The bill amends sections of the Revised Code to establish a sales and use tax exemption for materials and services purchased for specific projects when a port authority or county declines to endorse an agreement related to the project. It introduces the term "minimally acceptable investments," which includes expenditures of at least twenty-five million dollars for construction or renovation and obligations to finance public infrastructure improvements in the surrounding area. Port authorities and county commissioners are required to respond to agreements that meet these investment criteria within thirty days, and if they unreasonably refuse, the proposal can be presented to the tax credit authority for verification and potential exemption certification.

Additionally, the bill clarifies existing tax law regarding exemptions for construction materials and services, introducing new categories of exemptions for projects like sports facilities and convention centers. It specifies that certain exemptions do not apply to contracts with port authorities without county commissioner approval and outlines various other sales exemptions. The bill also addresses vendor liability for collecting sales tax on exempt transactions, requiring vendors to obtain completed exemption certificates and maintain records. It mandates that contractors obtain certification from contractees regarding property classification and includes provisions for tax reimbursement due to rate increases after contract signing. Overall, the bill aims to streamline tax exemptions while ensuring compliance with existing regulations.

Statutes affected:
As Introduced: 4582.72, 5739.02, 5739.03