Ohio § 718.031

§ 718.031.

As used in this section, “sports gaming facility” and “type B sports gaming proprietor”

have the same meanings as in section 3775.01 of the Revised Code and “video lottery terminal” and “video lottery sales agent” have the same meanings

as in section 3770.10 of the Revised Code . (A) A municipal corporation shall require the following persons to withhold and remit

municipal income tax with respect to amounts other than qualifying wages as provided

in this section: (1) A casino facility or a casino operator, as defined in Section 6(C)(9) of Article XV, Ohio Constitution , and section 3772.01 of the Revised Code , respectively; (2) A video lottery sales agent conducting video lottery terminals on behalf of the state; (3) A type B sports gaming proprietor offering sports gaming at a sports gaming facility. (B) If a person's winnings at a casino facility or sports gaming facility are an amount

for which reporting to the internal revenue service of the amount is required by section 6041 of the Internal Revenue Code , 1 as amended, a casino operator or sports gaming proprietor shall deduct and withhold

municipal income tax from the person's winnings at the rate of the tax imposed by

the municipal corporation in which the casino facility or sports gaming facility is

located. (C) Amounts deducted and withheld by a casino operator or sports gaming proprietor are

held in trust for the benefit of the municipal corporation to which the tax is owed. (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 administrator of the municipal corporation,

providing the name, address, and social security number of the person 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 administrator.  With this return, the casino operator or sports gaming proprietor shall remit electronically

to the municipal corporation all amounts deducted and withheld during the preceding

month. (2) 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 administrator

of the municipal corporation in which the casino facility or sports gaming facility

is located, 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 name, address, or social security number of a person or the amount deducted

and withheld with respect to that person was omitted on a monthly return for that

reporting period, that information shall be indicated on the annual return. (3) 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 of municipal income tax deducted

from the person's winnings during the preceding year.  The casino operator or sports gaming proprietor shall provide to the tax administrator

a copy of each information return issued under this division.  The administrator may require that such copies be transmitted electronically. (4) A casino operator or sports gaming proprietor that fails to file a return and remit

the amounts deducted and withheld shall be personally liable for the amount withheld

and not remitted.  Such personal liability extends to any penalty and interest imposed for the late

filing of a return or the late payment of tax deducted and withheld. (5) 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 along with 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 along with any penalties and interest thereon

until the predecessor casino operator or sports gaming proprietor produces either

of the following: (a) A receipt from the tax administrator showing that the amounts deducted and withheld

and penalties and interest thereon have been paid; (b) A certificate from the tax administrator indicating that no amounts are due. If the successor fails to withhold purchase money, the successor is personally liable

for the payment of the amounts deducted and withheld and penalties and interest thereon. (6) 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 that person from liability

for the municipal income tax with respect to those winnings. (D) If a person's prize award from a video lottery terminal is an amount for which reporting

to the internal revenue service is required by section 6041 of the Internal Revenue Code , as amended, the video lottery sales agent shall deduct and withhold municipal income

tax from the person's prize award at the rate of the tax imposed by the municipal

corporation in which the video lottery terminal facility is located. (E) Amounts deducted and withheld by a video lottery sales agent are held in trust for

the benefit of the municipal corporation to which the tax is owed. (1) The video lottery sales agent shall issue to a person from whose prize award an amount

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

shall obtain from the person receiving a prize award the person's name, address, and

social security number in order to facilitate the preparation of returns required

by this section. (2) On or before the tenth day of each month, the video lottery sales agent shall file

a return electronically with the tax administrator of the municipal corporation providing

the names, addresses, and social security numbers of the persons from whose prize

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

during the preceding calendar month, the amount of the prize award from which each

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

tax administrator all amounts deducted and withheld during the preceding month. (3) A video lottery sales agent shall maintain a record of all receipts issued under

division (E) of this section and shall make those records available to the tax administrator

upon request.  Such records shall be maintained in accordance with section 5747.17 of the Revised Code and any rules adopted pursuant thereto. (4) Annually, on or before the thirty-first day of January, each video lottery sales

agent shall file an annual return electronically with the tax administrator of the

municipal corporation in which the facility is located 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 name, address, or social security number of a person or the amount deducted

and withheld with respect to that person was omitted on a monthly return for that

reporting period, that information shall be indicated on the annual return. (5) 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 of municipal income tax deducted

and withheld from the person's prize award by the video lottery sales agent during

the preceding year.  A video lottery sales agent shall provide to the tax administrator of the municipal

corporation a copy of each information return issued under this division.  The tax administrator may require that such copies be transmitted electronically. (6) 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.  Such personal liability extends to any penalty and interest imposed for the late

filing of a return or the late payment of tax deducted and withheld. (F) If a video lottery sales agent ceases to operate video lottery terminals, the amounts

deducted and withheld along with any penalties and interest thereon are immediately

due and payable.  The successor of the video lottery sales agent that purchases the video lottery

terminals from the agent shall withhold an amount from the purchase money that is

sufficient to cover the amounts deducted and withheld and any penalties and interest

thereon until the predecessor video lottery sales agent operator produces either of

the following: (1) A receipt from the tax administrator showing that the amounts deducted and withheld

and penalties and interest thereon have been paid; (2) A certificate from the tax administrator indicating that no amounts are due. If the successor fails to withhold purchase money, the successor is personally liable

for the payment of the amounts deducted and withheld and penalties and interest thereon. (G) The failure of a video lottery sales agent to deduct and withhold the required amount

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

income tax with respect to that prize award. (H) If a casino operator, sports gaming proprietor, or video lottery sales agent files

a return late, fails to file a return, remits amounts deducted and withheld late,

or fails to remit amounts deducted and withheld as required under this section, the

tax administrator of a municipal corporation may impose the following applicable penalty: (1) For the late remittance of, or failure to remit, tax deducted and withheld under

this section, a penalty equal to fifty per cent of the tax deducted and withheld; (2) For the failure to file, or the late filing of, a monthly or annual return, a penalty

of five hundred dollars for each return not filed or filed late.  Interest shall accrue on past due amounts deducted and withheld at the rate prescribed

in section 5703.47 of the Revised Code . (I) Amounts deducted and withheld on behalf of a municipal corporation shall be allowed

as a credit against payment of the tax imposed by the municipal corporation and shall

be treated as taxes paid for purposes of section 718.08 of the Revised Code .  This division applies only to the person for whom the amount is deducted and withheld. (J) The tax administrator shall prescribe the forms of the receipts and returns required

under this section. 1

 26 U.S.C.A. § 6041.