Ohio § 5747.064

§ 5747.064.

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

tax withholding requirements under section 718.031 of the Revised Code . (A) As used in this section, “video lottery sales agent” has the same meaning as in section 3770.10 of the Revised Code . (B) If a person's prize award from a video lottery terminal is 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, the video lottery sales agent shall deduct and withhold Ohio income

tax from the person's prize award 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.  The video lottery sales agent shall issue, to a person from whose prize award an

amount has been deducted or withheld, a receipt for the amount deducted and withheld,

and also shall obtain from the person additional information that will be necessary

for the video lottery sales agent to prepare the returns required by this section. (C) Amounts deducted and withheld by a video lottery sales agent are held in trust for

the benefit of the state. (1) On or before the tenth day of each month, the video lottery sales agent shall file

a return electronically with the tax commissioner identifying the persons from whose

prize awards amounts were deducted and withheld, the amount of each such deduction

and withholding during the preceding month, the amount of the prize award from which

each such amount was withheld, and any other information required by the commissioner.  With the return, the video lottery sales agent shall remit electronically to the

commissioner all the amounts deducted and withheld during the preceding month. (2) A video lottery sales agent shall maintain a record of all receipts issued under

division (B) of this section and shall make those records available to the commissioner

upon request.  Such records shall be maintained 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 video lottery sales agent

shall file an annual return electronically with the tax commissioner indicating the

total amount deducted and withheld during the preceding calendar year.  The video lottery sales agent 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 video lottery sales agent 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 of 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 video lottery sales agent ceases to operate video lottery terminals, the amounts

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

payable.  A successor of the video lottery sales agent that purchases the video lottery terminals

from the agent 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 video lottery sales agent produces either a receipt from the tax 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. (D) Annually, on or before the thirty-first day of January, a video lottery sales agent

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 prize

award by the video lottery sales agent during the preceding year. (E) 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. (F) The failure of a video lottery sales agent to deduct and withhold the required amount

from a person's prize award does not relieve the person from liability for the tax

imposed by section 5747.02 of the Revised Code with respect to that income.  Compliance with this section does not relieve a video lottery sales agent or a person

who has a prize award from compliance with relevant provisions of federal tax laws. (G) The commissioner shall prescribe the form of the receipt and returns required by

this section and may promulgate any rules necessary to administer the section.