OH HB404

Amends Ohio Revised Code section 5739.121 to allow vendors to deduct or claim refunds for sales tax remitted on bad debts related to private label credit cards, effective for accounts charged off as uncollectible on or after July 1, 2016.

Defines "accounts or receivables bad debt" as unpaid balances on private label credit card accounts that are charged off as uncollectible by a lender and have not previously received a deduction or refund under this section.

Permits vendors to claim deductions or refunds only for bad debts from purchases made on private label credit cards bearing the vendor's name or logo, or from the vendor's affiliates or franchisees.

Requires vendors to maintain books and records verifying the bad debts, which must be open to inspection by the tax commissioner, and to repay taxes on any accounts or receivables bad debt that are later collected.

Repeals the existing section 5739.121 and authorizes the tax commissioner to adopt rules necessary to administer the amended provisions.