OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 108 Bill Analysis
135th General Assembly
Click here for H.B. 108’s Fiscal Note
Version: As Introduced
Primary Sponsors: Reps. Santucci and A. Miller
Effective date:
Zachary P. Bowerman, Attorney
SUMMARY
 Authorizes certified, tax-exempt retailers which sell donated goods to retain up to the
lesser of 25% or $1 million per year of collected state sales taxes to fund job training and
placement services for individuals with workplace disadvantages.
DETAILED ANALYSIS
Sales tax retention by certain tax-exempt retailers
The bill, known as the Nonprofit Workforce Reinvestment Act, authorizes certain
tax-exempt retailers to be certified by the Director of Development (DEV), allowing the retailer
to retain a portion of the state sales tax it collects on sales of donated goods to fund certain job
training and placement services.
To become certified, a retailer must be a 501(c)(3) nonprofit organization that operates
one or more stores that sell donated items and that uses a portion of its revenue to provide job
training, job placement services, or employment to people with certain workplace
disadvantages. Such a retailer must submit an application to DEV along with records showing
how many people the retailer has trained and employed through its workforce development
programs. DEV has 30 days after receiving an application to issue a determination.
If DEV approves an application, the retailer is issued a certificate authorizing the retailer
to retain up to 25% of the state sales tax it collects on the sales of donated goods, up to
$1 million per calendar year. The retailer may not retain any collected county or transit
authority sales taxes. The retailer must report the amount of tax retained on its monthly sales
tax return. Retained revenue must be used to fund job training and placement services for
individuals with certain workplace disadvantages, i.e., disabilities and other barriers to
employment such as mental health issues, criminal history, veteran status, and homelessness.
By January 31 of each year, a certified retailer must file a report with DEV accounting for
the use of retained funds in the preceding year and specifying the number of individuals served
May 5, 2023
Office of Research and Drafting LSC Legislative Budget Office
by the retailer’s workforce programs. DEV reviews these reports to ensure compliance and
must notify the Tax Commissioner of any noncompliance within four years after the last day of
the year covered by the report. The Commissioner may make an assessment against a retailer
for any unauthorized use of retained funds or if the retailer retains more than $1 million per
year.1
HISTORY
Action Date
Introduced 03-14-23
ANHB0108IN-135/ts
1 R.C. 5739.28, 5739.12, and 5739.99.
P a g e |2 H.B. 108
As Introduced


Statutes affected:
As Introduced: 5739.12, 5739.99