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Ohio Modifies Sales Tax Vendor License Law


Ohio Substitute House Bill 508 (HB 508) “[e]liminates the special sales tax vendor license categories of ‘service vendor’ and ‘delivery vendor,’ but allows the Tax Commissioner to create specific classes of vendor licenses.”

In addition, HB 508:

  • Permits the Tax Commissioner to cancel a vendor's license if the vendor fails to notify the commissioner of a change of address and if ordinary mail sent to the address on the vendor's license is returned as undeliverable.
  • Requires all vendors to display their vendor licenses, not just transient vendors.
  • Requires the Tax Commissioner to notify all vendors and sellers, not just those registered through the Streamlined Sales Tax Central Registration System, when local sales tax rates change.
  • Specifies that all vendors making sales from a printed catalog do not have to apply changes in local sales tax rates that differ from the catalog rates until the beginning of a calendar quarter that follows 120 days after the Tax Commissioner notifies vendors of the rate change.
  • Includes, as a taxable sale under the sales tax, the transfer of ownership interests in a pass-through entity if its sole assets are boats, planes, motor vehicles, or other recreational property used primarily by the entity's owners.
  • Harmonizes the existing sales tax exemption for water bought for "residential use" with the definition of sales tax-exempt "food."

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”