OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 347 Bill Analysis
135th General Assembly
Click here for H.B. 347’s Fiscal Note
Version: As Passed by the House
Primary Sponsor: Rep. Jones
Effective date:
Zachary P. Bowerman, Attorney
SUMMARY
 Allows a purchaser to provide three years of filed federal farm profit and loss forms to
the Tax Commissioner to verify that certain vehicles and trailers are primarily used in
agriculture, and thus exempt from sales and use tax.
 Allows the Tax Commissioner to issue certificates, which may be provided to a vendor,
verifying that a consumer has filed three years of those forms with the Commissioner.
DETAILED ANALYSIS
Agricultural use exemption qualifications
Continuing law exempts from sales and use tax items used or consumed primarily to
produce property for sale through farming, agriculture, horticulture, or floriculture. Under
current law, this “agricultural use” exemption does not apply to any specific list of property;
how each item purchased will be used is the key as to whether the exemption applies.1
To obtain the exemption under current law, a purchaser must provide the seller with an
exemption certificate, prescribed by the Tax Commissioner, stating the reason the sale is not
subject to the sales tax. The certificate relieves the seller of the obligation to collect the sales
tax on behalf of the state. But, if the Department of Taxation (TAX) later determines that the
purchase does not qualify for the exemption, the purchaser is liable for the tax due.2
The bill allows a purchaser to verify eligibility for the agricultural use exemption for
certain vehicles and trailers by providing TAX with copies of the purchaser’s Schedule F – the
1 R.C. 5729.02(B)(42)(n), not in the bill.
2 R.C. 5739.03(B)(1)(a) and (b).
May 13, 2024
Office of Research and Drafting LSC Legislative Budget Office
federal income tax profit or loss from farming form – for the three most recent years for which
federal returns were due. Qualifying items are:
 Trailers, excluding watercraft trailers;
 Utility vehicles, i.e., vehicles with a bed, principally for the purpose of transporting
material or cargo in connection with construction, agricultural, forestry, grounds
maintenance, land and garden, materials handling, or similar activities;
 All-purpose vehicles, i.e., vehicles designed primarily for cross-country travel on land
and water, or on multiple types of terrain, but excluding golf carts;
 Garden tractors, small utility tractors, and riding mowers.3
The bill also allows the Commissioner to prescribe and issue certificates verifying that a
consumer has filed a Schedule F for the required three years. A certificate holder may submit
this certificate to a vendor, seemingly in lieu of the standard exemption certificate. The bill
restricts the vendor and TAX from requiring the purchaser to provide any additional
documentation or explanation, regardless of whether the Schedule Fs are filed directly with TAX
or a certificate verifying their filing is filed with the vendor.4
The bill’s modifications apply to sales made on or after the first day of the first month
after the bill’s 90-day effective date.5
HISTORY
Action Date
Introduced 12-04-23
Reported, H. Ways & Means 05-01-24
Passed House (89-0) 05-08-24
ANHB0347PH-135/ts
3 R.C. 1353.01, 4501.01, and 4519.01, not in the bill.
4 R.C. 5739.03(B)(7).
5 Section 3.
P a g e |2 H.B. 347
As Passed by the House


Statutes affected:
As Introduced: 5739.02, 5739.03
As Reported By House Committee: 5739.03
As Passed By House: 5739.03