Sec. 5739.02. For the purpose of providing revenue with
| 9 |
which to meet the needs of the state, for the use of the general
| 10 |
revenue
fund of the state, for the purpose of securing a thorough
| 11 |
and
efficient system of common schools throughout the state, for
| 12 |
the purpose of affording revenues, in addition to those from
| 13 |
general property taxes, permitted under constitutional
| 14 |
limitations, and from other sources, for the support of local
| 15 |
governmental functions, and for the purpose of reimbursing the
| 16 |
state for the expense of administering this chapter, an excise
tax
| 17 |
is hereby levied on each retail sale made in this state.
| 18 |
(2) In the case of the lease or rental, with a fixed term of
| 24 |
more than thirty days or an indefinite term with a minimum period
| 25 |
of more than thirty days, of any motor vehicles designed by the
| 26 |
manufacturer to carry a load of not more than one ton, watercraft,
| 27 |
outboard motor, or aircraft, or of any tangible personal property,
| 28 |
other than motor vehicles designed by the manufacturer to carry a
| 29 |
load of more than one ton, to be used by the lessee or renter
| 30 |
primarily for business purposes, the tax shall be collected by the
| 31 |
vendor at the time the lease or rental is consummated and shall be
| 32 |
calculated by the vendor on the basis of the total amount to be
| 33 |
paid by the lessee or renter under the lease agreement. If the
| 34 |
total amount of the consideration for the lease or rental includes
| 35 |
amounts that are not calculated at the time the lease or rental is
| 36 |
executed, the tax shall be calculated and collected by the vendor
| 37 |
at the time such amounts are billed to the lessee or renter. In
| 38 |
the case of an open-end lease or rental, the tax shall be
| 39 |
calculated by the vendor on the basis of the total amount to be
| 40 |
paid during the initial fixed term of the lease or rental, and for
| 41 |
each subsequent renewal period as it comes due. As used in this
| 42 |
division, "motor vehicle" has the same meaning as in section
| 43 |
4501.01 of the Revised Code, and "watercraft" includes an outdrive
| 44 |
unit attached to the watercraft.
| 45 |
A lease with a renewal clause and a termination penalty or
| 46 |
similar provision that applies if the renewal clause is not
| 47 |
exercised is presumed to be a sham transaction. In such a case,
| 48 |
the tax shall be calculated and paid on the basis of the entire
| 49 |
length of the lease period, including any renewal periods, until
| 50 |
the termination penalty or similar provision no longer applies.
| 51 |
The taxpayer shall bear the burden, by a preponderance of the
| 52 |
evidence, that the transaction or series of transactions is not a
| 53 |
sham transaction.
| 54 |
(6) Sales of motor fuel upon receipt, use,
distribution, or
| 81 |
sale of which in this state a tax is imposed by
the law of this
| 82 |
state, but this exemption shall not apply to the
sale of motor
| 83 |
fuel on which a refund of the tax is
allowable under division (A)
| 84 |
of section
5735.14 of the Revised Code; and the tax
commissioner
| 85 |
may deduct
the amount of tax levied by this section
applicable to
| 86 |
the price
of motor fuel when granting a
refund of motor fuel tax
| 87 |
pursuant to division (A) of
section 5735.14 of
the Revised Code
| 88 |
and shall cause the amount
deducted to be paid
into the general
| 89 |
revenue fund of this state;
| 90 |
(7) Sales of natural gas by a natural gas company, of water
| 91 |
by a water-works
company, or of steam by a heating company, if in
| 92 |
each case the
thing sold is delivered to consumers through pipes
| 93 |
or
conduits, and all sales of communications services by a
| 94 |
telegraph company, all terms as defined in section
5727.01 of
the
| 95 |
Revised Code, and sales of electricity delivered through wires;
| 96 |
(8) Casual sales by a person, or auctioneer employed
directly
| 97 |
by the person to conduct such sales, except as to
such
sales of
| 98 |
motor vehicles, watercraft or outboard motors required to
be
| 99 |
titled under section 1548.06 of the Revised Code, watercraft
| 100 |
documented with the United States coast guard, snowmobiles, and
| 101 |
all-purpose vehicles as defined in section 4519.01 of the Revised
| 102 |
Code;
| 103 |
(9)(a) Sales of services or tangible personal property, other
| 104 |
than motor vehicles, mobile homes, and manufactured
homes, by
| 105 |
churches, organizations exempt from taxation under
section
| 106 |
501(c)(3) of the Internal Revenue
Code of 1986, or
nonprofit
| 107 |
organizations operated exclusively for charitable
purposes as
| 108 |
defined in division (B)(12) of this section, provided
that the
| 109 |
number of days on which such tangible personal property
or
| 110 |
services, other than items never subject to the tax, are sold
does
| 111 |
not exceed six in any calendar year, except as otherwise provided
| 112 |
in division (B)(9)(b) of this section. If the number of days
on
| 113 |
which such sales are made exceeds six in any calendar year,
the
| 114 |
church or organization shall be considered to be engaged in
| 115 |
business and all subsequent sales by it shall be subject to the
| 116 |
tax. In counting the number of days, all sales by groups within
a
| 117 |
church or within an organization shall be considered to be
sales
| 118 |
of that church or organization.
| 119 |
(b) The limitation on the number of days on which tax-exempt
| 120 |
sales may be made by a church or organization under division
| 121 |
(B)(9)(a) of this section does not apply to sales made by
student
| 122 |
clubs and other groups of students of a primary
or
secondary
| 123 |
school, or a parent-teacher
association,
booster group, or similar
| 124 |
organization that raises
money to
support or fund curricular or
| 125 |
extracurricular activities
of a
primary or secondary school.
| 126 |
(12) Sales of tangible personal property or services to
| 136 |
churches, to organizations exempt from taxation under section
| 137 |
501(c)(3) of the Internal Revenue Code of 1986, and to any other
| 138 |
nonprofit organizations operated exclusively for charitable
| 139 |
purposes in this state, no part of the net income of which inures
| 140 |
to the benefit of any private shareholder or individual, and no
| 141 |
substantial part of the activities of which consists of carrying
| 142 |
on propaganda or otherwise attempting to influence legislation;
| 143 |
sales to offices administering one or more homes for the aged or
| 144 |
one or more hospital facilities exempt under section 140.08 of
the
| 145 |
Revised Code; and sales to organizations described in
division (D)
| 146 |
of section 5709.12 of the Revised Code.
| 147 |
"Charitable purposes" means the relief of poverty; the
| 148 |
improvement of health through the alleviation of illness,
disease,
| 149 |
or injury; the operation of an organization
exclusively
for the
| 150 |
provision of professional, laundry, printing, and
purchasing
| 151 |
services to hospitals or charitable institutions;
the
operation of
| 152 |
a home for the aged, as defined in section 5701.13
of the Revised
| 153 |
Code; the operation of a radio or television
broadcasting station
| 154 |
that is licensed by the federal
communications commission as a
| 155 |
noncommercial educational radio or
television station; the
| 156 |
operation of a nonprofit animal
adoption service or a county
| 157 |
humane society; the promotion of
education by an institution of
| 158 |
learning that maintains a faculty of
qualified instructors,
| 159 |
teaches regular continuous courses of study, and
confers a
| 160 |
recognized diploma upon completion of a specific
curriculum; the
| 161 |
operation of a parent-teacher association,
booster group, or
| 162 |
similar organization primarily engaged in the
promotion and
| 163 |
support of the curricular or extracurricular
activities of a
| 164 |
primary or secondary school; the operation of a
community or area
| 165 |
center in which presentations in music,
dramatics, the arts, and
| 166 |
related fields are made in order to
foster public interest and
| 167 |
education therein; the production of
performances in music,
| 168 |
dramatics, and the arts; or the
promotion of education by an
| 169 |
organization engaged in carrying on research
in, or the
| 170 |
dissemination of, scientific and technological
knowledge and
| 171 |
information primarily for the public.
| 172 |
(13) Building and construction materials and services sold
to
| 178 |
construction contractors for incorporation into a structure or
| 179 |
improvement to real property under a construction contract with
| 180 |
this state or a political subdivision
of this state, or
with the
| 181 |
United
States government or any of its agencies; building
and
| 182 |
construction materials and services sold to construction
| 183 |
contractors for incorporation into a structure or improvement to
| 184 |
real property that are accepted for ownership by this
state or
any
| 185 |
of its political subdivisions, or by the United States
government
| 186 |
or any of its agencies at the time of completion of
the
structures
| 187 |
or improvements; building and construction
materials
sold to
| 188 |
construction contractors for incorporation into
a
horticulture
| 189 |
structure or livestock structure for a person
engaged
in the
| 190 |
business of horticulture or producing livestock;
building
| 191 |
materials and services sold to a construction contractor
for
| 192 |
incorporation into a house of public worship or religious
| 193 |
education, or a building used exclusively for charitable purposes
| 194 |
under a construction contract with an organization whose purpose
| 195 |
is as described in division (B)(12) of this section; building
| 196 |
materials and
services sold to a construction contractor for
| 197 |
incorporation into a building
under a construction contract with
| 198 |
an organization exempt from taxation under
section 501(c)(3) of
| 199 |
the Internal Revenue
Code of 1986 when the building is to be used
| 200 |
exclusively for the
organization's exempt purposes; building and
| 201 |
construction materials sold for incorporation into the original
| 202 |
construction of a sports facility under section 307.696 of the
| 203 |
Revised Code; and building and construction materials and
services
| 204 |
sold to a construction contractor for incorporation into
real
| 205 |
property outside this state if such materials and services,
when
| 206 |
sold to a construction contractor in the state in which the
real
| 207 |
property is located for incorporation into real property in
that
| 208 |
state, would be exempt from a tax on sales levied by that
state;
| 209 |
(15) Sales to persons primarily engaged in any of the
| 214 |
activities
mentioned in division (B)(42)(a) or (g) of this
| 215 |
section, to persons engaged in making retail sales, or to
persons
| 216 |
who purchase for sale from a manufacturer tangible
personal
| 217 |
property that was produced by the manufacturer in
accordance with
| 218 |
specific designs provided by the purchaser, of
packages, including
| 219 |
material, labels, and parts for packages, and
of
machinery,
| 220 |
equipment, and material for use primarily in
packaging
tangible
| 221 |
personal property produced for sale, including
any machinery,
| 222 |
equipment, and supplies used to make labels or
packages, to
| 223 |
prepare packages
or products for labeling, or to
label packages or
| 224 |
products, by or on the order
of the person doing
the packaging, or
| 225 |
sold at retail.
"Packages"
includes bags,
baskets, cartons,
| 226 |
crates, boxes, cans, bottles,
bindings,
wrappings, and other
| 227 |
similar devices and containers, but does not include motor
| 228 |
vehicles or bulk tanks, trailers, or similar devices attached to
| 229 |
motor vehicles. "Packaging" means placing in a package. Division
| 230 |
(B)(15) of this section does not apply to persons engaged in
| 231 |
highway transportation for hire.
| 232 |
(17) Sales to persons engaged in farming, agriculture,
| 238 |
horticulture, or floriculture, of tangible personal property for
| 239 |
use or consumption directly in the production by farming,
| 240 |
agriculture, horticulture, or floriculture of other tangible
| 241 |
personal property for use or consumption directly in the
| 242 |
production of tangible personal property for sale by farming,
| 243 |
agriculture, horticulture, or floriculture; or material and parts
| 244 |
for incorporation into any such tangible personal property for
use
| 245 |
or consumption in production; and of tangible personal
property
| 246 |
for such use or consumption in the conditioning or
holding of
| 247 |
products produced by and for such use, consumption, or
sale by
| 248 |
persons engaged in farming, agriculture, horticulture, or
| 249 |
floriculture, except where such property is incorporated into real
| 250 |
property;
| 251 |
(18) Sales of drugs for a human being that may be dispensed
| 252 |
only pursuant to a prescription;
insulin as recognized in the
| 253 |
official
United States pharmacopoeia; urine and blood testing
| 254 |
materials
when used by diabetics or persons with hypoglycemia to
| 255 |
test for
glucose or acetone; hypodermic syringes and needles when
| 256 |
used by
diabetics for insulin injections; epoetin alfa when
| 257 |
purchased for
use in
the treatment of persons with medical
| 258 |
disease;
hospital
beds when purchased
by hospitals, nursing homes,
| 259 |
or other medical facilities;
and medical oxygen and medical
| 260 |
oxygen-dispensing
equipment when purchased by hospitals, nursing
| 261 |
homes, or other medical facilities;
| 262 |
(22) Sales of services provided by the state or any of its
| 278 |
political subdivisions, agencies, instrumentalities,
institutions,
| 279 |
or authorities, or by governmental entities of the
state or any of
| 280 |
its political subdivisions, agencies,
instrumentalities,
| 281 |
institutions, or authorities;
| 282 |
(24) Sales to persons engaged in the preparation of eggs
for
| 286 |
sale of tangible personal property used or consumed directly
in
| 287 |
such preparation, including such tangible personal property
used
| 288 |
for cleaning, sanitizing, preserving, grading, sorting, and
| 289 |
classifying by size; packages, including material and parts for
| 290 |
packages, and machinery, equipment, and material for use in
| 291 |
packaging eggs for sale; and handling and transportation
equipment
| 292 |
and parts therefor, except motor vehicles licensed to
operate on
| 293 |
public highways, used in intraplant or interplant
transfers or
| 294 |
shipment of eggs in the process of preparation for
sale, when the
| 295 |
plant or plants within or between which such
transfers or
| 296 |
shipments occur are operated by the same person.
"Packages"
| 297 |
includes containers, cases, baskets, flats, fillers,
filler flats,
| 298 |
cartons, closure materials, labels, and labeling
materials, and
| 299 |
"packaging" means placing therein.
| 300 |
(32) The sale, lease, repair, and maintenance of, parts
for,
| 333 |
or items attached to or incorporated in, motor
vehicles
that
are
| 334 |
primarily used for transporting tangible personal property
| 335 |
belonging to others by
a
person engaged in highway transportation
| 336 |
for hire, except for packages and packaging used for the
| 337 |
transportation of tangible personal property;
| 338 |
(34) Sales to a telecommunications service vendor, mobile
| 344 |
telecommunications service vendor, or satellite broadcasting
| 345 |
service vendor of
tangible personal property and services used
| 346 |
directly and
primarily in transmitting, receiving, switching, or
| 347 |
recording any
interactive, one- or two-way electromagnetic
| 348 |
communications, including
voice, image, data, and information,
| 349 |
through the use of any
medium, including, but not limited to,
| 350 |
poles, wires, cables,
switching equipment, computers, and record
| 351 |
storage devices and
media, and component parts for the tangible
| 352 |
personal property.
The exemption provided in this division
shall
| 353 |
be in lieu of all other exemptions under division (B)(42)(a) of
| 354 |
this
section to which the vendor may otherwise be entitled, based
| 355 |
upon the use of
the
thing purchased in providing the
| 356 |
telecommunications, mobile telecommunications, or satellite
| 357 |
broadcasting service.
| 358 |
(b) Sales to direct marketing vendors of preliminary
| 364 |
materials such as photographs, artwork, and typesetting that will
| 365 |
be used in printing advertising material; of printed matter that
| 366 |
offers free merchandise or chances to win sweepstake prizes and
| 367 |
that is mailed to potential customers with advertising material
| 368 |
described in division (B)(35)(a) of this section; and of
equipment
| 369 |
such as telephones, computers, facsimile machines, and
similar
| 370 |
tangible personal property primarily used to accept
orders for
| 371 |
direct marketing retail sales.
| 372 |
For purposes of division (B)(35) of this section,
"direct
| 376 |
marketing" means the method of selling where consumers order
| 377 |
tangible personal property by United States mail, delivery
| 378 |
service, or telecommunication and the vendor delivers or ships
the
| 379 |
tangible personal property sold to the consumer from a
warehouse,
| 380 |
catalogue distribution center, or similar fulfillment
facility by
| 381 |
means of the United States mail, delivery service, or
common
| 382 |
carrier.
| 383 |
(c) Items of property that are
attached to or incorporated
in
| 396 |
motor racing vehicles, including
engines, chassis, and all
other
| 397 |
components of the vehicles, and
all spare, replacement, and
| 398 |
rebuilt parts or components of the
vehicles; except not including
| 399 |
tires, consumable fluids, paint,
and accessories consisting of
| 400 |
instrumentation sensors and
related items added to the vehicle to
| 401 |
collect and transmit data
by means of telemetry and other forms of
| 402 |
communication.
| 403 |
(40) Sales of tangible personal property and services to
a
| 407 |
provider of electricity used or consumed directly and primarily in
| 408 |
generating, transmitting, or distributing electricity for use by
| 409 |
others,
including property that is or is to be incorporated into
| 410 |
and will become
a part of the consumer's production, transmission,
| 411 |
or distribution
system and that retains its classification as
| 412 |
tangible personal
property after incorporation; fuel or power used
| 413 |
in the
production, transmission, or distribution of electricity;
| 414 |
and
tangible personal property and services used in the repair and
| 415 |
maintenance of the production, transmission, or distribution
| 416 |
system, including only those motor vehicles as are specially
| 417 |
designed and equipped for such use. The exemption provided in
this
| 418 |
division shall be in lieu of all other exemptions in division
| 419 |
(B)(42)(a) of this section to
which a provider
of electricity may
| 420 |
otherwise be entitled based on the use of the
tangible
personal
| 421 |
property or service purchased in generating,
transmitting, or
| 422 |
distributing electricity.
| 423 |
(a) To incorporate the thing transferred as a material or a
| 430 |
part into tangible personal property to be produced for sale by
| 431 |
manufacturing, assembling, processing, or refining; or to use or
| 432 |
consume the thing transferred directly in producing tangible
| 433 |
personal property for sale by mining, including, without
| 434 |
limitation, the extraction from the earth of all substances that
| 435 |
are classed geologically as minerals, production of crude oil and
| 436 |
natural gas, farming, agriculture, horticulture, or floriculture,
| 437 |
or directly in the rendition of a public utility service, except
| 438 |
that the sales tax levied by this section shall be collected upon
| 439 |
all meals, drinks, and food for human consumption sold when
| 440 |
transporting persons. Persons engaged in rendering farming,
| 441 |
agricultural, horticultural, or floricultural services, and
| 442 |
services in the exploration for, and production of, crude oil and
| 443 |
natural gas, for others are deemed engaged directly in farming,
| 444 |
agriculture, horticulture, and floriculture, or exploration for,
| 445 |
and production of, crude oil and natural gas. This paragraph does
| 446 |
not exempt from "retail sale" or "sales at retail" the sale of
| 447 |
tangible personal property that is to be incorporated into a
| 448 |
structure or improvement to real property.
| 449 |
(h) To use the benefit of a warranty, maintenance or service
| 468 |
contract, or similar agreement, as described in division (B)(7) of
| 469 |
section 5739.01 of the Revised Code, to repair or maintain
| 470 |
tangible personal property, if all of the property that is the
| 471 |
subject of the warranty, contract, or agreement would not be
| 472 |
subject to the tax imposed by this section;
| 473 |
(j) To use or consume the thing transferred primarily in
| 476 |
storing, transporting, mailing, or otherwise handling purchased
| 477 |
sales inventory in a warehouse, distribution center, or similar
| 478 |
facility when the inventory is primarily distributed outside this
| 479 |
state to retail stores of the person who owns or controls the
| 480 |
warehouse, distribution center, or similar facility, to retail
| 481 |
stores of an affiliated group of which that person is a member, or
| 482 |
by means of direct marketing. This division does not apply to
| 483 |
motor vehicles registered for operation on the public highways. As
| 484 |
used in this division, "affiliated group" has the same meaning as
| 485 |
in division (B)(3)(e) of section 5739.01 of the Revised Code and
| 486 |
"direct marketing" has the same meaning as in division (B)(35) of
| 487 |
this section.
| 488 |
(43) Sales conducted through a coin operated device that
| 509 |
activates vacuum equipment or equipment that dispenses water,
| 510 |
whether or not in combination with soap or other cleaning agents
| 511 |
or wax, to the consumer for the consumer's use on the premises in
| 512 |
washing, cleaning, or waxing a motor vehicle, provided no other
| 513 |
personal property or personal service is provided as part of the
| 514 |
transaction.
| 515 |
(44) Sales of replacement and modification parts for engines,
| 516 |
airframes, instruments, and interiors in, and paint for, aircraft
| 517 |
used primarily in a fractional aircraft ownership program, and
| 518 |
sales of services for the repair, modification, and maintenance of
| 519 |
such aircraft, and machinery, equipment, and supplies primarily
| 520 |
used to provide those services.
| 521 |
(45) Sales of telecommunications service that is used
| 522 |
directly and primarily to perform the functions of a call center.
| 523 |
As used in this division, "call center" means any physical
| 524 |
location where telephone calls are placed or received in high
| 525 |
volume for the purpose of making sales, marketing, customer
| 526 |
service, technical support, or other specialized business
| 527 |
activity, and that employs at least fifty individuals that engage
| 528 |
in call center activities on a full-time basis, or sufficient
| 529 |
individuals to fill fifty full-time equivalent positions.
| 530 |
(ii) "Qualified direct selling entity" means an entity
| 549 |
selling to direct sellers at the time the entity enters into a tax
| 550 |
credit agreement with the tax credit authority pursuant to section
| 551 |
122.17 of the Revised Code, provided that the agreement was
| 552 |
entered into on or after January 1, 2007. Neither contingencies
| 553 |
relevant to the granting of, nor later developments with respect
| 554 |
to, the tax credit shall impair the status of the qualified direct
| 555 |
selling entity under division (B)(48) of this section after
| 556 |
execution of the tax credit agreement by the tax credit authority.
| 557 |
(49) Sales of materials, parts, equipment, or engines used
| 562 |
in
the repair or maintenance of aircraft or avionics systems of
| 563 |
such
aircraft, and sales of repair, remodeling, replacement, or
| 564 |
maintenance
services in this state
performed on aircraft or
on | 565 |
an aircraft's avionics, engine, or component materials or
parts. | 566 |
As used in division (B)(49) of this section, "aircraft"
means | 567 |
aircraft of more than six thousand pounds maximum certified
| 568 |
takeoff weight or used exclusively in general aviation.
| 569 |
(50) Sales of full flight simulators that are used for
pilot
| 570 |
or flight-crew training, sales of repair or replacement parts or
| 571 |
components, and sales of repair or maintenance services for such
| 572 |
full flight simulators. "Full flight simulator" means a
replica
| 573 |
of a specific type, or make, model, and series of aircraft
| 574 |
cockpit.
It includes the assemblage of equipment and computer
| 575 |
programs
necessary to represent aircraft operations in ground and
| 576 |
flight
conditions, a visual system providing an
| 577 |
out-of-the-cockpit
view,
and a system that provides cues at
| 578 |
least equivalent to those
of a
three-degree-of-freedom motion
| 579 |
system, and has the full range
of
capabilities of the systems
| 580 |
installed in the device as
described
in appendices A and B of
| 581 |
part 60 of chapter 1 of title
14 of the
Code of Federal
| 582 |
Regulations.
| 583 |
(iii) "Personal computer system" means all computer hardware | 611 |
and software sold together in the same retail transaction, | 612 |
including a central processing unit, storage drive, display | 613 |
monitor, keyboard, random access memory, and printer. "Personal | 614 |
computer
system" does not include minicomputers, mainframe | 615 |
computers,
network servers, local area network hubs, routers and | 616 |
cabling,
hardware word processors, personal digital assistants, | 617 |
graphical
calculators, hand-held computers, game consoles, | 618 |
internet
television devices, network operating systems, | 619 |
multiple-user
licensed software and hardware, separate sales or | 620 |
use of internal
or external components, or separate sales of | 621 |
add-on components. | 622 |
(E) The tax collected by the vendor from the consumer under
| 635 |
this chapter is not part of the price, but is a tax collection for
| 636 |
the benefit of the state, and of counties levying an additional
| 637 |
sales tax pursuant to section 5739.021 or 5739.026 of the Revised
| 638 |
Code and of transit authorities levying an additional sales tax
| 639 |
pursuant to section 5739.023 of the Revised Code. Except for the
| 640 |
discount authorized under section 5739.12 of the Revised Code and
| 641 |
the effects of any rounding pursuant to section 5703.055 of the
| 642 |
Revised Code, no person other than the state or such a county or
| 643 |
transit authority shall derive any benefit from the collection or
| 644 |
payment of the tax levied by this section or section 5739.021,
| 645 |
5739.023, or 5739.026 of the Revised Code.
| 646 |
Sec. 5739.05. (A)(1) The tax commissioner shall enforce and | 647 |
administer sections 5739.01 to 5739.31 of the Revised Code, which | 648 |
are hereby declared to be sections whichthat the commissioner is | 649 |
required to administer within the meaning of sections 5703.17 to | 650 |
5703.37, 5703.39, 5703.41, and 5703.45 of the Revised Code. The | 651 |
commissioner may adopt and promulgate, in accordance with
sections | 652 |
119.01 to 119.13 of the Revised Code, such rules as
the | 653 |
commissioner deems necessary to administer sections 5739.01 to | 654 |
5739.31 of
the Revised Code. | 655 |
(B)
Upon application, the commissioner may authorize a
vendor | 663 |
to
pay on a predetermined basis the
tax levied by or
pursuant to | 664 |
section 5739.02, 5739.021, 5739.023,
or 5739.026 of
the Revised | 665 |
Code upon sales of things produced or
distributed or
services | 666 |
provided by such vendor, and
the
commissioner may
waive
the | 667 |
collection of the tax from the consumer. The commissioner
shall | 668 |
not grant such authority unless
the commissioner finds that
the
| 669 |
granting of the authority would improve compliance and
increase | 670 |
the efficiency of the administration of the tax. The
person to | 671 |
whom
such authority is granted
shall post a notice, if
required by | 672 |
the
commissioner, at the location where the product is
offered for | 673 |
sale, that the tax is included in the selling price.
The | 674 |
comissionercommissioner may adopt rules to administer this | 675 |
division. | 676 |
(C) The commissioner may authorize a vendor to pay, on the | 677 |
basis of a prearranged agreement under this division, the tax | 678 |
levied by section 5739.02 or pursuant to section 5739.021, | 679 |
5739.023, or 5739.026 of the Revised Code, and waive the | 680 |
requirement that the vendor maintain the complete and accurate | 681 |
record of individual taxable sales and tax collected thereon | 682 |
required by section 5739.11 of the Revised Code, upon application
| 683 |
of the vendor, if
the
commissioner finds that
the conditions of | 684 |
the vendor-applicant's business are such that
the maintenance of | 685 |
such records of individual taxable sales and
tax collected
thereon | 686 |
would impose an unreasonable burden upon the
vendor. If
the | 687 |
commissioner determines that such unreasonable
burden has
been | 688 |
imposed, the vendor and the commissioner shall
agree to the
terms | 689 |
and conditions of a test check to be conducted.
If the
parties are | 690 |
unable to agree to the terms and conditions of
the
test check, the | 691 |
application shall be denied. The test check
conducted shall | 692 |
determine the proportion that taxable retail
sales
bear to all of
| 693 |
the vendor's retail sales and the ratio
which
the tax
required to | 694 |
be collected under sections 5739.02, 5739.021,
and
5739.023 of the | 695 |
Revised Code bears to the receipts from the
vendor's taxable | 696 |
retail sales. | 697 |
The vendor shall collect the tax on
the vendor's taxable | 698 |
sales and
the vendor's liability for collecting or remitting
shall | 699 |
be based upon the
proportions and ratios established by the
test | 700 |
check, and not
upon any other basis of determination, until
such | 701 |
time as a
subsequent test check is made at the request of
either | 702 |
the vendor
or the commissioner where either party believes
that | 703 |
the nature
of the vendor's business has so changed as to make
the | 704 |
prior or
existing test check no longer representative. The | 705 |
commissioner
may give notice to the vendor at any time that the | 706 |
authorization
is revoked or the vendor may notify the commissioner | 707 |
that
the
vendor no longer elects to report under the | 708 |
authorization. Such notice
shall be delivered to the other party | 709 |
personally or by registered
mail. The revocation or cancellation | 710 |
is not effective prior to
the date of receipt of such notice. | 711 |