Personal Property Tax

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) 'Receipt' 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.