Ohio has passed sales and use tax legislation expanding the scope of a taxable sale and making other changes in anticipation of its application for full member status under SSTP. The current sales tax exemption for water bought for residential use is also harmonized with the definition of sales tax-exempt “food,” which includes bottled water, distilled water, mineral water, carbonated water, and ice. To comply with notification requirements under SST, the commissioner is required to notify all vendors and sellers when local sales tax rates change due to a change in a county’s jurisdictional boundaries or a transit authority’s territory. Previously, the commissioner was only required to notify those registered through the Streamlined Sales Tax Central Electronic Registration System. Additionally, vendors making sales from a printed catalog are not required to apply changes in local sales tax rates that differ from those in the catalog until the beginning of a calendar quarter following 120 days after the commissioner notifies the vendors of the rate change. Previously, this applied only to catalog vendors registered under the Streamlined Sales Tax Central Electronic Registration System. The Tax Commissioner is allowed to cancel a vendor’s license if the vendor fails to notify the commissioner that the location of its place of business has changed or that its business has closed and ordinary mail sent to the address on the vendor’s license is returned as undeliverable. The legislation eliminates the “service vendor” and “delivery vendor” categories of sales tax vendor licenses. The commissioner retains the authority to create specific classes of vendor licenses. The bill also requires all vendors to display their vendor licenses at their places of business. Additional changes include amending the definition of taxable sales to include the transfer of ownership interests in a pass-through entity if the entity is not engaged in business and its sole assets are boats, planes, motor vehicles, or other recreational property used primarily by the entity’s owners. (H.B. 508, Laws 2012, effective September 6, 2012; Bill Analysis, Ohio Legislative Service Commission)