ST 2007-05 - Sales and Use Tax: Origin Sourcing of Delivery
Sales – Issued October 2007
The purpose of this Information Release is to notify vendors
in Ohio that the anticipated requirement to change to
destination sourcing for delivery sales January 1, 2008 will
not go into effect. The Tax Commissioner has determined that
a journal entry will not be issued
certifying that the Streamlined Sales Tax Governing Board has
adopted amendments to, or an interpretation of, the
Streamlined Sales Tax Agreement that would allow an exception
from the destination sourcing provisions of the Agreement for
vendors in this state with less than five hundred thousand
dollars of delivery sales in the prior calendar
year.(1) The Governing Board has not adopted any
such amendment or interpretation. As a result, under R.C.
5739.33(B)(2), as adopted by Am. Sub. H.B. 119 of the 127th
General Assembly, all vendors currently permitted to source
delivery sales on an origin basis may continue to do so.
Vendors who have not previously switched to destination
sourcing, and who were not required to so switch under prior
law, may continue to source their sales under the origin
sourcing provisions of R.C. 5739.035. All vendors that have
previously either switched voluntarily to destination
sourcing, or that were required to switch due to having made
thirty million dollars of delivery sales in Ohio in calendar
year 2005, must continue to use the destination sourcing
provisions of R.C. 5739.033 for their delivery sales.
Vendors who wish to adopt the destination sourcing provisions
of R.C. 5739.033 may irrevocably elect to do so at any time.
No formal notice of this election is required to be provided
to this Department. Any such change should be made at the
beginning of the vendor’s tax return period (monthly or
Providers of telecommunications services that source their
sales under the provisions of R.C. 5739.034 must continue to
source their sales in that manner. Out-of-state sellers that
collect Ohio tax must continue to collect tax on a
destination basis as provided in R.C. 5741.05.
If you have any questions regarding this information release,
please contact Taxpayer Services at 1-888-405-4039, or e-mail
us through our Web site: tax.ohio.gov.
OHIO RELAY SERVICES FOR THE
HEARING AND SPEECH IMPAIRED
(1) R.C. 5740.10, as adopted in Am. Sub. H.B. 119 of
the 127th Ohio General Assembly provides, in pertinent
If the tax commissioner determines, on or before October 1,
2007, that the agreement has been amended or interpreted by
the streamlined sales tax governing board to allow,
beginning January 1, 2008, a vendor with total annual
delivery sales within this state of less than five hundred
thousand dollars in a prior calendar year, beginning with
calendar year 2007, to situs its sales under section
5739.035 of the Revised Code, the commissioner shall
certify that determination by journal entry on or before
that date, shall provide notice of the determination on the
department of taxation's web site, and shall notify vendors
and sellers the commissioner reasonably believes to be
affected by the certification.