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Rule 5703-43-01 | Definitions.
(A) Any term used in this chapter and Chapter 3780. of the Revised Code for purposes of tax administration that is not otherwise defined has the same meaning as when used in a comparable context in Chapter 5739. of the Revised Code relating to sales and use taxes unless a different meaning is clearly indicated. (B) "Taxpayer" means an adult use dispensary that is registered for an adult use cannabis tax account by the tax commissioner. Last updated September 19, 2024 at 8:52 AM Supplemental Information |
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Rule 5703-43-02 | Licensing.
(A) (1) The tax commissioner will establish an adult use cannabis tax account for each adult use dispensary licensed by the department of commerce. (2) The commissioner may cancel an adult use cannabis tax account if the department of commerce notifies the commissioner that the adult use dispensary's license has been canceled, revoked, suspended, or if the license was not renewed. (B) The commissioner will notify the department of commerce if a person that needs to file and pay the tax levied under section 3780.22 of the Revised Code fails to file or pay the tax and may also notify the department of commerce if such person is otherwise out of compliance with the tax laws of the state of Ohio. (C) The commissioner may recommend that the department of commerce suspend or revoke an adult use dispensary license issued pursuant to section 3780.15 of the Revised Code if the commissioner finds that the adult use dispensary is delinquent in filing any returns, submitting any information required by the commissioner, or remitting any payments with respect to any tax, fee, or charge administered by the commissioner. (D) Notwithstanding any provision of this chapter, any person who operates an adult use dispensary without first holding a current, valid license issued under Chapter 3780. of the Revised Code is liable for any amounts, including tax, interest, and penalties imposed under section 3780.22 of the Revised Code and under this chapter in the same manner as persons that do hold such a license. (E) The commissioner may issue an assessment against a person described in paragraph (D) of this rule for any amount due under section 3780.22 of the Revised Code and this chapter in the same manner provided under rule 5703-43-07 of the Administrative Code. Last updated September 19, 2024 at 8:52 AM Supplemental Information |
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Rule 5703-43-03 | Exchange of Information.
(A) Periodically, upon request of the department of commerce, the tax commissioner may examine the department of taxation's records for each licensee identified by the department of commerce to determine if the licensee is delinquent in filing any returns, submitting any information requested by the commissioner, or remitting any payments with respect to any tax, fee, charge, interest, or penalty for any tax administered by the commissioner. (B) If a delinquency or liability exists, the commissioner may send a notice to the licensee advising the licensee of the nature and amount of any delinquency or liability. (C) The commissioner will notify the department of commerce of the delinquency or liability and provide any requested information. If the licensee resolves the delinquency or liability, the commissioner will notify the department of commerce of that fact. Last updated September 19, 2024 at 8:52 AM Supplemental Information |
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Rule 5703-43-04 | Electronic Filing and Payment.
For purposes of the administration of the tax levied under section 3780.22 of the Revised Code, the text of divisions (A), (D), (E), and (F) of section 5739.12 of the Revised Code is hereby incorporated herein except that wherever the term "vendor" appears in that section substitute "adult use dispensary", wherever the term "consumer" appears in that section substitute "adult use consumer", wherever the term "this chapter" appears in that section substitute "Chapter 3780. of the Revised Code", and wherever the term "5739.02" appears in that section substitute "3780.22". The tax commissioner may prescribe an alternative filing frequency if the commissioner finds that it will be in the best interests of the administration or upon request of the taxpayer. Last updated September 19, 2024 at 8:52 AM Supplemental Information |
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Rule 5703-43-06 | Refunds.
For purposes of the administration of the tax levied under section 3780.22 of the Revised Code, the following applies: (A) The text of section 5739.07 of the Revised Code is hereby incorporated herein except that wherever the term "vendor" appears in that section substitute "adult use dispensary", wherever the term "consumer" appears in that section substitute "adult use consumer", wherever the term "this chapter" appears in that section substitute "Chapter 3780. of the Revised Code", and wherever the term "5739.132 of the Revised Code" appears in that section substitute "rule 5703-43-08 of the Administrative Code". (B) The text of section 5739.072 of the Revised Code is hereby incorporated herein except that wherever the term "section 5739.33" appears in that section substitute "paragraph (C) of rule 5703-43-08 of the Administrative Code". (C) (1) An application for refund of adult use cannabis tax illegally or erroneously paid will be made on a form prescribed by the commissioner and filed with the department of taxation in accordance with instructions thereon. The application may be filed by a taxpayer, adult use consumer, or by a tax representative. The application will state the basis for the refund, i.e., why the payment of tax was illegal or erroneous. (2) The department will deny applications if the refund application form is incomplete and a complete listing of every invoice included in the refund application is not provided. If the refund application includes twenty-five or more invoices, the listing will be provided in an electronic spreadsheet. (3) An application filed by a taxpayer or tax representative will show that the tax was remitted to the state. The taxpayer or tax representative will submit one original, fully-completed refund application form and one set of the following supporting documentation: (a) Copies of original invoices or similar documents. (b) Copies of credit memos, a statement from the adult use consumer, signed by the adult use consumer with specified amounts, agreeing to await reimbursement of the tax until final determination of the refund claim, or some other proof that the accounts receivable was adjusted for the tax or account activity. (c) A spreadsheet provided electronically for all claims containing twenty-five or more invoices. The spreadsheet will be provided in a compatible format, needs to list every invoice separately, and the total should equal the amount requested on the refund application. (d) If the claim is due to an amended return, proof need be provided of the original and amended figures for the period or periods claimed on the refund application. The proof may consist of sales journals, cash register receipts, summary reports or any other document used to prepare the tax return. (e) Copies of accrual sheets for the periods referenced on the refund application if tax was erroneously accrued on purchases. (4) An application filed by an adult use consumer will show that the adult use consumer paid the tax to the taxpayer. The application will also show that the adult use consumer first requested a refund of the tax from the taxpayer and the taxpayer denied the request. The adult use consumer will provide one original, fully-completed refund application form and one set of the following supporting documentation: (a) Copies of original invoices or similar documents. (b) Copies of canceled checks or some other proof that the invoices were paid in full, including the tax. (c) A spreadsheet provided electronically for all claims containing twenty-five or more invoices. The spreadsheet will be provided in a compatible format, needs to list every invoice separately, and the total should equal the amount requested on the refund application. (d) The reason why the payment of the tax was illegal or erroneous. If the adult use consumer is claiming a use-based exemption, the adult use consumer will supply a detailed description of how the cannabis was used. References to the Revised Code or legal opinions, alone, are insufficient to substantiate a refund request. (5) An application for refund of adult use cannabis tax needs to be filed within the period specified by paragraph (A) of this rule. Tax is paid on the date it is remitted to the state and not on the date it is collected by a taxpayer from an adult use consumer. (D) (1) An adult use consumer seeking refund of over-collected adult use cannabis tax need first request a refund from the taxpayer that collected the tax in question. A request for refund from a taxpayer is not an application for refund to the commissioner. (2) If a taxpayer denies an adult use consumer's refund request, the adult use consumer may file an application for refund with the commissioner pursuant to paragraph (C)(4) of this rule. Requesting a refund directly from the commissioner is the adult use consumer's sole remedy to claim a refund of the tax. Any such application needs to be filed with the commissioner within the time prescribed in paragraph (C)(5) of this rule. (E) Any refund amount that is determined to be due a taxpayer based on an application for refund of adult use cannabis tax will first be applied to any outstanding indebtedness of that taxpayer pursuant to paragraph (B) of this rule or in accordance with section 5703.77 of the Revised Code. Any amount remaining after the satisfaction of such outstanding indebtedness will be paid to the taxpayer. Last updated September 19, 2024 at 8:52 AM Supplemental Information |
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Rule 5703-43-07 | Assessments.
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Rule 5703-43-08 | Liability of Unpaid Taxes.
(A) If amounts due under Chapter 3780. of the Revised Code or rule 5703-43-04 of the Administrative Code are not paid on or before the day the amounts are due, interest will accrue on the unpaid amounts at the rate per annum prescribed by section 5703.47 of the Revised Code from the day the amounts were due until the amounts are paid or until the day an assessment is issued under rule 5703-43-07 of the Administrative Code, whichever occurs first. Interest will be paid in the same manner as the tax, and may be collected by assessment. (B) Interest will be allowed and paid on any refund granted pursuant to rule 5703-43-06 of the Administrative Code from the date of the overpayment. The interest will be computed at the rate per annum prescribed by section 5703.47 of the Revised Code. (C) If any taxpayer obligated to file returns and to remit tax due to the state under Chapter 3780. of the Revised Code or rule 5703-43-04 of the Administrative Code fails for any reason to make the filing or payment, any of its employees having control or supervision of or charged with the responsibility of filing returns and making payments, or any of its officers, members, managers, or trustees who are responsible for the execution of the taxpayer's fiscal responsibilities, will be personally liable for the failure. The dissolution, termination, or bankruptcy of a taxpayer will not discharge a responsible officer's, member's, manager's, employee's, or trustee's liability for a failure of the taxpayer to file returns or remit tax due. The sum due for the liability may be collected by assessment in the manner provided in rule 5703-43-07 of the Administrative Code. Last updated September 19, 2024 at 8:53 AM Supplemental Information |
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Rule 5703-43-09 | Recordkeeping.
(A) Each taxpayer will keep complete and accurate records of sales, together with a record of the tax collected on the sales, which will be the amount due under section 3780.22 of the Revised Code, and will keep all invoices, bills of lading, and other such pertinent documents. (B) Such records and other documents maintained pursuant to paragraph (A) of this rule will be provided to the tax commissioner upon request and will be preserved for a period of four years, unless the commissioner, in writing, consents to their destruction within that period, or orders that the records be kept longer. (C) Each taxpayer has an obligation to maintain: (1) Primary records such as purchase invoices, bills of lading, sales invoices, guest checks, tax payment receipts, and cash register tapes; (2) Secondary records such as bank deposit receipts and day books, journals, or any other records in which accumulated data is recorded. Secondary records will be supported by complete primary records. (D) Records are adequate if the records demonstrate to the commissioner that the taxpayer collected the proper amount of tax due on the taxpayer's sales. (E) If any taxpayer fails to maintain complete primary sales records which may be utilized in verifying the accuracy of the figures reflected in their secondary records and/or reported on their tax returns, the commissioner may audit and assess as provided in rule 5703-43-07 of the Administrative Code. (F) If records are normally kept by the taxpayer electronically, the taxpayer will provide such records to the commissioner electronically upon the commissioner's request. Last updated September 19, 2024 at 8:53 AM Supplemental Information |
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Rule 5703-43-10 | Penalties.
(A) A penalty may be added to every amount assessed under section 3780.22 of the Revised Code or rule 5703-43-07 of the Administrative Code as follows: (1) In the case of an assessment against a taxpayer who fails to collect and remit the tax levied by Chapter 3780. of the Revised Code, up to fifty per cent of the amount assessed; (2) In the case of a taxpayer whom the tax commissioner believes has collected the tax but failed to remit it to the state as prescribed by Chapter 3780. of the Revised Code, up to fifty per cent of the amount assessed; (3) In the case of all other assessments, up to fifteen per cent of the amount assessed. (B) No amount assessed under section 3780.22 of the Revised Code or rule 5703-43-07 of the Administrative Code will be subject to a penalty under this rule in excess of fifty per cent of the amount assessed. (C) All assessments issued under rule 5703-43-07 of the Administrative Code will include preassessment interest computed at the rate per annum prescribed by section 5703.47 of the Revised Code. Interest will accrue as prescribed in division (A) of section 5739.132 of the Revised Code. (D) The commissioner may abate any penalty provided for under this rule. (E) Whoever violates section 3780.22 of the Revised Code, or any lawful rule promulgated by the commissioner under authority of such section, will be fined not less than twenty-five nor more than one hundred dollars. (F) Whoever violates rule 5703-43-04 of the Administrative Code by failing to remit to the state the tax collected under section 3780.22 of the Revised Code is guilty of a felony of the fourth degree. Last updated September 19, 2024 at 8:53 AM Supplemental Information |
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Rule 5703-43-11 | Tax Administration.
Pursuant to section 3780.22 of the Revised Code, the tax commissioner will collect the tax consistent with Chapter 5739. of the Revised Code. For any applicable provision of Chapter 5703. of the Revised Code where Chapter 5739. of the Revised Code or any section in that chapter is referenced, the commissioner will collect the tax imposed by section 3780.22 of the Revised Code consistent with those provisions. Last updated September 19, 2024 at 8:53 AM Supplemental Information |
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Rule 5703-43-12 | Enforcement.
(A) As used in this rule, "felony" has the same meaning as in section 109.511 of the Revised Code. (B) For purposes of enforcing this chapter and Chapter 3780. of the Revised Code and subject to paragraph (C) of this rule, the tax commissioner, by journal entry, may delegate any investigation powers of the commissioner to an employee of the department of taxation who has been certified by the Ohio peace officer training commission and who is engaged in the enforcement of those chapters. A separate journal entry will be entered for each employee to whom that power is delegated. Each journal entry will be a matter of public record and will be maintained in an administrative portion of the journal as provided for in division (L) of section 5703.05 of the Revised Code. When that journal entry is completed, the employee to whom it pertains, while engaged within the scope of the employee's duties in enforcing the provisions of this chapter or Chapter 3780. of the Revised Code, has the power of a police officer to carry concealed weapons, make arrests, and obtain warrants for violations of any provision in those chapters. The commissioner, at any time, may suspend or revoke the commissioner's delegation by journal entry. No employee of the department will divulge any information acquired as a result of an investigation pursuant to this chapter or Chapter 3780. of the Revised Code, except as may be ordered by the commissioner or a court. (C) (1) The commissioner will not delegate any investigation powers to an employee of the department of taxation pursuant to paragraph (B) of this rule on a permanent basis, on a temporary basis, for a probationary term, or on other than a permanent basis if the employee previously has been convicted of or has pleaded guilty to a felony. (2) (a) The commissioner will revoke the delegation of investigation powers to an employee to whom the delegation was made pursuant to paragraph (B) of this rule if that employee does either of the following: (i) Pleads guilty to a felony; (ii) Pleads guilty to a misdemeanor pursuant to a negotiated plea agreement as provided in division (D) of section 2929.43 of the Revised Code in which the employee agrees to surrender the certificate awarded to that employee under section 109.77 of the Revised Code. (b) The commissioner will suspend the delegation of investigation powers to an employee to whom the delegation was made pursuant to division (B) of this rule if that employee is convicted, after trial, of a felony. If the employee files an appeal from that conviction and the conviction is upheld by the highest court to which the appeal is taken or if the employee does not file a timely appeal, the commissioner will revoke the delegation of investigation powers to that employee. If the employee files an appeal that results in that employee's acquittal of the felony or conviction of a misdemeanor, or in the dismissal of the felony charge against that employee, the commissioner will reinstate the delegation of investigation powers to that employee. The suspension, revocation, and reinstatement of the delegation of investigation powers to an employee under paragraph (C)(2) of this rule will be made by journal entry pursuant to paragraph (B) of this rule. An employee to whom the delegation of investigation powers is reinstated under paragraph (C)(2)(b) of this rule will not receive any back pay for the exercise of those investigation powers unless that employee's conviction of the felony was reversed on appeal, or the felony charge was dismissed, because the court found insufficient evidence to convict the employee of the felony. (3) Paragraph (C) of this rule does not apply regarding an offense that was committed prior to January 1, 1997. (4) The suspension or revocation of the delegation of investigation powers to an employee under paragraph (C)(2) of this rule will be in accordance with Chapter 119. of the Revised Code. Last updated September 19, 2024 at 8:53 AM Supplemental Information |