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, specifically in areas with a port authority. This exemption is designed to stimulate large-scale construction and enhance economic development in targeted regions. The new provisions clarify that the exemption applies to building and construction materials and services, contingent upon the property owner financing public infrastructure improvements in the vicinity. The bill also outlines various categories of sales exempt from sales tax, including those related to construction contracts with state or federal entities, charitable organizations, and temporary structures, while ensuring alignment with existing tax regulations.

Additionally, the bill introduces new requirements for contractors and contractees regarding tax exemptions on construction materials, mandating that contractors obtain a certification of claimed exemptions from contractees. If a contractee fails to provide this certification, the contractor or vendor must adhere to tax regulations without it. The bill also addresses tax rate increases post-contract signing, requiring contractees to reimburse contractors for any additional taxes incurred. Furthermore, it allows vendors to contest tax assessments with additional evidence if they initially failed to provide valid exemption certificates. Overall, the bill aims to refine the sales tax exemption framework, streamline tax administration, and support various sectors and consumer needs.

Statutes affected:
As Introduced: 5739.02, 5739.03