H. B. No. 2 As Introduced

Representative Widowfield

A BILL

To amend section 5747.026 of the Revised Code to 1
grant to all members of the National Guard and 2
reserve components of the United States armed 3
forces who have been called to active duty an 4
extension of time in which to file income tax 5
returns and pay income taxes and to increase the 6
number of authorized participants in the Ohio 7
National Guard Scholarship Program for the 2005 8
summer term. 9

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 5747.026 of the Revised Code be 10
amended to read as follows: 11

       Sec. 5747.026. (A) For taxable years beginning on or after 12
January 1, 2002, a member of the national guard or a member of a 13
reserve component of the armed forces of the United States called 14
to active ~~or other~~ duty ~~under operation Iraqi freedom~~pursuant to 15
an executive order issued by the president of the United States or 16
an act of congress of the United States may apply to the tax 17
commissioner for an extension for filing of the return and payment 18
of taxes required under this chapter during the period of the 19
member's duty service and for sixty days thereafter. The 20
application shall be filed on or before the sixtieth day after the 21
member's duty terminates. An applicant shall provide such evidence 22
as the commissioner considers necessary to demonstrate eligibility 23
for the extension. 24

       (B)(1) If the commissioner determines that an applicant is 25
qualified for an extension under this section, the commissioner 26
shall enter into a contract with the applicant for the payment of 27
the tax in installments that begin on the sixty-first day after 28
the applicant's active duty ~~under operation Iraqi freedom~~ 29
terminates. Except as provided in division (B)(3) of this section, 30
the commissioner may prescribe such contract terms as the 31
commissioner considers appropriate. 32

       (2) If the commissioner determines that an applicant is 33
qualified for an extension under this section, the applicant shall 34
not be required to file any return, report, or other tax document 35
before the sixty-first day after the applicant's active duty ~~under~~ 36
~~operation Iraqi freedom~~ terminates. 37

       (3) Taxes paid pursuant to a contract entered into under 38
division (B)(1) of this section are not delinquent. The tax 39
commissioner shall not require any payments of penalties or 40
interest in connection with such taxes. 41

       (C)(1) Divisions (A) and (B) of this section do not apply to 42
any taxable year for which a taxpayer receives an extension of 43
time in which to file a federal income tax return or pay federal 44
income tax under the Internal Revenue Code. 45

        (2)(a) A taxpayer who is eligible for an extension under the 46
Internal Revenue Code shall receive an extension of time in which 47
to file any return, report, or other tax document described in 48
this chapter and an extension of time in which to make any payment 49
of taxes required under this chapter or Chapter 5748. of the 50
Revised Code. The length of any extension granted under division 51
(C)(2)(a) of this section shall be equal to the length of the 52
corresponding extension that the taxpayer receives under the 53
Internal Revenue Code. 54

        (b) Taxes paid in accordance with division (C)(2)(a) of this 55
section are not delinquent. The tax commissioner shall not require 56
any payment of penalties or interest in connection with such 57
taxes. The tax commissioner shall not include any period of 58
extension granted under division (C)(2)(a) of this section in 59
calculating the interest due on any unpaid tax. 60

        (D) The tax commissioner shall adopt rules necessary to 61
administer this section, including rules establishing the 62
following: 63

       (1) Forms and procedures by which applicants may apply for 64
extensions; 65

       (2) Criteria for eligibility; 66

       (3) A schedule for repayment of deferred taxes. 67

       Section 2. That existing section 5747.026 of the Revised Code 68
is hereby repealed. 69

       Section 3. Notwithstanding division (B)(1) of section 5919.34 70
of the Revised Code, the number of participants in the Ohio 71
national guard scholarship program for the summer term occurring 72
in the year 2005 is limited to the equivalent of one thousand 73
full-time participants. 74

Section 1. That section 5747.026 of the Revised Code be	10
amended to read as follows:	11

Sec. 5747.026. (A) For taxable years beginning on or after	12
January 1, 2002, a member of the national guard or a member of a	13
reserve component of the armed forces of the United States called	14
to active ~~or other~~ duty ~~under operation Iraqi freedom~~pursuant to	15
an executive order issued by the president of the United States or	16
an act of congress of the United States may apply to the tax	17
commissioner for an extension for filing of the return and payment	18
of taxes required under this chapter during the period of the	19
member's duty service and for sixty days thereafter. The	20
application shall be filed on or before the sixtieth day after the	21
member's duty terminates. An applicant shall provide such evidence	22
as the commissioner considers necessary to demonstrate eligibility	23
for the extension.	24

(B)(1) If the commissioner determines that an applicant is	25
qualified for an extension under this section, the commissioner	26
shall enter into a contract with the applicant for the payment of	27
the tax in installments that begin on the sixty-first day after	28
the applicant's active duty ~~under operation Iraqi freedom~~	29
terminates. Except as provided in division (B)(3) of this section,	30
the commissioner may prescribe such contract terms as the	31
commissioner considers appropriate.	32

(2) If the commissioner determines that an applicant is	33
qualified for an extension under this section, the applicant shall	34
not be required to file any return, report, or other tax document	35
before the sixty-first day after the applicant's active duty ~~under~~	36
~~operation Iraqi freedom~~ terminates.	37

(3) Taxes paid pursuant to a contract entered into under	38
division (B)(1) of this section are not delinquent. The tax	39
commissioner shall not require any payments of penalties or	40
interest in connection with such taxes.	41

(C)(1) Divisions (A) and (B) of this section do not apply to	42
any taxable year for which a taxpayer receives an extension of	43
time in which to file a federal income tax return or pay federal	44
income tax under the Internal Revenue Code.	45

(2)(a) A taxpayer who is eligible for an extension under the	46
Internal Revenue Code shall receive an extension of time in which	47
to file any return, report, or other tax document described in	48
this chapter and an extension of time in which to make any payment	49
of taxes required under this chapter or Chapter 5748. of the	50
Revised Code. The length of any extension granted under division	51
(C)(2)(a) of this section shall be equal to the length of the	52
corresponding extension that the taxpayer receives under the	53
Internal Revenue Code.	54

(b) Taxes paid in accordance with division (C)(2)(a) of this	55
section are not delinquent. The tax commissioner shall not require	56
any payment of penalties or interest in connection with such	57
taxes. The tax commissioner shall not include any period of	58
extension granted under division (C)(2)(a) of this section in	59
calculating the interest due on any unpaid tax.	60

(D) The tax commissioner shall adopt rules necessary to	61
administer this section, including rules establishing the	62
following:	63

(1) Forms and procedures by which applicants may apply for	64
extensions;	65

Section 2. That existing section 5747.026 of the Revised Code	68
is hereby repealed.	69

Section 3. Notwithstanding division (B)(1) of section 5919.34	70
of the Revised Code, the number of participants in the Ohio	71
national guard scholarship program for the summer term occurring	72
in the year 2005 is limited to the equivalent of one thousand	73
full-time participants.	74