Ohio Modifies Sales Tax Vendor License Law
- Jun 13, 2012 | Susan McLain
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."