As Introduced
136th General Assembly
Regular Session S. B. No. 104
2025-2026
Senator Brenner
To amend sections 351.01, 351.021, 353.06, 4735.11,
5739.01, 5739.08, 5739.09, 5739.091, and 5741.01
and to enact section 5325.01 of the Revised Code
to limit the authority of local governments to
regulate short-term rental properties, to extend
local lodging taxes to short-term rentals, to
require collection of those taxes by short-term
rental platforms, and to require real estate
licenses to be issued electronically.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 351.01, 351.021, 353.06, 4735.11,
5739.01, 5739.08, 5739.09, 5739.091, and 5741.01 be amended and
section 5325.01 of the Revised Code be enacted to read as
follows:
Sec. 351.01. As used in this chapter:
(A) "Convention facilities authority" means a body
corporate and politic created pursuant to section 351.02 of the
Revised Code.
(B) "Governmental agency" means a department, division, or
other unit of the state government or of a municipal
corporation, county, township, or other political subdivision of
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the state; any state university or college, as defined in
section 3345.12 of the Revised Code, community college, state
community college, university branch, or technical college; any
other public corporation or agency having the power to acquire,
construct, or operate facilities; the United States or any
agency thereof; and any agency, commission, or authority
established pursuant to an interstate compact or agreement.
(C) "Person" means any individual, firm, partnership,
association, or corporation, or any combination of them.
(D) "Facility" or "facilities" means any convention,
entertainment, or sports facility, or combination of them,
located within the territory of the convention facilities
authority, together with all hotels, parking facilities,
walkways, and other auxiliary facilities, real and personal
property, property rights, easements and interests that may be
appropriate for, or used in connection with, the operation of
the facility.
(E) "Cost" means the cost of acquisition of all land,
rights-of-way, property rights, easements, franchise rights, and
interests required for such acquisition; the cost of demolishing
or removing any buildings or structures on land so acquired,
including the cost of acquiring any lands to which such
buildings or structures may be moved; the cost of acquiring or
constructing and equipping a principal office of the convention
facilities authority; the cost of diverting highways,
interchange of highways, access roads to private property,
including the cost of land or easements for such access roads;
the cost of public utility and common carrier relocation or
duplication; the cost of all machinery, furnishings, and
equipment; financing charges; interest prior to and during
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construction and for no more than eighteen months after
completion of construction; expenses of research and development
with respect to facilities; legal expenses; expenses of
obtaining plans, specifications, engineering surveys, studies,
and estimates of cost and revenues; working capital; expenses
necessary or incident to determining the feasibility or
practicability of acquiring or constructing such facility;
administrative expense; and such other expenses as may be
necessary or incident to the acquisition or construction of the
facility, the financing of such acquisition or construction,
including the amount authorized in the resolution of the
convention facilities authority providing for the issuance of
convention facilities authority revenue bonds to be paid into
any special funds from the proceeds of such bonds, the cost of
issuing the bonds, and the financing of the placing of such
facility in operation. Any obligation, cost, or expense incurred
by any governmental agency or person for surveys, borings,
preparation of plans and specifications, and other engineering
services, or any other cost described above, in connection with
the acquisition or construction of a facility may be regarded as
part of the cost of such facility and may be reimbursed out of
the proceeds of convention facilities authority revenue bonds as
authorized by this chapter.
(F) "Owner" includes a person having any title or interest
in any property, rights, easements, or interests authorized to
be acquired by Chapter 351. of the Revised Code.
(G) "Revenues" means all rentals and other charges
received by the convention facilities authority for the use or
services of any facility, the sale of any merchandise, or the
operation of any concessions; any gift or grant received with
respect to any facility, any moneys received with respect to the
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lease, sublease, sale, including installment sale or conditional
sale, or other disposition of a facility or part thereof; moneys
received in repayment of and for interest on any loans made by
the authority to a person or governmental agency, whether from
the United States or any department, administration, or agency
thereof, or otherwise; proceeds of convention facilities
authority revenue bonds to the extent the use thereof for
payment of principal or of premium, if any, or interest on the
bonds is authorized by the authority; proceeds from any
insurance, appropriation, or guaranty pertaining to a facility
or property mortgaged to secure bonds or pertaining to the
financing of the facility; income and profit from the investment
of the proceeds of convention facilities authority revenue bonds
or of any revenues; contributions of the proceeds of a tax
levied pursuant to division (C) of section 5739.09 of the
Revised Code; and moneys transmitted to the authority pursuant
to division (B) of section 5739.211 and division (B) of section
5741.031 of the Revised Code.
(H) "Public roads" includes all public highways, roads,
and streets in the state, whether maintained by the state,
county, city, township, or other political subdivision.
(I) "Construction," unless the context indicates a
different meaning or intent, includes, but is not limited to,
reconstruction, enlargement, improvement, or providing fixtures,
furnishings, and equipment.
(J) "Convention facilities authority revenue bonds" or
"revenue bonds," unless the context indicates a different
meaning or intent, includes convention facilities authority
revenue notes, convention facilities authority revenue renewal
notes, and convention facilities authority revenue refunding
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bonds.
(K) "Convention facilities authority tax anticipation
bonds" or "tax anticipation bonds," unless the context indicates
a different meaning, includes convention facilities authority
tax anticipation bonds, tax anticipation notes, tax anticipation
renewal notes, and tax anticipation refunding bonds.
(L) "Bonds and notes" means convention facilities
authority revenue bonds and convention facilities authority tax
anticipation bonds.
(M) "Territory of the authority" means all of the area of
the county creating the convention facilities authority.
(N) "Excise taxes" means any of the taxes levied pursuant
to division (B) or (C) of section 351.021 of the Revised Code.
"Excise taxes" does not include taxes levied pursuant to section
4301.424, 5743.026, or 5743.324 of the Revised Code.
(O) "Transaction" means the charge by a hotel or short-
term rental property for each occupancy by transient guests of a
room or suite of rooms used in a hotel or short-term rental
property as a single unit for any period of twenty-four hours or
less.
(P) "Hotel" "Hotel," "short-term rental property," and
"transient guests" have the same meanings as in section 5739.01
of the Revised Code.
(Q) "Sports facility" means a facility intended to house
major league professional athletic teams.
(R) "Constructing" or "construction" includes providing
fixtures, furnishings, and equipment.
Sec. 351.021. (A) The resolution of the county
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commissioners creating a convention facilities authority, or any
amendment or supplement to that resolution, may authorize the
authority to levy one or both of the excise taxes authorized by
division (B) of this section to pay the cost of one or more
facilities; to pay principal, interest, and premium on
convention facilities authority tax anticipation bonds issued to
pay those costs; to pay the operating costs of the authority; to
pay operating and maintenance costs of those facilities; and to
pay the costs of administering the excise tax.
(B) The board of directors of a convention facilities
authority that has been authorized pursuant to resolution
adopted, amended, or supplemented by the board of county
commissioners pursuant to division (A) of this section may levy,
by resolution adopted on or before December 31, 1988, either or
both of the following:
(1) Within the territory of the authority, an additional
excise tax not to exceed four per cent on each transaction. The
excise tax authorized by division (B)(1) of this section shall
be in addition to any excise tax levied pursuant to section
5739.08 or 5739.09 of the Revised Code, or division (B)(2) of
this section.
(2) Within that portion of any municipal corporation that
is located within the territory of the authority or within the
boundaries of any township that is located within the territory
of the authority, which municipal corporation or township is
levying any portion of the excise tax authorized by division (A)
of section 5739.08 of the Revised Code, and with the approval,
by ordinance or resolution, of the legislative authority of that
municipal corporation or township, an additional excise tax not
to exceed nine-tenths of one per cent on each transaction. The
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excise tax authorized by division (B)(2) of this section may be
levied only if, on the effective date of the levy specified in
the resolution making the levy, the amount being levied pursuant
to division (A) of section 5739.08 of the Revised Code by each
municipal corporation or township in which the tax authorized by
division (B)(2) of this section will be levied, when added to
the amount levied under division (B)(2) of this section, does
not exceed three per cent on each transaction. The excise tax
authorized by division (B)(2) of this section shall be in
addition to any excise tax that is levied pursuant to section
5739.08 or 5739.09 of the Revised Code, or division (B)(1) of
this section.
(C)(1) The board of directors of a convention facilities
authority that is located in an eligible Appalachian county;
that has been authorized pursuant to resolution adopted,
amended, or supplemented by the board of county commissioners
pursuant to division (A) of this section; and that is not
levying a tax under division (B)(1) or (2) of this section may
levy within the territory of the authority, by resolution
adopted on or before December 31, 2005, an additional excise tax
not to exceed three per cent on each transaction. The excise tax
authorized under division (C)(1) of this section shall be in
addition to any excise tax levied pursuant to section 5739.08 or
5739.09 of the Revised Code.
As used in division (C)(1) of this section, "eligible
Appalachian county" means a county in this state designated as
being in the "Appalachian region" under the "Appalachian
Regional Development Act of 1965," 79 Stat. 4, 40 U.S.C. App.
403, and having a population less than eighty thousand according
to the most recent federal decennial census.
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(2) Division (C)(2) of this section applies only to a
convention facilities authority located in a county with a
population, according to the 2000 federal decennial census, of
at least one hundred thirty-five thousand and not more than one
hundred fifty thousand and containing entirely within its
boundaries the territory of a municipal corporation with a
population according to that census of more than fifty thousand.
The board of directors of such a convention facilities
authority, by resolution adopted on or before November 1, 2009,
may levy within the territory of the authority an excise tax on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests at a rate
not to exceed three per cent on such transactions for the same
purposes for which a tax may be levied under division (B) of
this section. The resolution may be adopted only if the board of
county commissioners of the county, by resolution, authorizes
the levy of the tax. The resolution of the board of county
commissioners is subject to referendum as prescribed by sections
305.31 to 305.41 of the Revised Code. If, pursuant to those
procedures, a referendum is to be held, the board's resolution
does not take effect until approved by a majority of electors
voting on the question. The convention facilities authority may
adopt the resolution authorized by division (C)(2) of this
section before the election, but the authority's resolution
shall not take effect if the board of commissioners' resolution
is not approved at the election. A tax levied under division (C)
(2) of this section is in addition to any tax levied under
section 5739.09 of the Revised Code.
The board of directors of a convention facilities
authority that levies an excise tax under division (C)(2) of
this section may, by resolution adopted by a majority of the
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members of the board on or before November 1, 2021, amend the
resolution levying the tax to increase the rate of the tax by
not more than an additional one per cent on each transaction.
The resolution shall provide that all revenue from the increase
in rate shall be used for the same purposes for which a tax may
be levied under division (B) of this section. The resolution may
be adopted only if the board of county commissioners of the
county, by resolution, authorizes the rate increase.
(3) The board of directors of a convention facilities
authority created between July 1, 2019, and December 31, 2019,
by resolution adopted on or before December 30, 2020, may levy
within the territory of the authority an excise tax on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests at a rate
not to exceed three per cent on such transactions for the
purposes described in division (A) of this section. This tax
shall be in addition to any excise tax levied pursuant to this
section or section 5739.08 or 5739.09 of the Revised Code. The
resolution levying the tax shall not take effect sooner than
ninety days after the convention facilities authority is
created.
(D) The authority shall provide for the administration and
allocation of an excise tax levied pursuant to division (B) or
(C) of this section. All receipts arising from those excise
taxes shall be expended for the purposes provided in, and in
accordance with this section and section 351.141 of the Revised
Code. An excise tax levied under division (B) or (C) of this
section shall remain in effect at the rate at which it is levied
for at least the duration of the period for which the receipts
from the tax have been anticipated and pledged pursuant to
section 351.141 of the Revised Code.
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(E) Except as provided in division (B)(2) of this section,
the levy of an excise tax on each transaction pursuant to
sections 5739.08 and 5739.09 of the Revised Code does not
prevent a convention facilities authority from levying an excise
tax pursuant to division (B) or (C) of this section.
(F) A convention facilities authority located in a county
with a population greater than eighty thousand but less than
ninety thousand according to the 2010 federal decennial census
that levies a tax under division (B) of this section may amend
the resolution levying the tax to allocate a portion of the
revenue from the tax for support of tourism-related sites or
facilities and programs operated by the county or a municipal
corporation within the county in which the authority is located
or for the purpose of leasing lands for county fairs, erecting
buildings for county fair purposes, making improvements on a
county fairground, or for any purpose connected with the use of
a county fairground or with the management thereof by the county
in which the authority is located. The revenue allocated by the
authority for such purposes in a calendar year shall not exceed
twenty-five per cent of the total revenue from the tax in the
preceding calendar year. Revenue allocated for such purposes
that is not fully used by the end of the calendar year may be
carried forward for use in subsequent calendar years. Any amount
carried forward does not count toward the limitation on the
amount that may be allocated for such purposes in succeeding
calendar years.
Sec. 353.06. As used in this section, "hotel" "hotel,"
"short-term rental property," and "transient guests" have the
same meanings as in section 5739.01 of the Revised Code.
A resolution creating a lake facilities authority under
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section 353.02 of the Revised Code, or any amendments or
supplements thereto, may authorize the authority to levy an
excise tax on transactions by which lodging in a hotel or short-
term rental property is or is to be furnished to transient
guests to pay any costs authorized under this chapter; to pay
principal, interest, and premium on lake facilities authority
tax anticipation bonds issued to pay those costs; to pay the
operating costs of the authority; and to pay the costs of
administering the tax.
Upon the affirmative vote of at least a majority of the
qualified electors in a primary or general election within the
impacted lake district voting at an election held for the
purpose of authorizing the tax, the board of directors of a lake
facilities authority authorized to levy a tax under this section
may, by resolution, levy an additional excise tax within the
territory of the impacted lake district on all transactions by
which lodging in a hotel or short-term rental property is or is
to be furnished to transient guests. The rate of the tax, when
added to the aggregate rate of excise taxes levied in the
impacted lake district pursuant to section 351.021, 5739.08, or
5739.09 of the Revised Code, shall not cause the total aggregate
rate to exceed five per cent on any such transaction.
The lake facilities authority shall provide for the
administration and allocation of a tax levied pursuant to this
section. All receipts arising from the tax shall be expended for
the purposes provided in, and in accordance with, this section.
An excise tax levied under this section shall remain in effect
at the rate at which it is levied for at least the duration of
the period for which the receipts from the tax have been
anticipated and pledged pursuant to section 353.08 of the
Revised Code.
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The form of the ballot in an election held on the question
of levying a tax proposed pursuant to this section shall be as
follows or in any other form acceptable to the secretary of
state:
"An excise tax on all transactions by which lodging in a
hotel is or is to be furnished to transient guests within the
territory of the (name of impacted lake district) ___________
for the purpose of __________ at a rate of _________ for
____________ (number of years the tax is to be levied).
For the Excise Tax
Against the Excise Tax
"
Sec. 4735.11. The form and size of licenses Licenses
issued under this chapter shall be issued in an electronic
format in a form and size prescribed by the Ohio real estate
commission. Each broker's or foreign real estate dealer's
license shall show the name and address of the licensee, and in
the case of partnership, association, limited liability company,
limited liability partnership, and corporation licenses, the
name and address of each of the members or officers of the
partnership, association, limited liability company, limited
liability partnership, or corporation. A real estate
salesperson's license or a foreign real estate salesperson's
license shall show the name of the real estate broker or foreign
real estate dealer with whom the salesperson is or is to be
associated. Each license shall be issued under the seal
prescribed in section 121.20 of the Revised Code and be signed
by the president of the commission.
Sec. 5325.01. (A) As used in this section:
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(1) "Local government" means a township, county, or
municipal corporation.
(2) "Short-term rental property" means a house, apartment,
condominium, cooperative unit, cabin, cottage, or bungalow, or
one or more rooms therein, that is, or are, offered to
transients or travelers for a fee for a period of thirty days or
less, regardless of whether amenities, including meals, daily
housekeeping, concierge services, or linen services, are
provided.
(B) No local government shall adopt or enforce a
regulation, requirement, restriction, or other resolution or
ordinance concerning short-term rental properties that relates
to any of the following:
(1) Prohibiting short-term rental properties;
(2) Creation of a lottery system to be eligible for short-
term rental property registration;
(3) Use of zoning requirements to prohibit or limit short-
term rental properties in areas that are zoned to allow for
residential use;
(4) Restricting the number of short-term rental properties
a person may operate;
(5) A requirement that an owner of a short-term rental
property occupy the short-term rental property.
(C) A local government may require registration or
licensing of short-term rental properties. Any fee associated
with a registration or licensing of a short-term rental property
is subject to both of the following:
(1) The amount of the fee shall not exceed twenty dollars
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per year for each short-term rental property.
(2) Fees collected by the local government shall be used
only for the enforcement of regulations on short-term rental
properties.
Sec. 5739.01. As used in this chapter:
(A) "Person" includes individuals, receivers, assignees,
trustees in bankruptcy, estates, firms, partnerships,
associations, joint-stock companies, joint ventures, clubs,
societies, corporations, the state and its political
subdivisions, and combinations of individuals of any form.
(B) "Sale" and "selling" include all of the following
transactions for a consideration in any manner, whether
absolutely or conditionally, whether for a price or rental, in
money or by exchange, and by any means whatsoever:
(1) All transactions by which title or possession, or
both, of tangible personal property, is or is to be transferred,
or a license to use or consume tangible personal property is or
is to be granted;
(2) All transactions by which lodging by a hotel is or is
to be furnished to transient guests;
(3) All transactions by which:
(a) An item of tangible personal property is or is to be
repaired, except property, the purchase of which would not be
subject to the tax imposed by section 5739.02 of the Revised
Code;
(b) An item of tangible personal property is or is to be
installed, except property, the purchase of which would not be
subject to the tax imposed by section 5739.02 of the Revised
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Code or property that is or is to be incorporated into and will
become a part of a production, transmission, transportation, or
distribution system for the delivery of a public utility
service;
(c) The service of washing, cleaning, waxing, polishing,
or painting a motor vehicle is or is to be furnished;
(d) Laundry and dry cleaning services are or are to be
provided;
(e) Automatic data processing, computer services, or
electronic information services are or are to be provided for
use in business when the true object of the transaction is the
receipt by the consumer of automatic data processing, computer
services, or electronic information services rather than the
receipt of personal or professional services to which automatic
data processing, computer services, or electronic information
services are incidental or supplemental. Notwithstanding any
other provision of this chapter, such transactions that occur
between members of an affiliated group are not sales. An
"affiliated group" means two or more persons related in such a
way that one person owns or controls the business operation of
another member of the group. In the case of corporations with
stock, one corporation owns or controls another if it owns more
than fifty per cent of the other corporation's common stock with
voting rights.
(f) Telecommunications service, including prepaid calling
service, prepaid wireless calling service, or ancillary service,
is or is to be provided, but not including coin-operated
telephone service;
(g) Landscaping and lawn care service is or is to be
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provided;
(h) Private investigation and security service is or is to
be provided;
(i) Information services or tangible personal property is
provided or ordered by means of a nine hundred telephone call;
(j) Building maintenance and janitorial service is or is
to be provided;
(k) Exterminating service is or is to be provided;
(l) Physical fitness facility service is or is to be
provided;
(m) Recreation and sports club service is or is to be
provided;
(n) Satellite broadcasting service is or is to be
provided;
(o) Personal care service is or is to be provided to an
individual. As used in this division, "personal care service"
includes skin care, the application of cosmetics, manicuring,
pedicuring, hair removal, tattooing, body piercing, tanning,
massage, and other similar services. "Personal care service"
does not include a service provided by or on the order of a
licensed physician, certified nurse-midwife, clinical nurse
specialist, certified nurse practitioner, or chiropractor, or
the cutting, coloring, or styling of an individual's hair.
(p) The transportation of persons by motor vehicle or
aircraft is or is to be provided, when the transportation is
entirely within this state, except for transportation provided
by an ambulance service, by a transit bus, as defined in section
5735.01 of the Revised Code, and transportation provided by a
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citizen of the United States holding a certificate of public
convenience and necessity issued under 49 U.S.C. 41102;
(q) Motor vehicle towing service is or is to be provided.
As used in this division, "motor vehicle towing service" means
the towing or conveyance of a wrecked, disabled, or illegally
parked motor vehicle.
(r) Snow removal service is or is to be provided. As used
in this division, "snow removal service" means the removal of
snow by any mechanized means, but does not include the providing
of such service by a person that has less than five thousand
dollars in sales of such service during the calendar year.
(s) Electronic publishing service is or is to be provided
to a consumer for use in business, except that such transactions
occurring between members of an affiliated group, as defined in
division (B)(3)(e) of this section, are not sales.
(4) All transactions by which printed, imprinted,
overprinted, lithographic, multilithic, blueprinted,
photostatic, or other productions or reproductions of written or
graphic matter are or are to be furnished or transferred;
(5) The production or fabrication of tangible personal
property for a consideration for consumers who furnish either
directly or indirectly the materials used in the production of
fabrication work; and include the furnishing, preparing, or
serving for a consideration of any tangible personal property
consumed on the premises of the person furnishing, preparing, or
serving such tangible personal property. Except as provided in
section 5739.03 of the Revised Code, a construction contract
pursuant to which tangible personal property is or is to be
incorporated into a structure or improvement on and becoming a
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part of real property is not a sale of such tangible personal
property. The construction contractor is the consumer of such
tangible personal property, provided that the sale and
installation of carpeting, the sale and installation of
agricultural land tile, the sale and erection or installation of
portable grain bins, or the provision of landscaping and lawn
care service and the transfer of property as part of such
service is never a construction contract.
As used in division (B)(5) of this section:
(a) "Agricultural land tile" means fired clay or concrete
tile, or flexible or rigid perforated plastic pipe or tubing,
incorporated or to be incorporated into a subsurface drainage
system appurtenant to land used or to be used primarily in
production by farming, agriculture, horticulture, or
floriculture. The term does not include such materials when they
are or are to be incorporated into a drainage system appurtenant
to a building or structure even if the building or structure is
used or to be used in such production.
(b) "Portable grain bin" means a structure that is used or
to be used by a person engaged in farming or agriculture to
shelter the person's grain and that is designed to be
disassembled without significant damage to its component parts.
(6) All transactions in which all of the shares of stock
of a closely held corporation are transferred, or an ownership
interest in a pass-through entity, as defined in section 5733.04
of the Revised Code, is transferred, if the corporation or pass-
through entity is not engaging in business and its entire assets
consist of boats, planes, motor vehicles, or other tangible
personal property operated primarily for the use and enjoyment
of the shareholders or owners;
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(7) All transactions in which a warranty, maintenance or
service contract, or similar agreement by which the vendor of
the warranty, contract, or agreement agrees to repair or
maintain the tangible personal property of the consumer is or is
to be provided;
(8) The transfer of copyrighted motion picture films used
solely for advertising purposes, except that the transfer of
such films for exhibition purposes is not a sale;
(9) All transactions by which tangible personal property
is or is to be stored, except such property that the consumer of
the storage holds for sale in the regular course of business;
(10) All transactions in which "guaranteed auto
protection" is provided whereby a person promises to pay to the
consumer the difference between the amount the consumer receives
from motor vehicle insurance and the amount the consumer owes to
a person holding title to or a lien on the consumer's motor
vehicle in the event the consumer's motor vehicle suffers a
total loss under the terms of the motor vehicle insurance policy
or is stolen and not recovered, if the protection and its price
are included in the purchase or lease agreement;
(11)(a) Except as provided in division (B)(11)(b) of this
section, all transactions by which health care services are paid
for, reimbursed, provided, delivered, arranged for, or otherwise
made available by a medicaid health insuring corporation
pursuant to the corporation's contract with the state.
(b) If the centers for medicare and medicaid services of
the United States department of health and human services
determines that the taxation of transactions described in
division (B)(11)(a) of this section constitutes an impermissible
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health care-related tax under the "Social Security Act," section
1903(w), 42 U.S.C. 1396b(w), and regulations adopted thereunder,
the medicaid director shall notify the tax commissioner of that
determination. Beginning with the first day of the month
following that notification, the transactions described in
division (B)(11)(a) of this section are not sales for the
purposes of this chapter or Chapter 5741. of the Revised Code.
The tax commissioner shall order that the collection of taxes
under sections 5739.02, 5739.021, 5739.023, 5739.026, 5741.02,
5741.021, 5741.022, and 5741.023 of the Revised Code shall cease
for transactions occurring on or after that date.
(12) All transactions by which a specified digital product
is provided for permanent use or less than permanent use,
regardless of whether continued payment is required.
(13) All transactions by a delivery network company for
the company's delivery network services, provided the company
has a waiver issued under section 5741.072 of the Revised Code.
Except as provided in this section, "sale" and "selling"
do not include transfers of interest in leased property where
the original lessee and the terms of the original lease
agreement remain unchanged, or professional, insurance, or
personal service transactions that involve the transfer of
tangible personal property as an inconsequential element, for
which no separate charges are made.
(C) "Vendor" means the person providing the service or by
whom the transfer effected or license given by a sale is or is
to be made or given and, for sales described in division (B)(3)
(i) of this section, the telecommunications service vendor that
provides the nine hundred telephone service; if two or more
persons are engaged in business at the same place of business
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under a single trade name in which all collections on account of
sales by each are made, such persons shall constitute a single
vendor.
Physicians, certified nurse-midwives, clinical nurse
specialists, certified nurse practitioners, dentists, hospitals,
and veterinarians who are engaged in selling tangible personal
property as received from others, such as eyeglasses,
mouthwashes, dentifrices, or similar articles, are vendors.
Veterinarians who are engaged in transferring to others for a
consideration drugs, the dispensing of which does not require an
order of a licensed veterinarian, physician, certified nurse-
midwife, clinical nurse specialist, or certified nurse
practitioner under federal law, are vendors.
The operator of any peer-to-peer car sharing program shall
be considered to be the vendor.
(D)(1) "Consumer" means the person for whom the service is
provided, to whom the transfer effected or license given by a
sale is or is to be made or given, to whom the service described
in division (B)(3)(f) or (i) of this section is charged, or to
whom the admission is granted.
(2) Physicians, certified nurse-midwives, clinical nurse
specialists, certified nurse practitioners, dentists, hospitals,
and blood banks operated by nonprofit institutions and persons
licensed to practice veterinary medicine, surgery, and dentistry
are consumers of all tangible personal property and services
purchased by them in connection with the practice of medicine,
dentistry, the rendition of hospital or blood bank service, or
the practice of veterinary medicine, surgery, and dentistry. In
addition to being consumers of drugs administered by them or by
their assistants according to their direction, veterinarians
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also are consumers of drugs that under federal law may be
dispensed only by or upon the order of a licensed veterinarian,
physician, certified nurse-midwife, clinical nurse specialist,
or certified nurse practitioner, when transferred by them to
others for a consideration to provide treatment to animals as
directed by the veterinarian.
(3) A person who performs a facility management, or
similar service contract for a contractee is a consumer of all
tangible personal property and services purchased for use in
connection with the performance of such contract, regardless of
whether title to any such property vests in the contractee. The
purchase of such property and services is not subject to the
exception for resale under division (E) of this section.
(4)(a) In the case of a person who purchases printed
matter for the purpose of distributing it or having it
distributed to the public or to a designated segment of the
public, free of charge, that person is the consumer of that
printed matter, and the purchase of that printed matter for that
purpose is a sale.
(b) In the case of a person who produces, rather than
purchases, printed matter for the purpose of distributing it or
having it distributed to the public or to a designated segment
of the public, free of charge, that person is the consumer of
all tangible personal property and services purchased for use or
consumption in the production of that printed matter. That
person is not entitled to claim exemption under division (B)(42)
(f) of section 5739.02 of the Revised Code for any material
incorporated into the printed matter or any equipment, supplies,
or services primarily used to produce the printed matter.
(c) The distribution of printed matter to the public or to
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a designated segment of the public, free of charge, is not a
sale to the members of the public to whom the printed matter is
distributed or to any persons who purchase space in the printed
matter for advertising or other purposes.
(5) A person who makes sales of any of the services listed
in division (B)(3) of this section is the consumer of any
tangible personal property used in performing the service. The
purchase of that property is not subject to the resale exception
under division (E) of this section.
(6) A person who engages in highway transportation for
hire is the consumer of all packaging materials purchased by
that person and used in performing the service, except for
packaging materials sold by such person in a transaction
separate from the service.
(7) In the case of a transaction for health care services
under division (B)(11) of this section, a medicaid health
insuring corporation is the consumer of such services. The
purchase of such services by a medicaid health insuring
corporation is not subject to the exception for resale under
division (E) of this section or to the exemptions provided under
divisions (B)(12), (18), (19), and (22) of section 5739.02 of
the Revised Code.
(E) "Retail sale" and "sales at retail" include all sales,
except those in which the purpose of the consumer is to resell
the thing transferred or benefit of the service provided, by a
person engaging in business, in the form in which the same is,
or is to be, received by the person.
(F) "Business" includes any activity engaged in by any
person with the object of gain, benefit, or advantage, either
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As Introduced
direct or indirect. "Business" does not include the activity of
a person in managing and investing the person's own funds.
(G) "Engaging in business" means commencing, conducting,
or continuing in business, and liquidating a business when the
liquidator thereof holds itself out to the public as conducting
such business. Making a casual sale is not engaging in business.
(H)(1)(a) "Price," except as provided in divisions (H)(2),
(3), and (4) of this section, means the total amount of
consideration, including cash, credit, property, and services,
for which tangible personal property or services are sold,
leased, or rented, valued in money, whether received in money or
otherwise, without any deduction for any of the following:
(i) The vendor's cost of the property sold;
(ii) The cost of materials used, labor or service costs,
interest, losses, all costs of transportation to the vendor, all
taxes imposed on the vendor, including the tax imposed under
Chapter 5751. of the Revised Code, and any other expense of the
vendor;
(iii) Charges by the vendor for any services necessary to
complete the sale;
(iv) Delivery charges. As used in this division, "delivery
charges" means charges by the vendor for preparation and
delivery to a location designated by the consumer of tangible
personal property or a service, including transportation,
shipping, postage, handling, crating, and packing.
(v) Installation charges;
(vi) Credit for any trade-in.
(b) "Price" includes consideration received by the vendor
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697 S. B. No. 104 Page 25
As Introduced
from a third party, if the vendor actually receives the
consideration from a party other than the consumer, and the
consideration is directly related to a price reduction or
discount on the sale; the vendor has an obligation to pass the
price reduction or discount through to the consumer; the amount
of the consideration attributable to the sale is fixed and
determinable by the vendor at the time of the sale of the item
to the consumer; and one of the following criteria is met:
(i) The consumer presents a coupon, certificate, or other
document to the vendor to claim a price reduction or discount
where the coupon, certificate, or document is authorized,
distributed, or granted by a third party with the understanding
that the third party will reimburse any vendor to whom the
coupon, certificate, or document is presented;
(ii) The consumer identifies the consumer's self to the
seller as a member of a group or organization entitled to a
price reduction or discount. A preferred customer card that is
available to any patron does not constitute membership in such a
group or organization.
(iii) The price reduction or discount is identified as a
third party price reduction or discount on the invoice received
by the consumer, or on a coupon, certificate, or other document
presented by the consumer.
(c) "Price" does not include any of the following:
(i) Discounts, including cash, term, or coupons that are
not reimbursed by a third party that are allowed by a vendor and
taken by a consumer on a sale;
(ii) Interest, financing, and carrying charges from credit
extended on the sale of tangible personal property or services,
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726 S. B. No. 104 Page 26
As Introduced
if the amount is separately stated on the invoice, bill of sale,
or similar document given to the purchaser;
(iii) Any taxes legally imposed directly on the consumer
that are separately stated on the invoice, bill of sale, or
similar document given to the consumer. For the purpose of this
division, the tax imposed under Chapter 5751. of the Revised
Code is not a tax directly on the consumer, even if the tax or a
portion thereof is separately stated.
(iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of
this section, any discount allowed by an automobile manufacturer
to its employee, or to the employee of a supplier, on the
purchase of a new motor vehicle from a new motor vehicle dealer
in this state.
(v) The dollar value of a gift card that is not sold by a
vendor or purchased by a consumer and that is redeemed by the
consumer in purchasing tangible personal property or services if
the vendor is not reimbursed and does not receive compensation
from a third party to cover all or part of the gift card value.
For the purposes of this division, a gift card is not sold by a
vendor or purchased by a consumer if it is distributed pursuant
to an awards, loyalty, or promotional program. Past and present
purchases of tangible personal property or services by the
consumer shall not be treated as consideration exchanged for a
gift card.
(2) In the case of a sale of any new motor vehicle by a
new motor vehicle dealer, as defined in section 4517.01 of the
Revised Code, in which another motor vehicle is accepted by the
dealer as part of the consideration received, "price" has the
same meaning as in division (H)(1) of this section, reduced by
the credit afforded the consumer by the dealer for the motor
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756 S. B. No. 104 Page 27
As Introduced
vehicle received in trade.
(3) In the case of a sale of any watercraft or outboard
motor by a watercraft dealer licensed in accordance with section
1547.543 of the Revised Code, in which another watercraft,
watercraft and trailer, or outboard motor is accepted by the
dealer as part of the consideration received, "price" has the
same meaning as in division (H)(1) of this section, reduced by
the credit afforded the consumer by the dealer for the
watercraft, watercraft and trailer, or outboard motor received
in trade. As used in this division, "watercraft" includes an
outdrive unit attached to the watercraft.
(4) In the case of transactions for health care services
under division (B)(11) of this section, "price" means the amount
of managed care premiums received each month by a medicaid
health insuring corporation.
(I) "Receipts" means the total amount of the prices of the
sales of vendors, provided that the dollar value of gift cards
distributed pursuant to an awards, loyalty, or promotional
program, and cash discounts allowed and taken on sales at the
time they are consummated are not included, minus any amount
deducted as a bad debt pursuant to section 5739.121 of the
Revised Code. "Receipts" does not include the sale price of
property returned or services rejected by consumers when the
full sale price and tax are refunded either in cash or by
credit.
(J) "Place of business" means any location at which a
person engages in business.
(K) "Premises" includes any real property or portion
thereof upon which any person engages in selling tangible
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785 S. B. No. 104 Page 28
As Introduced
personal property at retail or making retail sales and also
includes any real property or portion thereof designated for, or
devoted to, use in conjunction with the business engaged in by
such person.
(L) "Casual sale" means a sale of an item of tangible
personal property that was obtained by the person making the
sale, through purchase or otherwise, for the person's own use
and was previously subject to any state's taxing jurisdiction on
its sale or use, and includes such items acquired for the
seller's use that are sold by an auctioneer employed directly by
the person for such purpose, provided the location of such sales
is not the auctioneer's permanent place of business. As used in
this division, "permanent place of business" includes any
location where such auctioneer has conducted more than two
auctions during the year.
(M) "Hotel" means every establishment kept, used,
maintained, advertised, or held out to the public to be a place
where sleeping accommodations are offered to guests, in which
five or more rooms are used for the accommodation of such
guests, whether the rooms are in one or several structures ,
except as otherwise provided in section 5739.091 of the Revised
Code.
(N) "Transient guests" means persons occupying a room or
rooms for sleeping accommodations for less than thirty
consecutive days.
(O) "Making retail sales" means the effecting of
transactions wherein one party is obligated to pay the price and
the other party is obligated to provide a service or to transfer
title to or possession of the item sold. "Making retail sales"
does not include the preliminary acts of promoting or soliciting
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815 S. B. No. 104 Page 29
As Introduced
the retail sales, other than the distribution of printed matter
which displays or describes and prices the item offered for
sale, nor does it include delivery of a predetermined quantity
of tangible personal property or transportation of property or
personnel to or from a place where a service is performed.
(P) "Used directly in the rendition of a public utility
service" means that property that is to be incorporated into and
will become a part of the consumer's production, transmission,
transportation, or distribution system and that retains its
classification as tangible personal property after such
incorporation; fuel or power used in the production,
transmission, transportation, or distribution system; and
tangible personal property used in the repair and maintenance of
the production, transmission, transportation, or distribution
system, including only such motor vehicles as are specially
designed and equipped for such use. Tangible personal property
and services used primarily in providing highway transportation
for hire are not used directly in the rendition of a public
utility service. In this definition, "public utility" includes a
citizen of the United States holding, and required to hold, a
certificate of public convenience and necessity issued under 49
U.S.C. 41102.
(Q) "Refining" means removing or separating a desirable
product from raw or contaminated materials by distillation or
physical, mechanical, or chemical processes.
(R) "Assembly" and "assembling" mean attaching or fitting
together parts to form a product, but do not include packaging a
product.
(S) "Manufacturing operation" means a process in which
materials are changed, converted, or transformed into a
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As Introduced
different state or form from which they previously existed and
includes refining materials, assembling parts, and preparing raw
materials and parts by mixing, measuring, blending, or otherwise
committing such materials or parts to the manufacturing process.
"Manufacturing operation" does not include packaging.
(T) "Fiscal officer" means, with respect to a regional
transit authority, the secretary-treasurer thereof, and with
respect to a county that is a transit authority, the fiscal
officer of the county transit board if one is appointed pursuant
to section 306.03 of the Revised Code or the county auditor if
the board of county commissioners operates the county transit
system.
(U) "Transit authority" means a regional transit authority
created pursuant to section 306.31 of the Revised Code or a
county in which a county transit system is created pursuant to
section 306.01 of the Revised Code. For the purposes of this
chapter, a transit authority must extend to at least the entire
area of a single county. A transit authority that includes
territory in more than one county must include all the area of
the most populous county that is a part of such transit
authority. County population shall be measured by the most
recent census taken by the United States census bureau.
(V) "Legislative authority" means, with respect to a
regional transit authority, the board of trustees thereof, and
with respect to a county that is a transit authority, the board
of county commissioners.
(W) "Territory of the transit authority" means all of the
area included within the territorial boundaries of a transit
authority as they from time to time exist. Such territorial
boundaries must at all times include all the area of a single
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As Introduced
county or all the area of the most populous county that is a
part of such transit authority. County population shall be
measured by the most recent census taken by the United States
census bureau.
(X) "Providing a service" means providing or furnishing
anything described in division (B)(3) of this section for
consideration.
(Y)(1)(a) "Automatic data processing" means processing of
others' data, including keypunching or similar data entry
services together with verification thereof, or providing access
to computer equipment for the purpose of processing data.
(b) "Computer services" means providing services
consisting of specifying computer hardware configurations and
evaluating technical processing characteristics, computer
programming, and training of computer programmers and operators,
provided in conjunction with and to support the sale, lease, or
operation of taxable computer equipment or systems.
(c) "Electronic information services" means providing
access to computer equipment by means of telecommunications
equipment for the purpose of either of the following:
(i) Examining or acquiring data stored in or accessible to
the computer equipment;
(ii) Placing data into the computer equipment to be
retrieved by designated recipients with access to the computer
equipment.
"Electronic information services" does not include
electronic publishing.
(d) "Automatic data processing, computer services, or
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903 S. B. No. 104 Page 32
As Introduced
electronic information services" shall not include personal or
professional services.
(2) As used in divisions (B)(3)(e) and (Y)(1) of this
section, "personal and professional services" means all services
other than automatic data processing, computer services, or
electronic information services, including but not limited to:
(a) Accounting and legal services such as advice on tax
matters, asset management, budgetary matters, quality control,
information security, and auditing and any other situation where
the service provider receives data or information and studies,
alters, analyzes, interprets, or adjusts such material;
(b) Analyzing business policies and procedures;
(c) Identifying management information needs;
(d) Feasibility studies, including economic and technical
analysis of existing or potential computer hardware or software
needs and alternatives;
(e) Designing policies, procedures, and custom software
for collecting business information, and determining how data
should be summarized, sequenced, formatted, processed,
controlled, and reported so that it will be meaningful to
management;
(f) Developing policies and procedures that document how
business events and transactions are to be authorized, executed,
and controlled;
(g) Testing of business procedures;
(h) Training personnel in business procedure applications;
(i) Providing credit information to users of such
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As Introduced
information by a consumer reporting agency, as defined in the
"Fair Credit Reporting Act," 84 Stat. 1114, 1129 (1970), 15
U.S.C. 1681a(f), or as hereafter amended, including but not
limited to gathering, organizing, analyzing, recording, and
furnishing such information by any oral, written, graphic, or
electronic medium;
(j) Providing debt collection services by any oral,
written, graphic, or electronic means;
(k) Providing digital advertising services;
(l) Providing services to electronically file any federal,
state, or local individual income tax return, report, or other
related document or schedule with a federal, state, or local
government entity or to electronically remit a payment of any
such individual income tax to such an entity. For the purpose of
this division, "individual income tax" does not include federal,
state, or local taxes withheld by an employer from an employee's
compensation.
The services listed in divisions (Y)(2)(a) to (l) of this
section are not automatic data processing or computer services.
(Z) "Highway transportation for hire" means the
transportation of personal property belonging to others for
consideration by any of the following:
(1) The holder of a permit or certificate issued by this
state or the United States authorizing the holder to engage in
transportation of personal property belonging to others for
consideration over or on highways, roadways, streets, or any
similar public thoroughfare;
(2) A person who engages in the transportation of personal
property belonging to others for consideration over or on
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959 S. B. No. 104 Page 34
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highways, roadways, streets, or any similar public thoroughfare
but who could not have engaged in such transportation on
December 11, 1985, unless the person was the holder of a permit
or certificate of the types described in division (Z)(1) of this
section;
(3) A person who leases a motor vehicle to and operates it
for a person described by division (Z)(1) or (2) of this
section.
"Highway transportation for hire" does not include
delivery network services.
(AA)(1) "Telecommunications service" means the electronic
transmission, conveyance, or routing of voice, data, audio,
video, or any other information or signals to a point, or
between or among points. "Telecommunications service" includes
such transmission, conveyance, or routing in which computer
processing applications are used to act on the form, code, or
protocol of the content for purposes of transmission,
conveyance, or routing without regard to whether the service is
referred to as voice-over internet protocol service or is
classified by the federal communications commission as enhanced
or value-added. "Telecommunications service" does not include
any of the following:
(a) Data processing and information services that allow
data to be generated, acquired, stored, processed, or retrieved
and delivered by an electronic transmission to a consumer where
the consumer's primary purpose for the underlying transaction is
the processed data or information;
(b) Installation or maintenance of wiring or equipment on
a customer's premises;
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As Introduced
(c) Tangible personal property;
(d) Advertising, including directory advertising;
(e) Billing and collection services provided to third
parties;
(f) Internet access service;
(g) Radio and television audio and video programming
services, regardless of the medium, including the furnishing of
transmission, conveyance, and routing of such services by the
programming service provider. Radio and television audio and
video programming services include, but are not limited to,
cable service, as defined in 47 U.S.C. 522(6), and audio and
video programming services delivered by commercial mobile radio
service providers, as defined in 47 C.F.R. 20.3;
(h) Ancillary service;
(i) Digital products delivered electronically, including
software, music, video, reading materials, or ring tones.
(2) "Ancillary service" means a service that is associated
with or incidental to the provision of telecommunications
service, including conference bridging service, detailed
telecommunications billing service, directory assistance,
vertical service, and voice mail service. As used in this
division:
(a) "Conference bridging service" means an ancillary
service that links two or more participants of an audio or video
conference call, including providing a telephone number.
"Conference bridging service" does not include
telecommunications services used to reach the conference bridge.
(b) "Detailed telecommunications billing service" means an
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1016 S. B. No. 104 Page 36
As Introduced
ancillary service of separately stating information pertaining
to individual calls on a customer's billing statement.
(c) "Directory assistance" means an ancillary service of
providing telephone number or address information.
(d) "Vertical service" means an ancillary service that is
offered in connection with one or more telecommunications
services, which offers advanced calling features that allow
customers to identify callers and manage multiple calls and call
connections, including conference bridging service.
(e) "Voice mail service" means an ancillary service that
enables the customer to store, send, or receive recorded
messages. "Voice mail service" does not include any vertical
services that the customer may be required to have in order to
utilize the voice mail service.
(3) "900 service" means an inbound toll telecommunications
service purchased by a subscriber that allows the subscriber's
customers to call in to the subscriber's prerecorded
announcement or live service, and which is typically marketed
under the name "900 service" and any subsequent numbers
designated by the federal communications commission. "900
service" does not include the charge for collection services
provided by the seller of the telecommunications service to the
subscriber, or services or products sold by the subscriber to
the subscriber's customer.
(4) "Prepaid calling service" means the right to access
exclusively telecommunications services, which must be paid for
in advance and which enables the origination of calls using an
access number or authorization code, whether manually or
electronically dialed, and that is sold in predetermined units
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As Introduced
or dollars of which the number declines with use in a known
amount.
(5) "Prepaid wireless calling service" means a
telecommunications service that provides the right to utilize
mobile telecommunications service as well as other non-
telecommunications services, including the download of digital
products delivered electronically, and content and ancillary
services, that must be paid for in advance and that is sold in
predetermined units or dollars of which the number declines with
use in a known amount.
(6) "Value-added non-voice data service" means a
telecommunications service in which computer processing
applications are used to act on the form, content, code, or
protocol of the information or data primarily for a purpose
other than transmission, conveyance, or routing.
(7) "Coin-operated telephone service" means a
telecommunications service paid for by inserting money into a
telephone accepting direct deposits of money to operate.
(8) "Customer" has the same meaning as in section 5739.034
of the Revised Code.
(BB) "Laundry and dry cleaning services" means removing
soil or dirt from towels, linens, articles of clothing, or other
fabric items that belong to others and supplying towels, linens,
articles of clothing, or other fabric items. "Laundry and dry
cleaning services" does not include the provision of self-
service facilities for use by consumers to remove soil or dirt
from towels, linens, articles of clothing, or other fabric
items.
(CC) "Magazines distributed as controlled circulation
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As Introduced
publications" means magazines containing at least twenty-four
pages, at least twenty-five per cent editorial content, issued
at regular intervals four or more times a year, and circulated
without charge to the recipient, provided that such magazines
are not owned or controlled by individuals or business concerns
which conduct such publications as an auxiliary to, and
essentially for the advancement of the main business or calling
of, those who own or control them.
(DD) "Landscaping and lawn care service" means the
services of planting, seeding, sodding, removing, cutting,
trimming, pruning, mulching, aerating, applying chemicals,
watering, fertilizing, and providing similar services to
establish, promote, or control the growth of trees, shrubs,
flowers, grass, ground cover, and other flora, or otherwise
maintaining a lawn or landscape grown or maintained by the owner
for ornamentation or other nonagricultural purpose. However,
"landscaping and lawn care service" does not include the
providing of such services by a person who has less than five
thousand dollars in sales of such services during the calendar
year.
(EE) "Private investigation and security service" means
the performance of any activity for which the provider of such
service is required to be licensed pursuant to Chapter 4749. of
the Revised Code, or would be required to be so licensed in
performing such services in this state, and also includes the
services of conducting polygraph examinations and of monitoring
or overseeing the activities on or in, or the condition of, the
consumer's home, business, or other facility by means of
electronic or similar monitoring devices. "Private investigation
and security service" does not include special duty services
provided by off-duty police officers, deputy sheriffs, and other
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1105 S. B. No. 104 Page 39
As Introduced
peace officers regularly employed by the state or a political
subdivision.
(FF) "Information services" means providing conversation,
giving consultation or advice, playing or making a voice or
other recording, making or keeping a record of the number of
callers, and any other service provided to a consumer by means
of a nine hundred telephone call, except when the nine hundred
telephone call is the means by which the consumer makes a
contribution to a recognized charity.
(GG) "Research and development" means designing, creating,
or formulating new or enhanced products, equipment, or
manufacturing processes, and also means conducting scientific or
technological inquiry and experimentation in the physical
sciences with the goal of increasing scientific knowledge which
may reveal the bases for new or enhanced products, equipment, or
manufacturing processes.
(HH) "Qualified research and development equipment" means
either of the following:
(1) Capitalized tangible personal property, and leased
personal property that would be capitalized if purchased, used
by a person primarily to perform research and development;
(2) Any tangible personal property used by a megaproject
operator primarily to perform research and development at the
site of a megaproject that satisfies the criteria described in
division (A)(11)(a)(ii) of section 122.17 of the Revised Code
during the period that the megaproject operator has an agreement
for such megaproject with the tax credit authority under
division (D) of that section that remains in effect and has not
expired or been terminated.
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1134 S. B. No. 104 Page 40
As Introduced
"Qualified research and development equipment" does not
include tangible personal property primarily used in testing, as
defined in division (A)(4) of section 5739.011 of the Revised
Code, or used for recording or storing test results, unless such
property is primarily used by the consumer in testing the
product, equipment, or manufacturing process being created,
designed, or formulated by the consumer in the research and
development activity or in recording or storing such test
results.
(II) "Building maintenance and janitorial service" means
cleaning the interior or exterior of a building and any tangible
personal property located therein or thereon, including any
services incidental to such cleaning for which no separate
charge is made. However, "building maintenance and janitorial
service" does not include the providing of such service by a
person who has less than five thousand dollars in sales of such
service during the calendar year. As used in this division,
"cleaning" does not include sanitation services necessary for an
establishment described in 21 U.S.C. 608 to comply with rules
and regulations adopted pursuant to that section.
(JJ) "Exterminating service" means eradicating or
attempting to eradicate vermin infestations from a building or
structure, or the area surrounding a building or structure, and
includes activities to inspect, detect, or prevent vermin
infestation of a building or structure.
(KK) "Physical fitness facility service" means all
transactions by which a membership is granted, maintained, or
renewed, including initiation fees, membership dues, renewal
fees, monthly minimum fees, and other similar fees and dues, by
a physical fitness facility such as an athletic club, health
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1164 S. B. No. 104 Page 41
As Introduced
spa, or gymnasium, which entitles the member to use the facility
for physical exercise.
(LL) "Recreation and sports club service" means all
transactions by which a membership is granted, maintained, or
renewed, including initiation fees, membership dues, renewal
fees, monthly minimum fees, and other similar fees and dues, by
a recreation and sports club, which entitles the member to use
the facilities of the organization. "Recreation and sports club"
means an organization that has ownership of, or controls or
leases on a continuing, long-term basis, the facilities used by
its members and includes an aviation club, gun or shooting club,
yacht club, card club, swimming club, tennis club, golf club,
country club, riding club, amateur sports club, or similar
organization.
(MM) "Livestock" means farm animals commonly raised for
food, food production, or other agricultural purposes,
including, but not limited to, cattle, sheep, goats, swine,
poultry, and captive deer. "Livestock" does not include
invertebrates, amphibians, reptiles, domestic pets, animals for
use in laboratories or for exhibition, or other animals not
commonly raised for food or food production.
(NN) "Livestock structure" means a building or structure
used exclusively for the housing, raising, feeding, or
sheltering of livestock, and includes feed storage or handling
structures and structures for livestock waste handling.
(OO) "Horticulture" means the growing, cultivation, and
production of flowers, fruits, herbs, vegetables, sod,
mushrooms, and nursery stock. As used in this division, "nursery
stock" has the same meaning as in section 927.51 of the Revised
Code.
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1194 S. B. No. 104 Page 42
As Introduced
(PP) "Horticulture structure" means a building or
structure used exclusively for the commercial growing, raising,
or overwintering of horticultural products, and includes the
area used for stocking, storing, and packing horticultural
products when done in conjunction with the production of those
products.
(QQ) "Newspaper" means an unbound publication bearing a
title or name that is regularly published, at least as
frequently as biweekly, and distributed from a fixed place of
business to the public in a specific geographic area, and that
contains a substantial amount of news matter of international,
national, or local events of interest to the general public.
(RR)(1) "Feminine hygiene products" means tampons, panty
liners, menstrual cups, sanitary napkins, and other similar
tangible personal property designed for feminine hygiene in
connection with the human menstrual cycle, but does not include
grooming and hygiene products.
(2) "Grooming and hygiene products" means soaps and
cleaning solutions, shampoo, toothpaste, mouthwash,
antiperspirants, and sun tan lotions and screens, regardless of
whether any of these products are over-the-counter drugs.
(3) "Over-the-counter drugs" means a drug that contains a
label that identifies the product as a drug as required by 21
C.F.R. 201.66, which label includes a drug facts panel or a
statement of the active ingredients with a list of those
ingredients contained in the compound, substance, or
preparation.
(SS)(1) "Lease" or "rental" means any transfer of the
possession or control of tangible personal property for a fixed
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1223 S. B. No. 104 Page 43
As Introduced
or indefinite term, for consideration. "Lease" or "rental"
includes future options to purchase or extend, and agreements
described in 26 U.S.C. 7701(h)(1) covering motor vehicles and
trailers where the amount of consideration may be increased or
decreased by reference to the amount realized upon the sale or
disposition of the property. "Lease" or "rental" does not
include:
(a) A transfer of possession or control of tangible
personal property under a security agreement or a deferred
payment plan that requires the transfer of title upon completion
of the required payments;
(b) A transfer of possession or control of tangible
personal property under an agreement that requires the transfer
of title upon completion of required payments and payment of an
option price that does not exceed the greater of one hundred
dollars or one per cent of the total required payments;
(c) Providing tangible personal property along with an
operator for a fixed or indefinite period of time, if the
operator is necessary for the property to perform as designed.
For purposes of this division, the operator must do more than
maintain, inspect, or set up the tangible personal property.
(2) "Lease" and "rental," as defined in division (SS) of
this section, shall not apply to leases or rentals that exist
before June 26, 2003.
(3) "Lease" and "rental" have the same meaning as in
division (SS)(1) of this section regardless of whether a
transaction is characterized as a lease or rental under
generally accepted accounting principles, the Internal Revenue
Code, Title XIII of the Revised Code, or other federal, state,
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1252 S. B. No. 104 Page 44
As Introduced
or local laws.
(TT) "Mobile telecommunications service" has the same
meaning as in the "Mobile Telecommunications Sourcing Act," Pub.
L. No. 106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as
amended, and, on and after August 1, 2003, includes related fees
and ancillary services, including universal service fees,
detailed billing service, directory assistance, service
initiation, voice mail service, and vertical services, such as
caller ID and three-way calling.
(UU) "Certified service provider" has the same meaning as
in section 5740.01 of the Revised Code.
(VV) "Satellite broadcasting service" means the
distribution or broadcasting of programming or services by
satellite directly to the subscriber's receiving equipment
without the use of ground receiving or distribution equipment,
except the subscriber's receiving equipment or equipment used in
the uplink process to the satellite, and includes all service
and rental charges, premium channels or other special services,
installation and repair service charges, and any other charges
having any connection with the provision of the satellite
broadcasting service.
(WW) "Tangible personal property" means personal property
that can be seen, weighed, measured, felt, or touched, or that
is in any other manner perceptible to the senses. For purposes
of this chapter and Chapter 5741. of the Revised Code, "tangible
personal property" includes motor vehicles, electricity, water,
gas, steam, and prewritten computer software.
(XX) "Municipal gas utility" means a municipal corporation
that owns or operates a system for the distribution of natural
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1281 S. B. No. 104 Page 45
As Introduced
gas.
(YY) "Computer" means an electronic device that accepts
information in digital or similar form and manipulates it for a
result based on a sequence of instructions.
(ZZ) "Computer software" means a set of coded instructions
designed to cause a computer or automatic data processing
equipment to perform a task.
(AAA) "Delivered electronically" means delivery of
computer software from the seller to the purchaser by means
other than tangible storage media.
(BBB) "Prewritten computer software" means computer
software, including prewritten upgrades, that is not designed
and developed by the author or other creator to the
specifications of a specific purchaser. The combining of two or
more prewritten computer software programs or prewritten
portions thereof does not cause the combination to be other than
prewritten computer software. "Prewritten computer software"
includes software designed and developed by the author or other
creator to the specifications of a specific purchaser when it is
sold to a person other than the purchaser. If a person modifies
or enhances computer software of which the person is not the
author or creator, the person shall be deemed to be the author
or creator only of such person's modifications or enhancements.
Prewritten computer software or a prewritten portion thereof
that is modified or enhanced to any degree, where such
modification or enhancement is designed and developed to the
specifications of a specific purchaser, remains prewritten
computer software; provided, however, that where there is a
reasonable, separately stated charge or an invoice or other
statement of the price given to the purchaser for the
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1311 S. B. No. 104 Page 46
As Introduced
modification or enhancement, the modification or enhancement
shall not constitute prewritten computer software.
(CCC)(1) "Food" means substances, whether in liquid,
concentrated, solid, frozen, dried, or dehydrated form, that are
sold for ingestion or chewing by humans and are consumed for
their taste or nutritional value. "Food" does not include
alcoholic beverages, dietary supplements, soft drinks, or
tobacco.
(2) As used in division (CCC)(1) of this section:
(a) "Dietary supplements" means any product, other than
tobacco, that is intended to supplement the diet and that is
intended for ingestion in tablet, capsule, powder, softgel,
gelcap, or liquid form, or, if not intended for ingestion in
such a form, is not represented as conventional food for use as
a sole item of a meal or of the diet; that is required to be
labeled as a dietary supplement, identifiable by the "supplement
facts" box found on the label, as required by 21 C.F.R. 101.36;
and that contains one or more of the following dietary
ingredients:
(i) A vitamin;
(ii) A mineral;
(iii) An herb or other botanical;
(iv) An amino acid;
(v) A dietary substance for use by humans to supplement
the diet by increasing the total dietary intake;
(vi) A concentrate, metabolite, constituent, extract, or
combination of any ingredient described in divisions (CCC)(2)(a)
(i) to (v) of this section.
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1339 S. B. No. 104 Page 47
As Introduced
(b) "Soft drinks" means nonalcoholic beverages that
contain natural or artificial sweeteners. "Soft drinks" does not
include beverages that contain milk or milk products, soy, rice,
or similar milk substitutes, or that contains greater than fifty
per cent vegetable or fruit juice by volume.
(DDD) "Drug" means a compound, substance, or preparation,
and any component of a compound, substance, or preparation,
other than food, dietary supplements, or alcoholic beverages
that is recognized in the official United States pharmacopoeia,
official homeopathic pharmacopoeia of the United States, or
official national formulary, and supplements to them; is
intended for use in the diagnosis, cure, mitigation, treatment,
or prevention of disease; or is intended to affect the structure
or any function of the body.
(EEE) "Prescription" means an order, formula, or recipe
issued in any form of oral, written, electronic, or other means
of transmission by a duly licensed practitioner authorized by
the laws of this state to issue a prescription.
(FFF) "Durable medical equipment" means equipment,
including repair and replacement parts for such equipment, that
can withstand repeated use, is primarily and customarily used to
serve a medical purpose, generally is not useful to a person in
the absence of illness or injury, and is not worn in or on the
body. "Durable medical equipment" does not include mobility
enhancing equipment.
(GGG) "Mobility enhancing equipment" means equipment,
including repair and replacement parts for such equipment, that
is primarily and customarily used to provide or increase the
ability to move from one place to another and is appropriate for
use either in a home or a motor vehicle, that is not generally
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1369 S. B. No. 104 Page 48
As Introduced
used by persons with normal mobility, and that does not include
any motor vehicle or equipment on a motor vehicle normally
provided by a motor vehicle manufacturer. "Mobility enhancing
equipment" does not include durable medical equipment.
(HHH) "Prosthetic device" means a replacement, corrective,
or supportive device, including repair and replacement parts for
the device, worn on or in the human body to artificially replace
a missing portion of the body, prevent or correct physical
deformity or malfunction, or support a weak or deformed portion
of the body. As used in this division, before July 1, 2019,
"prosthetic device" does not include corrective eyeglasses,
contact lenses, or dental prosthesis. On or after July 1, 2019,
"prosthetic device" does not include dental prosthesis but does
include corrective eyeglasses or contact lenses.
(III)(1) "Fractional aircraft ownership program" means a
program in which persons within an affiliated group sell and
manage fractional ownership program aircraft, provided that at
least one hundred airworthy aircraft are operated in the program
and the program meets all of the following criteria:
(a) Management services are provided by at least one
program manager within an affiliated group on behalf of the
fractional owners.
(b) Each program aircraft is owned or possessed by at
least one fractional owner.
(c) Each fractional owner owns or possesses at least a
one-sixteenth interest in at least one fixed-wing program
aircraft.
(d) A dry-lease aircraft interchange arrangement is in
effect among all of the fractional owners.
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1398 S. B. No. 104 Page 49
As Introduced
(e) Multi-year program agreements are in effect regarding
the fractional ownership, management services, and dry-lease
aircraft interchange arrangement aspects of the program.
(2) As used in division (III)(1) of this section:
(a) "Affiliated group" has the same meaning as in division
(B)(3)(e) of this section.
(b) "Fractional owner" means a person that owns or
possesses at least a one-sixteenth interest in a program
aircraft and has entered into the agreements described in
division (III)(1)(e) of this section.
(c) "Fractional ownership program aircraft" or "program
aircraft" means a turbojet aircraft that is owned or possessed
by a fractional owner and that has been included in a dry-lease
aircraft interchange arrangement and agreement under divisions
(III)(1)(d) and (e) of this section, or an aircraft a program
manager owns or possesses primarily for use in a fractional
aircraft ownership program.
(d) "Management services" means administrative and
aviation support services furnished under a fractional aircraft
ownership program in accordance with a management services
agreement under division (III)(1)(e) of this section, and
offered by the program manager to the fractional owners,
including, at a minimum, the establishment and implementation of
safety guidelines; the coordination of the scheduling of the
program aircraft and crews; program aircraft maintenance;
program aircraft insurance; crew training for crews employed,
furnished, or contracted by the program manager or the
fractional owner; the satisfaction of record-keeping
requirements; and the development and use of an operations
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1427 S. B. No. 104 Page 50
As Introduced
manual and a maintenance manual for the fractional aircraft
ownership program.
(e) "Program manager" means the person that offers
management services to fractional owners pursuant to a
management services agreement under division (III)(1)(e) of this
section.
(JJJ) "Electronic publishing" means providing access to
one or more of the following primarily for business customers,
including the federal government or a state government or a
political subdivision thereof, to conduct research: news;
business, financial, legal, consumer, or credit materials;
editorials, columns, reader commentary, or features; photos or
images; archival or research material; legal notices, identity
verification, or public records; scientific, educational,
instructional, technical, professional, trade, or other literary
materials; or other similar information which has been gathered
and made available by the provider to the consumer in an
electronic format. Providing electronic publishing includes the
functions necessary for the acquisition, formatting, editing,
storage, and dissemination of data or information that is the
subject of a sale.
(KKK) "Medicaid health insuring corporation" means a
health insuring corporation that holds a certificate of
authority under Chapter 1751. of the Revised Code and is under
contract with the department of medicaid pursuant to section
5167.10 of the Revised Code.
(LLL) "Managed care premium" means any premium,
capitation, or other payment a medicaid health insuring
corporation receives for providing or arranging for the
provision of health care services to its members or enrollees
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1457 S. B. No. 104 Page 51
As Introduced
residing in this state.
(MMM) "Captive deer" means deer and other cervidae that
have been legally acquired, or their offspring, that are
privately owned for agricultural or farming purposes.
(NNN) "Gift card" means a document, card, certificate, or
other record, whether tangible or intangible, that may be
redeemed by a consumer for a dollar value when making a purchase
of tangible personal property or services.
(OOO) "Specified digital product" means an electronically
transferred digital audiovisual work, digital audio work, or
digital book.
As used in division (OOO) of this section:
(1) "Digital audiovisual work" means a series of related
images that, when shown in succession, impart an impression of
motion, together with accompanying sounds, if any.
(2) "Digital audio work" means a work that results from
the fixation of a series of musical, spoken, or other sounds,
including digitized sound files that are downloaded onto a
device and that may be used to alert the customer with respect
to a communication.
(3) "Digital book" means a work that is generally
recognized in the ordinary and usual sense as a book.
(4) "Electronically transferred" means obtained by the
purchaser by means other than tangible storage media.
(PPP) "Digital advertising services" means providing
access, by means of telecommunications equipment, to computer
equipment that is used to enter, upload, download, review,
manipulate, store, add, or delete data for the purpose of
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As Introduced
electronically displaying, delivering, placing, or transferring
promotional advertisements to potential customers about products
or services or about industry or business brands.
(QQQ) "Peer-to-peer car sharing program" has the same
meaning as in section 4516.01 of the Revised Code.
(RRR) "Megaproject" and "megaproject operator" have the
same meanings as in section 122.17 of the Revised Code.
(SSS)(1) "Diaper" means an absorbent garment worn by
humans who are incapable of, or have difficulty, controlling
their bladder or bowel movements.
(2) "Children's diaper" means a diaper marketed to be worn
by children.
(3) "Adult diaper" means a diaper other than a children's
diaper.
(TTT) "Sales tax holiday" means three or more dates on
which sales of all eligible tangible personal property are
exempt from the taxes levied under sections 5739.02, 5739.021,
5739.023, 5739.026, 5741.02, 5741.021, 5741.022, and 5741.023 of
the Revised Code.
(UUU) "Eligible tangible personal property" means any item
of tangible personal property that meets both of the following
requirements:
(1) The price of the item does not exceed five hundred
dollars;
(2) The item is not a watercraft or outboard motor
required to be titled pursuant to Chapter 1548. of the Revised
Code, a motor vehicle, an alcoholic beverage, tobacco, a vapor
product as defined in section 5743.01 of the Revised Code, or an
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1513 S. B. No. 104 Page 53
As Introduced
item that contains marijuana as defined in section 3796.01 of
the Revised Code.
(VVV) "Alcoholic beverages" means beverages that are
suitable for human consumption and contain one-half of one per
cent or more of alcohol by volume.
(WWW) "Tobacco" means cigarettes, cigars, chewing or pipe
tobacco, or any other item that contains tobacco.
(XXX)(1) "Delivery network company" means a person that
operates a business platform, including a web site or mobile
application, to facilitate delivery network services.
(2) "Delivery network courier" means an individual
connected to a consumer through a delivery network company and
who provides delivery network services to that consumer.
(3) "Delivery network services" means both of the
following when performed as part of a single transaction:
(a) Pickup of a local product by a delivery network
courier from a local merchant that is not under common ownership
or control of the delivery network company through which the
transaction was initiated, and which may include selection,
collection, and purchase of the local product;
(b) Delivery by the delivery network courier of that local
product to a location designated by the consumer that is not
more than seventy-five miles from the local merchant's place of
business where the pickup described in division (XXX)(3)(a) of
this section occurs.
(4) "Local merchant" means a person engaged in selling
local products from a temporary or fixed place of business in
this state, including a kitchen, restaurant, grocery store,
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1541 S. B. No. 104 Page 54
As Introduced
retail store, or convenience store.
(5) "Local product" means any tangible personal property,
including food, but excluding freight, mail, or a package to
which postage is affixed.
(YYY) "Short-term rental platform" means a person that
operates a business platform that uses any online-enabled
application, software, web site, or system to connect owners of
short-term rental properties to transient guests to enable the
lodging of guests for consideration.
(ZZZ) "Short-term rental property" has the same meaning as
in section 5325.01 of the Revised Code.
Sec. 5739.08. (A) A municipal corporation or township may
levy an excise tax for any lawful purpose not to exceed three
per cent on transactions by which lodging by a hotel or short-
term rental property is or is to be furnished to transient
guests in addition to the tax levied by section 5739.02 of the
Revised Code. If a municipal corporation or township repeals a
tax imposed under division (A) of this section, and a county in
which the municipal corporation or township has territory has a
tax imposed under division (M) of section 5739.09 of the Revised
Code in effect, the municipal corporation or township may not
reimpose its tax as long as that county tax remains in effect. A
municipal corporation or township in which a tax is levied under
division (B)(2) of section 351.021 of the Revised Code may not
increase the rate of its tax levied under division (A) of this
section to any rate that would cause the total taxes levied
under both of those divisions to exceed three per cent on any
lodging transaction within the municipal corporation or
township.
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1570 S. B. No. 104 Page 55
As Introduced
(B) The legislative authority of a municipal corporation
or the board of trustees of a township that is not wholly or
partly located in a county that has in effect a resolution
levying an excise tax pursuant to division (A) of section
5739.09 of the Revised Code may, by ordinance or resolution,
levy an additional excise tax not to exceed three per cent on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests. The
legislative authority of the municipal corporation or the board
of trustees of the township shall deposit at least fifty per
cent of the revenue from the tax levied pursuant to this
division into a separate fund, which shall be spent solely to
make contributions to convention and visitors' bureaus operating
within the county in which the municipal corporation or township
is wholly or partly located, and the balance of that revenue
shall be deposited in the general fund. The municipal
corporation or township shall establish all regulations
necessary to provide for the administration and allocation of
the tax. The regulations may prescribe the time for payment of
the tax, and may provide for the imposition of a penalty or
interest, or both, for late payments, provided that the penalty
does not exceed ten per cent of the amount of tax due, and the
rate at which interest accrues does not exceed the rate per
annum prescribed pursuant to section 5703.47 of the Revised
Code. The levy of a tax under this division is in addition to
any tax imposed on the same transaction by a municipal
corporation or a township under division (A) of this section.
(C)(1) As used in division (C) of this section, "cost" has
the same meaning as in section 351.01 of the Revised Code, and
"convention center" has the same meaning as in section 307.695
of the Revised Code.
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1601 S. B. No. 104 Page 56
As Introduced
(2) The legislative authority of the most populous
municipal corporation located wholly or partly in a county in
which the board of county commissioners has levied a tax under
division (D) of section 5739.09 of the Revised Code may amend,
on or before September 30, 2002, that municipal corporation's
ordinance or resolution that levies an excise tax on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests, to
provide for all of the following:
(a) That the rate of the tax shall be increased by not
more than an additional one per cent on each transaction;
(b) That all of the revenue from the increase in rate
shall be pledged and contributed to a convention facilities
authority established by the board of county commissioners under
Chapter 351. of the Revised Code on or before May 15, 2002, and
be used to pay costs of constructing, expanding, maintaining,
operating, or promoting a convention center in the county,
including paying bonds, or notes issued in anticipation of
bonds, as provided by that chapter;
(c) That the increase in rate shall not be subject to
diminution by initiative or referendum or by law while any
bonds, or notes in anticipation of bonds, issued by the
authority under Chapter 351. of the Revised Code to which the
revenue is pledged, remain outstanding in accordance with their
terms, unless provision is made by law, by the board of county
commissioners, or by the legislative authority, for an adequate
substitute therefor that is satisfactory to the trustee if a
trust agreement secures the bonds.
(3) The legislative authority of a municipal corporation
that, pursuant to division (C)(2) of this section, has amended
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1631 S. B. No. 104 Page 57
As Introduced
its ordinance or resolution to increase the rate of the tax
authorized by division (B) of this section may further amend the
ordinance or resolution to provide that the revenue referred to
in division (C)(2)(b) of this section shall be pledged and
contributed both to a convention facilities authority to pay the
costs of constructing, expanding, maintaining, or operating one
or more convention centers in the county, including paying
bonds, or notes issued in anticipation of bonds, as provided in
Chapter 351. of the Revised Code, and to a convention and
visitors' bureau to pay the costs of promoting one or more
convention centers in the county.
(D) As used in division (D) of this section, "eligible
municipal corporation" means a municipal corporation that, on
September 29, 2017, levied a tax under division (B) of this
section at a rate of three per cent and that is located in a
county that, on that date, levied a tax under division (A) of
section 5739.09 of the Revised Code at a rate of three per cent
and that has, according to the most recent federal decennial
census, a population exceeding three hundred thousand but not
greater than three hundred fifty thousand.
The legislative authority of an eligible municipal
corporation may amend, on or before December 31, 2017, that
municipal corporation's ordinance or resolution that levies an
excise tax on transactions by which lodging by a hotel or short-
term rental property is or is to be furnished to transient
guests, to provide for the following:
(1) That the rate of the tax shall be increased by not
more than an additional three per cent on each transaction;
(2) That all of the revenue from the increase in rate
shall be used by the municipal corporation for economic
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1661 S. B. No. 104 Page 58
As Introduced
development and tourism-related purposes.
(E)(1) As used in division (E) of this section, "cost" and
"facility" have the same meanings as in section 351.01 of the
Revised Code, except that "facility" does not include a "sports
facility," as that term is defined in that section, other than a
facility intended to house a major league soccer team.
(2) The legislative authority of a municipal corporation
that has a population exceeding three hundred thousand but less
than three hundred fifty thousand and that has adopted a
resolution or ordinance levying a tax authorized by division (A)
of this section may amend the resolution or ordinance to provide
that all or a portion of the revenue referred to in division (A)
of this section may be pledged and contributed to a convention
facilities authority or a port authority to pay the costs of
acquiring, constructing, renovating, expanding, maintaining, or
operating one or more facilities in the county, including paying
bonds, or notes issued in anticipation of bonds, or paying the
expenses of maintaining, operating, or promoting one or more
facilities.
(3) The legislative authority of any municipal corporation
that, pursuant to division (C)(2) of this section, has amended a
resolution or ordinance levying the tax authorized by division
(D) of section 5739.09 of the Revised Code may further amend the
resolution or ordinance to provide that all or a portion of the
revenue referred to in division (C)(2)(b) of this section may be
pledged and contributed to an issuing authority, as defined in
section 5739.093 of the Revised Code, to pay the costs of
acquiring, constructing, renovating, expanding, maintaining, or
operating one or more facilities in the county, including paying
bonds, or notes issued in anticipation of bonds, or paying the
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1691 S. B. No. 104 Page 59
As Introduced
expenses of maintaining, operating, or promoting one or more
facilities.
Sec. 5739.09. (A)(1) A board of county commissioners may,
by resolution adopted by a majority of the members of the board,
levy an excise tax not to exceed three per cent on transactions
by which lodging by a hotel or short-term rental property is or
is to be furnished to transient guests. The board shall
establish all regulations necessary to provide for the
administration and allocation of the tax. The regulations may
prescribe the time for payment of the tax, and may provide for
the imposition of a penalty or interest, or both, for late
payments, provided that the penalty does not exceed ten per cent
of the amount of tax due, and the rate at which interest accrues
does not exceed the rate per annum prescribed pursuant to
section 5703.47 of the Revised Code. Except as otherwise
provided in this section, the regulations shall provide, after
deducting the real and actual costs of administering the tax,
for the return to each municipal corporation or township that
does not levy an excise tax on the transactions, a uniform
percentage of the tax collected in the municipal corporation or
in the unincorporated portion of the township from each
transaction, not to exceed thirty-three and one-third per cent.
Except as provided in this section, the remainder of the revenue
arising from the tax shall be deposited in a separate fund and
shall be spent either (a) to make contributions to the
convention and visitors' bureau operating within the county,
including a pledge and contribution of any portion of the
remainder pursuant to an agreement authorized by section 307.678
or 307.695 of the Revised Code or (b) to pay, if authorized in
the regulations, for public safety services in a resort area
designated under section 5739.101 of the Revised Code.
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1722 S. B. No. 104 Page 60
As Introduced
(2) If the board of county commissioners of an eligible
county as defined in section 307.678 or 307.695 of the Revised
Code adopts a resolution amending a resolution levying a tax
under division (A) of this section to provide that revenue from
the tax shall be used by the board as described in either
division (D) of section 307.678 or division (H) of section
307.695 of the Revised Code, the remainder of the revenue shall
be used as described in the resolution making that amendment.
(3) Except as provided in division (B), (C), (D), (E),
(F), (G), (H), (I), (J), (K), or (Q) of this section, on and
after May 10, 1994, a board of county commissioners may not levy
an excise tax pursuant to division (A) of this section in any
municipal corporation or township located wholly or partly
within the county that has in effect an ordinance or resolution
levying an excise tax pursuant to division (B) of section
5739.08 of the Revised Code.
(4) The board of a county that has levied a tax under
division (M) of this section may, by resolution adopted within
ninety days after July 15, 1985, by a majority of the members of
the board, amend the resolution levying a tax under division (A)
of this section to provide for a portion of that tax to be
pledged and contributed in accordance with an agreement entered
into under section 307.695 of the Revised Code. A tax, any
revenue from which is pledged pursuant to such an agreement,
shall remain in effect at the rate at which it is imposed for
the duration of the period for which the revenue from the tax
has been so pledged.
(5) The board of county commissioners of an eligible
county as defined in section 307.695 of the Revised Code may, by
resolution adopted by a majority of the members of the board,
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1752 S. B. No. 104 Page 61
As Introduced
amend a resolution levying a tax under division (A) of this
section to provide that the revenue from the tax shall be used
by the board as described in division (H) of section 307.695 of
the Revised Code, in which case the tax shall remain in effect
at the rate at which it was imposed for the duration of any
agreement entered into by the board under section 307.695 of the
Revised Code, the duration during which any securities issued by
the board under that section are outstanding, or the duration of
the period during which the board owns a project as defined in
section 307.695 of the Revised Code, whichever duration is
longest.
(6) The board of county commissioners of an eligible
county as defined in section 307.678 of the Revised Code may, by
resolution, amend a resolution levying a tax under division (A)
of this section to provide that revenue from the tax, not to
exceed five hundred thousand dollars each year, may be used as
described in division (E) of section 307.678 of the Revised
Code.
(7) Notwithstanding division (A) of this section, the
board of county commissioners of a county described in division
(H)(1) of this section may, by resolution, amend a resolution
levying a tax under division (A) of this section to provide that
all or a portion of the revenue from the tax, including any
revenue otherwise required to be returned to townships or
municipal corporations under that division, may be used or
pledged for the payment of debt service on securities issued to
pay the costs of constructing, operating, and maintaining sports
facilities described in division (H)(2) of this section.
(8) The board of county commissioners of a county
described in division (I) of this section may, by resolution,
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1782 S. B. No. 104 Page 62
As Introduced
amend a resolution levying a tax under division (A) of this
section to provide that all or a portion of the revenue from the
tax may be used for the purposes described in section 307.679 of
the Revised Code.
(B) A board of county commissioners that levies an excise
tax under division (A) of this section on June 30, 1997, at a
rate of three per cent, and that has pledged revenue from the
tax to an agreement entered into under section 307.695 of the
Revised Code or, in the case of the board of county
commissioners of an eligible county as defined in section
307.695 of the Revised Code, has amended a resolution levying a
tax under division (M) of this section to provide that proceeds
from the tax shall be used by the board as described in division
(H) of section 307.695 of the Revised Code, may, at any time by
a resolution adopted by a majority of the members of the board,
amend the resolution levying a tax under division (A) of this
section to provide for an increase in the rate of that tax up to
seven per cent on each transaction; to provide that revenue from
the increase in the rate shall be used as described in division
(H) of section 307.695 of the Revised Code or be spent solely to
make contributions to the convention and visitors' bureau
operating within the county to be used specifically for
promotion, advertising, and marketing of the region in which the
county is located; and to provide that the rate in excess of the
three per cent levied under division (A) of this section shall
remain in effect at the rate at which it is imposed for the
duration of the period during which any agreement is in effect
that was entered into under section 307.695 of the Revised Code
by the board of county commissioners levying a tax under
division (A) of this section, the duration of the period during
which any securities issued by the board under division (I) of
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1813 S. B. No. 104 Page 63
As Introduced
section 307.695 of the Revised Code are outstanding, or the
duration of the period during which the board owns a project as
defined in section 307.695 of the Revised Code, whichever
duration is longest. The amendment also shall provide that no
portion of that revenue need be returned to townships or
municipal corporations as would otherwise be required under
division (A) of this section.
(C)(1) As used in division (C) of this section, "cost" and
"facility" have the same meanings as in section 351.01 of the
Revised Code, and "convention center" has the same meaning as in
section 307.695 of the Revised Code.
(2) A board of county commissioners that levies a tax
under division (A) of this section on March 18, 1999, at a rate
of three per cent may, by resolution adopted not later than
forty-five days after March 18, 1999, amend the resolution
levying the tax to provide for all of the following:
(a) That the rate of the tax shall be increased by not
more than an additional four per cent on each transaction;
(b) That all of the revenue from the increase in the rate
shall be pledged and contributed to a convention facilities
authority established by the board of county commissioners under
Chapter 351. of the Revised Code on or before November 15, 1998,
and used to pay costs of constructing, maintaining, operating,
and promoting a facility in the county, including paying bonds,
or notes issued in anticipation of bonds, as provided by that
chapter;
(c) That no portion of the revenue arising from the
increase in rate need be returned to municipal corporations or
townships as otherwise required under division (A) of this
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As Introduced
section;
(d) That the increase in rate shall not be subject to
diminution by initiative or referendum or by law while any
bonds, or notes in anticipation of bonds, issued by the
authority under Chapter 351. of the Revised Code to which the
revenue is pledged, remain outstanding in accordance with their
terms, unless provision is made by law or by the board of county
commissioners for an adequate substitute therefor that is
satisfactory to the trustee if a trust agreement secures the
bonds.
(3) Division (C) of this section does not apply to the
board of county commissioners of any county in which a
convention center or facility exists or is being constructed on
November 15, 1998, or of any county in which a convention
facilities authority levies a tax pursuant to section 351.021 of
the Revised Code on that date.
(D)(1) As used in division (D) of this section, "cost" has
the same meaning as in section 351.01 of the Revised Code, and
"convention center" has the same meaning as in section 307.695
of the Revised Code.
(2) A board of county commissioners that levies a tax
under division (A) of this section on June 30, 2002, at a rate
of three per cent may, by resolution adopted not later than
September 30, 2002, amend the resolution levying the tax to
provide for all of the following:
(a) That the rate of the tax shall be increased by not
more than an additional three and one-half per cent on each
transaction;
(b) That all of the revenue from the increase in rate
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1871 S. B. No. 104 Page 65
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shall be pledged and contributed to a convention facilities
authority established by the board of county commissioners under
Chapter 351. of the Revised Code on or before May 15, 2002, and
be used to pay costs of constructing, expanding, maintaining,
operating, or promoting a convention center in the county,
including paying bonds, or notes issued in anticipation of
bonds, as provided by that chapter;
(c) That no portion of the revenue arising from the
increase in rate need be returned to municipal corporations or
townships as otherwise required under division (A) of this
section;
(d) That the increase in rate shall not be subject to
diminution by initiative or referendum or by law while any
bonds, or notes in anticipation of bonds, issued by the
authority under Chapter 351. of the Revised Code to which the
revenue is pledged, remain outstanding in accordance with their
terms, unless provision is made by law or by the board of county
commissioners for an adequate substitute therefor that is
satisfactory to the trustee if a trust agreement secures the
bonds.
(3) Any board of county commissioners that, pursuant to
division (D)(2) of this section, has amended a resolution
levying the tax authorized by division (A) of this section may
further amend the resolution to provide that the revenue
referred to in division (D)(2)(b) of this section shall be
pledged and contributed both to a convention facilities
authority to pay the costs of constructing, expanding,
maintaining, or operating one or more convention centers in the
county, including paying bonds, or notes issued in anticipation
of bonds, as provided in Chapter 351. of the Revised Code, and
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As Introduced
to a convention and visitors' bureau to pay the costs of
promoting one or more convention centers in the county.
(E)(1) As used in division (E) of this section:
(a) "Port authority" means a port authority created under
Chapter 4582. of the Revised Code.
(b) "Port authority military-use facility" means port
authority facilities on which or adjacent to which is located an
installation of the armed forces of the United States, a reserve
component thereof, or the national guard and at least part of
which is made available for use, for consideration, by the armed
forces of the United States, a reserve component thereof, or the
national guard.
(2) For the purpose of contributing revenue to pay
operating expenses of a port authority that operates a port
authority military-use facility, the board of county
commissioners of a county that created, participated in the
creation of, or has joined such a port authority may do one or
both of the following:
(a) Amend a resolution previously adopted under division
(A) of this section to designate some or all of the revenue from
the tax levied under the resolution to be used for that purpose,
notwithstanding that division;
(b) Amend a resolution previously adopted under division
(A) of this section to increase the rate of the tax by not more
than an additional two per cent and use the revenue from the
increase exclusively for that purpose.
(3) If a board of county commissioners amends a resolution
to increase the rate of a tax as authorized in division (E)(2)
(b) of this section, the board also may amend the resolution to
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1930 S. B. No. 104 Page 67
As Introduced
specify that the increase in rate of the tax does not apply to
"hotels," as otherwise defined in section 5739.01 of the Revised
Code, having fewer rooms used for the accommodation of guests
than a number of rooms specified by the board. This limitation
on the hotels to which the tax applies does not apply on and
after the first day of the first month starting thirty or more
days after the effective date of this amendment.
(F)(1) A board of county commissioners of a county
organized under a county charter adopted pursuant to Article X,
Section 3, Ohio Constitution, and that levies an excise tax
under division (A) of this section at a rate of three per cent
and levies an additional excise tax under division (O) of this
section at a rate of one and one-half per cent may, by
resolution adopted not later than January 1, 2008, by a majority
of the members of the board, amend the resolution levying a tax
under division (A) of this section to provide for an increase in
the rate of that tax by not more than an additional one per cent
on transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests.
Notwithstanding divisions (A) and (O) of this section, the
resolution shall provide that all of the revenue from the
increase in rate, after deducting the real and actual costs of
administering the tax, shall be used to pay the costs of
improving, expanding, equipping, financing, or operating a
convention center by a convention and visitors' bureau in the
county.
(2) The increase in rate shall remain in effect for the
period specified in the resolution, not to exceed ten years, and
may be extended for an additional period of time not to exceed
ten years thereafter by a resolution adopted by a majority of
the members of the board.
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1961 S. B. No. 104 Page 68
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(3) The increase in rate shall be subject to the
regulations adopted under division (A) of this section, except
that the resolution may provide that no portion of the revenue
from the increase in the rate shall be returned to townships or
municipal corporations as would otherwise be required under that
division.
(G)(1) Division (G) of this section applies only to a
county with a population greater than sixty-five thousand and
less than seventy thousand according to the most recent federal
decennial census and in which, on December 31, 2006, an excise
tax is levied under division (A) of this section at a rate not
less than and not greater than three per cent, and in which the
most recent increase in the rate of that tax was enacted or took
effect in November 1984.
(2) The board of county commissioners of a county to which
division (G) of this section applies, by resolution adopted by a
majority of the members of the board, may increase the rate of
the tax by not more than one per cent on transactions by which
lodging by a hotel or short-term rental property is or is to be
furnished to transient guests. The increase in rate shall be for
the purpose of paying expenses deemed necessary by the
convention and visitors' bureau operating in the county to
promote travel and tourism.
(3) The increase in rate shall remain in effect for the
period specified in the resolution, not to exceed twenty years,
provided that the increase in rate may not continue beyond the
time when the purpose for which the increase is levied ceases to
exist. If revenue from the increase in rate is pledged to the
payment of debt charges on securities, the increase in rate is
not subject to diminution by initiative or referendum or by law
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1991 S. B. No. 104 Page 69
As Introduced
for so long as the securities are outstanding, unless provision
is made by law or by the board of county commissioners for an
adequate substitute for that revenue that is satisfactory to the
trustee if a trust agreement secures payment of the debt
charges.
(4) The increase in rate shall be subject to the
regulations adopted under division (A) of this section, except
that the resolution may provide that no portion of the revenue
from the increase in the rate shall be returned to townships or
municipal corporations as would otherwise be required under
division (A) of this section.
(5) A resolution adopted under division (G) of this
section is subject to referendum under sections 305.31 to 305.99
of the Revised Code.
(H)(1) Division (H) of this section applies only to a
county satisfying all of the following:
(a) The population of the county is greater than one
hundred seventy-five thousand and less than two hundred twenty-
five thousand according to the most recent federal decennial
census.
(b) An amusement park with an average yearly attendance in
excess of two million guests is located in the county.
(c) On December 31, 2014, an excise tax was levied in the
county under division (A) of this section at a rate of three per
cent.
(2) The board of county commissioners of a county to which
division (H) of this section applies, by resolution adopted by a
majority of the members of the board, may increase the rate of
the tax by not more than one per cent on transactions by which
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2020 S. B. No. 104 Page 70
As Introduced
lodging by a hotel or short-term rental property is or is to be
furnished to transient guests. The increase in rate shall be
used to pay the costs of constructing and maintaining facilities
owned by the county or by a port authority created under Chapter
4582. of the Revised Code, and designed to host sporting events
and expenses deemed necessary by the convention and visitors'
bureau operating in the county to promote travel and tourism
with reference to the sports facilities, and to pay or pledge to
the payment of debt service on securities issued to pay the
costs of constructing, operating, and maintaining the sports
facilities.
(3) The increase in rate shall remain in effect for the
period specified in the resolution. If revenue from the increase
in rate is pledged to the payment of debt charges on securities,
the increase in rate is not subject to diminution by initiative
or referendum or by law for so long as the securities are
outstanding, unless provision is made by law or by the board of
county commissioners for an adequate substitute for that revenue
that is satisfactory to the trustee if a trust agreement secures
payment of the debt charges.
(4) The increase in rate shall be subject to the
regulations adopted under division (A) of this section, except
that the resolution may provide that no portion of the revenue
from the increase in the rate shall be returned to townships or
municipal corporations as would otherwise be required under
division (A) of this section.
(I)(1) The board of county commissioners of a county with
a population greater than seventy-five thousand and less than
seventy-eight thousand, by resolution adopted by a majority of
the members of the board not later than October 15, 2015, may
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2050 S. B. No. 104 Page 71
As Introduced
increase the rate of the tax by not more than one per cent on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests. The
increase in rate shall be for the purposes described in section
307.679 of the Revised Code or for the promotion of travel and
tourism in the county, including travel and tourism to sports
facilities.
(2) The increase in rate shall remain in effect for the
period specified in the resolution and as necessary to fulfill
the county's obligations under a cooperative agreement entered
into under section 307.679 of the Revised Code. If the
resolution is adopted by the board before September 29, 2015,
but after that enactment becomes law, the increase in rate shall
become effective beginning on September 29, 2015. If revenue
from the increase in rate is pledged to the payment of debt
charges on securities, or to substitute for other revenues
pledged to the payment of such debt, the increase in rate is not
subject to diminution by initiative or referendum or by law for
so long as the securities are outstanding, unless provision is
made by law or by the board of county commissioners for an
adequate substitute for that revenue that is satisfactory to the
trustee if a trust agreement secures payment of the debt
charges.
(3) The increase in rate shall be subject to the
regulations adopted under division (A) of this section, except
that no portion of the revenue from the increase in the rate
shall be returned to townships or municipal corporations as
would otherwise be required under division (A) of this section.
(J)(1) Division (J) of this section applies only to
counties satisfying either of the following:
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2080 S. B. No. 104 Page 72
As Introduced
(a) A county that, on July 1, 2015, does not levy an
excise tax under division (A) of this section and that has a
population of at least thirty-nine thousand but not more than
forty thousand according to the 2010 federal decennial census;
(b) A county that, on July 1, 2015, levies an excise tax
under division (A) of this section at a rate of three per cent
and that has a population of at least seventy-one thousand but
not more than seventy-five thousand according to 2010 federal
decennial census.
(2) The board of county commissioners of a county to which
division (J) of this section applies, by resolution adopted by a
majority of the members of the board, may levy an excise tax at
a rate not to exceed three per cent on transactions by which
lodging by a hotel or short-term rental property is or is to be
furnished to transient guests for the purpose of acquiring,
constructing, equipping, or repairing permanent improvements, as
defined in section 133.01 of the Revised Code.
(3) If the board does not levy a tax under division (A) of
this section, the board shall establish regulations necessary to
provide for the administration of the tax, which may prescribe
the time for payment of the tax and the imposition of penalty or
interest subject to the limitations on penalty and interest
provided in division (A) of this section. No portion of the
revenue shall be returned to townships or municipal corporations
in the county unless otherwise provided by resolution of the
board.
(4) The tax shall apply throughout the territory of the
county, including in any township or municipal corporation
levying an excise tax under division (A) or (B) of section
5739.08 of the Revised Code. The levy of the tax is subject to
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As Introduced
referendum as provided under section 305.31 of the Revised Code.
(5) The tax shall remain in effect for the period
specified in the resolution. If revenue from the increase in
rate is pledged to the payment of debt charges on securities,
the increase in rate is not subject to diminution by initiative
or referendum or by law for so long as the securities are
outstanding unless provision is made by law or by the board for
an adequate substitute for that revenue that is satisfactory to
the trustee if a trust agreement secures payment of the debt
charges.
(K)(1) The board of county commissioners of an eligible
county, as defined in section 307.678 of the Revised Code, that
levies an excise tax under division (A) of this section on July
1, 2017, at a rate of three per cent may, by resolution adopted
by a majority of the members of the board, amend the resolution
levying the tax to increase the rate of the tax by not more than
an additional three per cent on each transaction.
(2) No portion of the revenue shall be returned to
townships or municipal corporations in the county unless
otherwise provided by resolution of the board. Otherwise, the
revenue from the increase in the rate shall be distributed and
used in the same manner described under division (A) of this
section or distributed or used to provide credit enhancement
facilities as authorized under section 307.678 of the Revised
Code.
(3) The increase in rate shall remain in effect for the
period specified in the resolution. If revenue from the increase
in rate is pledged to the payment of debt charges on securities,
the increase in rate is not subject to diminution by initiative
or referendum or by law for so long as the securities are
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2140 S. B. No. 104 Page 74
As Introduced
outstanding unless provision is made by law or by the board for
an adequate substitute for that revenue that is satisfactory to
the trustee if a trust agreement secures payment of the debt
charges.
(L)(1) As used in division (L) of this section:
(a) "Eligible county" means a county that has a population
greater than one hundred ninety thousand and less than two
hundred thousand according to the 2010 federal decennial census
and that levies an excise tax under division (A) of this section
at a rate of three per cent.
(b) "Professional sports facility" means a sports facility
that is intended to house major or minor league professional
athletic teams, including a stadium, together with all parking
facilities, walkways, and other auxiliary facilities, real and
personal property, property rights, easements, and interests
that may be appropriate for, or used in connection with, the
operation of the facility.
(2) Subject to division (L)(3) of this section, the board
of county commissioners of an eligible county, by resolution
adopted by a majority of the members of the board, may increase
the rate of the tax by not more than one per cent on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests. Revenue
from the increase in rate shall be used for the purposes of
paying the costs of constructing, improving, and maintaining a
professional sports facility in the county and paying expenses
considered necessary by the convention and visitors' bureau
operating in the county to promote travel and tourism with
respect to that professional sports facility. The tax shall take
effect only after the convention and visitors' bureau enters
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As Introduced
into a contract for the construction, improvement, or
maintenance of a professional sports facility that is or will be
located on property acquired, in whole or in part, with revenue
from the increased rate, and thereafter shall remain in effect
for the period specified in the resolution. If revenue from the
increase in rate is pledged to the payment of debt charges on
securities, the increase in rate is not subject to diminution by
initiative or referendum or by law for so long as the securities
are outstanding, unless a provision is made by law or by the
board of county commissioners for an adequate substitute for
that revenue that is satisfactory to the trustee if a trust
agreement secures payment of the debt charges. The increase in
rate shall be subject to the regulations adopted under division
(A) of this section, except that the resolution may provide that
no portion of the revenue from the increase in the rate shall be
returned to townships or municipal corporations as would
otherwise be required under division (A) of this section.
(3) If, on December 31, 2019, the convention and visitors'
bureau has not entered into a contract for the construction,
improvement, or maintenance of a professional sports facility
that is or will be located on property acquired, in whole or in
part, with revenue from the increased rate, the authority to
levy the tax under division (L)(2) of this section is hereby
repealed on that date.
(M)(1) For the purposes described in section 307.695 of
the Revised Code and to cover the costs of administering the
tax, a board of county commissioners of a county where a tax
imposed under division (A) of this section is in effect may, by
resolution adopted within ninety days after July 15, 1985, by a
majority of the members of the board, levy an additional excise
tax not to exceed three per cent on transactions by which
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As Introduced
lodging by a hotel or short-term rental property is or is to be
furnished to transient guests. The tax authorized by division
(M) of this section shall be in addition to any tax that is
levied pursuant to divisions (A) to (L) of this section, but it
shall not apply to transactions subject to a tax levied by a
municipal corporation or township pursuant to section 5739.08 of
the Revised Code.
(2) The board shall establish all regulations necessary to
provide for the administration and allocation of the tax. The
regulations may prescribe the time for payment of the tax, and
may provide for the imposition of a penalty or interest, or
both, for late payments, provided that the penalty does not
exceed ten per cent of the amount of tax due, and the rate at
which interest accrues does not exceed the rate per annum
prescribed pursuant to section 5703.47 of the Revised Code.
(3) All revenues arising from the tax shall be expended in
accordance with section 307.695 of the Revised Code. The board
of county commissioners of an eligible county as defined in
section 307.695 of the Revised Code may, by resolution adopted
by a majority of the members of the board, amend the resolution
levying a tax under this division to provide that the revenue
from the tax shall be used by the board as described in division
(H) of section 307.695 of the Revised Code.
(4) A tax imposed under this division shall remain in
effect at the rate at which it is imposed for the duration of
the period during which any agreement entered into by the board
under section 307.695 of the Revised Code is in effect, the
duration of the period during which any securities issued by the
board under division (I) of section 307.695 of the Revised Code
are outstanding, or the duration of the period during which the
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As Introduced
board owns a project as defined in section 307.695 of the
Revised Code, whichever duration is longest.
(N)(1) For the purpose of providing contributions under
division (B)(1) of section 307.671 of the Revised Code to enable
the acquisition, construction, and equipping of a port authority
educational and cultural facility in the county and, to the
extent provided for in the cooperative agreement authorized by
that section, for the purpose of paying debt service charges on
bonds, or notes in anticipation of bonds, described in division
(B)(1)(b) of that section, a board of county commissioners, by
resolution adopted within ninety days after December 22, 1992,
by a majority of the members of the board, may levy an
additional excise tax not to exceed one and one-half per cent on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests. The
excise tax authorized by division (N) of this section shall be
in addition to any tax that is levied pursuant to divisions (A)
to (M) of this section, to any excise tax levied pursuant to
section 5739.08 of the Revised Code, and to any excise tax
levied pursuant to section 351.021 of the Revised Code.
(2) The board of county commissioners shall establish all
regulations necessary to provide for the administration and
allocation of the tax that are not inconsistent with this
section or section 307.671 of the Revised Code. The regulations
may prescribe the time for payment of the tax, and may provide
for the imposition of a penalty or interest, or both, for late
payments, provided that the penalty does not exceed ten per cent
of the amount of tax due, and the rate at which interest accrues
does not exceed the rate per annum prescribed pursuant to
section 5703.47 of the Revised Code.
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As Introduced
(3) All revenues arising from the tax shall be expended in
accordance with section 307.671 of the Revised Code and division
(N) of this section. The levy of a tax imposed under division
(N) of this section may not commence prior to the first day of
the month next following the execution of the cooperative
agreement authorized by section 307.671 of the Revised Code by
all parties to that agreement.
(4) The tax shall remain in effect at the rate at which it
is imposed for the period of time described in division (C) of
section 307.671 of the Revised Code for which the revenue from
the tax has been pledged by the county to the corporation
pursuant to that section, but, to any extent provided for in the
cooperative agreement, for no lesser period than the period of
time required for payment of the debt service charges on bonds,
or notes in anticipation of bonds, described in division (B)(1)
(b) of that section.
(O)(1) For the purpose of paying the costs of acquiring,
constructing, equipping, and improving a municipal educational
and cultural facility, including debt service charges on bonds
provided for in division (B) of section 307.672 of the Revised
Code, and for any additional purposes determined by the county
in the resolution levying the tax or amendments to the
resolution, including subsequent amendments providing for paying
costs of acquiring, constructing, renovating, rehabilitating,
equipping, and improving a port authority educational and
cultural performing arts facility, as defined in section 307.674
of the Revised Code, and including debt service charges on bonds
provided for in division (B) of section 307.674 of the Revised
Code, the legislative authority of a county, by resolution
adopted within ninety days after June 30, 1993, by a majority of
the members of the legislative authority, may levy an additional
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2292 S. B. No. 104 Page 79
As Introduced
excise tax not to exceed one and one-half per cent on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests. The
excise tax authorized by division (O) of this section shall be
in addition to any tax that is levied pursuant to divisions (A)
to (N) of this section, to any excise tax levied pursuant to
section 5739.08 of the Revised Code, and to any excise tax
levied pursuant to section 351.021 of the Revised Code.
(2) The legislative authority of the county shall
establish all regulations necessary to provide for the
administration and allocation of the tax. The regulations may
prescribe the time for payment of the tax, and may provide for
the imposition of a penalty or interest, or both, for late
payments, provided that the penalty does not exceed ten per cent
of the amount of tax due, and the rate at which interest accrues
does not exceed the rate per annum prescribed pursuant to
section 5703.47 of the Revised Code.
(3) All revenues arising from the tax shall be expended in
accordance with section 307.672 of the Revised Code and this
division. The levy of a tax imposed under this division shall
not commence prior to the first day of the month next following
the execution of the cooperative agreement authorized by section
307.672 of the Revised Code by all parties to that agreement.
The tax shall remain in effect at the rate at which it is
imposed for the period of time determined by the legislative
authority of the county. That period of time shall not exceed
fifteen years, except that the legislative authority of a county
with a population of less than two hundred fifty thousand
according to the most recent federal decennial census, by
resolution adopted by a majority of its members before the
original tax expires, may extend the duration of the tax for an
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2323 S. B. No. 104 Page 80
As Introduced
additional period of time. The additional period of time by
which a legislative authority extends a tax levied under
division (O) of this section shall not exceed fifteen years.
(P)(1) The legislative authority of a county that has
levied a tax under division (O) of this section may, by
resolution adopted within one hundred eighty days after January
4, 2001, by a majority of the members of the legislative
authority, amend the resolution levying a tax under that
division to provide for the use of the proceeds of that tax, to
the extent that it is no longer needed for its original purpose
as determined by the parties to a cooperative agreement
amendment pursuant to division (D) of section 307.672 of the
Revised Code, to pay costs of acquiring, constructing,
renovating, rehabilitating, equipping, and improving a port
authority educational and cultural performing arts facility,
including debt service charges on bonds provided for in division
(B) of section 307.674 of the Revised Code, and to pay all
obligations under any guaranty agreements, reimbursement
agreements, or other credit enhancement agreements described in
division (C) of section 307.674 of the Revised Code.
(2) The resolution may also provide for the extension of
the tax at the same rate for the longer of the period of time
determined by the legislative authority of the county, but not
to exceed an additional twenty-five years, or the period of time
required to pay all debt service charges on bonds provided for
in division (B) of section 307.672 of the Revised Code and on
port authority revenue bonds provided for in division (B) of
section 307.674 of the Revised Code.
(3) All revenues arising from the amendment and extension
of the tax shall be expended in accordance with section 307.674
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2353 S. B. No. 104 Page 81
As Introduced
of the Revised Code and divisions (O) and (P) of this section.
(Q)(1) As used in division (Q) of this section:
(a) "Convention facilities authority" has the same meaning
as in section 351.01 of the Revised Code.
(b) "Convention center" has the same meaning as in section
307.695 of the Revised Code.
(2) Notwithstanding any contrary provision of division (N)
of this section, the legislative authority of a county with a
population of one million or more according to the most recent
federal decennial census that has levied a tax under division
(N) of this section may, by resolution adopted by a majority of
the members of the legislative authority, provide for the
extension of such levy and may provide that the proceeds of that
tax, to the extent that they are no longer needed for their
original purpose as defined by a cooperative agreement entered
into under section 307.671 of the Revised Code, shall be
deposited into the county general revenue fund. The resolution
shall provide for the extension of the tax at a rate not to
exceed the rate specified in division (N) of this section for a
period of time determined by the legislative authority of the
county, but not to exceed an additional forty years.
(3) The legislative authority of a county with a
population of one million or more that has levied a tax under
division (A) of this section may, by resolution adopted by a
majority of the members of the legislative authority, increase
the rate of the tax levied by such county under division (A) of
this section to a rate not to exceed five per cent on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests.
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2382 S. B. No. 104 Page 82
As Introduced
Notwithstanding any contrary provision of division (A) of this
section, the resolution may provide that all collections
resulting from the rate levied in excess of three per cent,
after deducting the real and actual costs of administering the
tax, shall be deposited in the county general fund.
(4) The legislative authority of a county with a
population of one million or more that has levied a tax under
division (A) of this section may, by resolution adopted on or
before August 30, 2004, by a majority of the members of the
legislative authority, provide that all or a portion of the
proceeds of the tax levied under division (A) of this section,
after deducting the real and actual costs of administering the
tax and the amounts required to be returned to townships and
municipal corporations with respect to the first three per cent
levied under division (A) of this section, shall be deposited in
the county general fund, provided that such proceeds shall be
used to satisfy any pledges made in connection with an agreement
entered into under section 307.695 of the Revised Code.
(5) No amount collected from a tax levied, extended, or
required to be deposited in the county general fund under
division (Q) of this section shall be contributed to a
convention facilities authority, corporation, or other entity
created after July 1, 2003, for the principal purpose of
constructing, improving, expanding, equipping, financing, or
operating a convention center unless the mayor of the municipal
corporation in which the convention center is to be operated by
that convention facilities authority, corporation, or other
entity has consented to the creation of that convention
facilities authority, corporation, or entity. Notwithstanding
any contrary provision of section 351.04 of the Revised Code, if
a tax is levied by a county under division (Q) of this section,
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2413 S. B. No. 104 Page 83
As Introduced
the board of county commissioners of that county may determine
the manner of selection, the qualifications, the number, and
terms of office of the members of the board of directors of any
convention facilities authority, corporation, or other entity
described in division (Q)(5) of this section.
(6)(a) No amount collected from a tax levied, extended, or
required to be deposited in the county general fund under
division (Q) of this section may be used for any purpose other
than paying the direct and indirect costs of constructing,
improving, expanding, equipping, financing, or operating a
convention center and for the real and actual costs of
administering the tax, unless, prior to the adoption of the
resolution of the legislative authority of the county
authorizing the levy, extension, increase, or deposit, the
county and the mayor of the most populous municipal corporation
in that county have entered into an agreement as to the use of
such amounts, provided that such agreement has been approved by
a majority of the mayors of the other municipal corporations in
that county. The agreement shall provide that the amounts to be
used for purposes other than paying the convention center or
administrative costs described in division (Q)(6)(a) of this
section be used only for the direct and indirect costs of
capital improvements, including the financing of capital
improvements, except that the agreement may subsequently be
amended by the parties that have entered into that agreement to
authorize such amounts to instead be used for any costs related
to the promotion or support of tourism or tourism-related
programs.
(b) If the county in which the tax is levied has an
association of mayors and city managers, the approval of that
association of an agreement described in division (Q)(6)(a) of
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2444 S. B. No. 104 Page 84
As Introduced
this section shall be considered to be the approval of the
majority of the mayors of the other municipal corporations for
purposes of that division.
(7) Each year, the auditor of state shall conduct an audit
of the uses of any amounts collected from taxes levied,
extended, or deposited under division (Q) of this section and
shall prepare a report of the auditor of state's findings. The
auditor of state shall submit the report to the legislative
authority of the county that has levied, extended, or deposited
the tax, the speaker of the house of representatives, the
president of the senate, and the leaders of the minority parties
of the house of representatives and the senate.
(R)(1) As used in division (R) of this section:
(a) "Convention facilities authority" has the same meaning
as in section 351.01 of the Revised Code.
(b) "Convention center" has the same meaning as in section
307.695 of the Revised Code.
(2) Notwithstanding any contrary provision of division (N)
of this section, the legislative authority of a county with a
population of one million two hundred thousand or more according
to the most recent federal decennial census or the most recent
annual population estimate published or released by the United
States census bureau at the time the resolution is adopted
placing the levy on the ballot, that has levied a tax under
division (N) of this section may, by resolution adopted by a
majority of the members of the legislative authority, provide
for the extension of such levy and may provide that the proceeds
of that tax, to the extent that the proceeds are no longer
needed for their original purpose as defined by a cooperative
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2473 S. B. No. 104 Page 85
As Introduced
agreement entered into under section 307.671 of the Revised Code
and after deducting the real and actual costs of administering
the tax, shall be used for paying the direct and indirect costs
of constructing, improving, expanding, equipping, financing, or
operating a convention center. The resolution shall provide for
the extension of the tax at a rate not to exceed the rate
specified in division (N) of this section for a period of time
determined by the legislative authority of the county, but not
to exceed an additional forty years.
(3) The legislative authority of a county with a
population of one million two hundred thousand or more that has
levied a tax under division (A) of this section may, by
resolution adopted by a majority of the members of the
legislative authority, increase the rate of the tax levied by
such county under division (A) of this section to a rate not to
exceed five per cent on transactions by which lodging by a hotel
or short-term rental property is or is to be furnished to
transient guests. Notwithstanding any contrary provision of
division (A) of this section, the resolution shall provide that
all collections resulting from the rate levied in excess of
three per cent, after deducting the real and actual costs of
administering the tax, shall be used for paying the direct and
indirect costs of constructing, improving, expanding, equipping,
financing, or operating a convention center.
(4) The legislative authority of a county with a
population of one million two hundred thousand or more that has
levied a tax under division (A) of this section may, by
resolution adopted on or before July 1, 2008, by a majority of
the members of the legislative authority, provide that all or a
portion of the proceeds of the tax levied under division (A) of
this section, after deducting the real and actual costs of
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2504 S. B. No. 104 Page 86
As Introduced
administering the tax and the amounts required to be returned to
townships and municipal corporations with respect to the first
three per cent levied under division (A) of this section, shall
be used to satisfy any pledges made in connection with an
agreement entered into under section 307.695 of the Revised Code
or shall otherwise be used for paying the direct and indirect
costs of constructing, improving, expanding, equipping,
financing, or operating a convention center.
(5) Any amount collected from a tax levied or extended
under division (R) of this section may be contributed to a
convention facilities authority created before July 1, 2005, but
no amount collected from a tax levied or extended under division
(R) of this section may be contributed to a convention
facilities authority, corporation, or other entity created after
July 1, 2005, unless the mayor of the municipal corporation in
which the convention center is to be operated by that convention
facilities authority, corporation, or other entity has consented
to the creation of that convention facilities authority,
corporation, or entity.
(S) As used in division (S) of this section, "soldiers'
memorial" means a memorial constructed and funded under Chapter
345. of the Revised Code.
The board of county commissioners of a county with a
population between one hundred three thousand and one hundred
seven thousand according to the most recent federal decennial
census, by resolution adopted by a majority of the members of
the board within six months after September 15, 2014, may levy a
tax not to exceed three per cent on transactions by which a
hotel or short-term rental property is or is to be furnished to
transient guests. The purpose of the tax shall be to pay the
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2534 S. B. No. 104 Page 87
As Introduced
costs of expanding, maintaining, or operating a soldiers'
memorial and the costs of administering the tax. All revenue
arising from the tax shall be credited to one or more special
funds in the county treasury and shall be spent solely for the
purposes of paying those costs.
The board of county commissioners shall adopt all rules
necessary to provide for the administration of the tax subject
to the same limitations on imposing penalty or interest under
division (A) of this section.
(T) As used in division (T) of this section:
(1) "Eligible county" means a county in which a county
agricultural society or independent agricultural society is
organized under section 1711.01 or 1711.02 of the Revised Code,
provided the agricultural society owns a facility or site in the
county at which an annual harness horse race is conducted where
one-day attendance equals at least forty thousand attendees.
(2) "Permanent improvements," "debt charges," and
"financing costs" have the same meanings as in section 133.01 of
the Revised Code.
(3) "Costs of permanent improvements" include all costs
allowed in section 133.15 of the Revised Code.
A board of county commissioners of an eligible county, by
resolution adopted by a majority of the members of the board,
may levy an excise tax at the rate of up to three per cent on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests for the
purpose of paying the costs of permanent improvements at sites
at which one or more agricultural societies conduct fairs or
exhibits, including paying financing costs and debt charges on
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2563 S. B. No. 104 Page 88
As Introduced
bonds, or notes in anticipation of bonds, paying the costs of
maintaining or operating such permanent improvements, and paying
the costs of administering the tax.
A resolution adopted under division (T) of this section,
other than a resolution that only extends the period of time for
which the tax is levied, shall direct the board of elections to
submit the question of the proposed lodging tax to the electors
of the county at a special election held on the date specified
by the board in the resolution, provided that the election
occurs not less than ninety days after a certified copy of the
resolution is transmitted to the board of elections. A
resolution submitted to the electors under division (T) of this
section shall not go into effect unless it is approved by a
majority of those voting upon it. The resolution takes effect on
the date the board of county commissioners receives notification
from the board of elections of an affirmative vote.
The tax shall remain in effect for the period specified in
the resolution, not to exceed five years, and may be extended
for an additional period of years that is at least the number of
years required for payment of the debt charges on bonds or notes
in anticipation of bonds authorized under this division but not
in excess of fifteen years thereafter by a resolution adopted by
a majority of the members of the board. A resolution extending
the period of time for which the tax is in effect is not subject
to approval of the electors of the county, but is subject to
referendum under sections 305.31 to 305.99 of the Revised Code.
All revenue arising from the tax shall be credited to one or
more special funds in the county treasury and shall be spent
solely for the purposes of paying the costs of such permanent
improvements, including paying financing costs and debt charges
on bonds, or notes in anticipation of bonds, and maintaining or
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2594 S. B. No. 104 Page 89
As Introduced
operating the improvements. Revenue allocated for the use of a
county agricultural society may be credited to the county
agricultural society fund created in section 1711.16 of the
Revised Code upon appropriation by the board. If revenue is
credited to that fund, it shall be expended only as provided in
that section.
The board of county commissioners shall adopt all rules
necessary to provide for the administration of the tax. The
rules may prescribe the time for payment of the tax, and may
provide for the imposition or penalty or interest, or both, for
late payments, provided that the penalty does not exceed ten per
cent of the amount of tax due, and the rate at which interest
accrues does not exceed the rate per annum prescribed in section
5703.47 of the Revised Code.
The board of county commissioners may issue bonds, or
notes in anticipation thereof, pursuant to Chapter 133. of the
Revised Code, for the purpose of paying the costs of permanent
improvements as authorized in this division and pledge the
revenue arising from the tax for that purpose. The board of
county commissioners may pledge or contribute the revenue
arising from the tax levied under this division to a port
authority created under Chapter 4582. of the Revised Code, and
the port authority may issue bonds, or notes in anticipation
thereof, pursuant to that chapter, for the purpose of paying the
costs of permanent improvements as authorized in this division.
(U) As used in division (U) of this section, "eligible
county" means a county in which a tax is levied under division
(A) of this section at a rate of three per cent and whose
territory includes a part of Lake Erie the shoreline of which
represents at least fifty per cent of the linear length of the
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2624 S. B. No. 104 Page 90
As Introduced
county's border with other counties of this state.
The board of county commissioners of an eligible county
that has entered into an agreement with a port authority in the
county under section 4582.56 of the Revised Code may levy an
additional lodging tax on transactions by which lodging by a
hotel or short-term rental property is or is to be furnished to
transient guests for the purpose of financing lakeshore
improvement projects constructed or financed by the port
authority under that section. The resolution levying the tax
shall specify the purpose of the tax, the rate of the tax, which
shall not exceed two per cent, and the number of years the tax
will be levied or that it will be levied for a continuing period
of time. The tax shall be administered pursuant to the
regulations adopted by the board under division (A) of this
section, except that all the proceeds of the tax levied under
this division shall be pledged to the payment of the costs,
including debt charges, of lakeshore improvements undertaken by
a port authority pursuant to the agreement under section 4582.56
of the Revised Code. No revenue from the tax may be used to pay
the current expenses of the port authority.
A resolution levying a tax under division (U) of this
section is subject to referendum under sections 305.31 to 305.41
and 305.99 of the Revised Code.
(V)(1) As used in division (V) of this section:
(a) "Tourism development district" means a district
designated by a municipal corporation under section 715.014 of
the Revised Code or by a township under section 503.56 of the
Revised Code.
(b) "Lodging tax" means a tax levied pursuant to this
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2653 S. B. No. 104 Page 91
As Introduced
section or section 5739.08 of the Revised Code.
(c) "Tourism development district lodging tax proceeds"
means all proceeds of a lodging tax derived from transactions by
which lodging by a hotel or short-term rental property located
in a tourism development district is or is to be provided to
transient guests.
(d) "Eligible county" has the same meaning as in section
307.678 of the Revised Code.
(2)(a) Notwithstanding division (A) of this section, the
board of county commissioners, board of township trustees, or
legislative authority of any county, township, or municipal
corporation that levies a lodging tax on September 29, 2017, and
in which any part of a tourism development district is located
on or after that date shall amend the ordinance or resolution
levying the tax to require either of the following:
(i) In the case of a tax levied by a county, that all
tourism development district lodging tax proceeds from that tax
be used exclusively to foster and develop tourism in the tourism
development district;
(ii) In the case of a tax levied by a township or
municipal corporation, that all tourism development district
lodging tax proceeds from that tax be used exclusively to foster
and develop tourism in the tourism development district.
(b) Notwithstanding division (A) of this section, any
ordinance or resolution levying a lodging tax adopted on or
after September 29, 2017, by a county, township, or municipal
corporation in which any part of a tourism development district
is located on or after that date shall require that all tourism
development district lodging tax proceeds from that tax be used
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2682 S. B. No. 104 Page 92
As Introduced
exclusively to foster and develop tourism in the tourism
development district.
(c) A county shall not use any of the proceeds described
in division (V)(2)(a)(i) or (V)(2)(b) of this section unless the
convention and visitors' bureau operating within the county
approves the manner in which such proceeds are used to foster
and develop tourism in the tourism development district. Upon
obtaining such approval, the county may pay such proceeds to the
bureau to use for the agreed-upon purpose.
A municipal corporation or township shall not use any of
the proceeds described in division (V)(2)(a)(ii) or (V)(2)(b) of
this section unless the convention and visitors' bureau
operating within the municipal corporation or township approves
the manner in which such proceeds are used to foster and develop
tourism in the tourism development district. Upon obtaining such
approval, the municipal corporation or township may pay such
proceeds to the bureau to use for the agreed-upon purpose.
(3)(a) Notwithstanding division (A) of this section, the
board of county commissioners of an eligible county that levies
a lodging tax on March 23, 2018, may amend the resolution
levying that tax to require that all or a portion of the
proceeds of that tax otherwise required to be spent solely to
make contributions to the convention and visitors' bureau
operating within the county shall be used to foster and develop
tourism in a tourism development district.
(b) Notwithstanding division (A) of this section, the
board of county commissioners of an eligible county that adopts
a resolution levying a lodging tax on or after March 23, 2018,
may require that all or a portion of the proceeds of that tax
otherwise required to be spent solely to make contributions to
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2712 S. B. No. 104 Page 93
As Introduced
the convention and visitors' bureau operating within the county
pursuant to division (A) of this section shall be used to foster
and develop tourism in a tourism development district.
(c) A county shall not use any of the proceeds in the
manner described in division (V)(3)(a) or (b) of this section
unless the convention and visitors' bureau operating within the
county approves the manner in which such proceeds are used to
foster and develop tourism in the tourism development district.
Upon obtaining such approval, the county may pay such proceeds
to the bureau to use for the agreed upon purpose.
(W)(1) As used in division (W) of this section:
(a) "Eligible county" means a county with a population
greater than three hundred thousand and less than three hundred
fifty thousand that levies a tax under division (A) of this
section at a rate of three per cent;
(b) "Cost" and "facility" have the same meanings as in
section 351.01 of the Revised Code.
(2) A board of county commissioners of an eligible county,
by resolution adopted by a majority of the members of the board,
may levy an excise tax at the rate of up to three per cent on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests. All of
the revenue from the tax shall be used to pay the costs of
administering the tax or pledged and contributed to a convention
facilities authority established by the board of county
commissioners under Chapter 351. of the Revised Code and used by
the authority to pay the cost of constructing a facility in the
county, including paying bonds, or notes issued in anticipation
of bonds, as provided by that chapter, or paying the expenses of
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2741 S. B. No. 104 Page 94
As Introduced
maintaining, operating, or promoting such a facility. No portion
of the revenue arising from the tax need be returned to
municipal corporations or townships as required for taxes levied
under division (A) of this section.
(3) A resolution adopted under division (W) of this
section shall direct the board of elections to submit the
question of the proposed lodging tax to the electors of the
county at a special election held on the date specified by the
board in the resolution, provided that the election occurs not
less than ninety days after a certified copy of the resolution
is transmitted to the board of elections. A resolution submitted
to the electors under division (W) of this section shall not go
into effect unless it is approved by a majority of those voting
upon it. The resolution takes effect on the date the board of
county commissioners receives notification from the board of
elections of an affirmative vote.
(4) Once the tax is approved by the electors of the county
pursuant to division (W)(3) of this section, it shall not be
subject to diminution by initiative or referendum or by law
while any bonds, or notes in anticipation of bonds, issued by
the authority under Chapter 351. of the Revised Code to which
the revenue is pledged, remain outstanding in accordance with
their terms, unless provision is made by law or by the board of
county commissioners for an adequate substitute therefore that
is satisfactory to the trustee if a trust agreement secures the
bonds.
(5) The tax authorized by division (W) of this section
shall be in addition to any other tax that is levied pursuant to
this section.
(X)(1) As used in division (X) of this section:
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2771 S. B. No. 104 Page 95
As Introduced
(a) "Convention facilities authority," "cost," and
"facility" have the same meanings as in section 351.01 of the
Revised Code, except that "facility" does not include a "sports
facility," as that term is defined in that section, other than a
facility intended to house a major league soccer team.
(b) "Eligible county" means a county with a population
greater than eight hundred thousand but less than one million
that levies a tax under division (A) of this section.
(c) "Port authority" means a port authority created under
Chapter 4582. of the Revised Code.
(2) A board of county commissioners or the legislative
authority of an eligible county may, by resolution adopted by a
majority of the members of the board or legislative authority,
levy an excise tax at a rate not to exceed one per cent on
transactions by which lodging by a hotel or short-term rental
property is or is to be furnished to transient guests. All
revenue arising from the tax shall be used to pay the costs of
administering the tax or pledged and contributed to the
convention and visitors' bureau operating within the applicable
eligible county, a convention facilities authority within the
applicable eligible county, or a port authority and used by the
convention and visitors' bureau, the convention facilities
authority, or the port authority to pay the cost of acquiring,
constructing, renovating, expanding, maintaining, or operating
one or more facilities in the county, including paying bonds, or
notes issued in anticipation of bonds, or paying the expenses of
maintaining, operating, or promoting one or more facilities. No
portion of the revenue arising from the tax need be returned to
municipal corporations or townships as required for taxes levied
under division (A) of this section.
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2801 S. B. No. 104 Page 96
As Introduced
(3) The tax authorized by division (X) of this section
shall be in addition to any other tax that is levied pursuant to
this section.
(4) Any board of county commissioners of an eligible
county that, pursuant to division (D)(2) of this section, has
amended a resolution levying the tax authorized by division (A)
of this section may further amend the resolution to provide that
all or a portion of the revenue referred to in division (D)(2)
(b) of this section and division (A) of this section may be
pledged and contributed to pay the costs of acquiring,
constructing, renovating, expanding, maintaining, or operating
one or more facilities in the county, including paying bonds, or
notes issued in anticipation of bonds, or paying the expenses of
maintaining, operating, or promoting one or more facilities.
Sec. 5739.091. (A) For the purposes of a tax levied by a
county, township, or municipal corporation under section 5739.08
or 5739.09 of the Revised Code, a As used in this section:
(1) "Legislative authority" means a board of county
commissioners, board of township trustees, or the legislative
authority of a municipal corporation may adopt a resolution or
ordinance at any time specifying that "hotel," as otherwise
defined in section 5739.01 of the Revised Code, includes the
following:
(1) Establishments in which fewer than five rooms are used
for the accommodation of guests;
(2) Establishments at which rooms are used for the
accommodation of guests regardless of whether each room is
accessible through its own keyed entry or several rooms are
accessible through the same keyed entry; and, in determining the
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2830 S. B. No. 104 Page 97
As Introduced
number of rooms, all rooms are included regardless of the number
of structures in which the rooms are situated or the number of
parcels of land on which the structures are located if the
structures are under the same ownership and the structures are
not identified in advertisements of the accommodations as
distinct establishments. For the purposes of division (A)(2) of
this section, two or more structures are under the same
ownership if they are owned by the same person, or if they are
owned by two or more persons the majority of the ownership
interests of which are owned by the same person.
(B) The resolution or ordinance may apply to a tax imposed
pursuant to section 5739.08 or 5739.09 of the Revised Code prior
to the adoption of the resolution or ordinance if the resolution
or ordinance so states, but the tax shall not apply to
transactions by which lodging by such an establishment is
provided to transient guests prior to the adoption of the
resolution or ordinance. , the board of directors of a convention
facilities authority, or the board of directors of a lake
facilities authority.
(2) "Existing lodging tax" means a tax levied under
section 351.021, 353.06, 5739.08, or 5739.09 of the Revised Code
and in effect on the day before the first day of the first month
beginning thirty days after the effective date of this
amendment.
(B) A legislative authority shall not levy an existing
lodging tax on or after the first day of the first month
beginning thirty days after the effective date of this amendment
unless the legislative authority amends the resolution or
ordinance levying the tax to comply with the enactment of
division (C) of this section and the amendment of sections
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2860 S. B. No. 104 Page 98
As Introduced
351.01, 351.021, 353.06, 5739.08, and 5739.09 of the Revised
Code by this act. That amendment to such a resolution or
ordinance is not subject to a referendum, as prescribed by
sections 305.31 to 305.41 of the Revised Code, and shall take
effect without elector approval, notwithstanding the terms and
requirements applicable to the adoption of the resolution or
ordinance levying the existing lodging tax.
(C) A legislative authority shall require the operator of
a short-term rental platform to collect and remit the tax levied
under section 351.021, 353.06, 5739.08, or 5739.09 of the
Revised Code on all transactions by which lodging by a hotel or
short-term rental property is or is to be furnished to transient
guests through use of the platform.
Sec. 5741.01. As used in this chapter:
(A) "Person" includes individuals, receivers, assignees,
trustees in bankruptcy, estates, firms, partnerships,
associations, joint-stock companies, joint ventures, clubs,
societies, corporations, business trusts, governments, and
combinations of individuals of any form.
(B) "Storage" means and includes any keeping or retention
in this state for use or other consumption in this state.
(C) "Use" means and includes the exercise of any right or
power incidental to the ownership of the thing used. A thing is
also "used" in this state if its consumer gives or otherwise
distributes it, without charge, to recipients in this state.
(D) "Purchase" means acquired or received for a
consideration, whether such acquisition or receipt was effected
by a transfer of title, or of possession, or of both, or a
license to use or consume; whether such transfer was absolute or
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2889 S. B. No. 104 Page 99
As Introduced
conditional, and by whatever means the transfer was effected;
and whether the consideration was money, credit, barter, or
exchange. Purchase includes production, even though the article
produced was used, stored, or consumed by the producer. The
transfer of copyrighted motion picture films for exhibition
purposes is not a purchase, except such films as are used solely
for advertising purposes.
(E) "Seller" means the person from whom a purchase is
made, and includes every person engaged in this state or
elsewhere in the business of selling tangible personal property
or providing a service for storage, use, or other consumption or
benefit in this state; and when, in the opinion of the tax
commissioner, it is necessary for the efficient administration
of this chapter, to regard any salesperson, representative,
peddler, or canvasser as the agent of a dealer, distributor,
supervisor, or employer under whom the person operates, or from
whom the person obtains tangible personal property, sold by the
person for storage, use, or other consumption in this state,
irrespective of whether or not the person is making such sales
on the person's own behalf, or on behalf of such dealer,
distributor, supervisor, or employer, the commissioner may
regard the person as such agent, and may regard such dealer,
distributor, supervisor, or employer as the seller.
Except as provided in sections 5741.071 and 5747.072 of
the Revised Code, a marketplace facilitator shall be treated as
the "seller" with respect to all sales facilitated by the
marketplace facilitator on behalf of one or more marketplace
sellers on and after the first day of the first month that
begins at least thirty days after the marketplace facilitator
first has substantial nexus with this state. Otherwise, "seller"
does not include any person to the extent the person provides a
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2920 S. B. No. 104 Page 100
As Introduced
communications medium, such as, but not limited to, newspapers,
magazines, radio, television, or cable television, by means of
which sellers solicit purchases of their goods or services.
(F) "Consumer" means any person who has purchased tangible
personal property or has been provided a service for storage,
use, or other consumption or benefit in this state. "Consumer"
does not include a person who receives, without charge, tangible
personal property or a service.
A person who performs a facility management or similar
service contract for a contractee is a consumer of all tangible
personal property and services purchased for use in connection
with the performance of such contract, regardless of whether
title to any such property vests in the contractee. The purchase
of such property and services is not subject to the exception
for resale under division (E) of section 5739.01 of the Revised
Code.
(G)(1) "Price," except as provided in divisions (G)(2) to
(6) of this section, has the same meaning as in division (H)(1)
of section 5739.01 of the Revised Code.
(2) In the case of watercraft, outboard motors, or new
motor vehicles, "price" has the same meaning as in divisions (H)
(2) and (3) of section 5739.01 of the Revised Code.
(3) In the case of a nonresident business consumer that
purchases and uses tangible personal property outside this state
and subsequently temporarily stores, uses, or otherwise consumes
such tangible personal property in the conduct of business in
this state, the consumer or the tax commissioner may determine
the price based on the value of the temporary storage, use, or
other consumption, in lieu of determining the price pursuant to
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2949 S. B. No. 104 Page 101
As Introduced
division (G)(1) of this section. A price determination made by
the consumer is subject to review and redetermination by the
commissioner.
(4) In the case of tangible personal property held in this
state as inventory for sale or lease, and that is temporarily
stored, used, or otherwise consumed in a taxable manner, the
price is the value of the temporary use. A price determination
made by the consumer is subject to review and redetermination by
the commissioner.
(5) In the case of tangible personal property originally
purchased and used by the consumer outside this state, and that
becomes permanently stored, used, or otherwise consumed in this
state more than six months after its acquisition by the
consumer, the consumer or the commissioner may determine the
price based on the current value of such tangible personal
property, in lieu of determining the price pursuant to division
(G)(1) of this section. A price determination made by the
consumer is subject to review and redetermination by the
commissioner.
(6) If a consumer produces tangible personal property for
sale and removes that property from inventory for the consumer's
own use, the price is the produced cost of that tangible
personal property.
(H) "Nexus with this state" means that the seller engages
in continuous and widespread solicitation of purchases from
residents of this state or otherwise purposefully directs its
business activities at residents of this state.
(I)(1) "Substantial nexus with this state" means that the
seller has sufficient contact with this state, in accordance
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2978 S. B. No. 104 Page 102
As Introduced
with Section 8 of Article I of the Constitution of the United
States, to allow the state to require the seller to collect and
remit use tax on sales of tangible personal property or services
made to consumers in this state.
(2) "Substantial nexus with this state" is presumed to
exist when the seller does any of the following:
(a) Uses an office, distribution facility, warehouse,
storage facility, or similar place of business within this
state, whether operated by the seller or any other person, other
than a common carrier acting in its capacity as a common
carrier.
(b) Regularly uses employees, agents, representatives,
solicitors, installers, repairers, salespersons, or other
persons in this state for the purpose of conducting the business
of the seller or either to engage in a business with the same or
a similar industry classification as the seller selling a
similar product or line of products as the seller, or to use
trademarks, service marks, or trade names in this state that are
the same or substantially similar to those used by the seller.
(c) Uses any person, other than a common carrier acting in
its capacity as a common carrier, in this state for any of the
following purposes:
(i) Receiving or processing orders of the seller's goods
or services;
(ii) Using that person's employees or facilities in this
state to advertise, promote, or facilitate sales by the seller
to customers;
(iii) Delivering, installing, assembling, or performing
maintenance services for the seller's customers;
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3007 S. B. No. 104 Page 103
As Introduced
(iv) Facilitating the seller's delivery of tangible
personal property to customers in this state by allowing the
seller's customers to pick up property sold by the seller at an
office, distribution facility, warehouse, storage facility, or
similar place of business.
(d) Makes regular deliveries of tangible personal property
into this state by means other than common carrier.
(e) Has an affiliated person that has substantial nexus
with this state.
(f) Owns tangible personal property that is rented or
leased to a consumer in this state, or offers tangible personal
property, on approval, to consumers in this state.
(g) Has gross receipts in excess of one hundred thousand
dollars in the current or preceding calendar year from the sale
of tangible personal property for storage, use, or consumption
in this state or from providing services the benefit of which is
realized in this state.
(h) Engages, in the current or preceding calendar year, in
two hundred or more separate transactions selling tangible
personal property for storage, use, or consumption in this state
or providing services the benefit of which is realized in this
state.
(i) Is a short-term rental platform that furnishes lodging
in short-term rental properties located in this state to
transient guests.
(3) A seller presumed to have substantial nexus with this
state under divisions (I)(2)(a) to (f), (g), and (h) of this
section may rebut that presumption by demonstrating that
activities described in any of those divisions that are
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3036 S. B. No. 104 Page 104
As Introduced
conducted by a person in this state on the seller's behalf are
not significantly associated with the seller's ability to
establish or maintain a market in this state for the seller's
sales.
(4) A marketplace facilitator is presumed to have
substantial nexus with this state if either of the following
apply in the current or preceding calendar year:
(a) The aggregate gross receipts derived from sales of
tangible personal property for storage, use, or consumption in
this state or services the benefit of which is realized in this
state, including sales made by the marketplace facilitator on
its own behalf and sales facilitated by the marketplace
facilitator on behalf of one or more marketplace sellers, exceed
one hundred thousand dollars;
(b) The marketplace facilitator engages in on its own
behalf, or facilitates on behalf of one or more marketplace
sellers, two hundred or more separate transactions selling
tangible personal property for storage, use, or consumption in
this state or services the benefit of which is realized in this
state.
(5) A seller that does not have substantial nexus with
this state, and any affiliated person of the seller, before
selling or leasing tangible personal property or services to a
state agency, shall register with the tax commissioner in the
same manner as a seller described in division (A)(1) of section
5741.17 of the Revised Code.
(6) As used in division (I) of this section:
(a) "Affiliated person" means any person that is a member
of the same controlled group of corporations as the seller or
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3065 S. B. No. 104 Page 105
As Introduced
any other person that, notwithstanding the form of organization,
bears the same ownership relationship to the seller as a
corporation that is a member of the same controlled group of
corporations.
(b) "Controlled group of corporations" has the same
meaning as in section 1563(a) of the Internal Revenue Code.
(c) "State agency" has the same meaning as in section 1.60
of the Revised Code.
(J) "Fiscal officer" means, with respect to a regional
transit authority, the secretary-treasurer thereof, and with
respect to a county which is a transit authority, the fiscal
officer of the county transit board appointed pursuant to
section 306.03 of the Revised Code or, if the board of county
commissioners operates the county transit system, the county
auditor.
(K) "Territory of the transit authority" means all of the
area included within the territorial boundaries of a transit
authority as they from time to time exist. Such territorial
boundaries must at all times include all the area of a single
county or all the area of the most populous county which is a
part of such transit authority. County population shall be
measured by the most recent census taken by the United States
census bureau.
(L) "Transit authority" means a regional transit authority
created pursuant to section 306.31 of the Revised Code or a
county in which a county transit system is created pursuant to
section 306.01 of the Revised Code. For the purposes of this
chapter, a transit authority must extend to at least the entire
area of a single county. A transit authority which includes
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3094 S. B. No. 104 Page 106
As Introduced
territory in more than one county must include all the area of
the most populous county which is a part of such transit
authority. County population shall be measured by the most
recent census taken by the United States census bureau.
(M) "Providing a service" has the same meaning as in
section 5739.01 of the Revised Code.
(N) "Other consumption" includes receiving the benefits of
a service.
(O) "Lease" or "rental" has the same meaning as in section
5739.01 of the Revised Code.
(P) "Certified service provider" has the same meaning as
in section 5740.01 of the Revised Code.
(Q) "Marketplace facilitator" means a person that owns,
operates, or controls a physical or electronic marketplace
through which retail sales or delivery network services, or
both, are facilitated on behalf of one or more marketplace
sellers, or an affiliate of such a person. "Marketplace
facilitator" does not include a person that provides advertising
services, including tangible personal property or services
listed for sale, if the advertising service platform or forum
does not engage directly or indirectly through one or more
affiliated persons in the activities described in division (T)
(2) of this section.
(R) "Marketplace seller" means a person on behalf of which
a marketplace facilitator facilitates the sale of tangible
personal property for storage, use, or consumption in this state
or services the benefit of which are realized in this state,
regardless of whether or not the person has a substantial nexus
with this state.
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3123 S. B. No. 104 Page 107
As Introduced
(S) "Electronic marketplace" includes digital distribution
services, digital distribution platforms, online portals,
application stores, computer software applications, in-app
purchase mechanisms, or other digital products.
(T) A sale is "facilitated" by a marketplace facilitator
on behalf of a marketplace seller if it satisfies divisions (T)
(1), (2), and (3) of this section:
(1) The marketplace facilitator, directly or indirectly,
does any of the following:
(a) Lists, makes available, or advertises the tangible
personal property or services that are the subject of the sale
in a physical or electronic marketplace owned, operated, or
controlled by the marketplace facilitator;
(b) Transmits or otherwise communicates an offer or
acceptance of the sale between the marketplace seller and the
purchaser in a shop, store, booth, catalog, internet site, or
other similar forum;
(c) Owns, rents, licenses, makes available, or operates
any electronic or physical infrastructure or any property,
process, method, copyright, trademark, or patent that connects
the marketplace seller to the purchaser for the purpose of
making sales;
(d) Provides the marketplace in which the sale was made or
otherwise facilitates the sale regardless of ownership or
control of the tangible personal property or services that are
the subject of the sale;
(e) Provides software development or research and
development services directly related to a physical or
electronic marketplace that is involved in one or more of the
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3152 S. B. No. 104 Page 108
As Introduced
activities described in division (T)(1) of this section;
(f) Provides fulfillment or storage services for the
marketplace seller that are related to the tangible personal
property or services that are the subject of the sale;
(g) Sets the price of the sale on behalf of the
marketplace seller;
(h) Provides or offers customer service to the marketplace
seller or the marketplace seller's customers, or accepts or
assists with taking orders, returns, or exchanges of the
tangible personal property or services that are the subject of
the sale;
(i) Brands or otherwise identifies the sale as a sale of
the marketplace facilitator.
(2) The marketplace facilitator, directly or indirectly,
does any of the following:
(a) Collects the price of the tangible personal property
or services sold to the consumer;
(b) Provides payment processing services for the sale;
(c) Collects payment in connection with the sale from the
consumer through terms and conditions, agreements, or
arrangements with a third party, and transmits that payment to
the marketplace seller, regardless of whether the person
collecting and transmitting such payment receives compensation
or other consideration in exchange for the service;
(d) Provides virtual currency that consumers are allowed
or required to use to purchase the tangible personal property or
services that are the subject of the sale.
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3179 S. B. No. 104 Page 109
As Introduced
(3) The subject of the sale is tangible personal property
or services other than lodging by a hotel that is or is to be
furnished to transient guests.
(U) "Delivery network company," "delivery network
services," and "local merchant" have the same meanings as in
section 5739.01 of the Revised Code.
(V) "Short-term rental platform," "short-term rental
property," and "transient guest" have the same meanings as in
section 5739.01 of the Revised Code.
Section 2. That existing sections 351.01, 351.021, 353.06,
4735.11, 5739.01, 5739.08, 5739.09, 5739.091, and 5741.01 of the
Revised Code are hereby repealed.
Section 3. The amendment or enactment by this act of
division (C) of section 5739.091 and sections 351.01, 351.021,
353.06, 5739.08, and 5739.09 of the Revised Code applies on and
after the first day of the first month beginning thirty days
after the effective date of this section.
The amendment by this act of sections 5739.01 and 5741.01
of the Revised Code applies on and after the first day of the
first month beginning thirty or more days after the effective
date of this section.
Section 4. Section 5739.01 of the Revised Code is
presented in this act as a composite of the section as amended
by both H.B. 315 and S.B. 196 of the 135th General Assembly. The
General Assembly, applying the principle stated in division (B)
of section 1.52 of the Revised Code that amendments are to be
harmonized if reasonably capable of simultaneous operation,
finds that the composite is the resulting version of the section
in effect prior to the effective date of the section as
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3208 S. B. No. 104 Page 110
As Introduced
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