The bill introduced by Representative Lorenz seeks to amend Ohio's laws regarding cigar bars and sales tax exemptions. It establishes a new category of establishments known as "cigar bars," which are licensed to sell only premium cigars and must meet specific requirements, such as having a walk-in humidor and prohibiting entry for individuals under 21. The bill also mandates a separate indoor smoking area that is properly ventilated. Cigar bars will be required to pay a $500 application fee for licensing and will be exempt from sales and use tax on cigars consumed on the premises. Local authorities retain the ability to impose additional regulations or prohibit cigar bars within their jurisdictions.

In addition to the provisions for cigar bars, the bill amends existing tax laws to clarify and expand sales tax exemptions for various goods and services. It introduces a new exemption for sales of cigars consumed on-site at licensed cigar bars and retail tobacco stores that permit cigar smoking. The bill also deletes the previous exemption for child restraint devices. Other tax exemptions are outlined for nonprofit organizations, agricultural sales, and specific equipment used in various industries. The bill aims to streamline tax exemptions while providing financial relief to consumers and ensuring compliance with updated definitions and regulations.

Statutes affected:
As Introduced: 3794.03, 5739.02, 5739.03