Ohio Streamlined Sales Tax Update 4/18/2008

As a result of an amendment adopted by the Streamlined Sales and Use Tax Agreement (SSUTA), Ohio has enacted legislation that will likely settle its sourcing rules after repeated delays in full implementation of destination-based streamlined rules and policy changes. The Act, in conformity with the SSUTA's elective sourcing rule, requires all vendors to use origin-based sourcing beginning January 1, 2010, for all intrastate sales, but eliminates origin-based sourcing for sales that are not intrastate, regardless of the level of delivery sales. Vendors who have already implemented destination-based sourcing and who must go back to origin sourcing for intrastate sales may be entitled to a one-time compensatory payment. In an unrelated change, a vendor, when making a customer refund of all but a separately stated delivery charge, may retain the sales tax. L. 2008, H429, eff. 04/18/2008