HB 424 Summary

• Amends Ohio's sales and use tax definitions to create a waiver process allowing delivery network companies to avoid being classified as marketplace facilitators for tax purposes.

• Adds new section 5741.072 establishing conditions for delivery network companies to request tax waivers, including being current on all taxes and not having violated prior waivers within 12 months.

• When a waiver is granted, local merchants using the delivery platform become vendors/sellers responsible for their own sales taxes rather than the delivery company collecting taxes on their behalf.

• Waivers are automatically granted if the tax commissioner does not affirmatively grant or deny within 30 days, and remain valid until revoked by the commissioner or canceled by the delivery company.

• Defines key terms including "delivery network company," "delivery network courier," "delivery network services," "local merchant," and "local product" for tax purposes.