To amend sections 5739.02 and 5739.03 of the Revised Code to exempt from sales and use tax building materials sold to a contractor under a contract valued at $25 million or more for projects in areas with a port authority.
Summary
HB147 would expand Ohio’s sales and use tax exemptions for construction-related purchases. The bill amends sections 5739.02 and 5739.03 of the Revised Code to exempt building materials sold to a contractor when the contractor is working under a construction contract valued at $25 million or more, so long as the project is located in an area with a port authority. The measure is framed as a targeted incentive for large-scale development projects tied to port authority jurisdictions.
The bill’s operative change is narrow but significant: it adds a new exemption category to the state sales tax code for qualifying construction materials and related services on eligible projects. It also preserves the existing exemption-certification and refund procedures in the sales tax statutes, and the amendment would take effect on the first day of the first month after enactment. In practical terms, contractors and project owners meeting the bill’s thresholds would pay less tax on eligible building materials, reducing project costs and potentially making large developments more financially feasible.
Impact
HB147 would amend Ohio’s general sales tax law in sections 5739.02 and 5739.03 by adding a new exemption for building materials sold to contractors on qualifying large construction contracts in port authority areas. This would reduce taxable sales for affected contractors, suppliers, and project owners, while decreasing sales and use tax revenue collected by the state and any local jurisdictions that rely on the same tax base. The bill does not repeal the broader sales tax structure, but it would create another specific carve-out within an already extensive list of exemptions.
Sentiment
Because the bill was only introduced and had no recorded committee testimony or votes in the provided materials, there is no clear legislative record of support or opposition. The bill’s design suggests a pro-development, business-friendly policy approach, and its caption indicates an intent to encourage major projects in port authority areas. With no debate transcript or vote history available, sentiment can only be characterized as neutral-to-supportive based on the bill’s economic development purpose.
Contention
The main point of potential contention is the bill’s targeted tax preference: it benefits only projects with contracts of at least $25 million in areas with a port authority, which may raise fairness concerns from lawmakers or stakeholders who prefer broader, more uniform tax policy. Opponents could also question the fiscal impact of exempting construction materials from tax revenue, while supporters are likely to argue that the exemption helps attract or complete large-scale infrastructure and development projects. No specific objections or amendments are documented in the provided record.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
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