H. B. No. 64 As Introduced
The tax levied under division (A) of this section is imposed
Page 2099
64877
only if the tax has not been paid by the seller as provided in
64878
section 5743.62 of the Revised Code, or by the distributor as
64879
provided in section 5743.51 of the Revised Code.
64880
(B) Each person subject to the tax levied by this section, on
64881
or before the last day of each month, shall file with the tax
64882
commissioner a return for the preceding month showing any
64883
information the tax commissioner finds necessary for the proper
64884
administration of sections 5743.51 to 5743.66 of the Revised Code,
64885
together with remittance of the tax due, payable to the treasurer
64886
of state. The return and payment of the tax required by this
64887
section shall be filed in such a manner that it is received by the
64888
tax commissioner on or before the last day of the month following
64889
the reporting period.
64890
(C) The tax commissioner shall immediately forward to the
64891
treasurer of state all money received from the tax levied by this
64892
section, and the treasurer shall credit the amount to the general
64893
revenue fund.
64894
Sec. 5744.01. As used in this chapter:
64895
(A) "Person" includes, but is not limited to, any individual,
64896
combination of individuals of any form, receiver, assignee,
64897
trustee in bankruptcy, company, joint-stock company, trust,
64898
business trust, estate, partnership, limited liability
64899
partnership, limited liability company, association, joint
64900
venture, club, society, for-profit corporation, S corporation,
64901
qualified subchapter S subsidiary, qualified subchapter S trust,
64902
entity that is disregarded for federal income tax purposes, or any
64903
other entity.
64904
(B) "Wholesale dealer" means any person that:
64905
(1) Sells vapor products to a retail dealer;
64906
H. B. No. 64 As Introduced
Page 2100
(2) Is a retail dealer that receives vapor products with
64907
respect to which the tax imposed by section 5744.02 of the Revised
64908
Code has not or will not be paid by another person that is a
64909
wholesale dealer;
64910
(3) Is a vapor dealer.
64911
(C) "Retail dealer" means any person in this state engaged in
64912
the business of selling vapor products, in any quantity, amount,
64913
or number of sales, to consumers in this state.
64914
(D) "Vapor dealer" means any person in this state engaged in
64915
the business of repackaging, reconstituting, diluting, or
64916
reprocessing a vapor product for resale to consumers.
64917
(E) "Vapor product" means a noncombustible product that
64918
contains or is made or derived from nicotine, that is intended and
64919
marketed for human consumption, including by smoking, inhaling,
64920
snorting, or sniffing, and that includes any component, part, or
64921
additive that is intended for use in a mechanical heating element,
64922
battery, or electronic circuit and is used to deliver the product.
64923
"Vapor product" does not include any product that is a drug,
64924
device, or combination product, as those terms are defined or
64925
described in 21 U.S.C. 321 or 353(g). "Vapor product" includes any
64926
product containing nicotine, regardless of concentration.
64927
(F) "Sale" includes exchange, barter, gift, offer for sale,
64928
and distribution, and includes transactions in interstate or
64929
foreign commerce.
64930
(G) "Storage" includes any keeping or retention of vapor products for use or consumption in this state. (H) "Use" includes the exercise of any right or power incidental to the ownership of vapor products. (I) "Taxpayer" means any person liable for the tax imposed by section 5744.02 or 5744.03 of the Revised Code.
64931 64932 64933 64934 64935 64936
H. B. No. 64 As Introduced
Page 2101
Sec. 5744.02. (A) On and after January 1, 2016, there is
64937
hereby levied an excise tax on the sale of vapor products in this
64938
state, to be paid by the wholesale dealer of the vapor products.
64939
The tax shall be levied on each cigarette equivalent of vapor
64940
product at the rate established in section 5743.02 of the Revised
64941
Code. All revenue from the tax shall be used for the purpose of
64942
funding the needs of this state and its local governments. For the
64943
purposes of this section and section 5744.03 of the Revised Code,
64944
the "cigarette equivalent" of a vapor product shall equal one of
64945
the following amounts:
64946
(1) If the vapor product is sold in liquid form, one-tenth of one milliliter of vapor product; (2) If the vapor product is sold in a nonliquid form, one gram of vapor product.
64947 64948 64949 64950
The tax shall apply to the entire volume or weight, as
64951
applicable, of the vapor product, regardless of whether the
64952
product includes additives other than nicotine.
64953
(B) Only one sale of the same article shall be used in
64954
computing the amount of tax due. If a product is repackaged,
64955
reconstituted, diluted, or reprocessed, the subsequent sale of
64956
that product is not considered a sale of the same article for
64957
purposes of computing the amount of tax due.
64958
(C)(1) Each wholesale dealer subject to the tax imposed by
64959
this section shall mark on all invoices of vapor products sold
64960
that the tax imposed by this section has been paid. The invoice
64961
shall indicate the dealer's account number. If the vapor product
64962
is not sold in liquid form, the invoice shall also indicate the
64963
actual weight, in milligrams, of nicotine per gram of vapor
64964
product sold and the total weight, in grams, of the vapor product.
64965
If the vapor product is sold in liquid form, the invoice shall
64966
also indicate each of the following:
64967
H. B. No. 64 As Introduced
(a) The actual volume, in milliliters, of nicotine per milliliter of vapor product sold; (b) The actual volume, in fluid ounces, of nicotine per fluid ounce of vapor product sold; (c) The total volume, in both milliliters and fluid ounces, of the vapor product. (2) Any person that holds both a wholesale dealer license and
Page 2102
64968 64969 64970 64971 64972 64973 64974
a retail dealer license issued under section 5744.05 of the
64975
Revised Code for the same location shall create and maintain
64976
records showing any transfer or sale of vapor products by the
64977
person, acting as a wholesale dealer, to the person's own retail
64978
operation. In addition to the information required under division
64979
(C)(1) of this section, the records shall include the date of each
64980
such transaction for which tax was due under this section.
64981
(D) The tax imposed by this section is in addition to any other taxes or fees imposed under the Revised Code. (E) The tax commissioner may adopt any rules necessary to enforce and administer this chapter.
Sec. 5744.03. (A) On and after January 1, 2016, there is
64982 64983 64984 64985
64986
hereby levied an excise tax on the storage, use, or other
64987
consumption of vapor products in this state. The tax shall be
64988
levied on each cigarette equivalent of vapor product at the rate
64989
established in section 5743.02 of the Revised Code. The tax shall
64990
apply to the entire volume or weight, as applicable, of the vapor
64991
product, regardless of whether the product includes additives
64992
other than nicotine. All revenue from the tax shall be used for
64993
the purpose of funding the needs of this state and its local
64994
governments.
64995
(B) The tax imposed by this section applies only if no
64996
wholesale dealer has paid the tax imposed by section 5744.02 of
64997
H. B. No. 64 As Introduced
the Revised Code with respect to the vapor products.
Sec. 5744.04. (A) As used in this section with respect to a
Page 2103
64998
64999
wholesale or retail dealer, "licensed" means a wholesale or retail
65000
dealer that holds a current and valid license issued under section
65001
5744.05 of the Revised Code on the basis of an application under
65002
division (B) or (C) of that section, respectively.
65003
(B)(1) A retail dealer may purchase vapor products only from a licensed wholesale dealer. (2) A licensed wholesale dealer may sell vapor products only
65004 65005 65006
to a licensed retail dealer or to another licensed wholesale
65007
dealer, except that, if the licensed wholesale dealer is a vapor
65008
dealer, the licensed wholesale dealer may also sell vapor products
65009
to consumers.
65010
(C) The tax commissioner shall maintain a list of all
65011
licensed wholesale dealers. The list shall include each dealer's
65012
account number, as assigned by the commissioner, and physical
65013
address. The commissioner shall post the list on the web site of
65014
the department of taxation.
65015
Sec. 5744.05. (A) Beginning January 1, 2016, and except as otherwise provided in this section: (1) No person that has nexus with this state, as defined by
65016 65017 65018
section 5741.01 of the Revised Code, shall act as a wholesale
65019
dealer without having a license issued by the tax commissioner for
65020
such purpose. A wholesale dealer that does not have nexus with
65021
this state may obtain a wholesale dealer license under this
65022
section, which shall have the same effect as a license obtained by
65023
a wholesale dealer that has nexus with this state.
65024
(2) No retail dealer shall engage in the business of selling
65025
vapor products to consumers in this state without having a license
65026
issued by the commissioner for such purpose.
65027
H. B. No. 64 As Introduced
On dissolution of a partnership by death, the surviving
Page 2104
65028
partner may operate under the license of the partnership until
65029
expiration of the license, and the heirs or legal representatives
65030
of the deceased person, and receivers and trustees in bankruptcy
65031
appointed by any competent authority, may operate under the
65032
license of the person succeeded in possession by the heir,
65033
representative, receiver, or trustee in bankruptcy if the partner
65034
or successor notifies the department of taxation of the
65035
dissolution or succession within thirty days after the dissolution
65036
or succession.
65037
(B)(1) Each applicant for a wholesale dealer license shall,
65038
on or before the first day of October of each year, make and
65039
deliver to the tax commissioner, upon a form furnished by the
65040
commissioner for that purpose, a statement showing the name and
65041
address of the applicant and any other information the
65042
commissioner considers necessary for the administration of this
65043
chapter.
65044
(2) At the time of making the license application, the
65045
applicant shall pay a license fee of one thousand dollars for each
65046
location listed on the application at which the applicant proposes
65047
to engage in business as a wholesale dealer. The fee shall
65048
accompany the application and shall be made payable to the
65049
treasurer of state for deposit into the vapor products tax
65050
administration fund.
65051
(C)(1) Each applicant for a retail dealer license shall, on
65052
or before the first day of October of each year, make and deliver
65053
to the commissioner, upon a form furnished by the commissioner for
65054
that purpose, a statement showing the name and address of the
65055
applicant and any other information the commissioner considers
65056
necessary for the administration of this chapter.
65057
(2) At the time of making the license application, the applicant shall pay a license fee of one hundred twenty-five
65058 65059
H. B. No. 64 As Introduced
Page 2105
dollars for each location listed on the application at which the
65060
applicant proposes to engage in business as a retail dealer. The
65061
fee shall accompany the application and shall be made payable to
65062
the treasurer of state for deposit into the vapor products tax
65063
administration fund.
65064
(D) Any person that operates as both a wholesale dealer and a
65065
retail dealer at the same location shall secure licenses under
65066
both divisions (B) and (C) of this section.
65067
(E) Upon receipt of an application and payment of any
65068
application fee required by this section, the commissioner shall
65069
issue to the applicant the appropriate license for each location
65070
designated in the application. The license shall authorize the
65071
applicant to engage in business at that location for one year,
65072
commencing on the first day of October. For licenses issued after
65073
the first day of October, the license fee shall be reduced
65074
proportionately by the remainder of the twelve-month period for
65075
which the license is issued, except that the application fee
65076
required to be paid under this section shall be not less than
65077
fifty dollars in any one year. If an original license is lost,
65078
destroyed, or defaced, a duplicate license may be obtained from
65079
the commissioner upon payment of a license replacement fee of
65080
twenty-five dollars.
65081
(F) The holder of a license issued under this section may
65082
transfer the license to a place of business on condition that the
65083
licensee's ownership and business structure remains unchanged and
65084
the licensee applies to the commissioner for the transfer on a
65085
form issued by the commissioner and pays a transfer fee of
65086
twenty-five dollars.
65087
(G) A license fee may be collected by assessment in the
65088
manner provided in section 5744.13 of the Revised Code. A license
65089
fee may be refunded pursuant to section 5744.07 of the Revised
65090
Code.
65091
H. B. No. 64 As Introduced
(H) If any return required under section 5744.06 of the
Page 2106
65092
Revised Code remains unfiled, or if any tax due under Title 57. of
65093
the Revised Code remains unpaid, at the time of a person's
65094
application for a license under this section, the commissioner may
65095
refuse to issue or reissue the license.
65096
(I) Any person that voluntarily applies for a wholesale
65097
dealer license under this section shall be entitled to the same
65098
benefits and subject to the same duties and requirements as a
65099
wholesale dealer that is required to apply for a license under
65100
this section.
65101
Sec. 5744.06. (A)(1) Each person subject to the tax imposed
65102
by section 5744.02 or 5744.03 of the Revised Code shall, on or
65103
before the fifteenth day of each month, file with the tax
65104
commissioner a return for the preceding month showing any
65105
information the commissioner considers necessary for the proper
65106
administration of this chapter, together with remittance of any
65107
tax due. The taxpayer shall file the return and remit the tax
65108
payment electronically.
65109
(2) Each taxpayer that holds both a wholesale dealer license
65110
and a retail dealer license shall file, with the taxpayer's
65111
return, a schedule that includes any information the commissioner
65112
requires to ensure compliance with division (C)(2) of section
65113
5744.02 of the Revised Code.
65114
(B)(1) The commissioner shall require taxpayers to use the
65115
Ohio business gateway, as defined in section 718.01 of the Revised
65116
Code, to file returns and remit the tax, and may provide another
65117
means for the taxpayers to file returns and remit the tax
65118
electronically.
65119
(2) The commissioner may excuse a person from the requirement
65120
to file returns electronically for good cause. The commissioner
65121
may prescribe a form for such purpose.
65122
H. B. No. 64 As Introduced
(C) The commissioner may authorize the filing of returns or
Page 2107
65123
the payment of tax required under this chapter at intervals longer
65124
than one calendar month.
65125
Sec. 5744.07. (A) An application for refund to the taxpayer
65126
of the amount of taxes or fees imposed under this chapter that are
65127
overpaid, paid illegally or erroneously, or paid on any illegal or
65128
erroneous assessment shall be filed by the person that paid the
65129
tax or fee with the tax commissioner, on the form prescribed by
65130
the commissioner, within four years after the date of the illegal
65131
or erroneous payment of the tax or fee, or within any additional
65132
period allowed under division (F) of section 5744.13 of the
65133
Revised Code. The applicant shall provide the amount of the
65134
requested refund along with the claimed reasons for, and
65135
documentation to support, the issuance of a refund.
65136
(B) On the filing of the refund application, the commissioner
65137
shall determine the amount of refund to which the applicant is
65138
entitled. If the amount is not less than that claimed, the
65139
commissioner shall certify the amount to the director of budget
65140
and management and treasurer of state for payment from the tax
65141
refund fund created under section 5703.052 of the Revised Code. If
65142
the amount is less than that claimed, the commissioner shall
65143
proceed in accordance with section 5703.70 of the Revised Code.
65144
(C) Interest on a refund applied for under this section,
65145
computed at the rate provided for in section 5703.47 of the
65146
Revised Code, shall be allowed from the later of the date the tax
65147
or fee was paid or the date the tax or fee payment was due.
65148
(D) Except as provided in section 5744.08 of the Revised
65149
Code, the commissioner may provide for the crediting against any
65150
tax or fee due for a reporting period the amount of any refund due
65151
the taxpayer under this chapter for the preceding reporting
65152
period.
65153
H. B. No. 64 As Introduced
Page 2108
Sec. 5744.08. (A) As used in this section, "debt to the
65154
state" means unpaid taxes that are due the state, unpaid workers'
65155
compensation premiums that are due, unpaid unemployment
65156
compensation contributions that are due, unpaid unemployment
65157
compensation payments in lieu of contributions that are due,
65158
unpaid fees payable to the state or to the clerk of courts
65159
pursuant to section 4505.06 of the Revised Code, incorrect medical
65160
assistance payments, or any unpaid charge, penalty, or interest
65161
arising from any of the foregoing. A debt is not a "debt to the
65162
state" unless the liability underlying the debt has become
65163
incontestable because the time for appealing, reconsidering,
65164
reassessing, or otherwise questioning the liability has expired or
65165
the liability has been finally determined to be valid.
65166
(B) If a taxpayer entitled to a refund under section 5744.07
65167
of the Revised Code owes any debt to the state, the amount
65168
refundable may be applied in satisfaction of the debt. If the
65169
amount refundable is less than the amount of the debt, it may be
65170
applied in partial satisfaction of the debt. If the amount
65171
refundable is greater than the amount of the debt, the amount
65172
remaining after satisfaction of the debt shall be refunded to the
65173
taxpayer.
65174
Sec. 5744.09. (A) Every taxpayer shall maintain complete and
65175
accurate records of all purchases and sales of vapor products, and
65176
shall procure and retain all invoices, bills of lading, and other
65177
documents relating to the purchases and sales of vapor products,
65178
except that no retail dealer shall be required to issue or
65179
maintain invoices relating to the retail dealer's sales of vapor
65180
products unless the retail dealer also holds a wholesale dealer
65181
license issued under section 5744.05 of the Revised Code. The
65182
invoices or documents shall be maintained for each place of
65183
business, shall show the name and address of the other party to
65184
H. B. No. 64 As Introduced
Page 2109
the purchase or sale, and shall meet the requirements of division
65185
(C) of section 5744.02 of the Revised Code.
65186
The records and documents shall be open during business hours
65187
to the inspection of the tax commissioner, and shall be preserved
65188
for a period of four years, unless the commissioner, in writing,
65189
consents to their destruction within that period, or by order
65190
requires that they be kept for a longer period. With the
65191
commissioner's consent, a person with multiple places of business
65192
may keep centralized records but shall transmit duplicates of the
65193
invoices or documents to each place of business within seventy-two
65194
hours after the commissioner or the commissioner's designee
65195
requests access to the records.
65196
(B) The commissioner or an agent of the commissioner may
65197
enter and inspect the facilities and records of any person selling
65198
vapor products. Such entrance and inspection requires a properly
65199
issued search warrant if conducted outside the normal business
65200
hours of the person, but does not require a search warrant if
65201
conducted during the normal business hours of the person. No
65202
person shall prevent or hinder the commissioner or an agent of the
65203
commissioner from carrying out the authority granted by this
65204
division.
65205
Sec. 5744.10. Whenever the tax commissioner has reason to
65206
believe that a person is avoiding paying the tax due under this
65207
chapter with respect to vapor products or discovers vapor products
65208
subject to the tax imposed by this chapter upon which the tax has
65209
not been paid as required by this chapter, the commissioner may
65210
seize and take possession of the vapor products. Upon seizure, the
65211
vapor products shall be forfeited to the state. Within a
65212
reasonable time after the seizure, the commissioner may sell
65213
forfeited vapor products. From the proceeds of such a sale, the
65214
commissioner shall pay the costs incurred in the seizure and sale,
65215
H. B. No. 64 As Introduced
Page 2110
and any proceeds remaining after payment of those costs shall be
65216
considered as revenue arising from the tax. The seizure and sale
65217
shall not relieve any person from any fine or imprisonment
65218
provided for violation of this chapter. The commissioner shall
65219
make the sale where it is most convenient and economical, and may
65220
order the destruction of the forfeited vapor products if the
65221
quantity or quality of the vapor products is not sufficient to
65222
warrant a sale.
65223
Sec. 5744.11. If any person, regardless of organizational
65224
form, required to file reports and to remit taxes or fees imposed
65225
under this chapter fails for any reason to file such reports or
65226
pay such taxes or fees, any employees of the person having control
65227
or supervision of, or charged with the responsibility of, filing
65228
reports and making payments, or any officers or trustees of the
65229
person responsible for the execution of the person's fiscal
65230
responsibilities, are personally liable for the failure.
65231
The dissolution, termination, or bankruptcy of a person shall
65232
not discharge a responsible officer's, shareholder's, member's,
65233
manager's, employee's, or trustee's liability for failure of the
65234
person to file reports or remit taxes or fees. The sum due for the
65235
liability may be collected by assessment in the manner provided in
65236
section 5744.13 of the Revised Code.
65237
If more than one individual is personally liable under this
65238
section for the unpaid taxes or fees of a person, then the
65239
liability of all such individuals shall be joint and several. The
65240
sum due for the liability may be collected by assessment in the
65241
manner provided in section 5703.90 of the Revised Code.
65242
Sec. 5744.12. Out of the receipts from the taxes imposed by
65243
this chapter, amounts equal to the refunds certified by the tax
65244
commissioner pursuant to section 5744.07 of the Revised Code shall
65245
H. B. No. 64 As Introduced
Page 2111
be placed to the credit of the tax refund fund created by section
65246
5703.052 of the Revised Code. The balance of taxes collected under
65247
those sections, after the credits to the tax refund fund, shall be
65248
paid into the general revenue fund.
65249
All money collected from the license fees imposed under
65250
section 5744.05 of the Revised Code shall be deposited into the
65251
vapor products tax administration fund, which is hereby created in
65252
the state treasury.
65253
Amounts credited to the vapor products tax administration
65254
fund shall be used solely for the purpose of paying the expenses
65255
of the department of taxation incident to the administration and
65256
enforcement of the taxes and fees imposed under this chapter.
65257
Sec. 5744.13. (A) The tax commissioner may make an
65258
assessment, based on any information in the commissioner's
65259
possession, against any person that fails to file a return or pay
65260
any tax or license fee as required by this chapter. The
65261
commissioner shall give the person assessed written notice of the
65262
assessment as provided in section 5703.37 of the Revised Code.
65263
With the notice, the commissioner shall provide instructions on
65264
how to petition for reassessment and request a hearing on the
65265
petition.
65266
(B) Unless the person assessed files with the tax
65267
commissioner within sixty days after service of the notice of
65268
assessment, either personally or by certified mail, a written
65269
petition for reassessment signed by the person assessed or that
65270
person's authorized agent having knowledge of the facts, the
65271
assessment becomes final and the amount of the assessment is due
65272
and payable from the person assessed to the treasurer of state.
65273
The petition shall indicate the objections of the person assessed,
65274
but additional objections may be raised in writing if received by
65275
H. B. No. 64 As Introduced
Page 2112
the commissioner prior to the date shown on the final
65276
determination. If the petition has been properly filed, the
65277
commissioner shall proceed under section 5703.60 of the Revised
65278
Code.
65279
(C)(1) After an assessment becomes final, if any portion of
65280
the assessment, including accrued interest, remains unpaid, a
65281
certified copy of the tax commissioner's entry making the
65282
assessment final may be filed in the office of the clerk of the
65283
court of common pleas in the county in which the person resides or
65284
has its principal place of business in this state, or in the
65285
office of the clerk of the court of common pleas of Franklin
65286
county.
65287
(2) Immediately upon the filing of the commissioner's entry,
65288
the clerk shall enter a judgment for the state against the person
65289
assessed in the amount shown on the entry. The judgment may be
65290
filed by the clerk in a loose-leaf book entitled "special
65291
judgments for the vapor products tax," and shall have the same
65292
effect as other judgments. Execution shall issue upon the judgment
65293
upon the request of the commissioner, and all laws applicable to
65294
sales on execution shall apply to sales made under the judgment.
65295
(3) If the assessment is not paid in its entirety within
65296
sixty days after the assessment was issued, the portion of the
65297
assessment consisting of taxes or fees due shall bear interest at
65298
the rate per annum prescribed by section 5703.47 of the Revised
65299
Code from the day the commissioner issues the assessment until it
65300
is paid or until it is certified to the attorney general for
65301
collection under section 131.02 of the Revised Code, whichever
65302
comes first. If the unpaid portion of the assessment is certified
65303
to the attorney general for collection, the entire unpaid portion
65304
of the assessment shall bear interest at the rate per annum
65305
prescribed by section 5703.47 of the Revised Code from the date of
65306
certification until the date it is paid in its entirety. Interest
65307
H. B. No. 64 As Introduced
Page 2113
shall be paid in the same manner as the tax or fee and may be
65308
collected by the issuance of an assessment under this section.
65309
(D) If the tax commissioner believes that collection of a tax
65310
or fee will be jeopardized unless proceedings to collect or secure
65311
collection of the tax or fee are instituted without delay, the
65312
commissioner may issue a jeopardy assessment against the person
65313
liable for the tax or fee. Immediately upon the issuance of the
65314
jeopardy assessment, the commissioner shall file an entry with the
65315
clerk of the court of common pleas in the manner prescribed by
65316
division (C) of this section. Notice of the jeopardy assessment
65317
shall be served on the person assessed or the person's authorized
65318
agent in the manner provided by section 5703.37 of the Revised
65319
Code within five days of the filing of the entry with the clerk.
65320
The total amount assessed is immediately due and payable unless
65321
the person assessed files a petition for reassessment in
65322
accordance with division (B) of this section and provides security
65323
in a form satisfactory to the commissioner and in an amount
65324
sufficient to satisfy the unpaid balance of the assessment. Full
65325
or partial payment of the assessment shall not prejudice the
65326
commissioner's consideration of the petition for reassessment.
65327
(E) The tax commissioner shall immediately forward to the
65328
treasurer of state all amounts the commissioner receives under
65329
this section, and such amounts shall be considered as revenue
65330
arising from the taxes imposed by this chapter.
65331
(F) Except as otherwise provided in this division, no
65332
assessment shall be made or issued against a taxpayer for the
65333
taxes imposed by this chapter more than four years after the due
65334
date of the return for the reporting period for which the tax was
65335
due, or more than four years after the return for that reporting
65336
period was filed, whichever is later. Except as otherwise provided
65337
in this division, no assessment shall be made or issued against a
65338
taxpayer for any fee imposed under section 5744.05 of the Revised
65339
H. B. No. 64 As Introduced
Page 2114
Code more than four years after the due date of the fee, or more
65340
than four years after the application to which the fee relates was
65341
filed, whichever is later.
65342
A time limit prescribed by this division may be extended if
65343
both the taxpayer and the commissioner consent in writing to the
65344
extension or enter into an agreement waiving or extending the time
65345
limit. Any such extension shall extend the four-year time limit
65346
prescribed by division (A) of section 5744.07 of the Revised Code
65347
for the same period. Nothing in this division bars an assessment
65348
against a taxpayer that fails to file a return required by this
65349
chapter, that files a fraudulent return, or that operates without
65350
a license in violation of section 5744.05 of the Revised Code.
65351
(G) If the tax commissioner possesses information that
65352
indicates that the amount of tax a taxpayer is required to pay
65353
under this chapter exceeds the amount the taxpayer paid, the
65354
commissioner may, upon agreement with the taxpayer, audit a sample
65355
of the taxpayer's records over a representative period of time to
65356
ascertain the amount of tax due, and may issue an assessment based
65357
on the audit. The commissioner shall make a good faith effort to
65358
reach an agreement with the taxpayer in selecting a representative
65359
sample.
65360
(H) If the whereabouts of a person subject to this chapter is
65361
not known to the tax commissioner, the commissioner shall follow
65362
the procedures prescribed in section 5703.37 of the Revised Code.
65363
Sec. 5744.14. If any person liable for the tax or fees
65364
imposed under this chapter sells the trade or business, disposes
65365
in any manner other than in the regular course of business at
65366
least seventy-five per cent of the assets of the trade or
65367
business, or quits the trade or business, any taxes or fees owed
65368
by such person shall become due and payable immediately, and the
65369
person shall pay the taxes or fees under this section, including
65370
H. B. No. 64 As Introduced
Page 2115
any applicable penalties and interest, within forty-five days
65371
after the date of selling or quitting the trade or business. The
65372
person's successor shall withhold a sufficient amount of the
65373
purchase money to cover the amount due and unpaid until the former
65374
owner produces a receipt from the tax commissioner showing that
65375
the amounts are paid or a certificate from the commissioner
65376
indicating that no taxes are due. If a purchaser fails to withhold
65377
purchase money, that person is personally liable for amounts that
65378
are unpaid during the operation of the business by the former
65379
owner, not to exceed the purchase money amount. The amount for
65380
which the purchaser is liable may be collected by assessment in
65381
the manner provided by section 5703.90 of the Revised Code.
65382
The tax commissioner may adopt rules regarding the issuance
65383
of certificates under this section, including the waiver of the
65384
need for a certificate if certain criteria established by the
65385
commissioner are satisfied.
65386
Sec. 5744.15. (A) If, for three consecutive reporting
65387
periods, a taxpayer fails to file any return as required by
65388
section 5744.06 of the Revised Code or fails to pay the full
65389
amount of the tax due with a return, the tax commissioner may
65390
suspend the license issued to the taxpayer under section 5744.05
65391
of the Revised Code until all returns have been filed or payments
65392
made.
65393
(B) If a taxpayer files a false return, fails to file a
65394
return as required by section 5744.06 of the Revised Code, or
65395
fails to pay the full amount due with a return, the commissioner
65396
may revoke the license issued to the taxpayer under section
65397
5744.05 of the Revised Code by notifying the taxpayer in writing
65398
of such revocation by certified mail sent to the last known
65399
address of the taxpayer appearing on the files of the
65400
commissioner.
65401
H. B. No. 64 As Introduced
(C) Upon the request of a person that is no longer subject to
Page 2116
65402
the tax imposed by this chapter, the commissioner may cancel the
65403
license issued to the person under section 5744.05 of the Revised
65404
Code. The cancellation shall become effective at the time
65405
determined by the commissioner. No license shall be cancelled upon
65406
a person's request unless, before cancellation, the person has
65407
paid to the state all taxes, interest, and penalties owed by the
65408
person to the state under any provision of the Revised Code.
65409
Sec. 5744.97. (A) The tax commissioner may impose a penalty
65410
on any person that fails to timely file a return or pay a tax as
65411
required under section 5744.06 of the Revised Code. The penalty
65412
shall not exceed the greater of fifty dollars or ten per cent of
65413
the tax due.
65414
(B)(1) If any additional tax is found to be due, the tax
65415
commissioner may impose an additional penalty of up to fifteen per
65416
cent on the additional tax found to be due.
65417
(2) Any delinquent payments of the tax made after a taxpayer
65418
is notified of an audit or a tax discrepancy by the commissioner
65419
is subject to the penalty imposed by division (B)(1) of this
65420
section. If an assessment is issued under section 5744.13 of the
65421
Revised Code in connection with such delinquent payments, the
65422
payments shall be credited to the assessment.
65423
(C) If the tax commissioner notifies a person required to be
65424
licensed under section 5744.05 of the Revised Code of such
65425
requirement and of the requirement to remit taxes due under this
65426
chapter, and the person fails to apply for a license or remit any
65427
tax due within thirty days of such notice, the commissioner may
65428
impose an additional penalty of up to thirty-five per cent of the
65429
amount due.
65430
(D) If a person required to remit taxes or file a return
65431
electronically under section 5744.06 of the Revised Code fails to
65432
H. B. No. 64 As Introduced
Page 2117
do so, the commissioner may impose a penalty not to exceed the
65433
following:
65434
(1) For either of the first two reporting periods the person
65435
so fails, the greater of twenty-five dollars or five per cent of
65436
the amount of the payment that was required to be remitted;
65437
(2) For the third and any subsequent reporting periods the
65438
person so fails, the greater of fifty dollars or ten per cent of
65439
the amount of the payment that was required to be remitted.
65440
(E) A wholesale dealer that fails to mark the dealer's
65441
invoices in accordance with division (C) of section 5744.02 of the
65442
Revised may be subject to a penalty of not less than the greater
65443
of twenty-five dollars or five per cent of the total value of the
65444
vapor products as indicated on the invoice, and not more than the
65445
greater of fifty dollars or ten per cent of the total value of the
65446
vapor products as indicated on the invoice.
65447
(F) The tax commissioner may collect any penalty or interest
65448
imposed by this section by assessment in the same manner as the
65449
taxes imposed by this chapter.
65450
(G) The tax commissioner may abate all or a portion of any
65451
penalties imposed under this section and may adopt rules governing
65452
such abatements.
65453
(H) If any tax or fee due is not timely paid in accordance
65454
with this chapter, the taxpayer shall pay interest, calculated at
65455
the rate per annum prescribed by section 5703.47 of the Revised
65456
Code, from the date the tax payment was due to the date of the
65457
payment or the date an assessment was issued, whichever occurs
65458
first.
65459
Sec. 5744.99. (A) Whoever knowingly files a fraudulent refund
65460
claim under section 5744.07 of the Revised Code shall be fined the
65461
greater of one thousand dollars or the amount of the fraudulent
65462
H. B. No. 64 As Introduced
Page 2118
refund requested and may be imprisoned for not more than sixty
65463
days.
65464
(B) Except as provided in this section, whoever knowingly
65465
violates any section of this chapter or any rule adopted by the
65466
tax commissioner under this chapter shall be fined not more than
65467
five hundred dollars or imprisoned for not more than thirty days,
65468
or both.
65469
(C) The penalties provided for under this section are in
65470
addition to any penalties imposed by the tax commissioner under
65471
section 5744.97 of the Revised Code.
65472
Sec. 5747.01. Except as otherwise expressly provided or
65473
clearly appearing from the context, any term used in this chapter
65474
that is not otherwise defined in this section has the same meaning
65475
as when used in a comparable context in the laws of the United
65476
States relating to federal income taxes or if not used in a
65477
comparable context in those laws, has the same meaning as in
65478
section 5733.40 of the Revised Code. Any reference in this chapter
65479
to the Internal Revenue Code includes other laws of the United
65480
States relating to federal income taxes.
65481
As used in this chapter:
65482
(A) "Adjusted gross income" or "Ohio adjusted gross income"
65483
means federal adjusted gross income, as defined and used in the
65484
Internal Revenue Code, adjusted as provided in this section:
65485
(1) Add interest or dividends on obligations or securities of
65486
any state or of any political subdivision or authority of any
65487
state, other than this state and its subdivisions and authorities.
65488
(2) Add interest or dividends on obligations of any
65489
authority, commission, instrumentality, territory, or possession
65490
of the United States to the extent that the interest or dividends
65491
are exempt from federal income taxes but not from state income
65492
