Ohio Administrative Code
Title 5703 - Department of Taxation
Chapter 5703-9 - Sales and Use Tax
Section 5703-9-05 - Transactions where tangible personal property is or is to be stored
Universal Citation: OH Admin Code 5703-9-05
Current through all regulations passed and filed through September 16, 2024
(A) A transaction in which "tangible personal property is or is to be stored" under division (B) (9) of section 5739.01 of the Revised Code means transactions involving any keeping or holding of another's tangible personal property or any provision of space that is used to store another's tangible personal property.
(B) In a transaction in which "tangible personal property is or is to be stored" pursuant to division (B)(9) of section 5739.01 of the Revised Code, it is not relevant whether the storage of the tangible personal property is at a location that constitutes personal property or real property. The tax must be charged on the full fee or charge for the transaction. Accordingly, the tax imposed under that division is not subject to division (A)(2) of section 5739.02 of the Revised Code, or division (A)(2) of section 5741.02 of the Revised Code.
(C) "Tangible personal property is or is to be stored" includes, but is not limited to, the following and other similar transactions:
(1) Except as
provided in paragraph (D) of this rule, the holding of tangible personal
property for the consumer for which there is a charge;
(2) The short-term or long-term holding of
clothing for a consumer in a vault or other facility;
(3) Any other bailment of personal property
for which a fee is charged;
(4) The
provision of a locker, self-storage unit, building, or other property, both
real and personal, for the lessee's or renter's use in storing tangible
personal property;
(5) The
provision of dry-dockage, drysail docking or of out-of-water storage for
watercraft;
(6) The provision of
safe deposit boxes;
(7) Except for
parking as provided in paragraph (D)(2) of this rule, the holding of, or
provision of space to keep a motor vehicle: or
(8) Airplane storage. "Airplane storage" is
an aircraft at rest, either in a hangar or by tie-downs, during which the
engine of the aircraft is not maintained in an active or operational condition
pursuant to the directives found in the "Pilot's Operating Handbook" for the
aircraft.
(D) "Tangible personal property is or is to be stored" does not include the following or other similar transactions:
(1) Storage of
tangible personal property held by the consumer for sale in the regular course
of the consumer's business, including raw materials and
work-in-progress;
(2) Parking
provided as an adjunct to residential accommodations and parking in a public or
private commercial facility or lot, used for the parking of vehicles. Parking
of vehicles is to be distinguished from the storage of vehicles. Examples of
parking would include parking at an airport and parking in a parking lot where
the fee is paid on a monthly basis. An example of storage would include the
storing of a collectible automobile that is occasionally removed and
returned;
(3) The in-water moorage
of watercraft at a dock or pier;
(4) The kenneling or boarding of an animal
where the true object of such service involves animal care that includes
additional services such as the care and feeding of the animal and the charges
for such additional services are not separately stated;
(5) The provision of private
mailboxes; or
(6) Bailments where no fee is imposed as a
condition of the bailment, even if tipping is permitted.
(E)
(1)
Determination of the tax due on currency or coin-operated storage modules, such
as coin-operated lockers, shall be made either by using the pre-determined
method provided in this paragraph or by a method approved by the tax
commissioner under section
5739.05 of the Revised Code.
Vendors using the following predetermined method do not need to apply to the
tax commissioner for authorization:
(a) The
average charge per transaction is broken down into two components, one
representing price and the other representing sales tax.
(b) The average charge per transaction for
the reporting period shall be determined and divided by the sum of one plus the
percentage total rate of tax applicable in the taxing jurisdiction which the
storage space is located to arrive at the "price component" of the average
charge per transaction. Any fraction of a cent included in such price shall be
dropped.
(c) The average charge per
transaction minus the "price component" determined under paragraph (E)(1)(b) of
this rule yields the "sales tax component."
(d) The total receipts for the reporting
period shall be divided by the average charge per transaction to arrive at the
number of transactions.
(e) The
number of transactions as determined under paragraph (E)(1)(d) of this rule
shall be multiplied by the "sales tax component" determined under paragraph
(E)(1)(c) of this rule. This result is the amount to report as the tax on such
sales for the reporting period. Taxable sales for the reporting period is total
receipts less the sales tax.
(2) The following is an example of the
procedure to be used pursuant to paragraphs (E)(1)(b) to (E)(1)(e) of this
rule:
(a) The average charge per transaction
is fifty cents and the rate for the taxing jurisdiction is seven per cent. The
resulting calculation under paragraph (E)(1)(b) of this rule is $ 0.46728972,
($ 0.50 / 1.07) The fractions of a cent
are dropped, yielding a "price component" of forty-six cents for the average
charge per transaction.
(b) The
forty-six-cent "price component" of the transaction is subtracted from the
fifty-cent average charge per transaction, resulting in the "sales tax
component" of four cents included in each fifty-cent charge.
(c) The total receipts of $1, 025.25 are
divided by the fifty-cent average charge to arrive at 2, 050.5, the number of
transactions.
(d) The 2, 050.5
transactions are multiplied by the "sales tax component" of four cents per
transaction, resulting in the amount to report as the tax on such sales of $
82.02.
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