Ohio § 5747.063

§ 5747.063.

The requirements imposed under this section are in addition to the municipal income

tax withholding requirements under section 718.031 of the Revised Code .  As used in this section, “sports gaming proprietor” and “sports gaming facility”

have the same meanings as in section 3775.01 of the Revised Code . (A)(1) Subject to division (F) of this section, if a person's winnings from casino gaming

or from sports gaming are an amount for which reporting to the internal revenue service

of the amount is required by section 6041 of the Internal Revenue Code , as amended, a casino operator or sports gaming proprietor shall deduct and withhold

Ohio income tax from the person's winnings at a rate of three and one-eighth per cent

for calendar year 2025, after the effective date of this amendment, and two and three-quarters

per cent for calendar year 2026 and thereafter of the amount won.  A person's amount of winnings from casino gaming shall be determined each time the

person exchanges amounts won in tokens, chips, casino credit, or other prepaid representations

of value for cash or a cash equivalent.  The casino operator or sports gaming proprietor shall issue, to a person from whose

winnings an amount has been deducted and withheld, a receipt for the amount deducted

and withheld, and also shall obtain from the person additional information that will

be necessary for the casino operator or sports gaming proprietor to prepare the returns

required by this section. (2) If a person's winnings from casino gaming or sports gaming require reporting to the

internal revenue service under division (A)(1) of this section, the casino operator

or sports gaming proprietor also shall require the person to state in writing, under

penalty of falsification, whether the person is in default under a support order. (B) Amounts deducted and withheld by a casino operator or sports gaming proprietor are

held in trust for the benefit of the state. (1) On or before the tenth day of each month, the casino operator or sports gaming proprietor

shall file a return electronically with the tax commissioner identifying the persons

from whose winnings amounts were deducted and withheld, the amount of each such deduction

and withholding during the preceding calendar month, the amount of the winnings from

which each such amount was withheld, the type of casino gaming or sports gaming that

resulted in such winnings, and any other information required by the tax commissioner.  With the return, the casino operator or sports gaming proprietor shall remit electronically

to the commissioner all the amounts deducted and withheld during the preceding month. (2)(a) A casino operator or sports gaming proprietor shall maintain a record of each written

statement provided under division (A)(2) of this section in which a person admits

to being in default under a support order.  The casino operator or sports gaming proprietor shall make these records available

to the director of job and family services upon request. (b) A casino operator or sports gaming proprietor shall maintain copies of receipts issued

under division (A)(1) of this section and of written statements provided under division

(A)(2) of this section and shall make these copies available to the tax commissioner

upon request. (c) A casino operator or sports gaming proprietor shall maintain the information described

in divisions (B)(2)(a) and (b) of this section in accordance with section 5747.17 of the Revised Code and any rules adopted pursuant thereto. (3) Annually, on or before the thirty-first day of January, a casino operator or sports

gaming proprietor shall file an annual return electronically with the tax commissioner

indicating the total amount deducted and withheld during the preceding calendar year.  The casino operator or sports gaming proprietor shall remit electronically with

the annual return any amount that was deducted and withheld and that was not previously

remitted.  If the identity of a person and the amount deducted and withheld with respect to

that person were omitted on a monthly return, that information shall be indicated

on the annual return. (4)(a) A casino operator or sports gaming proprietor who fails to file a return and remit

the amounts deducted and withheld is personally liable for the amount deducted and

withheld and not remitted.  The commissioner may impose a penalty up to one thousand dollars if a return is

filed late, if amounts deducted and withheld are remitted late, if a return is not

filed, or if amounts deducted and withheld are not remitted.  Interest accrues on past due amounts deducted and withheld at the rate prescribed

in section 5703.47 of the Revised Code .  The commissioner may collect past due amounts deducted and withheld and penalties

and interest thereon by assessment under section 5747.13 of the Revised Code as if they were income taxes collected by an employer. (b) If a casino operator or sports gaming proprietor sells the casino facility or sports

gaming facility, or otherwise quits the casino or sports gaming business, the amounts

deducted and withheld and any penalties and interest thereon are immediately due and

payable.  The successor shall withhold an amount of the purchase money that is sufficient

to cover the amounts deducted and withheld and penalties and interest thereon until

the predecessor casino operator or sports gaming proprietor produces either a receipt

from the commissioner showing that the amounts deducted and withheld and penalties

and interest thereon have been paid or a certificate from the commissioner indicating

that no amounts deducted and withheld or penalties and interest thereon are due.  If the successor fails to withhold purchase money, the successor is personally liable

for payment of the amounts deducted and withheld and penalties and interest thereon,

up to the amount of the purchase money. (C) Annually, on or before the thirty-first day of January, a casino operator or sports

gaming proprietor shall issue an information return to each person with respect to

whom an amount has been deducted and withheld during the preceding calendar year.  The information return shall show the total amount deducted from the person's winnings

by the casino operator or sports gaming proprietor during the preceding calendar year. (D) Amounts deducted and withheld shall be allowed as a credit against payment of the

tax imposed by section 5747.02 of the Revised Code and shall be treated as taxes paid for purposes of section 5747.09 of the Revised Code .  This division applies only to the person for whom the amount is deducted and withheld. (E) The failure of a casino operator or sports gaming proprietor to deduct and withhold

the required amount from a person's winnings does not relieve the person from liability

for the tax imposed by section 5747.02 of the Revised Code with respect to those winnings.  And compliance with this section does not relieve a casino operator or sports gaming

proprietor or a person who has winnings from casino gaming or sports gaming from compliance

with relevant provisions of federal tax laws. (F) A sports gaming proprietor that offers lottery sports gaming through a terminal described

in division (B)(3) of section 3770.24 of the Revised Code shall not withhold amounts under this section from winnings from wagers placed through

that terminal.  The state lottery commission shall withhold amounts from those winnings under section 5747.062 of the Revised Code . (G) The commissioner shall prescribe the form of the receipt and returns required by

this section.  The director of job and family services shall prescribe the form of the statement

required by this section. (H) The commissioner may adopt rules that are necessary to administer this section.