OH SB188

Amends section 5739.121 of the Revised Code to allow vendors to deduct or obtain refunds of sales tax remitted 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 charged off as uncollectible on a lender's books on or after the effective date of the bill, without prior deduction or refund claims.

Permits vendors to claim deductions or refunds only for bad debt from purchases made from the vendor whose name is carried on the private label credit account or from the vendor's affiliates or franchisees.

Requires vendors claiming deductions or refunds to maintain books and records documenting the bad debt, subject to inspection by the tax commissioner, and to remit tax if any portion of the bad debt is later collected.

Allows refund claims to be filed within four years of the due date of the return on which the bad debt was first claimed.