Ohio § 5743.05

§ 5743.05.

The tax commissioner shall sell all stamps provided for by section 5743.03 of the Revised Code .  The stamps shall be sold at their face value, except the commissioner shall, by

rule, authorize the sale of stamps to wholesale dealers in this state, or to wholesale

dealers outside this state, at a discount of not less than one and eight-tenths per

cent or more than ten per cent of their face value, as a commission for affixing and

canceling the stamps. The commissioner, by rule, shall authorize the delivery of stamps to wholesale dealers

in this state and to wholesale dealers outside this state on credit.  If such a dealer has not been in good credit standing with this state for five consecutive

years preceding the purchase, the commissioner shall require the dealer to file with

the commissioner a bond to the state in the amount and in the form prescribed by the

commissioner, with surety to the satisfaction of the commissioner, conditioned on

payment to the commissioner within thirty days or the following twenty-third day of

June, whichever comes first for stamps delivered within that time.  If such a dealer has been in good credit standing with this state for five consecutive

years preceding the purchase, the commissioner shall not require that the dealer file

such a bond but shall require payment for the stamps within thirty days after purchase

of the stamps or the following twenty-third day of June, whichever comes first.  Stamps sold to a dealer not required to file a bond shall be sold at face value.  The maximum amount that may be sold on credit to a dealer not required to file a

bond shall equal one hundred ten per cent of the dealer's average monthly purchases

over the preceding calendar year.  The maximum amount shall be adjusted to reflect any changes in the tax rate and

may be adjusted, upon application to the commissioner by the dealer, to reflect changes

in the business operations of the dealer.  The maximum amount shall be applicable to the period between the first day of July

to the following twenty-third day of June.  Payment by a dealer not required to file a bond shall be remitted by electronic

funds transfer as prescribed by section 5743.051 of the Revised Code .  If a dealer not required to file a bond fails to make the payment in full within

the required payment period, the commissioner shall not thereafter sell stamps to

that dealer until the dealer pays the outstanding amount, including penalty and interest

on that amount as prescribed in this chapter, and the commissioner thereafter may

require the dealer to file a bond until the dealer is restored to good standing.  The commissioner shall limit delivery of stamps on credit to the period running

from the first day of July of the fiscal year until the twenty-third day of the following

June.  Any discount allowed as a commission for affixing and canceling stamps shall be

allowed with respect to sales of stamps on credit. The commissioner shall redeem and pay for any destroyed, unused, or spoiled tax stamps

at their net value, and shall refund to wholesale dealers the net amount of state

and county taxes paid erroneously or paid on cigarettes that have been sold in interstate

or foreign commerce or that have become unsalable, and the net amount of county taxes

that were paid on cigarettes that have been sold at retail or for retail sale outside

a taxing county. An application for a refund of tax shall be filed with the commissioner, on the form

prescribed by the commissioner for that purpose, within three years from the date

the tax stamps are destroyed or spoiled, from the date of the erroneous payment, or

from the date that cigarettes on which taxes have been paid have been sold in interstate

or foreign commerce or have become unsalable. On the filing of the application, the commissioner shall determine the amount of refund

to which the applicant is entitled, payable from receipts of the state tax, and, if

applicable, payable from receipts of a county tax.  If the amount is not less than that claimed, the commissioner shall certify the

amount to the director of budget and management and treasurer of state for payment

from the tax refund fund created by section 5703.052 of the Revised Code .  If the amount is less than that claimed, the commissioner shall proceed in accordance

with section 5703.70 of the Revised Code . If a refund is granted for payment of an illegal or erroneous assessment issued by

the department, the refund shall include interest on the amount of the refund from

the date of the overpayment.  The interest shall be computed at the rate per annum prescribed by section 5703.47 of the Revised Code .