Exempt firearms and ammunition from sales and use tax

As Introduced

136th
General Assembly

Regular
Session
S. B. No. 59

2025-2026

Senators Cutrona, Schaffer

Cosponsors: Senators Koehler,
Johnson, Wilkin

A
BILL

To
amend sections 107.036, 5739.02, 5747.98, and 5751.98 and to enact
sections 122.1712, 5747.053, and 5751.56 of the Revised Code
to
exempt from the sales and use tax the sale of certain firearms and
ammunition and to authorize refundable tax credits for small arms and
ammunition manufacturing projects.

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

Section
1.
That
sections 107.036, 5739.02, 5747.98, and 5751.98 be amended and
sections 122.1712, 5747.053, and 5751.56 of the Revised Code be
enacted to read as follows:

Sec.
107.036.
(A)
For each business incentive tax credit, the main operating
appropriations act shall contain a detailed estimate of the total
amount of credits that may be authorized in each year, an estimate of
the amount of credits expected to be claimed in each year, and an
estimate of the amount of credits expected to remain outstanding at
the end of the biennium. The governor shall include such estimates in
the state budget submitted to the general assembly pursuant to
section 107.03 of the Revised Code.

(B)
As used in this section, "business incentive tax credit"
means all of the following:

(1)
The job creation tax credit under section 122.17 of the Revised Code;

(2)
The job retention tax credit under section 122.171 of the Revised
Code;

(3)
The historic preservation tax credit under section 149.311 of the
Revised Code;

(4)
The motion picture and broadway theatrical production tax credit
under section 122.85 of the Revised Code;

(5)
The new markets tax credit under section 5725.33 of the Revised Code;

(6)
The research and development credit under section 166.21 of the
Revised Code;

(7)
The small business investment credit under section 122.86 of the
Revised Code;

(8)
The rural growth investment credit under section 122.152 of the
Revised Code;

(9)
The opportunity zone investment credit under section 122.84 of the
Revised Code;

(10)
The transformational mixed use development credit under section
122.09 of the Revised Code
;

(11)
The constitutional commerce credit under section 122.1712 of the
Revised Code
.

Sec.
122.1712.
(A)
As used in this section:

(1)
"Payroll" means the total taxable income paid by the
employer during the employer's taxable year, or during the calendar
year that includes the employer's tax period, to each employee
employed in the project. "Payroll" excludes amounts paid
before the day the taxpayer becomes eligible for the credit and
retirement or other benefits paid or contributed by the employer to
or on behalf of employees.

(2)
"Baseline payroll" means Ohio employee payroll, except that
the applicable measurement period is the twelve months immediately
preceding the date the tax credit authority approves the taxpayer's
application multiplied by the sum of one plus an annual pay increase
factor to be determined by the tax credit authority.

(3)
"Ohio employee payroll" means the amount of compensation
used to determine the withholding obligations in division (A) of
section 5747.06 of the Revised Code and paid by the employer during
the employer's taxable year, or during the calendar year that
includes the employer's tax period, to the following:

(a)
An employee employed in the project who is a resident of this state;

(b)
An employee employed at the project location who is not a resident
and whose compensation is not exempt from the tax imposed under
section 5747.02 of the Revised Code pursuant to a reciprocity
agreement with another state under division (A)(2) of section 5747.05
of the Revised Code.

"Ohio
employee payroll" excludes any such compensation to the extent
it is used to determine the credit under section 122.17 or 122.171 of
the Revised Code, and excludes amounts paid before the day the
taxpayer becomes eligible for the credit under this section.

(4)
"Excess payroll" means Ohio employee payroll minus baseline
payroll.

(5)
"Full-time equivalent employees" means the quotient
obtained by dividing the total number of hours for which employees
were compensated for employment in the project by two thousand
eighty. "Full-time equivalent employees" excludes hours
that are counted for a credit under section 122.17 or 122.171 of the
Revised Code.

(6)
"Metric evaluation date" means the date by which the
taxpayer must meet all of the commitments included in the agreement
with the tax credit authority under division (D) of this section.

(7)
"Resident" or "resident of this state" means an
individual who is a resident as defined in section 5747.01 of the
Revised Code.

(8)
"Reporting period" means a period corresponding to the
annual report required under division (D)(6) of this section.

(9)
"Small arms and ammunition manufacturing" means a business
activity which is or may be classified under the north American
industry classification system with code number 332992 or 332994.

(10)
"Small arms and ammunition manufacturing facility" and
"facility" mean a factory, mill, plant, warehouse,
building, or complex of buildings located in this state and used
primarily for small arms and ammunition manufacturing, including both
of the following:

(a)
The land on which the facility is located;

(b)
All machinery, equipment, and other tangible personal property
located at or within the facility and used in connection with the
operation of the facility.

(11)
"Tax credit authority" means the tax credit authority
created under section 122.17 of the Revised Code.

(B)(1)
The tax credit authority may make grants under this section in the
form of a refundable credit allowed against the tax imposed by
section 5747.02 or 5751.02 of the Revised Code. The credit shall be
claimed for the taxable years or tax periods specified in the
taxpayer's agreement with the tax credit authority under division (D)
of this section. The credit shall be claimed in the order required
under section 5747.98 or 5751.98 of the Revised Code, as applicable.
Except as provided in division (B)(2) of this section, the amount of
the credit available for a taxable year or for a calendar year that
includes a tax period equals the excess payroll for that year
multiplied by the percentage specified in the agreement with the tax
credit authority.

(2)
The tax credit authority shall not issue credits under this section
totaling more than ten million dollars in a fiscal year.

(3)
This credit shall be known as the constitutional commerce credit.

(C)
A taxpayer or potential taxpayer who proposes a small arms and
ammunition manufacturing facility project to create new jobs in this
state may apply to the tax credit authority to enter into an
agreement for a tax credit under this section.

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

(1)
The taxpayer's project will increase payroll;

(2)
The taxpayer's project is economically sound and will benefit the
people of this state by increasing opportunities for employment and
strengthening the economy of this state;

(3)
Receiving the tax credit is a major factor in the taxpayer's decision
to go forward with the project.

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

(1)
A detailed description of the small arms and ammunition manufacturing
facility project that is the subject of the agreement, including the
taxpayer's capital investment in the project which shall not be less
than two million dollars;

(2)
The term of the tax credit, which shall not exceed fifteen years, and
the first taxable year, or first tax period, for which the credit may
be claimed;

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

(4)
The percentage, as determined by the tax credit authority, of excess
payroll that will be allowed as the amount of the credit for each
taxable year or tax period;

(5)
The pay increase factor to be applied to the taxpayer's baseline
payroll;

(6)
A requirement that the taxpayer annually shall report to the director
of development full-time equivalent employees, payroll, Ohio employee
payroll, investment, and other information the director needs to
perform the director's duties under this section;

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

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

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

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

(F)
Financial statements and other information submitted to the
department of development or the tax credit authority by an applicant
or recipient of a tax credit under this section, and any information
taken for any purpose from such statements or information, are not
public records subject to section 149.43 of the Revised Code.
However, the chairperson of the authority may make use of the
statements and other information for purposes of issuing public
reports or in connection with court proceedings concerning tax credit
agreements under this section. Upon the request of the tax
commissioner, the chairperson of the authority shall provide to the
commissioner any statement or information submitted by an applicant
or recipient of a tax credit in connection with the credit. The
commissioner shall preserve the confidentiality of the statement or
information.

(G)
A taxpayer claiming a credit under this section shall submit to the
tax commissioner a copy of the director of development's certificate
of verification issued under division (D)(7) of this section with the
taxpayer's tax report or return for the taxable year or tax period.
Failure to submit a copy of the certificate with the report or return
does not invalidate a claim for a credit if the taxpayer submits a
copy of the certificate to the commissioner within the time
prescribed by section 5703.0510 of the Revised Code or within thirty
days after the commissioner requests it.

(H)
The director of development, after consultation with the tax
commissioner and in accordance with Chapter 119. of the Revised Code,
shall adopt rules necessary to implement this section. The rules may
provide for recipients of tax credits under this section to be
charged fees to cover administrative costs of the tax credit program.
The fees collected shall be credited to the tax incentives operating
fund created in section 122.174 of the Revised Code.

(I)
For purposes of this section, a taxpayer may include a pass-through
entity. A pass-through entity may elect to pass the credit received
under this section against the tax imposed under section 5747.02 of
the Revised Code through to the persons to whom the income or profit
of the entity is distributed. The election shall be made on the
annual report required under division (D)(6) of this section. The
election applies to and is irrevocable for the credit for which the
report is submitted. If the election is made, the credit shall be
apportioned among those persons in the same proportions as those in
which the income or profit is distributed.

(J)(1)
If the director of development determines that a taxpayer who has
received a credit under this section is not complying with the
requirements of the agreement, the director shall notify the tax
credit authority of the noncompliance. After receiving such a notice,
and after giving the taxpayer an opportunity to explain the
noncompliance, the tax credit authority may require the taxpayer to
refund to this state a portion of the credit in accordance with the
following:

(a)
If the taxpayer fails to comply with the requirement under division
(D)(3) of this section, an amount determined in accordance with the
following:

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

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

(b)
If, on the metric evaluation date, the taxpayer fails to
substantially meet the job creation, payroll, or investment
requirements included in the agreement, an amount determined at the
discretion of the authority;

(c)
If the taxpayer fails to substantially maintain the number of new
full-time equivalent employees or amount of payroll required under
the agreement at any time during the term of the agreement after the
metric evaluation date, an amount determined at the discretion of the
authority.

(2)
If a taxpayer files for bankruptcy and fails as described in division
(J)(1)(a), (b), or (c) of this section, the director may immediately
commence an action to recoup an amount not exceeding one hundred per
cent of the sum of any credits received by the taxpayer under this
section.

(3)
In determining the portion of the tax credit to be refunded to this
state, the tax credit authority shall consider the effect of market
conditions on the taxpayer's project and whether the taxpayer
continues to maintain other operations in this state. After making
the determination, the authority shall certify the amount to be
refunded to the tax commissioner. The commissioner shall make an
assessment for that amount against the taxpayer under Chapter 5747.
or 5751. of the Revised Code. The time limitations on assessments
under those chapters do not apply to an assessment under this
division, but the commissioner shall make the assessment within one
year after the date the authority certifies to the commissioner the
amount to be refunded.

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.

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

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

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

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

For
purposes of division (B)(35) of this section, "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.

(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" has the same meaning as in division (B)(35) of this
section.

(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.

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

(p)
To provide the thing transferred to the owner or lessee of a motor
vehicle that is being repaired or serviced, if the thing transferred
is a rented motor vehicle and the purchaser is reimbursed for the
cost of the rented motor vehicle by a manufacturer, warrantor, or
provider of a maintenance, service, or other similar contract or
agreement, with respect to the motor vehicle that is being repaired
or serviced;

(q)
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) 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) 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) 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)
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) 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) of this section.

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

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

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

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

(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 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.

(65)
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.

(66)
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.

(67)
Sales of qualifying firearms and ammunition.

As
used in division (B)(67) of this section:

(a)
"Qualifying firearm" means a portable firearm, including a
rifle, shotgun, pistol, or revolver, that is designed to be carried
and operated by a single person, and excludes both of the following:

(i)
Any such firearm, except in the case of a shotgun, the barrel of
which has an internal diameter larger than fifty caliber;

(ii)
A shotgun, the barrel of which has an internal diameter larger than
ten gauge.

(b)
"Ammunition" means ammunition designed for use in a
qualifying firearm.

(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.
5747.053.
A
refundable credit is allowed against a taxpayer's aggregate tax
liability under section 5747.02 of the Revised Code for a taxpayer or
the taxpayer owners of a pass-through entity that has been issued a
tax credit certificate under division (D)(7) of section 122.1712 of
the Revised Code. The credit shall be claimed for the taxable year
stated in the certificate and equals the amount stated in the
certificate. The credit shall be claimed in the order required under
section 5747.98 of the Revised Code. If the credit amount exceeds the
tax otherwise due under section 5747.02 of the Revised Code after
deducting all other credits in that order, the excess shall be
refunded.

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

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

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

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

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

The
campaign contribution credit under section 5747.29 of the Revised
Code;

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

The
joint filing credit under division
(G)
(E)

of section 5747.05 of the Revised Code;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The
refundable credit for film and theater capital improvement projects
under section 5747.67 of the Revised Code;

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

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

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

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

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

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

The
refundable constitutional commerce credit under section 5747.053 of
the Revised Code
.

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

Sec.
5751.56.
A
refundable credit is allowed against the tax imposed by section
5751.02 of the Revised Code for any taxpayer that has been issued a
tax credit certificate under division (D)(7) of section 122.1712 of
the Revised Code. The credit shall be claimed for the tax period
stated in the certificate and equals the amount stated in the
certificate. The credit shall be claimed in the order required under
section 5751.98 of the Revised Code. If the credit amount exceeds the
tax otherwise due under section 5751.02 of the Revised Code after
deducting all other credits in that order, the excess shall be
refunded.

Sec.
5751.98.
(A)
To provide a uniform procedure for calculating the amount of tax due
under this chapter, a taxpayer shall claim any credits to which it is
entitled in the following order:

The
nonrefundable jobs retention credit under division (B) of section
5751.50 of the Revised Code;

The
nonrefundable credit for qualified research expenses under division
(B) of section 5751.51 of the Revised Code;

The
nonrefundable credit for a borrower's qualified research and
development loan payments under division (B) of section 5751.52 of
the Revised Code;

The
nonrefundable credit for calendar years 2010 to 2029 for unused net
operating losses under division (B) of section 5751.53 of the Revised
Code;

The
refundable motion picture and broadway theatrical production credit
under section 5751.54 of the Revised Code;

The
refundable credit for film and theater capital improvement projects
under section 5751.55 of the Revised Code;

The
refundable jobs creation credit or job retention credit under
division (A) of section 5751.50 of the Revised Code;

The
refundable credit for calendar year 2030 for unused net operating
losses under division (C) of section 5751.53 of the Revised Code
;

The
refundable constitutional commerce credit under section 5751.56 of
the Revised Code
.

(B)
For any credit except the refundable credits enumerated in this
section, the amount of the credit for a tax period shall not exceed
the tax due after allowing for any other credit that precedes it in
the order required under this section. Any excess amount of a
particular credit may be carried forward if authorized under the
section creating the credit.

Section
2.
That
existing sections 107.036, 5739.02, 5747.98, and 5751.98 of the
Revised Code are hereby repealed.

Section
3.
The
amendment by this act of section 5739.02 of the Revised Code applies
beginning on the first day of the first month beginning on or after
the effective date of this section.