SB 325

As Introduced
136th General Assembly
   Regular Session  S. B. No. 325
       2025-2026
  Senator Schaffer
  To amend section 5751.01 of the Revised Code to  1
  authorize a commercial activity tax exclusion  2
  for contractor payments to subcontractors.  3
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That section 5751.01 of the Revised Code be  4
amended to read as follows:  5
     Sec. 5751.01. As used in this chapter:  6
     (A) "Person" means, but is not limited to, individuals,  7
combinations of individuals of any form, receivers, assignees,  8
trustees in bankruptcy, firms, companies, joint-stock companies,  9
business trusts, estates, partnerships, limited liability  10
partnerships, limited liability companies, associations, joint  11
ventures, clubs, societies, for-profit corporations, S  12
corporations, qualified subchapter S subsidiaries, qualified  13
subchapter S trusts, trusts, entities that are disregarded for  14
federal income tax purposes, and any other entities.  15
     (B) "Consolidated elected taxpayer" means a group of two  16
or more persons treated as a single taxpayer for purposes of  17
this chapter as the result of an election made under section  18
5751.011 of the Revised Code.  19
     (C) "Combined taxpayer" means a group of two or more  20
S. B. No. 325  Page 2
As Introduced
persons treated as a single taxpayer for purposes of this  21
chapter under section 5751.012 of the Revised Code.  22
       (D) "Taxpayer" means any person, or any group of persons  23
in the case of a consolidated elected taxpayer or combined  24
taxpayer treated as one taxpayer, required to register or pay  25
tax under this chapter. "Taxpayer" does not include excluded  26
persons.  27
       (E) "Excluded person" means any of the following:  28
       (1) Any person with not more than one hundred fifty  29
thousand dollars of taxable gross receipts during the calendar  30
year. Division (E)(1) of this section does not apply to a person  31
that is a member of a consolidated elected taxpayer.  32
       (2) A public utility that paid the excise tax imposed by  33
section 5727.24 or 5727.30 of the Revised Code based on one or  34
more measurement periods that include the entire tax period  35
under this chapter, except in the following circumstances:  36
       (a) A public utility that is a combined company is a  37
taxpayer with regard to the following gross receipts:  38
       (i) Taxable gross receipts directly attributed to a public  39
utility activity, but not directly attributed to an activity  40
that is subject to the excise tax imposed by section 5727.24 or  41
5727.30 of the Revised Code;  42
       (ii) Taxable gross receipts that cannot be directly  43
attributed to any activity, multiplied by a fraction whose  44
numerator is the taxable gross receipts described in division  45
(E)(2)(a)(i) of this section and whose denominator is the total  46
taxable gross receipts that can be directly attributed to any  47
activity;  48
S. B. No. 325  Page 3
As Introduced
       (iii) Except for any differences resulting from the use of  49
an accrual basis method of accounting for purposes of  50
determining gross receipts under this chapter and the use of the  51
cash basis method of accounting for purposes of determining  52
gross receipts under section 5727.24 of the Revised Code, the  53
gross receipts directly attributed to the activity of a natural  54
gas company shall be determined in a manner consistent with  55
division (D) of section 5727.03 of the Revised Code.  56
       (b) A heating company that became exempt from the excise  57
tax imposed by section 5727.30 of the Revised Code on May 1,  58
2023, shall not be an excluded person for tax periods beginning  59
on or after July 1, 2023.  60
       As used in division (E)(2) of this section, "combined  61
company" and "public utility" have the same meanings as in  62
section 5727.01 of the Revised Code.  63
       (3) A financial institution, as defined in section 5726.01  64
of the Revised Code, that paid the tax imposed by section  65
5726.02 of the Revised Code based on one or more taxable years  66
that include the entire tax period under this chapter;  67
       (4) A person directly or indirectly owned by one or more  68
financial institutions, as defined in section 5726.01 of the  69
Revised Code, that paid the tax imposed by section 5726.02 of  70
the Revised Code based on one or more taxable years that include  71
the entire tax period under this chapter.  72
       For the purposes of division (E)(4) of this section, a  73
person owns another person under the following circumstances:  74
       (a) In the case of corporations issuing capital stock, one  75
corporation owns another corporation if it owns fifty per cent  76
or more of the other corporation's capital stock with current  77
S. B. No. 325  Page 4
As Introduced
voting rights;  78
       (b) In the case of a limited liability company, one person  79
owns the company if that person's membership interest, as  80
defined in section 1706.01 of the Revised Code, is fifty per  81
cent or more of the combined membership interests of all persons  82
owning such interests in the company;  83
       (c) In the case of a partnership, trust, or other  84
unincorporated business organization other than a limited  85
liability company, one person owns the organization if, under  86
the articles of organization or other instrument governing the  87
affairs of the organization, that person has a beneficial  88
interest in the organization's profits, surpluses, losses, or  89
distributions of fifty per cent or more of the combined  90
beneficial interests of all persons having such an interest in  91
the organization.  92
       (5) A domestic insurance company or foreign insurance  93
company, as defined in section 5725.01 of the Revised Code, that  94
paid the insurance company premiums tax imposed by section  95
5725.18 or Chapter 5729. of the Revised Code, or an unauthorized  96
insurance company whose gross premiums are subject to tax under  97
section 3905.36 of the Revised Code based on one or more  98
measurement periods that include the entire tax period under  99
this chapter;  100
       (6) A person that solely facilitates or services one or  101
more securitizations of phase-in-recovery property pursuant to a  102
final financing order as those terms are defined in section  103
4928.23 of the Revised Code. For purposes of this division,  104
"securitization" means transferring one or more assets to one or  105
more persons and then issuing securities backed by the right to  106
receive payment from the asset or assets so transferred.  107
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       (7) Except as otherwise provided in this division, a pre-  108
income tax trust as defined in section 5747.01 of the Revised  109
Code and any pass-through entity of which such pre-income tax  110
trust owns or controls, directly, indirectly, or constructively  111
through related interests, more than five per cent of the  112
ownership or equity interests. If the pre-income tax trust has  113
made a qualifying pre-income tax trust election under division  114
(EE) of section 5747.01 of the Revised Code, then the trust and  115
the pass-through entities of which it owns or controls,  116
directly, indirectly, or constructively through related  117
interests, more than five per cent of the ownership or equity  118
interests, shall not be excluded persons for purposes of the tax  119
imposed under section 5751.02 of the Revised Code.  120
       (8) Nonprofit organizations or the state and its agencies,  121
instrumentalities, or political subdivisions.  122
       (F) Except as otherwise provided in divisions (F)(2), (3),  123
and (4) of this section, "gross receipts" means the total amount  124
realized by a person, without deduction for the cost of goods  125
sold or other expenses incurred, that contributes to the  126
production of gross income of the person, including the fair  127
market value of any property and any services received, and any  128
debt transferred or forgiven as consideration.  129
       (1) The following are examples of gross receipts:  130
       (a) Amounts realized from the sale, exchange, or other  131
disposition of the taxpayer's property to or with another;  132
       (b) Amounts realized from the taxpayer's performance of  133
services for another;  134
       (c) Amounts realized from another's use or possession of  135
the taxpayer's property or capital;  136
S. B. No. 325  Page 6
As Introduced
       (d) Any combination of the foregoing amounts.  137
       (2) "Gross receipts" excludes the following amounts:  138
       (a) Interest income except interest on credit sales;  139
       (b) Dividends and distributions from corporations, and  140
distributive or proportionate shares of receipts and income from  141
a pass-through entity as defined under section 5733.04 of the  142
Revised Code;  143
       (c) Receipts from the sale, exchange, or other disposition  144
of an asset described in section 1221 or 1231 of the Internal  145
Revenue Code, without regard to the length of time the person  146
held the asset. Notwithstanding section 1221 of the Internal  147
Revenue Code, receipts from hedging transactions also are  148
excluded to the extent the transactions are entered into  149
primarily to protect a financial position, such as managing the  150
risk of exposure to (i) foreign currency fluctuations that  151
affect assets, liabilities, profits, losses, equity, or  152
investments in foreign operations; (ii) interest rate  153
fluctuations; or (iii) commodity price fluctuations. As used in  154
division (F)(2)(c) of this section, "hedging transaction" has  155
the same meaning as used in section 1221 of the Internal Revenue  156
Code and also includes transactions accorded hedge accounting  157
treatment under statement of financial accounting standards  158
number 133 of the financial accounting standards board. For the  159
purposes of division (F)(2)(c) of this section, the actual  160
transfer of title of real or tangible personal property to  161
another entity is not a hedging transaction.  162
       (d) Proceeds received attributable to the repayment,  163
maturity, or redemption of the principal of a loan, bond, mutual  164
fund, certificate of deposit, or marketable instrument;  165
S. B. No. 325  Page 7
As Introduced
       (e) The principal amount received under a repurchase  166
agreement or on account of any transaction properly  167
characterized as a loan to the person;  168
       (f) Contributions received by a trust, plan, or other  169
arrangement, any of which is described in section 501(a) of the  170
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter  171
1, Subchapter (D) of the Internal Revenue Code applies;  172
       (g) Compensation, whether current or deferred, and whether  173
in cash or in kind, received or to be received by an employee,  174
former employee, or the employee's legal successor for services  175
rendered to or for an employer, including reimbursements  176
received by or for an individual for medical or education  177
expenses, health insurance premiums, or employee expenses, or on  178
account of a dependent care spending account, legal services  179
plan, any cafeteria plan described in section 125 of the  180
Internal Revenue Code, or any similar employee reimbursement;  181
       (h) Proceeds received from the issuance of the taxpayer's  182
own stock, options, warrants, puts, or calls, or from the sale  183
of the taxpayer's treasury stock;  184
       (i) Proceeds received on the account of payments from  185
insurance policies, except those proceeds received for the loss  186
of business revenue;  187
       (j) Gifts or charitable contributions received; membership  188
dues received by trade, professional, homeowners', or  189
condominium associations; payments received for educational  190
courses, meetings, meals, or similar payments to a trade,  191
professional, or other similar association; and fundraising  192
receipts received by any person when any excess receipts are  193
donated or used exclusively for charitable purposes;  194
S. B. No. 325  Page 8
As Introduced
       (k) Damages received as the result of litigation in excess  195
of amounts that, if received without litigation, would be gross  196
receipts;  197
       (l) Property, money, and other amounts received or  198
acquired by an agent on behalf of another in excess of the  199
agent's commission, fee, or other remuneration;  200
       (m) Tax refunds, other tax benefit recoveries, and  201
reimbursements for the tax imposed under this chapter made by  202
entities that are part of the same combined taxpayer or  203
consolidated elected taxpayer group, and reimbursements made by  204
entities that are not members of a combined taxpayer or  205
consolidated elected taxpayer group that are required to be made  206
for economic parity among multiple owners of an entity whose tax  207
obligation under this chapter is required to be reported and  208
paid entirely by one owner, pursuant to the requirements of  209
sections 5751.011 and 5751.012 of the Revised Code;  210
       (n) Pension reversions;  211
       (o) Contributions to capital;  212
       (p) Sales or use taxes collected as a vendor or an out-of-  213
state seller on behalf of the taxing jurisdiction from a  214
consumer or other taxes the taxpayer is required by law to  215
collect directly from a purchaser and remit to a local, state,  216
or federal tax authority;  217
       (q) In the case of receipts from the sale of cigarettes,  218
tobacco products, or vapor products by a wholesale dealer,  219
retail dealer, distributor, manufacturer, vapor distributor, or  220
seller, all as defined in section 5743.01 of the Revised Code,  221
an amount equal to the federal and state excise taxes paid by  222
any person on or for such cigarettes, tobacco products, or vapor  223
S. B. No. 325  Page 9
As Introduced
products under subtitle E of the Internal Revenue Code or  224
Chapter 5743. of the Revised Code;  225
       (r) In the case of receipts from the sale, transfer,  226
exchange, or other disposition of motor fuel as "motor fuel" is  227
defined in section 5736.01 of the Revised Code, an amount equal  228
to the value of the motor fuel, including federal and state  229
motor fuel excise taxes and receipts from billing or invoicing  230
the tax imposed under section 5736.02 of the Revised Code to  231
another person;  232
       (s) In the case of receipts from the sale of beer or  233
intoxicating liquor, as defined in section 4301.01 of the  234
Revised Code, by a person holding a permit issued under Chapter  235
4301. or 4303. of the Revised Code, an amount equal to federal  236
and state excise taxes paid by any person on or for such beer or  237
intoxicating liquor under subtitle E of the Internal Revenue  238
Code or Chapter 4301. or 4305. of the Revised Code;  239
       (t) Receipts realized by a new motor vehicle dealer or  240
used motor vehicle dealer, as defined in section 4517.01 of the  241
Revised Code, from the sale or other transfer of a motor  242
vehicle, as defined in that section, to another motor vehicle  243
dealer for the purpose of resale by the transferee motor vehicle  244
dealer, but only if the sale or other transfer was based upon  245
the transferee's need to meet a specific customer's preference  246
for a motor vehicle;  247
       (u) Receipts from a financial institution described in  248
division (E)(3) of this section for services provided to the  249
financial institution in connection with the issuance,  250
processing, servicing, and management of loans or credit  251
accounts, if such financial institution and the recipient of  252
such receipts have at least fifty per cent of their ownership  253
S. B. No. 325  Page 10
As Introduced
interests owned or controlled, directly or constructively  254
through related interests, by common owners;  255
       (v) Receipts realized from administering anti-neoplastic  256
drugs and other cancer chemotherapy, biologicals, therapeutic  257
agents, and supportive drugs in a physician's office to patients  258
with cancer;  259
       (w) Funds received or used by a mortgage broker that is  260
not a dealer in intangibles, other than fees or other  261
consideration, pursuant to a table-funding mortgage loan or  262
warehouse-lending mortgage loan. Terms used in division (F)(2)  263
(w) of this section have the same meanings as in section 1322.01  264
of the Revised Code, except "mortgage broker" means a person  265
assisting a buyer in obtaining a mortgage loan for a fee or  266
other consideration paid by the buyer or a lender, or a person  267
engaged in table-funding or warehouse-lending mortgage loans  268
that are first lien mortgage loans.  269
       (x) Property, money, and other amounts received by a  270
professional employer organization, as defined in section  271
4125.01 of the Revised Code, or an alternate employer  272
organization, as defined in section 4133.01 of the Revised Code,  273
from a client employer, as defined in either of those sections  274
as applicable, in excess of the administrative fee charged by  275
the professional employer organization or the alternate employer  276
organization to the client employer;  277
       (y) In the case of amounts retained as commissions by a  278
permit holder under Chapter 3769. of the Revised Code, an amount  279
equal to the amounts specified under that chapter that must be  280
paid to or collected by the tax commissioner as a tax and the  281
amounts specified under that chapter to be used as purse money;  282
S. B. No. 325  Page 11
As Introduced
       (z) Qualifying distribution center receipts as determined  283
under section 5751.40 of the Revised Code;  284
       (aa) Receipts of an employer from payroll deductions  285
relating to the reimbursement of the employer for advancing  286
moneys to an unrelated third party on an employee's behalf;  287
       (bb) Cash discounts allowed and taken;  288
       (cc) Returns and allowances;  289
       (dd) Bad debts from receipts on the basis of which the tax  290
imposed by this chapter was paid in a prior quarterly tax  291
payment period. For the purpose of this division, "bad debts"  292
means any debts that have become worthless or uncollectible  293
between the preceding and current quarterly tax payment periods,  294
have been uncollected for at least six months, and that may be  295
claimed as a deduction under section 166 of the Internal Revenue  296
Code and the regulations adopted under that section, or that  297
could be claimed as such if the taxpayer kept its accounts on  298
the accrual basis. "Bad debts" does not include repossessed  299
property, uncollectible amounts on property that remains in the  300
possession of the taxpayer until the full purchase price is  301
paid, or expenses in attempting to collect any account  302
receivable or for any portion of the debt recovered.  303
       (ee) Any amount realized from the sale of an account  304
receivable to the extent the receipts from the underlying  305
transaction giving rise to the account receivable were included  306
in the gross receipts of the taxpayer;  307
       (ff) Any receipts directly attributed to a transfer  308
agreement or to the enterprise transferred under that agreement  309
under section 4313.02 of the Revised Code;  310
       (gg) Qualified uranium receipts as determined under  311
S. B. No. 325  Page 12
As Introduced
section 5751.41 of the Revised Code;  312
       (hh) In the case of amounts collected by a licensed casino  313
operator from casino gaming, amounts in excess of the casino  314
operator's gross casino revenue. In this division, "casino  315
operator" and "casino gaming" have the meanings defined in  316
section 3772.01 of the Revised Code, and "gross casino revenue"  317
has the meaning defined in section 5753.01 of the Revised Code.  318
       (ii) Receipts realized from the sale of agricultural  319
commodities by an agricultural commodity handler, both as  320
defined in section 926.01 of the Revised Code, that is licensed  321
by the director of agriculture to handle agricultural  322
commodities in this state;  323
       (jj) Qualifying integrated supply chain receipts as  324
determined under section 5751.42 of the Revised Code;  325
       (kk) In the case of a railroad company described in  326
division (D)(9) of section 5727.01 of the Revised Code that  327
purchases dyed diesel fuel directly from a supplier as defined  328
by section 5736.01 of the Revised Code, an amount equal to the  329
product of the number of gallons of dyed diesel fuel purchased  330
directly from such a supplier multiplied by the average  331
wholesale price for a gallon of diesel fuel as determined under  332
section 5736.02 of the Revised Code for the period during which  333
the fuel was purchased multiplied by a fraction, the numerator  334
of which equals the rate of tax levied by section 5736.02 of the  335
Revised Code less the rate of tax computed in section 5751.03 of  336
the Revised Code, and the denominator of which equals the rate  337
of tax computed in section 5751.03 of the Revised Code;  338
       (ll) Receipts realized by an out-of-state disaster  339
business from disaster work conducted in this state during a  340
S. B. No. 325  Page 13
As Introduced
disaster response period pursuant to a qualifying solicitation  341
received by the business. Terms used in division (F)(2)(ll) of  342
this section have the same meanings as in section 5703.94 of the  343
Revised Code.  344
        (mm) In the case of receipts from the sale or transfer of  345
a mortgage-backed security or a mortgage loan by a mortgage  346
lender holding a valid certificate of registration issued under  347
Chapter 1322. of the Revised Code or by a person that is a  348
member of the mortgage lender's consolidated elected taxpayer  349
group, an amount equal to the principal balance of the mortgage  350
loan;  351
        (nn) Amounts of excess surplus of the state insurance fund  352
received by the taxpayer from the Ohio bureau of workers'  353
compensation pursuant to rules adopted under section 4123.321 of  354
the Revised Code;  355
        (oo) Except as otherwise provided in division (B) of  356
section 5751.091 of the Revised Code, receipts of a megaproject  357
supplier from sales of tangible personal property directly to a  358
megaproject operator in this state for use at the site of the  359
megaproject operator's megaproject, provided that the sale  360
occurs during the period that the megaproject operator has an  361
agreement with the tax credit authority for the megaproject  362
under division (D) of section 122.17 of the Revised Code that  363
remains in effect and has not expired or been terminated, and  364
provided the megaproject supplier holds a certificate for such  365
megaproject issued under section 5751.052 of the Revised Code  366
for the calendar year in which the sales are made and, if the  367
megaproject supplier meets the requirements described in  368
division (A)(13)(b) of section 122.17 of the Revised Code, the  369
megaproject supplier holds a certificate for such megaproject  370
S. B. No. 325  Page 14
As Introduced
issued under division (D)(11) of section 122.17 of the Revised  371
Code on the first day of that calendar year;  372
       (pp) Receipts from the sale of each new piece of capital  373
equipment that has a cost in excess of one hundred million  374
dollars and that is used at the site of a megaproject that  375
satisfies the criteria described in division (A)(11)(a)(ii) of  376
section 122.17 of the Revised Code, provided that the sale  377
occurs during the period that a megaproject operator has an  378
agreement for that megaproject with the tax credit authority  379
under division (D) of section 122.17 of the Revised Code that  380
remains in effect and has not expired or been terminated;  381
       (qq) In the case of amounts collected by a sports gaming  382
proprietor from sports gaming, amounts in excess of the  383
proprietor's sports gaming receipts. As used in this division,  384
"sports gaming proprietor" has the same meaning as in section  385
3775.01 of the Revised Code and "sports gaming receipts" has the  386
same meaning as in section 5753.01 of the Revised Code.  387
       (rr) Amounts received from any federal, state, or local  388
grant, and amounts of indebtedness discharged or forgiven  389
pursuant to federal, state, or local law, for providing or  390
expanding access to broadband service in this state. As used in  391
this division, "broadband service" has the same meaning as in  392
section 188.01 of the Revised Code.  393
       (ss) Receipts provided to a taxpayer to compensate for  394
lost business resulting from the train derailment near the city  395
of East Palestine on February 3, 2023, by any of the following:  396
       (i) A federal, state, or local government agency;  397
       (ii) A railroad company, as that term is defined in  398
section 5727.01 of the Revised Code;  399
S. B. No. 325  Page 15
As Introduced
       (iii) Any subsidiary, insurer, or agent of a railroad  400
company or any related person.  401
       (tt) An amount equal to the fee imposed by section 3743.22  402
of the Revised Code billed to the purchaser, collected by the  403
taxpayer, and remitted to the fire marshal during the tax  404
period, provided that the fee is separately stated on the  405
invoice, bill of sale, or similar document given to the  406
purchaser of 1.4G fireworks in this state.;  407
       (uu) Receipts under a construction contract to the extent  408
the taxpayer is obligated to pay those receipts to a  409
subcontractor under a subcontract;  410
       (vv) Any receipts for which the tax imposed by this  411
chapter is prohibited by the constitution or laws of the United  412
States or the constitution of this state;  413
       (vv)(ww) Receipts from fees imposed under sections 128.41  414
and 128.42 of the Revised Code.  415
       (3) In the case of a taxpayer when acting as a real estate  416
broker, "gross receipts" includes only the portion of any fee  417
for the service of a real estate broker, or service of a real  418
estate salesperson associated with that broker, that is retained  419
by the broker and not paid to an associated real estate  420
salesperson or another real estate broker. For the purposes of  421
this division, "real estate broker" and "real estate  422
salesperson" have the same meanings as in section 4735.01 of the  423
Revised Code.  424
       (4) A taxpayer's method of accounting for gross receipts  425
for a tax period shall be the same as the taxpayer's method of  426
accounting for federal income tax purposes for the taxpayer's  427
federal taxable year that includes the tax period. If a  428
S. B. No. 325  Page 16
As Introduced
taxpayer's method of accounting for federal income tax purposes  429
changes, its method of accounting for gross receipts under this  430
chapter shall be changed accordingly.  431
       (G) "Taxable gross receipts" means gross receipts sitused  432
to this state under section 5751.033 of the Revised Code.  433
       (H) A person has "substantial nexus with this state" if  434
any of the following applies. The person:  435
       (1) Owns or uses a part or all of its capital in this  436
state;  437
       (2) Holds a certificate of compliance with the laws of  438
this state authorizing the person to do business in this state;  439
       (3) Has bright-line presence in this state;  440
       (4) Otherwise has nexus with this state to an extent that  441
the person can be required to remit the tax imposed under this  442
chapter under the Constitution of the United States.  443
       (I) A person has "bright-line presence" in this state for  444
a reporting period and for the remaining portion of the calendar  445
year if any of the following applies. The person:  446
       (1) Has at any time during the calendar year property in  447
this state with an aggregate value of at least fifty thousand  448
dollars. For the purpose of division (I)(1) of this section,  449
owned property is valued at original cost and rented property is  450
valued at eight times the net annual rental charge.  451
       (2) Has during the calendar year payroll in this state of  452
at least fifty thousand dollars. Payroll in this state includes  453
all of the following:  454
       (a) Any amount subject to withholding by the person under  455
S. B. No. 325  Page 17
As Introduced
section 5747.06 of the Revised Code;  456
       (b) Any other amount the person pays as compensation to an  457
individual under the supervision or control of the person for  458
work done in this state; and  459
       (c) Any amount the person pays for services performed in  460
this state on its behalf by another.  461
       (3) Has during the calendar year taxable gross receipts of  462
at least five hundred thousand dollars;  463
       (4) Has at any time during the calendar year within this  464
state at least twenty-five per cent of the person's total  465
property, total payroll, or total gross receipts;  466
       (5) Is domiciled in this state as an individual or for  467
corporate, commercial, or other business purposes.  468
       (J) "Tangible personal property" has the same meaning as  469
in section 5739.01 of the Revised Code.  470
       (K) "Internal Revenue Code" means the Internal Revenue  471
Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term  472
used in this chapter that is not otherwise defined has the same  473
meaning as when used in a comparable context in the laws of the  474
United States relating to federal income taxes unless a  475
different meaning is clearly required. Any reference in this  476
chapter to the Internal Revenue Code includes other laws of the  477
United States relating to federal income taxes.  478
       (L) "Calendar quarter" means a three-month period ending  479
on the thirty-first day of March, the thirtieth day of June, the  480
thirtieth day of September, or the thirty-first day of December.  481
       (M) "Tax period" means the calendar quarter on the basis  482
of which a taxpayer is required to pay the tax imposed under  483
S. B. No. 325  Page 18
As Introduced
this chapter.  484
       (N) "Agent" means a person authorized by another person to  485
act on its behalf to undertake a transaction for the other,  486
including any of the following:  487
       (1) A person receiving a fee to sell financial  488
instruments;  489
       (2) A person retaining only a commission from a  490
transaction with the other proceeds from the transaction being  491
remitted to another person;  492
       (3) A person issuing licenses and permits under section  493
1533.13 of the Revised Code;  494
       (4) A lottery sales agent holding a valid license issued  495
under section 3770.05 of the Revised Code;  496
       (5) A person acting as an agent of the division of liquor  497
control under section 4301.17 of the Revised Code.  498
       (O) "Received" includes amounts accrued under the accrual  499
method of accounting.  500
       (P) "Reporting person" means a person in a consolidated  501
elected taxpayer or combined taxpayer group that is designated  502
by that group to legally bind the group for all filings and tax  503
liabilities and to receive all legal notices with respect to  504
matters under this chapter, or, for the purposes of section  505
5751.04 of the Revised Code, a separate taxpayer that is not a  506
member of such a group.  507
       (Q) "Megaproject," "megaproject operator," and  508
"megaproject supplier" have the same meanings as in section  509
122.17 of the Revised Code.  510
S. B. No. 325  Page 19
As Introduced
       (R) "Exclusion amount" means three million dollars  511
beginning in 2024 and six million dollars beginning in 2025.  512
       Section 2. That existing section 5751.01 of the Revised  513
Code is hereby repealed.  514
       Section 3. The amendment by this act of section 5751.01 of  515
the Revised Code applies to tax periods ending on or after the  516
effective date of this section.  517