Information Release

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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 semi-annual).

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:

Telephone: 1-800-750-0750


(1) R.C. 5740.10, as adopted in Am. Sub. H.B. 119 of the 127th Ohio General Assembly provides, in pertinent part:

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.