1. Become familiar with the new Ohio Revised Code by clicking on the
following link: Sourcing Law Change Update from the Ohio Department of Taxation

2. Contact Martin and Associates and ask how the Sales Tax Management
module can help or read about it here.

3. Contact the CCH Group and ask about ordering the ZipSales Database to
work with Martin and Associates' Sales Tax Management module.

Sourcing Law Change
This information release addresses a change in how Ohio sales tax is charged (sourced) on certain transactions involving the sale and delivery of goods and the adoption of a six-month transition period in which to make the change.

Ohio lawmakers recently passed a sales tax law that will allow retailers more time to implement the sourcing changes made in section 5739.033 of the Revised Code. Vendors (retailers) can now voluntarily implement the sourcing change beginning January 1, 2005, but must complete the transition to the new sourcing provisions by January 1, 2008. However, there are two intermediate thresholds that may require compliance before that date. If the vendor has taxable delivery sales in excess of $30 million in 2005, the vendor must change to destination sourcing on May 1, 2006. If the vendor has taxable delivery sales in excess of $5 million in 2006, the vendor must change to destination sourcing on May 1, 2007. Once a vendor changes to charging sales tax on destination sourcing, they may not return to origin based sourcing.

As you may know, the new sourcing provisions will require Ohio retailers that sell and then ship or deliver their goods across county lines in Ohio to charge the sales tax rate that exists in the county where the merchandise will be delivered, not the rate where it is sold. The change will not affect retailers that sell merchandise that is carried away by customers.

The Ohio Department of Taxation understands that some retailers will have to change the business systems they use in order to determine the correct amount of sales tax to charge their customers. To that end, the Department is developing a free, web-based system that will enable retailers (and others) to inquire on-line about an address and/or zip code and obtain the correct sales tax rate to charge.

For additional assistance, call The Ohio Department of Taxation's dedicated, toll-free number for inquiries about streamlined sales tax issues at 1-800-304-3211, contact Taxpayer Services at 1-888-405-4039, or e-mail through their web site: tax.ohio.gov.