OH HB112

Amends Ohio Revised Code section 5739.121 to allow vendors to claim deductions or refunds for sales taxes on "accounts or receivables bad debt" charged off as uncollectible by lenders on private label credit accounts.

Defines "accounts or receivables bad debt" as unpaid balances on private label credit accounts that are bad debt and charged off as uncollectible on a lender's books on or after the bill's effective date, without prior deductions or refunds claimed.

Restricts deductions and refunds to vendors whose name is carried, referred to, or branded on the private label credit account or to purchases from the vendor's affiliates or franchisees.

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

Mandates that if a vendor collects any previously deducted or refunded bad debt, the vendor must include the amount collected in the next return filed and pay tax on the portion for which the deduction or refund was taken.