As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 483 5
1999-2000 6
REPRESENTATIVE MOTTLEY 8
_________________________________________________________________ 9
A B I L L
To amend sections 718.01 and 718.02 and to enact 11
sections 718.21, 718.22, 718.23, 718.24, 718.25, 12
718.26, 718.27, 718.28, 718.29, and 718.30 of the
Revised Code to prescribe a uniform set of 14
procedures for municipal taxation of electric
companies. 15
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 17
Section 1. That sections 718.01 and 718.02 be amended and 19
sections 718.21, 718.22, 718.23, 718.24, 718.25, 718.26, 718.27, 20
718.28, 718.29, and 718.30 of the Revised Code be enacted to read 21
as follows:
Sec. 718.01. (A) As used in this chapter: 30
(1) "Internal Revenue Code" means the Internal Revenue 32
Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. 34
(2) "Schedule C" means internal revenue service schedule C 36
filed by a taxpayer pursuant to the Internal Revenue Code. 38
(3) "Form 2106" means internal revenue service form 2106 40
filed by a taxpayer pursuant to the Internal Revenue Code. 42
(4) "Intangible income" means income of any of the 44
following types: income yield, interest, dividends, or other 46
income arising from the ownership, sale, exchange, or other 47
disposition of intangible property including, but not limited to, 48
investments, deposits, money, or credits as those terms are
defined in Chapter 5701. of the Revised Code. 49
(5) "TAX YEAR" MEANS THE CALENDAR YEAR IN WHICH THE ANNUAL 52
REPORT IS REQUIRED TO BE FILED UNDER SECTION 718.21 OF THE 53
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REVISED CODE.
(6) "TAXABLE YEAR" MEANS THE ANNUAL ACCOUNTING PERIOD OF 55
AN ELECTRIC COMPANY OR COMBINED COMPANY THAT ENDS ON THE DAY 57
IMMEDIATELY PRECEDING THE DAY OF COMMENCEMENT OF THE COMPANY'S 58
ANNUAL ACCOUNTING PERIOD THAT INCLUDES THE FIRST DAY OF JANUARY 60
OF THE TAX YEAR. 61
(7) "ELECTRIC COMPANY" AND "COMBINED COMPANY" HAVE THE 63
SAME MEANINGS AS IN SECTION 5727.01 OF THE REVISED CODE. 64
(B) No municipal corporation with respect to that income 66
that it may tax shall tax such income at other than a uniform 68
rate.
(C) No municipal corporation shall levy a tax on income at 70
a rate in excess of one per cent without having obtained the 71
approval of the excess by a majority of the electors of the 72
municipality voting on the question at a general, primary, or 73
special election. The legislative authority of the municipal 74
corporation shall file with the board of elections at least
seventy-five days before the day of the election a copy of the 75
ordinance together with a resolution specifying the date the 76
election is to be held and directing the board of elections to 77
conduct the election. The ballot shall be in the following form: 78
"Shall the Ordinance providing for a ... per cent levy on income 79
for (Brief description of the purpose of the proposed levy) be
passed? 80
FOR THE INCOME TAX 82
AGAINST THE INCOME TAX" 84
In the event of an affirmative vote, the proceeds of the 86
levy may be used only for the specified purpose. 87
(D)(1) Except as otherwise provided in division (D)(2) of 89
this section, no municipal corporation shall exempt from a tax on 90
income, compensation for personal services of individuals over 91
eighteen years of age or the net profit from a business or 92
profession.
(2) The legislative authority of a municipal corporation 94
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may, by ordinance or resolution, exempt from a tax on income any 95
compensation arising from the grant, sale, exchange, or other 96
disposition of a stock option; the exercise of a stock option; or 97
the sale, exchange, or other disposition of stock purchased under 98
a stock option.
(E) Nothing in this section shall prevent a municipal 100
corporation from permitting lawful deductions as prescribed by 101
ordinance. If a taxpayer's taxable income includes income 102
against which the taxpayer has taken a deduction for federal 103
income tax purposes as reportable on the taxpayer's form 2106, 104
and against which a like deduction has not been allowed by the
municipal corporation, the municipal corporation shall deduct 105
from the taxpayer's taxable income an amount equal to the 106
deduction shown on such form allowable against such income, to 107
the extent not otherwise so allowed as a deduction by the 108
municipal corporation. In the case of a taxpayer who has a net
profit from a business or profession that is operated as a sole 109
proprietorship, no municipal corporation may tax or use as the 110
base for determining the amount of the net profit that shall be 111
considered as having a taxable situs in the municipal 112
corporation, a greater amount than the net profit reported by the
taxpayer on schedule C filed in reference to the year in question 113
as taxable income from such sole proprietorship, except as 114
otherwise specifically provided by ordinance or regulation. 115
(F) No municipal corporation shall tax any of the 117
following:
(1) The military pay or allowances of members of the armed 119
forces of the United States and of members of their reserve 120
components, including the Ohio national guard; 121
(2) The income of religious, fraternal, charitable, 123
scientific, literary, or educational institutions to the extent 124
that such income is derived from tax-exempt real estate, 125
tax-exempt tangible or intangible property, or tax-exempt 126
activities;
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(3) Except as otherwise provided in division (G) of this 128
section, intangible income; 129
(4) Compensation paid under section 3501.28 or 3501.36 of 131
the Revised Code to a person serving as a precinct election 132
official, to the extent that such compensation does not exceed 133
one thousand dollars annually. Such compensation in excess of 134
one thousand dollars may be subjected to taxation by a municipal
corporation. A municipal corporation shall not require the payer 135
of such compensation to withhold any tax from that compensation. 136
(5) Compensation paid to an employee of a transit 138
authority, regional transit authority, or regional transit 139
commission created under Chapter 306. of the Revised Code for 140
operating a transit bus or other motor vehicle for the authority 141
or commission in or through the municipal corporation, unless the
bus or vehicle is operated on a regularly scheduled route, the 142
operator is subject to such a tax by reason of residence or 143
domicile in the municipal corporation, or the headquarters of the 144
authority or commission is located within the municipal 145
corporation.
(6) The income of a public utility when that public 147
utility is subject to the tax levied under section 5727.24 or 148
5727.30 of the Revised Code, except starting January 1, 2002, the 149
income of an electric company or combined company, as defined in 150
section 5727.01 of the Revised Code, may be taxed by a municipal 152
corporation. For a combined company, only the income attributed 153
from the activity of an electric company shall be subject to
taxation by a municipal corporation. The income of an electric 154
company or combined company subject to taxation by a municipal 155
corporation shall be computed by taking into account the 156
adjustments provided by division (I)(16) of section 5733.04 of 157
the Revised Code. 158
(G) Any municipal corporation that taxes any type of 160
intangible income on March 29, 1988, pursuant to Section 3 of 161
Amended Substitute Senate Bill No. 238 of the 116th general 162
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assembly, may continue to tax that type of income after 1988 if a 163
majority of the electors of the municipal corporation voting on 164
the question of whether to permit the taxation of that type of
intangible income after 1988 vote in favor thereof at an election 165
held on November 8, 1988. 166
(H) Nothing in this section or section 718.02 of the 168
Revised Code shall authorize the levy of any tax on income that a 169
municipal corporation is not authorized to levy under existing 171
laws or shall require a municipal corporation to allow a 172
deduction from taxable income for losses incurred from a sole 173
proprietorship or partnership.
Sec. 718.02. (A) THIS SECTION DOES NOT APPLY TO ELECTRIC 183
COMPANIES OR COMBINED COMPANIES.
(A) In the taxation of income which THAT is subject to 186
municipal income taxes, if the books and records of a taxpayer 187
conducting a business or profession both within and without the 188
boundaries of a municipal corporation shall disclose with 189
reasonable accuracy what portion of its net profit is
attributable to that part of the business or profession conducted 190
within the boundaries of the municipal corporation, then only 191
such portion shall be considered as having a taxable situs in 192
such municipal corporation for purposes of municipal income 193
taxation. In the absence of such records, net profit from a 194
business or profession conducted both within and without the 195
boundaries of a municipal corporation shall be considered as 196
having a taxable situs in such municipal corporation for purposes 197
of municipal income taxation in the same proportion as the 198
average ratio of: 199
(1) The average net book value of the real and tangible 201
personal property owned or used by the taxpayer in the business 202
or profession in such municipal corporation during the taxable 203
period to the average net book value of all of the real and 204
tangible personal property owned or used by the taxpayer in the 205
business or profession during the same period, wherever situated. 206
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As used in the preceding paragraph, real property shall 208
include property rented or leased by the taxpayer and the value 209
of such property shall be determined by multiplying the annual 210
rental thereon by eight; 211
(2) Wages, salaries, and other compensation paid during 213
the taxable period to persons employed in the business or 214
profession for services performed in such municipal corporation 215
to wages, salaries, and other compensation paid during the same 216
period to persons employed in the business or profession, 217
wherever their services are performed; 218
(3) Gross receipts of the business or profession from 220
sales made and services performed during the taxable period in 221
such municipal corporation to gross receipts of the business or 222
profession during the same period from sales and services, 223
wherever made or performed. 224
In the event that the foregoing allocation formula does not 226
produce an equitable result, another basis may, under uniform 227
regulations, be substituted so as to produce such result. 228
(B) As used in division (A) of this section, "sales made 230
in a municipal corporation" mean: 231
(1) All sales of tangible personal property which is 233
delivered within such municipal corporation regardless of where 234
title passes if shipped or delivered from a stock of goods within 235
such municipal corporation; 236
(2) All sales of tangible personal property which is 238
delivered within such municipal corporation regardless of where 239
title passes even though transported from a point outside such 240
municipal corporation if the taxpayer is regularly engaged 241
through its own employees in the solicitation or promotion of 242
sales within such municipal corporation and the sales result from 243
such solicitation or promotion; 244
(3) All sales of tangible personal property which is 246
shipped from a place within such municipal corporation to 247
purchasers outside such municipal corporation regardless of where 248
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title passes if the taxpayer is not, through its own employees, 249
regularly engaged in the solicitation or promotion of sales at 250
the place where delivery is made. 251
Sec. 718.21. (A) AS USED IN THIS SECTION: 254
(1) "NET INCOME" MEANS NET INCOME AS DETERMINED UNDER 257
SECTION 5733.04 OF THE REVISED CODE FOR THE TAXABLE YEAR ENDING 259
BEFORE THE FIRST DAY OF JANUARY OF THE TAX YEAR AND AS ALLOCATED 261
AND APPORTIONED TO THIS STATE UNDER SECTIONS 5733.05 AND 262
5733.051, AND SUBJECT TO SECTIONS 5733.052, 5733.053, AND
5733.057, 5733.058, 5733.059, AND 5733.0510 OF THE REVISED CODE. 263
(2) "PROPERTY FACTOR" MEANS, WITH RESPECT TO A MUNICIPAL 265
CORPORATION AND AN ELECTRIC COMPANY OR COMBINED COMPANY, THE 266
QUOTIENT OBTAINED BY DIVIDING (a) THE COST OF THE COMPANY'S REAL 269
AND TANGIBLE PERSONAL PROPERTY USED TO GENERATE, TRANSMIT, OR
DISTRIBUTE ELECTRICITY AND SITUATED IN THE MUNICIPAL CORPORATION 270
BY (b) THE COST OF THE COMPANY'S REAL AND TANGIBLE PERSONAL 272
PROPERTY SITUATED IN THIS STATE. IF A COMPANY RENTS OR LEASES 274
REAL OR TANGIBLE PERSONAL PROPERTY IN THIS STATE AND USES THE
PROPERTY TO GENERATE, TRANSMIT, OR DISTRIBUTE ELECTRICITY, THE 276
COST OF THE PROPERTY SHALL BE DETERMINED FOR THE PURPOSES OF THIS 277
SECTION BY MULTIPLYING THE NET ANNUAL RENTAL ON THE PROPERTY BY 278
EIGHT. "NET ANNUAL RENTAL RATE" MEANS THE ANNUAL RENTAL RATE 279
PAID BY THE COMPANY LESS ANY ANNUAL RENTAL RATE RECEIVED BY THE 280
COMPANY FROM SUBRENTALS. 281
(3) "PAYROLL FACTOR" MEANS, WITH RESPECT TO A MUNICIPAL 283
CORPORATION AND AN ELECTRIC COMPANY OR COMBINED COMPANY, THE 284
QUOTIENT OBTAINED BY DIVIDING (a) THE TOTAL AMOUNT OF 285
COMPENSATION PAID BY THE COMPANY TO EMPLOYEES FOR PERSONAL 287
SERVICES RENDERED IN THE GENERATION, TRANSMISSION, OR 288
DISTRIBUTION OF ELECTRICITY IN THE MUNICIPAL CORPORATION DURING 289
THE TAXABLE YEAR BY (b) THE TOTAL AMOUNT OF COMPENSATION PAID BY 290
THAT COMPANY IN THIS STATE DURING THE TAXABLE YEAR. 291
"COMPENSATION" MEANS ANY FORM OF REMUNERATION PAID TO AN EMPLOYEE 293
FOR PERSONAL SERVICES.
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(B) THE INCOME OF AN ELECTRIC COMPANY OR COMBINED COMPANY 295
SUBJECT TO TAXATION BY A MUNICIPAL CORPORATION SHALL BE 296
DETERMINED BY MULTIPLYING THE COMPANY'S NET INCOME BY A FRACTION, 297
THE NUMERATOR OF WHICH IS THE SUM OF (1) THE PROPERTY FACTOR 298
MULTIPLIED BY FIFTY AND (2) THE PAYROLL FACTOR MULTIPLIED BY 299
FIFTY, AND THE DENOMINATOR OF WHICH IS ONE HUNDRED; PROVIDED THAT 300
THE DENOMINATOR SHALL BE REDUCED BY FIFTY IF THE PAYROLL FACTOR 301
IS ZERO AND BY FIFTY IF THE PROPERTY FACTOR IS ZERO. 302
UPON DETERMINING THE APPORTIONMENT OF AN ELECTRIC OR 304
COMBINED COMPANY'S NET INCOME, THE TAX COMMISSIONER SHALL SEND A 305
CERTIFICATE OF APPORTIONMENT, BY ORDINARY MAIL, TO THE COMPANY 306
AND TO EACH MUNICIPAL CORPORATION TO WHICH THE NET INCOME IS 307
APPORTIONED.
(C) EACH ELECTRIC COMPANY OR COMBINED COMPANY THE INCOME 309
OF WHICH IS SUBJECT TO TAXATION BY A MUNICIPAL CORPORATION IN 310
THIS STATE SHALL FILE AN ANNUAL REPORT WITH THE TREASURER OF 312
STATE, IN THE FORM PRESCRIBED BY THE TAX COMMISSIONER, BETWEEN 313
THE FIRST DAY OF MARCH AND THE THIRTY-FIRST DAY OF MAY. IF THE 315
ELECTRIC COMPANY OR COMBINED COMPANY OBTAINS AN EXTENSION, 316
PURSUANT TO SECTION 5733.13 OF THE REVISED CODE, FOR FILING THE
REPORT REQUIRED BY SECTION 5733.02 OF THE REVISED CODE, THE LAST 318
DAY FOR FILING THE ANNUAL REPORT REQUIRED BY THIS SECTION SHALL
BE EXTENDED FOR A LIKE PERIOD. 319
THE ANNUAL REPORT SHALL INCLUDE STATEMENTS OF THE FOLLOWING 322
FACTS AS OF THE FIRST DAY OF THE COMPANY'S ANNUAL ACCOUNTING 323
PERIOD THAT INCLUDES THE FIRST DAY OF JANUARY OF THE TAX YEAR: 325
(1) THE NAME OF THE COMPANY; 327
(2) THE NAME OF THE STATE OR COUNTRY UNDER THE LAWS OF 329
WHICH IT IS INCORPORATED; 330
(3) THE LOCATION OF ITS PRINCIPAL OFFICE IN THIS STATE 332
AND, IN THE CASE OF A COMPANY INCORPORATED UNDER THE LAWS OF 334
ANOTHER STATE, THE PRINCIPAL PLACE OF BUSINESS IN THIS STATE AND 335
THE NAME AND ADDRESS OF THE OFFICER OR AGENT OF THE COMPANY IN 336
CHARGE OF THE BUSINESS CONDUCTED IN THIS STATE; 337
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(4) THE NAMES OF THE PRESIDENT, SECRETARY, TREASURER, AND 339
STATUTORY AGENT IN THIS STATE, WITH THE POST-OFFICE ADDRESS OF 340
EACH; 341
(5) THE DATE OF THE BEGINNING OF THE COMPANY'S ANNUAL 344
ACCOUNTING PERIOD THAT INCLUDES THE FIRST DAY OF JANUARY OF THE 345
TAX YEAR; 346
(6) THE MUNICIPAL CORPORATIONS IN THIS STATE IN WHICH THE 348
COMPANY CONDUCTS BUSINESS; 349
(7) THE COMPANY'S NET INCOME DURING THE COMPANY'S TAXABLE 352
YEAR;
(8) ANY OTHER INFORMATION THE TAX COMMISSIONER REQUIRES 354
FOR THE PROPER ADMINISTRATION OF THIS SECTION. 355
REPORTS FILED WITH THE TAX COMMISSIONER BY AN ELECTRIC 357
COMPANY OR COMBINED COMPANY UNDER THIS SECTION ARE OPEN TO 358
INSPECTION DURING NORMAL BUSINESS HOURS BY OFFICERS OR AGENTS OF 359
A MUNICIPAL CORPORATION IN WHICH THE COMPANY CONDUCTS BUSINESS. 360
(D)(1) EACH ELECTRIC COMPANY OR COMBINED COMPANY SUBJECT 363
TO A MUNICIPAL INCOME TAX SHALL REMIT WITH THE ANNUAL REPORT THE 365
TAXES SHOWN TO BE DUE ON THE REPORT, LESS THE AMOUNT PAID DURING 366
THE YEAR ON A DECLARATION OF ESTIMATED TAX REPORT FILED UNDER 367
SECTION 718.22 OF THE REVISED CODE. THE REMITTANCE SHALL BE MADE 369
PAYABLE TO THE TREASURER OF STATE. UPON RECEIPT OF THE REPORT 370
AND REMITTANCE, THE TREASURER OF STATE SHALL SHOW ON THE REPORT 371
THE DATE IT WAS FILED AND THE AMOUNT OF PAYMENT REMITTED. THE
TREASURER OF STATE SHALL, WITHOUT UNNECESSARY DELAY, TRANSMIT ALL 372
REPORTS TO THE TAX COMMISSIONER. 373
(2) THE TREASURER OF STATE SHALL CREDIT EACH REMITTANCE TO 375
THE MUNICIPAL INCOME TAX FUND, WHICH IS HEREBY CREATED IN THE 376
STATE TREASURY, EXCEPT THAT ONE AND ONE-HALF PER CENT OF THE 377
REMITTANCE SHALL BE CREDITED TO THE MUNICIPAL INCOME TAX 378
ADMINISTRATIVE FUND, WHICH IS HEREBY CREATED IN THE STATE 379
TREASURY. MONEY TO THE CREDIT OF THE MUNICIPAL INCOME TAX 380
ADMINISTRATIVE FUND SHALL BE USED SOLELY TO DEFRAY THE TAX 381
COMMISSIONER'S EXPENSES IN ADMINISTERING THIS SECTION AND 382
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SECTIONS 718.22 TO 718.30 OF THE REVISED CODE. ANY MONEY NOT 384
NECESSARY TO DEFRAY SUCH EXPENSES SHALL BE TRANSFERRED TO THE 385
MUNICIPAL INCOME TAX FUND. ALL INVESTMENT EARNINGS ON MONEY IN 387
THE MUNICIPAL INCOME TAX FUND SHALL BE APPORTIONED BY THE TAX 388
COMMISSIONER AMONG MUNICIPAL CORPORATIONS IN THE PROPORTIONS AND 389
AT THE TIMES THE MUNICIPAL CORPORATIONS ARE ENTITLED TO RECEIVE 390
PAYMENTS FROM THE FUND UNDER DIVISION (D)(3) OF THIS SECTION. 391
(3) UPON RECEIPT OF AN ANNUAL REPORT, THE TAX COMMISSIONER 393
SHALL DETERMINE THE PORTION OF THE COMPANY'S NET INCOME TO BE 395
APPORTIONED TO EACH MUNICIPAL CORPORATION AND MULTIPLY THAT 396
PORTION BY THE RATE AT WHICH THE MUNICIPAL CORPORATION'S INCOME 397
TAX IS IMPOSED, AS CERTIFIED UNDER DIVISION (E) OF THIS SECTION. 399
THE TAX COMMISSIONER SHALL CERTIFY THE RESULTING TAX FOR EACH 400
MUNICIPAL CORPORATION TO THE DIRECTOR OF BUDGET AND MANAGEMENT, 401
WHO SHALL PROVIDE FOR PAYMENT OF THAT AMOUNT TO THE MUNICIPAL 402
CORPORATION FROM THE MUNICIPAL INCOME TAX FUND CREATED UNDER THIS 403
SECTION.
(E)(1) ON OR BEFORE THE FIRST DAY OF JANUARY EACH YEAR, 406
EACH MUNICIPAL CORPORATION THAT IMPOSES A MUNICIPAL INCOME TAX 407
SHALL CERTIFY TO THE TAX COMMISSIONER THE RATE OF ITS INCOME TAX 408
FOR THE YEAR THAT BEGINS ON THAT DAY AND SHALL CERTIFY THE RATE 409
RESULTING FROM ANY CHANGE IN THE RATE OCCURRING AFTER THE INITIAL 411
CERTIFICATION.
(2) IF ANY MUNICIPAL CORPORATION FAILS TO CERTIFY THE RATE 413
OF ITS INCOME TAX AS REQUIRED BY THIS SECTION, THE TAX 414
COMMISSIONER SHALL NOTIFY THE DIRECTOR OF BUDGET AND MANAGEMENT, 415
WHO, UPON SUCH NOTIFICATION, SHALL WITHHOLD FROM THE PAYMENT TO 416
BE MADE UNDER DIVISION (D) OF THIS SECTION FIFTY PER CENT OF THE 418
AMOUNT OF THE PAYMENT OTHERWISE DUE THE MUNICIPAL CORPORATION 419
UNTIL THE MUNICIPAL CORPORATION CERTIFIES THE RATE TO THE TAX 420
COMMISSIONER.
(F) NO MUNICIPAL CORPORATION SHALL REQUIRE AN ELECTRIC 423
COMPANY OR COMBINED COMPANY REQUIRED TO FILE A REPORT UNDER 424
DIVISION (C) OF THIS SECTION TO FILE ANY TAX RETURN OR REPORT. 426
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Sec. 718.22. (A) EACH ELECTRIC COMPANY OR COMBINED 428
COMPANY THAT DOES NOT IN THE MONTH OF MARCH FILE THE REPORT AND 430
MAKE THE PAYMENT REQUIRED BY SECTION 718.21 OF THE REVISED CODE 431
SHALL MAKE AND FILE A DECLARATION OF ESTIMATED TAX REPORT FOR THE 432
YEAR.
THE DECLARATION OF ESTIMATED TAX REPORT SHALL BE FILED WITH 434
THE TREASURER OF STATE ON OR BEFORE THE LAST DAY OF MARCH IN SUCH 436
FORM AS PRESCRIBED BY THE TAX COMMISSIONER AND SHALL REFLECT AN 437
ESTIMATE OF THE TOTAL AMOUNT OF MUNICIPAL INCOME TAXES DUE FOR
THE YEAR AS DETERMINED UNDER SECTION 718.21 OF THE REVISED CODE. 438
(B) AN ELECTRIC COMPANY OR COMBINED COMPANY REQUIRED TO 442
FILE A DECLARATION OF ESTIMATED TAX REPORT SHALL MAKE REMITTANCE 443
OF SUCH ESTIMATED TAX TO THE TREASURER OF STATE AS FOLLOWS: 444
(1) ONE-THIRD OF THE ESTIMATED TAX AT THE TIME OF FILING 446
THE DECLARATION OF ESTIMATED TAX REPORT; 447
(2) TWO-THIRDS OF THE ESTIMATED TAX ON OR BEFORE THE LAST 449
DAY OF MAY, UNLESS THE REPORT AND PAYMENT REQUIRED BY SECTION 451
718.21 OF THE REVISED CODE IS FILED AND PAID ON OR BEFORE THE 453
LAST DAY OF MAY.
(C) REMITTANCE OF THE ESTIMATED TAX SHALL BE MADE IN THE 455
FORM PRESCRIBED BY THE TREASURER OF STATE. THE TREASURER OF 457
STATE SHALL CREDIT ALL PAYMENTS OF ESTIMATED TAX AS PROVIDED IN 458
DIVISION (D) OF SECTION 718.21 OF THE REVISED CODE, SHALL SHOW ON 460
ALL REPORTS THE DATE EACH WAS FILED AND THE AMOUNT OF PAYMENT 461
REMITTED, AND SHALL, WITHOUT UNNECESSARY DELAY, TRANSMIT ALL
REPORTS FILED UNDER THIS SECTION TO THE TAX COMMISSIONER. 462
Sec. 718.23. (A) IF ANY ELECTRIC COMPANY OR COMBINED 472
COMPANY REQUIRED TO FILE A REPORT UNDER SECTION 718.21 OR 718.22 474
OF THE REVISED CODE FAILS TO FILE THE REPORT WITHIN THE TIME 475
PRESCRIBED, FILES AN INCORRECT REPORT, OR FAILS TO REMIT THE FULL 476
AMOUNT OF THE TAX DUE FOR THE PERIOD COVERED BY THE REPORT, THE 477
TAX COMMISSIONER MAY MAKE AN ASSESSMENT AGAINST THE COMPANY FOR
ANY DEFICIENCY FOR THE PERIOD FOR WHICH THE REPORT OR TAX IS DUE, 479
BASED UPON ANY INFORMATION IN THE COMMISSIONER'S POSSESSION. 480
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THE TAX COMMISSIONER SHALL NOT MAKE OR ISSUE AN ASSESSMENT 482
AGAINST ELECTRIC COMPANY OR COMBINED COMPANY MORE THAN THREE 485
YEARS AFTER THE LATER OF THE FINAL DATE THE REPORT SUBJECT TO 486
ASSESSMENT WAS REQUIRED TO BE FILED OR THE DATE THE REPORT WAS 487
FILED. SUCH TIME LIMIT MAY BE EXTENDED IF BOTH THE COMPANY AND 488
THE COMMISSIONER CONSENT IN WRITING TO THE EXTENSION. ANY SUCH 489
EXTENSION SHALL EXTEND THE THREE-YEAR TIME LIMIT IN SECTION 490
718.28 OF THE REVISED CODE FOR THE SAME PERIOD OF TIME. THERE 491
SHALL BE NO BAR OR LIMIT TO AN ASSESSMENT AGAINST A COMPANY THAT 492
FAILS TO FILE A REPORT SUBJECT TO ASSESSMENT AS REQUIRED BY 493
SECTION 718.21 OR 718.22 OF THE REVISED CODE, OR THAT FILES A 494
FRAUDULENT REPORT. THE COMMISSIONER SHALL GIVE THE COMPANY
ASSESSED WRITTEN NOTICE OF THE ASSESSMENT BY PERSONAL SERVICE OR 495
CERTIFIED MAIL. 496
(B) UNLESS THE COMPANY TO WHICH THE NOTICE OF ASSESSMENT 499
IS DIRECTED FILES WITH THE COMMISSIONER WITHIN THIRTY DAYS AFTER 500
SERVICE THEREOF, EITHER PERSONALLY OR BY CERTIFIED MAIL, A 501
PETITION FOR REASSESSMENT IN WRITING, SIGNED BY THE AUTHORIZED 502
AGENT OF THE COMPANY ASSESSED HAVING KNOWLEDGE OF THE FACTS, AND 503
MAKES PAYMENT OF THE PORTION OF THE ASSESSMENT REQUIRED BY 504
DIVISION (E) OF THIS SECTION, THE ASSESSMENT SHALL BECOME FINAL, 505
AND THE AMOUNT OF THE ASSESSMENT SHALL BE DUE AND PAYABLE FROM 506
THE COMPANY ASSESSED TO THE TREASURER OF STATE. THE PETITION 507
SHALL INDICATE THE COMPANY'S OBJECTIONS, BUT ADDITIONAL 508
OBJECTIONS MAY BE RAISED IN WRITING IF RECEIVED PRIOR TO THE DATE 509
SHOWN ON THE FINAL DETERMINATION BY THE COMMISSIONER. 510
UNLESS THE PETITIONER WAIVES A HEARING, THE COMMISSIONER 512
SHALL ASSIGN A TIME AND PLACE FOR THE HEARING ON THE PETITION AND 513
NOTIFY THE PETITIONER OF THE TIME AND PLACE OF THE HEARING BY 514
PERSONAL SERVICE OR CERTIFIED MAIL, BUT THE COMMISSIONER MAY 515
CONTINUE THE HEARING FROM TIME TO TIME IF NECESSARY. 516
THE COMMISSIONER MAY MAKE SUCH CORRECTION TO THE ASSESSMENT 518
AS THE COMMISSIONER FINDS PROPER. THE COMMISSIONER SHALL SERVE A 520
COPY OF THE FINAL DETERMINATION ON THE PETITIONER BY PERSONAL 521
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SERVICE OR BY CERTIFIED MAIL, AND THE COMMISSIONER'S DECISION IN 522
THE MATTER SHALL BE FINAL, SUBJECT TO APPEAL AS PROVIDED IN 524
SECTION 5717.02 OF THE REVISED CODE. ONLY OBJECTIONS DECIDED ON 525
THE MERITS BY THE BOARD OF TAX APPEALS OR A COURT SHALL BE GIVEN 526
COLLATERAL ESTOPPEL OR RES JUDICATA EFFECT IN CONSIDERING AN 527
APPLICATION FOR REFUND OF AMOUNTS PAID PURSUANT TO THE 528
ASSESSMENT.
(C) AFTER AN ASSESSMENT BECOMES FINAL, IF ANY PORTION OF 530
THE ASSESSMENT REMAINS UNPAID, INCLUDING ACCRUED INTEREST, A 531
CERTIFIED COPY OF THE COMMISSIONER'S ENTRY MAKING THE ASSESSMENT 533
FINAL MAY BE FILED IN THE OFFICE OF THE CLERK OF THE COURT OF 534
COMMON PLEAS IN THE COUNTY IN WHICH THE COMPANY HAS AN OFFICE OR 535
PLACE OF BUSINESS IN THIS STATE, THE COUNTY IN WHICH THE 536
COMPANY'S STATUTORY AGENT IS LOCATED, OR FRANKLIN COUNTY. 537
IMMEDIATELY UPON THE FILING OF THE ENTRY, THE CLERK SHALL 539
ENTER A JUDGMENT AGAINST THE COMPANY ASSESSED IN THE AMOUNT SHOWN 541
ON THE ENTRY. THE JUDGMENT MAY BE FILED BY THE CLERK IN A
LOOSE-LEAF BOOK ENTITLED "SPECIAL JUDGMENTS FOR MUNICIPAL INCOME 542
TAXES," AND SHALL HAVE THE SAME EFFECT AS OTHER JUDGMENTS. 544
EXECUTION SHALL ISSUE UPON THE JUDGMENT UPON THE REQUEST OF THE 545
TAX COMMISSIONER, AND ALL LAWS APPLICABLE TO SALES ON EXECUTION 546
SHALL APPLY TO SALES MADE UNDER THE JUDGMENT.
THE PORTION OF AN ASSESSMENT NOT PAID WITHIN THIRTY DAYS 549
AFTER THE DAY THE ASSESSMENT WAS ISSUED SHALL BEAR INTEREST AT 550
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 551
CODE FROM THE DAY THE TAX COMMISSIONER ISSUES THE ASSESSMENT 552
UNTIL THE ASSESSMENT IS PAID. INTEREST SHALL BE PAID IN THE SAME 554
MANNER AS THE TAX AND MAY BE COLLECTED BY ISSUING AN ASSESSMENT 555
UNDER THIS SECTION.
(D) ALL MONEY COLLECTED UNDER THIS SECTION SHALL BE 557
CREDITED AS PRESCRIBED BY DIVISION (D) OF SECTION 718.21 OF THE 558
REVISED CODE.
(E) THE PORTION OF AN ASSESSMENT WHICH MUST BE PAID UPON 560
THE FILING OF A PETITION FOR REASSESSMENT SHALL BE AS FOLLOWS: 561
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(1) IF THE SOLE ITEM OBJECTED TO IS THE ASSESSED PENALTY 563
OR INTEREST, FULL PAYMENT OF THE ASSESSMENT INCLUDING PENALTY AND 564
INTEREST IS REQUIRED. 565
(2) IF THE COMPANY THAT IS ASSESSED FAILED TO FILE, PRIOR 567
TO THE DATE OF ISSUANCE OF THE ASSESSMENT, THE ANNUAL REPORT 568
REQUIRED BY SECTION 718.21 OF THE REVISED CODE, FULL PAYMENT OF 570
THE ASSESSMENT INCLUDING PENALTY AND INTEREST IS REQUIRED. 571
(3) IF THE COMPANY THAT IS ASSESSED FILED, PRIOR TO THE 573
DATE OF ISSUANCE OF THE ASSESSMENT, THE ANNUAL REPORT REQUIRED BY 574
SECTION 718.21 OF THE REVISED CODE, AND A BALANCE OF THE TAXES 576
SHOWN DUE ON THE REPORTS AS COMPUTED ON THE REPORTS REMAINS 577
UNPAID, PAYMENT OF ONLY THAT PORTION OF THE ASSESSMENT 578
REPRESENTING THE UNPAID BALANCE IS REQUIRED. 579
(4) IF NONE OF THE CONDITIONS SPECIFIED IN DIVISIONS 582
(E)(1) TO (3) OF THIS SECTION APPLY, NO PAYMENT IS REQUIRED.
(F) NOTWITHSTANDING THE FACT THAT A PETITION FOR 584
REASSESSMENT IS PENDING, THE COMPANY MAY PAY ALL OR A PORTION OF 586
THE ASSESSMENT THAT IS THE SUBJECT OF THE PETITION. THE
ACCEPTANCE OF A PAYMENT BY THE TREASURER OF STATE DOES NOT 587
PREJUDICE ANY CLAIM FOR REFUND UPON FINAL DETERMINATION OF THE 588
PETITION. 589
IF UPON FINAL DETERMINATION OF THE PETITION AN ERROR IN THE 591
ASSESSMENT IS CORRECTED BY THE COMMISSIONER, UPON PETITION SO 592
FILED OR PURSUANT TO A DECISION OF THE BOARD OF TAX APPEALS OR 593
ANY COURT TO WHICH THE DETERMINATION OR DECISION HAS BEEN 594
APPEALED, SO THAT THE AMOUNT DUE FROM THE COMPANY UNDER THE 595
CORRECTED ASSESSMENT IS LESS THAN THE PORTION PAID, THERE SHALL 596
BE ISSUED TO THE COMPANY, ITS ASSIGNS, OR LEGAL REPRESENTATIVE A 598
REFUND IN THE AMOUNT OF THE OVERPAYMENT AS PROVIDED BY SECTION 599
781.28 OF THE REVISED CODE, WITH INTEREST ON THAT AMOUNT AS 601
PROVIDED BY SECTION 718.24 OF THE REVISED CODE. 602
Sec. 718.24. (A) IF THE TAX REQUIRED TO BE PAID UNDER 611
SECTION 718.21 OF THE REVISED CODE, OR ANY PORTION OF THAT TAX, 613
WHETHER DETERMINED BY THE TAX COMMISSIONER OR THE TAXPAYER, IS 614
15
NOT PAID ON OR BEFORE THE DATE PRESCRIBED FOR ITS PAYMENT, 615
INTEREST SHALL BE ASSESSED, COLLECTED, AND PAID, IN THE SAME 616
MANNER AS THE TAX, UPON SUCH UNPAID AMOUNT AT THE RATE PER ANNUM 617
PRESCRIBED BY SECTION 5703.47 OF THE REVISED CODE FROM THE DATE 618
PRESCRIBED FOR ITS PAYMENT UNTIL IT IS PAID OR UNTIL THE DAY AN 619
ASSESSMENT IS ISSUED UNDER SECTION 718.23 OF THE REVISED CODE, 620
WHICHEVER OCCURS FIRST.
(B) INTEREST SHALL BE ALLOWED AND PAID AT THE RATE PER 622
ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED CODE UPON 623
AMOUNTS REFUNDED WITH RESPECT TO THE TAX REQUIRED TO BE PAID 624
UNDER SECTION 718.21 OF THE REVISED CODE. THE INTEREST SHALL RUN 625
FROM WHICHEVER OF THE FOLLOWING DATES IS THE LATEST UNTIL THE 628
DATE THE REFUND IS PAID: THE DATE OF THE ILLEGAL, ERRONEOUS, OR 629
EXCESSIVE PAYMENT; THE NINETIETH DAY AFTER THE FINAL DATE THE 630
ANNUAL REPORT UNDER SECTION 718.21 OF THE REVISED CODE WAS 631
REQUIRED TO BE FILED; OR THE NINETIETH DAY AFTER THE DATE THAT 632
REPORT WAS FILED.
Sec. 718.25. (A) IN ADDITION TO ANY OTHER PENALTY IMPOSED 642
BY A MUNICIPAL CORPORATION, THE FOLLOWING PENALTIES SHALL APPLY: 643
(1) IF AN ELECTRIC COMPANY OR COMBINED COMPANY REQUIRED TO 646
FILE THE REPORT REQUIRED BY SECTION 718.21 OR 718.22 OF THE 647
REVISED CODE FAILS TO MAKE AND FILE THE REPORT WITHIN THE TIME 648
PRESCRIBED, INCLUDING ANY EXTENSIONS OF TIME GRANTED BY THE TAX 649
COMMISSIONER, A PENALTY SHALL BE IMPOSED EQUAL TO THE GREATER OF 650
FIFTY DOLLARS PER MONTH OR FRACTION OF A MONTH, NOT TO EXCEED 651
FIVE HUNDRED DOLLARS, OR FIVE PER CENT PER MONTH OR FRACTION OF A 652
MONTH, NOT TO EXCEED FIFTY PER CENT, OF THE TAX REQUIRED TO BE 653
SHOWN ON THE REPORT, FOR EACH MONTH OR FRACTION OF A MONTH 654
ELAPSING BETWEEN THE DUE DATE, INCLUDING EXTENSIONS OF THE DUE 655
DATE, AND THE DAY ON WHICH THE REPORT IS FILED. 656
(2) IF AN ELECTRIC OR COMBINED COMPANY FAILS TO PAY ANY 660
AMOUNT OF ESTIMATED TAX REQUIRED TO BE PAID UNDER SECTION 718.22 661
OF THE REVISED CODE BY THE DATES PRESCRIBED FOR PAYMENT, A 663
PENALTY SHALL BE IMPOSED EQUAL TO TWICE THE INTEREST CHARGED 664
16
UNDER DIVISION (A) OF SECTION 718.26 OF THE REVISED CODE FOR THE 665
DELINQUENT PAYMENT.
(3) IF AN ELECTRIC COMPANY OR COMBINED COMPANY FILES WHAT 668
PURPORTS TO BE A REPORT REQUIRED BY SECTION 718.21 OR 718.22 OF 669
THE REVISED CODE THAT DOES NOT CONTAIN INFORMATION UPON WHICH THE 671
SUBSTANTIAL CORRECTNESS OF THE REPORT MAY BE JUDGED OR CONTAINS 672
INFORMATION THAT ON ITS FACE INDICATES THAT THE REPORT IS 673
SUBSTANTIALLY INCORRECT, AND THE FILING OF THE REPORT IN THAT
MANNER IS DUE TO A POSITION THAT IS FRIVOLOUS OR A DESIRE THAT IS 674
APPARENT FROM THE REPORT TO DELAY OR IMPEDE THE ADMINISTRATION OF 675
SECTIONS 718.21 TO 718.30 OF THE REVISED CODE, A PENALTY OF FIVE 676
HUNDRED DOLLARS SHALL BE IMPOSED. 677
(4) IF AN ELECTRIC COMPANY OR COMBINED COMPANY MAKES A 680
FRAUDULENT ATTEMPT TO EVADE THE REPORTING OR PAYMENT OF THE TAX 682
REQUIRED TO BE SHOWN ON ANY REPORT REQUIRED UNDER SECTION 718.21 683
OR 718.22 OF THE REVISED CODE, A PENALTY SHALL BE IMPOSED EQUAL 685
TO THE GREATER OF ONE THOUSAND DOLLARS OR ONE HUNDRED PER CENT OF 686
THE TAX REQUIRED TO BE SHOWN ON THE REPORT.
(5) IF ANY PERSON MAKES A FALSE OR FRAUDULENT CLAIM FOR A 688
REFUND UNDER SECTION 718.28 OF THE REVISED CODE, A PENALTY SHALL 689
BE IMPOSED EQUAL TO THE GREATER OF ONE THOUSAND DOLLARS OR ONE 690
HUNDRED PER CENT OF THE CLAIM. THE PENALTY IMPOSED UNDER 691
DIVISION (A)(5) OF THIS SECTION, ANY REFUND ISSUED ON THE CLAIM, 692
AND INTEREST ON ANY REFUND FROM THE DATE OF THE REFUND, MAY BE 693
ASSESSED UNDER SECTION 718.22 OF THE REVISED CODE WITHOUT REGARD 694
TO ANY TIME LIMITATION FOR THE ASSESSMENT IMPOSED BY DIVISION (A) 696
OF SECTION 718.23 OF THE REVISED CODE. 697
(B) FOR THE PURPOSES OF THIS SECTION, THE TAX REQUIRED TO 699
BE SHOWN ON THE REPORT SHALL BE REDUCED BY THE AMOUNT OF ANY PART 700
OF THE TAX PAID ON OR BEFORE THE DATE, INCLUDING EXTENSIONS OF 701
THE DATE, PRESCRIBED FOR FILING THE REPORT. 702
(C) EACH PENALTY IMPOSED UNDER THIS SECTION SHALL BE IN 704
ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS SECTION. ALL OR 705
PART OF ANY PENALTY IMPOSED UNDER THIS SECTION SHALL BE ABATED BY 706
17
THE COMMISSIONER IF THE TAXPAYER SHOWS THAT THE FAILURE TO COMPLY 707
WITH SECTIONS 718.21 TO 718.30 OF THE REVISED CODE IS DUE TO 708
REASONABLE CAUSE AND NOT WILLFUL NEGLECT. 709
Sec. 718.26. (A) IN CASE OF ANY UNDERPAYMENT OF THE 711
ESTIMATED TAX REQUIRED UNDER SECTION 718.22 OF THE REVISED CODE, 712
THERE SHALL BE ADDED TO THE TAX AN AMOUNT DETERMINED AT THE RATE 714
PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED CODE UPON 715
THE AMOUNT OF UNDERPAYMENT FOR THE PERIOD OF UNDERPAYMENT. 717
(B) THE AMOUNT OF THE UNDERPAYMENT SHALL BE THE EXCESS OF 719
DIVISION (B)(1) OVER DIVISION (B)(2) OF THIS SECTION: 720
(1) THE AMOUNT OF THE ESTIMATED TAX PAYMENT THAT WOULD BE 722
REQUIRED TO BE PAID IF THE TOTAL ESTIMATED TAX WERE EQUAL TO THE 723
TOTAL TAX SHOWN TO BE DUE ON THE REPORT REQUIRED TO BE FILED, OR 724
IF NO REPORT WAS FILED, THE TAX FOR SUCH YEAR; 725
(2) THE AMOUNT, IF ANY, OF THE ESTIMATED TAX PAID ON OR 727
BEFORE THE LAST DAY PRESCRIBED FOR SUCH PAYMENT. 728
(C) THE PERIOD OF THE UNDERPAYMENT SHALL RUN FROM THE DATE 730
THE ESTIMATED TAX PAYMENT WAS REQUIRED TO BE MADE TO THE DATE ON 731
WHICH SUCH PAYMENT IS MADE. FOR PURPOSES OF THIS SECTION, A 732
PAYMENT OF ESTIMATED TAX ON ANY PAYMENT DATE SHALL BE CONSIDERED 733
A PAYMENT OF ANY PREVIOUS UNDERPAYMENT ONLY TO THE EXTENT SUCH 734
PAYMENT EXCEEDS THE AMOUNT OF THE PAYMENT PRESENTLY DUE. 735
Sec. 718.27. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, 738
IF ANY REPORT, CLAIM, STATEMENT, OR OTHER DOCUMENT REQUIRED TO BE 739
FILED, OR ANY PAYMENT REQUIRED TO BE MADE, WITHIN A PRESCRIBED 740
PERIOD OR ON OR BEFORE A PRESCRIBED DATE UNDER SECTION 718.21 OR 741
718.22 OF THE REVISED CODE IS, AFTER SUCH PERIOD OR SUCH DATE,
DELIVERED BY UNITED STATES MAIL TO THE AGENCY, OFFICER, OR OFFICE 743
WITH WHICH SUCH REPORT, CLAIM, STATEMENT, OR OTHER DOCUMENT IS 744
REQUIRED TO BE FILED, OR TO WHICH SUCH PAYMENT IS REQUIRED TO BE 745
MADE, THE DATE OF THE POSTMARK STAMPED ON THE COVER IN WHICH SUCH 746
REPORT, CLAIM, STATEMENT, OR OTHER DOCUMENT, OR PAYMENT IS MAILED 747
SHALL BE DEEMED THE DATE OF DELIVERY OR THE DATE OF PAYMENT. 748
"THE DATE OF THE POSTMARK" MEANS, IN THE EVENT THERE IS 750
18
MORE THAN ONE DATE ON THE COVER, THE EARLIEST DATE IMPRINTED ON 751
THE COVER BY THE POST OFFICE. 752
Sec. 718.28. AN APPLICATION TO REFUND TO AN ELECTRIC 755
COMPANY OR COMBINED COMPANY THE AMOUNT OF TAXES OVERPAID, PAID 756
ILLEGALLY OR ERRONEOUSLY, OR PAID ON ANY ILLEGAL, ERRONEOUS, OR 757
EXCESSIVE ASSESSMENT, WITH INTEREST ON THAT AMOUNT AS PROVIDED BY 759
SECTION 718.24 OF THE REVISED CODE, SHALL BE FILED WITH THE TAX 761
COMMISSIONER WITHIN THREE YEARS AFTER THE DATE OF THE ILLEGAL, 762
ERRONEOUS, OR EXCESSIVE PAYMENT OF THE TAX, OR WITHIN ANY 763
ADDITIONAL PERIOD ALLOWED BY DIVISION (A) OF SECTION 718.23 OF 764
THE REVISED CODE. THE APPLICATION SHALL BE FILED IN THE FORM 766
PRESCRIBED BY THE TAX COMMISSIONER.
UPON THE FILING OF A REFUND APPLICATION, THE TAX 768
COMMISSIONER SHALL DETERMINE THE AMOUNT OF REFUND DUE AND CERTIFY 770
THE AMOUNT OF THE REFUND TO THE DIRECTOR OF BUDGET AND MANAGEMENT 771
AND TREASURER OF STATE FOR PAYMENT FROM THE MUNICIPAL INCOME TAX 772
FUND CREATED UNDER SECTION 718.21 OF THE REVISED CODE. THE 773
REFUND SHALL BE APPORTIONED AMONG THE MUNICIPAL CORPORATIONS IN 774
THE PROPORTIONS IN WHICH THE TAX WAS APPORTIONED UNDER DIVISION 776
(B) OF SECTION 718.21 OF THE REVISED CODE, AND THE PROPORTIONATE 777
SHARES DEDUCTED FROM THE RESPECTIVE AMOUNTS SUBSEQUENTLY DUE EACH 779
MUNICIPAL CORPORATION FROM THE MUNICIPAL INCOME TAX FUND UNDER 780
DIVISION (D) OF SECTION 718.21 OF THE REVISED CODE. 781
Sec. 718.29. THE FISCAL OFFICER OF ANY MUNICIPAL 783
CORPORATION IN WHICH AN ELECTRIC COMPANY OR COMBINED COMPANY 784
CONDUCTS BUSINESS MAY REQUEST A REVIEW AND REDETERMINATION OF THE 785
TAX COMMISSIONER'S APPORTIONMENT OF THE COMPANY'S NET INCOME BY 786
FILING A PETITION WITH THE TAX COMMISSIONER NOT LATER THAN THIRTY 787
DAYS AFTER THE TAX COMMISSIONER ISSUES THE CERTIFICATE OF 788
APPORTIONMENT PURSUANT TO DIVISION (B) OF SECTION 718.21 OF THE 789
REVISED CODE. THE PETITION SHALL BE FILED EITHER PERSONALLY OR 790
BY CERTIFIED MAIL. THE PETITION SHALL INDICATE THE OBJECTIONS OF 791
THE MUNICIPAL CORPORATION AND SHALL BE ACCOMPANIED BY A CERTIFIED 792
COPY OF A RESOLUTION OF THE LEGISLATIVE AUTHORITY OF THE 793
19
MUNICIPAL CORPORATION AUTHORIZING THE FISCAL OFFICER TO FILE THE 794
PETITION.
UPON RECEIVING SUCH A PETITION, THE TAX COMMISSIONER SHALL 796
ASSIGN A TIME AND PLACE FOR A HEARING ON THE PETITION AND SHALL 797
NOTIFY THE PETITIONER OF THE TIME AND PLACE OF THE HEARING BY 798
ORDINARY MAIL. THE TAX COMMISSIONER MAY CONTINUE THE HEARING 799
FROM TIME TO TIME AS NECESSARY. THE TAX COMMISSIONER SHALL MAKE 800
ANY CORRECTION TO THE CERTIFICATE OF APPORTIONMENT THAT THE 801
COMMISSIONER FINDS PROPER, AND, IF THE CERTIFICATE IS CORRECTED, 802
THE TAX COMMISSIONER SHALL ISSUE A CORRECTED CERTIFICATE OF 803
APPORTIONMENT BY CERTIFIED MAIL TO THE PETITIONER, TO EACH OTHER 804
MUNICIPAL CORPORATION AFFECTED BY THE CORRECTION OF THE 805
APPORTIONMENT, AND TO THE COMPANY. THE TAX COMMISSIONER'S 806
DECISION ON THE MATTER IS FINAL, SUBJECT TO APPEAL AS PROVIDED IN 807
SECTION 5717.02 OF THE REVISED CODE.
Sec. 718.30. IF ANY OF THE FACTS, FIGURES, COMPUTATIONS, 809
OR ATTACHMENTS REQUIRED IN THE REPORT OF AN ELECTRIC COMPANY OR 810
COMBINED COMPANY TO DETERMINE THE TAX DUE A MUNICIPAL CORPORATION 812
MUST BE ALTERED AS THE RESULT OF AN ADJUSTMENT TO THE COMPANY'S 813
FEDERAL INCOME TAX RETURN OR CORPORATION FRANCHISE TAX REPORT 814
FILED PURSUANT TO SECTION 5733.02 OF THE REVISED CODE, WHETHER 815
THE ADJUSTMENT IS INITIATED BY THE COMPANY, THE INTERNAL REVENUE
SERVICE, OR THE TAX COMMISSIONER, AND SUCH ALTERATION AFFECTS THE 816
COMPANY'S TAX LIABILITY TO A MUNICIPAL CORPORATION, THE COMPANY 818
SHALL FILE AN AMENDED REPORT WITH THE TAX COMMISSIONER IN SUCH
FORM AS THE COMMISSIONER REQUIRES. THE AMENDED REPORT SHALL BE 819
FILED NOT LATER THAN ONE YEAR AFTER THE ADJUSTMENT HAS BEEN 820
AGREED TO OR FINALLY DETERMINED. 821
(A) IN THE CASE OF AN UNDERPAYMENT, THE AMENDED REPORT 823
SHALL BE ACCOMPANIED BY PAYMENT OF AN ADDITIONAL TAX AND INTEREST 824
DUE AND IS A REPORT SUBJECT TO ASSESSMENT UNDER SECTION 718.23 OF 826
THE REVISED CODE FOR THE PURPOSE OF ASSESSING ANY ADDITIONAL TAX 827
DUE UNDER THIS DIVISION, TOGETHER WITH ANY APPLICABLE PENALTY AND 828
INTEREST. IT SHALL NOT REOPEN THOSE FACTS, FIGURES,
20
COMPUTATIONS, OR ATTACHMENTS FROM A PREVIOUSLY FILED REPORT NO 829
LONGER SUBJECT TO ASSESSMENT THAT ARE NOT AFFECTED, EITHER 830
DIRECTLY OR INDIRECTLY, BY THE ADJUSTMENT TO THE COMPANY'S 831
FEDERAL INCOME TAX RETURN OR CORPORATION FRANCHISE TAX REPORT. 832
(B) IN THE CASE OF AN OVERPAYMENT, AN APPLICATION FOR 834
REFUND MAY BE FILED UNDER SECTION 718.28 OF THE REVISED CODE 835
WITHIN THE ONE-YEAR PERIOD PRESCRIBED FOR FILING THE AMENDED 836
REPORT EVEN IF IT IS FILED BEYOND THE PERIOD PRESCRIBED BY THAT 837
SECTION, IF IT OTHERWISE CONFORMS TO THE REQUIREMENTS OF SUCH 839
SECTION. AN APPLICATION FILED UNDER THIS DIVISION SHALL CLAIM 840
REFUND OF OVERPAYMENTS RESULTING FROM ALTERATIONS TO ONLY THOSE 841
FACTS, FIGURES, COMPUTATIONS, OR ATTACHMENTS REQUIRED IN THE 842
COMPANY'S REPORT THAT ARE AFFECTED, EITHER DIRECTLY OR 843
INDIRECTLY, BY THE ADJUSTMENT TO THE COMPANY'S FEDERAL INCOME TAX 844
RETURN OR CORPORATION FRANCHISE TAX REPORT UNLESS IT IS ALSO 845
FILED WITHIN THE TIME PRESCRIBED BY SECTION 718.28 OF THE REVISED 846
CODE. IT SHALL NOT REOPEN THOSE FACTS, FIGURES, COMPUTATIONS, OR 848
ATTACHMENTS THAT ARE NOT AFFECTED, EITHER DIRECTLY OR INDIRECTLY, 849
BY THE ADJUSTMENT TO THE COMPANY'S FEDERAL INCOME TAX RETURN OR 850
CORPORATION FRANCHISE TAX REPORT.
Section 2. That existing sections 718.01 and 718.02 of the 852
Revised Code are hereby repealed. 853
Section 3. Sections 718.21 to 718.30 of the Revised Code, 856
as enacted by this act, take effect January 1, 2002. Each 857
municipal corporation that levies a tax on income on January 1, 858
2002, shall certify to the Tax Commissioner, on or before 859
December 31, 2001, the rate at which the tax is to be levied on 860
January 1, 2002.
Section 4. Section 718.01 of the Revised Code is presented 862
in this act as a composite of the section as amended by both Am. 864
Sub. S.B. 3 and Am. Sub. H.B. 283 of the 123rd General Assembly,
with the new language of neither of the acts shown in capital 865
letters. This is in recognition of the principle stated in 866
division (B) of section 1.52 of the Revised Code that such 867
21
amendments are to be harmonized where not substantively 868
irreconcilable and constitutes a legislative finding that such is 869
the resulting version in effect prior to the effective date of 870
this act.