Ohio Administrative Code › Title 5703 - Department of Taxation › Chapter 5703-33 - Financial Institutions Tax › Section 5703-33-06 - General situsing provision

Current through all regulations passed and filed through July 1, 2024
(A) The situsing concepts provided herein
			 should be used in calculating the gross receipts for the apportionment factor.
As used herein, unless the context otherwise requires:
(1) "Billing address" means the location
			 indicated in the books and records of the taxpayer on the first day of the
			 taxable year (or on such later date in the taxable year when the customer
			 relationship began) as the address where any notice, statement and/or bill
			 relating to a customer's account is mailed.
(2) "Borrower or credit card holder located
			 in this state" means:
(a) A borrower, other
			 than a credit card holder, that is engaged in a trade or business which
			 maintains its commercial domicile in this state; or
(b) A borrower that is not engaged in a trade
			 or business or a credit card holder whose billing address is in this
			 state.
(3) "Card
			 issuer's reimbursement fee" means the fee a taxpayer receives from a merchant's
			 bank because one of the persons to whom the taxpayer has issued a credit,
			 debit, or similar type of card has charged merchandise or services to the
			 card.
(4) "Commercial domicile"
			 means:
(a) The headquarters of the trade or
			 business, that is, the place from which the trade or business is principally
			 managed and directed; or
(b) If a
			 taxpayer is organized under the laws of a foreign country, or of the
			 Commonwealth of Puerto Rico, or any territory or possession of the United
			 States, such taxpayer's commercial domicile shall be deemed for the purposes of
			 this rule to be the state of the United States or the District of Columbia from
			 which such taxpayer's trade or business in the United States is principally
			 managed and directed. It shall be presumed, subject to rebuttal, that the
			 location from which the taxpayer's trade or business is principally managed and
			 directed is the state of the United States or the District of Columbia to which
			 the greatest number of employees are regularly connected or out of which they
			 are working, irrespective of where the services of such employees are
			 performed, as of the last day of the taxable year.
(5) "Credit card" means a card, or other
			 means of providing information, that entitles the holder to charge the cost of
			 purchases, or a cash advance, against a line of credit.
(6) "Debit card" means a card, or other means
			 of providing information, that enables the holder to charge the cost of
			 purchases, or a cash withdrawal, against the holder's bank account or a
			 remaining balance on the card.
(7)
			 "Financial institution" has the same meaning as defined in division (H) of
			 section 5726.01 of the Revised
			 Code.
(8) "Loan" means any
			 extension of credit resulting from direct negotiations between the taxpayer and
			 its customer, and/or the purchase, in whole or in part, of such extension of
			 credit from another. Loans include participations, syndications, and leases
			 treated as loans for federal income tax purposes. Loans shall not include:
			 futures or forward contracts; options; notional principal contracts such as
			 swaps; credit card receivables, including purchased credit card relationships;
			 non-interest bearing balances due from depository institutions; cash items in
			 the process of collection; federal funds sold; securities purchased under
			 agreements to resell; assets held in a trading account; securities; interests
			 in a REMIC, or other mortgage-backed or asset-backed security; and other
			 similar items.
(9) "Loan secured by
			 real property" means that fifty per cent or more of the aggregate value of the
			 collateral used to secure a loan or other obligation, when valued at fair
			 market value as of the time the original loan or obligation was incurred, was
			 real property.
(10) "Merchant
			 discount" means the fee (or negotiated discount) charged to a merchant by the
			 taxpayer for the privilege of participating in a program whereby a credit,
			 debit, or similar type of card is accepted in payment for merchandise or
			 services sold to the card holder, net of any cardholder charge-back and
			 unreduced by any interchange transaction or issuer reimbursement fee paid to
			 another for charges or purchases made its cardholder.
(11) "Participation" means an extension of
			 credit in which an undivided ownership interest is held on a pro rata basis in
			 a single loan or pool of loans and related collateral. In a loan participation,
			 the credit originator initially makes the loan and then subsequently resells
			 all or a portion of it to other lenders. The participation may or may not be
			 known to the borrower.
(12)
			 "Person" has the same meaning as defined in section
			 5701.01 of the Revised
			 Code.
(13) "Real property owned"
			 and "tangible personal property owned" mean real and tangible personal
			 property, respectively, (1) on which the taxpayer may claim depreciation for
			 federal income tax purposes, or (2) property to which the taxpayer holds legal
			 title and on which no other person may claim depreciation for federal income
			 tax purposes (or could claim depreciation if subject to federal income tax).
			 Real and tangible personal property do not include coin, currency, or property
			 acquired in lieu of or pursuant to a foreclosure.
(14) "State" means a state of the United
			 States, the District of Columbia, the Commonwealth of Puerto Rico, any
			 territory or possession of the United States or any foreign country.
(15) "Syndication" means an extension of
			 credit in which two or more persons fund and each person is at risk only up to
			 a specified percentage of the total extension of credit or up to a specified
			 dollar amount.