OH SB244

Amends Ohio Revised Code section 5739.121 to allow vendors to deduct or obtain refunds of sales tax on uncollectible balances from private label credit card accounts charged off by lenders on or after July 1, 2015.

Defines "accounts or receivables bad debt" as unpaid balances on private label credit cards that are charged off as uncollectible on a lender's books and have not previously claimed a deduction or refund under this section.

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

Requires vendors claiming deductions or refunds to maintain books and records verifying the bad debt accounts, which must be open to tax commissioner inspection upon request.

Mandates that if the vendor or lender later collects any previously written-off bad debt, the vendor must report the collected amount and pay taxes owed on the portion for which the deduction or refund was taken.