County Bulletin
TO: All County Auditors - Bulletin No. 160
FROM: Stanley J. Bowers, Tax Commissioner
RE: Grain Handlers
DATE: August 3, 1961
Sections 5737.01 and 5737.02, of the Revised Code of Ohio,
have been amended effective August 16, 1961, by the enactment
of Amended House Bill No 76 by the 104th General Assembly to
read as follows:
Section 5737.01
"As used in sections 5737.01 to 5737.08, inclusive, of the
Revised Code:
"(A) 'Person' includes individuals, corporations, firms, and
associations of whatsoever form.
:"(B) 'Handling' includes the receipt of grain and the
purchase of grain in connection with or as part' of any
business, with the exceptions and exemptions mentioned in
this section and in section 5737.02 of the Revised Code.
"(C) 'Reciept' and 'received' means the acquisition of actual
custody or possession at or in an elevator, warehouse, store,
mill, or other facility for the storage, accumulation, sale
or processing of grain for the purpose, but do not include
transactions for the purpose only of guaranteeing warehouse
receipts to be used as security.
"(D) 'Purchase' and 'purchased' mean the acquisition of
title without custody of possession, but do not include
transactions for the purpose only of guaranteeing warehouse
receipts to be used as security.
"(E) 'Grain' includes all commercial field seeds in their
natural state, or when hulled, cleaned, dried, graded, or
polished, but excludes such seeds when otherwise processed
and the products of such processing.
"(F) 'Assessor', 'return', 'assessment', 'general personal
duplicate, 'taxing district' have the meaning assigned
thereto by the laws relating to the taxation of personal
property.
"(G) 'Track buyer' means any person who buys and sells grain
of any kind from other persons engaged in the elevator and
grain business and who does not have actual possession of
such grain in his own warehouse or on his own premises, but
who handles commercial paper only and not the actual grain."
Section 5737.02
"Sections 5737.01 to 5737.08, inclusive, of the Revised Code
do not apply to a pubic utility, as defined in the taxation
laws of this state, nor to a farmer as to grain raised and
stored, kept, or found on owned or operated by himself.
Such sections do not exempt any person engaged in any
business taxed by such sections as to grain which is not
otherwise subject to taxation in this state from the tax
imposed by sections 5737.01 to 5737.08, inclusive, of Revised
Code and all such grain shall be included in the statements
required and the assessments authorized and required by such
sections."
The net effect of these two enactments was to reverse the
action taken by the 103rd General Assembly two years ago in
passing House Bill No. 525. As a result, manufacturing
using grain as a raw material will be permitted to report
such grain as a grain handler until such time as it is placed
in process. At this point it becomes work in process
inventory of a manufacturer and is assessable in Schedule 3
of the return.
In review of the above, County Auditor Bulletin No. 144,
issued December 9, 1959, and the third paragraph on page 5
County Auditor Bulletin No. 138, issued August 12, 1959 are
hereby rescinded.