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Addendum: Accelerated payments, electronic payments and the Ohio Revised Code

Three sections of the Ohio Revised Code provide for the requirement to pay sales and use

tax by EFT and make accelerated payments. The provisions are essentially the same; the

only difference is the type of taxpayer involved. They are:

R.C. 5739.032 for Direct Payment Permit Holders

R.C. 5739.122 for Vendors

R.C. 5741.121 for Out of State Sellers and In-State Consumers

R.C. 5739.122, as amended by Am. Sub. H.B. 119 of the 127th Ohio General Assembly

provides, in pertinent part:

(A) If the total amount of tax required to be paid by a vendor under section 5739.12 of the

Revised Code for any calendar year equals or exceeds seventy-five thousand dollars, the

vendor shall remit each monthly tax payment in the second ensuing and each succeeding tax

year by electronic funds transfer as prescribed by divisions (B) and (C) of this section.

(B) Vendors required by division (A) of this section to remit payments by electronic funds

transfer shall remit such payments to the treasurer of state in the manner prescribed by this

section and rules adopted by the treasurer of state under section 113.061 of the Revised

Code, and as follows:

(1) On or before the twenty-third day of each month, a vendor shall remit an amount equal to

seventy-five per cent of the anticipated tax liability for that month.

(2) On or before the twenty-third day of each month, a vendor shall report the taxes collected

for the previous month and shall remit that amount, less any amounts paid for that month as

required by division (B)(1) of this section.

The payment of taxes by electronic funds transfer does not affect a vendor's obligation to file

the monthly return as required under section 5739.12 of the Revised Code.

the treasurer of state in the manner prescribed by the treasurer of state to be excused from

that requirement. The treasurer of state may excuse the vendor from remittance by electronic

funds transfer for good cause shown for the period of time requested by the vendor or for a

portion of that period. The treasurer of state shall notify the tax commissioner and the vendor

of the treasurer of state's decision as soon as is practicable.

(D)(1)(a) If a vendor that is required to remit payments under division (B) of this section fails

to make a payment, or makes a payment under division (B)(1) of this section that is less than

seventy-five per cent of the actual liability for that month, the commissioner may impose an

additional charge not to exceed five per cent of that unpaid amount.

(b) Division (D)(1)(a) of this section does not apply if the vendor's payment under division (B)

(1) of this section is equal to or greater than seventy-five per cent of the vendor's reported

liability for the same month in the immediately preceding calendar year.

Information Release - St 2007-06 - Sales And Use Tax: Accelerated And Electronic Sales And Use Tax Payments - Issued December 2007 Page 3