Cost of a vendor's license doubles - but for good cause

CELINA - Last week, the cost to apply for a new vendor's license in Ohio jumped from $25 to $50 to help law enforcement take a bite out of organized retail theft harming both retailers and consumers.

The additional $25 from both county vendor's licenses and transient vendor's licenses will go to Ohio's Organized Crime Investigations Commission to investigate retail theft activity, including cargo theft and any complaint received involving retail theft, according to a summary of House Bill 366, which took effect April 9, provided by the Ohio Legislative Service Commission.

Moreover, the newly enacted legislation creates the offense of organized theft of retail property and specifies the crime generally as a third degree felony but allows for it to escalate as high as a first degree felony depending on the value of the property purloined and other circumstances, the summary shows.

Ohio Attorney General Dave Yost's office said it co-authored the legislation that "cracks down on crime rings that steal billions of dollars of merchandise from Ohio retailers each year, fueling higher prices for consumers."

"Consumers bear the cost when organized retail theft goes unchecked," Yost said in a statement. "With this law, we aim to make sure the thieves are the ones who pay the price."

The Ohio Council of Retail Merchants estimates that organized retail theft costs Ohio businesses $2 billion to $3 billion annually, according to a news release from Yost's office. Yost's office said the crime typically involves groups stealing large amounts of merchandise from multiple stores and selling the items for profit. To offset the losses, some retailers have little choice but to raise prices.

The new law also enhances penalties for repeat theft offenders, setting a minimum fourth-degree felony charge for thefts committed by individuals who have a felony-theft conviction within the previous three years.

"These criminals rely on safety in numbers, but it's a false sense of security," Yost said. "We now can charge them as a group, making it easier to convict and imprison thieves who target retailers as part of a crime ring."

What is a vendor's license?

According to the legislation summary, any person engaged in making retail sales subject to sales tax is required to have a vendor's license. Application for a vendor's license must be made to the county auditor of each county in which the applicant wants to engage in business.

A transient vendor license, according to the Ohio Society of CPAs, is specifically for businesses without a fixed location that sell goods or services temporarily in a county, usually at events like fairs, markets or festivals.

Sara Scott, the chief deputy of real estate in the Mercer County Auditor's Office, said while the vendor's license can be obtained through her office, transient vendor's licenses must be applied for through the Ohio Business Gateway, a time- and money-saving online filing and payment system.

"Once a license is purchased they are good until the business decides they no longer need it or close a business, which they would do directly with the state," Scott told The Daily Standard. "We may average 1-2 a month, if that."

The county auditor's office, she said, issued 112 county vendor's licenses in 2022, 103 in 2023 and 95 in 2024, together generating $7,750, which flowed into the county's general fund that is responsible for day-to-day operations.

"I believe we do not see any monies generated from the transient vendor's licenses," Scott said.

Asked by the newspaper, Scott said she believes most business owners are aware of the license requirement and comply with the law.

The additional $25 collected from each vendor license issued by the county will be transferred to the state treasurer's office.

Organized Retail Theft Advisory Council

Yost's office said along with tougher penalties, House Bill 366 establishes a new task force under its Organized Crime Investigations Commission to investigate organized retail theft statewide.

To support the task force, the law calls for the formation of the Organized Retail Theft Advisory Council, a group consisting of the attorney general and representatives from the Ohio Prosecuting Attorneys Association, Ohio Council of Retail Merchants and Ohio Grocers Association, among others, according to the release.

Yost's office crafted the law in partnership with the Ohio Council of Retail Merchants and the Ohio Chamber of Commerce.

"We are extremely pleased with the passage of House Bill 366, known as the Fight Organized Retail Crime and Empower Law Enforcement Act," Gordon Gough, president and CEO of the Ohio Council of Retail Merchants, said in a statement. "This law makes Ohio a leader in combating the scourge of organized retail crime afflicting retailers and consumers."   House Bill 366, Gough said, brings valuable resources to state and local law enforcement through funding and the establishment of the statewide task force housed in Yost's Office.

"In addition, it will help facilitate direct collaboration between retail loss prevention executives, law enforcement and prosecutors," he continued. "Lastly, the legislation makes necessary changes to our statutes to better address the dynamic and constantly evolving trends in organized retail crime."