OH HB223

Amends Ohio Revised Code section 5739.121 to allow vendors to deduct sales tax on bad debts charged off as uncollectible by credit account lenders on or after July 1, 2023.

Defines "accounts or receivables bad debt" as unpaid balances on private label credit accounts that are charged off as uncollectible on a lender's books, without regard to when the debt became worthless.

Requires vendors claiming the deduction to include all outstanding credit sale transactions in the account or receivable when it is charged off as uncollectible, regardless of the transaction date.

Allows vendors to carry forward and deduct excess accounts or receivables bad debt on succeeding tax returns if the monthly amount exceeds taxable sales for that month.

Requires vendors to maintain books and records verifying the bad debt, which are subject to inspection by the tax commissioner, and mandates repayment of deducted taxes if the lender subsequently collects any portion of the debt.