revenue that
is satisfactory to the trustee if a trust agreement secures payment
of the debt charges. The increase in rate shall be subject to the
regulations adopted under division (A) of this section, except that
the resolution may provide that no portion of the revenue from the
increase in the rate shall be returned to townships or municipal
corporations as would otherwise be required under division (A) of
this section.

(3)
If, on December 31, 2019, the convention and visitors' bureau has not
entered into a contract for the construction, improvement, or
maintenance of a professional sports facility that is or will be
located on property acquired, in whole or in part, with revenue from
the increased rate, the authority to levy the tax under division
(L)(2) of this section is hereby repealed on that date.

(M)(1)
For the purposes described in section 307.695 of the Revised Code and
to cover the costs of administering the tax, a board of county
commissioners of a county where a tax imposed under division (A) of
this section is in effect may, by resolution adopted within ninety
days after July 15, 1985, by a majority of the members of the board,
levy an additional excise tax not to exceed three per cent on
transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. The tax authorized by
division (M) of this section shall be in addition to any tax that is
levied pursuant to divisions (A) to (L) of this section, but it shall
not apply to transactions subject to a tax levied by a municipal
corporation or township pursuant to section 5739.08 of the Revised
Code.

(2)
The board shall establish all regulations necessary to provide for
the administration and allocation of the tax. The regulations may
prescribe the time for payment of the tax, and may provide for the
imposition of a penalty or interest, or both, for late payments,
provided that the penalty does not exceed ten per cent of the amount
of tax due, and the rate at which interest accrues does not exceed
the rate per annum prescribed pursuant to section 5703.47 of the
Revised Code.

(3)
All revenues arising from the tax shall be expended in accordance
with section 307.695 of the Revised Code. The board of county
commissioners of an eligible county as defined in section 307.695 of
the Revised Code may, by resolution adopted by a majority of the
members of the board, amend the resolution levying a tax under this
division to provide that the revenue from the tax shall be used by
the board as described in division (H) of section 307.695 of the
Revised Code.

(4)
A tax imposed under this division shall remain in effect at the rate
at which it is imposed for the duration of the period during which
any agreement entered into by the board under section 307.695 of the
Revised Code is in effect, the duration of the period during which
any securities issued by the board under division (I) of section
307.695 of the Revised Code are outstanding, or the duration of the
period during which the board owns a project as defined in section
307.695 of the Revised Code, whichever duration is longest.

(N)(1)
For the purpose of providing contributions under division (B)(1) of
section 307.671 of the Revised Code to enable the acquisition,
construction, and equipping of a port authority educational and
cultural facility in the county and, to the extent provided for in
the cooperative agreement authorized by that section, for the purpose
of paying debt service charges on bonds, or notes in anticipation of
bonds, described in division (B)(1)(b) of that section, a board of
county commissioners, by resolution adopted within ninety days after
December 22, 1992, by a majority of the members of the board, may
levy an additional excise tax not to exceed one and one-half per cent
on transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. The excise tax
authorized by division (N) of this section shall be in addition to
any tax that is levied pursuant to divisions (A) to (M) of this
section, to any excise tax levied pursuant to section 5739.08 of the
Revised Code, and to any excise tax levied pursuant to section
351.021 of the Revised Code.

(2)
The board of county commissioners shall establish all regulations
necessary to provide for the administration and allocation of the tax
that are not inconsistent with this section or section 307.671 of the
Revised Code. The regulations may prescribe the time for payment of
the tax, and may provide for the imposition of a penalty or interest,
or both, for late payments, provided that the penalty does not exceed
ten per cent of the amount of tax due, and the rate at which interest
accrues does not exceed the rate per annum prescribed pursuant to
section 5703.47 of the Revised Code.

(3)
All revenues arising from the tax shall be expended in accordance
with section 307.671 of the Revised Code and division (N) of this
section. The levy of a tax imposed under division (N) of this section
may not commence prior to the first day of the month next following
the execution of the cooperative agreement authorized by section
307.671 of the Revised Code by all parties to that agreement.

(4)
The tax shall remain in effect at the rate at which it is imposed for
the period of time described in division (C) of section 307.671 of
the Revised Code for which the revenue from the tax has been pledged
by the county to the corporation pursuant to that section, but, to
any extent provided for in the cooperative agreement, for no lesser
period than the period of time required for payment of the debt
service charges on bonds, or notes in anticipation of bonds,
described in division (B)(1)(b) of that section.

(O)(1)
For the purpose of paying the costs of acquiring, constructing,
equipping, and improving a municipal educational and cultural
facility, including debt service charges on bonds provided for in
division (B) of section 307.672 of the Revised Code, and for any
additional purposes determined by the county in the resolution
levying the tax or amendments to the resolution, including subsequent
amendments providing for paying costs of acquiring, constructing,
renovating, rehabilitating, equipping, and improving a port authority
educational and cultural performing arts facility, as defined in
section 307.674 of the Revised Code, and including debt service
charges on bonds provided for in division (B) of section 307.674 of
the Revised Code, the legislative authority of a county, by
resolution adopted within ninety days after June 30, 1993, by a
majority of the members of the legislative authority, may levy an
additional excise tax not to exceed one and one-half per cent on
transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. The excise tax
authorized by division (O) of this section shall be in addition to
any tax that is levied pursuant to divisions (A) to (N) of this
section, to any excise tax levied pursuant to section 5739.08 of the
Revised Code, and to any excise tax levied pursuant to section
351.021 of the Revised Code.

(2)
The legislative authority of the county shall establish all
regulations necessary to provide for the administration and
allocation of the tax. The regulations may prescribe the time for
payment of the tax, and may provide for the imposition of a penalty
or interest, or both, for late payments, provided that the penalty
does not exceed ten per cent of the amount of tax due, and the rate
at which interest accrues does not exceed the rate per annum
prescribed pursuant to section 5703.47 of the Revised Code.

(3)
All revenues arising from the tax shall be expended in accordance
with section 307.672 of the Revised Code and this division. The levy
of a tax imposed under this division shall not commence prior to the
first day of the month next following the execution of the
cooperative agreement authorized by section 307.672 of the Revised
Code by all parties to that agreement. The tax shall remain in effect
at the rate at which it is imposed for the period of time determined
by the legislative authority of the county. That period of time shall
not exceed fifteen years, except that the legislative authority of a
county with a population of less than two hundred fifty thousand
according to the most recent federal decennial census, by resolution
adopted by a majority of its members before the original tax expires,
may extend the duration of the tax for an additional period of time.
The additional period of time by which a legislative authority
extends a tax levied under division (O) of this section shall not
exceed fifteen years.

(P)(1)
The legislative authority of a county that has levied a tax under
division (O) of this section may, by resolution adopted within one
hundred eighty days after January 4, 2001, by a majority of the
members of the legislative authority, amend the resolution levying a
tax under that division to provide for the use of the proceeds of
that tax, to the extent that it is no longer needed for its original
purpose as determined by the parties to a cooperative agreement
amendment pursuant to division (D) of section 307.672 of the Revised
Code, to pay costs of acquiring, constructing, renovating,
rehabilitating, equipping, and improving a port authority educational
and cultural performing arts facility, including debt service charges
on bonds provided for in division (B) of section 307.674 of the
Revised Code, and to pay all obligations under any guaranty
agreements, reimbursement agreements, or other credit enhancement
agreements described in division (C) of section 307.674 of the
Revised Code.

(2)
The resolution may also provide for the extension of the tax at the
same rate for the longer of the period of time determined by the
legislative authority of the county, but not to exceed an additional
twenty-five years, or the period of time required to pay all debt
service charges on bonds provided for in division (B) of section
307.672 of the Revised Code and on port authority revenue bonds
provided for in division (B) of section 307.674 of the Revised Code.

(3)
All revenues arising from the amendment and extension of the tax
shall be expended in accordance with section 307.674 of the Revised
Code and divisions (O) and (P) of this section.

(Q)(1)
As used in division (Q) of this section:

(a)
"Convention facilities authority" has the same meaning as
in section 351.01 of the Revised Code.

(b)
"Convention center" has the same meaning as in section
307.695 of the Revised Code.

(2)
Notwithstanding any contrary provision of division (N) of this
section, the legislative authority of a county with a population of
one million or more according to the most recent federal decennial
census that has levied a tax under division (N) of this section may,
by resolution adopted by a majority of the members of the legislative
authority, provide for the extension of such levy and may provide
that the proceeds of that tax, to the extent that they are no longer
needed for their original purpose as defined by a cooperative
agreement entered into under section 307.671 of the Revised Code,
shall be deposited into the county general revenue fund. The
resolution shall provide for the extension of the tax at a rate not
to exceed the rate specified in division (N) of this section for a
period of time determined by the legislative authority of the county,
but not to exceed an additional forty years.

(3)
The legislative authority of a county with a population of one
million or more that has levied a tax under division (A) of this
section may, by resolution adopted by a majority of the members of
the legislative authority, increase the rate of the tax levied by
such county under division (A) of this section to a rate not to
exceed five per cent on transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. Notwithstanding any
contrary provision of division (A) of this section, the resolution
may provide that all collections resulting from the rate levied in
excess of three per cent, after deducting the real and actual costs
of administering the tax, shall be deposited in the county general
fund.

(4)
The legislative authority of a county with a population of one
million or more that has levied a tax under division (A) of this
section may, by resolution adopted on or before August 30, 2004, by a
majority of the members of the legislative authority, provide that
all or a portion of the proceeds of the tax levied under division (A)
of this section, after deducting the real and actual costs of
administering the tax and the amounts required to be returned to
townships and municipal corporations with respect to the first three
per cent levied under division (A) of this section, shall be
deposited in the county general fund, provided that such proceeds
shall be used to satisfy any pledges made in connection with an
agreement entered into under section 307.695 of the Revised Code.

(5)
No amount collected from a tax levied, extended, or required to be
deposited in the county general fund under division (Q) of this
section shall be contributed to a convention facilities authority,
corporation, or other entity created after July 1, 2003, for the
principal purpose of constructing, improving, expanding, equipping,
financing, or operating a convention center unless the mayor of the
municipal corporation in which the convention center is to be
operated by that convention facilities authority, corporation, or
other entity has consented to the creation of that convention
facilities authority, corporation, or entity. Notwithstanding any
contrary provision of section 351.04 of the Revised Code, if a tax is
levied by a county under division (Q) of this section, the board of
county commissioners of that county may determine the manner of
selection, the qualifications, the number, and terms of office of the
members of the board of directors of any convention facilities
authority, corporation, or other entity described in division (Q)(5)
of this section.

(6)(a)
No amount collected from a tax levied, extended, or required to be
deposited in the county general fund under division (Q) of this
section may be used for any purpose other than paying the direct and
indirect costs of constructing, improving, expanding, equipping,
financing, or operating a convention center and for the real and
actual costs of administering the tax, unless, prior to the adoption
of the resolution of the legislative authority of the county
authorizing the levy, extension, increase, or deposit, the county and
the mayor of the most populous municipal corporation in that county
have entered into an agreement as to the use of such amounts,
provided that such agreement has been approved by a majority of the
mayors of the other municipal corporations in that county. The
agreement shall provide that the amounts to be used for purposes
other than paying the convention center or administrative costs
described in division (Q)(6)(a) of this section be used only for the
direct and indirect costs of capital improvements, including the
financing of capital improvements, except that the agreement may
subsequently be amended by the parties that have entered into that
agreement to authorize such amounts to instead be used for any costs
related to the promotion or support of tourism or tourism-related
programs.

(b)
If the county in which the tax is levied has an association of mayors
and city managers, the approval of that association of an agreement
described in division (Q)(6)(a) of this section shall be considered
to be the approval of the majority of the mayors of the other
municipal corporations for purposes of that division.

(7)
Each year, the auditor of state shall conduct an audit of the uses of
any amounts collected from taxes levied, extended, or deposited under
division (Q) of this section and shall prepare a report of the
auditor of state's findings. The auditor of state shall submit the
report to the legislative authority of the county that has levied,
extended, or deposited the tax, the speaker of the house of
representatives, the president of the senate, and the leaders of the
minority parties of the house of representatives and the senate.

(R)(1)
As used in division (R) of this section:

(a)
"Convention facilities authority" has the same meaning as
in section 351.01 of the Revised Code.

(b)
"Convention center" has the same meaning as in section
307.695 of the Revised Code.

(2)
Notwithstanding any contrary provision of division (N) of this
section, the legislative authority of a county with a population of
one million two hundred thousand or more according to the most recent
federal decennial census or the most recent annual population
estimate published or released by the United States census bureau at
the time the resolution is adopted placing the levy on the ballot,
that has levied a tax under division (N) of this section may, by
resolution adopted by a majority of the members of the legislative
authority, provide for the extension of such levy and may provide
that the proceeds of that tax, to the extent that the proceeds are no
longer needed for their original purpose as defined by a cooperative
agreement entered into under section 307.671 of the Revised Code and
after deducting the real and actual costs of administering the tax,
shall be used for paying the direct and indirect costs of
constructing, improving, expanding, equipping, financing, or
operating a convention center. The resolution shall provide for the
extension of the tax at a rate not to exceed the rate specified in
division (N) of this section for a period of time determined by the
legislative authority of the county, but not to exceed an additional
forty years.

(3)
The legislative authority of a county with a population of one
million two hundred thousand or more that has levied a tax under
division (A) of this section may, by resolution adopted by a majority
of the members of the legislative authority, increase the rate of the
tax levied by such county under division (A) of this section to a
rate not to exceed five per cent on transactions by which lodging by
a hotel
or
short-term rental property
is
or is to be furnished to transient guests. Notwithstanding any
contrary provision of division (A) of this section, the resolution
shall provide that all collections resulting from the rate levied in
excess of three per cent, after deducting the real and actual costs
of administering the tax, shall be used for paying the direct and
indirect costs of constructing, improving, expanding, equipping,
financing, or operating a convention center.

(4)
The legislative authority of a county with a population of one
million two hundred thousand or more that has levied a tax under
division (A) of this section may, by resolution adopted on or before
July 1, 2008, by a majority of the members of the legislative
authority, provide that all or a portion of the proceeds of the tax
levied under division (A) of this section, after deducting the real
and actual costs of administering the tax and the amounts required to
be returned to townships and municipal corporations with respect to
the first three per cent levied under division (A) of this section,
shall be used to satisfy any pledges made in connection with an
agreement entered into under section 307.695 of the Revised Code or
shall otherwise be used for paying the direct and indirect costs of
constructing, improving, expanding, equipping, financing, or
operating a convention center.

(5)
Any amount collected from a tax levied or extended under division (R)
of this section may be contributed to a convention facilities
authority created before July 1, 2005, but no amount collected from a
tax levied or extended under division (R) of this section may be
contributed to a convention facilities authority, corporation, or
other entity created after July 1, 2005, unless the mayor of the
municipal corporation in which the convention center is to be
operated by that convention facilities authority, corporation, or
other entity has consented to the creation of that convention
facilities authority, corporation, or entity.

(S)
As used in division (S) of this section, "soldiers' memorial"
means a memorial constructed and funded under Chapter 345. of the
Revised Code.

The
board of county commissioners of a county with a population between
one hundred three thousand and one hundred seven thousand according
to the most recent federal decennial census, by resolution adopted by
a majority of the members of the board within six months after
September 15, 2014, may levy a tax not to exceed three per cent on
transactions by which a hotel

or short-term rental property

is or is to be furnished to transient guests. The purpose of the tax
shall be to pay the costs of expanding, maintaining, or operating a
soldiers' memorial and the costs of administering the tax. All
revenue arising from the tax shall be credited to one or more special
funds in the county treasury and shall be spent solely for the
purposes of paying those costs.

The
board of county commissioners shall adopt all rules necessary to
provide for the administration of the tax subject to the same
limitations on imposing penalty or interest under division (A) of
this section.

(T)
As used in division (T) of this section:

(1)
"Eligible county" means a county in which a county
agricultural society or independent agricultural society is organized
under section 1711.01 or 1711.02 of the Revised Code, provided the
agricultural society owns a facility or site in the county at which
an annual harness horse race is conducted where one-day attendance
equals at least forty thousand attendees.

(2)
"Permanent improvements," "debt charges," and
"financing costs" have the same meanings as in section
133.01 of the Revised Code.

(3)
"Costs of permanent improvements" include all costs allowed
in section 133.15 of the Revised Code.

A
board of county commissioners of an eligible county, by resolution
adopted by a majority of the members of the board, may levy an excise
tax at the rate of up to three per cent on transactions by which
lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests for the purpose of
paying the costs of permanent improvements at sites at which one or
more agricultural societies conduct fairs or exhibits, including
paying financing costs and debt charges on bonds, or notes in
anticipation of bonds, paying the costs of maintaining or operating
such permanent improvements, and paying the costs of administering
the tax.

A
resolution adopted under division (T) of this section, other than a
resolution that only extends the period of time for which the tax is
levied, shall direct the board of elections to submit the question of
the proposed lodging tax to the electors of the county at a special
election held on the date specified by the board in the resolution,
provided that the election occurs not less than ninety days after a
certified copy of the resolution is transmitted to the board of
elections. A resolution submitted to the electors under division (T)
of this section shall not go into effect unless it is approved by a
majority of those voting upon it. The resolution takes effect on the
date the board of county commissioners receives notification from the
board of elections of an affirmative vote.

The
tax shall remain in effect for the period specified in the
resolution, not to exceed five years, and may be extended for an
additional period of years that is at least the number of years
required for payment of the debt charges on bonds or notes in
anticipation of bonds authorized under this division but not in
excess of fifteen years thereafter by a resolution adopted by a
majority of the members of the board. A resolution extending the
period of time for which the tax is in effect is not subject to
approval of the electors of the county, but is subject to referendum
under sections 305.31 to 305.99 of the Revised Code. All revenue
arising from the tax shall be credited to one or more special funds
in the county treasury and shall be spent solely for the purposes of
paying the costs of such permanent improvements, including paying
financing costs and debt charges on bonds, or notes in anticipation
of bonds, and maintaining or operating the improvements. Revenue
allocated for the use of a county agricultural society may be
credited to the county agricultural society fund created in section
1711.16 of the Revised Code upon appropriation by the board. If
revenue is credited to that fund, it shall be expended only as
provided in that section.

The
board of county commissioners shall adopt all rules necessary to
provide for the administration of the tax. The rules may prescribe
the time for payment of the tax, and may provide for the imposition
or penalty or interest, or both, for late payments, provided that the
penalty does not exceed ten per cent of the amount of tax due, and
the rate at which interest accrues does not exceed the rate per annum
prescribed in section 5703.47 of the Revised Code.

The
board of county commissioners may issue bonds, or notes in
anticipation thereof, pursuant to Chapter 133. of the Revised Code,
for the purpose of paying the costs of permanent improvements as
authorized in this division and pledge the revenue arising from the
tax for that purpose. The board of county commissioners may pledge or
contribute the revenue arising from the tax levied under this
division to a port authority created under Chapter 4582. of the
Revised Code, and the port authority may issue bonds, or notes in
anticipation thereof, pursuant to that chapter, for the purpose of
paying the costs of permanent improvements as authorized in this
division.

(U)
As used in division (U) of this section, "eligible county"
means a county in which a tax is levied under division (A) of this
section at a rate of three per cent and whose territory includes a
part of Lake Erie the shoreline of which represents at least fifty
per cent of the linear length of the county's border with other
counties of this state.

The
board of county commissioners of an eligible county that has entered
into an agreement with a port authority in the county under section
4582.56 of the Revised Code may levy an additional lodging tax on
transactions by which lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests for the purpose of
financing lakeshore improvement projects constructed or financed by
the port authority under that section. The resolution levying the tax
shall specify the purpose of the tax, the rate of the tax, which
shall not exceed two per cent, and the number of years the tax will
be levied or that it will be levied for a continuing period of time.
The tax shall be administered pursuant to the regulations adopted by
the board under division (A) of this section, except that all the
proceeds of the tax levied under this division shall be pledged to
the payment of the costs, including debt charges, of lakeshore
improvements undertaken by a port authority pursuant to the agreement
under section 4582.56 of the Revised Code. No revenue from the tax
may be used to pay the current expenses of the port authority.

A
resolution levying a tax under division (U) of this section is
subject to referendum under sections 305.31 to 305.41 and 305.99 of
the Revised Code.

(V)(1)
As used in division (V) of this section:

(a)
"Tourism development district" means a district designated
by a municipal corporation under section 715.014 of the Revised Code
or by a township under section 503.56 of the Revised Code.

(b)
"Lodging tax" means a tax levied pursuant to this section
or section 5739.08 of the Revised Code.

(c)
"Tourism development district lodging tax proceeds" means
all proceeds of a lodging tax derived from transactions by which
lodging by a hotel

or short-term rental property

located in a tourism development district is or is to be provided to
transient guests.

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

(2)(a)
Notwithstanding division (A) of this section, the board of county
commissioners, board of township trustees, or legislative authority
of any county, township, or municipal corporation that levies a
lodging tax on September 29, 2017, and in which any part of a tourism
development district is located on or after that date shall amend the
ordinance or resolution levying the tax to require either of the
following:

(i)
In the case of a tax levied by a county, that all tourism development
district lodging tax proceeds from that tax be used exclusively to
foster and develop tourism in the tourism development district;

(ii)
In the case of a tax levied by a township or municipal corporation,
that all tourism development district lodging tax proceeds from that
tax be used exclusively to foster and develop tourism in the tourism
development district.

(b)
Notwithstanding division (A) of this section, any ordinance or
resolution levying a lodging tax adopted on or after September 29,
2017, by a county, township, or municipal corporation in which any
part of a tourism development district is located on or after that
date shall require that all tourism development district lodging tax
proceeds from that tax be used exclusively to foster and develop
tourism in the tourism development district.

(c)
A county shall not use any of the proceeds described in division
(V)(2)(a)(i) or (V)(2)(b) of this section unless the convention and
visitors' bureau operating within the county approves the manner in
which such proceeds are used to foster and develop tourism in the
tourism development district. Upon obtaining such approval, the
county may pay such proceeds to the bureau to use for the agreed-upon
purpose.

A
municipal corporation or township shall not use any of the proceeds
described in division (V)(2)(a)(ii) or (V)(2)(b) of this section
unless the convention and visitors' bureau operating within the
municipal corporation or township approves the manner in which such
proceeds are used to foster and develop tourism in the tourism
development district. Upon obtaining such approval, the municipal
corporation or township may pay such proceeds to the bureau to use
for the agreed-upon purpose.

(3)(a)
Notwithstanding division (A) of this section, the board of county
commissioners of an eligible county that levies a lodging tax on
March 23, 2018, may amend the resolution levying that tax to require
that all or a portion of the proceeds of that tax otherwise required
to be spent solely to make contributions to the convention and
visitors' bureau operating within the county shall be used to foster
and develop tourism in a tourism development district.

(b)
Notwithstanding division (A) of this section, the board of county
commissioners of an eligible county that adopts a resolution levying
a lodging tax on or after March 23, 2018, may require that all or a
portion of the proceeds of that tax otherwise required to be spent
solely to make contributions to the convention and visitors' bureau
operating within the county pursuant to division (A) of this section
shall be used to foster and develop tourism in a tourism development
district.

(c)
A county shall not use any of the proceeds in the manner described in
division (V)(3)(a) or (b) of this section unless the convention and
visitors' bureau operating within the county approves the manner in
which such proceeds are used to foster and develop tourism in the
tourism development district. Upon obtaining such approval, the
county may pay such proceeds to the bureau to use for the agreed upon
purpose.

(W)(1)
As used in division (W) of this section:

(a)
"Eligible county" means a county with a population greater
than three hundred thousand and less than three hundred fifty
thousand that levies a tax under division (A) of this section at a
rate of three per cent;

(b)
"Cost" and "facility" have the same meanings as
in section 351.01 of the Revised Code.

(2)
A board of county commissioners of an eligible county, by resolution
adopted by a majority of the members of the board, may levy an excise
tax at the rate of up to three per cent on transactions by which
lodging by a hotel

or short-term rental property

is or is to be furnished to transient guests. All of the revenue from
the tax shall be used to pay the costs of administering the tax or
pledged and contributed to a convention facilities authority
established by the board of county commissioners under Chapter 351.
of the Revised Code and used by the authority to pay the cost of
constructing a facility in the county, including paying bonds, or
notes issued in anticipation of bonds, as provided by that chapter,
or paying the expenses of maintaining, operating, or promoting such a
facility. No portion of the revenue arising from the tax need be
returned to municipal corporations or townships as required for taxes
levied under division (A) of this section.

(3)
A resolution adopted under division (W) of this section shall direct
the board of elections to submit the question of the proposed lodging
tax to the electors of the county at a special election held on the
date specified by the board in the resolution, provided that the
election occurs not less than ninety days after a certified copy of
the resolution is transmitted to the board of elections. A resolution
submitted to the electors under division (W) of this section shall
not go into effect unless it is approved by a majority of those
voting upon it. The resolution takes effect on the date the board of
county commissioners receives notification from the board of
elections of an affirmative vote.

(4)
Once the tax is approved by the electors of the county pursuant to
division (W)(3) of this section, it shall not be subject to
diminution by initiative or referendum or by law while any bonds, or
notes in anticipation of bonds, issued by the authority under Chapter
351. of the Revised Code to which the revenue is pledged, remain
outstanding in accordance with their terms, unless provision is made
by law or by the board of county commissioners for an adequate
substitute therefore that is satisfactory to the trustee if a trust
agreement secures the bonds.

(5)
The tax authorized by division (W) of this section shall be in
addition to any other tax that is levied pursuant to this section.

(X)(1)
As used in division (X) of this section:

(a)
"Convention facilities authority," "cost," and
"facility" have the same meanings as in section 351.01 of
the Revised Code, except that "facility" does not include a
"sports facility," as that term is defined in that section,
other than a facility intended to house a major league soccer team.

(b)
"Eligible county" means a county with a population greater
than eight hundred thousand but less than one million that levies a
tax under division (A) of this section.

(c)
"Port authority" means a port authority created under
Chapter 4582. of the Revised Code.

(2)
A board of county commissioners or the legislative authority of an
eligible county may, by resolution adopted by a majority of the
members of the board or legislative authority, levy an excise tax at
a rate not to exceed one per cent on transactions by which lodging by
a hotel

or short-term rental property

is or is to be furnished to transient guests. All revenue arising
from the tax shall be used to pay the costs of administering the tax
or pledged and contributed to the convention and visitors' bureau
operating within the applicable eligible county, a convention
facilities authority within the applicable eligible county, or a port
authority and used by the convention and visitors' bureau, the
convention facilities authority, or the port authority to pay the
cost of acquiring, constructing, renovating, expanding, maintaining,
or operating one or more facilities in the county, including paying
bonds, or notes issued in anticipation of bonds, or paying the
expenses of maintaining, operating, or promoting one or more
facilities. No portion of the revenue arising from the tax need be
returned to municipal corporations or townships as required for taxes
levied under division (A) of this section.

(3)
The tax authorized by division (X) of this section shall be in
addition to any other tax that is levied pursuant to this section.

(4)
Any board of county commissioners of an eligible county that,
pursuant to division (D)(2) of this section, has amended a resolution
levying the tax authorized by division (A) of this section may
further amend the resolution to provide that all or a portion of the
revenue referred to in division (D)(2)(b) of this section and
division (A) of this section may be pledged and contributed to pay
the costs of acquiring, constructing, renovating, expanding,
maintaining, or operating one or more facilities in the county,
including paying bonds, or notes issued in anticipation of bonds, or
paying the expenses of maintaining, operating, or promoting one or
more facilities.

Sec.
5739.091.
(A)

For
the purposes of a tax levied by a county, township, or municipal
corporation under section 5739.08 or 5739.09 of the Revised Code, a

As
used in this section:

(1)
"Legislative authority" means a
board
of county commissioners, board of township trustees,
or

the
legislative authority of a municipal corporation

may adopt a resolution or ordinance at any time specifying that
"hotel," as otherwise defined in section 5739.01 of the
Revised Code, includes the following:

(1)
Establishments in which fewer than five rooms are used for the
accommodation of guests;

(2)
Establishments at which rooms are used for the accommodation of
guests regardless of whether each room is accessible through its own
keyed entry or several rooms are accessible through the same keyed
entry; and, in determining the number of rooms, all rooms are
included regardless of the number of structures in which the rooms
are situated or the number of parcels of land on which the structures
are located if the structures are under the same ownership and the
structures are not identified in advertisements of the accommodations
as distinct establishments. For the purposes of division (A)(2) of
this section, two or more structures are under the same ownership if
they are owned by the same person, or if they are owned by two or
more persons the majority of the ownership interests of which are
owned by the same person.

(B)
The resolution or ordinance may apply to a tax imposed pursuant to
section 5739.08 or 5739.09 of the Revised Code prior to the adoption
of the resolution or ordinance if the resolution or ordinance so
states, but the tax shall not apply to transactions by which lodging
by such an establishment is provided to transient guests prior to the
adoption of the resolution or ordinance.
,
the board of directors of a convention facilities authority, or the
board of directors of a lake facilities authority.

(2)
"Existing lodging tax" means a tax levied under section
351.021, 353.06, 5739.08, or 5739.09 of the Revised Code and in
effect on the day before the first day of the first month beginning
thirty days after the effective date of this amendment.

(B)
A legislative authority shall not levy an existing lodging tax on or
after the first day of the first month beginning thirty days after
the effective date of this amendment unless the legislative authority
amends the resolution or ordinance levying the tax to comply with the
enactment of division (C) of this section and the amendment of
sections 351.01, 351.021, 353.06, 5739.08, and 5739.09 of the Revised
Code by this act. That amendment to such a resolution or ordinance is
not subject to a referendum, as prescribed by sections 305.31 to
305.41 of the Revised Code, and shall take effect without elector
approval, notwithstanding the terms and requirements applicable to
the adoption of the resolution or ordinance levying the existing
lodging tax.

(C)
A legislative authority shall require the operator of a short-term
rental platform to collect and remit the tax levied under section
351.021, 353.06, 5739.08, or 5739.09 of the Revised Code on all
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests through use of
the platform.

Sec.
5741.01.
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, business trusts, governments, and combinations of
individuals of any form.

(B)
"Storage" means and includes any keeping or retention in
this state for use or other consumption in this state.

(C)
"Use" means and includes the exercise of any right or power
incidental to the ownership of the thing used. A thing is also "used"
in this state if its consumer gives or otherwise distributes it,
without charge, to recipients in this state.

(D)
"Purchase" means acquired or received for a consideration,
whether such acquisition or receipt was effected by a transfer of
title, or of possession, or of both, or a license to use or consume;
whether such transfer was absolute or conditional, and by whatever
means the transfer was effected; and whether the consideration was
money, credit, barter, or exchange. Purchase includes production,
even though the article produced was used, stored, or consumed by the
producer. The transfer of copyrighted motion picture films for
exhibition purposes is not a purchase, except such films as are used
solely for advertising purposes.

(E)
"Seller" means the person from whom a purchase is made, and
includes every person engaged in this state or elsewhere in the
business of selling tangible personal property or providing a service
for storage, use, or other consumption or benefit in this state; and
when, in the opinion of the tax commissioner, it is necessary for the
efficient administration of this chapter, to regard any salesperson,
representative, peddler, or canvasser as the agent of a dealer,
distributor, supervisor, or employer under whom the person operates,
or from whom the person obtains tangible personal property, sold by
the person for storage, use, or other consumption in this state,
irrespective of whether or not the person is making such sales on the
person's own behalf, or on behalf of such dealer, distributor,
supervisor, or employer, the commissioner may regard the person as
such agent, and may regard such dealer, distributor, supervisor, or
employer as the seller.

Except
as provided in sections 5741.071 and 5747.072 of the Revised Code, a
marketplace facilitator shall be treated as the "seller"
with respect to all sales facilitated by the marketplace facilitator
on behalf of one or more marketplace sellers on and after the first
day of the first month that begins at least thirty days after the
marketplace facilitator first has substantial nexus with this state.
Otherwise, "seller" does not include any person to the
extent the person provides a communications medium, such as, but not
limited to, newspapers, magazines, radio, television, or cable
television, by means of which sellers solicit purchases of their
goods or services.

(F)
"Consumer" means any person who has purchased tangible
personal property or has been provided a service for storage, use, or
other consumption or benefit in this state. "Consumer" does
not include a person who receives, without charge, tangible personal
property or a service.

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 section
5739.01 of the Revised Code.

(G)(1)
"Price," except as provided in divisions (G)(2) to (6) of
this section, has the same meaning as in division (H)(1) of section
5739.01 of the Revised Code.

(2)
In the case of watercraft, outboard motors, or new motor vehicles,
"price" has the same meaning as in divisions (H)(2) and (3)
of section 5739.01 of the Revised Code.

(3)
In the case of a nonresident business consumer that purchases and
uses tangible personal property outside this state and subsequently
temporarily stores, uses, or otherwise consumes such tangible
personal property in the conduct of business in this state, the
consumer or the tax commissioner may determine the price based on the
value of the temporary storage, use, or other consumption, in lieu of
determining the price pursuant to division (G)(1) of this section. A
price determination made by the consumer is subject to review and
redetermination by the commissioner.

(4)
In the case of tangible personal property held in this state as
inventory for sale or lease, and that is temporarily stored, used, or
otherwise consumed in a taxable manner, the price is the value of the
temporary use. A price determination made by the consumer is subject
to review and redetermination by the commissioner.

(5)
In the case of tangible personal property originally purchased and
used by the consumer outside this state, and that becomes permanently
stored, used, or otherwise consumed in this state more than six
months after its acquisition by the consumer, the consumer or the
commissioner may determine the price based on the current value of
such tangible personal property, in lieu of determining the price
pursuant to division (G)(1) of this section. A price determination
made by the consumer is subject to review and redetermination by the
commissioner.

(6)
If a consumer produces tangible personal property for sale and
removes that property from inventory for the consumer's own use, the
price is the produced cost of that tangible personal property.

(H)
"Nexus with this state" means that the seller engages in
continuous and widespread solicitation of purchases from residents of
this state or otherwise purposefully directs its business activities
at residents of this state.

(I)(1)
"Substantial nexus with this state" means that the seller
has sufficient contact with this state, in accordance with Section 8
of Article I of the Constitution of the United States, to allow the
state to require the seller to collect and remit use tax on sales of
tangible personal property or services made to consumers in this
state.

(2)
"Substantial nexus with this state" is presumed to exist
when the seller does any of the following:

(a)
Uses an office, distribution facility, warehouse, storage facility,
or similar place of business within this state, whether operated by
the seller or any other person, other than a common carrier acting in
its capacity as a common carrier.

(b)
Regularly uses employees, agents, representatives, solicitors,
installers, repairers, salespersons, or other persons in this state
for the purpose of conducting the business of the seller or either to
engage in a business with the same or a similar industry
classification as the seller selling a similar product or line of
products as the seller, or to use trademarks, service marks, or trade
names in this state that are the same or substantially similar to
those used by the seller.

(c)
Uses any person, other than a common carrier acting in its capacity
as a common carrier, in this state for any of the following purposes:

(i)
Receiving or processing orders of the seller's goods or services;

(ii)
Using that person's employees or facilities in this state to
advertise, promote, or facilitate sales by the seller to customers;

(iii)
Delivering, installing, assembling, or performing maintenance
services for the seller's customers;

(iv)
Facilitating the seller's delivery of tangible personal property to
customers in this state by allowing the seller's customers to pick up
property sold by the seller at an office, distribution facility,
warehouse, storage facility, or similar place of business.

(d)
Makes regular deliveries of tangible personal property into this
state by means other than common carrier.

(e)
Has an affiliated person that has substantial nexus with this state.

(f)
Owns tangible personal property that is rented or leased to a
consumer in this state, or offers tangible personal property, on
approval, to consumers in this state.

(g)
Has gross receipts in excess of one hundred thousand dollars in the
current or preceding calendar year from the sale of tangible personal
property for storage, use, or consumption in this state or from
providing services the benefit of which is realized in this state.

(h)
Engages, in the current or preceding calendar year, in two hundred or
more separate transactions selling tangible personal property for
storage, use, or consumption in this state or providing services the
benefit of which is realized in this state.

(i)
Is a short-term rental platform that furnishes lodging in short-term
rental properties located in this state to transient guests.

(3)
A seller presumed to have substantial nexus with this state under
divisions (I)(2)(a) to (f), (g), and (h) of this section may rebut
that presumption by demonstrating that activities described in any of
those divisions that are conducted by a person in this state on the
seller's behalf are not significantly associated with the seller's
ability to establish or maintain a market in this state for the
seller's sales.

(4)
A marketplace facilitator is presumed to have substantial nexus with
this state if either of the following apply in the current or
preceding calendar year:

(a)
The aggregate gross receipts derived from sales of tangible personal
property for storage, use, or consumption in this state or services
the benefit of which is realized in this state, including sales made
by the marketplace facilitator on its own behalf and sales
facilitated by the marketplace facilitator on behalf of one or more
marketplace sellers, exceed one hundred thousand dollars;

(b)
The marketplace facilitator engages in on its own behalf, or
facilitates on behalf of one or more marketplace sellers, two hundred
or more separate transactions selling tangible personal property for
storage, use, or consumption in this state or services the benefit of
which is realized in this state.

(5)
A seller that does not have substantial nexus with this state, and
any affiliated person of the seller, before selling or leasing
tangible personal property or services to a state agency, shall
register with the tax commissioner in the same manner as a seller
described in division (A)(1) of section 5741.17 of the Revised Code.

(6)
As used in division (I) of this section:

(a)
"Affiliated person" means any person that is a member of
the same controlled group of corporations as the seller or any other
person that, notwithstanding the form of organization, bears the same
ownership relationship to the seller as a corporation that is a
member of the same controlled group of corporations.

(b)
"Controlled group of corporations" has the same meaning as
in section 1563(a) of the Internal Revenue Code.

(c)
"State agency" has the same meaning as in section 1.60 of
the Revised Code.

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

(K)
"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 which is a part of such transit authority.
County population shall be measured by the most recent census taken
by the United States census bureau.

(L)
"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 which includes territory in more than one county
must include all the area of the most populous county which is a part
of such transit authority. County population shall be measured by the
most recent census taken by the United States census bureau.

(M)
"Providing a service" has the same meaning as in section
5739.01 of the Revised Code.

(N)
"Other consumption" includes receiving the benefits of a
service.

(O)
"Lease" or "rental" has the same meaning as in
section 5739.01 of the Revised Code.

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

(Q)
"Marketplace facilitator" means a person that owns,
operates, or controls a physical or electronic marketplace through
which retail sales or delivery network services, or both, are
facilitated on behalf of one or more marketplace sellers, or an
affiliate of such a person. "Marketplace facilitator" does
not include a person that provides advertising services, including
tangible personal property or services listed for sale, if the
advertising service platform or forum does not engage directly or
indirectly through one or more affiliated persons in the activities
described in division (T)(2) of this section.

(R)
"Marketplace seller" means a person on behalf of which a
marketplace facilitator facilitates the sale of tangible personal
property for storage, use, or consumption in this state or services
the benefit of which are realized in this state, regardless of
whether or not the person has a substantial nexus with this state.

(S)
"Electronic marketplace" includes digital distribution
services, digital distribution platforms, online portals, application
stores, computer software applications, in-app purchase mechanisms,
or other digital products.

(T)
A sale is "facilitated" by a marketplace facilitator on
behalf of a marketplace seller if it satisfies divisions (T)(1), (2),
and (3) of this section:

(1)
The marketplace facilitator, directly or indirectly, does any of the
following:

(a)
Lists, makes available, or advertises the tangible personal property
or services that are the subject of the sale in a physical or
electronic marketplace owned, operated, or controlled by the
marketplace facilitator;

(b)
Transmits or otherwise communicates an offer or acceptance of the
sale between the marketplace seller and the purchaser in a shop,
store, booth, catalog, internet site, or other similar forum;

(c)
Owns, rents, licenses, makes available, or operates any electronic or
physical infrastructure or any property, process, method, copyright,
trademark, or patent that connects the marketplace seller to the
purchaser for the purpose of making sales;

(d)
Provides the marketplace in which the sale was made or otherwise
facilitates the sale regardless of ownership or control of the
tangible personal property or services that are the subject of the
sale;

(e)
Provides software development or research and development services
directly related to a physical or electronic marketplace that is
involved in one or more of the activities described in division
(T)(1) of this section;

(f)
Provides fulfillment or storage services for the marketplace seller
that are related to the tangible personal property or services that
are the subject of the sale;

(g)
Sets the price of the sale on behalf of the marketplace seller;

(h)
Provides or offers customer service to the marketplace seller or the
marketplace seller's customers, or accepts or assists with taking
orders, returns, or exchanges of the tangible personal property or
services that are the subject of the sale;

(i)
Brands or otherwise identifies the sale as a sale of the marketplace
facilitator.

(2)
The marketplace facilitator, directly or indirectly, does any of the
following:

(a)
Collects the price of the tangible personal property or services sold
to the consumer;

(b)
Provides payment processing services for the sale;

(c)
Collects payment in connection with the sale from the consumer
through terms and conditions, agreements, or arrangements with a
third party, and transmits that payment to the marketplace seller,
regardless of whether the person collecting and transmitting such
payment receives compensation or other consideration in exchange for
the service;

(d)
Provides virtual currency that consumers are allowed or required to
use to purchase the tangible personal property or services that are
the subject of the sale.

(3)
The subject of the sale is tangible personal property or services
other than lodging by a hotel that is or is to be furnished to
transient guests.

(U)
"Delivery network company," "delivery network
services," and "local merchant" have the same meanings
as in section 5739.01 of the Revised Code.

(V)
"Short-term rental platform," "short-term rental
property," and "transient guest" have the same
meanings as in section 5739.01 of the Revised Code.

Section
2.
That
existing
sections
351.01, 351.021, 353.06,
4735.11
,
5739.01, 5739.08, 5739.09, 5739.091, and 5741.01

of the Revised Code
are

hereby
repealed.

Section
3.
The
amendment or enactment by this act of division (C) of section
5739.091 and sections 351.01, 351.021, 353.06, 5739.08, and 5739.09
of the Revised Code applies on and after the first day of the first
month beginning thirty days after the effective date of this section.

The
amendment by this act of sections 5739.01 and 5741.01 of the Revised
Code applies on and after the first day of the first month beginning
thirty or more days after the effective date of this section.

Section
4.
Section
5739.01 of the Revised Code is presented in this act as a composite
of the section as amended by both H.B. 315 and S.B. 196 of the 135th
General Assembly. The General Assembly, applying the principle stated
in division (B) of section 1.52 of the Revised Code that amendments
are to be harmonized if reasonably capable of simultaneous operation,
finds that the composite is the resulting version of the section in
effect prior to the effective date of the section as presented in
this act.