Current through all regulations passed and filed through September 16, 2024
For purposes of the administration of
the tax levied under section
3780.22 of the Revised Code, the
following applies:
(A)
The text of section
5739.07 of the Revised Code is
hereby incorporated herein except that wherever the term "vendor" appears in
that section substitute "adult use dispensary", wherever the term "consumer"
appears in that section substitute "adult use consumer", wherever the term
"this chapter" appears in that section substitute "Chapter 3780. of the Revised
Code", and wherever the term "5739.132 of the Revised Code" appears in that
section substitute "rule 5703-43-08 of the Administrative
Code".
(B)
The text of section
5739.072 of the Revised Code is
hereby incorporated herein except that wherever the term "section
5739.33" appears in that section
substitute "paragraph (C) of rule 5703-43-08 of the Administrative
Code".
(C)
(1)
An application
for refund of adult use cannabis tax illegally or erroneously paid will be made
on a form prescribed by the commissioner and filed with the department of
taxation in accordance with instructions thereon. The application may be filed
by a taxpayer, adult use consumer, or by a tax representative. The application
will state the basis for the refund, i.e., why the payment of tax was illegal
or erroneous.
(2)
The department will deny applications if the refund
application form is incomplete and a complete listing of every invoice included
in the refund application is not provided. If the refund application includes
twenty-five or more invoices, the listing will be provided in an electronic
spreadsheet.
(3)
An application filed by a taxpayer or tax
representative will show that the tax was remitted to the state. The taxpayer
or tax representative will submit one original, fully-completed refund
application form and one set of the following supporting documentation:
(a)
Copies of
original invoices or similar documents.
(b)
Copies of credit
memos, a statement from the adult use consumer, signed by the adult use
consumer with specified amounts, agreeing to await reimbursement of the tax
until final determination of the refund claim, or some other proof that the
accounts receivable was adjusted for the tax or account
activity.
(c)
A spreadsheet provided electronically for all claims
containing twenty- five or more invoices. The spreadsheet will be provided in a
compatible format, needs to list every invoice separately, and the total should
equal the amount requested on the refund application.
(d)
If the claim is
due to an amended return, proof need be provided of the original and amended
figures for the period or periods claimed on the refund application. The proof
may consist of sales journals, cash register receipts, summary reports or any
other document used to prepare the tax return.
(e)
Copies of accrual
sheets for the periods referenced on the refund application if tax was
erroneously accrued on purchases.
(4)
An application
filed by an adult use consumer will show that the adult use consumer paid the
tax to the taxpayer. The application will also show that the adult use consumer
first requested a refund of the tax from the taxpayer and the taxpayer denied
the request. The adult use consumer will provide one original, fully-completed
refund application form and one set of the following supporting
documentation:
(a)
Copies of original invoices or similar
documents.
(b)
Copies of canceled checks or some other proof that the
invoices were paid in full, including the tax.
(c)
A spreadsheet
provided electronically for all claims containing twenty-five or more invoices.
The spreadsheet will be provided in a compatible format, needs to list every
invoice separately, and the total should equal the amount requested on the
refund application.
(d)
The reason why the payment of the tax was illegal or
erroneous. If the adult use consumer is claiming a use-based exemption, the
adult use consumer will supply a detailed description of how the cannabis was
used. References to the Revised Code or legal opinions, alone, are insufficient
to substantiate a refund request.
(5)
An application
for refund of adult use cannabis tax needs to be filed within the period
specified by paragraph (A) of this rule. Tax is paid on the date it is remitted
to the state and not on the date it is collected by a taxpayer from an adult
use consumer.
(D)
(1)
An adult use
consumer seeking refund of over-collected adult use cannabis tax need first
request a refund from the taxpayer that collected the tax in question. A
request for refund from a taxpayer is not an application for refund to the
commissioner.
(2)
If a taxpayer denies an adult use consumer's refund
request, the adult use consumer may file an application for refund with the
commissioner pursuant to paragraph (C)(4) of this rule. Requesting a refund
directly from the commissioner is the adult use consumer's sole remedy to claim
a refund of the tax. Any such application needs to be filed with the
commissioner within the time prescribed in paragraph (C)(5) of this
rule.
(E)
Any refund amount that is determined to be due a
taxpayer based on an application for refund of adult use cannabis tax will
first be applied to any outstanding indebtedness of that taxpayer pursuant to
paragraph (B) of this rule or in accordance with section
5703.77 of the Revised Code. Any
amount remaining after the satisfaction of such outstanding indebtedness will
be paid to the taxpayer.
