As Reported by House Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 483 5
1999-2000 6
REPRESENTATIVES MOTTLEY-DISTEL 8
_________________________________________________________________ 9
A B I L L
To amend sections 718.01, 718.02, 718.07, and 11
5703.21 and to enact sections 718.21, 718.22, 12
718.221, 718.222, 718.23, 718.24, 718.25, 718.26, 13
718.27, 718.28, 718.29, and 718.30 of the Revised 14
Code to prescribe a uniform set of procedures for 15
municipal taxation of electric companies. 16
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 18
Section 1. That sections 718.01, 718.02, 718.07, and 20
5703.21 be amended and sections 718.21, 718.22, 718.221, 718.222, 21
718.23, 718.24, 718.25, 718.26, 718.27, 718.28, 718.29, and 22
718.30 of the Revised Code be enacted to read as follows: 24
Sec. 718.01. (A) As used in this chapter: 33
(1) "Internal Revenue Code" means the Internal Revenue 35
Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. 37
(2) "Schedule C" means internal revenue service schedule C 39
filed by a taxpayer pursuant to the Internal Revenue Code. 41
(3) "Form 2106" means internal revenue service form 2106 43
filed by a taxpayer pursuant to the Internal Revenue Code. 45
(4) "Intangible income" means income of any of the 47
following types: income yield, interest, dividends, or other 49
income arising from the ownership, sale, exchange, or other 50
disposition of intangible property including, but not limited to, 51
investments, deposits, money, or credits as those terms are
defined in Chapter 5701. of the Revised Code. 52
(5) "TAX YEAR" MEANS THE CALENDAR YEAR IN WHICH THE ANNUAL 55
REPORT IS REQUIRED TO BE FILED UNDER SECTION 718.21 OF THE 56
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REVISED CODE.
(6) "TAXABLE YEAR" MEANS THE ANNUAL ACCOUNTING PERIOD OF 58
AN ELECTRIC LIGHT COMPANY THAT ENDS ON THE DAY IMMEDIATELY 61
PRECEDING THE DAY OF COMMENCEMENT OF THE COMPANY'S ANNUAL 62
ACCOUNTING PERIOD THAT INCLUDES THE FIRST DAY OF JANUARY OF THE 63
TAX YEAR. 64
(7) "ELECTRIC LIGHT COMPANY" HAS THE SAME MEANING AS IN 67
SECTION 4928.01 OF THE REVISED CODE, AND INCLUDES THE ACTIVITIES 68
OF A COMBINED COMPANY AS AN ELECTRIC LIGHT COMPANY, BUT EXCLUDES 69
NONPROFIT COMPANIES AND MUNICIPAL CORPORATIONS. 70
(8) "ELECTRIC COMPANY" AND "COMBINED COMPANY" HAVE THE 73
SAME MEANINGS AS IN SECTION 5727.01 OF THE REVISED CODE. 74
(B) No municipal corporation with respect to that income 76
that it may tax shall tax such income at other than a uniform 78
rate.
(C) No municipal corporation shall levy a tax on income at 80
a rate in excess of one per cent without having obtained the 81
approval of the excess by a majority of the electors of the 82
municipality voting on the question at a general, primary, or 83
special election. The legislative authority of the municipal 84
corporation shall file with the board of elections at least
seventy-five days before the day of the election a copy of the 85
ordinance together with a resolution specifying the date the 86
election is to be held and directing the board of elections to 87
conduct the election. The ballot shall be in the following form: 88
"Shall the Ordinance providing for a ... per cent levy on income 89
for (Brief description of the purpose of the proposed levy) be
passed? 90
FOR THE INCOME TAX 92
AGAINST THE INCOME TAX" 94
In the event of an affirmative vote, the proceeds of the 96
levy may be used only for the specified purpose. 97
(D)(1) Except as otherwise provided in division (D)(2) of 99
this section, no municipal corporation shall exempt from a tax on 100
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income, compensation for personal services of individuals over 101
eighteen years of age or the net profit from a business or 102
profession.
(2) The legislative authority of a municipal corporation 104
may, by ordinance or resolution, exempt from a tax on income any 105
compensation arising from the grant, sale, exchange, or other 106
disposition of a stock option; the exercise of a stock option; or 107
the sale, exchange, or other disposition of stock purchased under 108
a stock option.
(E) Nothing in this section shall prevent a municipal 110
corporation from permitting lawful deductions as prescribed by 111
ordinance. If a taxpayer's taxable income includes income 112
against which the taxpayer has taken a deduction for federal 113
income tax purposes as reportable on the taxpayer's form 2106, 114
and against which a like deduction has not been allowed by the
municipal corporation, the municipal corporation shall deduct 115
from the taxpayer's taxable income an amount equal to the 116
deduction shown on such form allowable against such income, to 117
the extent not otherwise so allowed as a deduction by the 118
municipal corporation. In the case of a taxpayer who has a net
profit from a business or profession that is operated as a sole 119
proprietorship, no municipal corporation may tax or use as the 120
base for determining the amount of the net profit that shall be 121
considered as having a taxable situs in the municipal 122
corporation, a greater amount than the net profit reported by the
taxpayer on schedule C filed in reference to the year in question 123
as taxable income from such sole proprietorship, except as 124
otherwise specifically provided by ordinance or regulation. 125
(F) No municipal corporation shall tax any of the 127
following:
(1) The military pay or allowances of members of the armed 129
forces of the United States and of members of their reserve 130
components, including the Ohio national guard; 131
(2) The income of religious, fraternal, charitable, 133
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scientific, literary, or educational institutions to the extent 134
that such income is derived from tax-exempt real estate, 135
tax-exempt tangible or intangible property, or tax-exempt 136
activities;
(3) Except as otherwise provided in division (G) of this 138
section, intangible income; 139
(4) Compensation paid under section 3501.28 or 3501.36 of 141
the Revised Code to a person serving as a precinct election 142
official, to the extent that such compensation does not exceed 143
one thousand dollars annually. Such compensation in excess of 144
one thousand dollars may be subjected to taxation by a municipal
corporation. A municipal corporation shall not require the payer 145
of such compensation to withhold any tax from that compensation. 146
(5) Compensation paid to an employee of a transit 148
authority, regional transit authority, or regional transit 149
commission created under Chapter 306. of the Revised Code for 150
operating a transit bus or other motor vehicle for the authority 151
or commission in or through the municipal corporation, unless the
bus or vehicle is operated on a regularly scheduled route, the 152
operator is subject to such a tax by reason of residence or 153
domicile in the municipal corporation, or the headquarters of the 154
authority or commission is located within the municipal 155
corporation.
(6) The income of a public utility when that public 157
utility is subject to the tax levied under section 5727.24 or 158
5727.30 of the Revised Code, except starting FOR TAXABLE YEARS 160
BEGINNING ON OR AFTER January 1, 2002, the income of an electric 162
LIGHT company or combined company, as defined in section 5727.01 163
of the Revised Code, may be taxed by a municipal corporation. 165
For a combined company, only the income attributed from the 167
activity of an electric company shall be subject to taxation by a 168
municipal corporation. The income of an electric company or 169
combined company subject to taxation by a municipal corporation 170
shall be computed by taking into account the adjustments provided 171
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by division (I)(16) of section 5733.04, SUBJECT TO SECTIONS 172
718.21 TO 718.30 of the Revised Code. 173
(G) Any municipal corporation that taxes any type of 175
intangible income on March 29, 1988, pursuant to Section 3 of 176
Amended Substitute Senate Bill No. 238 of the 116th general 177
assembly, may continue to tax that type of income after 1988 if a 178
majority of the electors of the municipal corporation voting on 179
the question of whether to permit the taxation of that type of
intangible income after 1988 vote in favor thereof at an election 180
held on November 8, 1988. 181
(H) Nothing in this section or section 718.02 of the 183
Revised Code shall authorize the levy of any tax on income that a 184
municipal corporation is not authorized to levy under existing 186
laws or shall require a municipal corporation to allow a 187
deduction from taxable income for losses incurred from a sole 188
proprietorship or partnership.
Sec. 718.02. (A) THIS SECTION DOES NOT APPLY TO ELECTRIC 198
LIGHT COMPANIES.
(A) In the taxation of income which THAT is subject to 201
municipal income taxes, if the books and records of a taxpayer 202
conducting a business or profession both within and without the 203
boundaries of a municipal corporation shall disclose with 204
reasonable accuracy what portion of its net profit is
attributable to that part of the business or profession conducted 205
within the boundaries of the municipal corporation, then only 206
such portion shall be considered as having a taxable situs in 207
such municipal corporation for purposes of municipal income 208
taxation. In the absence of such records, net profit from a 209
business or profession conducted both within and without the 210
boundaries of a municipal corporation shall be considered as 211
having a taxable situs in such municipal corporation for purposes 212
of municipal income taxation in the same proportion as the 213
average ratio of: 214
(1) The average net book value of the real and tangible 216
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personal property owned or used by the taxpayer in the business 217
or profession in such municipal corporation during the taxable 218
period to the average net book value of all of the real and 219
tangible personal property owned or used by the taxpayer in the 220
business or profession during the same period, wherever situated. 221
As used in the preceding paragraph, real property shall 223
include property rented or leased by the taxpayer and the value 224
of such property shall be determined by multiplying the annual 225
rental thereon by eight; 226
(2) Wages, salaries, and other compensation paid during 228
the taxable period to persons employed in the business or 229
profession for services performed in such municipal corporation 230
to wages, salaries, and other compensation paid during the same 231
period to persons employed in the business or profession, 232
wherever their services are performed; 233
(3) Gross receipts of the business or profession from 235
sales made and services performed during the taxable period in 236
such municipal corporation to gross receipts of the business or 237
profession during the same period from sales and services, 238
wherever made or performed. 239
In the event that the foregoing allocation formula does not 241
produce an equitable result, another basis may, under uniform 242
regulations, be substituted so as to produce such result. 243
(B) As used in division (A) of this section, "sales made 245
in a municipal corporation" mean: 246
(1) All sales of tangible personal property which is 248
delivered within such municipal corporation regardless of where 249
title passes if shipped or delivered from a stock of goods within 250
such municipal corporation; 251
(2) All sales of tangible personal property which is 253
delivered within such municipal corporation regardless of where 254
title passes even though transported from a point outside such 255
municipal corporation if the taxpayer is regularly engaged 256
through its own employees in the solicitation or promotion of 257
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sales within such municipal corporation and the sales result from 258
such solicitation or promotion; 259
(3) All sales of tangible personal property which is 261
shipped from a place within such municipal corporation to 262
purchasers outside such municipal corporation regardless of where 263
title passes if the taxpayer is not, through its own employees, 264
regularly engaged in the solicitation or promotion of sales at 265
the place where delivery is made. 266
Sec. 718.07. (A) Any information gained as a result of 275
returns, investigations, hearings, or verifications required or 276
authorized by this chapter or by a charter or ordinance of a 277
municipal corporation levying an income tax pursuant to this 278
chapter is confidential, and no person shall disclose such 279
information except in accordance with a proper judicial order or 280
in connection with the performance of that person's official 281
duties or the official business of the municipal corporation as 282
authorized by this chapter or the charter or ordinance 283
authorizing the levy. The tax administrator of the A municipal 284
corporation may furnish copies of returns filed under this 285
chapter WITH THE MUNICIPAL CORPORATION to the internal revenue 286
service and to the tax commissioner. 288
(B) WITH RESPECT TO REPORTS FILED WITH THE TAX 290
COMMISSIONER UNDER SECTION 718.21 OR DIVISION (C) OR (D)(1) OF 291
SECTION 718.22 OF THE REVISED CODE AND ANY OTHER INFORMATION 293
GAINED IN THE PERFORMANCE OF THE TAX COMMISSIONER'S DUTIES
PRESCRIBED BY SECTIONS 718.21 TO 718.30 OF THE REVISED CODE, THE 294
TAX COMMISSIONER SHALL ADOPT RULES GOVERNING THE TERMS AND 295
CONDITIONS UNDER WHICH SUCH REPORTS OR INFORMATION SHALL BE 296
AVAILABLE FOR INSPECTION BY PROPERLY AUTHORIZED OFFICERS, 297
EMPLOYEES, OR AGENTS OF THE MUNICIPAL CORPORATION TO WHICH THE 298
TAXPAYER'S NET INCOME IS APPORTIONED UNDER DIVISION (B) OF 299
SECTION 718.22 OF THE REVISED CODE. THE RULES SHALL PROHIBIT 300
DISCLOSURE OF SUCH REPORTS OR INFORMATION TO ANY PERSON OTHER
THAN A PROPERLY AUTHORIZED OFFICER, EMPLOYEE, OR AGENT OF A 302
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MUNICIPAL CORPORATION, AND SHALL PROVIDE FOR DISCLOSURE OF ONLY 303
SUCH INFORMATION AS IS NECESSARY, IN THE OPINION OF THE TAX 304
COMMISSIONER, FOR PROPERLY AUTHORIZED OFFICERS, EMPLOYEES, OR 305
AGENTS OF A MUNICIPAL CORPORATION TO ASCERTAIN THE SHARE OF A 306
TAXPAYER'S NET INCOME TO BE APPORTIONED TO THAT MUNICIPAL 307
CORPORATION.
AS USED IN THIS DIVISION, "PROPERLY AUTHORIZED OFFICER, 309
EMPLOYEE, OR AGENT" MEANS AN OFFICER, EMPLOYEE, OR AGENT OF A 310
MUNICIPAL CORPORATION WHO IS AUTHORIZED BY CHARTER OR ORDINANCE 311
OF THE MUNICIPAL CORPORATION TO VIEW OR POSSESS INFORMATION 312
REFERRED TO IN DIVISION (A) OF THIS SECTION. 313
Sec. 718.21. (A) AS USED IN THIS SECTION: 316
(1) "NET INCOME" MEANS NET INCOME AS DETERMINED UNDER 319
SECTION 5733.04 OF THE REVISED CODE FOR THE TAXABLE YEAR ENDING 321
BEFORE THE FIRST DAY OF JANUARY OF THE TAX YEAR AND AS ALLOCATED 323
AND APPORTIONED TO THIS STATE UNDER SECTIONS 5733.05 AND 324
5733.051, AND SUBJECT TO SECTIONS 5733.052, 5733.053, 5733.057, 325
5733.058, 5733.059, AND 5733.0510 OF THE REVISED CODE. AN 326
ELECTRIC LIGHT COMPANY THAT IS NOT A TAXPAYER AS DEFINED IN 327
SECTION 5733.04 OF THE REVISED CODE SHALL COMPUTE NET INCOME AS 329
IF IT WERE A TAXPAYER AS DEFINED IN THAT SECTION. AN ELECTRIC 330
LIGHT COMPANY THAT SATISFIES THE DEFINITION OF AN "EXITING 331
CORPORATION" UNDER DIVISION (H) OF SECTION 5733.06 OF THE REVISED 333
CODE SHALL REPORT AS ITS NET INCOME UNDER THIS SECTION ANY OF ITS 335
"UNREPORTED NET INCOME" AS DEFINED IN THAT DIVISION. 336
(2) "PROPERTY FACTOR" MEANS, WITH RESPECT TO A MUNICIPAL 338
CORPORATION AND AN ELECTRIC LIGHT COMPANY, THE QUOTIENT OBTAINED 340
BY DIVIDING (a) THE TAXABLE VALUE OF THE COMPANY'S REAL AND 342
TANGIBLE PERSONAL PROPERTY SITUATED IN THE MUNICIPAL CORPORATION 343
FOR THE PROPERTY TAX YEAR IMMEDIATELY PRECEDING THE TAX YEAR BY 346
(b) THE TAXABLE VALUE OF THE COMPANY'S REAL AND TANGIBLE PERSONAL 347
PROPERTY SITUATED IN THIS STATE FOR THE PROPERTY TAX YEAR 348
IMMEDIATELY PRECEDING THE TAX YEAR. IF A COMPANY RENTS OR LEASES 350
REAL OR TANGIBLE PERSONAL PROPERTY IN THIS STATE, THE COMPANY
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SHALL INCLUDE THE TAXABLE VALUE OF ANY SUCH PROPERTY IN THE 352
AMOUNTS DESCRIBED IN DIVISIONS (A)(2)(a) AND (b) OF THIS SECTION. 353
THE TAX COMMISSIONER MAY PRESCRIBE PROCEDURES FOR DETERMINING THE 355
TAXABLE VALUE OF PROPERTY THAT IS RENTED OR LEASED. 356
IN THE CASE OF A COMBINED COMPANY, THE QUOTIENT SHALL 358
INCLUDE ONLY THE TAXABLE VALUE OF TAXABLE REAL AND TANGIBLE 359
PERSONAL PROPERTY ATTRIBUTED TO THE COMBINED COMPANY'S ACTIVITY 361
AS AN ELECTRIC COMPANY. THE TAXABLE REAL AND TANGIBLE PERSONAL 362
PROPERTY TO ATTRIBUTE TO AN ELECTRIC COMPANY ACTIVITY SHALL BE 363
DETERMINED UNDER THE SAME METHODOLOGY PRESCRIBED UNDER SECTION
5727.03 OF THE REVISED CODE FOR TAXABLE TANGIBLE PERSONAL 364
PROPERTY. THE PROPERTY FACTOR SHALL BE DETERMINED ON THE BASIS 366
OF THE APPORTIONMENT OF INCOME REPORT REQUIRED TO BE FILED UNDER 367
DIVISION (B) OF THIS SECTION FOR THE TAX YEAR. 368
(3) "PAYROLL FACTOR" MEANS, WITH RESPECT TO A MUNICIPAL 370
CORPORATION AND AN ELECTRIC LIGHT COMPANY, THE QUOTIENT OBTAINED 372
BY DIVIDING (a) THE TOTAL AMOUNT OF COMPENSATION PAID BY THE 374
COMPANY TO EMPLOYEES FOR PERSONAL SERVICES RENDERED IN THE 375
MUNICIPAL CORPORATION DURING THE CALENDAR YEAR IMMEDIATELY
PRECEDING THE TAX YEAR BY (b) THE TOTAL AMOUNT OF COMPENSATION 377
PAID BY THAT COMPANY TO EMPLOYEES FOR PERSONAL SERVICES RENDERED 378
IN THIS STATE DURING THE CALENDAR YEAR IMMEDIATELY PRECEDING THE 379
TAX YEAR. IN THE CASE OF A COMBINED COMPANY, THE QUOTIENT SHALL 380
INCLUDE ONLY COMPENSATION PAID BY THE COMPANY TO EMPLOYEES FOR 381
PERSONAL SERVICES RENDERED IN THE COMPANY'S ACTIVITY AS AN 382
ELECTRIC LIGHT COMPANY.
THE PAYROLL FACTOR SHALL BE DETERMINED ON THE BASIS OF THE 384
APPORTIONMENT OF INCOME REPORT REQUIRED TO BE FILED UNDER 385
DIVISION (B)(1) OF THIS SECTION FOR THE TAX YEAR. 386
(4) "TAXABLE VALUE" MEANS THE TAXABLE VALUE OF REAL OR 388
TANGIBLE PERSONAL PROPERTY AS ASSESSED FOR TAXATION UNDER CHAPTER 389
5713. OR 5727. OF THE REVISED CODE FOR THE YEAR PRECEDING THE TAX 390
YEAR. "COMPENSATION" MEANS ANY FORM OF REMUNERATION PAID TO AN 391
EMPLOYEE FOR PERSONAL SERVICES.
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(B)(1) NOT LATER THAN THE FIFTEENTH DAY OF FEBRUARY EACH 394
TAX YEAR, EACH ELECTRIC LIGHT COMPANY SHALL FILE AN APPORTIONMENT 395
OF INCOME REPORT FOR THE TAX YEAR WITH THE TAX COMMISSIONER. THE 396
REPORT SHALL CONTAIN ALL INFORMATION NECESSARY FOR THE TAX 397
COMMISSIONER TO DETERMINE THE COMPANY'S PROPERTY AND PAYROLL 398
FACTOR AND ANY OTHER INFORMATION REQUIRED BY THE TAX 399
COMMISSIONER. THE TAX COMMISSIONER MAY EXTEND THE LAST DAY FOR 400
FILING THE APPORTIONMENT OF INCOME REPORT FOR NOT MORE THAN 401
THIRTY DAYS.
(2) THE INCOME OF AN ELECTRIC LIGHT COMPANY SUBJECT TO 404
TAXATION BY A MUNICIPAL CORPORATION SHALL BE DETERMINED BY THE
TAX COMMISSIONER BY MULTIPLYING THE COMPANY'S NET INCOME BY A 406
FRACTION, THE NUMERATOR OF WHICH IS THE SUM OF (1) THE PROPERTY 407
FACTOR MULTIPLIED BY FIFTY AND (2) THE PAYROLL FACTOR MULTIPLIED 408
BY FIFTY, AND THE DENOMINATOR OF WHICH IS ONE HUNDRED; PROVIDED 409
THAT THE DENOMINATOR SHALL BE REDUCED BY FIFTY IF THE TOTAL 410
AMOUNT OF COMPENSATION PAID BY THE COMPANY FOR PERSONAL SERVICES 411
RENDERED IN THIS STATE DURING THE TAXABLE YEAR IS ZERO AND BY 412
FIFTY IF THE TAXABLE VALUE OF THE COMPANY'S REAL AND TANGIBLE 413
PERSONAL PROPERTY SITUATED IN THIS STATE IS ZERO. 414
(3) NOT LATER THAN THE FIRST DAY OF APRIL EACH TAX YEAR, 416
THE TAX COMMISSIONER SHALL SEND A CERTIFICATE OF APPORTIONMENT, 418
BY ORDINARY MAIL, TO THE COMPANY AND TO EACH MUNICIPAL
CORPORATION TO WHICH THE COMPANY'S NET INCOME IS APPORTIONED FOR 419
THAT TAX YEAR. 420
(C) EACH ELECTRIC LIGHT COMPANY THE INCOME OF WHICH IS 423
SUBJECT TO TAXATION BY A MUNICIPAL CORPORATION IN THIS STATE
SHALL FILE AN ANNUAL REPORT WITH THE TAX COMMISSIONER, IN THE 425
FORM PRESCRIBED BY THE TAX COMMISSIONER, BETWEEN THE FIRST DAY OF 426
JANUARY AND THE THIRTY-FIRST DAY OF MARCH. IF THE COMPANY 428
OBTAINS AN EXTENSION, PURSUANT TO SECTION 5733.13 OF THE REVISED 429
CODE, FOR FILING THE REPORT REQUIRED BY SECTION 5733.02 OF THE 430
REVISED CODE, THE LAST DAY FOR FILING THE ANNUAL REPORT REQUIRED 431
BY THIS SECTION SHALL BE EXTENDED FOR A LIKE PERIOD. 432
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THE ANNUAL REPORT SHALL INCLUDE STATEMENTS OF THE FOLLOWING 435
FACTS AS OF THE FIRST DAY OF THE COMPANY'S ANNUAL ACCOUNTING 436
PERIOD THAT INCLUDES THE FIRST DAY OF JANUARY OF THE TAX YEAR: 438
(1) THE NAME OF THE COMPANY; 440
(2) THE NAME OF THE STATE OR COUNTRY UNDER THE LAWS OF 442
WHICH IT IS INCORPORATED; 443
(3) THE LOCATION OF ITS PRINCIPAL OFFICE IN THIS STATE 445
AND, IN THE CASE OF A COMPANY INCORPORATED UNDER THE LAWS OF 447
ANOTHER STATE, THE PRINCIPAL PLACE OF BUSINESS IN THIS STATE AND 448
THE NAME AND ADDRESS OF THE OFFICER OR AGENT OF THE COMPANY IN 449
CHARGE OF THE BUSINESS CONDUCTED IN THIS STATE; 450
(4) THE NAMES OF THE PRESIDENT, SECRETARY, TREASURER, AND 452
STATUTORY AGENT IN THIS STATE, WITH THE POST-OFFICE ADDRESS OF 453
EACH; 454
(5) THE DATE OF THE BEGINNING OF THE COMPANY'S ANNUAL 457
ACCOUNTING PERIOD THAT INCLUDES THE FIRST DAY OF JANUARY OF THE 458
TAX YEAR; 459
(6) THE COMPANY'S NET INCOME DURING THE COMPANY'S TAXABLE 462
YEAR;
(7) THE MUNICIPAL CORPORATIONS IN THIS STATE IN WHICH THE 464
COMPANY OWNS, RENTS, OR LEASES REAL OR TANGIBLE PERSONAL PROPERTY 465
OR EMPLOYS INDIVIDUALS; 466
(8) ANY OTHER INFORMATION THE TAX COMMISSIONER REQUIRES 468
FOR THE PROPER ADMINISTRATION OF THIS SECTION AND SECTIONS 718.22 469
TO 718.30 OF THE REVISED CODE. 470
THE TAX COMMISSIONER MAY REQUIRE ANY REPORTS REQUIRED UNDER 472
SECTIONS 718.21 TO 718.30 OF THE REVISED CODE TO BE FILED IN AN 473
ELECTRONIC FORMAT. 474
(D)(1) EACH ELECTRIC LIGHT COMPANY SUBJECT TO A MUNICIPAL 478
INCOME TAX SHALL REMIT WITH THE ANNUAL REPORT THE TAXES SHOWN TO 479
BE DUE ON THE REPORT, LESS THE AMOUNT PAID FOR THE YEAR UNDER 481
DIVISION (C) OR (D) OF SECTION 718.22 OF THE REVISED CODE OR PAID 483
FOR THE YEAR DIRECTLY TO A MUNICIPAL CORPORATION AS REQUIRED BY
THE LAWS OF THE MUNICIPAL CORPORATION PURSUANT TO DIVISION (B) OF 484
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THAT SECTION. THE REMITTANCE SHALL BE MADE PAYABLE TO THE 486
TREASURER OF STATE. UPON RECEIPT OF THE REPORT AND REMITTANCE, 487
THE TREASURER OF STATE SHALL SHOW ON THE REPORT THE DATE IT WAS 488
FILED AND THE AMOUNT OF PAYMENT REMITTED. THE TREASURER OF STATE 489
SHALL, WITHOUT UNNECESSARY DELAY, TRANSMIT ALL REPORTS TO THE TAX 490
COMMISSIONER.
(2) THE TREASURER OF STATE SHALL CREDIT EACH REMITTANCE TO 492
THE MUNICIPAL INCOME TAX FUND, WHICH IS HEREBY CREATED IN THE 493
STATE TREASURY, EXCEPT THAT ONE AND ONE-HALF PER CENT OF THE 494
REMITTANCE SHALL BE CREDITED TO THE MUNICIPAL INCOME TAX 495
ADMINISTRATIVE FUND, WHICH IS HEREBY CREATED IN THE STATE 496
TREASURY. MONEY TO THE CREDIT OF THE MUNICIPAL INCOME TAX 497
ADMINISTRATIVE FUND SHALL BE USED SOLELY TO DEFRAY THE TAX 498
COMMISSIONER'S EXPENSES IN ADMINISTERING THIS SECTION AND 499
SECTIONS 718.22 TO 718.30 OF THE REVISED CODE. ANY MONEY NOT 501
NECESSARY TO DEFRAY SUCH EXPENSES SHALL BE TRANSFERRED TO THE 502
MUNICIPAL INCOME TAX FUND. ALL INVESTMENT EARNINGS ON MONEY IN 504
THE MUNICIPAL INCOME TAX FUND SHALL BE APPORTIONED BY THE TAX 505
COMMISSIONER AMONG MUNICIPAL CORPORATIONS IN THE PROPORTIONS AND 506
AT THE TIMES THE MUNICIPAL CORPORATIONS ARE ENTITLED TO RECEIVE 507
PAYMENTS FROM THE FUND UNDER DIVISION (D)(3) OF THIS SECTION. 508
(3) UPON RECEIPT OF AN ANNUAL REPORT, THE TAX COMMISSIONER 510
SHALL DETERMINE THE PORTION OF THE COMPANY'S NET INCOME TO BE 512
APPORTIONED TO EACH MUNICIPAL CORPORATION AND MULTIPLY THAT 513
PORTION BY THE RATE AT WHICH THE MUNICIPAL CORPORATION'S INCOME 514
TAX IS IMPOSED, AS CERTIFIED UNDER DIVISION (E) OF THIS SECTION. 516
THE TAX COMMISSIONER SHALL SUBTRACT FROM THE PRODUCT SO OBTAINED 517
ANY PAYMENT MADE FOR THE YEAR FROM THE MUNICIPAL INCOME TAX FUND 518
TO THE MUNICIPAL CORPORATION UNDER DIVISION (F) OF SECTION 718.22 519
OF THE REVISED CODE AND ANY PAYMENT MADE FOR THE YEAR BY A 521
COMPANY DIRECTLY TO A MUNICIPAL CORPORATION PURSUANT TO DIVISION
(D)(2) OF THAT SECTION OR PURSUANT TO DIVISION (B) OF THAT 522
SECTION AS REQUIRED BY THE LAWS OF THE MUNICIPAL CORPORATION. 523
THE TAX COMMISSIONER SHALL CERTIFY THE RESULTING AMOUNT FOR EACH 525
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MUNICIPAL CORPORATION TO THE DIRECTOR OF BUDGET AND MANAGEMENT, 526
WHO SHALL PROVIDE FOR PAYMENT OF THAT AMOUNT TO THE MUNICIPAL 527
CORPORATION FROM THE MUNICIPAL INCOME TAX FUND.
(E)(1) ON OR BEFORE THE FIRST DAY OF JANUARY EACH YEAR, 530
EACH MUNICIPAL CORPORATION THAT IMPOSES A MUNICIPAL INCOME TAX 531
SHALL CERTIFY TO THE TAX COMMISSIONER THE RATE OF ITS INCOME TAX 532
FOR THE YEAR THAT BEGINS ON THAT DAY AND SHALL CERTIFY THE RATE 533
RESULTING FROM ANY CHANGE IN THE RATE OCCURRING AFTER THE INITIAL 535
CERTIFICATION.
(2) IF ANY MUNICIPAL CORPORATION FAILS TO CERTIFY THE RATE 537
OF ITS INCOME TAX AS REQUIRED BY THIS SECTION, THE TAX 538
COMMISSIONER SHALL NOTIFY THE DIRECTOR OF BUDGET AND MANAGEMENT, 539
WHO, UPON SUCH NOTIFICATION, SHALL WITHHOLD FROM THE PAYMENT TO 540
BE MADE UNDER DIVISION (D) OF THIS SECTION FIFTY PER CENT OF THE 542
AMOUNT OF THE PAYMENT OTHERWISE DUE THE MUNICIPAL CORPORATION AS 543
COMPUTED ON THE BASIS OF THE RATE MOST RECENTLY CERTIFIED UNTIL 544
THE MUNICIPAL CORPORATION CERTIFIES THE RATE TO THE TAX 545
COMMISSIONER.
(F) NO MUNICIPAL CORPORATION SHALL REQUIRE AN ELECTRIC 548
LIGHT COMPANY REQUIRED TO FILE A REPORT UNDER DIVISION (C) OF 550
THIS SECTION TO FILE ANY REPORT OF INCOME, BUT A MUNICIPAL 551
CORPORATION MAY REQUIRE SUCH A COMPANY TO FILE A REPORT OF 552
COMPENSATION PAID TO EMPLOYEES FOR PERSONAL SERVICES RENDERED IN 553
THE MUNICIPAL CORPORATION AND THE TAXABLE VALUE OF REAL AND
TANGIBLE PERSONAL PROPERTY SITUATED IN THE MUNICIPAL CORPORATION. 554
(G) THE TAX COMMISSIONER MAY ADOPT RULES GOVERNING THE 556
RETENTION OF RECORDS AND OTHER PERTINENT DOCUMENTS BY ELECTRIC 558
LIGHT COMPANIES AND THE FILING OF FEDERAL INCOME TAX RETURNS AND 559
REPORTS REQUIRED TO BE FILED UNDER CHAPTER 5733. OF THE REVISED 560
CODE. ELECTRIC LIGHT COMPANIES SHALL MAKE THOSE RECORDS, 561
DOCUMENTS, RETURNS, AND REPORTS OPEN TO INSPECTION BY THE TAX 562
COMMISSIONER DURING NORMAL BUSINESS HOURS, AND SHALL PRESERVE 563
THOSE RECORDS, DOCUMENTS, RETURNS, AND REPORTS FOR A PERIOD OF 564
THREE YEARS AFTER THE DATE THE RETURN OR REPORT, OR RETURN OR 565
14
REPORT TO WHICH SUCH A RECORD OR DOCUMENT PERTAINS, WAS REQUIRED 566
TO BE FILED OR ACTUALLY WAS FILED, WHICHEVER IS LATER. THE TAX 567
COMMISSIONER MAY CONSENT IN WRITING TO THE DESTRUCTION OF SUCH 568
RECORDS, DOCUMENTS, RETURNS, OR REPORTS WITHIN THAT THREE-YEAR 569
PERIOD. 570
(H) THE TAX COMMISSIONER SHALL ADMINISTER AND ENFORCE 572
SECTIONS 718.21 TO 718.30 OF THE REVISED CODE. IN ADDITION TO 573
ANY OTHER POWERS CONFERRED BY LAW ON THE TAX COMMISSIONER, THE 574
TAX COMMISSIONER MAY PRESCRIBE ALL FORMS REQUIRED TO BE FILED 575
UNDER THOSE SECTIONS, ADOPT RULES THAT, IN THE OPINION OF THE TAX 576
COMMISSIONER, ARE NECESSARY TO CARRY OUT THOSE SECTIONS, AND 577
APPOINT AND EMPLOY SUCH PERSONNEL AS MAY BE NECESSARY TO CARRY 578
OUT THE TAX COMMISSIONER'S DUTIES UNDER THOSE SECTIONS. 579
Sec. 718.22. (A) AS USED IN THIS SECTION, "COMBINED TAX 582
LIABILITY FOR THE PRECEDING TAX YEAR" MEANS THE TOTAL OF THE TAX 583
LIABILITIES FOR THE PRECEDING TAX YEAR TO ALL MUNICIPAL
CORPORATIONS TO WHICH AN ELECTRIC LIGHT COMPANY'S NET INCOME IS 585
APPORTIONED FOR THAT YEAR UNDER SECTION 718.21 OF THE REVISED 586
CODE.
(B) EACH ELECTRIC LIGHT COMPANY SHALL REPORT AND REMIT 588
ESTIMATED TAXES FOR EACH YEAR AS REQUIRED BY DIVISION (C) OR (D) 589
OF THIS SECTION, OR AS REQUIRED BY THE LAWS OF EACH MUNICIPAL 590
CORPORATION TO WHICH THE COMPANY'S NET INCOME IS APPORTIONED 591
UNDER SECTION 718.21 OF THE REVISED CODE.
(C)(1) SUBJECT TO DIVISIONS (C)(2) AND (D) OF THIS 594
SECTION, A DECLARATION OF ESTIMATED TAX SHALL BE FILED WITH, AND 596
PAYMENTS OF ESTIMATED TAX SHALL BE REMITTED TO, THE TAX 597
COMMISSIONER ON OR BEFORE THE FIFTEENTH DAY OF APRIL, JUNE, 599
SEPTEMBER, AND DECEMBER OF EACH YEAR IN AN AMOUNT EQUAL TO 600
TWENTY-FIVE PER CENT OF THE COMBINED TAX LIABILITY FOR THE 601
PRECEDING TAX YEAR. NOTWITHSTANDING ANY OTHER SECTION IN THIS 602
CHAPTER, NO PENALTY OR INTEREST SHALL BE IMPOSED ON AN ELECTRIC 603
LIGHT COMPANY IF THE ESTIMATED TAX IS PAID WITHIN THE TIME 604
PRESCRIBED BY THIS DIVISION AND THE TOTAL AMOUNT OF ESTIMATED TAX 605
15
PAID FOR THE TAX YEAR EQUALS AT LEAST ONE HUNDRED PER CENT OF THE 606
COMPANY'S COMBINED TAX LIABILITY FOR THE PRECEDING TAX YEAR. 607
(2) IN MAKING ESTIMATED TAX PAYMENTS IN CALENDAR YEARS 609
2002 AND 2003 AT THE TIMES PRESCRIBED BY DIVISION (C)(1) OF THIS 610
SECTION, AN ELECTRIC LIGHT COMPANY SHALL MAKE A GOOD FAITH 611
ESTIMATE OF ITS COMBINED TAX LIABILITY TO ALL MUNICIPAL 612
CORPORATIONS FOR TAX YEARS 2003 AND 2004, AND REMIT ESTIMATED 613
TAXES AT EACH OF THOSE TIMES IN AN AMOUNT EQUAL TO TWENTY PER 614
CENT OF THE GOOD FAITH ESTIMATE IN LIEU OF THE AMOUNT OTHERWISE 615
PRESCRIBED BY THAT DIVISION. NOTWITHSTANDING ANY OTHER SECTION 616
IN THIS CHAPTER, NO PENALTY OR INTEREST SHALL BE IMPOSED ON AN 617
ELECTRIC LIGHT COMPANY IF THE AMOUNT PAID UNDER DIVISION (C)(2) 618
OF THIS SECTION EQUALS AT LEAST EIGHTY PER CENT OF THE COMPANY'S 619
COMBINED TAX LIABILITY TO ALL MUNICIPAL CORPORATIONS FOR TAX YEAR 620
2003.
(3) ANY ELECTRIC LIGHT COMPANY REQUIRED BY DIVISION (C)(1) 622
OR (2) OF THIS SECTION TO MAKE AN ESTIMATED TAX PAYMENT OF MORE 623
THAN FOUR THOUSAND DOLLARS SHALL REMIT THE PAYMENT BY ELECTRONIC 624
FUNDS TRANSFER AS PRESCRIBED BY SECTION 718.222 OF THE REVISED 625
CODE.
(D) DIVISION (D) OF THIS SECTION DOES NOT APPLY TO 628
ESTIMATED TAX PAYMENTS MADE IN 2002 OR 2003.
(1) IF, IN THE PRECEDING YEAR, AN ELECTRIC LIGHT COMPANY 630
WAS NOT SUBJECT TO INCOME TAXATION BY ANY MUNICIPAL CORPORATION 632
IN THIS STATE BUT IS SUBJECT TO A MUNICIPAL CORPORATION'S INCOME 633
TAX IN THE CURRENT YEAR, THE COMPANY MAY FILE A DECLARATION OF 634
ESTIMATED TAXES AND REMIT ESTIMATED TAXES AS PRESCRIBED BY 635
DIVISIONS (C)(1) AND (3) OF THIS SECTION, BUT SHALL COMPUTE THE 637
AMOUNT OF PAYMENT ON THE BASIS OF THE COMPANY'S ESTIMATE, MADE IN 638
GOOD FAITH, OF THE TOTAL LIABILITY FOR THE CURRENT YEAR TO ALL 639
MUNICIPAL CORPORATIONS IN LIEU OF THE COMBINED TAX LIABILITY FOR 641
THE PRECEDING YEAR.
(2) IF A COMPANY IS SUBJECT TO A MUNICIPAL CORPORATION'S 643
INCOME TAX IN THE CURRENT YEAR BUT ITS NET INCOME WAS NOT 644
16
APPORTIONED TO THAT MUNICIPAL CORPORATION IN THE PRECEDING YEAR, 645
THE COMPANY SHALL REMIT ESTIMATED TAXES TO THAT MUNICIPAL 646
CORPORATION ON OR BEFORE EACH OF THE DATES PRESCRIBED IN 647
DIVISIONS (C)(1) TO (4) OF THIS SECTION IN AN AMOUNT THAT THE 648
COMPANY ESTIMATES, IN GOOD FAITH, TO EQUAL TWENTY-FIVE PER CENT 649
OF ITS TAX LIABILITY TO THAT MUNICIPAL CORPORATION FOR THE 650
CURRENT YEAR.
(E) NOT LATER THAN THE FIFTEENTH DAY OF JANUARY, MAY, 653
JULY, AND OCTOBER OF EACH YEAR, THE TAX COMMISSIONER SHALL 655
DETERMINE THE PORTION OF THE REMITTANCES RECEIVED DURING THE 656
ESTIMATED TAX PAYMENT PERIOD ENDING ON THE FIFTEENTH DAY OF THE 657
PRECEDING MONTH AND NOT PREVIOUSLY PAID UNDER THIS DIVISION THAT 658
SHALL BE PAID TO EACH MUNICIPAL CORPORATION, AND SHALL PROVIDE 660
FOR PAYMENT OF THAT AMOUNT TO THE MUNICIPAL CORPORATION FROM THE 661
MUNICIPAL INCOME TAX FUND. THE AMOUNT PAID TO A MUNICIPAL 664
CORPORATION SHALL BE DETERMINED ON THE BASIS OF THE PAYROLL AND
PROPERTY FACTORS REPORTED IN THE MOST RECENTLY FILED 665
APPORTIONMENT OF INCOME REPORT REQUIRED UNDER SECTION 718.21 OF 666
THE REVISED CODE. THE TAX COMMISSIONER SHALL DETERMINE THE 667
AMOUNT TO BE RETAINED IN THE MUNICIPAL INCOME TAX FUND NECESSARY 668
TO PAY REFUNDS OF MUNICIPAL INCOME TAXES TO ELECTRIC LIGHT 669
COMPANIES, AND SHALL ADJUST ANY PAYMENTS MADE UNDER THIS DIVISION 670
TO CORRECT ANY OVERPAYMENTS PREVIOUSLY MADE TO A MUNICIPAL 671
CORPORATION.
Sec. 718.221. THE TAX COMMISSIONER MAY DESIGNATE AN AGENCY 673
REPRESENTING MUNICIPAL CORPORATIONS TO PERFORM THE DUTIES 674
PRESCRIBED BY THIS SECTION. THE AGENCY SHALL REPRESENT ALL 675
MUNICIPAL CORPORATIONS THAT IMPOSE AN INCOME TAX AND TO WHICH THE 676
NET INCOME OF AN ELECTRIC LIGHT COMPANY IS APPORTIONED UNDER 677
SECTION 718.21 OF THE REVISED CODE UNLESS THE TAX COMMISSIONER 678
FINDS THAT THE DESIGNATION OF AN AGENCY THAT DOES NOT REPRESENT
ALL SUCH MUNICIPAL CORPORATIONS IS NOT LIKELY TO EXCESSIVELY 680
IMPAIR THE ABILITY OF TAXPAYERS TO COMPLY WITH THE REQUIREMENTS 681
OF SECTIONS 718.21 AND 718.22 OF THE REVISED CODE. 682
17
IF THE TAX COMMISSIONER DESIGNATES SUCH AN AGENCY, THE 684
AGENCY SHALL DETERMINE THE APPORTIONMENT OF THE INCOME OF EACH 685
ELECTRIC LIGHT COMPANY IN THE MANNER PRESCRIBED BY DIVISION (B) 686
OF SECTION 718.21 OF THE REVISED CODE; MAIL CERTIFICATES OF 687
APPORTIONMENT OR SIMILAR NOTICES TO MUNICIPAL CORPORATIONS AND 688
COMPANIES; PRESCRIBE THE FORM OF THE DECLARATION OF ESTIMATED TAX 689
REPORTS AND RECEIVE SUCH REPORTS FROM COMPANIES; PRESCRIBE THE 690
FORM OF ANNUAL REPORTS AND RECEIVE SUCH REPORTS FROM COMPANIES; 691
CREDIT REMITTANCES TO A FUND OR ACCOUNT ESTABLISHED AND 692
MAINTAINED AND HELD IN TRUST BY THE AGENCY FOR MUNICIPAL 693
CORPORATIONS; AND DISTRIBUTE MONEY FROM THE FUND OR ACCOUNT TO 694
EACH MUNICIPAL CORPORATION ENTITLED TO REVENUE FROM THE TAXATION 695
OF APPORTIONED INCOME IN THE AMOUNT APPORTIONED TO THAT MUNICIPAL 696
CORPORATION.
AN AGENCY DESIGNATED UNDER THIS SECTION IS AN AGENT OF THE 698
TAX COMMISSIONER AND IS SUBJECT TO SECTION 5703.21 OF THE REVISED 699
CODE.
Sec. 718.222. AN ELECTRIC LIGHT COMPANY REQUIRED BY 701
SECTION 718.22 OF THE REVISED CODE TO REMIT ESTIMATED TAX 702
PAYMENTS BY ELECTRONIC FUNDS TRANSFER SHALL REMIT SUCH PAYMENTS 703
TO THE TREASURER OF STATE IN THE MANNER PRESCRIBED BY RULES 704
ADOPTED BY THE TREASURER UNDER SECTION 113.061 OF THE REVISED 705
CODE. EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH, THE 706
PAYMENT OF TAXES BY ELECTRONIC FUNDS TRANSFER DOES NOT AFFECT A 707
COMPANY'S OBLIGATION TO FILE REPORTS UNDER SECTIONS 718.21 TO 708
718.30 OF THE REVISED CODE.
THE TREASURER OF STATE, IN CONSULTATION WITH THE TAX 710
COMMISSIONER, MAY ADOPT RULES GOVERNING THE FORMAT FOR REPORTING 711
AND PAYING ESTIMATED TAXES BY ELECTRONIC FUNDS TRANSFER. 712
AN ELECTRIC LIGHT COMPANY REQUIRED TO REMIT TAXES BY 714
ELECTRONIC FUNDS TRANSFER MAY APPLY TO THE TREASURER OF STATE IN 715
THE MANNER PRESCRIBED BY THE TREASURER TO BE EXCUSED FROM THAT 716
REQUIREMENT. THE TREASURER OF STATE MAY EXCUSE THE COMPANY FROM 717
THE REQUIREMENT FOR GOOD CAUSE SHOWN FOR THE PERIOD OF TIME 719
18
REQUESTED BY THE COMPANY OR FOR A PORTION OF THAT PERIOD. THE 720
TREASURER SHALL NOTIFY THE TAX COMMISSIONER AND THE TAXPAYER OF 721
THE TREASURER'S DECISION AS SOON AS IS PRACTICABLE. 722
IF AN ELECTRIC LIGHT COMPANY REQUIRED BY THIS SECTION TO 724
REMIT TAXES BY ELECTRONIC FUNDS TRANSFER REMITS THOSE TAXES BY 725
SOME MEANS OTHER THAN BY ELECTRONIC FUNDS TRANSFER AS PRESCRIBED 726
BY THIS SECTION AND THE RULES ADOPTED BY THE TREASURER OF STATE, 727
AND THE TREASURER DETERMINES THAT SUCH FAILURE WAS NOT DUE TO 728
REASONABLE CAUSE OR WAS DUE TO WILLFUL NEGLECT, THE TREASURER 729
SHALL NOTIFY THE TAX COMMISSIONER OF THE FAILURE TO REMIT BY 730
ELECTRONIC FUNDS TRANSFER AND SHALL PROVIDE THE COMMISSIONER WITH 731
ANY INFORMATION USED IN MAKING THAT DETERMINATION. THE TAX 732
COMMISSIONER MAY COLLECT AN ADDITIONAL CHARGE BY ASSESSMENT IN 733
THE MANNER PRESCRIBED BY SECTION 718.23 OF THE REVISED CODE. THE 734
ADDITIONAL CHARGE SHALL EQUAL FIVE PER CENT OF THE AMOUNT OF THE 735
TAXES OR ESTIMATED TAX PAYMENTS REQUIRED TO BE PAID BY ELECTRONIC 736
FUNDS TRANSFER, BUT SHALL NOT EXCEED FIVE THOUSAND DOLLARS. ANY 737
ADDITIONAL CHARGE ASSESSED UNDER THIS SECTION IS IN ADDITION TO 738
ANY OTHER PENALTY OR CHARGE IMPOSED UNDER THIS CHAPTER, AND SHALL 739
BE CONSIDERED AS REVENUE ARISING FROM MUNICIPAL INCOME TAXES 740
COLLECTED UNDER SECTIONS 718.21 TO 718.30 OF THE REVISED CODE. 741
THE TAX COMMISSIONER MAY REMIT ALL OR A PORTION OF SUCH A CHARGE 743
AND MAY ADOPT RULES GOVERNING SUCH REMISSION.
NO ADDITIONAL CHARGE SHALL BE ASSESSED UNDER THIS SECTION 745
AGAINST A COMPANY THAT HAS BEEN NOTIFIED OF ITS OBLIGATION TO 746
REMIT TAXES UNDER THIS SECTION AND THAT REMITS ITS FIRST TWO TAX 747
PAYMENTS AFTER SUCH NOTIFICATION BY SOME MEANS OTHER THAN 748
ELECTRONIC FUNDS TRANSFER. THE ADDITIONAL CHARGE MAY BE ASSESSED 749
UPON THE REMITTANCE OF ANY SUBSEQUENT TAX PAYMENT THAT THE 750
COMPANY REMITS BY SOME MEANS OTHER THAN ELECTRONIC FUNDS 751
TRANSFER. 752
Sec. 718.23. (A) IF ANY ELECTRIC LIGHT COMPANY REQUIRED 762
TO FILE A REPORT UNDER SECTION 718.21 OR DIVISION (C) OR (D)(1) 763
OF SECTION 718.22 OF THE REVISED CODE FAILS TO FILE THE REPORT 765
19
WITHIN THE TIME PRESCRIBED, FILES AN INCORRECT REPORT, OR FAILS 766
TO REMIT THE FULL AMOUNT OF THE TAX DUE FOR THE PERIOD COVERED BY 767
THE REPORT, THE TAX COMMISSIONER MAY MAKE AN ASSESSMENT AGAINST 768
THE COMPANY FOR ANY DEFICIENCY FOR THE PERIOD FOR WHICH THE 769
REPORT OR TAX IS DUE, BASED UPON ANY INFORMATION IN THE 770
COMMISSIONER'S POSSESSION. 771
THE TAX COMMISSIONER SHALL NOT MAKE OR ISSUE AN ASSESSMENT 773
AGAINST A COMPANY MORE THAN THREE YEARS AFTER THE LATER OF THE 775
FINAL DATE THE REPORT SUBJECT TO ASSESSMENT WAS REQUIRED TO BE 776
FILED OR THE DATE THE REPORT WAS FILED. SUCH TIME LIMIT MAY BE 777
EXTENDED IF BOTH THE COMPANY AND THE COMMISSIONER CONSENT IN 778
WRITING TO THE EXTENSION. ANY SUCH EXTENSION SHALL EXTEND THE 779
THREE-YEAR TIME LIMIT IN SECTION 718.28 OF THE REVISED CODE FOR 780
THE SAME PERIOD OF TIME. THERE SHALL BE NO BAR OR LIMIT TO AN 781
ASSESSMENT AGAINST A COMPANY THAT FAILS TO FILE A REPORT SUBJECT 783
TO ASSESSMENT AS REQUIRED BY SECTIONS 718.21 TO 718.30 OF THE 784
REVISED CODE, OR THAT FILES A FRAUDULENT REPORT. THE
COMMISSIONER SHALL GIVE THE COMPANY ASSESSED WRITTEN NOTICE OF 786
THE ASSESSMENT BY PERSONAL SERVICE OR CERTIFIED MAIL. 787
(B) UNLESS THE COMPANY TO WHICH THE NOTICE OF ASSESSMENT 790
IS DIRECTED FILES WITH THE COMMISSIONER WITHIN THIRTY DAYS AFTER 791
SERVICE THEREOF, EITHER PERSONALLY OR BY CERTIFIED MAIL, A 792
PETITION FOR REASSESSMENT IN WRITING, SIGNED BY THE AUTHORIZED 793
AGENT OF THE COMPANY ASSESSED HAVING KNOWLEDGE OF THE FACTS, AND 794
MAKES PAYMENT OF THE PORTION OF THE ASSESSMENT REQUIRED BY 795
DIVISION (E) OF THIS SECTION, THE ASSESSMENT SHALL BECOME FINAL, 796
AND THE AMOUNT OF THE ASSESSMENT SHALL BE DUE AND PAYABLE FROM 797
THE COMPANY ASSESSED TO THE TREASURER OF STATE. THE PETITION 798
SHALL INDICATE THE COMPANY'S OBJECTIONS, BUT ADDITIONAL 799
OBJECTIONS MAY BE RAISED IN WRITING IF RECEIVED PRIOR TO THE DATE 800
SHOWN ON THE FINAL DETERMINATION BY THE COMMISSIONER. 801
UNLESS THE PETITIONER WAIVES A HEARING, THE COMMISSIONER 803
SHALL ASSIGN A TIME AND PLACE FOR THE HEARING ON THE PETITION AND 804
NOTIFY THE PETITIONER OF THE TIME AND PLACE OF THE HEARING BY 805
20
PERSONAL SERVICE OR CERTIFIED MAIL, BUT THE COMMISSIONER MAY 806
CONTINUE THE HEARING FROM TIME TO TIME IF NECESSARY. 807
THE COMMISSIONER MAY MAKE SUCH CORRECTION TO THE ASSESSMENT 809
AS THE COMMISSIONER FINDS PROPER. THE COMMISSIONER SHALL SERVE A 811
COPY OF THE FINAL DETERMINATION ON THE PETITIONER BY PERSONAL 812
SERVICE OR BY CERTIFIED MAIL, AND THE COMMISSIONER'S DECISION IN 813
THE MATTER SHALL BE FINAL, SUBJECT TO APPEAL AS PROVIDED IN 815
SECTION 5717.02 OF THE REVISED CODE. ONLY OBJECTIONS DECIDED ON 816
THE MERITS BY THE BOARD OF TAX APPEALS OR A COURT SHALL BE GIVEN 817
COLLATERAL ESTOPPEL OR RES JUDICATA EFFECT IN CONSIDERING AN 818
APPLICATION FOR REFUND OF AMOUNTS PAID PURSUANT TO THE 819
ASSESSMENT.
(C) AFTER AN ASSESSMENT BECOMES FINAL, IF ANY PORTION OF 821
THE ASSESSMENT REMAINS UNPAID, INCLUDING ACCRUED INTEREST, A 822
CERTIFIED COPY OF THE COMMISSIONER'S ENTRY MAKING THE ASSESSMENT 824
FINAL MAY BE FILED IN THE OFFICE OF THE CLERK OF THE COURT OF 825
COMMON PLEAS IN THE COUNTY IN WHICH THE COMPANY HAS AN OFFICE OR 826
PLACE OF BUSINESS IN THIS STATE, THE COUNTY IN WHICH THE 827
COMPANY'S STATUTORY AGENT IS LOCATED, OR FRANKLIN COUNTY. 828
IMMEDIATELY UPON THE FILING OF THE ENTRY, THE CLERK SHALL 830
ENTER A JUDGMENT AGAINST THE COMPANY ASSESSED IN THE AMOUNT SHOWN 832
ON THE ENTRY. THE JUDGMENT MAY BE FILED BY THE CLERK IN A
LOOSE-LEAF BOOK ENTITLED "SPECIAL JUDGMENTS FOR MUNICIPAL INCOME 833
TAXES," AND SHALL HAVE THE SAME EFFECT AS OTHER JUDGMENTS. 835
EXECUTION SHALL ISSUE UPON THE JUDGMENT UPON THE REQUEST OF THE 836
TAX COMMISSIONER, AND ALL LAWS APPLICABLE TO SALES ON EXECUTION 837
SHALL APPLY TO SALES MADE UNDER THE JUDGMENT.
THE PORTION OF AN ASSESSMENT NOT PAID WITHIN THIRTY DAYS 840
AFTER THE DAY THE ASSESSMENT WAS ISSUED SHALL BEAR INTEREST AT 841
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 842
CODE FROM THE DAY THE TAX COMMISSIONER ISSUES THE ASSESSMENT 843
UNTIL THE ASSESSMENT IS PAID. INTEREST SHALL BE PAID IN THE SAME 845
MANNER AS THE TAX AND MAY BE COLLECTED BY ISSUING AN ASSESSMENT 846
UNDER THIS SECTION.
21
(D) ALL MONEY COLLECTED UNDER THIS SECTION SHALL BE 848
CREDITED AS PRESCRIBED BY DIVISION (D) OF SECTION 718.21 OF THE 849
REVISED CODE.
(E) THE PORTION OF AN ASSESSMENT WHICH MUST BE PAID UPON 851
THE FILING OF A PETITION FOR REASSESSMENT SHALL BE AS FOLLOWS: 852
(1) IF THE SOLE ITEM OBJECTED TO IS THE ASSESSED PENALTY 854
OR INTEREST, FULL PAYMENT OF THE ASSESSMENT INCLUDING PENALTY AND 855
INTEREST IS REQUIRED. 856
(2) IF THE COMPANY THAT IS ASSESSED FAILED TO FILE, PRIOR 858
TO THE DATE OF ISSUANCE OF THE ASSESSMENT, THE ANNUAL REPORT 859
REQUIRED BY SECTION 718.21 OF THE REVISED CODE, FULL PAYMENT OF 861
THE ASSESSMENT INCLUDING PENALTY AND INTEREST IS REQUIRED. 862
(3) IF THE COMPANY THAT IS ASSESSED FILED, PRIOR TO THE 864
DATE OF ISSUANCE OF THE ASSESSMENT, THE ANNUAL REPORT REQUIRED BY 865
SECTION 718.21 OF THE REVISED CODE, AND A BALANCE OF THE TAXES 867
SHOWN DUE ON THE REPORTS AS COMPUTED ON THE REPORTS REMAINS 868
UNPAID, PAYMENT OF ONLY THAT PORTION OF THE ASSESSMENT 869
REPRESENTING THE UNPAID BALANCE IS REQUIRED. 870
(4) IF NONE OF THE CONDITIONS SPECIFIED IN DIVISIONS 873
(E)(1) TO (3) OF THIS SECTION APPLY, NO PAYMENT IS REQUIRED.
(F) NOTWITHSTANDING THE FACT THAT A PETITION FOR 875
REASSESSMENT IS PENDING, THE COMPANY MAY PAY ALL OR A PORTION OF 877
THE ASSESSMENT THAT IS THE SUBJECT OF THE PETITION. THE
ACCEPTANCE OF A PAYMENT BY THE TREASURER OF STATE DOES NOT 878
PREJUDICE ANY CLAIM FOR REFUND UPON FINAL DETERMINATION OF THE 879
PETITION. 880
IF UPON FINAL DETERMINATION OF THE PETITION AN ERROR IN THE 882
ASSESSMENT IS CORRECTED BY THE COMMISSIONER, UPON PETITION SO 883
FILED OR PURSUANT TO A DECISION OF THE BOARD OF TAX APPEALS OR 884
ANY COURT TO WHICH THE DETERMINATION OR DECISION HAS BEEN 885
APPEALED, SO THAT THE AMOUNT DUE FROM THE COMPANY UNDER THE 886
CORRECTED ASSESSMENT IS LESS THAN THE PORTION PAID, THERE SHALL 887
BE ISSUED TO THE COMPANY, ITS ASSIGNS, OR LEGAL REPRESENTATIVE A 889
REFUND IN THE AMOUNT OF THE OVERPAYMENT AS PROVIDED BY SECTION 890
22
781.28 OF THE REVISED CODE, WITH INTEREST ON THAT AMOUNT AS 892
PROVIDED BY SECTION 718.24 OF THE REVISED CODE. 893
Sec. 718.24. (A) IF THE TAX REQUIRED TO BE PAID UNDER 902
SECTION 718.21 OR 718.22 OF THE REVISED CODE, OR ANY PORTION OF 904
THAT TAX, WHETHER DETERMINED BY THE TAX COMMISSIONER OR THE 905
TAXPAYER, IS NOT PAID ON OR BEFORE THE DATE PRESCRIBED FOR ITS 906
PAYMENT, INTEREST SHALL BE ASSESSED, COLLECTED, AND PAID, IN THE 907
SAME MANNER AS THE TAX, UPON SUCH UNPAID AMOUNT AT THE RATE PER 908
ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED CODE FROM THE 909
DATE PRESCRIBED FOR ITS PAYMENT UNTIL IT IS PAID OR UNTIL THE DAY 910
AN ASSESSMENT IS ISSUED UNDER SECTION 718.23 OF THE REVISED CODE, 911
WHICHEVER OCCURS FIRST.
(B) INTEREST SHALL BE ALLOWED AND PAID AT THE RATE PER 913
ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED CODE UPON 914
AMOUNTS REFUNDED WITH RESPECT TO THE TAX REQUIRED TO BE PAID 915
UNDER SECTION 718.21 OF THE REVISED CODE. THE INTEREST SHALL RUN 916
FROM WHICHEVER OF THE FOLLOWING DATES IS THE LATEST UNTIL THE 919
DATE THE REFUND IS PAID: THE DATE OF THE ILLEGAL, ERRONEOUS, OR 920
EXCESSIVE PAYMENT; THE NINETIETH DAY AFTER THE FINAL DATE THE 921
ANNUAL REPORT UNDER SECTION 718.21 OF THE REVISED CODE WAS 922
REQUIRED TO BE FILED; OR THE NINETIETH DAY AFTER THE DATE THAT 923
REPORT WAS FILED.
Sec. 718.25. (A) THE FOLLOWING PENALTIES SHALL APPLY 933
UNDER THE CIRCUMSTANCES INDICATED:
(1) IF AN ELECTRIC LIGHT COMPANY REQUIRED TO FILE THE 936
REPORT OR REMIT TAX AS REQUIRED BY SECTION 718.21 OR DIVISION (C) 937
OR (D)(1) OF SECTION 718.22 OF THE REVISED CODE FAILS TO MAKE AND 939
FILE THE REPORT WITHIN THE TIME PRESCRIBED, INCLUDING ANY 940
EXTENSIONS OF TIME GRANTED BY THE TAX COMMISSIONER, A PENALTY
SHALL BE IMPOSED EQUAL TO THE GREATER OF FIFTY DOLLARS PER MONTH 941
OR FRACTION OF A MONTH, NOT TO EXCEED FIVE HUNDRED DOLLARS, OR 942
FIVE PER CENT PER MONTH OR FRACTION OF A MONTH, NOT TO EXCEED 943
FIFTY PER CENT, OF THE TAX REQUIRED TO BE SHOWN ON THE REPORT, 944
FOR EACH MONTH OR FRACTION OF A MONTH ELAPSING BETWEEN THE DUE 945
23
DATE, INCLUDING EXTENSIONS OF THE DUE DATE, AND THE DAY ON WHICH 946
THE REPORT IS FILED. 947
(2) IF AN ELECTRIC LIGHT COMPANY FAILS TO PAY ANY AMOUNT 950
OF ESTIMATED TAX REQUIRED TO BE PAID UNDER DIVISION (C) OR (D)(1) 951
OF SECTION 718.22 OF THE REVISED CODE BY THE DATES PRESCRIBED FOR 954
PAYMENT, A PENALTY SHALL BE IMPOSED EQUAL TO TWICE THE INTEREST 955
CHARGED UNDER DIVISION (A) OF SECTION 718.26 OF THE REVISED CODE 956
FOR THE DELINQUENT PAYMENT.
(3) IF AN ELECTRIC LIGHT COMPANY FILES WHAT PURPORTS TO BE 959
A REPORT REQUIRED BY SECTION 718.21 OR DIVISION (C) OR (D)(1) OF 960
SECTION 718.22 OF THE REVISED CODE THAT DOES NOT CONTAIN 961
INFORMATION UPON WHICH THE SUBSTANTIAL CORRECTNESS OF THE REPORT 963
MAY BE JUDGED OR CONTAINS INFORMATION THAT ON ITS FACE INDICATES 964
THAT THE REPORT IS SUBSTANTIALLY INCORRECT, AND THE FILING OF THE 965
REPORT IN THAT MANNER IS DUE TO A POSITION THAT IS FRIVOLOUS OR A 966
DESIRE THAT IS APPARENT FROM THE REPORT TO DELAY OR IMPEDE THE 967
ADMINISTRATION OF SECTIONS 718.21 TO 718.30 OF THE REVISED CODE, 968
A PENALTY OF FIVE HUNDRED DOLLARS SHALL BE IMPOSED. 969
(4) IF AN ELECTRIC LIGHT COMPANY MAKES A FRAUDULENT 972
ATTEMPT TO EVADE THE REPORTING OR PAYMENT OF THE TAX REQUIRED TO 974
BE SHOWN ON ANY REPORT REQUIRED UNDER SECTION 718.21 OR DIVISION 975
(C) OR (D)(1) OF SECTION 718.22 OF THE REVISED CODE, A PENALTY 976
SHALL BE IMPOSED EQUAL TO THE GREATER OF ONE THOUSAND DOLLARS OR 978
ONE HUNDRED PER CENT OF THE TAX REQUIRED TO BE SHOWN ON THE 979
REPORT.
(5) IF ANY PERSON MAKES A FALSE OR FRAUDULENT CLAIM FOR A 981
REFUND UNDER SECTION 718.28 OF THE REVISED CODE, A PENALTY SHALL 982
BE IMPOSED EQUAL TO THE GREATER OF ONE THOUSAND DOLLARS OR ONE 983
HUNDRED PER CENT OF THE CLAIM. THE PENALTY IMPOSED UNDER 984
DIVISION (A)(5) OF THIS SECTION, ANY REFUND ISSUED ON THE CLAIM, 985
AND INTEREST ON ANY REFUND FROM THE DATE OF THE REFUND, MAY BE 986
ASSESSED UNDER SECTION 718.23 OF THE REVISED CODE WITHOUT REGARD 987
TO ANY TIME LIMITATION FOR THE ASSESSMENT IMPOSED BY DIVISION (A) 989
OF THAT SECTION.
24
(B) FOR THE PURPOSES OF THIS SECTION, THE TAX REQUIRED TO 991
BE SHOWN ON THE REPORT SHALL BE REDUCED BY THE AMOUNT OF ANY PART 992
OF THE TAX PAID ON OR BEFORE THE DATE, INCLUDING EXTENSIONS OF 993
THE DATE, PRESCRIBED FOR FILING THE REPORT. 994
(C) EACH PENALTY IMPOSED UNDER THIS SECTION SHALL BE IN 996
ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS SECTION. ALL OR 997
PART OF ANY PENALTY IMPOSED UNDER THIS SECTION SHALL BE ABATED BY 998
THE COMMISSIONER IF THE TAXPAYER SHOWS THAT THE FAILURE TO COMPLY 999
WITH SECTIONS 718.21 TO 718.30 OF THE REVISED CODE IS DUE TO 1,000
REASONABLE CAUSE AND NOT WILLFUL NEGLECT. 1,001
(D) ALL AMOUNTS COLLECTED UNDER THIS SECTION SHALL BE 1,003
CONSIDERED AS TAXES COLLECTED UNDER SECTIONS 718.21 TO 718.30 OF 1,004
THE REVISED CODE AND SHALL BE CREDITED AND DISTRIBUTED TO 1,005
MUNICIPAL CORPORATIONS AS REQUIRED UNDER SECTION 718.21 OF THE 1,006
REVISED CODE.
Sec. 718.26. (A) IN CASE OF ANY UNDERPAYMENT OF THE 1,008
ESTIMATED TAX REQUIRED UNDER DIVISION (C) OR (D)(1) OF SECTION 1,010
718.22 OF THE REVISED CODE, THERE SHALL BE ADDED TO THE TAX AN 1,011
AMOUNT DETERMINED AT THE RATE PER ANNUM PRESCRIBED BY SECTION 1,012
5703.47 OF THE REVISED CODE UPON THE AMOUNT OF UNDERPAYMENT FOR 1,013
THE PERIOD OF UNDERPAYMENT. 1,015
(B) THE AMOUNT OF THE UNDERPAYMENT SHALL BE THE EXCESS OF 1,017
DIVISION (B)(1) OVER DIVISION (B)(2) OF THIS SECTION: 1,018
(1) THE AMOUNT OF THE ESTIMATED TAX PAYMENT THAT WOULD BE 1,020
REQUIRED TO BE PAID IF THE TOTAL ESTIMATED TAX WERE EQUAL TO THE 1,021
TOTAL TAX SHOWN TO BE DUE ON THE REPORT REQUIRED TO BE FILED, OR 1,022
IF NO REPORT WAS FILED, THE TAX FOR SUCH YEAR; 1,023
(2) THE AMOUNT, IF ANY, OF THE ESTIMATED TAX PAID ON OR 1,025
BEFORE THE LAST DAY PRESCRIBED FOR SUCH PAYMENT. 1,026
(C) THE PERIOD OF THE UNDERPAYMENT SHALL RUN FROM THE DATE 1,028
THE ESTIMATED TAX PAYMENT WAS REQUIRED TO BE MADE TO THE DATE ON 1,029
WHICH SUCH PAYMENT IS MADE. FOR PURPOSES OF THIS SECTION, A 1,030
PAYMENT OF ESTIMATED TAX ON ANY PAYMENT DATE SHALL BE CONSIDERED 1,031
A PAYMENT OF ANY PREVIOUS UNDERPAYMENT ONLY TO THE EXTENT SUCH 1,032
25
PAYMENT EXCEEDS THE AMOUNT OF THE PAYMENT PRESENTLY DUE. 1,033
(D) ALL AMOUNTS COLLECTED UNDER THIS SECTION SHALL BE 1,035
CONSIDERED AS TAXES COLLECTED UNDER SECTIONS 718.21 TO 718.30 OF 1,036
THE REVISED CODE AND SHALL BE CREDITED AS REQUIRED UNDER SECTION 1,037
718.21 OF THE REVISED CODE.
Sec. 718.27. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, 1,040
IF ANY REPORT, CLAIM, STATEMENT, OR OTHER DOCUMENT REQUIRED TO BE 1,041
FILED, OR ANY PAYMENT REQUIRED TO BE MADE, WITHIN A PRESCRIBED 1,042
PERIOD OR ON OR BEFORE A PRESCRIBED DATE UNDER SECTION 718.21 OR 1,043
DIVISION (C) OR (D)(1) OF SECTION 718.22 OF THE REVISED CODE IS, 1,044
AFTER SUCH PERIOD OR SUCH DATE, DELIVERED BY UNITED STATES MAIL 1,046
TO THE AGENCY, OFFICER, OR OFFICE WITH WHICH SUCH REPORT, CLAIM, 1,047
STATEMENT, OR OTHER DOCUMENT IS REQUIRED TO BE FILED, OR TO WHICH 1,048
SUCH PAYMENT IS REQUIRED TO BE MADE, THE DATE OF THE POSTMARK 1,049
STAMPED ON THE COVER IN WHICH SUCH REPORT, CLAIM, STATEMENT, OR 1,050
OTHER DOCUMENT, OR PAYMENT IS MAILED SHALL BE DEEMED THE DATE OF 1,051
DELIVERY OR THE DATE OF PAYMENT.
"THE DATE OF THE POSTMARK" MEANS, IN THE EVENT THERE IS 1,053
MORE THAN ONE DATE ON THE COVER, THE EARLIEST DATE IMPRINTED ON 1,054
THE COVER BY THE POST OFFICE. 1,055
Sec. 718.28. AN APPLICATION TO REFUND TO AN ELECTRIC 1,058
COMPANY OR COMBINED COMPANY THE AMOUNT OF TAXES OVERPAID, PAID 1,059
ILLEGALLY OR ERRONEOUSLY, OR PAID ON ANY ILLEGAL, ERRONEOUS, OR 1,060
EXCESSIVE ASSESSMENT, WITH INTEREST ON THAT AMOUNT AS PROVIDED BY 1,062
SECTION 718.24 OF THE REVISED CODE, SHALL BE FILED WITH THE TAX 1,064
COMMISSIONER WITHIN THREE YEARS AFTER THE DATE OF THE ILLEGAL, 1,065
ERRONEOUS, OR EXCESSIVE PAYMENT OF THE TAX, OR WITHIN ANY 1,066
ADDITIONAL PERIOD ALLOWED BY DIVISION (A) OF SECTION 718.23 OF 1,067
THE REVISED CODE. THE APPLICATION SHALL BE FILED IN THE FORM 1,069
PRESCRIBED BY THE TAX COMMISSIONER.
UPON THE FILING OF A REFUND APPLICATION, THE TAX 1,071
COMMISSIONER SHALL DETERMINE THE AMOUNT OF REFUND DUE AND CERTIFY 1,073
THE AMOUNT OF THE REFUND TO THE DIRECTOR OF BUDGET AND MANAGEMENT 1,074
AND TREASURER OF STATE FOR PAYMENT FROM THE MUNICIPAL INCOME TAX 1,075
26
FUND CREATED UNDER SECTION 718.21 OF THE REVISED CODE. THE 1,076
REFUND SHALL BE APPORTIONED AMONG THE MUNICIPAL CORPORATIONS IN 1,077
THE PROPORTIONS IN WHICH THE TAX WAS APPORTIONED UNDER DIVISION 1,079
(B) OF SECTION 718.21 OF THE REVISED CODE, AND THE PROPORTIONATE 1,080
SHARES DEDUCTED FROM THE RESPECTIVE AMOUNTS SUBSEQUENTLY DUE EACH 1,082
MUNICIPAL CORPORATION FROM THE MUNICIPAL INCOME TAX FUND UNDER 1,083
DIVISION (D) OF SECTION 718.21 OF THE REVISED CODE. 1,084
Sec. 718.29. ANY MUNICIPAL CORPORATION IN WHICH AN 1,087
ELECTRIC LIGHT COMPANY CONDUCTS BUSINESS MAY REQUEST A REVIEW AND 1,088
REDETERMINATION OF THE TAX COMMISSIONER'S APPORTIONMENT OF THE 1,089
COMPANY'S NET INCOME BY FILING A PETITION WITH THE TAX
COMMISSIONER NOT LATER THAN THIRTY DAYS AFTER THE TAX 1,090
COMMISSIONER ISSUES THE CERTIFICATE OF APPORTIONMENT PURSUANT TO 1,091
DIVISION (B) OF SECTION 718.21 OF THE REVISED CODE. THE PETITION 1,092
SHALL BE FILED EITHER PERSONALLY OR BY CERTIFIED MAIL. THE 1,093
PETITION SHALL INDICATE THE OBJECTIONS OF THE MUNICIPAL 1,094
CORPORATION.
UPON RECEIVING SUCH A PETITION, THE TAX COMMISSIONER SHALL 1,096
ASSIGN A TIME AND PLACE FOR A HEARING ON THE PETITION AND SHALL 1,097
NOTIFY THE PETITIONER OF THE TIME AND PLACE OF THE HEARING BY 1,098
ORDINARY MAIL. THE TAX COMMISSIONER MAY CONTINUE THE HEARING 1,099
FROM TIME TO TIME AS NECESSARY. THE TAX COMMISSIONER SHALL MAKE 1,100
ANY CORRECTION TO THE CERTIFICATE OF APPORTIONMENT THAT THE 1,101
COMMISSIONER FINDS PROPER, AND, IF THE CERTIFICATE IS CORRECTED, 1,102
THE TAX COMMISSIONER SHALL ISSUE A CORRECTED CERTIFICATE OF 1,103
APPORTIONMENT BY CERTIFIED MAIL TO THE PETITIONER, TO EACH OTHER 1,104
MUNICIPAL CORPORATION AFFECTED BY THE CORRECTION OF THE 1,105
APPORTIONMENT, AND TO THE COMPANY. THE TAX COMMISSIONER'S 1,106
DECISION ON THE MATTER IS FINAL, SUBJECT TO APPEAL AS PROVIDED IN 1,107
SECTION 5717.02 OF THE REVISED CODE.
Sec. 718.30. IF ANY OF THE FACTS, FIGURES, COMPUTATIONS, 1,109
OR ATTACHMENTS REQUIRED IN THE REPORT OF AN ELECTRIC LIGHT 1,110
COMPANY TO DETERMINE THE TAX DUE A MUNICIPAL CORPORATION MUST BE 1,111
ALTERED AS THE RESULT OF AN ADJUSTMENT TO THE COMPANY'S FEDERAL 1,112
27
INCOME TAX RETURN OR CORPORATION FRANCHISE TAX REPORT FILED 1,113
PURSUANT TO SECTION 5733.02 OF THE REVISED CODE, WHETHER THE 1,114
ADJUSTMENT IS INITIATED BY THE COMPANY, THE INTERNAL REVENUE
SERVICE, OR THE TAX COMMISSIONER, AND SUCH ALTERATION AFFECTS THE 1,115
COMPANY'S TAX LIABILITY TO A MUNICIPAL CORPORATION, THE COMPANY 1,117
SHALL FILE AN AMENDED REPORT WITH THE TAX COMMISSIONER IN SUCH
FORM AS THE COMMISSIONER REQUIRES. THE AMENDED REPORT SHALL BE 1,118
FILED NOT LATER THAN ONE YEAR AFTER THE ADJUSTMENT HAS BEEN 1,119
AGREED TO OR FINALLY DETERMINED. 1,120
(A) IN THE CASE OF AN UNDERPAYMENT, THE AMENDED REPORT 1,122
SHALL BE ACCOMPANIED BY PAYMENT OF AN ADDITIONAL TAX AND INTEREST 1,123
DUE AND IS A REPORT SUBJECT TO ASSESSMENT UNDER SECTION 718.23 OF 1,125
THE REVISED CODE FOR THE PURPOSE OF ASSESSING ANY ADDITIONAL TAX 1,126
DUE UNDER THIS DIVISION, TOGETHER WITH ANY APPLICABLE PENALTY AND 1,127
INTEREST. IT SHALL NOT REOPEN THOSE FACTS, FIGURES,
COMPUTATIONS, OR ATTACHMENTS FROM A PREVIOUSLY FILED REPORT NO 1,128
LONGER SUBJECT TO ASSESSMENT THAT ARE NOT AFFECTED, EITHER 1,129
DIRECTLY OR INDIRECTLY, BY THE ADJUSTMENT TO THE COMPANY'S 1,130
FEDERAL INCOME TAX RETURN OR CORPORATION FRANCHISE TAX REPORT. 1,131
(B) IN THE CASE OF AN OVERPAYMENT, AN APPLICATION FOR 1,133
REFUND MAY BE FILED UNDER SECTION 718.28 OF THE REVISED CODE 1,134
WITHIN THE ONE-YEAR PERIOD PRESCRIBED FOR FILING THE AMENDED 1,135
REPORT EVEN IF IT IS FILED BEYOND THE PERIOD PRESCRIBED BY THAT 1,136
SECTION, IF IT OTHERWISE CONFORMS TO THE REQUIREMENTS OF SUCH 1,138
SECTION. AN APPLICATION FILED UNDER THIS DIVISION SHALL CLAIM 1,139
REFUND OF OVERPAYMENTS RESULTING FROM ALTERATIONS TO ONLY THOSE 1,140
FACTS, FIGURES, COMPUTATIONS, OR ATTACHMENTS REQUIRED IN THE 1,141
COMPANY'S REPORT THAT ARE AFFECTED, EITHER DIRECTLY OR 1,142
INDIRECTLY, BY THE ADJUSTMENT TO THE COMPANY'S FEDERAL INCOME TAX 1,143
RETURN OR CORPORATION FRANCHISE TAX REPORT UNLESS IT IS ALSO 1,144
FILED WITHIN THE TIME PRESCRIBED BY SECTION 718.28 OF THE REVISED 1,145
CODE. IT SHALL NOT REOPEN THOSE FACTS, FIGURES, COMPUTATIONS, OR 1,147
ATTACHMENTS THAT ARE NOT AFFECTED, EITHER DIRECTLY OR INDIRECTLY, 1,148
BY THE ADJUSTMENT TO THE COMPANY'S FEDERAL INCOME TAX RETURN OR 1,149
28
CORPORATION FRANCHISE TAX REPORT.
Sec. 5703.21. (A) Except as provided in divisions (B), 1,158
AND (C), (D), (E), (F), and (G) of this section, no agent of the 1,160
department of taxation, except in the agent's report to the 1,161
department or when called on to testify in any court or 1,162
proceeding, shall divulge any information acquired by the agent 1,163
as to the transactions, property, or business of any person while 1,164
acting or claiming to act under orders of the department. 1,165
Whoever violates this provision shall thereafter be disqualified 1,166
from acting as an officer or employee or in any other capacity 1,167
under appointment or employment of the department.
(B)(1) For purposes of an audit pursuant to section 117.15 1,169
of the Revised Code, or an audit of the department pursuant to 1,170
Chapter 117. of the Revised Code, or an audit, pursuant to that 1,171
chapter, the objective of which is to express an opinion on a 1,172
financial report or statement prepared or issued pursuant to 1,173
division (A)(7) or (9) of section 126.21 of the Revised Code, the 1,176
officers and employees of the auditor of state charged with 1,177
conducting the audit shall have access to and the right to 1,178
examine any state tax returns and state tax return information in 1,179
the possession of the department to the extent that the access 1,181
and examination are necessary for purposes of the audit. Any 1,182
information acquired as the result of that access and examination 1,184
shall not be divulged for any purpose other than as required for 1,185
the audit or unless the officers and employees are required to 1,187
testify in a court or proceeding under compulsion of legal 1,188
process. Whoever violates this provision shall thereafter be 1,189
disqualified from acting as an officer or employee or in any 1,190
other capacity under appointment or employment of the auditor of 1,191
state. 1,192
(2) As provided by section 6103(d)(2) of the Internal 1,194
Revenue Code, any federal tax returns or federal tax information 1,195
that the department has acquired from the internal revenue 1,196
service, through federal and state statutory authority, may be 1,197
29
disclosed to the auditor of state solely for purposes of an audit 1,198
of the department. 1,199
(C) Division (A) of this section does not prohibit 1,201
divulging ANY OF THE FOLLOWING: 1,202
(1) DIVULGING information contained in applications, 1,204
complaints, and related documents filed with the department under 1,205
section 5715.27 of the Revised Code or in applications filed with 1,206
the department under section 5715.39 of the Revised Code.; 1,207
(D) Division (A) of this section does not prohibit the (2) 1,209
THE department of taxation FROM providing information to the 1,211
division of child support within the department of human 1,213
services, or a child support enforcement agency, pursuant to 1,214
division (G)(2) of section 5101.31 of the Revised Code.; 1,215
(E) Division (A) of this section does not prohibit the (3) 1,218
THE disclosure to the board of motor vehicle collision repair 1,220
registration of any information in the possession of the 1,221
department that is necessary for the board to verify the 1,223
existence of an applicant's valid vendor's license and current 1,224
state tax identification number under section 4775.07 of the
Revised Code.; 1,225
(F) Division (A) of this section does not prohibit the (4) 1,227
THE department from providing information to the administrator of 1,229
workers' compensation pursuant to section 4123.591 of the Revised 1,230
Code.;
(G) Division (A) of this section does not prohibit the (5) 1,232
THE department of taxation from providing to the attorney general 1,234
information the department obtains under division (J) of section 1,235
1346.01 of the Revised Code;
(6) THE DEPARTMENT OF TAXATION FROM PERMITTING PROPERLY 1,237
AUTHORIZED OFFICERS, EMPLOYEES, OR AGENTS OF A MUNICIPAL 1,238
CORPORATION FROM INSPECTING REPORTS OR INFORMATION PURSUANT TO 1,239
SECTION 718.07 OF THE REVISED CODE.
Section 2. That existing sections 718.01, 718.02, 718.07, 1,241
and 5703.21 of the Revised Code are hereby repealed. 1,243
30
Section 3. (A) Sections 718.01, 718.02, 718.07, and 1,245
718.21 to 718.30 of the Revised Code, as amended or enacted by 1,246
this act, take effect January 1, 2002. 1,247
(B) Each municipal corporation that levies a tax on income 1,250
on January 1, 2002, shall certify to the Tax Commissioner, on or 1,251
before December 31, 2001, the rate at which the tax is to be 1,252
levied for the tax year beginning January 1, 2002. 1,253
Section 4. Section 718.01 of the Revised Code is presented 1,255
in this act as a composite of the section as amended by both Am. 1,257
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 1,258
letters. Section 5703.21 of the Revised Code is presented in 1,259
this act as a composite of the section as amended by both Am. 1,261
Sub. H.B. 283 and Am. Sub. H.B. 362 of the 123rd General
Assembly, with the new language of neither of the acts shown in 1,262
capital letters. This is in recognition of the principle stated 1,263
in division (B) of section 1.52 of the Revised Code that such 1,264
amendments are to be harmonized where not substantively 1,265
irreconcilable and constitutes a legislative finding that such is 1,266
the resulting version in effect prior to the effective date of 1,267
this act.