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 projects and promote economic development in designated regions. The new legal language clarifies that the exemption applies to materials and services incorporated into real property improvements, contingent upon the property owner financing public infrastructure improvements in the surrounding area. Additionally, the bill outlines conditions under which sales tax does not apply, including exemptions for governmental entities and nonprofit organizations, while ensuring that definitions and scopes of these exemptions align with existing tax regulations.

Furthermore, 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 the contractee. If an exemption is improperly claimed, the contractee will be considered the consumer of the items purchased. The bill also specifies the responsibilities of contractees in providing detailed certifications about the classification of materials and establishes reimbursement obligations for tax rate increases after a contract is signed. It allows vendors to present additional evidence for tax reassessment and requires refunds of tax amounts when tangible personal property prices are refunded. Existing sections 5739.02 and 5739.03 are repealed, with the amendments taking effect on the first day of the month following the bill's effective date.

Statutes affected:
As Introduced: 5739.02, 5739.03