As Introduced
135th General Assembly
Regular Session H. B. No. 663
2023-2024
Representatives Lorenz, Daniels
A BILL
To amend sections 1345.21 and 5739.01 of the 1
Revised Code to exclude consumer goods service 2
contracts from home solicitation sales 3
regulations and to authorize a sales tax credit 4
for the trade-in value of portable electronics 5
or home appliances for another similar item. 6
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1345.21 and 5739.01 of the 7
Revised Code be amended to read as follows: 8
Sec. 1345.21. As used in sections 1345.21 to 1345.28 of 9
the Revised Code: 10
(A) "Home solicitation sale" means a sale of consumer 11
goods or services in which the seller or a person acting for the 12
seller engages in a personal solicitation of the sale at a 13
residence of the buyer, including solicitations in response to 14
or following an invitation by the buyer, and the buyer's 15
agreement or offer to purchase is there given to the seller or a 16
person acting for the seller, or in which the buyer's agreement 17
or offer to purchase is made at a place other than the seller's 18
place of business. It does not include a transaction or 19
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transactions in which: 20
(1) The total purchase price to be paid by the buyer, 21
whether under single or multiple contracts, is less than twenty- 22
five dollars; 23
(2) The transaction was conducted and consummated entirely 24
by mail or by telephone if initiated by the buyer, and without 25
any other contact between the seller or the seller's 26
representative prior to the delivery of goods or performance of 27
the service; 28
(3) The final agreement is made pursuant to prior 29
negotiations in the course of a visit by the buyer to a retail 30
business establishment having a fixed permanent location where 31
the goods are exhibited or the services are offered for sale on 32
a continuing basis; 33
(4) The buyer initiates the contact between the parties 34
for the purpose of negotiating a purchase and the seller has a 35
business establishment at a fixed location in this state where 36
the goods or services involved in the transaction are regularly 37
offered or exhibited for sale. 38
Advertisements by such a seller in newspapers, magazines, 39
catalogues, radio, or television do not constitute the seller 40
initiation of the contact. 41
(5) The buyer initiates the contact between the parties, 42
the goods or services are needed to meet a bona fide immediate 43
personal emergency of the buyer which will jeopardize the 44
welfare, health, or safety of natural persons, or endanger 45
property which the buyer owns or for which the buyer is 46
responsible, and the buyer furnishes the seller with a separate, 47
dated, and signed statement in the buyer's handwriting 48
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describing the situation requiring immediate remedy and 49
expressly acknowledging and waiving the right to cancel the sale 50
within three business days; 51
(6) The buyer has initiated the contact between the 52
parties and specifically requested the seller to visit the 53
buyer's home for the purpose of repairing or performing 54
maintenance upon the buyer's personal property. If, in the 55
course of such a visit, the seller sells the buyer additional 56
services or goods other than replacement parts necessarily used 57
in performing the maintenance or in making the repairs, the sale 58
of those additional goods or services does not fall within this 59
exclusion. 60
(7) The buyer is accorded the right of rescission by the 61
"Consumer Credit Protection Act," (1968) 82 Stat. 152, 15 U.S.C. 62
1635, or regulations adopted pursuant to it. 63
(B) "Sale" includes a lease or rental. 64
(C) "Seller" includes a lessor or anyone offering goods 65
for rent. 66
(D) "Buyer" includes a lessee or anyone who gives a 67
consideration for the privilege of using goods. 68
(E) "Consumer goods or services" means goods or services 69
purchased, leased, or rented primarily for personal, family, or 70
household purposes, including courses or instruction or training 71
regardless of the purpose for which they are taken. 72
(F) "Consumer goods or services" does not include goods or 73
services pertaining to any of the following: 74
(1) Sales or rentals of real property by a real estate 75
broker or salesperson, or by a foreign real estate dealer or 76
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As Introduced
salesperson, who is licensed by the Ohio real estate commission 77
under Chapter 4735. of the Revised Code; 78
(2) The sale of securities or commodities by a broker- 79
dealer registered with the securities and exchange commission; 80
(3) The sale of securities or commodities by a securities 81
dealer or salesperson licensed by the division of securities 82
under Chapter 1707. of the Revised Code; 83
(4) The sale of insurance by a person licensed by the 84
superintendent of insurance; 85
(5) Goods sold or services provided by automobile dealers 86
and salespersons licensed by the registrar of motor vehicles 87
under Chapter 4517. of the Revised Code; 88
(6) The sale of property at an auction by an auctioneer 89
licensed by the department of agriculture under Chapter 4707. of 90
the Revised Code; 91
(7) The sale of consumer goods service contracts or 92
related goods or services subject to section 3905.423 of the 93
Revised Code. 94
(G) "Purchase price" means the total cumulative price of 95
the consumer goods or services, including all interest and 96
service charges. 97
(H) "Place of business" means the main office, or a 98
permanent branch office or permanent local address of a seller. 99
(I) "Business day" means any calendar day except Sunday, 100
or the following business holidays: New Year's day, Martin 101
Luther King day, Presidents' day, Memorial day, Juneteenth day, 102
Independence day, Labor day, Columbus day, Veterans day, 103
Thanksgiving day, and Christmas day. 104
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Sec. 5739.01. As used in this chapter: 105
(A) "Person" includes individuals, receivers, assignees, 106
trustees in bankruptcy, estates, firms, partnerships, 107
associations, joint-stock companies, joint ventures, clubs, 108
societies, corporations, the state and its political 109
subdivisions, and combinations of individuals of any form. 110
(B) "Sale" and "selling" include all of the following 111
transactions for a consideration in any manner, whether 112
absolutely or conditionally, whether for a price or rental, in 113
money or by exchange, and by any means whatsoever: 114
(1) All transactions by which title or possession, or 115
both, of tangible personal property, is or is to be transferred, 116
or a license to use or consume tangible personal property is or 117
is to be granted; 118
(2) All transactions by which lodging by a hotel is or is 119
to be furnished to transient guests; 120
(3) All transactions by which: 121
(a) An item of tangible personal property is or is to be 122
repaired, except property, the purchase of which would not be 123
subject to the tax imposed by section 5739.02 of the Revised 124
Code; 125
(b) An item of tangible personal property is or is to be 126
installed, except property, the purchase of which would not be 127
subject to the tax imposed by section 5739.02 of the Revised 128
Code or property that is or is to be incorporated into and will 129
become a part of a production, transmission, transportation, or 130
distribution system for the delivery of a public utility 131
service; 132
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(c) The service of washing, cleaning, waxing, polishing, 133
or painting a motor vehicle is or is to be furnished; 134
(d) Laundry and dry cleaning services are or are to be 135
provided; 136
(e) Automatic data processing, computer services, or 137
electronic information services are or are to be provided for 138
use in business when the true object of the transaction is the 139
receipt by the consumer of automatic data processing, computer 140
services, or electronic information services rather than the 141
receipt of personal or professional services to which automatic 142
data processing, computer services, or electronic information 143
services are incidental or supplemental. Notwithstanding any 144
other provision of this chapter, such transactions that occur 145
between members of an affiliated group are not sales. An 146
"affiliated group" means two or more persons related in such a 147
way that one person owns or controls the business operation of 148
another member of the group. In the case of corporations with 149
stock, one corporation owns or controls another if it owns more 150
than fifty per cent of the other corporation's common stock with 151
voting rights. 152
(f) Telecommunications service, including prepaid calling 153
service, prepaid wireless calling service, or ancillary service, 154
is or is to be provided, but not including coin-operated 155
telephone service; 156
(g) Landscaping and lawn care service is or is to be 157
provided; 158
(h) Private investigation and security service is or is to 159
be provided; 160
(i) Information services or tangible personal property is 161
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provided or ordered by means of a nine hundred telephone call; 162
(j) Building maintenance and janitorial service is or is 163
to be provided; 164
(k) Exterminating service is or is to be provided; 165
(l) Physical fitness facility service is or is to be 166
provided; 167
(m) Recreation and sports club service is or is to be 168
provided; 169
(n) Satellite broadcasting service is or is to be 170
provided; 171
(o) Personal care service is or is to be provided to an 172
individual. As used in this division, "personal care service" 173
includes skin care, the application of cosmetics, manicuring, 174
pedicuring, hair removal, tattooing, body piercing, tanning, 175
massage, and other similar services. "Personal care service" 176
does not include a service provided by or on the order of a 177
licensed physician or licensed chiropractor, or the cutting, 178
coloring, or styling of an individual's hair. 179
(p) The transportation of persons by motor vehicle or 180
aircraft is or is to be provided, when the transportation is 181
entirely within this state, except for transportation provided 182
by an ambulance service, by a transit bus, as defined in section 183
5735.01 of the Revised Code, and transportation provided by a 184
citizen of the United States holding a certificate of public 185
convenience and necessity issued under 49 U.S.C. 41102; 186
(q) Motor vehicle towing service is or is to be provided. 187
As used in this division, "motor vehicle towing service" means 188
the towing or conveyance of a wrecked, disabled, or illegally 189
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parked motor vehicle. 190
(r) Snow removal service is or is to be provided. As used 191
in this division, "snow removal service" means the removal of 192
snow by any mechanized means, but does not include the providing 193
of such service by a person that has less than five thousand 194
dollars in sales of such service during the calendar year. 195
(s) Electronic publishing service is or is to be provided 196
to a consumer for use in business, except that such transactions 197
occurring between members of an affiliated group, as defined in 198
division (B)(3)(e) of this section, are not sales. 199
(4) All transactions by which printed, imprinted, 200
overprinted, lithographic, multilithic, blueprinted, 201
photostatic, or other productions or reproductions of written or 202
graphic matter are or are to be furnished or transferred; 203
(5) The production or fabrication of tangible personal 204
property for a consideration for consumers who furnish either 205
directly or indirectly the materials used in the production of 206
fabrication work; and include the furnishing, preparing, or 207
serving for a consideration of any tangible personal property 208
consumed on the premises of the person furnishing, preparing, or 209
serving such tangible personal property. Except as provided in 210
section 5739.03 of the Revised Code, a construction contract 211
pursuant to which tangible personal property is or is to be 212
incorporated into a structure or improvement on and becoming a 213
part of real property is not a sale of such tangible personal 214
property. The construction contractor is the consumer of such 215
tangible personal property, provided that the sale and 216
installation of carpeting, the sale and installation of 217
agricultural land tile, the sale and erection or installation of 218
portable grain bins, or the provision of landscaping and lawn 219
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care service and the transfer of