Bill Text: OH SB386 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To exempt from sales and use taxes the sale or use of investment metal bullion and coins.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-10-30 - To Ways & Means & Economic Development [SB386 Detail]

Download: Ohio-2011-SB386-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 386

Senator Jordan 

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A BILL

To amend section 5739.02 of the Revised Code to

1

exempt from sales and use taxes the sale or use of

2

investment metal bullion and coins.

3

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

Section 1.  That section 5739.02 of the Revised Code be	4
amended to read as follows:	5

Sec. 5739.02.  For the purpose of providing revenue with	6
which to meet the needs of the state, for the use of the general	7
revenue fund of the state, for the purpose of securing a thorough	8
and efficient system of common schools throughout the state, for	9
the purpose of affording revenues, in addition to those from	10
general property taxes, permitted under constitutional	11
limitations, and from other sources, for the support of local	12
governmental functions, and for the purpose of reimbursing the	13
state for the expense of administering this chapter, an excise tax	14
is hereby levied on each retail sale made in this state.	15

(A)(1) The tax shall be collected as provided in section	16
5739.025 of the Revised Code. The rate of the tax shall be five	17
and one-half per cent. The tax applies and is collectible when the	18
sale is made, regardless of the time when the price is paid or	19
delivered.	20

(2) In the case of the lease or rental, with a fixed term of	21
more than thirty days or an indefinite term with a minimum period	22
of more than thirty days, of any motor vehicles designed by the	23
manufacturer to carry a load of not more than one ton, watercraft,	24
outboard motor, or aircraft, or of any tangible personal property,	25
other than motor vehicles designed by the manufacturer to carry a	26
load of more than one ton, to be used by the lessee or renter	27
primarily for business purposes, the tax shall be collected by the	28
vendor at the time the lease or rental is consummated and shall be	29
calculated by the vendor on the basis of the total amount to be	30
paid by the lessee or renter under the lease agreement. If the	31
total amount of the consideration for the lease or rental includes	32
amounts that are not calculated at the time the lease or rental is	33
executed, the tax shall be calculated and collected by the vendor	34
at the time such amounts are billed to the lessee or renter. In	35
the case of an open-end lease or rental, the tax shall be	36
calculated by the vendor on the basis of the total amount to be	37
paid during the initial fixed term of the lease or rental, and for	38
each subsequent renewal period as it comes due. As used in this	39
division, "motor vehicle" has the same meaning as in section	40
4501.01 of the Revised Code, and "watercraft" includes an outdrive	41
unit attached to the watercraft.	42

A lease with a renewal clause and a termination penalty or	43
similar provision that applies if the renewal clause is not	44
exercised is presumed to be a sham transaction. In such a case,	45
the tax shall be calculated and paid on the basis of the entire	46
length of the lease period, including any renewal periods, until	47
the termination penalty or similar provision no longer applies.	48
The taxpayer shall bear the burden, by a preponderance of the	49
evidence, that the transaction or series of transactions is not a	50
sham transaction.	51

(3) Except as provided in division (A)(2) of this section, in	52
the case of a sale, the price of which consists in whole or in	53
part of the lease or rental of tangible personal property, the	54
tax shall be measured by the installments of that lease or rental.	55

(4) In the case of a sale of a physical fitness facility	56
service or recreation and sports club service, the price of which	57
consists in whole or in part of a membership for the receipt of	58
the benefit of the service, the tax applicable to the sale shall	59
be measured by the installments thereof.	60

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

61

(1) Sales to the state or any of its political subdivisions,	62
or to any other state or its political subdivisions if the laws of	63
that state exempt from taxation sales made to this state and its	64
political subdivisions;	65

(2) Sales of food for human consumption off the premises	66
where sold;	67

(3) Sales of food sold to students only in a cafeteria,	68
dormitory, fraternity, or sorority maintained in a private,	69
public, or parochial school, college, or university;	70

(4) Sales of newspapers and of magazine subscriptions and	71
sales or transfers of magazines distributed as controlled	72
circulation publications;	73

(5) The furnishing, preparing, or serving of meals without	74
charge by an employer to an employee provided the employer records	75
the meals as part compensation for services performed or work	76
done;	77

(6) Sales of motor fuel upon receipt, use, distribution, or	78
sale of which in this state a tax is imposed by the law of this	79
state, but this exemption shall not apply to the sale of motor	80
fuel on which a refund of the tax is allowable under division (A)	81
of section 5735.14 of the Revised Code; and the tax commissioner	82
may deduct the amount of tax levied by this section applicable to	83
the price of motor fuel when granting a refund of motor fuel tax	84
pursuant to division (A) of section 5735.14 of the Revised Code	85
and shall cause the amount deducted to be paid into the general	86
revenue fund of this state;	87

(7) Sales of natural gas by a natural gas company, of water	88
by a water-works company, or of steam by a heating company, if in	89
each case the thing sold is delivered to consumers through pipes	90
or conduits, and all sales of communications services by a	91
telegraph company, all terms as defined in section 5727.01 of the	92
Revised Code, and sales of electricity delivered through wires;	93

(8) Casual sales by a person, or auctioneer employed directly	94
by the person to conduct such sales, except as to such sales of	95
motor vehicles, watercraft or outboard motors required to be	96
titled under section 1548.06 of the Revised Code, watercraft	97
documented with the United States coast guard, snowmobiles, and	98
all-purpose vehicles as defined in section 4519.01 of the Revised	99
Code;	100

(9)(a) Sales of services or tangible personal property, other	101
than motor vehicles, mobile homes, and manufactured homes, by	102
churches, organizations exempt from taxation under section	103
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	104
organizations operated exclusively for charitable purposes as	105
defined in division (B)(12) of this section, provided that the	106
number of days on which such tangible personal property or	107
services, other than items never subject to the tax, are sold does	108
not exceed six in any calendar year, except as otherwise provided	109
in division (B)(9)(b) of this section. If the number of days on	110
which such sales are made exceeds six in any calendar year, the	111
church or organization shall be considered to be engaged in	112
business and all subsequent sales by it shall be subject to the	113
tax. In counting the number of days, all sales by groups within a	114
church or within an organization shall be considered to be sales	115
of that church or organization.	116

(b) The limitation on the number of days on which tax-exempt	117
sales may be made by a church or organization under division	118
(B)(9)(a) of this section does not apply to sales made by student	119
clubs and other groups of students of a primary or secondary	120
school, or a parent-teacher association, booster group, or similar	121
organization that raises money to support or fund curricular or	122
extracurricular activities of a primary or secondary school.	123

(c) Divisions (B)(9)(a) and (b) of this section do not apply	124
to sales by a noncommercial educational radio or television	125
broadcasting station.	126

(10) Sales not within the taxing power of this state under	127
the Constitution of the United States;	128

(11) Except for transactions that are sales under division	129
(B)(3)(r) of section 5739.01 of the Revised Code, the	130
transportation of persons or property, unless the transportation	131
is by a private investigation and security service;	132

(12) Sales of tangible personal property or services to	133
churches, to organizations exempt from taxation under section	134
501(c)(3) of the Internal Revenue Code of 1986, and to any other	135
nonprofit organizations operated exclusively for charitable	136
purposes in this state, no part of the net income of which inures	137
to the benefit of any private shareholder or individual, and no	138
substantial part of the activities of which consists of carrying	139
on propaganda or otherwise attempting to influence legislation;	140
sales to offices administering one or more homes for the aged or	141
one or more hospital facilities exempt under section 140.08 of the	142
Revised Code; and sales to organizations described in division (D)	143
of section 5709.12 of the Revised Code.	144

"Charitable purposes" means the relief of poverty; the	145
improvement of health through the alleviation of illness, disease,	146
or injury; the operation of an organization exclusively for the	147
provision of professional, laundry, printing, and purchasing	148
services to hospitals or charitable institutions; the operation of	149
a home for the aged, as defined in section 5701.13 of the Revised	150
Code; the operation of a radio or television broadcasting station	151
that is licensed by the federal communications commission as a	152
noncommercial educational radio or television station; the	153
operation of a nonprofit animal adoption service or a county	154
humane society; the promotion of education by an institution of	155
learning that maintains a faculty of qualified instructors,	156
teaches regular continuous courses of study, and confers a	157
recognized diploma upon completion of a specific curriculum; the	158
operation of a parent-teacher association, booster group, or	159
similar organization primarily engaged in the promotion and	160
support of the curricular or extracurricular activities of a	161
primary or secondary school; the operation of a community or area	162
center in which presentations in music, dramatics, the arts, and	163
related fields are made in order to foster public interest and	164
education therein; the production of performances in music,	165
dramatics, and the arts; or the promotion of education by an	166
organization engaged in carrying on research in, or the	167
dissemination of, scientific and technological knowledge and	168
information primarily for the public.	169

Nothing in this division shall be deemed to exempt sales to	170
any organization for use in the operation or carrying on of a	171
trade or business, or sales to a home for the aged for use in the	172
operation of independent living facilities as defined in division	173
(A) of section 5709.12 of the Revised Code.	174

(13) Building and construction materials and services sold to	175
construction contractors for incorporation into a structure or	176
improvement to real property under a construction contract with	177
this state or a political subdivision of this state, or with the	178
United States government or any of its agencies; building and	179
construction materials and services sold to construction	180
contractors for incorporation into a structure or improvement to	181
real property that are accepted for ownership by this state or any	182
of its political subdivisions, or by the United States government	183
or any of its agencies at the time of completion of the structures	184
or improvements; building and construction materials sold to	185
construction contractors for incorporation into a horticulture	186
structure or livestock structure for a person engaged in the	187
business of horticulture or producing livestock; building	188
materials and services sold to a construction contractor for	189
incorporation into a house of public worship or religious	190
education, or a building used exclusively for charitable purposes	191
under a construction contract with an organization whose purpose	192
is as described in division (B)(12) of this section; building	193
materials and services sold to a construction contractor for	194
incorporation into a building under a construction contract with	195
an organization exempt from taxation under section 501(c)(3) of	196
the Internal Revenue Code of 1986 when the building is to be used	197
exclusively for the organization's exempt purposes; building and	198
construction materials sold for incorporation into the original	199
construction of a sports facility under section 307.696 of the	200
Revised Code; building and construction materials and services	201
sold to a construction contractor for incorporation into real	202
property outside this state if such materials and services, when	203
sold to a construction contractor in the state in which the real	204
property is located for incorporation into real property in that	205
state, would be exempt from a tax on sales levied by that state;	206
and, until one calendar year after the construction of a	207
convention center that qualifies for property tax exemption under	208
section 5709.084 of the Revised Code is completed, building and	209
construction materials and services sold to a construction	210
contractor for incorporation into the real property comprising	211
that convention center;	212

(14) Sales of ships or vessels or rail rolling stock used or	213
to be used principally in interstate or foreign commerce, and	214
repairs, alterations, fuel, and lubricants for such ships or	215
vessels or rail rolling stock;	216

(15) Sales to persons primarily engaged in any of the	217
activities mentioned in division (B)(42)(a), (g), or (h) of this	218
section, to persons engaged in making retail sales, or to persons	219
who purchase for sale from a manufacturer tangible personal	220
property that was produced by the manufacturer in accordance with	221
specific designs provided by the purchaser, of packages, including	222
material, labels, and parts for packages, and of machinery,	223
equipment, and material for use primarily in packaging tangible	224
personal property produced for sale, including any machinery,	225
equipment, and supplies used to make labels or packages, to	226
prepare packages or products for labeling, or to label packages or	227
products, by or on the order of the person doing the packaging, or	228
sold at retail. "Packages" includes bags, baskets, cartons,	229
crates, boxes, cans, bottles, bindings, wrappings, and other	230
similar devices and containers, but does not include motor	231
vehicles or bulk tanks, trailers, or similar devices attached to	232
motor vehicles. "Packaging" means placing in a package. Division	233
(B)(15) of this section does not apply to persons engaged in	234
highway transportation for hire.	235

(16) Sales of food to persons using supplemental nutrition	236
assistance program benefits to purchase the food. As used in this	237
division, "food" has the same meaning as in 7 U.S.C. 2012 and	238
federal regulations adopted pursuant to the Food and Nutrition Act	239
of 2008.	240

(17) Sales to persons engaged in farming, agriculture,	241
horticulture, or floriculture, of tangible personal property for	242
use or consumption primarily in the production by farming,	243
agriculture, horticulture, or floriculture of other tangible	244
personal property for use or consumption primarily in the	245
production of tangible personal property for sale by farming,	246
agriculture, horticulture, or floriculture; or material and parts	247
for incorporation into any such tangible personal property for use	248
or consumption in production; and of tangible personal property	249
for such use or consumption in the conditioning or holding of	250
products produced by and for such use, consumption, or sale by	251
persons engaged in farming, agriculture, horticulture, or	252
floriculture, except where such property is incorporated into real	253
property;	254

(18) Sales of drugs for a human being that may be dispensed	255
only pursuant to a prescription; insulin as recognized in the	256
official United States pharmacopoeia; urine and blood testing	257
materials when used by diabetics or persons with hypoglycemia to	258
test for glucose or acetone; hypodermic syringes and needles when	259
used by diabetics for insulin injections; epoetin alfa when	260
purchased for use in the treatment of persons with medical	261
disease; hospital beds when purchased by hospitals, nursing homes,	262
or other medical facilities; and medical oxygen and medical	263
oxygen-dispensing equipment when purchased by hospitals, nursing	264
homes, or other medical facilities;	265

(19) Sales of prosthetic devices, durable medical equipment	266
for home use, or mobility enhancing equipment, when made pursuant	267
to a prescription and when such devices or equipment are for use	268
by a human being.	269

(20) Sales of emergency and fire protection vehicles and	270
equipment to nonprofit organizations for use solely in providing	271
fire protection and emergency services, including trauma care and	272
emergency medical services, for political subdivisions of the	273
state;	274

(21) Sales of tangible personal property manufactured in this	275
state, if sold by the manufacturer in this state to a retailer for	276
use in the retail business of the retailer outside of this state	277
and if possession is taken from the manufacturer by the purchaser	278
within this state for the sole purpose of immediately removing the	279
same from this state in a vehicle owned by the purchaser;	280

(22) Sales of services provided by the state or any of its	281
political subdivisions, agencies, instrumentalities, institutions,	282
or authorities, or by governmental entities of the state or any of	283
its political subdivisions, agencies, instrumentalities,	284
institutions, or authorities;	285

(23) Sales of motor vehicles to nonresidents of this state	286
under the circumstances described in division (B) of section	287
5739.029 of the Revised Code;	288

(24) Sales to persons engaged in the preparation of eggs for	289
sale of tangible personal property used or consumed directly in	290
such preparation, including such tangible personal property used	291
for cleaning, sanitizing, preserving, grading, sorting, and	292
classifying by size; packages, including material and parts for	293
packages, and machinery, equipment, and material for use in	294
packaging eggs for sale; and handling and transportation equipment	295
and parts therefor, except motor vehicles licensed to operate on	296
public highways, used in intraplant or interplant transfers or	297
shipment of eggs in the process of preparation for sale, when the	298
plant or plants within or between which such transfers or	299
shipments occur are operated by the same person. "Packages"	300
includes containers, cases, baskets, flats, fillers, filler flats,	301
cartons, closure materials, labels, and labeling materials, and	302
"packaging" means placing therein.	303

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

304

(b) Sales of water by a nonprofit corporation engaged	305
exclusively in the treatment, distribution, and sale of water to	306
consumers, if such water is delivered to consumers through pipes	307
or tubing.	308

(26) Fees charged for inspection or reinspection of motor	309
vehicles under section 3704.14 of the Revised Code;	310

(27) Sales to persons licensed to conduct a food service	311
operation pursuant to section 3717.43 of the Revised Code, of	312
tangible personal property primarily used directly for the	313
following:	314

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

315

(b) To preserve food that has been or will be prepared for	316
human consumption for sale by the food service operator, not	317
including tangible personal property used to display food for	318
selection by the consumer;	319

(c) To clean tangible personal property used to prepare or	320
serve food for human consumption for sale.	321

(28) Sales of animals by nonprofit animal adoption services	322
or county humane societies;	323

(29) Sales of services to a corporation described in division	324
(A) of section 5709.72 of the Revised Code, and sales of tangible	325
personal property that qualifies for exemption from taxation under	326
section 5709.72 of the Revised Code;	327

(30) Sales and installation of agricultural land tile, as	328
defined in division (B)(5)(a) of section 5739.01 of the Revised	329
Code;	330

(31) Sales and erection or installation of portable grain	331
bins, as defined in division (B)(5)(b) of section 5739.01 of the	332
Revised Code;	333

(32) The sale, lease, repair, and maintenance of, parts for,	334
or items attached to or incorporated in, motor vehicles that are	335
primarily used for transporting tangible personal property	336
belonging to others by a person engaged in highway transportation	337
for hire, except for packages and packaging used for the	338
transportation of tangible personal property;	339

(33) Sales to the state headquarters of any veterans'	340
organization in this state that is either incorporated and issued	341
a charter by the congress of the United States or is recognized by	342
the United States veterans administration, for use by the	343
headquarters;	344

(34) Sales to a telecommunications service vendor, mobile	345
telecommunications service vendor, or satellite broadcasting	346
service vendor of tangible personal property and services used	347
directly and primarily in transmitting, receiving, switching, or	348
recording any interactive, one- or two-way electromagnetic	349
communications, including voice, image, data, and information,	350
through the use of any medium, including, but not limited to,	351
poles, wires, cables, switching equipment, computers, and record	352
storage devices and media, and component parts for the tangible	353
personal property. The exemption provided in this division shall	354
be in lieu of all other exemptions under division (B)(42)(a) or	355
(n) of this section to which the vendor may otherwise be entitled,	356
based upon the use of the thing purchased in providing the	357
telecommunications, mobile telecommunications, or satellite	358
broadcasting service.	359

(35)(a) Sales where the purpose of the consumer is to use or	360
consume the things transferred in making retail sales and	361
consisting of newspaper inserts, catalogues, coupons, flyers, gift	362
certificates, or other advertising material that prices and	363
describes tangible personal property offered for retail sale.	364

(b) Sales to direct marketing vendors of preliminary	365
materials such as photographs, artwork, and typesetting that will	366
be used in printing advertising material; and of printed matter	367
that offers free merchandise or chances to win sweepstake prizes	368
and that is mailed to potential customers with advertising	369
material described in division (B)(35)(a) of this section;	370

(c) Sales of equipment such as telephones, computers,	371
facsimile machines, and similar tangible personal property	372
primarily used to accept orders for direct marketing retail sales.	373

(d) Sales of automatic food vending machines that preserve	374
food with a shelf life of forty-five days or less by refrigeration	375
and dispense it to the consumer.	376

For purposes of division (B)(35) of this section, "direct	377
marketing" means the method of selling where consumers order	378
tangible personal property by United States mail, delivery	379
service, or telecommunication and the vendor delivers or ships the	380
tangible personal property sold to the consumer from a warehouse,	381
catalogue distribution center, or similar fulfillment facility by	382
means of the United States mail, delivery service, or common	383
carrier.	384

(36) Sales to a person engaged in the business of	385
horticulture or producing livestock of materials to be	386
incorporated into a horticulture structure or livestock structure;	387

(37) Sales of personal computers, computer monitors, computer	388
keyboards, modems, and other peripheral computer equipment to an	389
individual who is licensed or certified to teach in an elementary	390
or a secondary school in this state for use by that individual in	391
preparation for teaching elementary or secondary school students;	392

(38) Sales to a professional racing team of any of the	393
following:	394

(a) Motor racing vehicles;

395

(b) Repair services for motor racing vehicles;

396

(c) Items of property that are attached to or incorporated in	397
motor racing vehicles, including engines, chassis, and all other	398
components of the vehicles, and all spare, replacement, and	399
rebuilt parts or components of the vehicles; except not including	400
tires, consumable fluids, paint, and accessories consisting of	401
instrumentation sensors and related items added to the vehicle to	402
collect and transmit data by means of telemetry and other forms of	403
communication.	404

(39) Sales of used manufactured homes and used mobile homes,	405
as defined in section 5739.0210 of the Revised Code, made on or	406
after January 1, 2000;	407

(40) Sales of tangible personal property and services to a	408
provider of electricity used or consumed directly and primarily in	409
generating, transmitting, or distributing electricity for use by	410
others, including property that is or is to be incorporated into	411
and will become a part of the consumer's production, transmission,	412
or distribution system and that retains its classification as	413
tangible personal property after incorporation; fuel or power used	414
in the production, transmission, or distribution of electricity;	415
energy conversion equipment as defined in section 5727.01 of the	416
Revised Code; and tangible personal property and services used in	417
the repair and maintenance of the production, transmission, or	418
distribution system, including only those motor vehicles as are	419
specially designed and equipped for such use. The exemption	420
provided in this division shall be in lieu of all other exemptions	421
in division (B)(42)(a) or (n) of this section to which a provider	422
of electricity may otherwise be entitled based on the use of the	423
tangible personal property or service purchased in generating,	424
transmitting, or distributing electricity.	425

(41) Sales to a person providing services under division	426
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	427
personal property and services used directly and primarily in	428
providing taxable services under that section.	429

(42) Sales where the purpose of the purchaser is to do any of	430
the following:	431

(a) To incorporate the thing transferred as a material or a	432
part into tangible personal property to be produced for sale by	433
manufacturing, assembling, processing, or refining; or to use or	434
consume the thing transferred directly in producing tangible	435
personal property for sale by mining, including, without	436
limitation, the extraction from the earth of all substances that	437
are classed geologically as minerals, production of crude oil and	438
natural gas, or directly in the rendition of a public utility	439
service, except that the sales tax levied by this section shall be	440
collected upon all meals, drinks, and food for human consumption	441
sold when transporting persons. Persons engaged in rendering	442
services in the exploration for, and production of, crude oil and	443
natural gas for others are deemed engaged directly in the	444
exploration for, and production of, crude oil and natural gas.	445
This paragraph does not exempt from "retail sale" or "sales at	446
retail" the sale of tangible personal property that is to be	447
incorporated into a structure or improvement to real property.	448

(b) To hold the thing transferred as security for the	449
performance of an obligation of the vendor;	450

(c) To resell, hold, use, or consume the thing transferred as	451
evidence of a contract of insurance;	452

(d) To use or consume the thing directly in commercial	453
fishing;	454

(e) To incorporate the thing transferred as a material or a	455
part into, or to use or consume the thing transferred directly in	456
the production of, magazines distributed as controlled circulation	457
publications;	458

(f) To use or consume the thing transferred in the production	459
and preparation in suitable condition for market and sale of	460
printed, imprinted, overprinted, lithographic, multilithic,	461
blueprinted, photostatic, or other productions or reproductions of	462
written or graphic matter;	463

(g) To use the thing transferred, as described in section	464
5739.011 of the Revised Code, primarily in a manufacturing	465
operation to produce tangible personal property for sale;	466

(h) To use the benefit of a warranty, maintenance or service	467
contract, or similar agreement, as described in division (B)(7) of	468
section 5739.01 of the Revised Code, to repair or maintain	469
tangible personal property, if all of the property that is the	470
subject of the warranty, contract, or agreement would not be	471
subject to the tax imposed by this section;	472

(i) To use the thing transferred as qualified research and	473
development equipment;	474

(j) To use or consume the thing transferred primarily in	475
storing, transporting, mailing, or otherwise handling purchased	476
sales inventory in a warehouse, distribution center, or similar	477
facility when the inventory is primarily distributed outside this	478
state to retail stores of the person who owns or controls the	479
warehouse, distribution center, or similar facility, to retail	480
stores of an affiliated group of which that person is a member, or	481
by means of direct marketing. This division does not apply to	482
motor vehicles registered for operation on the public highways. As	483
used in this division, "affiliated group" has the same meaning as	484
in division (B)(3)(e) of section 5739.01 of the Revised Code and	485
"direct marketing" has the same meaning as in division (B)(35) of	486
this section.	487

(k) To use or consume the thing transferred to fulfill a	488
contractual obligation incurred by a warrantor pursuant to a	489
warranty provided as a part of the price of the tangible personal	490
property sold or by a vendor of a warranty, maintenance or service	491
contract, or similar agreement the provision of which is defined	492
as a sale under division (B)(7) of section 5739.01 of the Revised	493
Code;	494

(l) To use or consume the thing transferred in the production	495
of a newspaper for distribution to the public;	496

(m) To use tangible personal property to perform a service	497
listed in division (B)(3) of section 5739.01 of the Revised Code,	498
if the property is or is to be permanently transferred to the	499
consumer of the service as an integral part of the performance of	500
the service;	501

(n) To use or consume the thing transferred primarily in	502
producing tangible personal property for sale by farming,	503
agriculture, horticulture, or floriculture. Persons engaged in	504
rendering farming, agriculture, horticulture, or floriculture	505
services for others are deemed engaged primarily in farming,	506
agriculture, horticulture, or floriculture. This paragraph does	507
not exempt from "retail sale" or "sales at retail" the sale of	508
tangible personal property that is to be incorporated into a	509
structure or improvement to real property.	510

(o) To use or consume the thing transferred in acquiring,	511
formatting, editing, storing, and disseminating data or	512
information by electronic publishing.	513

As used in division (B)(42) of this section, "thing" includes	514
all transactions included in divisions (B)(3)(a), (b), and (e) of	515
section 5739.01 of the Revised Code.	516

(43) Sales conducted through a coin operated device that	517
activates vacuum equipment or equipment that dispenses water,	518
whether or not in combination with soap or other cleaning agents	519
or wax, to the consumer for the consumer's use on the premises in	520
washing, cleaning, or waxing a motor vehicle, provided no other	521
personal property or personal service is provided as part of the	522
transaction.	523

(44) Sales of replacement and modification parts for engines,	524
airframes, instruments, and interiors in, and paint for, aircraft	525
used primarily in a fractional aircraft ownership program, and	526
sales of services for the repair, modification, and maintenance of	527
such aircraft, and machinery, equipment, and supplies primarily	528
used to provide those services.	529

(45) Sales of telecommunications service that is used	530
directly and primarily to perform the functions of a call center.	531
As used in this division, "call center" means any physical	532
location where telephone calls are placed or received in high	533
volume for the purpose of making sales, marketing, customer	534
service, technical support, or other specialized business	535
activity, and that employs at least fifty individuals that engage	536
in call center activities on a full-time basis, or sufficient	537
individuals to fill fifty full-time equivalent positions.	538

(46) Sales by a telecommunications service vendor of 900	539
service to a subscriber. This division does not apply to	540
information services, as defined in division (FF) of section	541
5739.01 of the Revised Code.	542

(47) Sales of value-added non-voice data service. This	543
division does not apply to any similar service that is not	544
otherwise a telecommunications service.	545

(48)(a) Sales of machinery, equipment, and software to a	546
qualified direct selling entity for use in a warehouse or	547
distribution center primarily for storing, transporting, or	548
otherwise handling inventory that is held for sale to independent	549
salespersons who operate as direct sellers and that is held	550
primarily for distribution outside this state;	551

(b) As used in division (B)(48)(a) of this section:

552

(i) "Direct seller" means a person selling consumer products	553
to individuals for personal or household use and not from a fixed	554
retail location, including selling such product at in-home product	555
demonstrations, parties, and other one-on-one selling.	556

(ii) "Qualified direct selling entity" means an entity	557
selling to direct sellers at the time the entity enters into a tax	558
credit agreement with the tax credit authority pursuant to section	559
122.17 of the Revised Code, provided that the agreement was	560
entered into on or after January 1, 2007. Neither contingencies	561
relevant to the granting of, nor later developments with respect	562
to, the tax credit shall impair the status of the qualified direct	563
selling entity under division (B)(48) of this section after	564
execution of the tax credit agreement by the tax credit authority.	565

(c) Division (B)(48) of this section is limited to machinery,	566
equipment, and software first stored, used, or consumed in this	567
state within the period commencing June 24, 2008, and ending on	568
the date that is five years after that date.	569

(49) Sales of materials, parts, equipment, or engines used in	570
the repair or maintenance of aircraft or avionics systems of such	571
aircraft, and sales of repair, remodeling, replacement, or	572
maintenance services in this state performed on aircraft or on an	573
aircraft's avionics, engine, or component materials or parts. As	574
used in division (B)(49) of this section, "aircraft" means	575
aircraft of more than six thousand pounds maximum certified	576
takeoff weight or used exclusively in general aviation.	577

(50) Sales of full flight simulators that are used for pilot	578
or flight-crew training, sales of repair or replacement parts or	579
components, and sales of repair or maintenance services for such	580
full flight simulators. "Full flight simulator" means a replica of	581
a specific type, or make, model, and series of aircraft cockpit.	582
It includes the assemblage of equipment and computer programs	583
necessary to represent aircraft operations in ground and flight	584
conditions, a visual system providing an out-of-the-cockpit view,	585
and a system that provides cues at least equivalent to those of a	586
three-degree-of-freedom motion system, and has the full range of	587
capabilities of the systems installed in the device as described	588
in appendices A and B of part 60 of chapter 1 of title 14 of the	589
Code of Federal Regulations.	590

(51) Any transfer or lease of tangible personal property	591
between the state and a successful proposer in accordance with	592
sections 126.60 to 126.605 of the Revised Code, provided the	593
property is part of a project as defined in section 126.60 of the	594
Revised Code and the state retains ownership of the project or	595
part thereof that is being transferred or leased, between the	596
state and JobsOhio in accordance with section 4313.02 of the	597
Revised Code.	598

(52) Sales of investment metal bullion and investment coins.	599
"Investment metal bullion" means any elementary precious metal	600
that has been put through a process of smelting or refining,	601
including, but not limited to, gold, silver, platinum, and	602
palladium, and which is in such state or condition that its value	603
depends upon its content and not upon its form. "Investment metal	604
bullion" does not include fabricated precious metal that has been	605
processed or manufactured for one or more specific and customary	606
industrial, professional, or artistic uses. "Investment coins"	607
means numismatic coins or other forms of money and legal tender	608
manufactured of gold, silver, platinum, palladium, or other metal	609
under the laws of the United States or any foreign nation with a	610
fair market value greater than any statutory or nominal value of	611
such coins.	612

(C) For the purpose of the proper administration of this	613
chapter, and to prevent the evasion of the tax, it is presumed	614
that all sales made in this state are subject to the tax until the	615
contrary is established.	616

(D) The levy of this tax on retail sales of recreation and	617
sports club service shall not prevent a municipal corporation from	618
levying any tax on recreation and sports club dues or on any	619
income generated by recreation and sports club dues.	620

(E) The tax collected by the vendor from the consumer under	621
this chapter is not part of the price, but is a tax collection for	622
the benefit of the state, and of counties levying an additional	623
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	624
Code and of transit authorities levying an additional sales tax	625
pursuant to section 5739.023 of the Revised Code. Except for the	626
discount authorized under section 5739.12 of the Revised Code and	627
the effects of any rounding pursuant to section 5703.055 of the	628
Revised Code, no person other than the state or such a county or	629
transit authority shall derive any benefit from the collection or	630
payment of the tax levied by this section or section 5739.021,	631
5739.023, or 5739.026 of the Revised Code.	632

Section 2.  That existing section 5739.02 of the Revised Code	633
is hereby repealed.	634

Section 3.  That the amendment by this act of section 5739.02	635
of the Revised Code applies on and after the first day of the	636
first month that begins after the effective date of this act.	637

Section 4.  Section 5739.02 of the Revised Code is presented	638
in this act as a composite of the section as amended by both Am.	639
Sub. H.B. 487 and Am. Sub. H.B. 508 of the 129th General Assembly.	640
The General Assembly, applying the principle stated in division	641
(B) of section 1.52 of the Revised Code that amendments are to be	642
harmonized if reasonably capable of simultaneous operation, finds	643
that the composite is the resulting version of the section in	644
effect prior to the effective date of the section as presented in	645
this act.	646