LAW
Writer®
Ohio Laws and Rules
This version is in effect until 05-01-2009
(A) As used in this section:
(1) “Destination-based sourcing requirements” has the same meaning as in section 5739.123 of the Revised Code.
(2) “Impacted county” means a county having a population of less than seventy-five thousand as of the decennial census of 2000 taken by the United States census bureau.
(3) “Master account holder” means a person that holds more than one vendor’s license under division (A) of section 5739.17 of the Revised Code, operates in multiple tax jurisdictions under the same ownership, and files or is required to file a consolidated return under section 5739.12 of the Revised Code.
(4) “Tax jurisdiction” means a county or, if applicable, the portion of a county in which a transit authority has territory.
(B)(1) Beginning in 2006 and ending January 31, 2009, within thirty days after the thirtieth day of June and the thirty-first day of December of each year, a master account holder that makes a sale that is subject to the destination-based sourcing requirements shall file with the tax commissioner a report that details the total taxable sales it made for the prior six-month period in each tax jurisdiction and at each fixed place of business for which the master account holder holds or should hold a license, irrespective of where those sales were sourced under those requirements. The commissioner may extend the time for filing the report under this section.
(2) If the report required by division (B)(1) of this section is not timely filed by a master account holder, the tax commissioner shall mail notice of a delinquent report to the holder. In addition to any other penalties or additional charges imposed under this chapter, the commissioner may impose a penalty of up to fifty dollars for each fixed place of business of the master account holder. If the report is filed within fifteen days after the commissioner mails the delinquency notice, the penalty may be remitted in full or in part by the commissioner. But if the master account holder fails to file the report within fifteen days after the commissioner mails the notice, the commissioner shall impose a penalty of up to one hundred dollars for each fixed place of business of the master account holder. This penalty may not be remitted in full by the commissioner. A penalty imposed under this division is subject to collection and assessment in the same manner as any tax levied under this chapter.
(C)(1) Beginning in 2006 and ending April 17, 2009, within seventy-five days after the thirty-first day of July each year and the thirty-first day of January of the following year, the tax commissioner shall determine for each county both of the following:
(a) The amount of taxes reported on returns filed by all vendors licensed under division (A) of section 5739.17 of the Revised Code that were levied by sections 5739.021 and 5739.026 of the Revised Code and were reported as due in accordance with the destination-based sourcing requirements;
(b) The amount of taxes levied by those sections that would have been paid to the county by vendors licensed under division (A) of section 5739.17 of the Revised Code if the taxes had been collected in accordance with section 5739.035 of the Revised Code, as that section exists when the determination is made.
The commissioner may make any adjustments that are necessary to account for delinquent tax returns or reports.
(2) In making the determination required by division (C)(1) of this section, the commissioner shall use the lesser of the county’s tax rate in effect as of January 1, 2006, or the actual tax rate in effect for the six-month period for which the compensation was calculated.
(3) The commissioner also shall calculate the percentage difference between the amounts determined under divisions (C)(1)(a) and (b) of this section by using a fraction, with the amount determined under division (C)(1)(a) of this section in the numerator, and the amount determined under division (C)(1)(b) of this section in the denominator.
(D)(1) If the percentage difference calculated under division (C)(3) of this section for a county is ninety-six per cent or less, and the county is an impacted county under this section, the county shall receive compensation. Beginning in 2006 and ending May 1, 2009, within ninety days after the thirty-first day of July each year and the thirty-first day of January of the following year, the tax commissioner, in the next ensuing payment to be made under division (B)(1) of section 5739.21 of the Revised Code, shall in addition provide from the general revenue fund to such county compensation in the amount of ninety-eight per cent of the denominator calculated under division (C)(3) of this section, minus the numerator calculated under division (C)(3) of this section.
(2) A county that is entitled to compensation under division (D)(1) of this section may request an advance payment of that compensation. The commissioner shall adopt rules that establish the manner by which such county may make the request and the method the commissioner will use to determine the amount of the advance payment to be made to the county. Compensation provided under division (D)(1) of this section shall be adjusted accordingly to account for advance payments made under division (D)(2) of this section.
(E) If, under division (C)(1) of this section, the tax commissioner determines that a county received more taxes under the destination-based sourcing requirements than it would have received if taxes had been paid in accordance with section 5739.035 of the Revised Code, as that section existed when the determination was made, the county is a windfall county under this division. Beginning in 2006, within ninety days after the thirty-first day of July each year and the thirty-first day of January of the following year, the commissioner, in the next ensuing payment to be made under division (B)(1) of section 5739.21 of the Revised Code, shall reduce the amount to be returned to each windfall county by the total amount of excess taxes that would have been received by all windfall counties in proportion to the total amount needed to compensate counties under division (D) of this section.
(F) The commissioner shall make available to the public the determinations made under division (C) of this section, but any data obtained from taxpayers under this section or that would identify those taxpayers shall remain confidential.
(G) There is hereby created the county compensation tax study committee. The committee shall consist of the following seven members: the tax commissioner, three members of the senate appointed by the president of the senate, and three members of the house of representatives appointed by the speaker of the house of representatives. The appointments shall be made not later than January 31, 2007. The tax commissioner shall be the chairperson of the committee and the department of taxation shall provide any information and assistance that is required by the committee to carry out its duties. The committee shall study the extent to which each county has been impacted by the destination-based sourcing requirements. Not later than June 30, 2007, the committee shall issue a report of its findings and shall make recommendations to the president of the senate and the speaker of the house of representatives, at which time the committee shall cease to exist.
Effective Date: 04-29-2005; 06-02-2005; 09-28-2006
This version is effective 05-01-2009
Repealed.
Effective Date: 2008 HB429 05-01-2009