SB 104

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,  1
  5739.01, 5739.08, 5739.09, 5739.091, and 5741.01        2
  and to enact section 5325.01 of the Revised Code        3
  to limit the authority of local governments to  4
  regulate short-term rental properties, to extend        5
  local lodging taxes to short-term rentals, to  6
  require collection of those taxes by short-term  7
  rental platforms, and to require real estate  8
  licenses to be issued electronically.  9
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 351.01, 351.021, 353.06, 4735.11,  10
5739.01, 5739.08, 5739.09, 5739.091, and 5741.01 be amended and  11
section 5325.01 of the Revised Code be enacted to read as  12
follows:  13
     Sec. 351.01. As used in this chapter:  14
     (A) "Convention facilities authority" means a body  15
corporate and politic created pursuant to section 351.02 of the  16
Revised Code.  17
     (B) "Governmental agency" means a department, division, or  18
other unit of the state government or of a municipal  19
corporation, county, township, or other political subdivision of        20
S. B. No. 104  Page 2
As Introduced
the state; any state university or college, as defined in  21
section 3345.12 of the Revised Code, community college, state  22
community college, university branch, or technical college; any  23
other public corporation or agency having the power to acquire,  24
construct, or operate facilities; the United States or any  25
agency thereof; and any agency, commission, or authority  26
established pursuant to an interstate compact or agreement.  27
       (C) "Person" means any individual, firm, partnership,  28
association, or corporation, or any combination of them.  29
       (D) "Facility" or "facilities" means any convention,  30
entertainment, or sports facility, or combination of them,  31
located within the territory of the convention facilities  32
authority, together with all hotels, parking facilities,  33
walkways, and other auxiliary facilities, real and personal  34
property, property rights, easements and interests that may be  35
appropriate for, or used in connection with, the operation of  36
the facility.  37
       (E) "Cost" means the cost of acquisition of all land,  38
rights-of-way, property rights, easements, franchise rights, and  39
interests required for such acquisition; the cost of demolishing  40
or removing any buildings or structures on land so acquired,  41
including the cost of acquiring any lands to which such  42
buildings or structures may be moved; the cost of acquiring or  43
constructing and equipping a principal office of the convention  44
facilities authority; the cost of diverting highways,  45
interchange of highways, access roads to private property,  46
including the cost of land or easements for such access roads;  47
the cost of public utility and common carrier relocation or  48
duplication; the cost of all machinery, furnishings, and  49
equipment; financing charges; interest prior to and during  50
S. B. No. 104  Page 3
As Introduced
construction and for no more than eighteen months after  51
completion of construction; expenses of research and development  52
with respect to facilities; legal expenses; expenses of  53
obtaining plans, specifications, engineering surveys, studies,  54
and estimates of cost and revenues; working capital; expenses  55
necessary or incident to determining the feasibility or  56
practicability of acquiring or constructing such facility;  57
administrative expense; and such other expenses as may be  58
necessary or incident to the acquisition or construction of the  59
facility, the financing of such acquisition or construction,  60
including the amount authorized in the resolution of the  61
convention facilities authority providing for the issuance of  62
convention facilities authority revenue bonds to be paid into  63
any special funds from the proceeds of such bonds, the cost of  64
issuing the bonds, and the financing of the placing of such  65
facility in operation. Any obligation, cost, or expense incurred  66
by any governmental agency or person for surveys, borings,  67
preparation of plans and specifications, and other engineering  68
services, or any other cost described above, in connection with  69
the acquisition or construction of a facility may be regarded as  70
part of the cost of such facility and may be reimbursed out of  71
the proceeds of convention facilities authority revenue bonds as  72
authorized by this chapter.  73
       (F) "Owner" includes a person having any title or interest  74
in any property, rights, easements, or interests authorized to  75
be acquired by Chapter 351. of the Revised Code.  76
       (G) "Revenues" means all rentals and other charges  77
received by the convention facilities authority for the use or  78
services of any facility, the sale of any merchandise, or the  79
operation of any concessions; any gift or grant received with  80
respect to any facility, any moneys received with respect to the  81
S. B. No. 104  Page 4
As Introduced
lease, sublease, sale, including installment sale or conditional  82
sale, or other disposition of a facility or part thereof; moneys  83
received in repayment of and for interest on any loans made by  84
the authority to a person or governmental agency, whether from  85
the United States or any department, administration, or agency  86
thereof, or otherwise; proceeds of convention facilities  87
authority revenue bonds to the extent the use thereof for  88
payment of principal or of premium, if any, or interest on the  89
bonds is authorized by the authority; proceeds from any  90
insurance, appropriation, or guaranty pertaining to a facility  91
or property mortgaged to secure bonds or pertaining to the  92
financing of the facility; income and profit from the investment  93
of the proceeds of convention facilities authority revenue bonds  94
or of any revenues; contributions of the proceeds of a tax  95
levied pursuant to division (C) of section 5739.09 of the  96
Revised Code; and moneys transmitted to the authority pursuant  97
to division (B) of section 5739.211 and division (B) of section  98
5741.031 of the Revised Code.  99
       (H) "Public roads" includes all public highways, roads,  100
and streets in the state, whether maintained by the state,  101
county, city, township, or other political subdivision.  102
       (I) "Construction," unless the context indicates a  103
different meaning or intent, includes, but is not limited to,  104
reconstruction, enlargement, improvement, or providing fixtures,  105
furnishings, and equipment.  106
       (J) "Convention facilities authority revenue bonds" or  107
"revenue bonds," unless the context indicates a different  108
meaning or intent, includes convention facilities authority  109
revenue notes, convention facilities authority revenue renewal  110
notes, and convention facilities authority revenue refunding  111
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As Introduced
bonds.  112
        (K) "Convention facilities authority tax anticipation  113
bonds" or "tax anticipation bonds," unless the context indicates  114
a different meaning, includes convention facilities authority  115
tax anticipation bonds, tax anticipation notes, tax anticipation  116
renewal notes, and tax anticipation refunding bonds.  117
        (L) "Bonds and notes" means convention facilities  118
authority revenue bonds and convention facilities authority tax  119
anticipation bonds.  120
        (M) "Territory of the authority" means all of the area of  121
the county creating the convention facilities authority.  122
        (N) "Excise taxes" means any of the taxes levied pursuant  123
to division (B) or (C) of section 351.021 of the Revised Code.  124
"Excise taxes" does not include taxes levied pursuant to section  125
4301.424, 5743.026, or 5743.324 of the Revised Code.  126
        (O) "Transaction" means the charge by a hotel or short-  127
term rental property for each occupancy by transient guests of a  128
room or suite of rooms used in a hotel or short-term rental  129
property as a single unit for any period of twenty-four hours or  130
less.  131
        (P) "Hotel" "Hotel," "short-term rental property," and  132
"transient guests" have the same meanings as in section 5739.01  133
of the Revised Code.  134
        (Q) "Sports facility" means a facility intended to house  135
major league professional athletic teams.  136
        (R) "Constructing" or "construction" includes providing  137
fixtures, furnishings, and equipment.  138
        Sec. 351.021. (A) The resolution of the county  139
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As Introduced
commissioners creating a convention facilities authority, or any  140
amendment or supplement to that resolution, may authorize the  141
authority to levy one or both of the excise taxes authorized by  142
division (B) of this section to pay the cost of one or more  143
facilities; to pay principal, interest, and premium on  144
convention facilities authority tax anticipation bonds issued to  145
pay those costs; to pay the operating costs of the authority; to  146
pay operating and maintenance costs of those facilities; and to  147
pay the costs of administering the excise tax.  148
       (B) The board of directors of a convention facilities  149
authority that has been authorized pursuant to resolution  150
adopted, amended, or supplemented by the board of county  151
commissioners pursuant to division (A) of this section may levy,  152
by resolution adopted on or before December 31, 1988, either or  153
both of the following:  154
       (1) Within the territory of the authority, an additional  155
excise tax not to exceed four per cent on each transaction. The  156
excise tax authorized by division (B)(1) of this section shall  157
be in addition to any excise tax levied pursuant to section  158
5739.08 or 5739.09 of the Revised Code, or division (B)(2) of  159
this section.  160
       (2) Within that portion of any municipal corporation that  161
is located within the territory of the authority or within the  162
boundaries of any township that is located within the territory  163
of the authority, which municipal corporation or township is  164
levying any portion of the excise tax authorized by division (A)  165
of section 5739.08 of the Revised Code, and with the approval,  166
by ordinance or resolution, of the legislative authority of that  167
municipal corporation or township, an additional excise tax not  168
to exceed nine-tenths of one per cent on each transaction. The  169
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As Introduced
excise tax authorized by division (B)(2) of this section may be  170
levied only if, on the effective date of the levy specified in  171
the resolution making the levy, the amount being levied pursuant  172
to division (A) of section 5739.08 of the Revised Code by each  173
municipal corporation or township in which the tax authorized by  174
division (B)(2) of this section will be levied, when added to  175
the amount levied under division (B)(2) of this section, does  176
not exceed three per cent on each transaction. The excise tax  177
authorized by division (B)(2) of this section shall be in  178
addition to any excise tax that is levied pursuant to section  179
5739.08 or 5739.09 of the Revised Code, or division (B)(1) of  180
this section.  181
       (C)(1) The board of directors of a convention facilities  182
authority that is located in an eligible Appalachian county;  183
that has been authorized pursuant to resolution adopted,  184
amended, or supplemented by the board of county commissioners  185
pursuant to division (A) of this section; and that is not  186
levying a tax under division (B)(1) or (2) of this section may  187
levy within the territory of the authority, by resolution  188
adopted on or before December 31, 2005, an additional excise tax  189
not to exceed three per cent on each transaction. The excise tax  190
authorized under division (C)(1) of this section shall be in  191
addition to any excise tax levied pursuant to section 5739.08 or  192
5739.09 of the Revised Code.  193
       As used in division (C)(1) of this section, "eligible  194
Appalachian county" means a county in this state designated as  195
being in the "Appalachian region" under the "Appalachian  196
Regional Development Act of 1965," 79 Stat. 4, 40 U.S.C. App.  197
403, and having a population less than eighty thousand according  198
to the most recent federal decennial census.  199
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As Introduced
       (2) Division (C)(2) of this section applies only to a  200
convention facilities authority located in a county with a  201
population, according to the 2000 federal decennial census, of  202
at least one hundred thirty-five thousand and not more than one  203
hundred fifty thousand and containing entirely within its  204
boundaries the territory of a municipal corporation with a  205
population according to that census of more than fifty thousand.  206
The board of directors of such a convention facilities  207
authority, by resolution adopted on or before November 1, 2009,  208
may levy within the territory of the authority an excise tax on  209
transactions by which lodging by a hotel or short-term rental  210
property is or is to be furnished to transient guests at a rate  211
not to exceed three per cent on such transactions for the same  212
purposes for which a tax may be levied under division (B) of  213
this section. The resolution may be adopted only if the board of  214
county commissioners of the county, by resolution, authorizes  215
the levy of the tax. The resolution of the board of county  216
commissioners is subject to referendum as prescribed by sections  217
305.31 to 305.41 of the Revised Code. If, pursuant to those  218
procedures, a referendum is to be held, the board's resolution  219
does not take effect until approved by a majority of electors  220
voting on the question. The convention facilities authority may  221
adopt the resolution authorized by division (C)(2) of this  222
section before the election, but the authority's resolution  223
shall not take effect if the board of commissioners' resolution  224
is not approved at the election. A tax levied under division (C)  225
(2) of this section is in addition to any tax levied under  226
section 5739.09 of the Revised Code.  227
       The board of directors of a convention facilities  228
authority that levies an excise tax under division (C)(2) of  229
this section may, by resolution adopted by a majority of the  230
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As Introduced
members of the board on or before November 1, 2021, amend the  231
resolution levying the tax to increase the rate of the tax by  232
not more than an additional one per cent on each transaction.  233
The resolution shall provide that all revenue from the increase  234
in rate shall be used for the same purposes for which a tax may  235
be levied under division (B) of this section. The resolution may  236
be adopted only if the board of county commissioners of the  237
county, by resolution, authorizes the rate increase.  238
       (3) The board of directors of a convention facilities  239
authority created between July 1, 2019, and December 31, 2019,  240
by resolution adopted on or before December 30, 2020, may levy  241
within the territory of the authority an excise tax on  242
transactions by which lodging by a hotel or short-term rental  243
property is or is to be furnished to transient guests at a rate  244
not to exceed three per cent on such transactions for the  245
purposes described in division (A) of this section. This tax  246
shall be in addition to any excise tax levied pursuant to this  247
section or section 5739.08 or 5739.09 of the Revised Code. The  248
resolution levying the tax shall not take effect sooner than  249
ninety days after the convention facilities authority is  250
created.  251
       (D) The authority shall provide for the administration and  252
allocation of an excise tax levied pursuant to division (B) or  253
(C) of this section. All receipts arising from those excise  254
taxes shall be expended for the purposes provided in, and in  255
accordance with this section and section 351.141 of the Revised  256
Code. An excise tax levied under division (B) or (C) of this  257
section shall remain in effect at the rate at which it is levied  258
for at least the duration of the period for which the receipts  259
from the tax have been anticipated and pledged pursuant to  260
section 351.141 of the Revised Code.  261
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As Introduced
       (E) Except as provided in division (B)(2) of this section,  262
the levy of an excise tax on each transaction pursuant to  263
sections 5739.08 and 5739.09 of the Revised Code does not  264
prevent a convention facilities authority from levying an excise  265
tax pursuant to division (B) or (C) of this section.  266
       (F) A convention facilities authority located in a county  267
with a population greater than eighty thousand but less than  268
ninety thousand according to the 2010 federal decennial census  269
that levies a tax under division (B) of this section may amend  270
the resolution levying the tax to allocate a portion of the  271
revenue from the tax for support of tourism-related sites or  272
facilities and programs operated by the county or a municipal  273
corporation within the county in which the authority is located  274
or for the purpose of leasing lands for county fairs, erecting  275
buildings for county fair purposes, making improvements on a  276
county fairground, or for any purpose connected with the use of  277
a county fairground or with the management thereof by the county  278
in which the authority is located. The revenue allocated by the  279
authority for such purposes in a calendar year shall not exceed  280
twenty-five per cent of the total revenue from the tax in the  281
preceding calendar year. Revenue allocated for such purposes  282
that is not fully used by the end of the calendar year may be  283
carried forward for use in subsequent calendar years. Any amount  284
carried forward does not count toward the limitation on the  285
amount that may be allocated for such purposes in succeeding  286
calendar years.  287
       Sec. 353.06. As used in this section, "hotel" "hotel,"  288
"short-term rental property," and "transient guests" have the  289
same meanings as in section 5739.01 of the Revised Code.  290
       A resolution creating a lake facilities authority under  291
S. B. No. 104  Page 11
As Introduced
section 353.02 of the Revised Code, or any amendments or  292
supplements thereto, may authorize the authority to levy an  293
excise tax on transactions by which lodging in a hotel or short-  294
term rental property is or is to be furnished to transient  295
guests to pay any costs authorized under this chapter; to pay  296
principal, interest, and premium on lake facilities authority  297
tax anticipation bonds issued to pay those costs; to pay the  298
operating costs of the authority; and to pay the costs of  299
administering the tax.  300
       Upon the affirmative vote of at least a majority of the  301
qualified electors in a primary or general election within the  302
impacted lake district voting at an election held for the  303
purpose of authorizing the tax, the board of directors of a lake  304
facilities authority authorized to levy a tax under this section  305
may, by resolution, levy an additional excise tax within the  306
territory of the impacted lake district on all transactions by  307
which lodging in a hotel or short-term rental property is or is  308
to be furnished to transient guests. The rate of the tax, when  309
added to the aggregate rate of excise taxes levied in the  310
impacted lake district pursuant to section 351.021, 5739.08, or  311
5739.09 of the Revised Code, shall not cause the total aggregate  312
rate to exceed five per cent on any such transaction.  313
       The lake facilities authority shall provide for the  314
administration and allocation of a tax levied pursuant to this  315
section. All receipts arising from the tax shall be expended for  316
the purposes provided in, and in accordance with, this section.  317
An excise tax levied under this section shall remain in effect  318
at the rate at which it is levied for at least the duration of  319
the period for which the receipts from the tax have been  320
anticipated and pledged pursuant to section 353.08 of the  321
Revised Code.  322
S. B. No. 104  Page 12
As Introduced
       The form of the ballot in an election held on the question  323
of levying a tax proposed pursuant to this section shall be as  324
follows or in any other form acceptable to the secretary of  325
state:  326
       "An excise tax on all transactions by which lodging in a  327
hotel is or is to be furnished to transient guests within the  328
territory of the (name of impacted lake district) ___________  329
for the purpose of __________ at a rate of _________ for  330
____________ (number of years the tax is to be levied).  331
  332
  For the Excise Tax
  "
  Against the Excise Tax
       Sec. 4735.11. The form and size of licenses Licenses  333
issued under this chapter shall be issued in an electronic  334
format in a form and size prescribed by the Ohio real estate  335
commission. Each broker's or foreign real estate dealer's  336
license shall show the name and address of the licensee, and in  337
the case of partnership, association, limited liability company,  338
limited liability partnership, and corporation licenses, the  339
name and address of each of the members or officers of the  340
partnership, association, limited liability company, limited  341
liability partnership, or corporation. A real estate  342
salesperson's license or a foreign real estate salesperson's  343
license shall show the name of the real estate broker or foreign  344
real estate dealer with whom the salesperson is or is to be  345
associated. Each license shall be issued under the seal  346
prescribed in section 121.20 of the Revised Code and be signed  347
by the president of the commission.  348
       Sec. 5325.01. (A) As used in this section:  349
S. B. No. 104  Page 13
As Introduced
       (1) "Local government" means a township, county, or  350
municipal corporation.  351
       (2) "Short-term rental property" means a house, apartment,  352
condominium, cooperative unit, cabin, cottage, or bungalow, or  353
one or more rooms therein, that is, or are, offered to  354
transients or travelers for a fee for a period of thirty days or  355
less, regardless of whether amenities, including meals, daily  356
housekeeping, concierge services, or linen services, are  357
provided.  358
       (B) No local government shall adopt or enforce a  359
regulation, requirement, restriction, or other resolution or  360
ordinance concerning short-term rental properties that relates  361
to any of the following:  362
       (1) Prohibiting short-term rental properties;  363
       (2) Creation of a lottery system to be eligible for short-  364
term rental property registration;  365
       (3) Use of zoning requirements to prohibit or limit short-  366
term rental properties in areas that are zoned to allow for  367
residential use;  368
       (4) Restricting the number of short-term rental properties  369
a person may operate;  370
       (5) A requirement that an owner of a short-term rental  371
property occupy the short-term rental property.  372
       (C) A local government may require registration or  373
licensing of short-term rental properties. Any fee associated  374
with a registration or licensing of a short-term rental property  375
is subject to both of the following:  376
       (1) The amount of the fee shall not exceed twenty dollars  377
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As Introduced
per year for each short-term rental property.  378
        (2) Fees collected by the local government shall be used  379
only for the enforcement of regulations on short-term rental  380
properties.  381
        Sec. 5739.01. As used in this chapter:  382
        (A) "Person" includes individuals, receivers, assignees,  383
trustees in bankruptcy, estates, firms, partnerships,  384
associations, joint-stock companies, joint ventures, clubs,  385
societies, corporations, the state and its political  386
subdivisions, and combinations of individuals of any form.  387
        (B) "Sale" and "selling" include all of the following  388
transactions for a consideration in any manner, whether  389
absolutely or conditionally, whether for a price or rental, in  390
money or by exchange, and by any means whatsoever:  391
        (1) All transactions by which title or possession, or  392
both, of tangible personal property, is or is to be transferred,  393
or a license to use or consume tangible personal property is or  394
is to be granted;  395
        (2) All transactions by which lodging by a hotel is or is  396
to be furnished to transient guests;  397
        (3) All transactions by which:  398
        (a) An item of tangible personal property is or is to be  399
repaired, except property, the purchase of which would not be  400
subject to the tax imposed by section 5739.02 of the Revised  401
Code;  402
        (b) An item of tangible personal property is or is to be  403
installed, except property, the purchase of which would not be  404
subject to the tax imposed by section 5739.02 of the Revised  405
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As Introduced
Code or property that is or is to be incorporated into and will  406
become a part of a production, transmission, transportation, or  407
distribution system for the delivery of a public utility  408
service;  409
       (c) The service of washing, cleaning, waxing, polishing,  410
or painting a motor vehicle is or is to be furnished;  411
       (d) Laundry and dry cleaning services are or are to be  412
provided;  413
       (e) Automatic data processing, computer services, or  414
electronic information services are or are to be provided for  415
use in business when the true object of the transaction is the  416
receipt by the consumer of automatic data processing, computer  417
services, or electronic information services rather than the  418
receipt of personal or professional services to which automatic  419
data processing, computer services, or electronic information  420
services are incidental or supplemental. Notwithstanding any  421
other provision of this chapter, such transactions that occur  422
between members of an affiliated group are not sales. An  423
"affiliated group" means two or more persons related in such a  424
way that one person owns or controls the business operation of  425
another member of the group. In the case of corporations with  426
stock, one corporation owns or controls another if it owns more  427
than fifty per cent of the other corporation's common stock with  428
voting rights.  429
       (f) Telecommunications service, including prepaid calling  430
service, prepaid wireless calling service, or ancillary service,  431
is or is to be provided, but not including coin-operated  432
telephone service;  433
       (g) Landscaping and lawn care service is or is to be  434
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As Introduced
provided;  435
       (h) Private investigation and security service is or is to  436
be provided;  437
       (i) Information services or tangible personal property is  438
provided or ordered by means of a nine hundred telephone call;  439
       (j) Building maintenance and janitorial service is or is  440
to be provided;  441
       (k) Exterminating service is or is to be provided;  442
       (l) Physical fitness facility service is or is to be  443
provided;  444
       (m) Recreation and sports club service is or is to be  445
provided;  446
       (n) Satellite broadcasting service is or is to be  447
provided;  448
       (o) Personal care service is or is to be provided to an  449
individual. As used in this division, "personal care service"  450
includes skin care, the application of cosmetics, manicuring,  451
pedicuring, hair removal, tattooing, body piercing, tanning,  452
massage, and other similar services. "Personal care service"  453
does not include a service provided by or on the order of a  454
licensed physician, certified nurse-midwife, clinical nurse  455
specialist, certified nurse practitioner, or chiropractor, or  456
the cutting, coloring, or styling of an individual's hair.  457
       (p) The transportation of persons by motor vehicle or  458
aircraft is or is to be provided, when the transportation is  459
entirely within this state, except for transportation provided  460
by an ambulance service, by a transit bus, as defined in section  461
5735.01 of the Revised Code, and transportation provided by a  462
S. B. No. 104  Page 17
As Introduced
citizen of the United States holding a certificate of public  463
convenience and necessity issued under 49 U.S.C. 41102;  464
       (q) Motor vehicle towing service is or is to be provided.  465
As used in this division, "motor vehicle towing service" means  466
the towing or conveyance of a wrecked, disabled, or illegally  467
parked motor vehicle.  468
       (r) Snow removal service is or is to be provided. As used  469
in this division, "snow removal service" means the removal of  470
snow by any mechanized means, but does not include the providing  471
of such service by a person that has less than five thousand  472
dollars in sales of such service during the calendar year.  473
       (s) Electronic publishing service is or is to be provided  474
to a consumer for use in business, except that such transactions  475
occurring between members of an affiliated group, as defined in  476
division (B)(3)(e) of this section, are not sales.  477
       (4) All transactions by which printed, imprinted,  478
overprinted, lithographic, multilithic, blueprinted,  479
photostatic, or other productions or reproductions of written or  480
graphic matter are or are to be furnished or transferred;  481
       (5) The production or fabrication of tangible personal  482
property for a consideration for consumers who furnish either  483
directly or indirectly the materials used in the production of  484
fabrication work; and include the furnishing, preparing, or  485
serving for a consideration of any tangible personal property  486
consumed on the premises of the person furnishing, preparing, or  487
serving such tangible personal property. Except as provided in  488
section 5739.03 of the Revised Code, a construction contract  489
pursuant to which tangible personal property is or is to be  490
incorporated into a structure or improvement on and becoming a  491
S. B. No. 104  Page 18
As Introduced
part of real property is not a sale of such tangible personal  492
property. The construction contractor is the consumer of such  493
tangible personal property, provided that the sale and  494
installation of carpeting, the sale and installation of  495
agricultural land tile, the sale and erection or installation of  496
portable grain bins, or the provision of landscaping and lawn  497
care service and the transfer of property as part of such  498
service is never a construction contract.  499
       As used in division (B)(5) of this section:  500
       (a) "Agricultural land tile" means fired clay or concrete  501
tile, or flexible or rigid perforated plastic pipe or tubing,  502
incorporated or to be incorporated into a subsurface drainage  503
system appurtenant to land used or to be used primarily in  504
production by farming, agriculture, horticulture, or  505
floriculture. The term does not include such materials when they  506
are or are to be incorporated into a drainage system appurtenant  507
to a building or structure even if the building or structure is  508
used or to be used in such production.  509
       (b) "Portable grain bin" means a structure that is used or  510
to be used by a person engaged in farming or agriculture to  511
shelter the person's grain and that is designed to be  512
disassembled without significant damage to its component parts.  513
       (6) All transactions in which all of the shares of stock  514
of a closely held corporation are transferred, or an ownership  515
interest in a pass-through entity, as defined in section 5733.04  516
of the Revised Code, is transferred, if the corporation or pass-  517
through entity is not engaging in business and its entire assets  518
consist of boats, planes, motor vehicles, or other tangible  519
personal property operated primarily for the use and enjoyment  520
of the shareholders or owners;  521
S. B. No. 104  Page 19
As Introduced
       (7) All transactions in which a warranty, maintenance or  522
service contract, or similar agreement by which the vendor of  523
the warranty, contract, or agreement agrees to repair or  524
maintain the tangible personal property of the consumer is or is  525
to be provided;  526
       (8) The transfer of copyrighted motion picture films used  527
solely for advertising purposes, except that the transfer of  528
such films for exhibition purposes is not a sale;  529
       (9) All transactions by which tangible personal property  530
is or is to be stored, except such property that the consumer of  531
the storage holds for sale in the regular course of business;  532
       (10) All transactions in which "guaranteed auto  533
protection" is provided whereby a person promises to pay to the  534
consumer the difference between the amount the consumer receives  535
from motor vehicle insurance and the amount the consumer owes to  536
a person holding title to or a lien on the consumer's motor  537
vehicle in the event the consumer's motor vehicle suffers a  538
total loss under the terms of the motor vehicle insurance policy  539
or is stolen and not recovered, if the protection and its price  540
are included in the purchase or lease agreement;  541
       (11)(a) Except as provided in division (B)(11)(b) of this  542
section, all transactions by which health care services are paid  543
for, reimbursed, provided, delivered, arranged for, or otherwise  544
made available by a medicaid health insuring corporation  545
pursuant to the corporation's contract with the state.  546
       (b) If the centers for medicare and medicaid services of  547
the United States department of health and human services  548
determines that the taxation of transactions described in  549
division (B)(11)(a) of this section constitutes an impermissible  550
S. B. No. 104  Page 20
As Introduced
health care-related tax under the "Social Security Act," section  551
1903(w), 42 U.S.C. 1396b(w), and regulations adopted thereunder,  552
the medicaid director shall notify the tax commissioner of that  553
determination. Beginning with the first day of the month  554
following that notification, the transactions described in  555
division (B)(11)(a) of this section are not sales for the  556
purposes of this chapter or Chapter 5741. of the Revised Code.  557
The tax commissioner shall order that the collection of taxes  558
under sections 5739.02, 5739.021, 5739.023, 5739.026, 5741.02,  559
5741.021, 5741.022, and 5741.023 of the Revised Code shall cease  560
for transactions occurring on or after that date.  561
       (12) All transactions by which a specified digital product  562
is provided for permanent use or less than permanent use,  563
regardless of whether continued payment is required.  564
       (13) All transactions by a delivery network company for  565
the company's delivery network services, provided the company  566
has a waiver issued under section 5741.072 of the Revised Code.  567
       Except as provided in this section, "sale" and "selling"  568
do not include transfers of interest in leased property where  569
the original lessee and the terms of the original lease  570
agreement remain unchanged, or professional, insurance, or  571
personal service transactions that involve the transfer of  572
tangible personal property as an inconsequential element, for  573
which no separate charges are made.  574
       (C) "Vendor" means the person providing the service or by  575
whom the transfer effected or license given by a sale is or is  576
to be made or given and, for sales described in division (B)(3)  577
(i) of this section, the telecommunications service vendor that  578
provides the nine hundred telephone service; if two or more  579
persons are engaged in business at the same place of business  580
S. B. No. 104  Page 21
As Introduced
under a single trade name in which all collections on account of  581
sales by each are made, such persons shall constitute a single  582
vendor.  583
       Physicians, certified nurse-midwives, clinical nurse  584
specialists, certified nurse practitioners, dentists, hospitals,  585
and veterinarians who are engaged in selling tangible personal  586
property as received from others, such as eyeglasses,  587
mouthwashes, dentifrices, or similar articles, are vendors.  588
Veterinarians who are engaged in transferring to others for a  589
consideration drugs, the dispensing of which does not require an  590
order of a licensed veterinarian, physician, certified nurse-  591
midwife, clinical nurse specialist, or certified nurse  592
practitioner under federal law, are vendors.  593
       The operator of any peer-to-peer car sharing program shall  594
be considered to be the vendor.  595
       (D)(1) "Consumer" means the person for whom the service is  596
provided, to whom the transfer effected or license given by a  597
sale is or is to be made or given, to whom the service described  598
in division (B)(3)(f) or (i) of this section is charged, or to  599
whom the admission is granted.  600
       (2) Physicians, certified nurse-midwives, clinical nurse  601
specialists, certified nurse practitioners, dentists, hospitals,  602
and blood banks operated by nonprofit institutions and persons  603
licensed to practice veterinary medicine, surgery, and dentistry  604
are consumers of all tangible personal property and services  605
purchased by them in connection with the practice of medicine,  606
dentistry, the rendition of hospital or blood bank service, or  607
the practice of veterinary medicine, surgery, and dentistry. In  608
addition to being consumers of drugs administered by them or by  609
their assistants according to their direction, veterinarians  610
S. B. No. 104  Page 22
As Introduced
also are consumers of drugs that under federal law may be  611
dispensed only by or upon the order of a licensed veterinarian,  612
physician, certified nurse-midwife, clinical nurse specialist,  613
or certified nurse practitioner, when transferred by them to  614
others for a consideration to provide treatment to animals as  615
directed by the veterinarian.  616
       (3) A person who performs a facility management, or  617
similar service contract for a contractee is a consumer of all  618
tangible personal property and services purchased for use in  619
connection with the performance of such contract, regardless of  620
whether title to any such property vests in the contractee. The  621
purchase of such property and services is not subject to the  622
exception for resale under division (E) of this section.  623
       (4)(a) In the case of a person who purchases printed  624
matter for the purpose of distributing it or having it  625
distributed to the public or to a designated segment of the  626
public, free of charge, that person is the consumer of that  627
printed matter, and the purchase of that printed matter for that  628
purpose is a sale.  629
       (b) In the case of a person who produces, rather than  630
purchases, printed matter for the purpose of distributing it or  631
having it distributed to the public or to a designated segment  632
of the public, free of charge, that person is the consumer of  633
all tangible personal property and services purchased for use or  634
consumption in the production of that printed matter. That  635
person is not entitled to claim exemption under division (B)(42)  636
(f) of section 5739.02 of the Revised Code for any material  637
incorporated into the printed matter or any equipment, supplies,  638
or services primarily used to produce the printed matter.  639
       (c) The distribution of printed matter to the public or to  640
S. B. No. 104  Page 23
As Introduced
a designated segment of the public, free of charge, is not a  641
sale to the members of the public to whom the printed matter is  642
distributed or to any persons who purchase space in the printed  643
matter for advertising or other purposes.  644
       (5) A person who makes sales of any of the services listed  645
in division (B)(3) of this section is the consumer of any  646
tangible personal property used in performing the service. The  647
purchase of that property is not subject to the resale exception  648
under division (E) of this section.  649
       (6) A person who engages in highway transportation for  650
hire is the consumer of all packaging materials purchased by  651
that person and used in performing the service, except for  652
packaging materials sold by such person in a transaction  653
separate from the service.  654
       (7) In the case of a transaction for health care services  655
under division (B)(11) of this section, a medicaid health  656
insuring corporation is the consumer of such services. The  657
purchase of such services by a medicaid health insuring  658
corporation is not subject to the exception for resale under  659
division (E) of this section or to the exemptions provided under  660
divisions (B)(12), (18), (19), and (22) of section 5739.02 of  661
the Revised Code.  662
       (E) "Retail sale" and "sales at retail" include all sales,  663
except those in which the purpose of the consumer is to resell  664
the thing transferred or benefit of the service provided, by a  665
person engaging in business, in the form in which the same is,  666
or is to be, received by the person.  667
       (F) "Business" includes any activity engaged in by any  668
person with the object of gain, benefit, or advantage, either  669
S. B. No. 104  Page 24
As Introduced
direct or indirect. "Business" does not include the activity of  670
a person in managing and investing the person's own funds.  671
       (G) "Engaging in business" means commencing, conducting,  672
or continuing in business, and liquidating a business when the  673
liquidator thereof holds itself out to the public as conducting  674
such business. Making a casual sale is not engaging in business.  675
       (H)(1)(a) "Price," except as provided in divisions (H)(2),  676
(3), and (4) of this section, means the total amount of  677
consideration, including cash, credit, property, and services,  678
for which tangible personal property or services are sold,  679
leased, or rented, valued in money, whether received in money or  680
otherwise, without any deduction for any of the following:  681
       (i) The vendor's cost of the property sold;  682
       (ii) The cost of materials used, labor or service costs,  683
interest, losses, all costs of transportation to the vendor, all  684
taxes imposed on the vendor, including the tax imposed under  685
Chapter 5751. of the Revised Code, and any other expense of the  686
vendor;  687
       (iii) Charges by the vendor for any services necessary to  688
complete the sale;  689
       (iv) Delivery charges. As used in this division, "delivery  690
charges" means charges by the vendor for preparation and  691
delivery to a location designated by the consumer of tangible  692
personal property or a service, including transportation,  693
shipping, postage, handling, crating, and packing.  694
       (v) Installation charges;  695
       (vi) Credit for any trade-in.  696
       (b) "Price" includes consideration received by the vendor  697
S. B. No. 104  Page 25
As Introduced
from a third party, if the vendor actually receives the  698
consideration from a party other than the consumer, and the  699
consideration is directly related to a price reduction or  700
discount on the sale; the vendor has an obligation to pass the  701
price reduction or discount through to the consumer; the amount  702
of the consideration attributable to the sale is fixed and  703
determinable by the vendor at the time of the sale of the item  704
to the consumer; and one of the following criteria is met:  705
       (i) The consumer presents a coupon, certificate, or other  706
document to the vendor to claim a price reduction or discount  707
where the coupon, certificate, or document is authorized,  708
distributed, or granted by a third party with the understanding  709
that the third party will reimburse any vendor to whom the  710
coupon, certificate, or document is presented;  711
       (ii) The consumer identifies the consumer's self to the  712
seller as a member of a group or organization entitled to a  713
price reduction or discount. A preferred customer card that is  714
available to any patron does not constitute membership in such a  715
group or organization.  716
       (iii) The price reduction or discount is identified as a  717
third party price reduction or discount on the invoice received  718
by the consumer, or on a coupon, certificate, or other document  719
presented by the consumer.  720
       (c) "Price" does not include any of the following:  721
       (i) Discounts, including cash, term, or coupons that are  722
not reimbursed by a third party that are allowed by a vendor and  723
taken by a consumer on a sale;  724
       (ii) Interest, financing, and carrying charges from credit  725
extended on the sale of tangible personal property or services,  726
S. B. No. 104  Page 26
As Introduced
if the amount is separately stated on the invoice, bill of sale,  727
or similar document given to the purchaser;  728
       (iii) Any taxes legally imposed directly on the consumer  729
that are separately stated on the invoice, bill of sale, or  730
similar document given to the consumer. For the purpose of this  731
division, the tax imposed under Chapter 5751. of the Revised  732
Code is not a tax directly on the consumer, even if the tax or a  733
portion thereof is separately stated.  734
       (iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of  735
this section, any discount allowed by an automobile manufacturer  736
to its employee, or to the employee of a supplier, on the  737
purchase of a new motor vehicle from a new motor vehicle dealer  738
in this state.  739
       (v) The dollar value of a gift card that is not sold by a  740
vendor or purchased by a consumer and that is redeemed by the  741
consumer in purchasing tangible personal property or services if  742
the vendor is not reimbursed and does not receive compensation  743
from a third party to cover all or part of the gift card value.  744
For the purposes of this division, a gift card is not sold by a  745
vendor or purchased by a consumer if it is distributed pursuant  746
to an awards, loyalty, or promotional program. Past and present  747
purchases of tangible personal property or services by the  748
consumer shall not be treated as consideration exchanged for a  749
gift card.  750
       (2) In the case of a sale of any new motor vehicle by a  751
new motor vehicle dealer, as defined in section 4517.01 of the  752
Revised Code, in which another motor vehicle is accepted by the  753
dealer as part of the consideration received, "price" has the  754
same meaning as in division (H)(1) of this section, reduced by  755
the credit afforded the consumer by the dealer for the motor  756
S. B. No. 104  Page 27
As Introduced
vehicle received in trade.  757
       (3) In the case of a sale of any watercraft or outboard  758
motor by a watercraft dealer licensed in accordance with section  759
1547.543 of the Revised Code, in which another watercraft,  760
watercraft and trailer, or outboard motor is accepted by the  761
dealer as part of the consideration received, "price" has the  762
same meaning as in division (H)(1) of this section, reduced by  763
the credit afforded the consumer by the dealer for the  764
watercraft, watercraft and trailer, or outboard motor received  765
in trade. As used in this division, "watercraft" includes an  766
outdrive unit attached to the watercraft.  767
       (4) In the case of transactions for health care services  768
under division (B)(11) of this section, "price" means the amount  769
of managed care premiums received each month by a medicaid  770
health insuring corporation.  771
       (I) "Receipts" means the total amount of the prices of the  772
sales of vendors, provided that the dollar value of gift cards  773
distributed pursuant to an awards, loyalty, or promotional  774
program, and cash discounts allowed and taken on sales at the  775
time they are consummated are not included, minus any amount  776
deducted as a bad debt pursuant to section 5739.121 of the  777
Revised Code. "Receipts" does not include the sale price of  778
property returned or services rejected by consumers when the  779
full sale price and tax are refunded either in cash or by  780
credit.  781
       (J) "Place of business" means any location at which a  782
person engages in business.  783
       (K) "Premises" includes any real property or portion  784
thereof upon which any person engages in selling tangible  785
S. B. No. 104  Page 28
As Introduced
personal property at retail or making retail sales and also  786
includes any real property or portion thereof designated for, or  787
devoted to, use in conjunction with the business engaged in by  788
such person.  789
        (L) "Casual sale" means a sale of an item of tangible  790
personal property that was obtained by the person making the  791
sale, through purchase or otherwise, for the person's own use  792
and was previously subject to any state's taxing jurisdiction on  793
its sale or use, and includes such items acquired for the  794
seller's use that are sold by an auctioneer employed directly by  795
the person for such purpose, provided the location of such sales  796
is not the auctioneer's permanent place of business. As used in  797
this division, "permanent place of business" includes any  798
location where such auctioneer has conducted more than two  799
auctions during the year.  800
        (M) "Hotel" means every establishment kept, used,  801
maintained, advertised, or held out to the public to be a place  802
where sleeping accommodations are offered to guests, in which  803
five or more rooms are used for the accommodation of such  804
guests, whether the rooms are in one or several structures,  805
except as otherwise provided in section 5739.091 of the Revised  806
Code.  807
        (N) "Transient guests" means persons occupying a room or  808
rooms for sleeping accommodations for less than thirty  809
consecutive days.  810
        (O) "Making retail sales" means the effecting of  811
transactions wherein one party is obligated to pay the price and  812
the other party is obligated to provide a service or to transfer  813
title to or possession of the item sold. "Making retail sales"  814
does not include the preliminary acts of promoting or soliciting  815
S. B. No. 104  Page 29
As Introduced
the retail sales, other than the distribution of printed matter  816
which displays or describes and prices the item offered for  817
sale, nor does it include delivery of a predetermined quantity  818
of tangible personal property or transportation of property or  819
personnel to or from a place where a service is performed.  820
       (P) "Used directly in the rendition of a public utility  821
service" means that property that is to be incorporated into and  822
will become a part of the consumer's production, transmission,  823
transportation, or distribution system and that retains its  824
classification as tangible personal property after such  825
incorporation; fuel or power used in the production,  826
transmission, transportation, or distribution system; and  827
tangible personal property used in the repair and maintenance of  828
the production, transmission, transportation, or distribution  829
system, including only such motor vehicles as are specially  830
designed and equipped for such use. Tangible personal property  831
and services used primarily in providing highway transportation  832
for hire are not used directly in the rendition of a public  833
utility service. In this definition, "public utility" includes a  834
citizen of the United States holding, and required to hold, a  835
certificate of public convenience and necessity issued under 49  836
U.S.C. 41102.  837
       (Q) "Refining" means removing or separating a desirable  838
product from raw or contaminated materials by distillation or  839
physical, mechanical, or chemical processes.  840
       (R) "Assembly" and "assembling" mean attaching or fitting  841
together parts to form a product, but do not include packaging a  842
product.  843
       (S) "Manufacturing operation" means a process in which  844
materials are changed, converted, or transformed into a  845
S. B. No. 104  Page 30
As Introduced
different state or form from which they previously existed and  846
includes refining materials, assembling parts, and preparing raw  847
materials and parts by mixing, measuring, blending, or otherwise  848
committing such materials or parts to the manufacturing process.  849
"Manufacturing operation" does not include packaging.  850
       (T) "Fiscal officer" means, with respect to a regional  851
transit authority, the secretary-treasurer thereof, and with  852
respect to a county that is a transit authority, the fiscal  853
officer of the county transit board if one is appointed pursuant  854
to section 306.03 of the Revised Code or the county auditor if  855
the board of county commissioners operates the county transit  856
system.  857
       (U) "Transit authority" means a regional transit authority  858
created pursuant to section 306.31 of the Revised Code or a  859
county in which a county transit system is created pursuant to  860
section 306.01 of the Revised Code. For the purposes of this  861
chapter, a transit authority must extend to at least the entire  862
area of a single county. A transit authority that includes  863
territory in more than one county must include all the area of  864
the most populous county that is a part of such transit  865
authority. County population shall be measured by the most  866
recent census taken by the United States census bureau.  867
       (V) "Legislative authority" means, with respect to a  868
regional transit authority, the board of trustees thereof, and  869
with respect to a county that is a transit authority, the board  870
of county commissioners.  871
       (W) "Territory of the transit authority" means all of the  872
area included within the territorial boundaries of a transit  873
authority as they from time to time exist. Such territorial  874
boundaries must at all times include all the area of a single  875
S. B. No. 104  Page 31
As Introduced
county or all the area of the most populous county that is a  876
part of such transit authority. County population shall be  877
measured by the most recent census taken by the United States  878
census bureau.  879
       (X) "Providing a service" means providing or furnishing  880
anything described in division (B)(3) of this section for  881
consideration.  882
       (Y)(1)(a) "Automatic data processing" means processing of  883
others' data, including keypunching or similar data entry  884
services together with verification thereof, or providing access  885
to computer equipment for the purpose of processing data.  886
       (b) "Computer services" means providing services  887
consisting of specifying computer hardware configurations and  888
evaluating technical processing characteristics, computer  889
programming, and training of computer programmers and operators,  890
provided in conjunction with and to support the sale, lease, or  891
operation of taxable computer equipment or systems.  892
       (c) "Electronic information services" means providing  893
access to computer equipment by means of telecommunications  894
equipment for the purpose of either of the following:  895
       (i) Examining or acquiring data stored in or accessible to  896
the computer equipment;  897
       (ii) Placing data into the computer equipment to be  898
retrieved by designated recipients with access to the computer  899
equipment.  900
       "Electronic information services" does not include  901
electronic publishing.  902
       (d) "Automatic data processing, computer services, or  903
S. B. No. 104  Page 32
As Introduced
electronic information services" shall not include personal or  904
professional services.  905
       (2) As used in divisions (B)(3)(e) and (Y)(1) of this  906
section, "personal and professional services" means all services  907
other than automatic data processing, computer services, or  908
electronic information services, including but not limited to:  909
       (a) Accounting and legal services such as advice on tax  910
matters, asset management, budgetary matters, quality control,  911
information security, and auditing and any other situation where  912
the service provider receives data or information and studies,  913
alters, analyzes, interprets, or adjusts such material;  914
       (b) Analyzing business policies and procedures;  915
       (c) Identifying management information needs;  916
       (d) Feasibility studies, including economic and technical  917
analysis of existing or potential computer hardware or software  918
needs and alternatives;  919
       (e) Designing policies, procedures, and custom software  920
for collecting business information, and determining how data  921
should be summarized, sequenced, formatted, processed,  922
controlled, and reported so that it will be meaningful to  923
management;  924
       (f) Developing policies and procedures that document how  925
business events and transactions are to be authorized, executed,  926
and controlled;  927
       (g) Testing of business procedures;  928
       (h) Training personnel in business procedure applications;  929
       (i) Providing credit information to users of such  930
S. B. No. 104  Page 33
As Introduced
information by a consumer reporting agency, as defined in the  931
"Fair Credit Reporting Act," 84 Stat. 1114, 1129 (1970), 15  932
U.S.C. 1681a(f), or as hereafter amended, including but not  933
limited to gathering, organizing, analyzing, recording, and  934
furnishing such information by any oral, written, graphic, or  935
electronic medium;  936
       (j) Providing debt collection services by any oral,  937
written, graphic, or electronic means;  938
       (k) Providing digital advertising services;  939
       (l) Providing services to electronically file any federal,  940
state, or local individual income tax return, report, or other  941
related document or schedule with a federal, state, or local  942
government entity or to electronically remit a payment of any  943
such individual income tax to such an entity. For the purpose of  944
this division, "individual income tax" does not include federal,  945
state, or local taxes withheld by an employer from an employee's  946
compensation.  947
       The services listed in divisions (Y)(2)(a) to (l) of this  948
section are not automatic data processing or computer services.  949
       (Z) "Highway transportation for hire" means the  950
transportation of personal property belonging to others for  951
consideration by any of the following:  952
       (1) The holder of a permit or certificate issued by this  953
state or the United States authorizing the holder to engage in  954
transportation of personal property belonging to others for  955
consideration over or on highways, roadways, streets, or any  956
similar public thoroughfare;  957
       (2) A person who engages in the transportation of personal  958
property belonging to others for consideration over or on  959
S. B. No. 104  Page 34
As Introduced
highways, roadways, streets, or any similar public thoroughfare  960
but who could not have engaged in such transportation on  961
December 11, 1985, unless the person was the holder of a permit  962
or certificate of the types described in division (Z)(1) of this  963
section;  964
       (3) A person who leases a motor vehicle to and operates it  965
for a person described by division (Z)(1) or (2) of this  966
section.  967
       "Highway transportation for hire" does not include  968
delivery network services.  969
       (AA)(1) "Telecommunications service" means the electronic  970
transmission, conveyance, or routing of voice, data, audio,  971
video, or any other information or signals to a point, or  972
between or among points. "Telecommunications service" includes  973
such transmission, conveyance, or routing in which computer  974
processing applications are used to act on the form, code, or  975
protocol of the content for purposes of transmission,  976
conveyance, or routing without regard to whether the service is  977
referred to as voice-over internet protocol service or is  978
classified by the federal communications commission as enhanced  979
or value-added. "Telecommunications service" does not include  980
any of the following:  981
       (a) Data processing and information services that allow  982
data to be generated, acquired, stored, processed, or retrieved  983
and delivered by an electronic transmission to a consumer where  984
the consumer's primary purpose for the underlying transaction is  985
the processed data or information;  986
       (b) Installation or maintenance of wiring or equipment on  987
a customer's premises;  988
S. B. No. 104  Page 35
As Introduced
       (c) Tangible personal property;  989
       (d) Advertising, including directory advertising;  990
       (e) Billing and collection services provided to third  991
parties;  992
       (f) Internet access service;  993
       (g) Radio and television audio and video programming  994
services, regardless of the medium, including the furnishing of  995
transmission, conveyance, and routing of such services by the  996
programming service provider. Radio and television audio and  997
video programming services include, but are not limited to,  998
cable service, as defined in 47 U.S.C. 522(6), and audio and  999
video programming services delivered by commercial mobile radio  1000
service providers, as defined in 47 C.F.R. 20.3;  1001
       (h) Ancillary service;  1002
       (i) Digital products delivered electronically, including  1003
software, music, video, reading materials, or ring tones.  1004
       (2) "Ancillary service" means a service that is associated  1005
with or incidental to the provision of telecommunications  1006
service, including conference bridging service, detailed  1007
telecommunications billing service, directory assistance,  1008
vertical service, and voice mail service. As used in this  1009
division:  1010
       (a) "Conference bridging service" means an ancillary  1011
service that links two or more participants of an audio or video  1012
conference call, including providing a telephone number.  1013
"Conference bridging service" does not include  1014
telecommunications services used to reach the conference bridge.  1015
       (b) "Detailed telecommunications billing service" means an  1016
S. B. No. 104  Page 36
As Introduced
ancillary service of separately stating information pertaining  1017
to individual calls on a customer's billing statement.  1018
       (c) "Directory assistance" means an ancillary service of  1019
providing telephone number or address information.  1020
       (d) "Vertical service" means an ancillary service that is  1021
offered in connection with one or more telecommunications  1022
services, which offers advanced calling features that allow  1023
customers to identify callers and manage multiple calls and call  1024
connections, including conference bridging service.  1025
       (e) "Voice mail service" means an ancillary service that  1026
enables the customer to store, send, or receive recorded  1027
messages. "Voice mail service" does not include any vertical  1028
services that the customer may be required to have in order to  1029
utilize the voice mail service.  1030
       (3) "900 service" means an inbound toll telecommunications  1031
service purchased by a subscriber that allows the subscriber's  1032
customers to call in to the subscriber's prerecorded  1033
announcement or live service, and which is typically marketed  1034
under the name "900 service" and any subsequent numbers  1035
designated by the federal communications commission. "900  1036
service" does not include the charge for collection services  1037
provided by the seller of the telecommunications service to the  1038
subscriber, or services or products sold by the subscriber to  1039
the subscriber's customer.  1040
       (4) "Prepaid calling service" means the right to access  1041
exclusively telecommunications services, which must be paid for  1042
in advance and which enables the origination of calls using an  1043
access number or authorization code, whether manually or  1044
electronically dialed, and that is sold in predetermined units  1045
S. B. No. 104  Page 37
As Introduced
or dollars of which the number declines with use in a known  1046
amount.  1047
       (5) "Prepaid wireless calling service" means a  1048
telecommunications service that provides the right to utilize  1049
mobile telecommunications service as well as other non-  1050
telecommunications services, including the download of digital  1051
products delivered electronically, and content and ancillary  1052
services, that must be paid for in advance and that is sold in  1053
predetermined units or dollars of which the number declines with  1054
use in a known amount.  1055
       (6) "Value-added non-voice data service" means a  1056
telecommunications service in which computer processing  1057
applications are used to act on the form, content, code, or  1058
protocol of the information or data primarily for a purpose  1059
other than transmission, conveyance, or routing.  1060
       (7) "Coin-operated telephone service" means a  1061
telecommunications service paid for by inserting money into a  1062
telephone accepting direct deposits of money to operate.  1063
       (8) "Customer" has the same meaning as in section 5739.034  1064
of the Revised Code.  1065
       (BB) "Laundry and dry cleaning services" means removing  1066
soil or dirt from towels, linens, articles of clothing, or other  1067
fabric items that belong to others and supplying towels, linens,  1068
articles of clothing, or other fabric items. "Laundry and dry  1069
cleaning services" does not include the provision of self-  1070
service facilities for use by consumers to remove soil or dirt  1071
from towels, linens, articles of clothing, or other fabric  1072
items.  1073
       (CC) "Magazines distributed as controlled circulation  1074
S. B. No. 104  Page 38
As Introduced
publications" means magazines containing at least twenty-four  1075
pages, at least twenty-five per cent editorial content, issued  1076
at regular intervals four or more times a year, and circulated  1077
without charge to the recipient, provided that such magazines  1078
are not owned or controlled by individuals or business concerns  1079
which conduct such publications as an auxiliary to, and  1080
essentially for the advancement of the main business or calling  1081
of, those who own or control them.  1082
        (DD) "Landscaping and lawn care service" means the  1083
services of planting, seeding, sodding, removing, cutting,  1084
trimming, pruning, mulching, aerating, applying chemicals,  1085
watering, fertilizing, and providing similar services to  1086
establish, promote, or control the growth of trees, shrubs,  1087
flowers, grass, ground cover, and other flora, or otherwise  1088
maintaining a lawn or landscape grown or maintained by the owner  1089
for ornamentation or other nonagricultural purpose. However,  1090
"landscaping and lawn care service" does not include the  1091
providing of such services by a person who has less than five  1092
thousand dollars in sales of such services during the calendar  1093
year.  1094
        (EE) "Private investigation and security service" means  1095
the performance of any activity for which the provider of such  1096
service is required to be licensed pursuant to Chapter 4749. of  1097
the Revised Code, or would be required to be so licensed in  1098
performing such services in this state, and also includes the  1099
services of conducting polygraph examinations and of monitoring  1100
or overseeing the activities on or in, or the condition of, the  1101
consumer's home, business, or other facility by means of  1102
electronic or similar monitoring devices. "Private investigation  1103
and security service" does not include special duty services  1104
provided by off-duty police officers, deputy sheriffs, and other  1105
S. B. No. 104  Page 39
As Introduced
peace officers regularly employed by the state or a political  1106
subdivision.  1107
       (FF) "Information services" means providing conversation,  1108
giving consultation or advice, playing or making a voice or  1109
other recording, making or keeping a record of the number of  1110
callers, and any other service provided to a consumer by means  1111
of a nine hundred telephone call, except when the nine hundred  1112
telephone call is the means by which the consumer makes a  1113
contribution to a recognized charity.  1114
       (GG) "Research and development" means designing, creating,  1115
or formulating new or enhanced products, equipment, or  1116
manufacturing processes, and also means conducting scientific or  1117
technological inquiry and experimentation in the physical  1118
sciences with the goal of increasing scientific knowledge which  1119
may reveal the bases for new or enhanced products, equipment, or  1120
manufacturing processes.  1121
       (HH) "Qualified research and development equipment" means  1122
either of the following:  1123
       (1) Capitalized tangible personal property, and leased  1124
personal property that would be capitalized if purchased, used  1125
by a person primarily to perform research and development;  1126
       (2) Any tangible personal property used by a megaproject  1127
operator primarily to perform research and development at the  1128
site of a megaproject that satisfies the criteria described in  1129
division (A)(11)(a)(ii) of section 122.17 of the Revised Code  1130
during the period that the megaproject operator has an agreement  1131
for such megaproject with the tax credit authority under  1132
division (D) of that section that remains in effect and has not  1133
expired or been terminated.  1134
S. B. No. 104  Page 40
As Introduced
       "Qualified research and development equipment" does not  1135
include tangible personal property primarily used in testing, as  1136
defined in division (A)(4) of section 5739.011 of the Revised  1137
Code, or used for recording or storing test results, unless such  1138
property is primarily used by the consumer in testing the  1139
product, equipment, or manufacturing process being created,  1140
designed, or formulated by the consumer in the research and  1141
development activity or in recording or storing such test  1142
results.  1143
       (II) "Building maintenance and janitorial service" means  1144
cleaning the interior or exterior of a building and any tangible  1145
personal property located therein or thereon, including any  1146
services incidental to such cleaning for which no separate  1147
charge is made. However, "building maintenance and janitorial  1148
service" does not include the providing of such service by a  1149
person who has less than five thousand dollars in sales of such  1150
service during the calendar year. As used in this division,  1151
"cleaning" does not include sanitation services necessary for an  1152
establishment described in 21 U.S.C. 608 to comply with rules  1153
and regulations adopted pursuant to that section.  1154
       (JJ) "Exterminating service" means eradicating or  1155
attempting to eradicate vermin infestations from a building or  1156
structure, or the area surrounding a building or structure, and  1157
includes activities to inspect, detect, or prevent vermin  1158
infestation of a building or structure.  1159
       (KK) "Physical fitness facility service" means all  1160
transactions by which a membership is granted, maintained, or  1161
renewed, including initiation fees, membership dues, renewal  1162
fees, monthly minimum fees, and other similar fees and dues, by  1163
a physical fitness facility such as an athletic club, health  1164
S. B. No. 104  Page 41
As Introduced
spa, or gymnasium, which entitles the member to use the facility  1165
for physical exercise.  1166
        (LL) "Recreation and sports club service" means all  1167
transactions by which a membership is granted, maintained, or  1168
renewed, including initiation fees, membership dues, renewal  1169
fees, monthly minimum fees, and other similar fees and dues, by  1170
a recreation and sports club, which entitles the member to use  1171
the facilities of the organization. "Recreation and sports club"  1172
means an organization that has ownership of, or controls or  1173
leases on a continuing, long-term basis, the facilities used by  1174
its members and includes an aviation club, gun or shooting club,  1175
yacht club, card club, swimming club, tennis club, golf club,  1176
country club, riding club, amateur sports club, or similar  1177
organization.  1178
        (MM) "Livestock" means farm animals commonly raised for  1179
food, food production, or other agricultural purposes,  1180
including, but not limited to, cattle, sheep, goats, swine,  1181
poultry, and captive deer. "Livestock" does not include  1182
invertebrates, amphibians, reptiles, domestic pets, animals for  1183
use in laboratories or for exhibition, or other animals not  1184
commonly raised for food or food production.  1185
        (NN) "Livestock structure" means a building or structure  1186
used exclusively for the housing, raising, feeding, or  1187
sheltering of livestock, and includes feed storage or handling  1188
structures and structures for livestock waste handling.  1189
        (OO) "Horticulture" means the growing, cultivation, and  1190
production of flowers, fruits, herbs, vegetables, sod,  1191
mushrooms, and nursery stock. As used in this division, "nursery  1192
stock" has the same meaning as in section 927.51 of the Revised  1193
Code.  1194
S. B. No. 104  Page 42
As Introduced
       (PP) "Horticulture structure" means a building or  1195
structure used exclusively for the commercial growing, raising,  1196
or overwintering of horticultural products, and includes the  1197
area used for stocking, storing, and packing horticultural  1198
products when done in conjunction with the production of those  1199
products.  1200
       (QQ) "Newspaper" means an unbound publication bearing a  1201
title or name that is regularly published, at least as  1202
frequently as biweekly, and distributed from a fixed place of  1203
business to the public in a specific geographic area, and that  1204
contains a substantial amount of news matter of international,  1205
national, or local events of interest to the general public.  1206
       (RR)(1) "Feminine hygiene products" means tampons, panty  1207
liners, menstrual cups, sanitary napkins, and other similar  1208
tangible personal property designed for feminine hygiene in  1209
connection with the human menstrual cycle, but does not include  1210
grooming and hygiene products.  1211
       (2) "Grooming and hygiene products" means soaps and  1212
cleaning solutions, shampoo, toothpaste, mouthwash,  1213
antiperspirants, and sun tan lotions and screens, regardless of  1214
whether any of these products are over-the-counter drugs.  1215
       (3) "Over-the-counter drugs" means a drug that contains a  1216
label that identifies the product as a drug as required by 21  1217
C.F.R. 201.66, which label includes a drug facts panel or a  1218
statement of the active ingredients with a list of those  1219
ingredients contained in the compound, substance, or  1220
preparation.  1221
       (SS)(1) "Lease" or "rental" means any transfer of the  1222
possession or control of tangible personal property for a fixed  1223
S. B. No. 104  Page 43
As Introduced
or indefinite term, for consideration. "Lease" or "rental"  1224
includes future options to purchase or extend, and agreements  1225
described in 26 U.S.C. 7701(h)(1) covering motor vehicles and  1226
trailers where the amount of consideration may be increased or  1227
decreased by reference to the amount realized upon the sale or  1228
disposition of the property. "Lease" or "rental" does not  1229
include:  1230
       (a) A transfer of possession or control of tangible  1231
personal property under a security agreement or a deferred  1232
payment plan that requires the transfer of title upon completion  1233
of the required payments;  1234
       (b) A transfer of possession or control of tangible  1235
personal property under an agreement that requires the transfer  1236
of title upon completion of required payments and payment of an  1237
option price that does not exceed the greater of one hundred  1238
dollars or one per cent of the total required payments;  1239
       (c) Providing tangible personal property along with an  1240
operator for a fixed or indefinite period of time, if the  1241
operator is necessary for the property to perform as designed.  1242
For purposes of this division, the operator must do more than  1243
maintain, inspect, or set up the tangible personal property.  1244
       (2) "Lease" and "rental," as defined in division (SS) of  1245
this section, shall not apply to leases or rentals that exist  1246
before June 26, 2003.  1247
       (3) "Lease" and "rental" have the same meaning as in  1248
division (SS)(1) of this section regardless of whether a  1249
transaction is characterized as a lease or rental under  1250
generally accepted accounting principles, the Internal Revenue  1251
Code, Title XIII of the Revised Code, or other federal, state,  1252
S. B. No. 104  Page 44
As Introduced
or local laws.  1253
       (TT) "Mobile telecommunications service" has the same  1254
meaning as in the "Mobile Telecommunications Sourcing Act," Pub.  1255
L. No. 106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as  1256
amended, and, on and after August 1, 2003, includes related fees  1257
and ancillary services, including universal service fees,  1258
detailed billing service, directory assistance, service  1259
initiation, voice mail service, and vertical services, such as  1260
caller ID and three-way calling.  1261
       (UU) "Certified service provider" has the same meaning as  1262
in section 5740.01 of the Revised Code.  1263
       (VV) "Satellite broadcasting service" means the  1264
distribution or broadcasting of programming or services by  1265
satellite directly to the subscriber's receiving equipment  1266
without the use of ground receiving or distribution equipment,  1267
except the subscriber's receiving equipment or equipment used in  1268
the uplink process to the satellite, and includes all service  1269
and rental charges, premium channels or other special services,  1270
installation and repair service charges, and any other charges  1271
having any connection with the provision of the satellite  1272
broadcasting service.  1273
       (WW) "Tangible personal property" means personal property  1274
that can be seen, weighed, measured, felt, or touched, or that  1275
is in any other manner perceptible to the senses. For purposes  1276
of this chapter and Chapter 5741. of the Revised Code, "tangible  1277
personal property" includes motor vehicles, electricity, water,  1278
gas, steam, and prewritten computer software.  1279
       (XX) "Municipal gas utility" means a municipal corporation  1280
that owns or operates a system for the distribution of natural  1281
S. B. No. 104  Page 45
As Introduced
gas.  1282
       (YY) "Computer" means an electronic device that accepts  1283
information in digital or similar form and manipulates it for a  1284
result based on a sequence of instructions.  1285
       (ZZ) "Computer software" means a set of coded instructions  1286
designed to cause a computer or automatic data processing  1287
equipment to perform a task.  1288
       (AAA) "Delivered electronically" means delivery of  1289
computer software from the seller to the purchaser by means  1290
other than tangible storage media.  1291
       (BBB) "Prewritten computer software" means computer  1292
software, including prewritten upgrades, that is not designed  1293
and developed by the author or other creator to the  1294
specifications of a specific purchaser. The combining of two or  1295
more prewritten computer software programs or prewritten  1296
portions thereof does not cause the combination to be other than  1297
prewritten computer software. "Prewritten computer software"  1298
includes software designed and developed by the author or other  1299
creator to the specifications of a specific purchaser when it is  1300
sold to a person other than the purchaser. If a person modifies  1301
or enhances computer software of which the person is not the  1302
author or creator, the person shall be deemed to be the author  1303
or creator only of such person's modifications or enhancements.  1304
Prewritten computer software or a prewritten portion thereof  1305
that is modified or enhanced to any degree, where such  1306
modification or enhancement is designed and developed to the  1307
specifications of a specific purchaser, remains prewritten  1308
computer software; provided, however, that where there is a  1309
reasonable, separately stated charge or an invoice or other  1310
statement of the price given to the purchaser for the  1311
S. B. No. 104  Page 46
As Introduced
modification or enhancement, the modification or enhancement  1312
shall not constitute prewritten computer software.  1313
       (CCC)(1) "Food" means substances, whether in liquid,  1314
concentrated, solid, frozen, dried, or dehydrated form, that are  1315
sold for ingestion or chewing by humans and are consumed for  1316
their taste or nutritional value. "Food" does not include  1317
alcoholic beverages, dietary supplements, soft drinks, or  1318
tobacco.  1319
       (2) As used in division (CCC)(1) of this section:  1320
       (a) "Dietary supplements" means any product, other than  1321
tobacco, that is intended to supplement the diet and that is  1322
intended for ingestion in tablet, capsule, powder, softgel,  1323
gelcap, or liquid form, or, if not intended for ingestion in  1324
such a form, is not represented as conventional food for use as  1325
a sole item of a meal or of the diet; that is required to be  1326
labeled as a dietary supplement, identifiable by the "supplement  1327
facts" box found on the label, as required by 21 C.F.R. 101.36;  1328
and that contains one or more of the following dietary  1329
ingredients:  1330
       (i) A vitamin;  1331
       (ii) A mineral;  1332
       (iii) An herb or other botanical;  1333
       (iv) An amino acid;  1334
       (v) A dietary substance for use by humans to supplement  1335
the diet by increasing the total dietary intake;  1336
       (vi) A concentrate, metabolite, constituent, extract, or  1337
combination of any ingredient described in divisions (CCC)(2)(a)  1338
(i) to (v) of this section.  1339
S. B. No. 104  Page 47
As Introduced
       (b) "Soft drinks" means nonalcoholic beverages that  1340
contain natural or artificial sweeteners. "Soft drinks" does not  1341
include beverages that contain milk or milk products, soy, rice,  1342
or similar milk substitutes, or that contains greater than fifty  1343
per cent vegetable or fruit juice by volume.  1344
       (DDD) "Drug" means a compound, substance, or preparation,  1345
and any component of a compound, substance, or preparation,  1346
other than food, dietary supplements, or alcoholic beverages  1347
that is recognized in the official United States pharmacopoeia,  1348
official homeopathic pharmacopoeia of the United States, or  1349
official national formulary, and supplements to them; is  1350
intended for use in the diagnosis, cure, mitigation, treatment,  1351
or prevention of disease; or is intended to affect the structure  1352
or any function of the body.  1353
       (EEE) "Prescription" means an order, formula, or recipe  1354
issued in any form of oral, written, electronic, or other means  1355
of transmission by a duly licensed practitioner authorized by  1356
the laws of this state to issue a prescription.  1357
       (FFF) "Durable medical equipment" means equipment,  1358
including repair and replacement parts for such equipment, that  1359
can withstand repeated use, is primarily and customarily used to  1360
serve a medical purpose, generally is not useful to a person in  1361
the absence of illness or injury, and is not worn in or on the  1362
body. "Durable medical equipment" does not include mobility  1363
enhancing equipment.  1364
       (GGG) "Mobility enhancing equipment" means equipment,  1365
including repair and replacement parts for such equipment, that  1366
is primarily and customarily used to provide or increase the  1367
ability to move from one place to another and is appropriate for  1368
use either in a home or a motor vehicle, that is not generally  1369
S. B. No. 104  Page 48
As Introduced
used by persons with normal mobility, and that does not include  1370
any motor vehicle or equipment on a motor vehicle normally  1371
provided by a motor vehicle manufacturer. "Mobility enhancing  1372
equipment" does not include durable medical equipment.  1373
       (HHH) "Prosthetic device" means a replacement, corrective,  1374
or supportive device, including repair and replacement parts for  1375
the device, worn on or in the human body to artificially replace  1376
a missing portion of the body, prevent or correct physical  1377
deformity or malfunction, or support a weak or deformed portion  1378
of the body. As used in this division, before July 1, 2019,  1379
"prosthetic device" does not include corrective eyeglasses,  1380
contact lenses, or dental prosthesis. On or after July 1, 2019,  1381
"prosthetic device" does not include dental prosthesis but does  1382
include corrective eyeglasses or contact lenses.  1383
       (III)(1) "Fractional aircraft ownership program" means a  1384
program in which persons within an affiliated group sell and  1385
manage fractional ownership program aircraft, provided that at  1386
least one hundred airworthy aircraft are operated in the program  1387
and the program meets all of the following criteria:  1388
       (a) Management services are provided by at least one  1389
program manager within an affiliated group on behalf of the  1390
fractional owners.  1391
       (b) Each program aircraft is owned or possessed by at  1392
least one fractional owner.  1393
       (c) Each fractional owner owns or possesses at least a  1394
one-sixteenth interest in at least one fixed-wing program  1395
aircraft.  1396
       (d) A dry-lease aircraft interchange arrangement is in  1397
effect among all of the fractional owners.  1398
S. B. No. 104  Page 49
As Introduced
       (e) Multi-year program agreements are in effect regarding  1399
the fractional ownership, management services, and dry-lease  1400
aircraft interchange arrangement aspects of the program.  1401
       (2) As used in division (III)(1) of this section:  1402
       (a) "Affiliated group" has the same meaning as in division  1403
(B)(3)(e) of this section.  1404
       (b) "Fractional owner" means a person that owns or  1405
possesses at least a one-sixteenth interest in a program  1406
aircraft and has entered into the agreements described in  1407
division (III)(1)(e) of this section.  1408
       (c) "Fractional ownership program aircraft" or "program  1409
aircraft" means a turbojet aircraft that is owned or possessed  1410
by a fractional owner and that has been included in a dry-lease  1411
aircraft interchange arrangement and agreement under divisions  1412
(III)(1)(d) and (e) of this section, or an aircraft a program  1413
manager owns or possesses primarily for use in a fractional  1414
aircraft ownership program.  1415
       (d) "Management services" means administrative and  1416
aviation support services furnished under a fractional aircraft  1417
ownership program in accordance with a management services  1418
agreement under division (III)(1)(e) of this section, and  1419
offered by the program manager to the fractional owners,  1420
including, at a minimum, the establishment and implementation of  1421
safety guidelines; the coordination of the scheduling of the  1422
program aircraft and crews; program aircraft maintenance;  1423
program aircraft insurance; crew training for crews employed,  1424
furnished, or contracted by the program manager or the  1425
fractional owner; the satisfaction of record-keeping  1426
requirements; and the development and use of an operations  1427
S. B. No. 104  Page 50
As Introduced
manual and a maintenance manual for the fractional aircraft  1428
ownership program.  1429
       (e) "Program manager" means the person that offers  1430
management services to fractional owners pursuant to a  1431
management services agreement under division (III)(1)(e) of this  1432
section.  1433
       (JJJ) "Electronic publishing" means providing access to  1434
one or more of the following primarily for business customers,  1435
including the federal government or a state government or a  1436
political subdivision thereof, to conduct research: news;  1437
business, financial, legal, consumer, or credit materials;  1438
editorials, columns, reader commentary, or features; photos or  1439
images; archival or research material; legal notices, identity  1440
verification, or public records; scientific, educational,  1441
instructional, technical, professional, trade, or other literary  1442
materials; or other similar information which has been gathered  1443
and made available by the provider to the consumer in an  1444
electronic format. Providing electronic publishing includes the  1445
functions necessary for the acquisition, formatting, editing,  1446
storage, and dissemination of data or information that is the  1447
subject of a sale.  1448
       (KKK) "Medicaid health insuring corporation" means a  1449
health insuring corporation that holds a certificate of  1450
authority under Chapter 1751. of the Revised Code and is under  1451
contract with the department of medicaid pursuant to section  1452
5167.10 of the Revised Code.  1453
       (LLL) "Managed care premium" means any premium,  1454
capitation, or other payment a medicaid health insuring  1455
corporation receives for providing or arranging for the  1456
provision of health care services to its members or enrollees  1457
S. B. No. 104  Page 51
As Introduced
residing in this state.  1458
       (MMM) "Captive deer" means deer and other cervidae that  1459
have been legally acquired, or their offspring, that are  1460
privately owned for agricultural or farming purposes.  1461
       (NNN) "Gift card" means a document, card, certificate, or  1462
other record, whether tangible or intangible, that may be  1463
redeemed by a consumer for a dollar value when making a purchase  1464
of tangible personal property or services.  1465
       (OOO) "Specified digital product" means an electronically  1466
transferred digital audiovisual work, digital audio work, or  1467
digital book.  1468
       As used in division (OOO) of this section:  1469
       (1) "Digital audiovisual work" means a series of related  1470
images that, when shown in succession, impart an impression of  1471
motion, together with accompanying sounds, if any.  1472
       (2) "Digital audio work" means a work that results from  1473
the fixation of a series of musical, spoken, or other sounds,  1474
including digitized sound files that are downloaded onto a  1475
device and that may be used to alert the customer with respect  1476
to a communication.  1477
       (3) "Digital book" means a work that is generally  1478
recognized in the ordinary and usual sense as a book.  1479
       (4) "Electronically transferred" means obtained by the  1480
purchaser by means other than tangible storage media.  1481
       (PPP) "Digital advertising services" means providing  1482
access, by means of telecommunications equipment, to computer  1483
equipment that is used to enter, upload, download, review,  1484
manipulate, store, add, or delete data for the purpose of  1485
S. B. No. 104  Page 52
As Introduced
electronically displaying, delivering, placing, or transferring  1486
promotional advertisements to potential customers about products  1487
or services or about industry or business brands.  1488
       (QQQ) "Peer-to-peer car sharing program" has the same  1489
meaning as in section 4516.01 of the Revised Code.  1490
       (RRR) "Megaproject" and "megaproject operator" have the  1491
same meanings as in section 122.17 of the Revised Code.  1492
       (SSS)(1) "Diaper" means an absorbent garment worn by  1493
humans who are incapable of, or have difficulty, controlling  1494
their bladder or bowel movements.  1495
       (2) "Children's diaper" means a diaper marketed to be worn  1496
by children.  1497
       (3) "Adult diaper" means a diaper other than a children's  1498
diaper.  1499
       (TTT) "Sales tax holiday" means three or more dates on  1500
which sales of all eligible tangible personal property are  1501
exempt from the taxes levied under sections 5739.02, 5739.021,  1502
5739.023, 5739.026, 5741.02, 5741.021, 5741.022, and 5741.023 of  1503
the Revised Code.  1504
       (UUU) "Eligible tangible personal property" means any item  1505
of tangible personal property that meets both of the following  1506
requirements:  1507
       (1) The price of the item does not exceed five hundred  1508
dollars;  1509
       (2) The item is not a watercraft or outboard motor  1510
required to be titled pursuant to Chapter 1548. of the Revised  1511
Code, a motor vehicle, an alcoholic beverage, tobacco, a vapor  1512
product as defined in section 5743.01 of the Revised Code, or an  1513
S. B. No. 104  Page 53
As Introduced
item that contains marijuana as defined in section 3796.01 of  1514
the Revised Code.  1515
       (VVV) "Alcoholic beverages" means beverages that are  1516
suitable for human consumption and contain one-half of one per  1517
cent or more of alcohol by volume.  1518
       (WWW) "Tobacco" means cigarettes, cigars, chewing or pipe  1519
tobacco, or any other item that contains tobacco.  1520
       (XXX)(1) "Delivery network company" means a person that  1521
operates a business platform, including a web site or mobile  1522
application, to facilitate delivery network services.  1523
       (2) "Delivery network courier" means an individual  1524
connected to a consumer through a delivery network company and  1525
who provides delivery network services to that consumer.  1526
       (3) "Delivery network services" means both of the  1527
following when performed as part of a single transaction:  1528
       (a) Pickup of a local product by a delivery network  1529
courier from a local merchant that is not under common ownership  1530
or control of the delivery network company through which the  1531
transaction was initiated, and which may include selection,  1532
collection, and purchase of the local product;  1533
       (b) Delivery by the delivery network courier of that local  1534
product to a location designated by the consumer that is not  1535
more than seventy-five miles from the local merchant's place of  1536
business where the pickup described in division (XXX)(3)(a) of  1537
this section occurs.  1538
       (4) "Local merchant" means a person engaged in selling  1539
local products from a temporary or fixed place of business in  1540
this state, including a kitchen, restaurant, grocery store,  1541
S. B. No. 104  Page 54
As Introduced
retail store, or convenience store.  1542
       (5) "Local product" means any tangible personal property,  1543
including food, but excluding freight, mail, or a package to  1544
which postage is affixed.  1545
       (YYY) "Short-term rental platform" means a person that  1546
operates a business platform that uses any online-enabled  1547
application, software, web site, or system to connect owners of  1548
short-term rental properties to transient guests to enable the  1549
lodging of guests for consideration.  1550
       (ZZZ) "Short-term rental property" has the same meaning as  1551
in section 5325.01 of the Revised Code.  1552
       Sec. 5739.08. (A) A municipal corporation or township may  1553
levy an excise tax for any lawful purpose not to exceed three  1554
per cent on transactions by which lodging by a hotel or short-  1555
term rental property is or is to be furnished to transient  1556
guests in addition to the tax levied by section 5739.02 of the  1557
Revised Code. If a municipal corporation or township repeals a  1558
tax imposed under division (A) of this section, and a county in  1559
which the municipal corporation or township has territory has a  1560
tax imposed under division (M) of section 5739.09 of the Revised  1561
Code in effect, the municipal corporation or township may not  1562
reimpose its tax as long as that county tax remains in effect. A  1563
municipal corporation or township in which a tax is levied under  1564
division (B)(2) of section 351.021 of the Revised Code may not  1565
increase the rate of its tax levied under division (A) of this  1566
section to any rate that would cause the total taxes levied  1567
under both of those divisions to exceed three per cent on any  1568
lodging transaction within the municipal corporation or  1569
township.  1570
S. B. No. 104  Page 55
As Introduced
       (B) The legislative authority of a municipal corporation  1571
or the board of trustees of a township that is not wholly or  1572
partly located in a county that has in effect a resolution  1573
levying an excise tax pursuant to division (A) of section  1574
5739.09 of the Revised Code may, by ordinance or resolution,  1575
levy an additional excise tax not to exceed three per cent on  1576
transactions by which lodging by a hotel or short-term rental  1577
property is or is to be furnished to transient guests. The  1578
legislative authority of the municipal corporation or the board  1579
of trustees of the township shall deposit at least fifty per  1580
cent of the revenue from the tax levied pursuant to this  1581
division into a separate fund, which shall be spent solely to  1582
make contributions to convention and visitors' bureaus operating  1583
within the county in which the municipal corporation or township  1584
is wholly or partly located, and the balance of that revenue  1585
shall be deposited in the general fund. The municipal  1586
corporation or township shall establish all regulations  1587
necessary to provide for the administration and allocation of  1588
the tax. The regulations may prescribe the time for payment of  1589
the tax, and may provide for the imposition of a penalty or  1590
interest, or both, for late payments, provided that the penalty  1591
does not exceed ten per cent of the amount of tax due, and the  1592
rate at which interest accrues does not exceed the rate per  1593
annum prescribed pursuant to section 5703.47 of the Revised  1594
Code. The levy of a tax under this division is in addition to  1595
any tax imposed on the same transaction by a municipal  1596
corporation or a township under division (A) of this section.  1597
       (C)(1) As used in division (C) of this section, "cost" has  1598
the same meaning as in section 351.01 of the Revised Code, and  1599
"convention center" has the same meaning as in section 307.695  1600
of the Revised Code.  1601
S. B. No. 104  Page 56
As Introduced
       (2) The legislative authority of the most populous  1602
municipal corporation located wholly or partly in a county in  1603
which the board of county commissioners has levied a tax under  1604
division (D) of section 5739.09 of the Revised Code may amend,  1605
on or before September 30, 2002, that municipal corporation's  1606
ordinance or resolution that levies an excise tax on  1607
transactions by which lodging by a hotel or short-term rental  1608
property is or is to be furnished to transient guests, to  1609
provide for all of the following:  1610
       (a) That the rate of the tax shall be increased by not  1611
more than an additional one per cent on each transaction;  1612
       (b) That all of the revenue from the increase in rate  1613
shall be pledged and contributed to a convention facilities  1614
authority established by the board of county commissioners under  1615
Chapter 351. of the Revised Code on or before May 15, 2002, and  1616
be used to pay costs of constructing, expanding, maintaining,  1617
operating, or promoting a convention center in the county,  1618
including paying bonds, or notes issued in anticipation of  1619
bonds, as provided by that chapter;  1620
       (c) That the increase in rate shall not be subject to  1621
diminution by initiative or referendum or by law while any  1622
bonds, or notes in anticipation of bonds, issued by the  1623
authority under Chapter 351. of the Revised Code to which the  1624
revenue is pledged, remain outstanding in accordance with their  1625
terms, unless provision is made by law, by the board of county  1626
commissioners, or by the legislative authority, for an adequate  1627
substitute therefor that is satisfactory to the trustee if a  1628
trust agreement secures the bonds.  1629
       (3) The legislative authority of a municipal corporation  1630
that, pursuant to division (C)(2) of this section, has amended  1631
S. B. No. 104  Page 57
As Introduced
its ordinance or resolution to increase the rate of the tax  1632
authorized by division (B) of this section may further amend the  1633
ordinance or resolution to provide that the revenue referred to  1634
in division (C)(2)(b) of this section shall be pledged and  1635
contributed both to a convention facilities authority to pay the  1636
costs of constructing, expanding, maintaining, or operating one  1637
or more convention centers in the county, including paying  1638
bonds, or notes issued in anticipation of bonds, as provided in  1639
Chapter 351. of the Revised Code, and to a convention and  1640
visitors' bureau to pay the costs of promoting one or more  1641
convention centers in the county.  1642
       (D) As used in division (D) of this section, "eligible  1643
municipal corporation" means a municipal corporation that, on  1644
September 29, 2017, levied a tax under division (B) of this  1645
section at a rate of three per cent and that is located in a  1646
county that, on that date, levied a tax under division (A) of  1647
section 5739.09 of the Revised Code at a rate of three per cent  1648
and that has, according to the most recent federal decennial  1649
census, a population exceeding three hundred thousand but not  1650
greater than three hundred fifty thousand.  1651
       The legislative authority of an eligible municipal  1652
corporation may amend, on or before December 31, 2017, that  1653
municipal corporation's ordinance or resolution that levies an  1654
excise tax on transactions by which lodging by a hotel or short-  1655
term rental property is or is to be furnished to transient  1656
guests, to provide for the following:  1657
       (1) That the rate of the tax shall be increased by not  1658
more than an additional three per cent on each transaction;  1659
       (2) That all of the revenue from the increase in rate  1660
shall be used by the municipal corporation for economic  1661
S. B. No. 104  Page 58
As Introduced
development and tourism-related purposes.  1662
       (E)(1) As used in division (E) of this section, "cost" and  1663
"facility" have the same meanings as in section 351.01 of the  1664
Revised Code, except that "facility" does not include a "sports  1665
facility," as that term is defined in that section, other than a  1666
facility intended to house a major league soccer team.  1667
       (2) The legislative authority of a municipal corporation  1668
that has a population exceeding three hundred thousand but less  1669
than three hundred fifty thousand and that has adopted a  1670
resolution or ordinance levying a tax authorized by division (A)  1671
of this section may amend the resolution or ordinance to provide  1672
that all or a portion of the revenue referred to in division (A)  1673
of this section may be pledged and contributed to a convention  1674
facilities authority or a port authority to pay the costs of  1675
acquiring, constructing, renovating, expanding, maintaining, or  1676
operating one or more facilities in the county, including paying  1677
bonds, or notes issued in anticipation of bonds, or paying the  1678
expenses of maintaining, operating, or promoting one or more  1679
facilities.  1680
       (3) The legislative authority of any municipal corporation  1681
that, pursuant to division (C)(2) of this section, has amended a  1682
resolution or ordinance levying the tax authorized by division  1683
(D) of section 5739.09 of the Revised Code may further amend the  1684
resolution or ordinance to provide that all or a portion of the  1685
revenue referred to in division (C)(2)(b) of this section may be  1686
pledged and contributed to an issuing authority, as defined in  1687
section 5739.093 of the Revised Code, to pay the costs of  1688
acquiring, constructing, renovating, expanding, maintaining, or  1689
operating one or more facilities in the county, including paying  1690
bonds, or notes issued in anticipation of bonds, or paying the  1691
S. B. No. 104  Page 59
As Introduced
expenses of maintaining, operating, or promoting one or more  1692
facilities.  1693
       Sec. 5739.09. (A)(1) A board of county commissioners may,  1694
by resolution adopted by a majority of the members of the board,  1695
levy an excise tax not to exceed three per cent on transactions  1696
by which lodging by a hotel or short-term rental property is or  1697
is to be furnished to transient guests. The board shall  1698
establish all regulations necessary to provide for the  1699
administration and allocation of the tax. The regulations may  1700
prescribe the time for payment of the tax, and may provide for  1701
the imposition of a penalty or interest, or both, for late  1702
payments, provided that the penalty does not exceed ten per cent  1703
of the amount of tax due, and the rate at which interest accrues  1704
does not exceed the rate per annum prescribed pursuant to  1705
section 5703.47 of the Revised Code. Except as otherwise  1706
provided in this section, the regulations shall provide, after  1707
deducting the real and actual costs of administering the tax,  1708
for the return to each municipal corporation or township that  1709
does not levy an excise tax on the transactions, a uniform  1710
percentage of the tax collected in the municipal corporation or  1711
in the unincorporated portion of the township from each  1712
transaction, not to exceed thirty-three and one-third per cent.  1713
Except as provided in this section, the remainder of the revenue  1714
arising from the tax shall be deposited in a separate fund and  1715
shall be spent either (a) to make contributions to the  1716
convention and visitors' bureau operating within the county,  1717
including a pledge and contribution of any portion of the  1718
remainder pursuant to an agreement authorized by section 307.678  1719
or 307.695 of the Revised Code or (b) to pay, if authorized in  1720
the regulations, for public safety services in a resort area  1721
designated under section 5739.101 of the Revised Code.  1722
S. B. No. 104  Page 60
As Introduced
       (2) If the board of county commissioners of an eligible  1723
county as defined in section 307.678 or 307.695 of the Revised  1724
Code adopts a resolution amending a resolution levying a tax  1725
under division (A) of this section to provide that revenue from  1726
the tax shall be used by the board as described in either  1727
division (D) of section 307.678 or division (H) of section  1728
307.695 of the Revised Code, the remainder of the revenue shall  1729
be used as described in the resolution making that amendment.  1730
       (3) Except as provided in division (B), (C), (D), (E),  1731
(F), (G), (H), (I), (J), (K), or (Q) of this section, on and  1732
after May 10, 1994, a board of county commissioners may not levy  1733
an excise tax pursuant to division (A) of this section in any  1734
municipal corporation or township located wholly or partly  1735
within the county that has in effect an ordinance or resolution  1736
levying an excise tax pursuant to division (B) of section  1737
5739.08 of the Revised Code.  1738
       (4) The board of a county that has levied a tax under  1739
division (M) of this section may, by resolution adopted within  1740
ninety days after July 15, 1985, by a majority of the members of  1741
the board, amend the resolution levying a tax under division (A)  1742
of this section to provide for a portion of that tax to be  1743
pledged and contributed in accordance with an agreement entered  1744
into under section 307.695 of the Revised Code. A tax, any  1745
revenue from which is pledged pursuant to such an agreement,  1746
shall remain in effect at the rate at which it is imposed for  1747
the duration of the period for which the revenue from the tax  1748
has been so pledged.  1749
       (5) The board of county commissioners of an eligible  1750
county as defined in section 307.695 of the Revised Code may, by  1751
resolution adopted by a majority of the members of the board,  1752
S. B. No. 104  Page 61
As Introduced
amend a resolution levying a tax under division (A) of this  1753
section to provide that the revenue from the tax shall be used  1754
by the board as described in division (H) of section 307.695 of  1755
the Revised Code, in which case the tax shall remain in effect  1756
at the rate at which it was imposed for the duration of any  1757
agreement entered into by the board under section 307.695 of the  1758
Revised Code, the duration during which any securities issued by  1759
the board under that section are outstanding, or the duration of  1760
the period during which the board owns a project as defined in  1761
section 307.695 of the Revised Code, whichever duration is  1762
longest.  1763
        (6) The board of county commissioners of an eligible  1764
county as defined in section 307.678 of the Revised Code may, by  1765
resolution, amend a resolution levying a tax under division (A)  1766
of this section to provide that revenue from the tax, not to  1767
exceed five hundred thousand dollars each year, may be used as  1768
described in division (E) of section 307.678 of the Revised  1769
Code.  1770
        (7) Notwithstanding division (A) of this section, the  1771
board of county commissioners of a county described in division  1772
(H)(1) of this section may, by resolution, amend a resolution  1773
levying a tax under division (A) of this section to provide that  1774
all or a portion of the revenue from the tax, including any  1775
revenue otherwise required to be returned to townships or  1776
municipal corporations under that division, may be used or  1777
pledged for the payment of debt service on securities issued to  1778
pay the costs of constructing, operating, and maintaining sports  1779
facilities described in division (H)(2) of this section.  1780
        (8) The board of county commissioners of a county  1781
described in division (I) of this section may, by resolution,  1782
S. B. No. 104  Page 62
As Introduced
amend a resolution levying a tax under division (A) of this  1783
section to provide that all or a portion of the revenue from the  1784
tax may be used for the purposes described in section 307.679 of  1785
the Revised Code.  1786
       (B) A board of county commissioners that levies an excise  1787
tax under division (A) of this section on June 30, 1997, at a  1788
rate of three per cent, and that has pledged revenue from the  1789
tax to an agreement entered into under section 307.695 of the  1790
Revised Code or, in the case of the board of county  1791
commissioners of an eligible county as defined in section  1792
307.695 of the Revised Code, has amended a resolution levying a  1793
tax under division (M) of this section to provide that proceeds  1794
from the tax shall be used by the board as described in division  1795
(H) of section 307.695 of the Revised Code, may, at any time by  1796
a resolution adopted by a majority of the members of the board,  1797
amend the resolution levying a tax under division (A) of this  1798
section to provide for an increase in the rate of that tax up to  1799
seven per cent on each transaction; to provide that revenue from  1800
the increase in the rate shall be used as described in division  1801
(H) of section 307.695 of the Revised Code or be spent solely to  1802
make contributions to the convention and visitors' bureau  1803
operating within the county to be used specifically for  1804
promotion, advertising, and marketing of the region in which the  1805
county is located; and to provide that the rate in excess of the  1806
three per cent levied under division (A) of this section shall  1807
remain in effect at the rate at which it is imposed for the  1808
duration of the period during which any agreement is in effect  1809
that was entered into under section 307.695 of the Revised Code  1810
by the board of county commissioners levying a tax under  1811
division (A) of this section, the duration of the period during  1812
which any securities issued by the board under division (I) of  1813
S. B. No. 104  Page 63
As Introduced
section 307.695 of the Revised Code are outstanding, or the  1814
duration of the period during which the board owns a project as  1815
defined in section 307.695 of the Revised Code, whichever  1816
duration is longest. The amendment also shall provide that no  1817
portion of that revenue need be returned to townships or  1818
municipal corporations as would otherwise be required under  1819
division (A) of this section.  1820
       (C)(1) As used in division (C) of this section, "cost" and  1821
"facility" have the same meanings as in section 351.01 of the  1822
Revised Code, and "convention center" has the same meaning as in  1823
section 307.695 of the Revised Code.  1824
       (2) A board of county commissioners that levies a tax  1825
under division (A) of this section on March 18, 1999, at a rate  1826
of three per cent may, by resolution adopted not later than  1827
forty-five days after March 18, 1999, amend the resolution  1828
levying the tax to provide for all of the following:  1829
       (a) That the rate of the tax shall be increased by not  1830
more than an additional four per cent on each transaction;  1831
       (b) That all of the revenue from the increase in the rate  1832
shall be pledged and contributed to a convention facilities  1833
authority established by the board of county commissioners under  1834
Chapter 351. of the Revised Code on or before November 15, 1998,  1835
and used to pay costs of constructing, maintaining, operating,  1836
and promoting a facility in the county, including paying bonds,  1837
or notes issued in anticipation of bonds, as provided by that  1838
chapter;  1839
       (c) That no portion of the revenue arising from the  1840
increase in rate need be returned to municipal corporations or  1841
townships as otherwise required under division (A) of this  1842
S. B. No. 104  Page 64
As Introduced
section;  1843
       (d) That the increase in rate shall not be subject to  1844
diminution by initiative or referendum or by law while any  1845
bonds, or notes in anticipation of bonds, issued by the  1846
authority under Chapter 351. of the Revised Code to which the  1847
revenue is pledged, remain outstanding in accordance with their  1848
terms, unless provision is made by law or by the board of county  1849
commissioners for an adequate substitute therefor that is  1850
satisfactory to the trustee if a trust agreement secures the  1851
bonds.  1852
       (3) Division (C) of this section does not apply to the  1853
board of county commissioners of any county in which a  1854
convention center or facility exists or is being constructed on  1855
November 15, 1998, or of any county in which a convention  1856
facilities authority levies a tax pursuant to section 351.021 of  1857
the Revised Code on that date.  1858
       (D)(1) As used in division (D) of this section, "cost" has  1859
the same meaning as in section 351.01 of the Revised Code, and  1860
"convention center" has the same meaning as in section 307.695  1861
of the Revised Code.  1862
       (2) A board of county commissioners that levies a tax  1863
under division (A) of this section on June 30, 2002, at a rate  1864
of three per cent may, by resolution adopted not later than  1865
September 30, 2002, amend the resolution levying the tax to  1866
provide for all of the following:  1867
       (a) That the rate of the tax shall be increased by not  1868
more than an additional three and one-half per cent on each  1869
transaction;  1870
       (b) That all of the revenue from the increase in rate  1871
S. B. No. 104  Page 65
As Introduced
shall be pledged and contributed to a convention facilities  1872
authority established by the board of county commissioners under  1873
Chapter 351. of the Revised Code on or before May 15, 2002, and  1874
be used to pay costs of constructing, expanding, maintaining,  1875
operating, or promoting a convention center in the county,  1876
including paying bonds, or notes issued in anticipation of  1877
bonds, as provided by that chapter;  1878
       (c) That no portion of the revenue arising from the  1879
increase in rate need be returned to municipal corporations or  1880
townships as otherwise required under division (A) of this  1881
section;  1882
       (d) That the increase in rate shall not be subject to  1883
diminution by initiative or referendum or by law while any  1884
bonds, or notes in anticipation of bonds, issued by the  1885
authority under Chapter 351. of the Revised Code to which the  1886
revenue is pledged, remain outstanding in accordance with their  1887
terms, unless provision is made by law or by the board of county  1888
commissioners for an adequate substitute therefor that is  1889
satisfactory to the trustee if a trust agreement secures the  1890
bonds.  1891
       (3) Any board of county commissioners that, pursuant to  1892
division (D)(2) of this section, has amended a resolution  1893
levying the tax authorized by division (A) of this section may  1894
further amend the resolution to provide that the revenue  1895
referred to in division (D)(2)(b) of this section shall be  1896
pledged and contributed both to a convention facilities  1897
authority to pay the costs of constructing, expanding,  1898
maintaining, or operating one or more convention centers in the  1899
county, including paying bonds, or notes issued in anticipation  1900
of bonds, as provided in Chapter 351. of the Revised Code, and  1901
S. B. No. 104  Page 66
As Introduced
to a convention and visitors' bureau to pay the costs of  1902
promoting one or more convention centers in the county.  1903
       (E)(1) As used in division (E) of this section:  1904
       (a) "Port authority" means a port authority created under  1905
Chapter 4582. of the Revised Code.  1906
       (b) "Port authority military-use facility" means port  1907
authority facilities on which or adjacent to which is located an  1908
installation of the armed forces of the United States, a reserve  1909
component thereof, or the national guard and at least part of  1910
which is made available for use, for consideration, by the armed  1911
forces of the United States, a reserve component thereof, or the  1912
national guard.  1913
       (2) For the purpose of contributing revenue to pay  1914
operating expenses of a port authority that operates a port  1915
authority military-use facility, the board of county  1916
commissioners of a county that created, participated in the  1917
creation of, or has joined such a port authority may do one or  1918
both of the following:  1919
       (a) Amend a resolution previously adopted under division  1920
(A) of this section to designate some or all of the revenue from  1921
the tax levied under the resolution to be used for that purpose,  1922
notwithstanding that division;  1923
       (b) Amend a resolution previously adopted under division  1924
(A) of this section to increase the rate of the tax by not more  1925
than an additional two per cent and use the revenue from the  1926
increase exclusively for that purpose.  1927
       (3) If a board of county commissioners amends a resolution  1928
to increase the rate of a tax as authorized in division (E)(2)  1929
(b) of this section, the board also may amend the resolution to  1930
S. B. No. 104  Page 67
As Introduced
specify that the increase in rate of the tax does not apply to  1931
"hotels," as otherwise defined in section 5739.01 of the Revised  1932
Code, having fewer rooms used for the accommodation of guests  1933
than a number of rooms specified by the board. This limitation  1934
on the hotels to which the tax applies does not apply on and  1935
after the first day of the first month starting thirty or more  1936
days after the effective date of this amendment.  1937
       (F)(1) A board of county commissioners of a county  1938
organized under a county charter adopted pursuant to Article X,  1939
Section 3, Ohio Constitution, and that levies an excise tax  1940
under division (A) of this section at a rate of three per cent  1941
and levies an additional excise tax under division (O) of this  1942
section at a rate of one and one-half per cent may, by  1943
resolution adopted not later than January 1, 2008, by a majority  1944
of the members of the board, amend the resolution levying a tax  1945
under division (A) of this section to provide for an increase in  1946
the rate of that tax by not more than an additional one per cent  1947
on transactions by which lodging by a hotel or short-term rental  1948
property is or is to be furnished to transient guests.  1949
Notwithstanding divisions (A) and (O) of this section, the  1950
resolution shall provide that all of the revenue from the  1951
increase in rate, after deducting the real and actual costs of  1952
administering the tax, shall be used to pay the costs of  1953
improving, expanding, equipping, financing, or operating a  1954
convention center by a convention and visitors' bureau in the  1955
county.  1956
       (2) The increase in rate shall remain in effect for the  1957
period specified in the resolution, not to exceed ten years, and  1958
may be extended for an additional period of time not to exceed  1959
ten years thereafter by a resolution adopted by a majority of  1960
the members of the board.  1961
S. B. No. 104  Page 68
As Introduced
       (3) The increase in rate shall be subject to the  1962
regulations adopted under division (A) of this section, except  1963
that the resolution may provide that no portion of the revenue  1964
from the increase in the rate shall be returned to townships or  1965
municipal corporations as would otherwise be required under that  1966
division.  1967
       (G)(1) Division (G) of this section applies only to a  1968
county with a population greater than sixty-five thousand and  1969
less than seventy thousand according to the most recent federal  1970
decennial census and in which, on December 31, 2006, an excise  1971
tax is levied under division (A) of this section at a rate not  1972
less than and not greater than three per cent, and in which the  1973
most recent increase in the rate of that tax was enacted or took  1974
effect in November 1984.  1975
       (2) The board of county commissioners of a county to which  1976
division (G) of this section applies, by resolution adopted by a  1977
majority of the members of the board, may increase the rate of  1978
the tax by not more than one per cent on transactions by which  1979
lodging by a hotel or short-term rental property is or is to be  1980
furnished to transient guests. The increase in rate shall be for  1981
the purpose of paying expenses deemed necessary by the  1982
convention and visitors' bureau operating in the county to  1983
promote travel and tourism.  1984
       (3) The increase in rate shall remain in effect for the  1985
period specified in the resolution, not to exceed twenty years,  1986
provided that the increase in rate may not continue beyond the  1987
time when the purpose for which the increase is levied ceases to  1988
exist. If revenue from the increase in rate is pledged to the  1989
payment of debt charges on securities, the increase in rate is  1990
not subject to diminution by initiative or referendum or by law  1991
S. B. No. 104  Page 69
As Introduced
for so long as the securities are outstanding, unless provision  1992
is made by law or by the board of county commissioners for an  1993
adequate substitute for that revenue that is satisfactory to the  1994
trustee if a trust agreement secures payment of the debt  1995
charges.  1996
        (4) The increase in rate shall be subject to the  1997
regulations adopted under division (A) of this section, except  1998
that the resolution may provide that no portion of the revenue  1999
from the increase in the rate shall be returned to townships or  2000
municipal corporations as would otherwise be required under  2001
division (A) of this section.  2002
        (5) A resolution adopted under division (G) of this  2003
section is subject to referendum under sections 305.31 to 305.99  2004
of the Revised Code.  2005
        (H)(1) Division (H) of this section applies only to a  2006
county satisfying all of the following:  2007
        (a) The population of the county is greater than one  2008
hundred seventy-five thousand and less than two hundred twenty-  2009
five thousand according to the most recent federal decennial  2010
census.  2011
        (b) An amusement park with an average yearly attendance in  2012
excess of two million guests is located in the county.  2013
        (c) On December 31, 2014, an excise tax was levied in the  2014
county under division (A) of this section at a rate of three per  2015
cent.  2016
        (2) The board of county commissioners of a county to which  2017
division (H) of this section applies, by resolution adopted by a  2018
majority of the members of the board, may increase the rate of  2019
the tax by not more than one per cent on transactions by which  2020
S. B. No. 104  Page 70
As Introduced
lodging by a hotel or short-term rental property is or is to be  2021
furnished to transient guests. The increase in rate shall be  2022
used to pay the costs of constructing and maintaining facilities  2023
owned by the county or by a port authority created under Chapter  2024
4582. of the Revised Code, and designed to host sporting events  2025
and expenses deemed necessary by the convention and visitors'  2026
bureau operating in the county to promote travel and tourism  2027
with reference to the sports facilities, and to pay or pledge to  2028
the payment of debt service on securities issued to pay the  2029
costs of constructing, operating, and maintaining the sports  2030
facilities.  2031
       (3) The increase in rate shall remain in effect for the  2032
period specified in the resolution. If revenue from the increase  2033
in rate is pledged to the payment of debt charges on securities,  2034
the increase in rate is not subject to diminution by initiative  2035
or referendum or by law for so long as the securities are  2036
outstanding, unless provision is made by law or by the board of  2037
county commissioners for an adequate substitute for that revenue  2038
that is satisfactory to the trustee if a trust agreement secures  2039
payment of the debt charges.  2040
       (4) The increase in rate shall be subject to the  2041
regulations adopted under division (A) of this section, except  2042
that the resolution may provide that no portion of the revenue  2043
from the increase in the rate shall be returned to townships or  2044
municipal corporations as would otherwise be required under  2045
division (A) of this section.  2046
       (I)(1) The board of county commissioners of a county with  2047
a population greater than seventy-five thousand and less than  2048
seventy-eight thousand, by resolution adopted by a majority of  2049
the members of the board not later than October 15, 2015, may  2050
S. B. No. 104  Page 71
As Introduced
increase the rate of the tax by not more than one per cent on  2051
transactions by which lodging by a hotel or short-term rental  2052
property is or is to be furnished to transient guests. The  2053
increase in rate shall be for the purposes described in section  2054
307.679 of the Revised Code or for the promotion of travel and  2055
tourism in the county, including travel and tourism to sports  2056
facilities.  2057
       (2) The increase in rate shall remain in effect for the  2058
period specified in the resolution and as necessary to fulfill  2059
the county's obligations under a cooperative agreement entered  2060
into under section 307.679 of the Revised Code. If the  2061
resolution is adopted by the board before September 29, 2015,  2062
but after that enactment becomes law, the increase in rate shall  2063
become effective beginning on September 29, 2015. If revenue  2064
from the increase in rate is pledged to the payment of debt  2065
charges on securities, or to substitute for other revenues  2066
pledged to the payment of such debt, the increase in rate is not  2067
subject to diminution by initiative or referendum or by law for  2068
so long as the securities are outstanding, unless provision is  2069
made by law or by the board of county commissioners for an  2070
adequate substitute for that revenue that is satisfactory to the  2071
trustee if a trust agreement secures payment of the debt  2072
charges.  2073
       (3) The increase in rate shall be subject to the  2074
regulations adopted under division (A) of this section, except  2075
that no portion of the revenue from the increase in the rate  2076
shall be returned to townships or municipal corporations as  2077
would otherwise be required under division (A) of this section.  2078
       (J)(1) Division (J) of this section applies only to  2079
counties satisfying either of the following:  2080
S. B. No. 104  Page 72
As Introduced
       (a) A county that, on July 1, 2015, does not levy an  2081
excise tax under division (A) of this section and that has a  2082
population of at least thirty-nine thousand but not more than  2083
forty thousand according to the 2010 federal decennial census;  2084
       (b) A county that, on July 1, 2015, levies an excise tax  2085
under division (A) of this section at a rate of three per cent  2086
and that has a population of at least seventy-one thousand but  2087
not more than seventy-five thousand according to 2010 federal  2088
decennial census.  2089
       (2) The board of county commissioners of a county to which  2090
division (J) of this section applies, by resolution adopted by a  2091
majority of the members of the board, may levy an excise tax at  2092
a rate not to exceed three per cent on transactions by which  2093
lodging by a hotel or short-term rental property is or is to be  2094
furnished to transient guests for the purpose of acquiring,  2095
constructing, equipping, or repairing permanent improvements, as  2096
defined in section 133.01 of the Revised Code.  2097
       (3) If the board does not levy a tax under division (A) of  2098
this section, the board shall establish regulations necessary to  2099
provide for the administration of the tax, which may prescribe  2100
the time for payment of the tax and the imposition of penalty or  2101
interest subject to the limitations on penalty and interest  2102
provided in division (A) of this section. No portion of the  2103
revenue shall be returned to townships or municipal corporations  2104
in the county unless otherwise provided by resolution of the  2105
board.  2106
       (4) The tax shall apply throughout the territory of the  2107
county, including in any township or municipal corporation  2108
levying an excise tax under division (A) or (B) of section  2109
5739.08 of the Revised Code. The levy of the tax is subject to  2110
S. B. No. 104  Page 73
As Introduced
referendum as provided under section 305.31 of the Revised Code.  2111
        (5) The tax shall remain in effect for the period  2112
specified in the resolution. If revenue from the increase in  2113
rate is pledged to the payment of debt charges on securities,  2114
the increase in rate is not subject to diminution by initiative  2115
or referendum or by law for so long as the securities are  2116
outstanding unless provision is made by law or by the board for  2117
an adequate substitute for that revenue that is satisfactory to  2118
the trustee if a trust agreement secures payment of the debt  2119
charges.  2120
        (K)(1) The board of county commissioners of an eligible  2121
county, as defined in section 307.678 of the Revised Code, that  2122
levies an excise tax under division (A) of this section on July  2123
1, 2017, at a rate of three per cent may, by resolution adopted  2124
by a majority of the members of the board, amend the resolution  2125
levying the tax to increase the rate of the tax by not more than  2126
an additional three per cent on each transaction.  2127
        (2) No portion of the revenue shall be returned to  2128
townships or municipal corporations in the county unless  2129
otherwise provided by resolution of the board. Otherwise, the  2130
revenue from the increase in the rate shall be distributed and  2131
used in the same manner described under division (A) of this  2132
section or distributed or used to provide credit enhancement  2133
facilities as authorized under section 307.678 of the Revised  2134
Code.  2135
        (3) The increase in rate shall remain in effect for the  2136
period specified in the resolution. If revenue from the increase  2137
in rate is pledged to the payment of debt charges on securities,  2138
the increase in rate is not subject to diminution by initiative  2139
or referendum or by law for so long as the securities are  2140
S. B. No. 104  Page 74
As Introduced
outstanding unless provision is made by law or by the board for  2141
an adequate substitute for that revenue that is satisfactory to  2142
the trustee if a trust agreement secures payment of the debt  2143
charges.  2144
       (L)(1) As used in division (L) of this section:  2145
       (a) "Eligible county" means a county that has a population  2146
greater than one hundred ninety thousand and less than two  2147
hundred thousand according to the 2010 federal decennial census  2148
and that levies an excise tax under division (A) of this section  2149
at a rate of three per cent.  2150
       (b) "Professional sports facility" means a sports facility  2151
that is intended to house major or minor league professional  2152
athletic teams, including a stadium, together with all parking  2153
facilities, walkways, and other auxiliary facilities, real and  2154
personal property, property rights, easements, and interests  2155
that may be appropriate for, or used in connection with, the  2156
operation of the facility.  2157
       (2) Subject to division (L)(3) of this section, the board  2158
of county commissioners of an eligible county, by resolution  2159
adopted by a majority of the members of the board, may increase  2160
the rate of the tax by not more than one per cent on  2161
transactions by which lodging by a hotel or short-term rental  2162
property is or is to be furnished to transient guests. Revenue  2163
from the increase in rate shall be used for the purposes of  2164
paying the costs of constructing, improving, and maintaining a  2165
professional sports facility in the county and paying expenses  2166
considered necessary by the convention and visitors' bureau  2167
operating in the county to promote travel and tourism with  2168
respect to that professional sports facility. The tax shall take  2169
effect only after the convention and visitors' bureau enters  2170
S. B. No. 104  Page 75
As Introduced
into a contract for the construction, improvement, or  2171
maintenance of a professional sports facility that is or will be  2172
located on property acquired, in whole or in part, with revenue  2173
from the increased rate, and thereafter shall remain in effect  2174
for the period specified in the resolution. If revenue from the  2175
increase in rate is pledged to the payment of debt charges on  2176
securities, the increase in rate is not subject to diminution by  2177
initiative or referendum or by law for so long as the securities  2178
are outstanding, unless a provision is made by law or by the  2179
board of county commissioners for an adequate substitute for  2180
that revenue that is satisfactory to the trustee if a trust  2181
agreement secures payment of the debt charges. The increase in  2182
rate shall be subject to the regulations adopted under division  2183
(A) of this section, except that the resolution may provide that  2184
no portion of the revenue from the increase in the rate shall be  2185
returned to townships or municipal corporations as would  2186
otherwise be required under division (A) of this section.  2187
       (3) If, on December 31, 2019, the convention and visitors'  2188
bureau has not entered into a contract for the construction,  2189
improvement, or maintenance of a professional sports facility  2190
that is or will be located on property acquired, in whole or in  2191
part, with revenue from the increased rate, the authority to  2192
levy the tax under division (L)(2) of this section is hereby  2193
repealed on that date.  2194
       (M)(1) For the purposes described in section 307.695 of  2195
the Revised Code and to cover the costs of administering the  2196
tax, a board of county commissioners of a county where a tax  2197
imposed under division (A) of this section is in effect may, by  2198
resolution adopted within ninety days after July 15, 1985, by a  2199
majority of the members of the board, levy an additional excise  2200
tax not to exceed three per cent on transactions by which  2201
S. B. No. 104  Page 76
As Introduced
lodging by a hotel or short-term rental property is or is to be  2202
furnished to transient guests. The tax authorized by division  2203
(M) of this section shall be in addition to any tax that is  2204
levied pursuant to divisions (A) to (L) of this section, but it  2205
shall not apply to transactions subject to a tax levied by a  2206
municipal corporation or township pursuant to section 5739.08 of  2207
the Revised Code.  2208
       (2) The board shall establish all regulations necessary to  2209
provide for the administration and allocation of the tax. The  2210
regulations may prescribe the time for payment of the tax, and  2211
may provide for the imposition of a penalty or interest, or  2212
both, for late payments, provided that the penalty does not  2213
exceed ten per cent of the amount of tax due, and the rate at  2214
which interest accrues does not exceed the rate per annum  2215
prescribed pursuant to section 5703.47 of the Revised Code.  2216
       (3) All revenues arising from the tax shall be expended in  2217
accordance with section 307.695 of the Revised Code. The board  2218
of county commissioners of an eligible county as defined in  2219
section 307.695 of the Revised Code may, by resolution adopted  2220
by a majority of the members of the board, amend the resolution  2221
levying a tax under this division to provide that the revenue  2222
from the tax shall be used by the board as described in division  2223
(H) of section 307.695 of the Revised Code.  2224
       (4) A tax imposed under this division shall remain in  2225
effect at the rate at which it is imposed for the duration of  2226
the period during which any agreement entered into by the board  2227
under section 307.695 of the Revised Code is in effect, the  2228
duration of the period during which any securities issued by the  2229
board under division (I) of section 307.695 of the Revised Code  2230
are outstanding, or the duration of the period during which the  2231
S. B. No. 104  Page 77
As Introduced
board owns a project as defined in section 307.695 of the  2232
Revised Code, whichever duration is longest.  2233
       (N)(1) For the purpose of providing contributions under  2234
division (B)(1) of section 307.671 of the Revised Code to enable  2235
the acquisition, construction, and equipping of a port authority  2236
educational and cultural facility in the county and, to the  2237
extent provided for in the cooperative agreement authorized by  2238
that section, for the purpose of paying debt service charges on  2239
bonds, or notes in anticipation of bonds, described in division  2240
(B)(1)(b) of that section, a board of county commissioners, by  2241
resolution adopted within ninety days after December 22, 1992,  2242
by a majority of the members of the board, may levy an  2243
additional excise tax not to exceed one and one-half per cent on  2244
transactions by which lodging by a hotel or short-term rental  2245
property is or is to be furnished to transient guests. The  2246
excise tax authorized by division (N) of this section shall be  2247
in addition to any tax that is levied pursuant to divisions (A)  2248
to (M) of this section, to any excise tax levied pursuant to  2249
section 5739.08 of the Revised Code, and to any excise tax  2250
levied pursuant to section 351.021 of the Revised Code.  2251
       (2) The board of county commissioners shall establish all  2252
regulations necessary to provide for the administration and  2253
allocation of the tax that are not inconsistent with this  2254
section or section 307.671 of the Revised Code. The regulations  2255
may prescribe the time for payment of the tax, and may provide  2256
for the imposition of a penalty or interest, or both, for late  2257
payments, provided that the penalty does not exceed ten per cent  2258
of the amount of tax due, and the rate at which interest accrues  2259
does not exceed the rate per annum prescribed pursuant to  2260
section 5703.47 of the Revised Code.  2261
S. B. No. 104  Page 78
As Introduced
       (3) All revenues arising from the tax shall be expended in  2262
accordance with section 307.671 of the Revised Code and division  2263
(N) of this section. The levy of a tax imposed under division  2264
(N) of this section may not commence prior to the first day of  2265
the month next following the execution of the cooperative  2266
agreement authorized by section 307.671 of the Revised Code by  2267
all parties to that agreement.  2268
       (4) The tax shall remain in effect at the rate at which it  2269
is imposed for the period of time described in division (C) of  2270
section 307.671 of the Revised Code for which the revenue from  2271
the tax has been pledged by the county to the corporation  2272
pursuant to that section, but, to any extent provided for in the  2273
cooperative agreement, for no lesser period than the period of  2274
time required for payment of the debt service charges on bonds,  2275
or notes in anticipation of bonds, described in division (B)(1)  2276
(b) of that section.  2277
       (O)(1) For the purpose of paying the costs of acquiring,  2278
constructing, equipping, and improving a municipal educational  2279
and cultural facility, including debt service charges on bonds  2280
provided for in division (B) of section 307.672 of the Revised  2281
Code, and for any additional purposes determined by the county  2282
in the resolution levying the tax or amendments to the  2283
resolution, including subsequent amendments providing for paying  2284
costs of acquiring, constructing, renovating, rehabilitating,  2285
equipping, and improving a port authority educational and  2286
cultural performing arts facility, as defined in section 307.674  2287
of the Revised Code, and including debt service charges on bonds  2288
provided for in division (B) of section 307.674 of the Revised  2289
Code, the legislative authority of a county, by resolution  2290
adopted within ninety days after June 30, 1993, by a majority of  2291
the members of the legislative authority, may levy an additional  2292
S. B. No. 104  Page 79
As Introduced
excise tax not to exceed one and one-half per cent on  2293
transactions by which lodging by a hotel or short-term rental  2294
property is or is to be furnished to transient guests. The  2295
excise tax authorized by division (O) of this section shall be  2296
in addition to any tax that is levied pursuant to divisions (A)  2297
to (N) of this section, to any excise tax levied pursuant to  2298
section 5739.08 of the Revised Code, and to any excise tax  2299
levied pursuant to section 351.021 of the Revised Code.  2300
       (2) The legislative authority of the county shall  2301
establish all regulations necessary to provide for the  2302
administration and allocation of the tax. The regulations may  2303
prescribe the time for payment of the tax, and may provide for  2304
the imposition of a penalty or interest, or both, for late  2305
payments, provided that the penalty does not exceed ten per cent  2306
of the amount of tax due, and the rate at which interest accrues  2307
does not exceed the rate per annum prescribed pursuant to  2308
section 5703.47 of the Revised Code.  2309
       (3) All revenues arising from the tax shall be expended in  2310
accordance with section 307.672 of the Revised Code and this  2311
division. The levy of a tax imposed under this division shall  2312
not commence prior to the first day of the month next following  2313
the execution of the cooperative agreement authorized by section  2314
307.672 of the Revised Code by all parties to that agreement.  2315
The tax shall remain in effect at the rate at which it is  2316
imposed for the period of time determined by the legislative  2317
authority of the county. That period of time shall not exceed  2318
fifteen years, except that the legislative authority of a county  2319
with a population of less than two hundred fifty thousand  2320
according to the most recent federal decennial census, by  2321
resolution adopted by a majority of its members before the  2322
original tax expires, may extend the duration of the tax for an  2323
S. B. No. 104  Page 80
As Introduced
additional period of time. The additional period of time by  2324
which a legislative authority extends a tax levied under  2325
division (O) of this section shall not exceed fifteen years.  2326
       (P)(1) The legislative authority of a county that has  2327
levied a tax under division (O) of this section may, by  2328
resolution adopted within one hundred eighty days after January  2329
4, 2001, by a majority of the members of the legislative  2330
authority, amend the resolution levying a tax under that  2331
division to provide for the use of the proceeds of that tax, to  2332
the extent that it is no longer needed for its original purpose  2333
as determined by the parties to a cooperative agreement  2334
amendment pursuant to division (D) of section 307.672 of the  2335
Revised Code, to pay costs of acquiring, constructing,  2336
renovating, rehabilitating, equipping, and improving a port  2337
authority educational and cultural performing arts facility,  2338
including debt service charges on bonds provided for in division  2339
(B) of section 307.674 of the Revised Code, and to pay all  2340
obligations under any guaranty agreements, reimbursement  2341
agreements, or other credit enhancement agreements described in  2342
division (C) of section 307.674 of the Revised Code.  2343
       (2) The resolution may also provide for the extension of  2344
the tax at the same rate for the longer of the period of time  2345
determined by the legislative authority of the county, but not  2346
to exceed an additional twenty-five years, or the period of time  2347
required to pay all debt service charges on bonds provided for  2348
in division (B) of section 307.672 of the Revised Code and on  2349
port authority revenue bonds provided for in division (B) of  2350
section 307.674 of the Revised Code.  2351
       (3) All revenues arising from the amendment and extension  2352
of the tax shall be expended in accordance with section 307.674  2353
S. B. No. 104  Page 81
As Introduced
of the Revised Code and divisions (O) and (P) of this section.  2354
       (Q)(1) As used in division (Q) of this section:  2355
       (a) "Convention facilities authority" has the same meaning  2356
as in section 351.01 of the Revised Code.  2357
       (b) "Convention center" has the same meaning as in section  2358
307.695 of the Revised Code.  2359
       (2) Notwithstanding any contrary provision of division (N)  2360
of this section, the legislative authority of a county with a  2361
population of one million or more according to the most recent  2362
federal decennial census that has levied a tax under division  2363
(N) of this section may, by resolution adopted by a majority of  2364
the members of the legislative authority, provide for the  2365
extension of such levy and may provide that the proceeds of that  2366
tax, to the extent that they are no longer needed for their  2367
original purpose as defined by a cooperative agreement entered  2368
into under section 307.671 of the Revised Code, shall be  2369
deposited into the county general revenue fund. The resolution  2370
shall provide for the extension of the tax at a rate not to  2371
exceed the rate specified in division (N) of this section for a  2372
period of time determined by the legislative authority of the  2373
county, but not to exceed an additional forty years.  2374
       (3) The legislative authority of a county with a  2375
population of one million or more that has levied a tax under  2376
division (A) of this section may, by resolution adopted by a  2377
majority of the members of the legislative authority, increase  2378
the rate of the tax levied by such county under division (A) of  2379
this section to a rate not to exceed five per cent on  2380
transactions by which lodging by a hotel or short-term rental  2381
property is or is to be furnished to transient guests.  2382
S. B. No. 104  Page 82
As Introduced
Notwithstanding any contrary provision of division (A) of this  2383
section, the resolution may provide that all collections  2384
resulting from the rate levied in excess of three per cent,  2385
after deducting the real and actual costs of administering the  2386
tax, shall be deposited in the county general fund.  2387
       (4) The legislative authority of a county with a  2388
population of one million or more that has levied a tax under  2389
division (A) of this section may, by resolution adopted on or  2390
before August 30, 2004, by a majority of the members of the  2391
legislative authority, provide that all or a portion of the  2392
proceeds of the tax levied under division (A) of this section,  2393
after deducting the real and actual costs of administering the  2394
tax and the amounts required to be returned to townships and  2395
municipal corporations with respect to the first three per cent  2396
levied under division (A) of this section, shall be deposited in  2397
the county general fund, provided that such proceeds shall be  2398
used to satisfy any pledges made in connection with an agreement  2399
entered into under section 307.695 of the Revised Code.  2400
       (5) No amount collected from a tax levied, extended, or  2401
required to be deposited in the county general fund under  2402
division (Q) of this section shall be contributed to a  2403
convention facilities authority, corporation, or other entity  2404
created after July 1, 2003, for the principal purpose of  2405
constructing, improving, expanding, equipping, financing, or  2406
operating a convention center unless the mayor of the municipal  2407
corporation in which the convention center is to be operated by  2408
that convention facilities authority, corporation, or other  2409
entity has consented to the creation of that convention  2410
facilities authority, corporation, or entity. Notwithstanding  2411
any contrary provision of section 351.04 of the Revised Code, if  2412
a tax is levied by a county under division (Q) of this section,  2413
S. B. No. 104  Page 83
As Introduced
the board of county commissioners of that county may determine  2414
the manner of selection, the qualifications, the number, and  2415
terms of office of the members of the board of directors of any  2416
convention facilities authority, corporation, or other entity  2417
described in division (Q)(5) of this section.  2418
       (6)(a) No amount collected from a tax levied, extended, or  2419
required to be deposited in the county general fund under  2420
division (Q) of this section may be used for any purpose other  2421
than paying the direct and indirect costs of constructing,  2422
improving, expanding, equipping, financing, or operating a  2423
convention center and for the real and actual costs of  2424
administering the tax, unless, prior to the adoption of the  2425
resolution of the legislative authority of the county  2426
authorizing the levy, extension, increase, or deposit, the  2427
county and the mayor of the most populous municipal corporation  2428
in that county have entered into an agreement as to the use of  2429
such amounts, provided that such agreement has been approved by  2430
a majority of the mayors of the other municipal corporations in  2431
that county. The agreement shall provide that the amounts to be  2432
used for purposes other than paying the convention center or  2433
administrative costs described in division (Q)(6)(a) of this  2434
section be used only for the direct and indirect costs of  2435
capital improvements, including the financing of capital  2436
improvements, except that the agreement may subsequently be  2437
amended by the parties that have entered into that agreement to  2438
authorize such amounts to instead be used for any costs related  2439
to the promotion or support of tourism or tourism-related  2440
programs.  2441
       (b) If the county in which the tax is levied has an  2442
association of mayors and city managers, the approval of that  2443
association of an agreement described in division (Q)(6)(a) of  2444
S. B. No. 104  Page 84
As Introduced
this section shall be considered to be the approval of the  2445
majority of the mayors of the other municipal corporations for  2446
purposes of that division.  2447
       (7) Each year, the auditor of state shall conduct an audit  2448
of the uses of any amounts collected from taxes levied,  2449
extended, or deposited under division (Q) of this section and  2450
shall prepare a report of the auditor of state's findings. The  2451
auditor of state shall submit the report to the legislative  2452
authority of the county that has levied, extended, or deposited  2453
the tax, the speaker of the house of representatives, the  2454
president of the senate, and the leaders of the minority parties  2455
of the house of representatives and the senate.  2456
       (R)(1) As used in division (R) of this section:  2457
       (a) "Convention facilities authority" has the same meaning  2458
as in section 351.01 of the Revised Code.  2459
       (b) "Convention center" has the same meaning as in section  2460
307.695 of the Revised Code.  2461
       (2) Notwithstanding any contrary provision of division (N)  2462
of this section, the legislative authority of a county with a  2463
population of one million two hundred thousand or more according  2464
to the most recent federal decennial census or the most recent  2465
annual population estimate published or released by the United  2466
States census bureau at the time the resolution is adopted  2467
placing the levy on the ballot, that has levied a tax under  2468
division (N) of this section may, by resolution adopted by a  2469
majority of the members of the legislative authority, provide  2470
for the extension of such levy and may provide that the proceeds  2471
of that tax, to the extent that the proceeds are no longer  2472
needed for their original purpose as defined by a cooperative  2473
S. B. No. 104  Page 85
As Introduced
agreement entered into under section 307.671 of the Revised Code  2474
and after deducting the real and actual costs of administering  2475
the tax, shall be used for paying the direct and indirect costs  2476
of constructing, improving, expanding, equipping, financing, or  2477
operating a convention center. The resolution shall provide for  2478
the extension of the tax at a rate not to exceed the rate  2479
specified in division (N) of this section for a period of time  2480
determined by the legislative authority of the county, but not  2481
to exceed an additional forty years.  2482
       (3) The legislative authority of a county with a  2483
population of one million two hundred thousand or more that has  2484
levied a tax under division (A) of this section may, by  2485
resolution adopted by a majority of the members of the  2486
legislative authority, increase the rate of the tax levied by  2487
such county under division (A) of this section to a rate not to  2488
exceed five per cent on transactions by which lodging by a hotel  2489
or short-term rental property is or is to be furnished to  2490
transient guests. Notwithstanding any contrary provision of  2491
division (A) of this section, the resolution shall provide that  2492
all collections resulting from the rate levied in excess of  2493
three per cent, after deducting the real and actual costs of  2494
administering the tax, shall be used for paying the direct and  2495
indirect costs of constructing, improving, expanding, equipping,  2496
financing, or operating a convention center.  2497
       (4) The legislative authority of a county with a  2498
population of one million two hundred thousand or more that has  2499
levied a tax under division (A) of this section may, by  2500
resolution adopted on or before July 1, 2008, by a majority of  2501
the members of the legislative authority, provide that all or a  2502
portion of the proceeds of the tax levied under division (A) of  2503
this section, after deducting the real and actual costs of  2504
S. B. No. 104  Page 86
As Introduced
administering the tax and the amounts required to be returned to  2505
townships and municipal corporations with respect to the first  2506
three per cent levied under division (A) of this section, shall  2507
be used to satisfy any pledges made in connection with an  2508
agreement entered into under section 307.695 of the Revised Code  2509
or shall otherwise be used for paying the direct and indirect  2510
costs of constructing, improving, expanding, equipping,  2511
financing, or operating a convention center.  2512
       (5) Any amount collected from a tax levied or extended  2513
under division (R) of this section may be contributed to a  2514
convention facilities authority created before July 1, 2005, but  2515
no amount collected from a tax levied or extended under division  2516
(R) of this section may be contributed to a convention  2517
facilities authority, corporation, or other entity created after  2518
July 1, 2005, unless the mayor of the municipal corporation in  2519
which the convention center is to be operated by that convention  2520
facilities authority, corporation, or other entity has consented  2521
to the creation of that convention facilities authority,  2522
corporation, or entity.  2523
       (S) As used in division (S) of this section, "soldiers'  2524
memorial" means a memorial constructed and funded under Chapter  2525
345. of the Revised Code.  2526
       The board of county commissioners of a county with a  2527
population between one hundred three thousand and one hundred  2528
seven thousand according to the most recent federal decennial  2529
census, by resolution adopted by a majority of the members of  2530
the board within six months after September 15, 2014, may levy a  2531
tax not to exceed three per cent on transactions by which a  2532
hotel or short-term rental property is or is to be furnished to  2533
transient guests. The purpose of the tax shall be to pay the  2534
S. B. No. 104  Page 87
As Introduced
costs of expanding, maintaining, or operating a soldiers'  2535
memorial and the costs of administering the tax. All revenue  2536
arising from the tax shall be credited to one or more special  2537
funds in the county treasury and shall be spent solely for the  2538
purposes of paying those costs.  2539
       The board of county commissioners shall adopt all rules  2540
necessary to provide for the administration of the tax subject  2541
to the same limitations on imposing penalty or interest under  2542
division (A) of this section.  2543
       (T) As used in division (T) of this section:  2544
       (1) "Eligible county" means a county in which a county  2545
agricultural society or independent agricultural society is  2546
organized under section 1711.01 or 1711.02 of the Revised Code,  2547
provided the agricultural society owns a facility or site in the  2548
county at which an annual harness horse race is conducted where  2549
one-day attendance equals at least forty thousand attendees.  2550
       (2) "Permanent improvements," "debt charges," and  2551
"financing costs" have the same meanings as in section 133.01 of  2552
the Revised Code.  2553
       (3) "Costs of permanent improvements" include all costs  2554
allowed in section 133.15 of the Revised Code.  2555
       A board of county commissioners of an eligible county, by  2556
resolution adopted by a majority of the members of the board,  2557
may levy an excise tax at the rate of up to three per cent on  2558
transactions by which lodging by a hotel or short-term rental  2559
property is or is to be furnished to transient guests for the  2560
purpose of paying the costs of permanent improvements at sites  2561
at which one or more agricultural societies conduct fairs or  2562
exhibits, including paying financing costs and debt charges on  2563
S. B. No. 104  Page 88
As Introduced
bonds, or notes in anticipation of bonds, paying the costs of  2564
maintaining or operating such permanent improvements, and paying  2565
the costs of administering the tax.  2566
       A resolution adopted under division (T) of this section,  2567
other than a resolution that only extends the period of time for  2568
which the tax is levied, shall direct the board of elections to  2569
submit the question of the proposed lodging tax to the electors  2570
of the county at a special election held on the date specified  2571
by the board in the resolution, provided that the election  2572
occurs not less than ninety days after a certified copy of the  2573
resolution is transmitted to the board of elections. A  2574
resolution submitted to the electors under division (T) of this  2575
section shall not go into effect unless it is approved by a  2576
majority of those voting upon it. The resolution takes effect on  2577
the date the board of county commissioners receives notification  2578
from the board of elections of an affirmative vote.  2579
       The tax shall remain in effect for the period specified in  2580
the resolution, not to exceed five years, and may be extended  2581
for an additional period of years that is at least the number of  2582
years required for payment of the debt charges on bonds or notes  2583
in anticipation of bonds authorized under this division but not  2584
in excess of fifteen years thereafter by a resolution adopted by  2585
a majority of the members of the board. A resolution extending  2586
the period of time for which the tax is in effect is not subject  2587
to approval of the electors of the county, but is subject to  2588
referendum under sections 305.31 to 305.99 of the Revised Code.  2589
All revenue arising from the tax shall be credited to one or  2590
more special funds in the county treasury and shall be spent  2591
solely for the purposes of paying the costs of such permanent  2592
improvements, including paying financing costs and debt charges  2593
on bonds, or notes in anticipation of bonds, and maintaining or  2594
S. B. No. 104  Page 89
As Introduced
operating the improvements. Revenue allocated for the use of a  2595
county agricultural society may be credited to the county  2596
agricultural society fund created in section 1711.16 of the  2597
Revised Code upon appropriation by the board. If revenue is  2598
credited to that fund, it shall be expended only as provided in  2599
that section.  2600
       The board of county commissioners shall adopt all rules  2601
necessary to provide for the administration of the tax. The  2602
rules may prescribe the time for payment of the tax, and may  2603
provide for the imposition or penalty or interest, or both, for  2604
late payments, provided that the penalty does not exceed ten per  2605
cent of the amount of tax due, and the rate at which interest  2606
accrues does not exceed the rate per annum prescribed in section  2607
5703.47 of the Revised Code.  2608
       The board of county commissioners may issue bonds, or  2609
notes in anticipation thereof, pursuant to Chapter 133. of the  2610
Revised Code, for the purpose of paying the costs of permanent  2611
improvements as authorized in this division and pledge the  2612
revenue arising from the tax for that purpose. The board of  2613
county commissioners may pledge or contribute the revenue  2614
arising from the tax levied under this division to a port  2615
authority created under Chapter 4582. of the Revised Code, and  2616
the port authority may issue bonds, or notes in anticipation  2617
thereof, pursuant to that chapter, for the purpose of paying the  2618
costs of permanent improvements as authorized in this division.  2619
       (U) As used in division (U) of this section, "eligible  2620
county" means a county in which a tax is levied under division  2621
(A) of this section at a rate of three per cent and whose  2622
territory includes a part of Lake Erie the shoreline of which  2623
represents at least fifty per cent of the linear length of the  2624
S. B. No. 104  Page 90
As Introduced
county's border with other counties of this state.  2625
       The board of county commissioners of an eligible county  2626
that has entered into an agreement with a port authority in the  2627
county under section 4582.56 of the Revised Code may levy an  2628
additional lodging tax on transactions by which lodging by a  2629
hotel or short-term rental property is or is to be furnished to  2630
transient guests for the purpose of financing lakeshore  2631
improvement projects constructed or financed by the port  2632
authority under that section. The resolution levying the tax  2633
shall specify the purpose of the tax, the rate of the tax, which  2634
shall not exceed two per cent, and the number of years the tax  2635
will be levied or that it will be levied for a continuing period  2636
of time. The tax shall be administered pursuant to the  2637
regulations adopted by the board under division (A) of this  2638
section, except that all the proceeds of the tax levied under  2639
this division shall be pledged to the payment of the costs,  2640
including debt charges, of lakeshore improvements undertaken by  2641
a port authority pursuant to the agreement under section 4582.56  2642
of the Revised Code. No revenue from the tax may be used to pay  2643
the current expenses of the port authority.  2644
       A resolution levying a tax under division (U) of this  2645
section is subject to referendum under sections 305.31 to 305.41  2646
and 305.99 of the Revised Code.  2647
       (V)(1) As used in division (V) of this section:  2648
       (a) "Tourism development district" means a district  2649
designated by a municipal corporation under section 715.014 of  2650
the Revised Code or by a township under section 503.56 of the  2651
Revised Code.  2652
       (b) "Lodging tax" means a tax levied pursuant to this  2653
S. B. No. 104  Page 91
As Introduced
section or section 5739.08 of the Revised Code.  2654
       (c) "Tourism development district lodging tax proceeds"  2655
means all proceeds of a lodging tax derived from transactions by  2656
which lodging by a hotel or short-term rental property located  2657
in a tourism development district is or is to be provided to  2658
transient guests.  2659
       (d) "Eligible county" has the same meaning as in section  2660
307.678 of the Revised Code.  2661
       (2)(a) Notwithstanding division (A) of this section, the  2662
board of county commissioners, board of township trustees, or  2663
legislative authority of any county, township, or municipal  2664
corporation that levies a lodging tax on September 29, 2017, and  2665
in which any part of a tourism development district is located  2666
on or after that date shall amend the ordinance or resolution  2667
levying the tax to require either of the following:  2668
       (i) In the case of a tax levied by a county, that all  2669
tourism development district lodging tax proceeds from that tax  2670
be used exclusively to foster and develop tourism in the tourism  2671
development district;  2672
       (ii) In the case of a tax levied by a township or  2673
municipal corporation, that all tourism development district  2674
lodging tax proceeds from that tax be used exclusively to foster  2675
and develop tourism in the tourism development district.  2676
       (b) Notwithstanding division (A) of this section, any  2677
ordinance or resolution levying a lodging tax adopted on or  2678
after September 29, 2017, by a county, township, or municipal  2679
corporation in which any part of a tourism development district  2680
is located on or after that date shall require that all tourism  2681
development district lodging tax proceeds from that tax be used  2682
S. B. No. 104  Page 92
As Introduced
exclusively to foster and develop tourism in the tourism  2683
development district.  2684
       (c) A county shall not use any of the proceeds described  2685
in division (V)(2)(a)(i) or (V)(2)(b) of this section unless the  2686
convention and visitors' bureau operating within the county  2687
approves the manner in which such proceeds are used to foster  2688
and develop tourism in the tourism development district. Upon  2689
obtaining such approval, the county may pay such proceeds to the  2690
bureau to use for the agreed-upon purpose.  2691
       A municipal corporation or township shall not use any of  2692
the proceeds described in division (V)(2)(a)(ii) or (V)(2)(b) of  2693
this section unless the convention and visitors' bureau  2694
operating within the municipal corporation or township approves  2695
the manner in which such proceeds are used to foster and develop  2696
tourism in the tourism development district. Upon obtaining such  2697
approval, the municipal corporation or township may pay such  2698
proceeds to the bureau to use for the agreed-upon purpose.  2699
       (3)(a) Notwithstanding division (A) of this section, the  2700
board of county commissioners of an eligible county that levies  2701
a lodging tax on March 23, 2018, may amend the resolution  2702
levying that tax to require that all or a portion of the  2703
proceeds of that tax otherwise required to be spent solely to  2704
make contributions to the convention and visitors' bureau  2705
operating within the county shall be used to foster and develop  2706
tourism in a tourism development district.  2707
       (b) Notwithstanding division (A) of this section, the  2708
board of county commissioners of an eligible county that adopts  2709
a resolution levying a lodging tax on or after March 23, 2018,  2710
may require that all or a portion of the proceeds of that tax  2711
otherwise required to be spent solely to make contributions to  2712
S. B. No. 104  Page 93
As Introduced
the convention and visitors' bureau operating within the county  2713
pursuant to division (A) of this section shall be used to foster  2714
and develop tourism in a tourism development district.  2715
       (c) A county shall not use any of the proceeds in the  2716
manner described in division (V)(3)(a) or (b) of this section  2717
unless the convention and visitors' bureau operating within the  2718
county approves the manner in which such proceeds are used to  2719
foster and develop tourism in the tourism development district.  2720
Upon obtaining such approval, the county may pay such proceeds  2721
to the bureau to use for the agreed upon purpose.  2722
       (W)(1) As used in division (W) of this section:  2723
       (a) "Eligible county" means a county with a population  2724
greater than three hundred thousand and less than three hundred  2725
fifty thousand that levies a tax under division (A) of this  2726
section at a rate of three per cent;  2727
       (b) "Cost" and "facility" have the same meanings as in  2728
section 351.01 of the Revised Code.  2729
       (2) A board of county commissioners of an eligible county,  2730
by resolution adopted by a majority of the members of the board,  2731
may levy an excise tax at the rate of up to three per cent on  2732
transactions by which lodging by a hotel or short-term rental  2733
property is or is to be furnished to transient guests. All of  2734
the revenue from the tax shall be used to pay the costs of  2735
administering the tax or pledged and contributed to a convention  2736
facilities authority established by the board of county  2737
commissioners under Chapter 351. of the Revised Code and used by  2738
the authority to pay the cost of constructing a facility in the  2739
county, including paying bonds, or notes issued in anticipation  2740
of bonds, as provided by that chapter, or paying the expenses of  2741
S. B. No. 104  Page 94
As Introduced
maintaining, operating, or promoting such a facility. No portion  2742
of the revenue arising from the tax need be returned to  2743
municipal corporations or townships as required for taxes levied  2744
under division (A) of this section.  2745
       (3) A resolution adopted under division (W) of this  2746
section shall direct the board of elections to submit the  2747
question of the proposed lodging tax to the electors of the  2748
county at a special election held on the date specified by the  2749
board in the resolution, provided that the election occurs not  2750
less than ninety days after a certified copy of the resolution  2751
is transmitted to the board of elections. A resolution submitted  2752
to the electors under division (W) of this section shall not go  2753
into effect unless it is approved by a majority of those voting  2754
upon it. The resolution takes effect on the date the board of  2755
county commissioners receives notification from the board of  2756
elections of an affirmative vote.  2757
       (4) Once the tax is approved by the electors of the county  2758
pursuant to division (W)(3) of this section, it shall not be  2759
subject to diminution by initiative or referendum or by law  2760
while any bonds, or notes in anticipation of bonds, issued by  2761
the authority under Chapter 351. of the Revised Code to which  2762
the revenue is pledged, remain outstanding in accordance with  2763
their terms, unless provision is made by law or by the board of  2764
county commissioners for an adequate substitute therefore that  2765
is satisfactory to the trustee if a trust agreement secures the  2766
bonds.  2767
       (5) The tax authorized by division (W) of this section  2768
shall be in addition to any other tax that is levied pursuant to  2769
this section.  2770
       (X)(1) As used in division (X) of this section:  2771
S. B. No. 104  Page 95
As Introduced
       (a) "Convention facilities authority," "cost," and  2772
"facility" have the same meanings as in section 351.01 of the  2773
Revised Code, except that "facility" does not include a "sports  2774
facility," as that term is defined in that section, other than a  2775
facility intended to house a major league soccer team.  2776
       (b) "Eligible county" means a county with a population  2777
greater than eight hundred thousand but less than one million  2778
that levies a tax under division (A) of this section.  2779
       (c) "Port authority" means a port authority created under  2780
Chapter 4582. of the Revised Code.  2781
       (2) A board of county commissioners or the legislative  2782
authority of an eligible county may, by resolution adopted by a  2783
majority of the members of the board or legislative authority,  2784
levy an excise tax at a rate not to exceed one per cent on  2785
transactions by which lodging by a hotel or short-term rental  2786
property is or is to be furnished to transient guests. All  2787
revenue arising from the tax shall be used to pay the costs of  2788
administering the tax or pledged and contributed to the  2789
convention and visitors' bureau operating within the applicable  2790
eligible county, a convention facilities authority within the  2791
applicable eligible county, or a port authority and used by the  2792
convention and visitors' bureau, the convention facilities  2793
authority, or the port authority to pay the cost of acquiring,  2794
constructing, renovating, expanding, maintaining, or operating  2795
one or more facilities in the county, including paying bonds, or  2796
notes issued in anticipation of bonds, or paying the expenses of  2797
maintaining, operating, or promoting one or more facilities. No  2798
portion of the revenue arising from the tax need be returned to  2799
municipal corporations or townships as required for taxes levied  2800
under division (A) of this section.  2801
S. B. No. 104  Page 96
As Introduced
       (3) The tax authorized by division (X) of this section  2802
shall be in addition to any other tax that is levied pursuant to  2803
this section.  2804
       (4) Any board of county commissioners of an eligible  2805
county that, pursuant to division (D)(2) of this section, has  2806
amended a resolution levying the tax authorized by division (A)  2807
of this section may further amend the resolution to provide that  2808
all or a portion of the revenue referred to in division (D)(2)  2809
(b) of this section and division (A) of this section may be  2810
pledged and contributed to pay the costs of acquiring,  2811
constructing, renovating, expanding, maintaining, or operating  2812
one or more facilities in the county, including paying bonds, or  2813
notes issued in anticipation of bonds, or paying the expenses of  2814
maintaining, operating, or promoting one or more facilities.  2815
       Sec. 5739.091. (A) For the purposes of a tax levied by a  2816
county, township, or municipal corporation under section 5739.08  2817
or 5739.09 of the Revised Code, a As used in this section:  2818
       (1) "Legislative authority" means a board of county  2819
commissioners, board of township trustees, or the legislative  2820
authority of a municipal corporation may adopt a resolution or  2821
ordinance at any time specifying that "hotel," as otherwise  2822
defined in section 5739.01 of the Revised Code, includes the  2823
following:  2824
       (1) Establishments in which fewer than five rooms are used  2825
for the accommodation of guests;  2826
       (2) Establishments at which rooms are used for the  2827
accommodation of guests regardless of whether each room is  2828
accessible through its own keyed entry or several rooms are  2829
accessible through the same keyed entry; and, in determining the  2830
S. B. No. 104  Page 97
As Introduced
number of rooms, all rooms are included regardless of the number  2831
of structures in which the rooms are situated or the number of  2832
parcels of land on which the structures are located if the  2833
structures are under the same ownership and the structures are  2834
not identified in advertisements of the accommodations as  2835
distinct establishments. For the purposes of division (A)(2) of  2836
this section, two or more structures are under the same  2837
ownership if they are owned by the same person, or if they are  2838
owned by two or more persons the majority of the ownership  2839
interests of which are owned by the same person.  2840
       (B) The resolution or ordinance may apply to a tax imposed  2841
pursuant to section 5739.08 or 5739.09 of the Revised Code prior  2842
to the adoption of the resolution or ordinance if the resolution  2843
or ordinance so states, but the tax shall not apply to  2844
transactions by which lodging by such an establishment is  2845
provided to transient guests prior to the adoption of the  2846
resolution or ordinance., the board of directors of a convention  2847
facilities authority, or the board of directors of a lake  2848
facilities authority.  2849
       (2) "Existing lodging tax" means a tax levied under  2850
section 351.021, 353.06, 5739.08, or 5739.09 of the Revised Code  2851
and in effect on the day before the first day of the first month  2852
beginning thirty days after the effective date of this  2853
amendment.  2854
       (B) A legislative authority shall not levy an existing  2855
lodging tax on or after the first day of the first month  2856
beginning thirty days after the effective date of this amendment  2857
unless the legislative authority amends the resolution or  2858
ordinance levying the tax to comply with the enactment of  2859
division (C) of this section and the amendment of sections  2860
S. B. No. 104  Page 98
As Introduced
351.01, 351.021, 353.06, 5739.08, and 5739.09 of the Revised  2861
Code by this act. That amendment to such a resolution or  2862
ordinance is not subject to a referendum, as prescribed by  2863
sections 305.31 to 305.41 of the Revised Code, and shall take  2864
effect without elector approval, notwithstanding the terms and  2865
requirements applicable to the adoption of the resolution or  2866
ordinance levying the existing lodging tax.  2867
       (C) A legislative authority shall require the operator of  2868
a short-term rental platform to collect and remit the tax levied  2869
under section 351.021, 353.06, 5739.08, or 5739.09 of the  2870
Revised Code on all transactions by which lodging by a hotel or  2871
short-term rental property is or is to be furnished to transient  2872
guests through use of the platform.  2873
       Sec. 5741.01. As used in this chapter:  2874
       (A) "Person" includes individuals, receivers, assignees,  2875
trustees in bankruptcy, estates, firms, partnerships,  2876
associations, joint-stock companies, joint ventures, clubs,  2877
societies, corporations, business trusts, governments, and  2878
combinations of individuals of any form.  2879
       (B) "Storage" means and includes any keeping or retention  2880
in this state for use or other consumption in this state.  2881
       (C) "Use" means and includes the exercise of any right or  2882
power incidental to the ownership of the thing used. A thing is  2883
also "used" in this state if its consumer gives or otherwise  2884
distributes it, without charge, to recipients in this state.  2885
       (D) "Purchase" means acquired or received for a  2886
consideration, whether such acquisition or receipt was effected  2887
by a transfer of title, or of possession, or of both, or a  2888
license to use or consume; whether such transfer was absolute or  2889
S. B. No. 104  Page 99
As Introduced
conditional, and by whatever means the transfer was effected;  2890
and whether the consideration was money, credit, barter, or  2891
exchange. Purchase includes production, even though the article  2892
produced was used, stored, or consumed by the producer. The  2893
transfer of copyrighted motion picture films for exhibition  2894
purposes is not a purchase, except such films as are used solely  2895
for advertising purposes.  2896
       (E) "Seller" means the person from whom a purchase is  2897
made, and includes every person engaged in this state or  2898
elsewhere in the business of selling tangible personal property  2899
or providing a service for storage, use, or other consumption or  2900
benefit in this state; and when, in the opinion of the tax  2901
commissioner, it is necessary for the efficient administration  2902
of this chapter, to regard any salesperson, representative,  2903
peddler, or canvasser as the agent of a dealer, distributor,  2904
supervisor, or employer under whom the person operates, or from  2905
whom the person obtains tangible personal property, sold by the  2906
person for storage, use, or other consumption in this state,  2907
irrespective of whether or not the person is making such sales  2908
on the person's own behalf, or on behalf of such dealer,  2909
distributor, supervisor, or employer, the commissioner may  2910
regard the person as such agent, and may regard such dealer,  2911
distributor, supervisor, or employer as the seller.  2912
       Except as provided in sections 5741.071 and 5747.072 of  2913
the Revised Code, a marketplace facilitator shall be treated as  2914
the "seller" with respect to all sales facilitated by the  2915
marketplace facilitator on behalf of one or more marketplace  2916
sellers on and after the first day of the first month that  2917
begins at least thirty days after the marketplace facilitator  2918
first has substantial nexus with this state. Otherwise, "seller"  2919
does not include any person to the extent the person provides a  2920
S. B. No. 104  Page 100
As Introduced
communications medium, such as, but not limited to, newspapers,  2921
magazines, radio, television, or cable television, by means of  2922
which sellers solicit purchases of their goods or services.  2923
        (F) "Consumer" means any person who has purchased tangible  2924
personal property or has been provided a service for storage,  2925
use, or other consumption or benefit in this state. "Consumer"  2926
does not include a person who receives, without charge, tangible  2927
personal property or a service.  2928
        A person who performs a facility management or similar  2929
service contract for a contractee is a consumer of all tangible  2930
personal property and services purchased for use in connection  2931
with the performance of such contract, regardless of whether  2932
title to any such property vests in the contractee. The purchase  2933
of such property and services is not subject to the exception  2934
for resale under division (E) of section 5739.01 of the Revised  2935
Code.  2936
        (G)(1) "Price," except as provided in divisions (G)(2) to  2937
(6) of this section, has the same meaning as in division (H)(1)  2938
of section 5739.01 of the Revised Code.  2939
        (2) In the case of watercraft, outboard motors, or new  2940
motor vehicles, "price" has the same meaning as in divisions (H)  2941
(2) and (3) of section 5739.01 of the Revised Code.  2942
        (3) In the case of a nonresident business consumer that  2943
purchases and uses tangible personal property outside this state  2944
and subsequently temporarily stores, uses, or otherwise consumes  2945
such tangible personal property in the conduct of business in  2946
this state, the consumer or the tax commissioner may determine  2947
the price based on the value of the temporary storage, use, or  2948
other consumption, in lieu of determining the price pursuant to  2949
S. B. No. 104  Page 101
As Introduced
division (G)(1) of this section. A price determination made by  2950
the consumer is subject to review and redetermination by the  2951
commissioner.  2952
       (4) In the case of tangible personal property held in this  2953
state as inventory for sale or lease, and that is temporarily  2954
stored, used, or otherwise consumed in a taxable manner, the  2955
price is the value of the temporary use. A price determination  2956
made by the consumer is subject to review and redetermination by  2957
the commissioner.  2958
       (5) In the case of tangible personal property originally  2959
purchased and used by the consumer outside this state, and that  2960
becomes permanently stored, used, or otherwise consumed in this  2961
state more than six months after its acquisition by the  2962
consumer, the consumer or the commissioner may determine the  2963
price based on the current value of such tangible personal  2964
property, in lieu of determining the price pursuant to division  2965
(G)(1) of this section. A price determination made by the  2966
consumer is subject to review and redetermination by the  2967
commissioner.  2968
       (6) If a consumer produces tangible personal property for  2969
sale and removes that property from inventory for the consumer's  2970
own use, the price is the produced cost of that tangible  2971
personal property.  2972
       (H) "Nexus with this state" means that the seller engages  2973
in continuous and widespread solicitation of purchases from  2974
residents of this state or otherwise purposefully directs its  2975
business activities at residents of this state.  2976
       (I)(1) "Substantial nexus with this state" means that the  2977
seller has sufficient contact with this state, in accordance  2978
S. B. No. 104  Page 102
As Introduced
with Section 8 of Article I of the Constitution of the United  2979
States, to allow the state to require the seller to collect and  2980
remit use tax on sales of tangible personal property or services  2981
made to consumers in this state.  2982
       (2) "Substantial nexus with this state" is presumed to  2983
exist when the seller does any of the following:  2984
       (a) Uses an office, distribution facility, warehouse,  2985
storage facility, or similar place of business within this  2986
state, whether operated by the seller or any other person, other  2987
than a common carrier acting in its capacity as a common  2988
carrier.  2989
       (b) Regularly uses employees, agents, representatives,  2990
solicitors, installers, repairers, salespersons, or other  2991
persons in this state for the purpose of conducting the business  2992
of the seller or either to engage in a business with the same or  2993
a similar industry classification as the seller selling a  2994
similar product or line of products as the seller, or to use  2995
trademarks, service marks, or trade names in this state that are  2996
the same or substantially similar to those used by the seller.  2997
       (c) Uses any person, other than a common carrier acting in  2998
its capacity as a common carrier, in this state for any of the  2999
following purposes:  3000
       (i) Receiving or processing orders of the seller's goods  3001
or services;  3002
       (ii) Using that person's employees or facilities in this  3003
state to advertise, promote, or facilitate sales by the seller  3004
to customers;  3005
       (iii) Delivering, installing, assembling, or performing  3006
maintenance services for the seller's customers;  3007
S. B. No. 104  Page 103
As Introduced
       (iv) Facilitating the seller's delivery of tangible  3008
personal property to customers in this state by allowing the  3009
seller's customers to pick up property sold by the seller at an  3010
office, distribution facility, warehouse, storage facility, or  3011
similar place of business.  3012
       (d) Makes regular deliveries of tangible personal property  3013
into this state by means other than common carrier.  3014
       (e) Has an affiliated person that has substantial nexus  3015
with this state.  3016
       (f) Owns tangible personal property that is rented or  3017
leased to a consumer in this state, or offers tangible personal  3018
property, on approval, to consumers in this state.  3019
       (g) Has gross receipts in excess of one hundred thousand  3020
dollars in the current or preceding calendar year from the sale  3021
of tangible personal property for storage, use, or consumption  3022
in this state or from providing services the benefit of which is  3023
realized in this state.  3024
       (h) Engages, in the current or preceding calendar year, in  3025
two hundred or more separate transactions selling tangible  3026
personal property for storage, use, or consumption in this state  3027
or providing services the benefit of which is realized in this  3028
state.  3029
       (i) Is a short-term rental platform that furnishes lodging  3030
in short-term rental properties located in this state to  3031
transient guests.  3032
       (3) A seller presumed to have substantial nexus with this  3033
state under divisions (I)(2)(a) to (f), (g), and (h) of this  3034
section may rebut that presumption by demonstrating that  3035
activities described in any of those divisions that are  3036
S. B. No. 104  Page 104
As Introduced
conducted by a person in this state on the seller's behalf are  3037
not significantly associated with the seller's ability to  3038
establish or maintain a market in this state for the seller's  3039
sales.  3040
       (4) A marketplace facilitator is presumed to have  3041
substantial nexus with this state if either of the following  3042
apply in the current or preceding calendar year:  3043
       (a) The aggregate gross receipts derived from sales of  3044
tangible personal property for storage, use, or consumption in  3045
this state or services the benefit of which is realized in this  3046
state, including sales made by the marketplace facilitator on  3047
its own behalf and sales facilitated by the marketplace  3048
facilitator on behalf of one or more marketplace sellers, exceed  3049
one hundred thousand dollars;  3050
       (b) The marketplace facilitator engages in on its own  3051
behalf, or facilitates on behalf of one or more marketplace  3052
sellers, two hundred or more separate transactions selling  3053
tangible personal property for storage, use, or consumption in  3054
this state or services the benefit of which is realized in this  3055
state.  3056
       (5) A seller that does not have substantial nexus with  3057
this state, and any affiliated person of the seller, before  3058
selling or leasing tangible personal property or services to a  3059
state agency, shall register with the tax commissioner in the  3060
same manner as a seller described in division (A)(1) of section  3061
5741.17 of the Revised Code.  3062
       (6) As used in division (I) of this section:  3063
       (a) "Affiliated person" means any person that is a member  3064
of the same controlled group of corporations as the seller or  3065
S. B. No. 104  Page 105
As Introduced
any other person that, notwithstanding the form of organization,  3066
bears the same ownership relationship to the seller as a  3067
corporation that is a member of the same controlled group of  3068
corporations.  3069
       (b) "Controlled group of corporations" has the same  3070
meaning as in section 1563(a) of the Internal Revenue Code.  3071
       (c) "State agency" has the same meaning as in section 1.60  3072
of the Revised Code.  3073
       (J) "Fiscal officer" means, with respect to a regional  3074
transit authority, the secretary-treasurer thereof, and with  3075
respect to a county which is a transit authority, the fiscal  3076
officer of the county transit board appointed pursuant to  3077
section 306.03 of the Revised Code or, if the board of county  3078
commissioners operates the county transit system, the county  3079
auditor.  3080
       (K) "Territory of the transit authority" means all of the  3081
area included within the territorial boundaries of a transit  3082
authority as they from time to time exist. Such territorial  3083
boundaries must at all times include all the area of a single  3084
county or all the area of the most populous county which is a  3085
part of such transit authority. County population shall be  3086
measured by the most recent census taken by the United States  3087
census bureau.  3088
       (L) "Transit authority" means a regional transit authority  3089
created pursuant to section 306.31 of the Revised Code or a  3090
county in which a county transit system is created pursuant to  3091
section 306.01 of the Revised Code. For the purposes of this  3092
chapter, a transit authority must extend to at least the entire  3093
area of a single county. A transit authority which includes  3094
S. B. No. 104  Page 106
As Introduced
territory in more than one county must include all the area of  3095
the most populous county which is a part of such transit  3096
authority. County population shall be measured by the most  3097
recent census taken by the United States census bureau.  3098
       (M) "Providing a service" has the same meaning as in  3099
section 5739.01 of the Revised Code.  3100
       (N) "Other consumption" includes receiving the benefits of  3101
a service.  3102
       (O) "Lease" or "rental" has the same meaning as in section  3103
5739.01 of the Revised Code.  3104
       (P) "Certified service provider" has the same meaning as  3105
in section 5740.01 of the Revised Code.  3106
       (Q) "Marketplace facilitator" means a person that owns,  3107
operates, or controls a physical or electronic marketplace  3108
through which retail sales or delivery network services, or  3109
both, are facilitated on behalf of one or more marketplace  3110
sellers, or an affiliate of such a person. "Marketplace  3111
facilitator" does not include a person that provides advertising  3112
services, including tangible personal property or services  3113
listed for sale, if the advertising service platform or forum  3114
does not engage directly or indirectly through one or more  3115
affiliated persons in the activities described in division (T)  3116
(2) of this section.  3117
       (R) "Marketplace seller" means a person on behalf of which  3118
a marketplace facilitator facilitates the sale of tangible  3119
personal property for storage, use, or consumption in this state  3120
or services the benefit of which are realized in this state,  3121
regardless of whether or not the person has a substantial nexus  3122
with this state.  3123
S. B. No. 104  Page 107
As Introduced
       (S) "Electronic marketplace" includes digital distribution  3124
services, digital distribution platforms, online portals,  3125
application stores, computer software applications, in-app  3126
purchase mechanisms, or other digital products.  3127
       (T) A sale is "facilitated" by a marketplace facilitator  3128
on behalf of a marketplace seller if it satisfies divisions (T)  3129
(1), (2), and (3) of this section:  3130
       (1) The marketplace facilitator, directly or indirectly,  3131
does any of the following:  3132
       (a) Lists, makes available, or advertises the tangible  3133
personal property or services that are the subject of the sale  3134
in a physical or electronic marketplace owned, operated, or  3135
controlled by the marketplace facilitator;  3136
       (b) Transmits or otherwise communicates an offer or  3137
acceptance of the sale between the marketplace seller and the  3138
purchaser in a shop, store, booth, catalog, internet site, or  3139
other similar forum;  3140
       (c) Owns, rents, licenses, makes available, or operates  3141
any electronic or physical infrastructure or any property,  3142
process, method, copyright, trademark, or patent that connects  3143
the marketplace seller to the purchaser for the purpose of  3144
making sales;  3145
       (d) Provides the marketplace in which the sale was made or  3146
otherwise facilitates the sale regardless of ownership or  3147
control of the tangible personal property or services that are  3148
the subject of the sale;  3149
       (e) Provides software development or research and  3150
development services directly related to a physical or  3151
electronic marketplace that is involved in one or more of the  3152
S. B. No. 104  Page 108
As Introduced
activities described in division (T)(1) of this section;  3153
       (f) Provides fulfillment or storage services for the  3154
marketplace seller that are related to the tangible personal  3155
property or services that are the subject of the sale;  3156
       (g) Sets the price of the sale on behalf of the  3157
marketplace seller;  3158
       (h) Provides or offers customer service to the marketplace  3159
seller or the marketplace seller's customers, or accepts or  3160
assists with taking orders, returns, or exchanges of the  3161
tangible personal property or services that are the subject of  3162
the sale;  3163
       (i) Brands or otherwise identifies the sale as a sale of  3164
the marketplace facilitator.  3165
       (2) The marketplace facilitator, directly or indirectly,  3166
does any of the following:  3167
       (a) Collects the price of the tangible personal property  3168
or services sold to the consumer;  3169
       (b) Provides payment processing services for the sale;  3170
       (c) Collects payment in connection with the sale from the  3171
consumer through terms and conditions, agreements, or  3172
arrangements with a third party, and transmits that payment to  3173
the marketplace seller, regardless of whether the person  3174
collecting and transmitting such payment receives compensation  3175
or other consideration in exchange for the service;  3176
       (d) Provides virtual currency that consumers are allowed  3177
or required to use to purchase the tangible personal property or  3178
services that are the subject of the sale.  3179
S. B. No. 104  Page 109
As Introduced
       (3) The subject of the sale is tangible personal property  3180
or services other than lodging by a hotel that is or is to be  3181
furnished to transient guests.  3182
       (U) "Delivery network company," "delivery network  3183
services," and "local merchant" have the same meanings as in  3184
section 5739.01 of the Revised Code.  3185
       (V) "Short-term rental platform," "short-term rental  3186
property," and "transient guest" have the same meanings as in  3187
section 5739.01 of the Revised Code.  3188
       Section 2. That existing sections 351.01, 351.021, 353.06,  3189
4735.11, 5739.01, 5739.08, 5739.09, 5739.091, and 5741.01 of the  3190
Revised Code are hereby repealed.  3191
       Section 3. The amendment or enactment by this act of  3192
division (C) of section 5739.091 and sections 351.01, 351.021,  3193
353.06, 5739.08, and 5739.09 of the Revised Code applies on and  3194
after the first day of the first month beginning thirty days  3195
after the effective date of this section.  3196
       The amendment by this act of sections 5739.01 and 5741.01  3197
of the Revised Code applies on and after the first day of the  3198
first month beginning thirty or more days after the effective  3199
date of this section.  3200
       Section 4. Section 5739.01 of the Revised Code is  3201
presented in this act as a composite of the section as amended  3202
by both H.B. 315 and S.B. 196 of the 135th General Assembly. The  3203
General Assembly, applying the principle stated in division (B)  3204
of section 1.52 of the Revised Code that amendments are to be  3205
harmonized if reasonably capable of simultaneous operation,  3206
finds that the composite is the resulting version of the section  3207
in effect prior to the effective date of the section as  3208
S. B. No. 104  Page 110
As Introduced
presented in this act.  3209