The bill amends sections 5739.02 and 5739.03 of the Revised Code to establish a sales and use tax exemption for building materials sold to contractors for projects valued at $25 million or more in areas with a port authority. This exemption specifically applies to building and construction materials and services intended for incorporation into structures or improvements on real property within municipalities, townships, or counties that have a port authority. Additionally, the property owner must have a separate agreement to finance or facilitate public infrastructure improvements in the surrounding area. The bill also includes various insertions and deletions to clarify the types of materials and services that qualify for the exemption, such as replacing "building" with "building and construction" to broaden the scope of eligible materials.

Moreover, the bill introduces new requirements for contractors and contractees regarding tax exemptions, mandating that contractors obtain a certification of claimed exemptions from contractees. This certification is in addition to any exemption certificate provided to vendors, and if a contractee provides this certification, they will be deemed the consumer of all items purchased under the exemption if it is later found to be improperly claimed. The bill also addresses tax rate increases after a construction contract is signed, requiring contractees to reimburse contractors for any additional taxes incurred. Overall, the amendments aim to streamline the sales tax exemption process, enhance compliance, and support economic development in areas with port authorities.

Statutes affected:
As Introduced: 5739.02, 5739.03