The Ohio General Assembly has enacted SB 218 in response to destination-based sourcing legislation, which will take effect July 1, 2005. Provisions outlined in the bill provide for a six-month transition period during which vendors can receive minimal compensation for expenses associated with the changeover to destination-based sourcing. Counties with a population of less than 75,000 are also eligible to receive permanent compensation if their tax revenues decrease by at least 4% as a result of the destination-based sourcing. Another component of SB 218 requires that the Ohio Tax Commissioner encourage among the SSTIS the adoption of an amendment to the Agreement which would allow certain businesses to continue to use an origin-based sourcing system. In coordination with this, Ohio has introduced a new bill (SB 26) which delays the implementation of destination-based sourcing for small businesses. This legislation was originally introduced in the 2003-2004 but failed to be enacted prior to the end of the session. If SB 26 is enacted, Ohio businesses with taxable sales in 2004 of less than $5 million will be allowed to use origin-based sourcing until January 1, 2007. Vendors with total taxable sales in 2006 of less than $3 million could delay destination-based sourcing until 2008. Those with taxable sales for the year 2007 of less than $1 million could delay the implementation of destination-based sourcing until sales in any calendar year after January 1, 2009 were greater that $1 million. (SB 218, Ohio General Assembly, effective January 28, 2005; SB 26, Ohio General Assembly, introduced January 26, 2005.)