Modify tax enforcement authority and sales tax exemption

As Introduced

136th
General Assembly

Regular
Session
S. B. No. 359

2025-2026

Senator Schaffer

To
amend sections
323.121,
323.132, 323.31,
718.08
,
718.27
,
718.88
,
718.89, 4503.06
,
5703.42, 5703.52, 5703.60, 5703.70, 5717.01, 5717.011, 5717.02
,
5721.011
,
5726.21, 5739.02, 5745.04, 5747.09,
5747.15,

5747.43
,
and 5751.06

and to enact sections 5703.59
,

5717.021
,
and 5739.125

of the Revised Code
to
modify the tax enforcement authority of the Department of Taxation,
municipal tax administrators, county treasurers, and the Board of Tax
Appeals and to modify a sales tax exemption for automated car wash
services.

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

Section
1.
That
sections
323.121,
323.132, 323.31,
718.08
,
718.27
,
718.88
,
718.89, 4503.06
,
5703.42, 5703.52, 5703.60, 5703.70, 5717.01, 5717.011, 5717.02
,
5721.011
,
5726.21, 5739.02, 5745.04, 5747.09,
5747.15,

5747.43
,
and 5751.06

be amended and sections 5703.59
,

5717.021
,
and 5739.125

of the Revised Code be enacted to read as follows:

Sec.
323.121.
(A)(1)
Except as otherwise provided in division (A)(2) of this section, if
one-half of the current taxes charged against an entry of real estate
together with the full amount of any delinquent taxes are not paid on
or before the thirty-first day of December in that year or on or
before the last day for payment as extended pursuant to section
323.17 of the Revised Code, a penalty of ten per cent shall be
charged against the unpaid balance of such half of the current taxes
on the duplicate. If the total amount of all the taxes is not paid on
or before the twentieth day of June, next thereafter, or on or before
the last day for payment as extended pursuant to section 323.17 of
the Revised Code, a like penalty shall be charged on the balance of
the total amount of such unpaid current taxes.

(2)
After a valid delinquent or omitted tax contract that includes unpaid
current taxes from a first-half collection period described in
section 323.12 of the Revised Code has been entered into under
section 323.31 or 5713.20 of the Revised Code, no ten per cent
penalty shall be charged against such taxes after the second-half
collection period while the delinquent or omitted tax contract
remains in effect. On the day a delinquent or omitted tax contract
becomes void, the ten per cent penalty shall be charged against such
taxes and shall equal the amount of penalty that would have been
charged against unpaid current taxes outstanding on the date on which
the second-half penalty would have been charged thereon under
division (A)(1) of this section if the contract had not been in
effect.

(B)(1)
On the first day of the month following the last day the second
installment of taxes may be paid without penalty, interest shall be
charged against and computed on all delinquent taxes other than the
current taxes that became delinquent taxes at the close of the last
day such second installment could be paid without penalty. The charge
shall be for interest that accrued during the period that began on
the preceding first day of December and ended on the last day of the
month that included the last date such second installment could be
paid without penalty. The interest shall be computed at the rate per
annum prescribed by section 5703.47 of the Revised Code and shall be
entered as a separate item on the tax list and duplicate compiled
under section 319.28 or 5721.011 of the Revised Code, whichever list
and duplicate are first compiled after the date on which the interest
is computed and charged. However, for tracts and lots on the real
property tax suspension list under section 319.48 of the Revised
Code, the interest shall not be entered on the tax list and duplicate
compiled under section 319.28 of the Revised Code, but shall be
entered on the first tax list and duplicate compiled under section
5721.011 of the Revised Code after the date on which the interest is
computed and charged.

(2)
In a county on behalf of which a county land reutilization
corporation has been organized under Chapter 1724. of the Revised
Code, upon the written order of the county treasurer, interest shall
be charged against and computed on delinquent taxes as provided in
division (B)(2)(a) or (b) of this section, as prescribed in the
order:

(a)
In the manner provided under divisions (B)(1) and (B)(3) of this
section, except that the interest shall be computed at the rate of
twelve per cent per annum; or

(b)
On the first day of the month following the month in which interest
otherwise would be charged in accordance with division (B)(1) of this
section as specified in the order, and each subsequent month,
interest shall be charged against and computed on all delinquent
taxes remaining delinquent on the last day of the preceding month at
a rate of one per cent per month.

The
county treasurer shall file a copy of the order directing the rate
and manner of charging interest under this division with the county
treasurer and the tax commissioner. If interest is charged under
division (B)(2) of this section, interest shall not be charged under
division (B)(1) or (3) of this section.

(3)
On the first day of December, the interest shall be charged against
and computed on all delinquent taxes

other than the current taxes that became delinquent taxes at the
close of the last day the second installment could be paid without
penalty
.
The charge shall be for interest that accrued during the period that
began on the first day of the month following the last date
prescribed for the payment of the second installment of taxes in the
current year and ended on the immediately preceding last day of
November. The interest shall be computed at the rate per annum
prescribed by section 5703.47 of the Revised Code and shall be
entered as a separate item on the tax list and duplicate compiled
under section 319.28 or 5721.011 of the Revised Code, whichever list
and duplicate are first compiled after the date on which the interest
is computed and charged. However, for tracts and lots on the real
property tax suspension list under section 319.48 of the Revised
Code, the interest shall not be entered on the tax list and duplicate
compiled under section 319.28 of the Revised Code, but shall be
entered on the first tax list and duplicate compiled under section
5721.011 of the Revised Code after the date on which the interest is
computed and charged.

(4)
After a valid delinquent tax contract has been entered into for the
payment of any delinquent taxes, no interest shall be charged against
such delinquent taxes while the delinquent tax contract remains in
effect in compliance with section 323.31 of the Revised Code. If a
valid delinquent tax contract becomes void, interest shall be charged
against the delinquent taxes for the periods that interest was not
permitted to be charged while the delinquent tax contract was in
effect. The interest shall be charged on the day the delinquent tax
contract becomes void and shall equal the amount of interest that
would have been charged against the unpaid delinquent taxes
outstanding on the dates on which interest would have been charged
thereon under divisions (B)(1), (2), and (3) of this section had the
delinquent tax contract not been in effect.

(C)
If the full amount of the taxes due at either of the times prescribed
by division (A) of this section is paid within ten days after such
time, the county treasurer shall waive the collection of and the
county auditor shall remit one-half of the penalty provided for in
that division for failure to make that payment by the prescribed
time.

(D)
The county treasurer shall compile and deliver to the county auditor
a list of all tax payments the treasurer has received as provided in
division (C) of this section. The list shall include any information
required by the auditor for the remission of the penalties waived by
the treasurer. The taxes so collected shall be included in the
settlement next succeeding the settlement then in process.

Sec.
323.132.
If
one-half of the current taxes charged against an entry of real estate
is not paid on or before the thirty-first day of December of the year
for which they are charged or on or before the last day for such
payment as extended pursuant to section 323.17 of the Revised Code,
that amount, together with the penalty charged under division (A)(1)
of section 323.121 of the Revised Code and all delinquent taxes or
installment thereof charged against such entry may be paid at any
time prior to the date on which tax bills for the second half
collection are mailed and delivered, without at the same time
requiring payment of the second half of such taxes.

If
the total amount of such current taxes, delinquent taxes, and all
installment payments due under section 323.31 of the Revised Code are
not paid on or before the twentieth day of June, next thereafter, or
on or before the last day for that payment as extended pursuant to
section 323.17 of the Revised Code, the balance of the amount of such
taxes, plus all penalties and interest imposed by section 323.121 of
the Revised Code, constitutes the delinquent taxes on such entry
,
which shall be placed on
.
If any such amounts remain unpaid at the time
the
delinquent land list and duplicate
is
compiled
pursuant
to section 5721.011 of the Revised Code
,
the unpaid amounts shall be placed on such list and duplicate

and shall be collected in the manner prescribed by law, unless the
property against which such taxes are charged is the subject of an
application for exemption from taxation pursuant to section 5715.27
of the Revised Code.

A
taxpayer may tender, and the treasurer shall accept, the full amount
of delinquent taxes charged against an entry of real estate without
having to tender at the same time the payment of any current taxes
that are due and payable.

A
county treasurer may accept partial payments of taxes. Any
overpayment shall be refunded by the treasurer in the manner most
convenient to the treasurer. When the amount tendered and accepted is
less than the amount due, the unpaid balance shall be treated as
other unpaid taxes, and, except when the unpaid amount is the penalty
or interest and charges on the unpaid taxes, the treasurer shall
notify the taxpayer of such deficiency.

If
the taxpayer files with the payment of taxes a copy of an application
to the tax commissioner for remission of penalty, or the payment is
received within ten days after the last day the taxes may be paid
without penalty, the county treasurer shall accept a partial payment
in which the only unpaid amount is the penalty for late payment.

If,
at any time, and having been provided such documentation as may be
found acceptable by the county treasurer, the county treasurer
determines that due to a clerical error, a taxpayer has overpaid
either the first one-half or second one-half payment of current taxes
as charged on the tax list and duplicate, the treasurer may refund
the amount of the overpayment to the taxpayer in the manner most
convenient to the treasurer.

Sec.
323.31.
(A)(1)

A
person who owns agricultural real property or owns and occupies
residential
An
owner of
real
property or

of

a manufactured or mobile home that does not have an outstanding tax
lien certificate or judgment of foreclosure against it, and a person
who is a vendee of such property under a purchase agreement or land
contract and who occupies the property, shall have at least one
opportunity to pay any delinquent or unpaid current taxes, or both,
charged against the property by entering into a written delinquent
tax contract with the county treasurer in a form prescribed or
approved by the tax commissioner. Subsequent opportunities to enter
into a delinquent tax contract shall be at the county treasurer's
sole discretion.

(2)

The
treasurer may enter into a delinquent tax contract in accordance with
division (A) of this section with an owner or vendee of real
property, other than residential real property or a manufactured or
mobile home that is occupied by the owner, and other than
agricultural real property.

(3)

The
delinquent tax contract described in division (A) of this section may
be entered into at any time prior to an adjudication of foreclosure
pursuant to proceedings by the county treasurer and the county
prosecuting attorney pursuant to section 323.25 or 323.65 to 323.79
of the Revised Code or by the county prosecuting attorney pursuant to
section 5721.18 of the Revised Code, the adjudication of foreclosure
pursuant to proceedings by a private attorney pursuant to section
5721.37 of the Revised Code, the commencement of foreclosure and
forfeiture proceedings pursuant to section 5721.14 of the Revised
Code, or the commencement of collection proceedings pursuant to
division (H) of section 4503.06 of the Revised Code by the filing of
a civil action as provided in that division. A duplicate copy of each
delinquent tax contract shall be filed with the county auditor, who
shall attach the copy to the delinquent land tax certificate,
delinquent vacant land tax certificate, or the delinquent
manufactured home tax list, or who shall enter an asterisk in the
margin next to the entry for the tract or lot on the master list of
delinquent tracts, master list of delinquent vacant tracts, or next
to the entry for the home on the delinquent manufactured home tax
list, prior to filing it with the prosecuting attorney under section
5721.13 of the Revised Code, or, in the case of the delinquent
manufactured home tax list, prior to delivering it to the county
treasurer under division (H)(2) of section 4503.06 of the Revised
Code. If the delinquent tax contract is entered into after the
certificate or the master list has been filed with the prosecuting
attorney, the treasurer shall file the duplicate copy with the
prosecuting attorney.

(4)
(3)

A delinquent tax contract entered into under division (A) of this
section shall provide for the payment of any delinquent or unpaid
current taxes, or both, in installments over a period, beginning on
the date of the first payment made under the contract, not to exceed
one of the following:

(a)
Five years for a person entering into a contract on the basis of
residential real property the person owns and occupies, except the
period shall be not less than two years if the person so requests;

(b)
Ten years for a person entering into a contract on the basis of a
qualifying athletic complex, as defined in section 5709.57 of the
Revised Code;

(c)
Five years for a person entering into a contract on the basis of
property other than that described in division
(A)
(4)(a)
(A)(3)(a)

or (b) of this section.

(5)
(4)

For each delinquent tax contract entered into under division (A) of
this section, the county treasurer shall determine and shall specify
in the delinquent tax contract the number of installments, the amount
of each installment, and the schedule for payment of the
installments. Except as otherwise provided for taxes, penalties, and
interest under division (B) of section 319.43 of the Revised Code,
the part of each installment payment representing taxes and penalties
and interest thereon shall be apportioned among the several taxing
districts in the same proportion that the amount of taxes levied by
each district against the entry in the preceding tax year bears to
the taxes levied by all such districts against the entry in the
preceding tax year. The part of each payment representing assessments
and other charges shall be credited to those items in the order in
which they became due. Each payment made to a taxing district shall
be apportioned among the taxing district's several funds for which
taxes or assessments have been levied.

(6)
(5)

When an installment payment is not received by the treasurer when due
under a delinquent tax contract entered into under division (A) of
this section or any current taxes or special assessments charged
against the property become unpaid, the delinquent tax contract
becomes void unless the treasurer permits a new delinquent tax
contract to be entered into; if the treasurer does not permit a new
delinquent tax contract to be entered into, the treasurer shall
certify to the auditor that the delinquent tax contract has become
void.

(7)
(6)

Upon receipt of certification described in division
(A)(6)
(A)(5)

of this section, the auditor shall destroy the duplicate copy of the
voided delinquent tax contract. If such copy has been filed with the
prosecuting attorney, the auditor immediately shall deliver the
certification to the prosecuting attorney, who shall attach it to the
appropriate certificate and the duplicate copy of the voided
delinquent tax contract or strike through the asterisk entered in the
margin of the master list next to the entry for the tract or lot that
is the subject of the voided delinquent tax contract. The prosecuting
attorney then shall institute a proceeding to foreclose the lien of
the state in accordance with section 323.25, sections 323.65 to
323.79, or section 5721.18 of the Revised Code or, in the case of
delinquent vacant land, a foreclosure proceeding in accordance with
section 323.25, sections 323.65 to 323.79, or section 5721.18 of the
Revised Code, or a foreclosure and forfeiture proceeding in
accordance with section 5721.14 of the Revised Code. In the case of a
manufactured or mobile home, the county treasurer shall cause a civil
action to be brought as provided under division (H) of section
4503.06 of the Revised Code.

(B)
If there is an outstanding tax certificate respecting a delinquent
parcel under section 5721.32 or 5721.33 of the Revised Code, a
written delinquent tax contract may not be entered into under this
section. To redeem a tax certificate in installments, the owner or
other person seeking to redeem the tax certificate shall enter into a
redemption payment plan under division (C) of section 5721.38 of the
Revised Code.

(C)
As used in this section, "unpaid current taxes" means any
current taxes charged on the general tax list and duplicate of real
and public utility property or the manufactured home tax list and
duplicate that remain unpaid after the last day prescribed for
payment of the first installment of such taxes without penalty, and
any penalties associated with such taxes.

Sec.
718.08.
(A)
As used in this section:

(1)
"Estimated taxes" means the amount that the taxpayer
reasonably estimates to be the taxpayer's tax liability for a
municipal corporation's income tax for the current taxable year.

(2)
"Tax liability" means the total taxes due to a municipal
corporation for the taxable year, after allowing any credit to which
the taxpayer is entitled, and after applying any estimated tax
payment, withholding payment, or credit from another taxable year.

(B)(1)
Except as provided in division (F) of this section, every taxpayer
shall make a declaration of estimated taxes for the current taxable
year, on the form prescribed by the tax administrator, if the amount
payable as estimated taxes is at least two hundred dollars. For the
purposes of this section:

(a)
Taxes withheld from qualifying wages shall be considered as paid to
the municipal corporation for which the taxes were withheld in equal
amounts on each payment date unless the taxpayer establishes the
dates on which all amounts were actually withheld, in which case the
amounts withheld shall be considered as paid on the dates on which
the amounts were actually withheld.

(b)
An overpayment of tax applied as a credit to a subsequent taxable
year is deemed to be paid on the date of the postmark stamped on the
cover in which the payment is mailed or, if the payment is made by
electronic funds transfer, the date the payment is submitted. As used
in this division, "date of the postmark" means, in the
event there is more than one date on the cover, the earliest date
imprinted on the cover by the postal service.

(c)
Taxes withheld by a casino operator, video lottery sales agent, or
type B sports gaming proprietor under section 718.031 of the Revised
Code are deemed to be paid to the municipal corporation for which the
taxes were withheld on the date the taxes are withheld from the
taxpayer's winnings.

(2)
Except as provided in division (F) of this section, taxpayers filing
joint returns shall file joint declarations of estimated taxes. A
taxpayer may amend a declaration under rules prescribed by the tax
administrator. Except as provided in division (F) of this section, a
taxpayer having a taxable year of less than twelve months shall make
a declaration under rules prescribed by the tax administrator.

(3)
The declaration of estimated taxes shall be filed on or before the
date prescribed for the filing of municipal income tax returns under
division (G) of section 718.05 of the Revised Code or on or before
the fifteenth day of the fourth month after the taxpayer becomes
subject to tax for the first time.

(4)
Taxpayers reporting on a fiscal year basis shall file a declaration
on or before the fifteenth day of the fourth month after the
beginning of each fiscal year or period.

(5)
The original declaration or any subsequent amendment may be increased
or decreased on or before any subsequent quarterly payment day as
provided in this section.

(C)(1)
The required portion of the tax liability for the taxable year that
shall be paid through estimated taxes made payable to the municipal
corporation or tax administrator, including the application of tax
refunds to estimated taxes and withholding on or before the
applicable payment date, shall be as follows:

(a)
On or before the fifteenth day of the fourth month after the
beginning of the taxable year, twenty-two and one-half per cent of
the tax liability for the taxable year;

(b)
On or before the fifteenth day of the sixth month after the beginning
of the taxable year, forty-five per cent of the tax liability for the
taxable year;

(c)
On or before the fifteenth day of the ninth month after the beginning
of the taxable year, sixty-seven and one-half per cent of the tax
liability for the taxable year;

(d)
For an individual, on or before the fifteenth day of the first month
of the following taxable year, ninety per cent of the tax liability
for the taxable year. For a person other than an individual, on or
before the fifteenth day of the twelfth month of the taxable year,
ninety per cent of the tax liability for the taxable year.

(2)
When an amended declaration has been filed, the unpaid balance shown
due on the amended declaration shall be paid in equal installments on
or before the remaining payment dates.

(3)
On or before the fifteenth day of the fourth month of the year
following that for which the declaration or amended declaration was
filed, an annual return shall be filed and any balance which may be
due shall be paid with the return in accordance with section 718.05
of the Revised Code.

(D)(1)
In the case of any underpayment of any portion of a tax liability,
penalty and interest may be imposed pursuant to section 718.27 of the
Revised Code upon the amount of underpayment for the period of
underpayment, unless the underpayment is due to reasonable cause as
described in division (E) of this section. The amount of the
underpayment shall be determined as follows:

(a)
For the first payment of estimated taxes each year, twenty-two and
one-half per cent of the tax liability, less the amount of taxes paid
by the date prescribed for that payment;

(b)
For the second payment of estimated taxes each year, forty-five per
cent of the tax liability, less the amount of taxes paid by the date
prescribed for that payment;

(c)
For the third payment of estimated taxes each year, sixty-seven and
one-half per cent of the tax liability, less the amount of taxes paid
by the date prescribed for that payment;

(d)
For the fourth payment of estimated taxes each year, ninety per cent
of the tax liability, less the amount of taxes paid by the date
prescribed for that payment.

(2)
The period of the underpayment shall run from the day the estimated
payment was required to be made to the date on which the payment is
made. For purposes of this section, a payment of estimated taxes on
or before any payment date shall be considered a payment of any
previous underpayment only to the extent the payment of estimated
taxes exceeds the amount of the payment presently required to be paid
to avoid any penalty.

(E)
An underpayment of any portion of tax liability determined under
division (D) of this section shall be due to reasonable cause and the
penalty imposed by this section shall not be added to the taxes for
the taxable year if any of the following apply:

(1)
The amount of estimated taxes that were paid equals at least ninety
per cent of the tax liability for the current taxable year,
determined by annualizing the income received during the year up to
the end of the month immediately preceding the month in which the
payment is due.

(2)
The amount of estimated taxes that were paid equals at least one
hundred per cent of the tax liability shown on the return of the
taxpayer for the preceding taxable year, provided that the
immediately preceding taxable year reflected a period of twelve
months and the taxpayer filed a return with the municipal corporation
under section 718.05 of the Revised Code for that year.

(3)
The taxpayer is an individual who resides in the municipal
corporation but was not domiciled there on the first day of January
of the calendar year that includes the first day of the taxable year.

(4)
The taxpayer has not underpaid estimated taxes in any preceding
taxable year.

(F)(1)
A tax administrator may waive the requirement for filing a
declaration of estimated taxes for any class of taxpayers after
finding that the waiver is reasonable and proper in view of
administrative costs and other factors.

(2)
A municipal corporation may, by ordinance or rule, waive the
requirement for filing a declaration of estimated taxes for all
taxpayers.

Sec.
718.27.
(A)
As used in this section:

(1)
"Applicable law" means this chapter, the resolutions,
ordinances, codes, directives, instructions, and rules adopted by a
municipal corporation provided such resolutions, ordinances, codes,
directives, instructions, and rules impose or directly or indirectly
address the levy, payment, remittance, or filing requirements of a
municipal income tax.

(2)
"Income tax," "estimated income tax," and
"withholding tax" means any income tax, estimated income
tax, and withholding tax imposed by a municipal corporation pursuant
to applicable law, including at any time before January 1, 2016.

(3)
A "return" includes any tax return, report, reconciliation,
schedule, and other document required to be filed with a tax
administrator or municipal corporation by a taxpayer, employer, any
agent of the employer, or any other payer pursuant to applicable law,
including at any time before January 1, 2016.

(4)
"Federal short-term rate" means the rate of the average
market yield on outstanding marketable obligations of the United
States with remaining periods to maturity of three years or less, as
determined under section 1274 of the Internal Revenue Code, for July
of the current year.

(5)
"Interest rate as described in division (A) of this section"
means the federal short-term rate, rounded to the nearest whole
number per cent, plus five per cent. The rate shall apply for the
calendar year next following the July of the year in which the
federal short-term rate is determined in accordance with division
(A)(4) of this section.

(6)
"Unpaid estimated income tax" means estimated income tax
due but not paid by the date the tax is required to be paid under
applicable law.

(7)
"Unpaid income tax" means income tax due but not paid by
the date the income tax is required to be paid under applicable law.

(8)
"Unpaid withholding tax" means withholding tax due but not
paid by the date the withholding tax is required to be paid under
applicable law.

(9)
"Withholding tax" includes amounts an employer, any agent
of an employer, or any other payer did not withhold in whole or in
part from an employee's qualifying wages, but that, under applicable
law, the employer, agent, or other payer is required to withhold from
an employee's qualifying wages.

(B)(1)
This section applies to the following:

(a)
Any return required to be filed under applicable law for taxable
years beginning on or after January 1, 2016;

(b)
Income tax, estimated income tax, and withholding tax required to be
paid or remitted to the municipal corporation on or after January 1,
2016.

(2)
This section does not apply to returns required to be filed or
payments required to be made before January 1, 2016, regardless of
the filing or payment date. Returns required to be filed or payments
required to be made before January 1, 2016, but filed or paid after
that date shall be subject to the ordinances or rules, as adopted
before January 1, 2016, of the municipal corporation to which the
return is to be filed or the payment is to be made.

(C)
Each municipal corporation levying a tax on income may impose on a
taxpayer, employer, any agent of the employer, and any other payer,
and must attempt to collect, the interest amounts and penalties
prescribed under division (C) of this section when the taxpayer,
employer, any agent of the employer, or any other payer for any
reason fails, in whole or in part, to make to the municipal
corporation timely and full payment or remittance of income tax,
estimated income tax, or withholding tax or to file timely with the
municipal corporation any return required to be filed.

(1)
Interest shall be imposed at the rate described in division (A) of
this section, per annum, on all unpaid income tax, unpaid estimated
income tax, and unpaid withholding tax.

(2)(a)
With respect to unpaid income tax and unpaid estimated income tax, a
municipal corporation may impose a penalty equal to fifteen per cent
of the amount not timely paid.

(b)
With respect to any unpaid withholding tax, a municipal corporation
may impose a penalty not exceeding fifty per cent of the amount not
timely paid.

(3)
With respect to returns other than estimated income tax returns, a
municipal corporation may impose a penalty not exceeding twenty-five
dollars for each failure to timely file each return, regardless of
the liability shown thereon, except that a municipal corporation
shall abate or refund the penalty assessed on a taxpayer's first
failure to timely file a return after the taxpayer files that return.

(D)(1)
With respect to the income taxes, estimated income taxes, withholding
taxes, and returns, no municipal corporation shall impose, seek to
collect, or collect any penalty, amount of interest, charges, or
additional fees not described in this section.

(2)
With respect to the income taxes, estimated income taxes, withholding
taxes, and returns not described in division (A) of this section,
nothing in this section requires a municipal corporation to refund or
credit any penalty, amount of interest, charges, or additional fees
that the municipal corporation has properly imposed or collected
before January 1, 2016.

(E)
Nothing in this section limits the authority of a municipal
corporation to abate or partially abate penalties or interest imposed
under this section when the tax administrator determines, in the tax
administrator's sole discretion, that such abatement is appropriate.

(F)
By the thirty-first day of October of each year the municipal
corporation shall publish the rate described in division (A) of this
section applicable to the next succeeding calendar year.

(G)
The municipal corporation may impose on the taxpayer, employer, any
agent of the employer, or any other payer the municipal corporation's
post-judgment collection costs and fees, including attorney's fees.

(H)
Notwithstanding any other provision of this section or chapter, the
municipal corporation shall not impose any penalty or interest under
this chapter for the failure to file a return or report if no amount
of tax is due with the return or report.

Sec.
718.88.
(A)
As used in this section:

(1)
"Combined tax liability" means the total amount of a
taxpayer's income tax liabilities to all municipal corporations in
this state for a taxable year.

(2)
"Estimated taxes" means the amount that the taxpayer
reasonably estimates to be the taxpayer's combined tax liability for
the current taxable year.

(B)(1)
Except as provided in division (B)(4) of this section, every taxpayer
shall make a declaration of estimated taxes for the current taxable
year, on the form prescribed by the tax commissioner, if the amount
payable as estimated taxes is at least two hundred dollars.

(2)
Except as provided in division (B)(4) of this section, a taxpayer
having a taxable year of less than twelve months shall make a
declaration under rules prescribed by the commissioner.

(3)
The declaration of estimated taxes shall be filed on or before the
fifteenth day of the fourth month after the beginning of the taxable
year or on or before the fifteenth day of the fourth month after the
taxpayer becomes subject to tax for the first time.

(4)
The tax commissioner may waive the requirement for filing a
declaration of estimated taxes for any class of taxpayers after
finding that the waiver is reasonable and proper in view of
administrative costs and other factors.

(C)
Each taxpayer shall file the declaration of estimated taxes with, and
remit estimated taxes to, the tax commissioner at the times and in
the amounts prescribed in division (C)(1) of this section. Remitted
taxes shall be made payable to the treasurer of state.

(1)
The required portion of the combined tax liability for the taxable
year that shall be paid through estimated taxes shall be as follows:

(a)
On or before the fifteenth day of the fourth month after the
beginning of the taxable year, twenty-two and one-half per cent of
the combined tax liability for the taxable year;

(b)
On or before the fifteenth day of the sixth month after the beginning
of the taxable year, forty-five per cent of the combined tax
liability for the taxable year;

(c)
On or before the fifteenth day of the ninth month after the beginning
of the taxable year, sixty-seven and one-half per cent of the
combined tax liability for the taxable year;

(d)
On or before the fifteenth day of the twelfth month of the taxable
year, ninety per cent of the combined tax liability for the taxable
year.

(2)
If the taxpayer determines that its declaration of estimated taxes
will not accurately reflect the taxpayer's tax liability for the
taxable year, the taxpayer shall increase or decrease, as
appropriate, its subsequent payments in equal installments to result
in a more accurate payment of estimated taxes.

(3)(a)
Each taxpayer shall report on the declaration of estimated taxes the
portion of the remittance that the taxpayer estimates that it owes to
each municipal corporation for the taxable year.

(b)
Upon receiving a payment of estimated taxes under this section, the
commissioner shall immediately forward the payment to the treasurer
of state. The treasurer shall credit the payment in the same manner
as in division (B) of section 718.85 of the Revised Code.

(D)(1)
In the case of any underpayment of estimated taxes, the tax
commissioner may add to the taxes an amount determined at the rate
per annum prescribed by section 5703.47 of the Revised Code upon the
amount of underpayment for the period of underpayment, unless the
underpayment is due to reasonable cause as described in division (E)
of this section. The amount of the underpayment shall be determined
as follows:

(a)
For the first payment of estimated taxes each year, twenty-two and
one-half per cent of the combined tax liability, less the amount of
taxes paid by the date prescribed for that payment;

(b)
For the second payment of estimated taxes each year, forty-five per
cent of the combined tax liability, less the amount of taxes paid by
the date prescribed for that payment;

(c)
For the third payment of estimated taxes each year, sixty-seven and
one-half per cent of the combined tax liability, less the amount of
taxes paid by the date prescribed for that payment;

(d)
For the fourth payment of estimated taxes each year, ninety per cent
of the combined tax liability, less the amount of taxes paid by the
date prescribed for that payment.

(2)
The period of the underpayment shall run from the day the estimated
payment was required to be made to the date on which the payment is
made. For purposes of this section, a payment of estimated taxes on
or before any payment date shall be considered a payment of any
previous underpayment only to the extent the payment of estimated
taxes exceeds the amount of the payment presently due.

(3)
All amounts collected under this section shall be considered as taxes
collected under sections 718.80 to 718.95 of the Revised Code and
shall be credited and distributed to municipal corporations in
accordance with section 718.83 of the Revised Code.

(E)
An underpayment of any portion of a combined tax liability shall be
due to reasonable cause and the penalty imposed by this section shall
not be added to the taxes for the taxable year if any of the
following apply:

(1)
The amount of estimated taxes that were paid equals at least ninety
per cent of the combined tax liability for the current taxable year,
determined by annualizing the income received during the year up to
the end of the month immediately preceding the month in which the
payment is due.

(2)
The amount of estimated taxes that were paid equals at least one
hundred per cent of the tax liability shown on the return of the
taxpayer for the preceding taxable year, provided that the
immediately preceding taxable year reflected a period of twelve
months and the taxpayer filed a municipal income tax return for that
year.

(3)
The taxpayer has not underpaid estimated taxes in any preceding
taxable year.

Sec.
718.89.
(A)
In addition to any other penalty imposed by sections 718.80 to 718.95
or Chapter 5703. of the Revised Code, the following penalties shall
apply:

(1)
If a taxpayer required to file a tax return under sections 718.80 to
718.95 of the Revised Code fails to make and file the return within
the time prescribed, including any extensions of time granted by the
tax commissioner, the commissioner may impose a penalty not exceeding
twenty-five dollars, except that the commissioner shall abate or
refund the penalty assessed on a taxpayer's first failure to timely
file a return after the taxpayer files that return.

(2)
If a person required to file a tax return electronically under
sections 718.80 to 718.95 of the Revised Code fails to do so, the
commissioner may impose a penalty not to exceed the following:

(a)
For each of the first two failures, five per cent of the amount
required to be reported on the return;

(b)
For the third and any subsequent failure, ten per cent of the amount
required to be reported on the return.

(3)
If a taxpayer that has made the election allowed under section 718.80
of the Revised Code fails to timely pay an amount of tax required to
be paid under this chapter, the commissioner may impose a penalty
equal to fifteen per cent of the amount not timely paid.

(4)
If a taxpayer files what purports to be a tax return required by
sections 718.80 to 718.95 of the Revised Code that does not contain
information upon which the substantial correctness of the return may
be judged or contains information that on its face indicates that the
return is substantially incorrect, and the filing of the return in
that manner is due to a position that is frivolous or a desire that
is apparent from the return to delay or impede the administration of
sections 718.80 to 718.95 of the Revised Code, a penalty of up to
five hundred dollars may be imposed.

(5)
If a taxpayer makes a fraudulent attempt to evade the reporting or
payment of the tax required to be shown on any return required under
sections 718.80 to 718.95 of the Revised Code, a penalty may be
imposed not exceeding the greater of one thousand dollars or one
hundred per cent of the tax required to be shown on the return.

(6)
If any person makes a false or fraudulent claim for a refund under
section 718.91 of the Revised Code, a penalty may be imposed not
exceeding the greater of one thousand dollars or one hundred per cent
of the claim. Any penalty imposed under this division, any refund
issued on the claim, and interest on any refund from the date of the
refund, may be assessed under section 718.90 of the Revised Code
without regard to any time limitation for the assessment imposed by
division (A) of that section.

(B)
For purposes of this section, the tax required to be shown on a tax
return shall be reduced by the amount of any part of the tax paid on
or before the date, including any extensions of the date, prescribed
for filing the return.

(C)
Each penalty imposed under this section shall be in addition to any
other penalty imposed under this section. All or part of any penalty
imposed under this section may be abated by the tax commissioner. The
commissioner may adopt rules governing the imposition and abatement
of such penalties.

(D)
All amounts collected under this section shall be considered as taxes
collected under sections 718.80 to 718.95 of the Revised Code and
shall be credited and distributed to municipal corporations in the
same proportion as the underlying tax liability is required to be
distributed to such municipal corporations under section 718.83 of
the Revised Code.

(E)
Notwithstanding any other provision of sections 718.80 to 718.95 of
the Revised Code, the tax commissioner shall not impose any penalty
or interest under those sections for the failure to file a return or
report if no amount of tax is due with the return or report.

Sec.
4503.06.
(A)
The owner of each manufactured or mobile home that has acquired situs
in this state shall pay either a real property tax pursuant to Title
LVII of the Revised Code or a manufactured home tax pursuant to
division (C) of this section.

(B)
The owner of a manufactured or mobile home shall pay real property
taxes if either of the following applies:

(1)
The manufactured or mobile home acquired situs in the state or
ownership in the home was transferred on or after January 1, 2000,
and all of the following apply:

(a)
The home is affixed to a permanent foundation as defined in division
(C)(5) of section 3781.06 of the Revised Code.

(b)
The home is located on land that is owned by the owner of the home.

(c)
The certificate of title has been inactivated by the clerk of the
court of common pleas that issued it, pursuant to division (H) of
section 4505.11 of the Revised Code.

(2)
The manufactured or mobile home acquired situs in the state or
ownership in the home was transferred before January 1, 2000, and all
of the following apply:

(a)
The home is affixed to a permanent foundation as defined in division
(C)(5) of section 3781.06 of the Revised Code.

(b)
The home is located on land that is owned by the owner of the home.

(c)
The owner of the home has elected to have the home taxed as real
property and, pursuant to section 4505.11 of the Revised Code, has
surrendered the certificate of title to the auditor of the county
containing the taxing district in which the home has its situs,
together with proof that all taxes have been paid.

(d)
The county auditor has placed the home on the real property tax list
and delivered the certificate of title to the clerk of the court of
common pleas that issued it and the clerk has inactivated the
certificate.

(C)(1)
Any mobile or manufactured home that is not taxed as real property as
provided in division (B) of this section is subject to an annual
manufactured home tax, payable by the owner, for locating the home in
this state. The tax as levied in this section is for the purpose of
supplementing the general revenue funds of the local subdivisions in
which the home has its situs pursuant to this section.

(2)
The year for which the manufactured home tax is levied commences on
the first day of January and ends on the following thirty-first day
of December. The state shall have the first lien on any manufactured
or mobile home on the list for the amount of taxes, penalties, and
interest charged against the owner of the home under this section.
The lien of the state for the tax for a year shall attach on the
first day of January to a home that has acquired situs on that date.
The lien for a home that has not acquired situs on the first day of
January, but that acquires situs during the year, shall attach on the
next first day of January. The lien shall continue until the tax,
including any penalty or interest, is paid.

(3)(a)
The situs of a manufactured or mobile home located in this state on
the first day of January is the local taxing district in which the
home is located on that date.

(b)
The situs of a manufactured or mobile home not located in this state
on the first day of January, but located in this state subsequent to
that date, is the local taxing district in which the home is located
thirty days after it is acquired or first enters this state.

(4)
The tax is collected by and paid to the county treasurer of the
county containing the taxing district in which the home has its
situs.

(D)
The manufactured home tax shall be computed and assessed by the
county auditor of the county containing the taxing district in which
the home has its situs as follows:

(1)
On a home that acquired situs in this state prior to January 1, 2000:

(a)
By multiplying the assessable value of the home by the tax rate of
the taxing district in which the home has its situs, and deducting
from the product thus obtained any reduction authorized under section
4503.065 of the Revised Code. The tax levied under this formula shall
not be less than thirty-six dollars, unless the home qualifies for a
reduction in assessable value under section 4503.065 of the Revised
Code, in which case there shall be no minimum tax and the tax shall
be the amount calculated under this division.

(b)
The assessable value of the home shall be forty per cent of the
amount arrived at by the following computation:

(i)
If the cost to the owner, or market value at time of purchase,
whichever is greater, of the home includes the furnishings and
equipment, such cost or market value shall be multiplied according to
the following schedule:

1

2

3

A

For
the first calendar year in which the home is owned by the current
owner

x

80%

B

2nd
calendar year

x

75%

C

3rd
"

x

70%

D

4th
"

x

65%

E

5th
"

x

60%

F

6th
"

x

55%

G

7th
"

x

50%

H

8th
"

x

45%

I

9th
"

x

40%

J

10th
and each year thereafter

x

35%

The
first calendar year means any period between the first day of January
and the thirty-first day of December of the first year.

(ii)
If the cost to the owner, or market value at the time of purchase,
whichever is greater, of the home does not include the furnishings
and equipment, such cost or market value shall be multiplied
according to the following schedule:

1

2

3

A

For
the first calendar year in which the home is owned by the current
owner

x

95%

B

2nd
calendar year

x

90%

C

3rd
"

x

85%

D

4th
"

x

80%

E

5th
"

x

75%

F

6th
"

x

70%

G

7th
"

x

65%

H

8th
"

x

60%

I

9th
"

x

55%

J

10th
and each year thereafter

x

50%

The
first calendar year means any period between the first day of January
and the thirty-first day of December of the first year.

(2)
On a home in which ownership was transferred or that first acquired
situs in this state on or after January 1, 2000:

(a)
By multiplying the assessable value of the home by the effective tax
rate, as defined in section 323.08 of the Revised Code, for
residential real property of the taxing district in which the home
has its situs, and deducting from the product thus obtained the
reductions required or authorized under section 319.302, 319.303,
319.304, or 4503.065 or division (B) of section 323.152 of the
Revised Code.

(b)
The assessable value of the home shall be thirty-five per cent of its
true value as determined under division (L) of this section.

(3)
On or before the fifteenth day of January each year, the county
auditor shall record the assessable value and the amount of tax on
the manufactured or mobile home on the tax list and deliver a
duplicate of the list to the county treasurer. In the case of an
emergency as defined in section 323.17 of the Revised Code, the tax
commissioner, by journal entry, may extend the times for delivery of
the duplicate for an additional fifteen days upon receiving a written
application from the county auditor regarding an extension for the
delivery of the duplicate, or from the county treasurer regarding an
extension of the time for the billing and collection of taxes. The
application shall contain a statement describing the emergency that
will cause the unavoidable delay and must be received by the tax
commissioner on or before the last day of the month preceding the day
delivery of the duplicate is otherwise required. When an extension is
granted for delivery of the duplicate, the time period for payment of
taxes shall be extended for a like period of time. When a delay in
the closing of a tax collection period becomes unavoidable, the tax
commissioner, upon application by the county auditor and county
treasurer, may order the time for payment of taxes to be extended if
the tax commissioner determines that penalties have accrued or would
otherwise accrue for reasons beyond the control of the taxpayers of
the county. The order shall prescribe the final extended date for
payment of taxes for that collection period.

(4)
After January 1, 1999, the owner of a manufactured or mobile home
taxed pursuant to division (D)(1) of this section may elect to have
the home taxed pursuant to division (D)(2) of this section by filing
a written request with the county auditor of the taxing district in
which the home is located on or before the first day of December of
any year. Upon the filing of the request, the county auditor shall
determine whether all taxes levied under division (D)(1) of this
section have been paid, and if those taxes have been paid, the county
auditor shall tax the manufactured or mobile home pursuant to
division (D)(2) of this section commencing in the next tax year.

(5)
A manufactured or mobile home that acquired situs in this state prior
to January 1, 2000, shall be taxed pursuant to division (D)(2) of
this section if no manufactured home tax had been paid for the home
and the home was not exempted from taxation pursuant to division (E)
of this section for the year for which the taxes were not paid.

(6)(a)
Immediately upon receipt of any manufactured home tax duplicate from
the county auditor, but not less than twenty days prior to the last
date on which the first one-half taxes may be paid without penalty as
prescribed in division (F) of this section, the county treasurer
shall cause to be prepared and mailed or delivered to each person
charged on that duplicate with taxes, or to an agent designated by
such person, the tax bill prescribed by the tax commissioner under
division (D)(7) of this section. When taxes are paid by installments,
the county treasurer shall mail or deliver to each person charged on
such duplicate or the agent designated by that person a second tax
bill showing the amount due at the time of the second tax collection.
The second half tax bill shall be mailed or delivered at least twenty
days prior to the close of the second half tax collection period. A
change in the mailing address, electronic mail address, or telephone
number of any tax bill shall be made in writing to the county
treasurer. Failure to receive a bill required by this section does
not excuse failure or delay to pay any taxes shown on the bill or,
except as provided in division (B)(1) of section 5715.39 of the
Revised Code, avoid any penalty, interest, or charge for such delay.

A
policy adopted by a county treasurer under division (A)(2) of section
323.13 of the Revised Code shall also allow any person required to
receive a tax bill under division (D)(6)(a) of this section to
request electronic delivery of that tax bill in the same manner. A
person may rescind such a request in the same manner as a request
made under division (A)(2) of section 323.13 of the Revised Code. The
request shall terminate upon a change in the name of the person
charged with the taxes pursuant to section 4503.061 of the Revised
Code.

(b)
After delivery of the copy of the delinquent manufactured home tax
list under division (H) of this section, the county treasurer may
prepare and mail to each person in whose name a home is listed an
additional tax bill showing the total amount of delinquent taxes
charged against the home as shown on the list. The tax bill shall
include a notice that the interest charge prescribed by division (G)
of this section has begun to accrue.

(7)
Each tax bill prepared and mailed or delivered under division (D)(6)
of this section shall be in the form and contain the information
required by the tax commissioner. The commissioner may prescribe
different forms for each county and may authorize the county auditor
to make up tax bills and tax receipts to be used by the county
treasurer. The tax bill shall not contain or be mailed or delivered
with any information or material that is not required by this section
or that is not authorized by section 321.45 of the Revised Code or by
the tax commissioner. In addition to the information required by the
commissioner, each tax bill shall contain the following information:

(a)
The taxes levied and the taxes charged and payable against the
manufactured or mobile home;

(b)
The following notice: "Notice: If the taxes are not paid within
sixty days after the county auditor delivers the delinquent
manufactured home tax list to the county treasurer, you and your home
may be subject to collection proceedings for tax delinquency."
Failure to provide such notice has no effect upon the validity of any
tax judgment to which a home may be subjected.

(c)
In the case of manufactured or mobile homes taxed under division
(D)(2) of this section, the following additional information:

(i)
The effective tax rate. The words "effective tax rate"
shall appear in boldface type.

(ii)
The following notice: "Notice: If the taxes charged against this
home have been reduced by the 2-1/2 per cent tax reduction for
residences occupied by the owner but the home is not a residence
occupied by the owner, the owner must notify the county auditor's
office not later than March 31 of the year for which the taxes are
due. Failure to do so may result in the owner being convicted of a
fourth degree misdemeanor, which is punishable by imprisonment up to
30 days, a fine up to $250, or both, and in the owner having to repay
the amount by which the taxes were erroneously or illegally reduced,
plus any interest that may apply.

If
the taxes charged against this home have not been reduced by the
2-1/2 per cent tax reduction and the home is a residence occupied by
the owner, the home may qualify for the tax reduction. To obtain an
application for the tax reduction or further information, the owner
may contact the county auditor's office at __________ (insert the
address and telephone number of the county auditor's office)."

(E)(1)
A manufactured or mobile home is not subject to this section when any
of the following applies:

(a)
It is taxable as personal property pursuant to section 5709.01 of the
Revised Code. Any manufactured or mobile home that is used as a
residence shall be subject to this section and shall not be taxable
as personal property pursuant to section 5709.01 of the Revised Code.

(b)
It bears a license plate issued by any state other than this state
unless the home is in this state in excess of an accumulative period
of thirty days in any calendar year.

(c)
The annual tax has been paid on the home in this state for the
current year.

(d)
The tax commissioner has determined, pursuant to section 5715.27 of
the Revised Code, that the property is exempt from taxation, or would
be exempt from taxation under Chapter 5709. of the Revised Code if it
were classified as real property.

(2)
A travel trailer or park trailer, as these terms are defined in
section 4501.01 of the Revised Code, is not subject to this section
if it is unused or unoccupied and stored at the owner's normal place
of residence or at a recognized storage facility.

(3)
A travel trailer or park trailer, as these terms are defined in
section 4501.01 of the Revised Code, is subject to this section and
shall be taxed as a manufactured or mobile home if it has a situs
longer than thirty days in one location and is connected to existing
utilities, unless either of the following applies:

(a)
The situs is in a state facility or a camping or park area as defined
in division (C), (Q), (S), or (V) of section 3729.01 of the Revised
Code.

(b)
The situs is in a camping or park area that is a tract of land that
has been limited to recreational use by deed or zoning restrictions
and subdivided for sale of five or more individual lots for the
express or implied purpose of occupancy by either self-contained
recreational vehicles as defined in division (T) of section 3729.01
of the Revised Code or by dependent recreational vehicles as defined
in division (D) of section 3729.01 of the Revised Code.

(F)
Except as provided in division (D)(3) of this section, the
manufactured home tax is due and payable as follows:

(1)
When a manufactured or mobile home has a situs in this state, as
provided in this section, on the first day of January, one-half of
the amount of the tax is due and payable on or before the first day
of March and the balance is due and payable on or before the
thirty-first day of July. At the option of the owner of the home, the
tax for the entire year may be paid in full on the first day of
March.

(2)
When a manufactured or mobile home first acquires a situs in this
state after the first day of January, no tax is due and payable for
that year.

(G)(1)(a)
Except as otherwise provided in division (G)(1)(b) of this section,
if one-half of the current taxes charged under this section against a
manufactured or mobile home, together with the full amount of any
delinquent taxes, are not paid on or before the first day of March in
that year, or on or before the last day for such payment as extended
pursuant to section 4503.063 of the Revised Code, a penalty of ten
per cent shall be charged against the unpaid balance of such half of
the current taxes. If the total amount of all such taxes is not paid
on or before the thirty-first day of July, next thereafter, or on or
before the last day for payment as extended pursuant to section
4503.063 of the Revised Code, a like penalty shall be charged on the
balance of the total amount of the unpaid current taxes.

(b)
After a valid delinquent tax contract that includes unpaid current
taxes from a first-half collection period described in division (F)
of this section has been entered into under section 323.31 of the
Revised Code, no ten per cent penalty shall be charged against such
taxes after the second-half collection period while the delinquent
tax contract remains in effect. On the day a delinquent tax contract
becomes void, the ten per cent penalty shall be charged against such
taxes and shall equal the amount of penalty that would have been
charged against unpaid current taxes outstanding on the date on which
the second-half penalty would have been charged thereon under
division (G)(1)(a) of this section if the contract had not been in
effect.

(2)(a)
On the first day of the month following the last day the second
installment of taxes may be paid without penalty beginning in 2000,
interest shall be charged against and computed on all delinquent
taxes other than the current taxes that became delinquent taxes at
the close of the last day such second installment could be paid
without penalty. The charge shall be for interest that accrued during
the period that began on the preceding first day of December and
ended on the last day of the month that included the last date such
second installment could be paid without penalty. The interest shall
be computed at the rate per annum prescribed by section 5703.47 of
the Revised Code and shall be entered as a separate item on the
delinquent manufactured home tax list compiled under division (H) of
this section.

(b)
On the first day of December

beginning in 2000
,
the interest shall be charged against and computed on all delinquent
taxes

other than the current taxes that became delinquent taxes at the
close of the last day the second installment could be paid without
penalty
.
The charge shall be for interest that accrued during the period that
began on the first day of the month following the last date
prescribed for the payment of the second installment of taxes in the
current year and ended on the immediately preceding last day of
November. The interest shall be computed at the rate per annum
prescribed by section 5703.47 of the Revised Code and shall be
entered as a separate item on the delinquent manufactured home tax
list.

(c)
After a valid undertaking has been entered into for the payment of
any delinquent taxes, no interest shall be charged against such
delinquent taxes while the undertaking remains in effect in
compliance with section 323.31 of the Revised Code. If a valid
undertaking becomes void, interest shall be charged against the
delinquent taxes for the periods that interest was not permitted to
be charged while the undertaking was in effect. The interest shall be
charged on the day the undertaking becomes void and shall equal the
amount of interest that would have been charged against the unpaid
delinquent taxes outstanding on the dates on which interest would
have been charged thereon under divisions (G)(1) and (2) of this
section had the undertaking not been in effect.

(3)
If the full amount of the taxes due at either of the times prescribed
by division (F) of this section is paid within ten days after such
time, the county treasurer shall waive the collection of and the
county auditor shall remit one-half of the penalty provided for in
this division for failure to make that payment by the prescribed
time.

(4)
The treasurer shall compile and deliver to the county auditor a list
of all tax payments the treasurer has received as provided in
division (G)(3) of this section. The list shall include any
information required by the auditor for the remission of the
penalties waived by the treasurer. The taxes so collected shall be
included in the settlement next succeeding the settlement then in
process.

(H)(1)

The

No
sooner than six months after the settlement under division (H)(2) of
section 321.24 of the Revised Code, the
county
auditor shall compile
annually

a
"delinquent manufactured home tax list" consisting of homes
the county treasurer's records indicate have taxes that were not paid
within the time prescribed by divisions (D)(3) and (F) of this
section

and that remain unpaid
,
have taxes that remain unpaid from prior years, or have unpaid tax
penalties or interest that have been assessed.

(2)

Within
thirty days after the settlement under division (H)(2) of section
321.24 of the Revised Code, the
The

county
auditor shall deliver a copy of the delinquent manufactured home tax
list to the county treasurer. The auditor shall update and publish
the delinquent manufactured home tax list annually in the same manner
as delinquent real property tax lists are published. The county
auditor may apportion the cost of publishing the list among taxing
districts in proportion to the amount of delinquent manufactured home
taxes so published that each taxing district is entitled to receive
upon collection of those taxes, or the county auditor may charge the
owner of a home on the list a flat fee established under section
319.54 of the Revised Code for the cost of publishing the list and,
if the fee is not paid, may place the fee upon the delinquent
manufactured home tax list as a lien on the listed home, to be
collected as other manufactured home taxes.

(3)
When taxes, penalties, or interest are charged against a person on
the delinquent manufactured home tax list and are not paid within
sixty days after the list is delivered to the county treasurer, the
county treasurer shall, in addition to any other remedy provided by
law for the collection of taxes, penalties, and interest, enforce
collection of such taxes, penalties, and interest by civil action in
the name of the treasurer against the owner for the recovery of the
unpaid taxes following the procedures for the recovery of delinquent
real property taxes in sections 323.25 to 323.28 of the Revised Code.
The action may be brought in municipal or county court, provided the
amount charged does not exceed the monetary limitations for original
jurisdiction for civil actions in those courts.

It
is sufficient, having made proper parties to the suit, for the county
treasurer to allege in the treasurer's bill of particulars or
petition that the taxes stand chargeable on the books of the county
treasurer against such person, that they are due and unpaid, and that
such person is indebted in the amount of taxes appearing to be due
the county. The treasurer need not set forth any other matter
relating thereto. If it is found on the trial of the action that the
person is indebted to the state, judgment shall be rendered in favor
of the county treasurer prosecuting the action. The judgment debtor
is not entitled to the benefit of any law for stay of execution or
exemption of property from levy or sale on execution in the
enforcement of the judgment.

Upon
the filing of an entry of confirmation of sale or an order of
forfeiture in a proceeding brought under this division, title to the
manufactured or mobile home shall be in the purchaser. The clerk of
courts shall issue a certificate of title to the purchaser upon
presentation of proof of filing of the entry of confirmation or order
and, in the case of a forfeiture, presentation of the county
auditor's certificate of sale.

(I)
The total amount of taxes collected shall be distributed in the
following manner: four per cent shall be allowed as compensation to
the county auditor for the county auditor's service in assessing the
taxes; two per cent shall be allowed as compensation to the county
treasurer for the services the county treasurer renders as a result
of the tax levied by this section. Such amounts shall be paid into
the county treasury, to the credit of the county general revenue
fund, on the warrant of the county auditor. Fees to be paid to the
credit of the real estate assessment fund shall be collected pursuant
to division (C) of section 319.54 of the Revised Code and paid into
the county treasury, on the warrant of the county auditor. The
balance of the taxes collected shall be distributed among the taxing
subdivisions of the county in which the taxes are collected and paid
in the same proportions that the amount of manufactured home tax
levied by each taxing subdivision of the county in the current tax
year bears to the amount of such tax levied by all such subdivisions
in the county in the current tax year. The taxes levied and revenues
collected under this section shall be in lieu of any general property
tax and any tax levied with respect to the privilege of using or
occupying a manufactured or mobile home in this state except as
provided in sections 4503.04 and 5741.02 of the Revised Code.

(J)
An agreement to purchase or a bill of sale for a manufactured home
shall show whether or not the furnishings and equipment are included
in the purchase price.

(K)
If the county treasurer and the county prosecuting attorney agree
that an item charged on the delinquent manufactured home tax list is
uncollectible, they shall certify that determination and the reasons
to the county board of revision. If the board determines the amount
is uncollectible, it shall certify its determination to the county
auditor, who shall strike the item from the list.

(L)(1)
The county auditor shall appraise at its true value any manufactured
or mobile home in which ownership is transferred or which first
acquires situs in this state on or after January 1, 2000, and any
manufactured or mobile home the owner of which has elected, under
division (D)(4) of this section, to have the home taxed under
division (D)(2) of this section. The true value shall include the
value of the home, any additions, and any fixtures, but not any
furnishings in the home. In determining the true value of a
manufactured or mobile home, the auditor shall consider all facts and
circumstances relating to the value of the home, including its age,
its capacity to function as a residence, any obsolete
characteristics, and other factors that may tend to prove its true
value.

(2)(a)
If a manufactured or mobile home has been the subject of an arm's
length sale between a willing seller and a willing buyer within a
reasonable length of time prior to the determination of true value,
the county auditor shall consider the sale price of the home to be
the true value for taxation purposes.

(b)
The sale price in an arm's length transaction between a willing
seller and a willing buyer shall not be considered the true value of
the home if either of the following occurred after the sale:

(i)
The home has lost value due to a casualty.

(ii)
An addition or fixture has been added to the home.

(3)
The county auditor shall have each home viewed and appraised at least
once in each six-year period in the same year in which real property
in the county is appraised pursuant to Chapter 5713. of the Revised
Code, and shall update the appraised values in the third calendar
year following the appraisal. The person viewing or appraising a home
may enter the home to determine by actual view any additions or
fixtures that have been added since the last appraisal. In conducting
the appraisals and establishing the true value, the auditor shall
follow the procedures set forth for appraising real property in
sections 5713.01 and 5713.03 of the Revised Code.

(4)
The county auditor shall place the true value of each home on the
manufactured home tax list upon completion of an appraisal.

(5)(a)
If the county auditor changes the true value of a home, the auditor
shall notify the owner of the home in writing, delivered by mail or
in person. The notice shall be given at least thirty days prior to
the issuance of any tax bill that reflects the change. Failure to
receive the notice does not invalidate any proceeding under this
section.

(b)
Any owner of a home or any other person or party that would be
authorized to file a complaint under division (A) of section 5715.19
of the Revised Code if the home was real property may file a
complaint against the true value of the home as appraised under this
section. The complaint shall be filed with the county auditor on or
before the thirty-first day of March of the current tax year or the
date of closing of the collection for the first half of manufactured
home taxes for the current tax year, whichever is later. The auditor
shall present to the county board of revision all complaints filed
with the auditor under this section. The board shall hear and
investigate the complaint and may take action on it as provided under
sections 5715.11 to 5715.19 of the Revised Code.

(c)
If the county board of revision determines, pursuant to a complaint
against the valuation of a manufactured or mobile home filed under
this section, that the amount of taxes, assessments, or other charges
paid was in excess of the amount due based on the valuation as
finally determined, then the overpayment shall be refunded in the
manner prescribed in section 5715.22 of the Revised Code.

(d)
Payment of all or part of a tax under this section for any year for
which a complaint is pending before the county board of revision does
not abate the complaint or in any way affect the hearing and
determination thereof.

(M)
If the county auditor determines that any tax or other charge or any
part thereof has been erroneously charged as a result of a clerical
error as defined in section 319.35 of the Revised Code, the county
auditor shall call the attention of the county board of revision to
the erroneous charges. If the board finds that the taxes or other
charges have been erroneously charged or collected, it shall certify
the finding to the auditor. Upon receipt of the certification, the
auditor shall remove the erroneous charges on the manufactured home
tax list or delinquent manufactured home tax list in the same manner
as is prescribed in section 319.35 of the Revised Code for erroneous
charges against real property, and refund any erroneous charges that
have been collected, with interest, in the same manner as is
prescribed in section 319.36 of the Revised Code for erroneous
charges against real property.

(N)
As used in this section and section 4503.061 of the Revised Code:

(1)
"Manufactured home taxes" includes taxes, penalties, and
interest charged under division (C) or (G) of this section and any
penalties charged under division (G) or (H)(5) of section 4503.061 of
the Revised Code.

(2)
"Current taxes" means all manufactured home taxes charged
against a manufactured or mobile home that have not appeared on the
manufactured home tax list for any prior year. Current taxes become
delinquent taxes if they remain unpaid after the last day prescribed
for payment of the second installment of current taxes without
penalty, whether or not they have been certified delinquent.

(3)
"Delinquent taxes" means:

(a)
Any manufactured home taxes that were charged against a manufactured
or mobile home for a prior year, including any penalties or interest
charged for a prior year and the costs of publication under division
(H)(2) of this section, and that remain unpaid;

(b)
Any current manufactured home taxes charged against a manufactured or
mobile home that remain unpaid after the last day prescribed for
payment of the second installment of current taxes without penalty,
whether or not they have been certified delinquent, including any
penalties or interest and the costs of publication under division
(H)(2) of this section.

Sec.
5703.42.
The
annual report of the department of taxation shall include a full
report of the operation and execution of all laws which it is
required to administer.

The department shall deliver copies of the report to each member of
the general assembly.

Sec.
5703.52.
(A)
The tax commissioner shall appoint one or more problem resolution
officers from among the employees of the department of taxation
,
and at least one of these employees shall be assigned as a problem
resolution officer as the employee's full-time duty
.
These officers shall receive and review inquiries and complaints
concerning matters that have been pending before the department for
an unreasonable length of time or matters to which a taxpayer has
been unable to obtain a satisfactory response after several attempts
to communicate with the employee of the department assigned to the
taxpayer's case or the employee's immediate supervisor.

Matters
arising in cases on appeal from a final determination of the
commissioner or in cases certified to the attorney general for
collection are not reviewable by a problem resolution officer. An
action taken by a problem resolution officer is not a final order of
the commissioner appealable to the board of tax appeals.

The
commissioner shall prescribe and make available on the department of
taxation's web site a form, that may be submitted online through the
department's web site, to request assistance from or otherwise
communicate with a problem resolution officer. The form shall be
available from a link on the home page of the department's web site.
Upon receipt of such a form, the officer shall transmit a copy of the
form to any employee of the department involved in the matter listed
on the form.

The
home page of the department's web site shall include a link that
leads to a directory of each employee appointed as a problem
resolution officer, including the name, phone number, and electronic
mail address of the employee. The directory shall also indicate if an
employee is assigned as a problem resolution officer as the
employee's full-time duty. This information shall be updated as
needed. If a person registers to receive regular communication or
updates from the department, this information shall be included in
such a communication to the person. If any of the information
changes, it shall be included in another communication.

(B)
The tax commissioner shall maintain a continuing education program to
train employees of the department and to provide them with a current
knowledge of state and federal tax laws.

(C)
In addition to any other information provided by law, the tax
commissioner shall include in the annual report required by section
5703.42 of the Revised Code
information

all
of the following, arranged by tax and whether the taxpayer involved
is an individual or a business:

(1)
Information
about
the number and kinds of audits or assessments conducted in the year
covered by the report
.

(2)
The length of time of such audits, which may be compiled into
statistics.

(3)
The length of time to resolve appeals, which may be compiled into
statistics.

(4)
The number of audits that remained unresolved as of the last day of
the year covered by the report. Of those audits, the report shall
indicate whether each had been unresolved for less than one year,
more than one year but less than two years, more than two years but
less than three years, or four years or more.

(5)
The number of appeals with respect to which a taxpayer has filed a
petition for reassessment or request for hearing but that, as of the
last day of the year covered by the report, have have not resulted in
a final determination. Of those appeals, the report shall indicate
whether each had been unresolved for less than one year, more than
one year but less than two years, more than two years but less than
three years, or four years or more
.

(D)
The tax commissioner shall not use the amounts of taxes assessed by
an employee of the department as the basis of a production quota
system for employees or the basis for evaluating an employee's
performance.

(E)
The tax commissioner shall establish procedures for monitoring the
performance of tax agents that include the use of evaluations
obtained from taxpayers.

Sec.
5703.59.
(A)
As used in this section:

(1)
"Taxpayer" and "tax or fee" have the same
meanings as in section 5703.77 of the Revised Code.

(2)
"Notice of assessment" means a notice of underpayment or
nonpayment of a tax or fee issued pursuant to any section of the
Revised Code, including under section 5736.09, 5739.13, 5741.11,
5741.13, 5747.13, or 5751.09 of the Revised Code.

(B)
A taxpayer shall have at least one opportunity to pay the amount of
any tax or fee, including related charges, penalties, and interest,
for which a notice of assessment has been issued but that has not
been certified to the attorney general under section 131.02 of the
Revised Code by entering into a written delinquent tax contract with
the tax commissioner on a form prescribed by the commissioner.
Additional opportunities to enter into a delinquent tax contract
shall be at the commissioner's sole discretion.

A
delinquent tax contract entered into under this section shall provide
for the payment of any delinquent or unpaid current taxes, or both,
in installments over a period, beginning on the date of the first
payment made under the contract, not to exceed six years at the
election of the taxpayer.

Each
delinquent tax contract entered into under this section shall specify
the number of installments, the amount of each installment, and the
schedule for payment of the installments. The part of each
installment payment representing taxes, fees, charges, interest, and
penalties shall be treated as a regular payment of the tax, fee,
charge, penalty, or interest under applicable law.

When
an installment payment is not received by the commissioner when due
under a delinquent tax contract entered into under this section, the
delinquent tax contract becomes void unless the commissioner permits
a new delinquent tax contract to be entered into.

Sec.
5703.60.
(A)
If a petition for reassessment has been properly filed under a law
that specifies that this section applies, the tax commissioner shall
proceed as follows:

(1)
Except as provided in division (D) of this section, the commissioner
may correct the assessment by issuing a corrected assessment. The
corrected assessment may reduce or increase the previous assessment,
as the commissioner finds proper. The commissioner shall send the
corrected assessment by ordinary mail to the address to which the
original assessment was sent, unless the petitioner notifies the
commissioner of a different address. The commissioner's mailing of
the corrected assessment is an assessment timely made and issued to
the extent that the original assessment was timely made and issued,
notwithstanding any time limitation otherwise imposed by law.

Within
sixty days after the mailing of the corrected assessment, the
petitioner may file a new petition for reassessment. The petition
shall be filed in the same manner as provided by law for filing the
original petition. If a new petition is properly filed within the
sixty-day period, the commissioner shall proceed under division
(A)(2) or (3) of this section. If a new petition is not properly
filed within the sixty-day period, the corrected assessment becomes
final, and the amount of the corrected assessment is due and payable
from the person assessed.

The
issuance of a corrected assessment under this division nullifies the
petition for reassessment filed before such issuance, and that
petition shall not be subject to further administrative review or
appeal. The commissioner may issue to the person assessed only one
corrected assessment under this division.

(2)
The commissioner may cancel the assessment by issuing either a
corrected assessment or a final determination. The commissioner may
mail the cancellation in the same manner as a corrected assessment
under division (A)(1) of this section. Cancellation of an assessment
pursuant to this division is not subject to further administrative
review or appeal.

(3)
If no corrected assessment or final determination is issued under
division (A)(1) or (2) of this section, or if a new petition for
reassessment is properly filed under division (A)(1) of this section,
the commissioner shall review the assessment or corrected assessment
petition that is still pending. If the petitioner requests a hearing,
the commissioner shall assign a time and place for the hearing and
notify the petitioner of such time and place
,
but the commissioner may continue the hearing from time to time as
necessary
.

Upon

The
hearing shall be held not later than one hundred eighty days after
the hearing is requested, unless the petitioner files a request to
extend this deadline by ninety days, which the commissioner shall
grant, or the deadline is extended pursuant to division (A)(5) of
this section or, for not more than one hundred eighty additional
days, by agreement of the petitioner and commissioner. Subject to
division (A)(4) of this section, upon
completion
of the review and hearing, if requested by the person assessed, the
commissioner shall either cancel the assessment or corrected
assessment by issuing a corrected assessment or final determination
under division (A)(2) of this section, or issue a final determination
that reduces, affirms, or increases the assessment or corrected
assessment, as the commissioner finds proper. If a final
determination is issued under this division, a copy of it shall be
served on the petitioner in the manner provided by section 5703.37 of
the Revised Code, and it is subject to appeal under section 5717.02
of the Revised Code. Only objections decided on the merits by the
board of tax appeals or a court shall be given the effect of
collateral estoppel or res judicata in considering an application for
refund of amounts paid pursuant to the assessment or corrected
assessment.

(4)
During a hearing described in division (A)(3) of this section, the
petitioner may request that the tax commissioner disclose to the
petitioner or the petitioner's representative any proposed final
determination. The commissioner shall comply with any such request
and shall not issue a final determination until at least thirty days
following delivery of the proposed final determination to the
petitioner or representative. During that thirty-day period, the
petitioner may respond to the proposed final determination or provide
additional supporting documentation to the commissioner.

If
the petitioner does not respond to the proposed final determination
during that thirty-day period, the proposed final determination shall
be deemed, on the last day of such period, to be the final
determination, which may be appealed under section 5717.02 of the
Revised Code. The commissioner shall subsequently issue a final
determination with the same content as the proposed final
determination but, for the purposes of appeals under section 5717.02
of the Revised Code, the final determination shall be considered to
have been issued on the last day of the thirty-day period.

If
the petitioner does respond to the proposed final determination
during that thirty-day period, the commissioner may issue the final
determination within thirty days after receiving the response or
documentation. If that deadline expires without issuance of a final
determination, then on that expiration date the proposed final
determination is deemed to be the final determination, which may be
appealed under section 5717.02 of the Revised Code. Upon the written
consent of the petitioner, the commissioner may extend the thirty-day
period for issuing a final determination under this paragraph by up
to an additional thirty days.

(5)
The commissioner may, within sixty days after the filing of a
petition for reassessment, submit a request to the petitioner for a
settlement conference to explore opportunities to resolve the
petition. If the petitioner accepts the request, the conference shall
be held within one hundred eighty days after the petition's filing
date and the deadline by which a hearing must be held under division
(A)(3) of this section shall be extended by the number of days
between the date the commissioner makes the request for a conference
and the date of the conference.

(B)
Except as provided in division (D) of this section, in addition to
the authority provided in division (A) of this section and division
(H) of section 5703.05 of the Revised Code, the tax commissioner, on
the commissioner's own motion, may issue a corrected assessment with
regard to the assessment of any tax for which a properly filed
petition for reassessment would be subject to division (A) of this
section. A corrected assessment may be issued under this division
only if the original assessment has not been certified to the
attorney general for collection under section 131.02 of the Revised
Code, or is not an appeal pursuant to section 5717.02 of the Revised
Code. The corrected assessment shall not increase the amount of tax,
penalty, or additional charge if the statute of limitations to issue
a new assessment for such increase has expired. The corrected
assessment shall be issued and reviewed in the same manner as a
corrected assessment under division (A)(1) of this section.

(C)
If the tax commissioner issues a corrected assessment or final
determination under this section that reduces an assessment below the
amount paid thereon, and the reduction is made at the written request
of the party assessed, either through the filing of a proper petition
for reassessment or otherwise, the commissioner shall certify any
overpayment as a refund due only to the extent a refund could have
been timely claimed when the request was made. If the reduction is
made on the commissioner's own motion, the commissioner shall certify
any overpayment as a refund due only to the extent a refund could
have been timely claimed at the time the reduction was made.

(D)
The tax commissioner shall not issue a corrected assessment under
division (A)(1) or (B) of this section after the party assessed has
requested in writing that the commissioner not use that procedure.

(E)
This section does not require the tax commissioner to issue a
corrected assessment.

(F)
Notwithstanding any other section of the Revised Code, interest on an
assessment for which a petition for reassessment has been filed shall
no longer accrue more than one year after the filing date of that
petition through the date that the commissioner issues a final
determination on that petition.

(G)
Nothing in this section prohibits the tax commissioner from doing
either of the following between the time a petition for reassessment
is filed and a final determination is issued:

(1)
Requesting additional supporting documentation from the petitioner;

(2)
Communicating about, negotiating, or entering into a settlement
agreement with a petitioner, regardless of whether a settlement
conference is held under division (A)(5) of this section.

Sec.
5703.70.
(A)
On the filing of an application for refund under section 718.91,
3734.905, 4307.05, 4307.07, 5726.30, 5727.28, 5727.91, 5728.061,
5733.12, 5735.122, 5735.13, 5735.14, 5735.141, 5735.142, 5735.18,
5736.08, 5739.07, 5739.104, 5741.10, 5743.05, 5743.53, 5747.11,
5749.08, 5751.08, or 5753.06 of the Revised Code, or an application
for compensation under section 5739.061 of the Revised Code, if the
tax commissioner determines that the amount of the refund or
compensation to which the applicant is entitled is less than the
amount claimed in the application, the commissioner shall give the
applicant written notice electronically or by
ordinary

certified

mail
of the amount. If sent by
ordinary

certified

mail,
the notice shall be sent to the address shown on the application
unless the applicant notifies the commissioner of a different
address. If sent electronically, the notice shall be sent to the
person or the person's authorized representative through secure
electronic means associated with the person's or representative's
last known electronic mail address, but only with the person's
consent. The applicant shall have sixty days from the date the
commissioner electronically sends or mails the notice to provide
additional information to the commissioner or request a hearing, or
both.

(B)
If the applicant neither requests a hearing nor provides additional
information to the tax commissioner within the time prescribed by
division (A) of this section, the commissioner shall take no further
action, and the refund or compensation amount denied becomes final.

(C)(1)
If the applicant requests a hearing within the time prescribed by
division (A) of this section, the tax commissioner shall assign a
time and place for the hearing and notify the applicant of such time
and place
,
but the commissioner may continue the hearing from time to time, as
necessary
.
The hearing shall be held not later than one hundred eighty days
after the hearing is requested, unless the applicant files a request
to extend this deadline by ninety days, which the commissioner shall
grant, or the deadline is extended as required by division (C)(5) of
this section or, for not more than one hundred eighty additional
days, by agreement of the applicant and commissioner
.

After

Subject
to division (C)(4) of this section, after
the
hearing, the commissioner may make such adjustments to the refund or
compensation as the commissioner finds proper, and shall issue a
final determination thereon.

(2)
If the applicant does not request a hearing, but provides additional
information, within the time prescribed by division (A) of this
section, the commissioner shall review the information, make such
adjustments to the refund or compensation as the commissioner finds
proper, and issue a final determination thereon. The commissioner may
review such information and make such adjustments as many times as
the commissioner finds proper before the issuance of a final
determination.

(3)
If the applicant requests a hearing and provides additional
information within the time prescribed by division (A) of this
section, the commissioner may review the information and make such
adjustments to the refund or compensation as the commissioner finds
proper. The commissioner may review such information and make such
adjustments as many times as the commissioner finds proper before the
issuance of a final determination.

The
commissioner shall assign a time and place for the hearing and notify
the applicant of such time and place,
but
the commissioner may continue the hearing from time to time, as
necessary
and
the deadline for holding the hearing and the circumstances for
extending that deadline shall be the same as described in division
(C)(1) of this section
.

After

Subject
to division (C)(4) of this section, after
the
hearing, the commissioner may make any additional adjustments to the
refund or compensation as the commissioner finds proper and shall
issue a final determination thereon.

(4)

During
a hearing described in division (C)(1) or (3) of this section, the
applicant may request that the tax commissioner disclose to the
applicant or the applicant's representative any proposed final
determination. The commissioner shall comply with any such request
and shall not issue a final determination until at least thirty days
following delivery of the proposed final determination to the
applicant or representative. During that thirty-day period, the
applicant may respond to the proposed final determination or provide
additional supporting documentation to the commissioner.

If
the applicant does not respond to the proposed final determination
during that thirty-day period, the proposed final determination shall
be deemed, on the last day of such period, to be the final
determination, which may be appealed under section 5717.02 of the
Revised Code. The commissioner shall subsequently issue a final
determination with the same content as the proposed final
determination but, for the purposes of appeals under section 5717.02
of the Revised Code, the final determination shall be considered to
have been issued on the last day of the thirty-day period.

If
the applicant does not respond to the proposed final determination
during that thirty-day period, the commissioner may issue a final
determination within thirty days after receiving the response or
documentation. If that deadline expires without issuance of a final
determination, then on that expiration date the proposed final
determination is deemed to be the final determination, which may be
appealed under section 5717.02 of the Revised Code. Upon the written
consent of the applicant, the commissioner may extend the thirty-day
period for issuing a final determination under this paragraph by up
to an additional thirty days.

(5)
The commissioner may, within sixty days after the applicant requests
a hearing, submit a request to the applicant for a settlement
conference to explore opportunities to agree upon the amount of the
refund. If the applicant accepts the request, the conference shall be
held not later than one hundred eighty days after the hearing request
has been filed and the date on which the hearing would otherwise be
held shall be extended by the number of days between the date the
commissioner makes the request for a conference and the date of the
conference. After the conference, if the applicant and the
commissioner arrive at an agreement, the commissioner shall make any
agreed-upon adjustments to the refund or compensation and shall issue
a final determination thereon.

(6)

The
commissioner shall serve a copy of the final determination made under
division (C)(1), (2),
or

(3)
,
or (5)

of this section on the applicant in the manner provided in section
5703.37 of the Revised Code, and the decision is final, subject to
appeal under section 5717.02 of the Revised Code.

(D)
The tax commissioner shall certify to the director of budget and
management and treasurer of state for payment from the tax refund
fund created by section 5703.052 of the Revised Code, the amount of
the refund to be refunded under division (B) or (C) of this section.
The commissioner also shall certify to the director and treasurer of
state for payment from the general revenue fund the amount of
compensation to be paid under division (B) or (C) of this section.

(E)
Nothing in this section prohibits the tax commissioner doing either
of the following between the time a hearing is requested or the
applicant provides additional information to the commissioner and a
final determination is issued:

(1)
Requesting additional supporting documentation from the applicant;

(2)
Communicating about, negotiating, or entering into a settlement
agreement with an applicant, regardless of whether a settlement
conference is held under division (C)(5) of this section.

Sec.
5717.01.
An
appeal from a decision of a county board of revision may be taken to
the board of tax appeals within thirty days after notice of the
decision of the county board of revision is mailed as provided in
division (A) of section 5715.20 of the Revised Code. Such an appeal
may be taken by the county auditor, the tax commissioner, or any
board, legislative authority, public official, or taxpayer authorized
by section 5715.19 of the Revised Code to file complaints against
valuations or assessments with the auditor, except that a subdivision
or the legislative authority or mayor of a subdivision may file such
an appeal only if the subdivision owns or leases the property that is
the subject of the board of revision's decision, and except that no
such appeal may be taken by a third party complainant, as defined in
that section. Such appeal shall be taken by the filing of a notice of
appeal, in person or by certified mail, express mail, facsimile
transmission, electronic transmission, or by authorized delivery
service, with the board of tax appeals and with the county board of
revision. If notice of appeal is filed by certified mail, express
mail, or authorized delivery service as provided in section 5703.056
of the Revised Code, the date of the United States postmark placed on
the sender's receipt by the postal service or the date of receipt
recorded by the authorized delivery service shall be treated as the
date of filing. If notice of appeal is filed by facsimile
transmission or electronic transmission, the date and time the notice
is received by the board shall be the date and time reflected on a
timestamp provided by the board's electronic system, and the appeal
shall be considered filed with the board on the date reflected on
that timestamp. Any timestamp provided by another computer system or
electronic submission device shall not affect the time and date the
notice is received by the board. Upon receipt of such notice of
appeal such county board of revision shall notify all persons thereof
who were parties to the proceeding before such county board of
revision by either certified mail or, if the board has record of an
internet identifier of record associated with such a person, by
ordinary mail and by that internet identifier of record, and shall
file proof of such notice or, in the case of ordinary mail, an
affidavit attesting that the board sent the notice with the board of
tax appeals. The county board of revision shall thereupon certify to
the board of tax appeals a transcript of the record of the
proceedings of the county board of revision pertaining to the
original complaint, and all evidence offered in connection therewith.
Such appeal may be heard by the board of tax appeals at its offices
in Columbus or in the county where the property is listed for
taxation, or the board of tax appeals may cause its examiners to
conduct such hearing and to report to it their findings for
affirmation or rejection. An appeal may proceed pursuant to section
5703.021 of the Revised Code on the small claims docket if the appeal
qualifies under that section.

The
board of tax appeals may order the appeal to be heard on the record
and the evidence certified to it by the county board of revision, or
it may order the hearing of additional evidence, and it may make such
investigation concerning the appeal as it deems proper.

If the board orders a hearing, the board shall render its decision
within twelve months after the date of that hearing. If the board
does not order a hearing, the board shall render its decision within
twelve months after the last date on which a brief was filed in the
case. In either case, the time for rendering the decision may be
extended with the consent of all parties to the appeal.

As
used in this section, "internet identifier of record" has
the same meaning as in section 9.312 of the Revised Code.

Sec.
5717.011.
(A)
As used in this chapter, "tax administrator" has the same
meaning as in section 718.01 of the Revised Code.

(B)
Appeals from a final determination of a local board of tax review
created under section 718.11 of the Revised Code may be taken by the
taxpayer or the tax administrator to the board of tax appeals or may
be taken by the taxpayer or the tax administrator to a court of
common pleas as otherwise provided by law. If the taxpayer or the tax
administrator elects to make an appeal to the board of tax appeals or
court of common pleas, and subject to section 5703.021 of the Revised
Code with respect to appeals assigned to the small claims docket, the
appeal shall be taken by the filing of a notice of appeal with the
board of tax appeals or court of common pleas, the local board of tax
review, and the opposing party. The notice of appeal shall be filed
within sixty days after the day the appellant receives notice of the
final determination issued under section 718.11 of the Revised Code.
An appeal filed with a court of common pleas is governed by the Rules
of Civil Procedure and other rules of practice and procedure
applicable to civil actions. For an appeal filed with the board of
tax appeals, the notice of appeal may be filed in person or by
certified mail, express mail, facsimile transmission, electronic
transmission, or by authorized delivery service as provided in
section 5703.056 of the Revised Code. If the notice of appeal is
filed by certified mail, express mail, or authorized delivery service
as provided in section 5703.056 of the Revised Code, the date of the
United States postmark placed on the sender's receipt by the postal
service or the date of receipt recorded by the authorized delivery
service shall be treated as the date of filing with the board. If
notice of appeal is filed by facsimile transmission or electronic
transmission, the date and time the notice is received by the board
shall be the date and time reflected on a timestamp provided by the
board's electronic system, and the appeal shall be considered filed
with the board on the date reflected on that timestamp. Any timestamp
provided by another computer system or electronic submission device
shall not affect the time and date the notice is received by the
board. The notice of appeal shall have attached thereto and
incorporated therein by reference a true copy of the final
determination issued under section 718.11 of the Revised Code, but
failure to attach a copy of such notice and incorporate it by
reference in the notice of appeal does not invalidate the appeal.

(C)
A notice of appeal for an appeal filed with the board of tax appeals
shall contain a short and plain statement of the claimed errors in
the final determination of the local board of tax review showing that
the appellant is entitled to relief and a demand for the relief to
which the appellant claims to be entitled. An appellant may amend the
notice of appeal once as a matter of course within sixty days after
the certification of the transcript. Otherwise, an appellant may
amend the notice of appeal only after receiving leave of the board or
the written consent of each adverse party. Leave of the board shall
be freely given when justice so requires.

(D)
Upon the filing of a notice of appeal with the board of tax appeals,
the local board of tax review shall certify to the board of tax
appeals a transcript of the record of the proceedings before it,
together with all evidence considered by it in connection therewith.
Such appeals may be heard by the board at its office in Columbus or
in the county where the appellant resides, or it may cause its
examiners to conduct such hearings and to report to it their findings
for affirmation or rejection. The board may order the appeal to be
heard upon the record and the evidence certified to it by the tax
administrator, but upon the application of any interested party the
board shall order the hearing of additional evidence, and the board
may make such investigation concerning the appeal as it considers
proper. An appeal may proceed pursuant to section 5703.021 of the
Revised Code on the small claims docket if the appeals qualifies
under that section.

If the board orders a hearing, the board shall render its decision
within twelve months after the date of that hearing. If the board
does not order a hearing, the board shall render its decision within
twelve months after the last date on which a brief was filed in the
case. In either case, the time for rendering the decision may be
extended with the consent of all parties to the appeal.

(E)
If an issue being appealed under this section is addressed in a
municipal corporation's ordinance or regulation, the tax
administrator, upon the request of the board of tax appeals, shall
provide a copy of the ordinance or regulation to the board of tax
appeals.

Sec.
5717.02.
(A)
Except as otherwise provided by law, appeals from final
determinations by the tax commissioner of any preliminary, amended,
or final tax assessments, reassessments, valuations, determinations,
findings, computations, or orders made by the commissioner may be
taken to the board of tax appeals by the taxpayer, by the person to
whom notice of the tax assessment, reassessment, valuation,
determination, finding, computation, or order by the commissioner is
required by law to be given, by the director of budget and management
if the revenues affected by that decision would accrue primarily to
the state treasury, or by the county auditors of the counties to the
undivided general tax funds of which the revenues affected by that
decision would primarily accrue. Appeals from the redetermination by
the director of development

services
under
division (B) of section 5709.64 or division (A) of section 5709.66 of
the Revised Code may be taken to the board of tax appeals by the
enterprise to which notice of the redetermination is required by law
to be given. Appeals from a decision of the tax commissioner or
county auditor concerning an application for a property tax exemption
may be taken to the board of tax appeals by the applicant or by a
school district that filed a statement concerning that application
under division (C) of section 5715.27 of the Revised Code. Appeals
from a redetermination by the director of job and family services
under section 5733.42 of the Revised Code may be taken by the person
to which the notice of the redetermination is required by law to be
given under that section.

(B)
The appeals shall be taken by the filing of a notice of appeal with
the board, and with the tax commissioner if the tax commissioner's
action is the subject of the appeal, with the county auditor if the
county auditor's action is the subject of the appeal, with the
director of development

services
if
that director's action is the subject of the appeal, or with the
director of job and family services if that director's action is the
subject of the appeal. The notice of appeal shall be filed within
sixty days after service of the notice of the tax assessment,
reassessment, valuation, determination, finding, computation, or
order by the commissioner, property tax exemption determination by
the commissioner or the county auditor, or redetermination by the
director has been given as provided in section 5703.37, 5709.64,
5709.66, or 5733.42 of the Revised Code. The notice of appeal may be
filed in person or by certified mail, express mail, facsimile
transmission, electronic transmission or by authorized delivery
service. If the notice of appeal is filed by certified mail, express
mail, or authorized delivery service as provided in section 5703.056
of the Revised Code, the date of the United States postmark placed on
the sender's receipt by the postal service or the date of receipt
recorded by the authorized delivery service shall be treated as the
date of filing. If notice of appeal is filed by facsimile
transmission or electronic transmission, the date and time the notice
is received by the board shall be the date and time reflected on a
timestamp provided by the board's electronic system, and the appeal
shall be considered filed with the board on the date reflected on
that timestamp. Any timestamp provided by another computer system or
electronic submission device shall not affect the time and date the
notice is received by the board. The notice of appeal shall have
attached to it and incorporated in it by reference a true copy of the
notice sent by the commissioner, county auditor, or director to the
taxpayer, enterprise, or other person of the final determination or
redetermination complained of, but failure to attach a copy of that
notice and to incorporate it by reference in the notice of appeal
does not invalidate the appeal.

(C)
A notice of appeal shall contain a short and plain statement of the
claimed errors in the determination or redetermination of the tax
commissioner, county auditor, or director showing that the appellant
is entitled to relief and a demand for the relief to which the
appellant claims to be entitled. An appellant may amend the notice of
appeal once as a matter of course within sixty days after the
certification of the transcript. Otherwise, an appellant may amend
the notice of appeal only after receiving leave of the board or the
written consent of each adverse party. Leave of the board shall be
freely given when justice so requires.

(D)
Upon the filing of a notice of appeal, the tax commissioner, county
auditor, or the director, as appropriate, shall certify to the board
a transcript of the record of the proceedings before the
commissioner, auditor, or director, together with all evidence
considered by the commissioner, auditor, or director in connection
with the proceedings. Those appeals or applications may be heard by
the board at its office in Columbus or in the county where the
appellant resides, or it may cause its examiners to conduct the
hearings and to report to it their findings for affirmation or
rejection.

(E)
The board may order the appeal to be heard upon the record and the
evidence certified to it by the commissioner, county auditor, or
director, but upon the application of any interested party the board
shall order the hearing of additional evidence, and it may make an
investigation concerning the appeal that it considers proper. An
appeal may proceed pursuant to section 5703.021 of the Revised Code
on the small claims docket if the appeal qualifies under that
section.

If the board orders a hearing, the board shall render its decision
within twelve months after the date of that hearing. If the board
does not order a hearing, the board shall render its decision within
twelve months after the last date on which a brief was filed in the
case. In either case, the time for rendering the decision may be
extended with the consent of all parties to the appeal.

Sec.
5717.021.
If
the tax commissioner has not issued a final determination or proposed
a final determination within one year after a hearing held under
section 5703.60 or 5703.70 of the Revised Code occurs or, if a
petitioner does not request a hearing under section 5703.60 of the
Revised Code, within one year after the petition for reassessment is
filed, then the petitioner or applicant, respectively, may appeal the
assessment or denial of a refund, respectively, to the board of tax
appeals. The appeal shall be taken in the same manner as an appeal
taken under section 5717.02 of the Revised Code, except as follows:

(A)
The assessment or denial of the refund shall be the tax
commissioner's determination that is appealed against.

(B)
The transcript of the record of proceedings that the commissioner is
required to file shall include any information, records, or documents
that relate to the petition or denial.

(C)
Any objection raised by the appellant in its petition for
reassessment, any objection raised by the appellant in writing to the
commissioner after the filing of a petition for reassessment but
before the filing of an appeal under this section, or any
documentation submitted to the commissioner in response to the
commissioner's denial of a refund shall be considered denied by the
commissioner and an error that may be appealed.

(D)
In the case of an appeal of a refund denial, an appellant may raise
any basis as to why the denial was improper, even if the basis was
not raised before the filing of the appeal under this section.

(E)
Within sixty days after the notice of appeal is filed, the
commissioner shall file a short and plain statement of the bases for
sustaining an assessment or the denial of a refund, all of which must
have been communicated in writing to the appellant before the filing
of the appeal under this section. The board may deny an appeal filed
under this section only on the basis of an issue raised in the
commissioner's statement.

(F)
Within thirty days after the commissioner's statement is filed under
division (E) of this section, the appellant may amend the notice of
appeal in order to raise additional objections to the commissioner's
position.

(G)
If, for an appeal filed under this section, an appellant makes a
prima facie showing of the facts necessary to support the appellant's
position, the tax commissioner has the burden of proving, by clear
and convincing evidence, that the assessment should be sustained or
the refund should be denied.

Sec.
5721.011.
Immediately

No
sooner than six months
after
each settlement required by division (C) of section 321.24 of the
Revised Code, each county auditor shall compile, in substantially the
same form as the list and duplicate prepared pursuant to section
319.28 of the Revised Code, a list and duplicate of all delinquent
lands in the auditor's county. In any such list there may be included
lands that have been omitted from a prior list. Lands on which the
only unpaid taxes are amounts claimed in good faith not to be due in
complaints pending under section 5715.19 of the Revised Code and
lands that are the subject of an application for exemption from
taxation under section 5715.27 of the Revised Code shall not be
included in the list. The delinquent land list and duplicate shall
contain the description of the property and the name of the person in
whose name it is listed as they appear on the tax list of the
previous tax year and the total amount of all taxes, assessments,
recoupment charges, penalties, and interest
that
were
due
and unpaid against the entry at the settlement and
that
remain unpaid. The list
shall
set forth as separate items any interest required to be so entered
under divisions (B)(1), (2), and (3) of section 323.121 of the
Revised Code. The original list shall be kept in the office of the
auditor, and the duplicate shall be certified and delivered to the
county treasurer

within thirty days after the settlement required by division (C) of
section 321.24 of the Revised Code
.

Sec.
5726.21.
(A)
In addition to any other penalty imposed by this chapter or Chapter
5703. of the Revised Code
,
and except as provided in division (D) of this section
,
the following penalties shall apply:

(1)
If a taxpayer required to file any report under this chapter fails to
make and file the report within the time prescribed, a penalty may be
imposed not exceeding the greater of fifty dollars per month or
fraction of a month, not to exceed five hundred dollars, or five per
cent per month or fraction of a month, not to exceed fifty per cent
of the tax required to be shown on the report, for each month or
fraction of a month elapsing between the due date and the date on
which the report is filed.

(2)
If a taxpayer fails to pay the amount of tax required to be paid
under this chapter, except for estimated tax under section 5726.06 of
the Revised Code, by the dates prescribed in this chapter for
payment, a penalty may be imposed not exceeding fifteen per cent of
the delinquent payment.

(3)
If a taxpayer files what purports to be a report required by this
chapter that does not contain information upon which the substantial
correctness of the report may be judged or contains information that
on its face indicates that the report is substantially incorrect, and
the filing of the report in that manner is due to a position that is
frivolous or a desire that is apparent from the report to delay or
impede the administration of the tax levied under this chapter, a
penalty of up to five hundred dollars may be imposed.

(4)
If a taxpayer makes a fraudulent attempt to evade the reporting or
payment of the tax required to be shown on any report required under
this chapter, a penalty may be imposed not exceeding the greater of
one thousand dollars or one hundred per cent of the tax required to
be shown on the report.

(5)
If a taxpayer makes a false or fraudulent claim for a refund under
this chapter, a penalty may be imposed not exceeding the greater of
one thousand dollars or one hundred per cent of the claim.

(B)
The tax commissioner may collect any penalty imposed by this section
in the same manner as the tax levied under this chapter. Penalties so
collected shall be considered as revenue arising from the tax levied
under this chapter.

(C)
For purposes of this section, the tax required to be shown on the
report shall be reduced by the amount of any part of the tax paid on
or before the date prescribed for filing the report.

(D)

No
penalty shall be imposed under division (A) of this section for
failure to file a report required by section 5726.06 of the Revised
Code if the taxpayer has not failed to file a report under that
section in any preceding tax year.

(E)

The
tax commissioner may abate all or a portion of any penalties imposed
under this section and may adopt rules governing such abatements.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(q)
(o)

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

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

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

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

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

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

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

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

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

(V)
Trailers to which production equipment is attached;

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

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

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

(IX)
Pressure pumping equipment;

(X)
Artificial lift systems equipment;

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

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

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

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

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

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

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

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

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

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

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

(VIII)
Communication devices or services;

(IX)
Office supplies;

(X)
Trailers used as offices or lodging;

(XI)
Motor vehicles of any kind;

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

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

(XIV)
Data collection or monitoring devices;

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

The
enumeration of tangible personal property in division

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

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

of this section.

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

of this section.

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

(43)
Sales conducted through
a
coin operated
an
automated
device
that activates vacuum equipment or equipment that dispenses water,
whether or not in combination with soap or other cleaning agents or
wax, to the consumer for the consumer's use on the premises in
washing, cleaning, or waxing a motor vehicle, provided no other

personal
property or
personal
service is provided as part of the
transaction
automated
service
.

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

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

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

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

(48)
Sales of feminine hygiene products.

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

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

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

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

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

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

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

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

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

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

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

(a)
Accepts direct payments to operate;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(60)
Sales of children's diapers.

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

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

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

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

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

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

Sec.
5739.125.
Notwithstanding
any other provision of this chapter or Chapter 5741. of the Revised
Code, the tax commissioner shall not impose any penalty or interest
under either chapter or take any action otherwise authorized under
section 5739.30 of the Revised Code for the failure to file a return
if no amount of tax is due with the return.

Sec.
5745.04.
(A)
As used in this section, "combined tax liability" means the
total of a taxpayer's income tax liabilities to all municipal
corporations in this state for a taxable year.

(B)
Each taxpayer shall file a declaration of estimated tax report with,
and remit estimated taxes to, the tax commissioner, payable to the
treasurer of state, at the times and in the amounts prescribed in
divisions (B)(1) to (4) of this section. The first taxable year a
taxpayer is subject to this chapter, the estimated taxes the taxpayer
is required to remit under this section shall be based solely on the
current taxable year and not on the liability for the preceding
taxable year.

(1)
Not less than twenty-five per cent of the combined tax liability for
the preceding taxable year or twenty per cent of the combined tax
liability for the current taxable year shall have been remitted not
later than the fifteenth day of the fourth month after the end of the
preceding taxable year.

(2)
Not less than fifty per cent of the combined tax liability for the
preceding taxable year or forty per cent of the combined tax
liability for the current taxable year shall have been remitted not
later than the fifteenth day of the sixth month after the end of the
preceding taxable year.

(3)
Not less than seventy-five per cent of the combined tax liability for
the preceding taxable year or sixty per cent of the combined tax
liability for the current taxable year shall have been remitted not
later than the fifteenth day of the ninth month after the end of the
preceding taxable year.

(4)
Not less than one hundred per cent of the combined tax liability for
the preceding taxable year or eighty per cent of the combined tax
liability for the current taxable year shall have been remitted not
later than the fifteenth day of the twelfth month after the end of
the preceding taxable year.

(C)
Each taxpayer shall report on the declaration of estimated tax report
the portion of the remittance that the taxpayer estimates that it
owes to each municipal corporation for the taxable year.

(D)
Upon receiving a declaration of estimated tax report and remittance
of estimated taxes under this section, the tax commissioner shall
credit ninety-eight and one-half per cent of the remittance to the
municipal income tax fund and credit the remainder to the municipal
income tax administrative fund.

(E)
The taxpayer shall make the remittance of estimated taxes
electronically as prescribed by section 5745.041 of the Revised Code.

(F)
Notwithstanding section 5745.08 or 5745.09 of the Revised Code, no
penalty or interest shall be imposed on a taxpayer if the declaration
of estimated tax report is properly filed, and the estimated tax is
paid, within the time prescribed by division (B) of this section
,
and no penalty shall be imposed if the taxpayer has not failed to
properly file a declaration of estimated tax report in any preceding
taxable year
.

Sec.
5747.09.
(A)
As used in this section:

(1)
"Estimated taxes" means the amount that the taxpayer
estimates to be the taxpayer's combined tax liability under this
chapter and Chapter 5748. of the Revised Code for the current taxable
year.

(2)
"Tax liability" means the total taxes due for the taxable
year, after allowing any credit to which the taxpayer is entitled,
but prior to applying any estimated tax payment, withholding payment,
or refund from another tax year.

(3)
"Taxes paid" include payments of estimated taxes made under
division (C) of this section, taxes withheld from the taxpayer's
compensation, and tax refunds applied by the taxpayer in payment of
estimated taxes.

(4)
"Required installment" means a payment equal to twenty-five
per cent of the lesser of the following:

(a)
Ninety per cent of the tax liability for the taxable year;

(b)
One hundred per cent of the tax liability shown on the return of a
taxpayer for the preceding taxable year.

Division
(A)(4)(b) of this section applies only if the taxpayer filed a return
under section 5747.08 of the Revised Code for the preceding taxable
year and if the preceding taxable year was a twelve-month taxable
year.

(B)
Every taxpayer shall make declaration of estimated taxes for the
current taxable year, in the form that the tax commissioner shall
prescribe, if the amount payable as estimated taxes, less the amount
to be withheld from the taxpayer's compensation, is more than five
hundred dollars. For purposes of this section, taxes withheld from
compensation shall be considered as paid in equal amounts on each
payment date unless the taxpayer establishes the dates on which all
amounts were actually withheld, in which case the amounts withheld
shall be considered as paid on the dates on which the amounts were
actually withheld. Taxpayers filing joint returns pursuant to section
5747.08 of the Revised Code shall file joint declarations of
estimated taxes. A taxpayer may amend a declaration under rules
prescribed by the commissioner. A taxpayer having a taxable year of
less than twelve months shall make a declaration under rules
prescribed by the commissioner. The declaration of estimated taxes
for an individual under a disability shall be made and filed by the
person who is required to file the income tax return.

The
declaration of estimated taxes shall be filed on or before the
fifteenth day of April of each year or on or before the fifteenth day
of the fourth month after the taxpayer becomes subject to tax for the
first time.

Taxpayers
reporting on a fiscal year basis shall file a declaration on or
before the fifteenth day of the fourth month after the beginning of
each fiscal year or period.

The
declaration shall be filed upon a form prescribed by the commissioner
and furnished by or obtainable from the commissioner.

The
original declaration or any subsequent amendment may be increased or
decreased on or before any subsequent quarterly payment day as
provided in this section.

(C)
The required portion of the tax liability for the taxable year that
shall be paid through estimated taxes made payable to the treasurer
of state, including the application of tax refunds to estimated
taxes, and withholding on or before the applicable payment date shall
be as follows:

(1)
On or before the fifteenth day of the fourth month after the
beginning of the taxable year, twenty-two and one-half per cent of
the tax liability for the taxable year;

(2)
On or before the fifteenth day of the sixth month after the beginning
of the taxable year, forty-five per cent of the tax liability for the
taxable year;

(3)
On or before the fifteenth day of the ninth month after the beginning
of the taxable year, sixty-seven and one-half per cent of the tax
liability for the taxable year;

(4)
On or before the fifteenth day of the first month of the following
taxable year, ninety per cent of the tax liability for the taxable
year.

When
an amended return has been filed, the unpaid balance shown due on the
amended return shall be paid in equal installments on or before the
remaining payment dates.

On
or before the fifteenth day of the fourth month of the year following
that for which the declaration or amended declaration was filed, an
annual return shall be filed and any balance which may be due shall
be paid with the return in accordance with section 5747.08 of the
Revised Code.

(D)
In the case of any underpayment of estimated taxes, an interest
penalty may be added to the taxes for the tax year at the rate per
annum prescribed by section 5703.47 of the Revised Code upon the
amount of underpayment for the period of underpayment, unless the
underpayment is due to reasonable cause as described in division (E)
of this section. The amount of the underpayment shall be determined
as follows:

(1)
For the first payment of estimated taxes each year, the required
installment less the amount of taxes paid by the date prescribed for
that payment;

(2)
For the second payment of estimated taxes each year, the required
installment less the amount of taxes paid by the date prescribed for
that payment;

(3)
For the third payment of estimated taxes each year, the required
installment less the amount of taxes paid by the date prescribed for
that payment;

(4)
For the fourth payment of estimated taxes each year, the required
installment less the amount of taxes paid by the date prescribed for
that payment.

The
period of the underpayment shall run from the day the estimated
payment was required to be made to the date on which the payment is
made. For purposes of this section, a payment of estimated taxes on
or before any payment date shall be considered a payment of any
previous underpayment only to the extent the payment of estimated
taxes exceeds the amount of the payment presently required to be paid
to avoid any penalty.

The
tax commissioner may abate, in whole or in part, the interest penalty
imposed under division (D) of this section. Any such penalty imposed
shall be in lieu of any other interest charge or penalty imposed for
failure to file an estimated return and make estimated payments as
required by this section.

(E)
An underpayment of estimated taxes determined under division (D) of
this section shall be due to reasonable cause and the interest
penalty imposed by this section shall not be added to the taxes for
the tax year if
either

any

of
the following apply:

(1)
The amount of tax that was paid equals at least ninety per cent of
the tax liability for the current taxable year, determined by
annualizing the income received during the year up to the end of the
month immediately preceding the month in which the payment is due;

(2)
The amount of tax that was paid equals at least one hundred per cent
of the tax liability shown on the return of the taxpayer for the
preceding taxable year, provided that the immediately preceding
taxable year reflected a period of twelve months and the taxpayer
filed a return under section 5747.08 of the Revised Code for that
year
;

(3)
The taxpayer has not underpaid estimated taxes in any preceding
taxable year
.

The
tax commissioner may waive the requirement for filing a declaration
of estimated taxes for any class of taxpayers after finding that the
waiver is reasonable and proper in view of administrative costs and
other factors.

Sec.
5747.15.
(A)
In addition to any other penalty imposed by this chapter or Chapter
5703. of the Revised Code, the following penalties shall apply:

(1)
If a taxpayer, a qualifying entity, an electing pass-through entity,
or an employer required to file any report or return, including an
informational notice, report, or return, under this chapter fails to
make and file the report or return within the time prescribed,
including any extensions of time granted by the tax commissioner, a
penalty may be imposed not exceeding the greater of fifty dollars per
month or fraction of a month, not to exceed five hundred dollars, or
five per cent per month or fraction of a month, not to exceed fifty
per cent, of the sum of the taxes required to be shown on the report
or return, for each month or fraction of a month elapsing between the
due date, including extensions of the due date, and the date on which
filed.

(2)
If a taxpayer fails to pay any amount of tax required to be paid
under section 5733.41 or Chapters 5747. or 5748. of the Revised Code,
except estimated tax under section 5747.09 or 5747.43 of the Revised
Code, by the dates prescribed for payment, a penalty may be imposed
not exceeding twice the applicable interest charged under division
(G) of section 5747.08 of the Revised Code for the delinquent
payment.

(3)(a)
If an employer fails to pay any amount of tax imposed by section
5747.02 of the Revised Code and required to be paid under this
chapter by the dates prescribed for payment, a penalty may be imposed
not exceeding the sum of ten per cent of the delinquent payment plus
twice the interest charged under division (F)(5) of section 5747.07
of the Revised Code for the delinquent payment.

(b)
If a qualifying entity or an electing pass-through entity fails to
pay any amount of tax imposed by section 5733.41, 5747.38, or 5747.41
of the Revised Code and required to be paid under this chapter by the
dates prescribed for payment, a penalty may be imposed not exceeding
the sum of ten per cent of the delinquent payment plus twice the
applicable interest charged under division (G) of section 5747.08 of
the Revised Code for the delinquent payment.

(4)(a)
If an employer withholds from employees the tax imposed by section
5747.02 of the Revised Code and fails to remit the tax withheld to
the state as required by this chapter on or before the dates
prescribed for payment, a penalty may be imposed not exceeding fifty
per cent of the delinquent payment.

(b)
If a qualifying entity withholds any amount of tax imposed under
section 5747.41 of the Revised Code from an individual's qualifying
amount and fails to remit that amount to the state as required by
sections 5747.42 to 5747.453 of the Revised Code on or before the
dates prescribed for payment, a penalty may be imposed not exceeding
fifty per cent of the delinquent payment.

(5)
If a taxpayer, a qualifying entity, an electing pass-through entity,
or an employer files what purports to be a return required by this
chapter that does not contain information upon which the substantial
correctness of the return may be judged or contains information that
on its face indicates that the return is substantially incorrect, and
the filing of the return in that manner is due to a position that is
frivolous or a desire that is apparent from the return to delay or
impede the administration of the tax levied by section 5733.41,
5747.02, 5747.38, or 5747.41, or Chapter 5748. of the Revised Code, a
penalty of up to five hundred dollars may be imposed.

(6)
If a taxpayer, a qualifying entity, or an electing pass-through
entity makes a fraudulent attempt to evade the reporting or payment
of the tax required to be shown on any return required under this
chapter, a penalty may be imposed not exceeding the greater of one
thousand dollars or one hundred per cent of the tax required to be
shown on the return.

(7)
If any person makes a false or fraudulent claim for a refund under
this chapter, a penalty may be imposed not exceeding the greater of
one thousand dollars or one hundred per cent of the claim. The
penalty imposed under division (A)(7) of this section, any refund
issued on the claim, and interest on any refund from the date of the
refund, may be assessed under section 5747.13 of the Revised Code as
tax, penalty, or interest imposed under section 5733.41, 5747.02,
5747.38, or 5747.41 of the Revised Code, without regard to whether
the person making the claim is otherwise subject to the provisions of
this chapter or Chapter 5733. of the Revised Code, and without regard
to any time limitation for the assessment imposed by division (A) of
section 5747.13 of the Revised Code.

(B)
For purposes of this section, the taxes required to be shown on the
return shall be reduced by the amount of any part of the taxes paid
on or before the date, including any extensions of the date,
prescribed for filing the return.

(C)
Any penalty imposed under this section shall be in addition to all
other penalties imposed under this section. All or part of any
penalty imposed under this section may be abated by the commissioner.
All or part of any penalty imposed under this section may be abated
by the commissioner if the taxpayer, qualifying entity, electing
pass-through entity, or employer shows that the failure to comply
with the provisions of this chapter is due to reasonable cause and
not willful neglect.

(D)
Notwithstanding any other provision of this section or chapter, the
tax commissioner shall not impose any penalty or interest under this
chapter for the failure to file a return or report if no amount of
tax is due with the return or report.

Sec.
5747.43.
(A)
As used in this section:

(1)
"Estimated taxes" means the amount that a qualifying entity
or electing pass-through entity estimates to be the sum of its
liability under sections 5733.41 and 5747.41 or section 5747.38 of
the Revised Code for its current qualifying taxable year or taxable
year, as applicable.

(2)
"Tax liability" means the total of the taxes and
withholding taxes due under sections 5733.41 and 5747.41 of the
Revised Code or the tax due under section 5747.38 of the Revised Code
for the applicable taxable year prior to applying any estimated tax
payment or refund from another year.

(3)
"Taxes paid" includes payments of estimated taxes made
under division (C) of this section and tax refunds applied by the
qualifying entity or electing pass-through entity in payment of
estimated taxes.

(4)
"Required installment" means a payment equal to twenty-five
per cent of the lesser of the following:

(a)
Ninety per cent of the tax liability for the qualifying taxable year;

(b)
One hundred per cent of the tax liability shown on the return of a
qualifying entity or an electing pass-through entity for the
preceding taxable year.

Division
(A)(4)(b) of this section applies only if the entity filed a return
under section 5747.42 of the Revised Code for the preceding taxable
year and if the preceding taxable year was a twelve-month taxable
year.

(B)
In addition to the return required to be filed pursuant to section
5747.42 of the Revised Code, each qualifying entity or electing
pass-through entity that is subject to the tax imposed under section
5733.41 and to the withholding tax imposed by section 5747.41 of the
Revised Code or that is subject to the tax imposed under section
5747.38 of the Revised Code shall file an estimated tax return and
pay a portion of the entity's tax liability for its taxable year. The
portion of those taxes required to be paid, and the last day
prescribed for payment thereof, shall be as prescribed by divisions
(B)(1), (2), (3), and (4) of this section:

(1)
On or before the fifteenth day of the fourth month after the
beginning of the entity's taxable year, twenty-two and one-half per
cent of the entity's estimated tax liability for that taxable year;

(2)
On or before the fifteenth day of the sixth month after the beginning
of the entity's taxable year, forty-five per cent of the entity's
estimated tax liability for that taxable year;

(3)
On or before the fifteenth day of the ninth month after the beginning
of the entity's taxable year, sixty-seven and one-half per cent of
the entity's estimated tax liability for that taxable year;

(4)
On or before the fifteenth day of the first month of
the

the
entity's following taxable year, ninety per cent of the entity's
estimated tax liability for that taxable year.

Payments
of estimated taxes shall be made payable to the treasurer of state.

(C)
If a payment of estimated taxes is not paid in the full amount
required under division (B) of this section, a penalty may be added
to the taxes charged for the qualifying taxable year or taxable year,
as applicable, unless the underpayment is due to reasonable cause as
described in division (D) of this section. The penalty shall accrue
at the rate per annum prescribed by section 5703.47 of the Revised
Code upon the amount of underpayment from the day the estimated
payment was required to be made to the day the payment is made.

The
amount of the underpayment upon which the penalty shall accrue shall
be determined as follows:

(1)
For the first payment of estimated taxes each year, the required
installment less the amount of taxes paid by the date prescribed for
that payment;

(2)
For the second payment of estimated taxes each year, the required
installment less the amount of taxes paid by the date prescribed for
that payment;

(3)
For the third payment of estimated taxes each year, the required
installment less the amount of taxes paid by the date prescribed for
that payment;

(4)
For the fourth payment of estimated taxes each year, the required
installment less the amount of taxes paid by the date prescribed for
that payment.

For
the purposes of this section, a payment of estimated taxes on or
before any payment date shall be considered a payment of a previous
underpayment only to the extent the payment of estimated taxes
exceeds the amount of the payment presently required to be paid to
avoid any penalty.

The
tax commissioner may abate, in whole or in part, the penalty imposed
under division (C) of this section. Any such penalty is in lieu of
any other interest charge or penalty imposed for failure to file a
declaration of estimated tax report and make estimated payments as
required by this section.

(D)
An underpayment of estimated taxes determined under division (C) of
this section is due to reasonable cause if any of the following
apply:

(1)
The amount of tax that was paid equals at least ninety per cent of
the tax liability for the current taxable year, determined by
annualizing the income received during that year up to the end of the
month immediately preceding the month in which the payment is due;

(2)
The amount of tax liability that was paid equals at least ninety per
cent of the tax liability for the current taxable year;

(3)
The amount of tax liability that was paid equals at least one hundred
per cent of the tax liability shown on the return of the entity for
the preceding taxable year, provided that the immediately preceding
taxable year reflected a period of twelve months and the entity filed
a return under section 5747.42 of the Revised Code for that year
;

(4)
The taxpayer has not underpaid estimated taxes in any preceding
taxable year
.

(E)(1)
Divisions (B) and (C) of this section do not apply for a taxable year
if either of the following applies to the entity:

(a)
For the immediately preceding taxable year, the entity computes in
good faith and in a reasonable manner that the sum of its adjusted
qualifying amounts or its qualifying taxable income, as applicable,
is ten thousand dollars or less.

(b)
For the taxable year the entity computes in good faith and in a
reasonable manner that the sum of its adjusted qualifying amounts or
its qualifying taxable income, as applicable, is ten thousand dollars
or less.

(2)
Notwithstanding any other provision of Title LVII of the Revised Code
to the contrary, the entity shall establish by a preponderance of the
evidence that its computation of the adjusted qualifying amounts or
qualifying taxable income, as applicable, for the immediately
preceding taxable year and the taxable year was, in fact, made in
good faith and in a reasonable manner.

(F)
The tax commissioner may waive the requirement for filing a
declaration of estimated taxes for any class of qualifying entities
if the commissioner finds the waiver is reasonable and proper in view
of administrative costs and other factors.

(G)
Estimated taxes paid by a qualifying entity or an electing
pass-through entity may be applied to satisfy the entity's tax
liability under section 5733.41, 5747.38, or 5747.41 of the Revised
Code. Nothing in this section authorizes such an entity to apply
estimated taxes paid against more than one tax.

Sec.
5751.06.
(A)
Any taxpayer that fails to file a return or pay the full amount of
the tax due within the period prescribed therefor under this chapter
shall pay a penalty in an amount not exceeding the greater of fifty
dollars or ten per cent of the tax required to be paid for the tax
period.

(B)(1)
If any additional tax is found to be due, the tax commissioner may
impose an additional penalty of up to fifteen per cent on the
additional tax found to be due.

(2)
Any delinquent payments of the tax made after a taxpayer is notified
of an audit or a tax discrepancy by the commissioner is subject to
the penalty imposed by division (B) of this section. If an assessment
is issued under section 5751.09 of the Revised Code in connection
with such delinquent payments, the payments shall be credited to the
assessment.

(C)
If the tax commissioner notifies a person required to register under
section 5751.05 of the Revised Code of such requirement and of the
requirement to remit the tax due under this chapter, and the person
fails to so register and remit the tax within sixty days after such
notice, the tax commissioner may impose an additional penalty of up
to thirty-five per cent of the tax due. The penalty imposed under
this division is in addition to any other penalties imposed under
this section.

(D)
The tax commissioner may collect any penalty or interest imposed by
this section in the same manner as the tax imposed under this
chapter. Penalties and interest so collected shall be considered as
revenue arising from the tax imposed under this chapter.

(E)
The tax commissioner may abate all or a portion of any penalties
imposed under this section and may adopt rules governing such
abatements.

(F)
If any tax due is not timely paid in accordance with this chapter,
the taxpayer shall pay interest, calculated at the rate per annum
prescribed by section 5703.47 of the Revised Code, from the date the
tax payment was due to the date of payment or to the date an
assessment was issued, whichever occurs first.

(G)
The tax commissioner may impose a penalty of up to ten per cent for
any additional tax that is due under division (B)(2) of section
5751.051 of the Revised Code from a taxpayer incorrectly reporting
its taxable gross receipts.

(H)
If the tax commissioner discovers that a taxpayer has billed or
invoiced another person for the tax imposed under this chapter in
violation of division (B) of section 5751.02 of the Revised Code, the
tax commissioner shall notify the taxpayer of the violation in the
manner provided in section 5703.37 of the Revised Code and may impose
a penalty of up to five hundred dollars. If the taxpayer subsequently
bills or invoices a person for the tax imposed under this chapter,
the tax commissioner shall impose a penalty of five hundred dollars.

(I)
Notwithstanding any other provision of this section or chapter, the
tax commissioner shall not impose any penalty or interest under this
chapter for the failure to file a return if no amount of tax is due
with the return.

Section
2.
That
existing sections
323.121,
323.132, 323.31,
718.08
,
718.27
,
718.88
,
718.89, 4503.06
,
5703.42, 5703.52, 5703.60, 5703.70, 5717.01, 5717.011, 5717.02
,
5721.011
,
5726.21, 5739.02, 5745.04, 5747.09,
5747.15,

5747.43
,
and 5751.06

of the Revised Code are hereby repealed.

Section
3.
(A)
The amendment by this act of sections 5717.01, 5717.011, and 5717.02
of the Revised Code applies to appeals filed on or after December 31,
2026. The enactment by this act of section 5717.021 of the Revised
Code applies to petitioners or applicants who meet the criteria for
filing an appeal under that section on and after that date.

(B)
The amendment by this act of sections 718.08, 718.88, 5726.21,
5745.04, 5747.09, and 5747.43 of the Revised Code applies to taxable
years beginning on or after January 1, 2026.

(C)
The amendment by this act of section 5739.02 of the Revised Code
applies on and after the first day of the first month beginning after
the effective date of this section.

(D)
The amendment or enactment by this act of sections 718.27, 718.89,
5739.125, 5774.15, and 5751.06 of the Revised Code applies to returns
or reports required to be filed on or after the effective date of
that amendment or enactment.

(E)
The amendment by this act of sections 323.121, 323.132, and 5721.011
of the Revised Code applies to taxes charged and payable for tax
years ending on or after the effective date of this section. The
amendment by this act of section 4503.06 of the Revised Code applies
to taxes charged and payable for tax years beginning on or after the
effective date of this section.