As Passed by the House

126th General Assembly Regular Session 2005-2006

Sub. H. B. No. 390

Representatives Taylor, Brinkman, Brown, Gibbs, Gilb, Hood, Kilbane, Trakas, Hagan, Blessing, Schaffer, Latta, Aslanides, Bubp, Carano, Cassell, Collier, Core, Domenick, Evans, C., Faber, Garrison, Hartnett, Key, Raussen, Reidelbach, Reinhard, Schneider, Seitz, Uecker, Widowfield, Willamowski, Yuko 

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A BILL

To amend sections 109.082, 131.02, 2329.07, 5735.03,

1

5747.08, and 5749.02, to enact sections 2305.26,

2

5703.58, 5733.262, 5739.134, 5747.082, 5747.134,

3

and 5751.061, and to repeal section 5733.18 of the

4

Revised Code to place a time limit on the

5

collection of certain finalized but outstanding

6

tax liabilities, to restore and lengthen a prior

7

statute of limitation on certain statutory liens,

8

to restore a former requirement that the state

9

must periodically take affirmative action to keep

10

alive judgment liens in the state's favor, to

11

limit the total amount of penalties that may be

12

added to late or underpaid taxes if the amount at

13

issue is $1,000 or less, and to provide "innocent

14

spouse relief" from joint and several liability

15

for income tax under prescribed circumstances.

16

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

Section 1.  That sections 109.082, 131.02, 2329.07, 5735.03,	17
5747.08, and 5749.02 be amended and sections 2305.26, 5703.58,	18
5733.262, 5739.134, 5747.082, 5747.134, and 5751.061 of the	19
Revised Code be enacted to read as follows:	20

Sec. 109.082.  The attorney general shall appoint one or more	21
problem resolution officers from among the employees of the office	22
of the attorney general. These officers shall receive and review	23
inquiries and complaints concerning collections made pursuant to	24
Chapters 5733., 5739., 5741., and 5747., and 5751. of the Revised	25
Code regarding which the taxpayer has been unable to obtain	26
satisfactory information after several attempts to communicate	27
with the employee of the office assigned to the taxpayer's	28
collection case or the employee's immediate supervisor, or the	29
special counsel assigned to the case.	30

Sec. 131.02. (A) Whenever any amount is payable to the state,	31
the officer, employee, or agent responsible for administering the	32
law under which the amount is payable shall immediately proceed to	33
collect the amount or cause the amount to be collected and shall	34
pay the amount into the state treasury or into the appropriate	35
custodial fund in the manner set forth pursuant to section 113.08	36
of the Revised Code. Except as otherwise provided in this	37
division, if the amount is not paid within forty-five days after	38
payment is due, the officer, employee, or agent shall certify the	39
amount due to the attorney general, in the form and manner	40
prescribed by the attorney general, and notify the director of	41
budget and management thereof. In the case of an amount payable by	42
a student enrolled in a state institution of higher education, the	43
amount shall be certified within the later of forty-five days	44
after the amount is due or the tenth day after the beginning of	45
the next academic semester, quarter, or other session following	46
the session for which the payment is payable. The attorney general	47
may assess the collection cost to the amount certified in such	48
manner and amount as prescribed by the attorney general.	49

(B)(1) The attorney general shall give immediate notice by	50
mail or otherwise to the party indebted of the nature and amount	51
of the indebtedness.	52

(2) If the amount payable to this state arises from a tax	53
levied under Chapter 5733., 5739., 5741., or 5747., or 5751. of	54
the Revised Code, the notice also shall specify all of the	55
following:	56

(a) The assessment or case number;

57

(b) The tax pursuant to which the assessment is made;

58

(c) The reason for the liability, including, if applicable,	59
that a penalty or interest is due;	60

(d) An explanation of how and when interest will be added to	61
the amount assessed;	62

(e) That the attorney general and tax commissioner, acting	63
together, have the authority, but are not required, to compromise	64
the claim and accept payment over a reasonable time, if such	65
actions are in the best interest of the state.	66

(C) The attorney general shall collect the claim or secure a	67
judgment and issue an execution for its collection.	68

(D) Each claim shall bear interest, from the day on which the	69
claim became due, at the rate per annum required by section	70
5703.47 of the Revised Code.	71

(E) The attorney general and the chief officer of the agency	72
reporting a claim, acting together, may do any of the following if	73
such action is in the best interests of the state:	74

(1) Compromise the claim;

75

(2) Extend for a reasonable period the time for payment of	76
the claim by agreeing to accept monthly or other periodic	77
payments. The agreement may require security for payment of the	78
claim.	79

(3) Add fees to recover the cost of processing checks or	80
other draft instruments returned for insufficient funds and the	81
cost of providing electronic payment options.	82

(F)(1) Except as provided in division (F)(2) of this section,	83
if the attorney general finds, after investigation, that any claim	84
due and owing to the state is uncollectible, the attorney general,	85
with the consent of the chief officer of the agency reporting the	86
claim, may do the following:	87

(a) Sell, convey, or otherwise transfer the claim to one or	88
more private entities for collection;	89

(b) Cancel the claim or cause it to be cancelledcanceled.

90

(2) The attorney general shall cancel or cause to be	91
cancelledcanceled an unsatisfied claim on the date that is forty	92
years after the date the claim is certified.	93

(3) No action shall be commenced to collect any tax payable	94
to the state that is administered by the tax commissioner, whether	95
or not such tax is subject to division (B) of this section, or any	96
penalty, interest, or additional charge on such tax, after the	97
expiration of the period ending on the later of the dates	98
specified in divisions (F)(3)(a) and (b) of this section, provided	99
that such period shall be extended by the period of any stay to	100
such collection or by any other period to which the parties	101
mutually agree:	102

(a) Ten years after the assessment of the tax, penalty,	103
interest, or additional charge is issued.	104

(b) One year after the assessment of the tax, penalty,	105
interest, or additional charge becomes final. For the purposes of	106
division (F)(3)(b) of this section, the assessment becomes final	107
at the latest of the following: upon expiration of the period to	108
petition for reassessment, or if applicable, to appeal a final	109
determination of the commissioner or decision of the board of tax	110
appeals or a court, or, if applicable, upon decision of the United	111
States supreme court.	112

For the purposes of division (F)(3) of this section, an	113
action to collect a tax debt is commenced at the time when any	114
action, including any action in aid of execution on a judgment,	115
commences after a certified copy of the tax commissioner's entry	116
making an assessment final has been filed in the office of the	117
clerk of court of common pleas in the county in which the taxpayer	118
resides or has its principal place of business in this state, or	119
in the office of the clerk of court of common pleas of Franklin	120
county, as provided in section 5739.13, 5741.14, 5747.13, or	121
5751.09 of the Revised Code or in any other applicable law	122
requiring such a filing. If an assessment has not been issued and	123
there is no time limitation on the issuance of an assessment under	124
applicable law, an action to collect a tax debt commences when the	125
action is filed in the courts of this state to collect the	126
liability.	127

(4) If information contained in a claim that is sold,	128
conveyed, or transferred to a private entity pursuant to this	129
section is confidential pursuant to federal law or a section of	130
the Revised Code that implements a federal law governing	131
confidentiality, such information remains subject to that law	132
during and following the sale, conveyance, or transfer.	133

Sec. 2305.26.  (A) An action by the state or an agency or	134
political subdivision of the state to enforce a lien upon real or	135
personal property created under and by virtue of section 1901.21,	136
2505.13, 2937.25, 4123.76, 4123.78, 4141.23, 4509.60, or 5719.04	137
of the Revised Code shall be brought within twelve years from the	138
date when the lien or notice of continuation of the lien has been	139
filed in the office of the county recorder.	140

(B)(1) Except as otherwise provided in division (B)(2) of	141
this section, a notice of continuation of lien may be filed in the	142
office of the county recorder within six months prior to the	143
expiration of the twelve-year period following the original filing	144
of the lien or the filing of the notice of continuation of the	145
lien as specified in division (A) of this section. The notice must	146
identify the original notice of lien and state that the original	147
lien is still effective. Upon timely filing of a notice of	148
continuation of lien, the effectiveness of the original lien is	149
continued for twelve years after the last date on which the lien	150
was effective, whereupon it lapses, unless another notice of	151
continuation of lien is filed prior to the lapse. Succeeding	152
notices of continuation of lien may be filed in the same manner to	153
continue the effectiveness of the original lien.	154

(2) As used in division (B)(2) of this section, "interim	155
period" means the period beginning September 26, 2003, and ending	156
the day before the effective date of H.B. 390 of the 126th general	157
assembly.	158

Division (B)(2) of this section applies only to liens	159
enforceable by an action subject to the limitation of division (A)	160
of this section on September 25, 2003, as this section existed on	161
that date, and notice of continuation of which would have had to	162
have been filed under division (B) of this section, as this	163
section existed on that date, during the interim period if this	164
section had been in effect during the interim period.	165

Notice of continuation of such a lien may be filed as	166
otherwise provided in division (B)(1) of this section except the	167
notice shall be filed within six months prior to the expiration of	168
three years following the expiration of the six-year period within	169
which such notice was required to have been filed under this	170
section as this section existed on September 25, 2003.	171

(C) The recorder shall mark each notice of continuation of	172
lien with a consecutive file number and with the date of filing	173
and shall hold the notice open for public inspection. In addition,	174
the recorder shall index the notices according to the names of the	175
person against whom they are effective, and shall note in the	176
index the file numbers of the notices. Except in cases of liens	177
arising under section 5719.04 of the Revised Code, the recorder	178
shall mark the record of the original lien "continued" and note	179
thereon the date on which the notice of continuation of lien was	180
filed. The recorder may remove a lapsed lien or lapsed notice of	181
continuation of lien from the file and destroy it. For any	182
services performed under this section, the county recorder shall	183
charge and collect the fees set forth in section 317.32 of the	184
Revised Code.	185

(D) A notice of continuation of lien must be signed and filed	186
by the clerk of the court or the magistrate in cases of liens	187
arising under sections 1901.21, 2505.13, and 2937.25 of the	188
Revised Code, by the industrial commission in cases of liens	189
arising under sections 4123.76 and 4123.78 of the Revised Code, by	190
the director of job and family services in cases of liens arising	191
under section 4141.23 of the Revised Code, by the registrar of	192
motor vehicles in cases of liens arising under section 4509.60 of	193
the Revised Code, and by the county auditor in cases of liens	194
arising under section 5719.04 of the Revised Code.	195

Sec. 2329.07. (A)(1) If neither execution on a judgment	196
rendered in a court of record or certified to the clerk of the	197
court of common pleas in the county in which the judgment was	198
rendered is issued, nor a certificate of judgment for obtaining a	199
lien upon lands and tenements is issued and filed, as provided in	200
sections 2329.02 and 2329.04 of the Revised Code, within five	201
years from the date of the judgment or within five years from the	202
date of the issuance of the last execution thereon or the issuance	203
and filing of the last such certificate, whichever is later, then,	204
unless the judgment is in favor of the state, the judgment shall	205
be dormant and shall not operate as a lien upon the estate of the	206
judgment debtor.	207

(2) If the judgment is in favor of the state, the judgment	208
shall not become dormant and shall not cease to operate as a lien	209
against the estate of the judgment debtor provided that either	210
execution on the judgment is issued or a certificate of judgment	211
is issued and filed, as provided in sections 2329.02 and 2329.04	212
of the Revised Code, within ten years from the date of the	213
judgment or within twelve years from the date of the issuance of	214
the last execution thereon or the issuance and filing of the last	215
such certificate, whichever is later, except as otherwise provided	216
in division (C) of this section.	217

(B) If, in any county other than that in which a judgment was	218
rendered, the judgment has become a lien by reason of the filing,	219
in the office of the clerk of the court of common pleas of that	220
county, of a certificate of the judgment as provided in sections	221
2329.02 and 2329.04 of the Revised Code, and if no execution is	222
issued for the enforcement of the judgment within that county, or	223
no further certificate of the judgment is filed in that county,	224
within five years or, if the judgment is in favor of the state,	225
within twelve years from the date of issuance of the last	226
execution for the enforcement of the judgment within that county	227
or the date of filing of the last certificate in that county,	228
whichever is the later, then the judgment shall cease to operate	229
as a lien upon lands and tenements of the judgment debtor within	230
that county, unless the judgment is in favor of the state, in	231
which case the judgment shall not become dormant, except as	232
otherwise provided in division (C) of this section.	233

(C)(1) As used in division (C) of this section, "interim	234
period" means the period beginning September 26, 2003, and ending	235
the day before the effective date of H.B. 390 of the 126th general	236
assembly.	237

(2) Division (C) of this section applies only to judgments in	238
favor of the state that are subject to this section and to which	239
both of the following apply:	240

(a) The first issuance of execution on the judgment, or the	241
first issuance and filing of the certificate of judgment, was	242
issued or issued and filed within the ten-year period provided in	243
this section before the beginning of the interim period;	244

(b) Subsequent issuance of execution on the judgment or	245
subsequent issuance and filing of the certificate of judgment	246
would have been required during the interim period in order to	247
keep the lien from becoming dormant under this section as this	248
section existed on September 25, 2003, and as if this section as	249
it existed on that date had been in effect during the interim	250
period.	251

(3) Such a judgment shall not become dormant and shall not	252
cease to operate as a lien against the estate of the judgment	253
debtor if either execution on the judgment is issued or a	254
certificate of judgment is issued and filed, as provided in	255
sections 2329.02 and 2329.04 of the Revised Code, within three	256
years after the expiration of the ten-year period following	257
issuance of the last execution on the judgment or following the	258
issuance and filing of the last such certificate, whichever is	259
later.	260

Sec. 5703.58.  (A) The tax commissioner shall not make or	261
issue an assessment for any tax payable to the state that is	262
administered by the tax commissioner, or any penalty, interest, or	263
additional charge on such tax, after the expiration of ten years	264
from the final date, including any extension, on which such amount	265
was required to be reported and paid, provided that the ten-year	266
period shall be extended by the period of any lawful stay to such	267
assessment. As used in this section, "assessment" has the same	268
meaning as in section 5703.50 of the Revised Code.	269

(B) This section does not apply to either of the following:

270

(1) Any amount collected for the state by a vendor or seller	271
under Chapter 5739. or 5741. of the Revised Code or withheld by an	272
employer under Chapter 5747. of the Revised Code.	273

(2) Any person who fraudulently attempts to avoid such tax.

274

(C) This section does not authorize the assessment or	275
collection of a tax for which the applicable period of limitation	276
prescribed by law has expired and for which no valid assessment	277
has been made and served as prescribed by law.	278

Sec. 5733.262.  (A) The total amount of any penalty imposed	279
under this chapter in connection with the failure to timely report	280
and pay a tax in the amount of one thousand dollars or less shall	281
not exceed fifteen per cent of the tax that was required to be	282
reported and paid but that was not timely reported and paid. In	283
computing the amount of tax not timely reported and paid for the	284
purpose of this division, the amount not timely reported and paid	285
with each report shall be considered separately.	286

(B) The total amount of penalty imposed under this chapter in	287
connection with the failure to timely pay an assessment issued	288
under this chapter in the amount of one thousand dollars or less	289
shall not exceed fifteen per cent of the tax that was required to	290
be paid but that was not timely paid under the assessment. In	291
computing the amount of tax not timely paid for the purpose of	292
this division, the amount not timely paid under each assessment	293
shall be considered separately.	294

Sec. 5735.03.  Every motor fuel dealer shall file with the	295
tax commissioner a surety bond of not less than five thousand	296
dollars, but may be required by the tax commissioner to submit a	297
surety bond equal to three months' average tax liability, on a	298
form approved by and with a surety satisfactory to the	299
commissioner, upon which the motor fuel dealer shall be the	300
principal obligor and the state shall be the obligee, conditioned	301
upon the prompt filing of true reports and the payment by the	302
motor fuel dealer to the treasurer of state of all motor fuel	303
excise taxes levied by the state, provided that after notice is	304
received from the state by the surety of the delinquency of any	305
taxes, if the surety pays the taxes within thirty days after the	306
receipt of the notice no penalties or interest shall be charged	307
against the surety. If the surety does not pay the taxes within	308
thirty days, but does pay within ninety days from the date of the	309
receipt of notice from the state by the surety, no penalty shall	310
be assessed against the surety but the surety shall pay interest	311
at the rate of six per cent per annum on the unpaid taxes from the	312
date the taxes are due and payable. If the surety does not pay	313
within ninety days then the surety shall be liable for interest	314
and penalties, and the tax commissioner may cancel all bonds	315
issued by the surety.	316

The commissioner may increase or reduce the amount of the	317
bond required to be filed by any licensed motor fuel dealer. If	318
the commissioner finds that it is necessary to increase the bond	319
to assure payment of the tax, the bond may be increased to an	320
amount equal to three months/average liability or fifty thousand	321
dollars, whichever is greater.	322

If liability upon the bond thus filed by the motor fuel	323
dealer with the commissioner is discharged or reduced, whether by	324
judgment rendered, payment made, or otherwise, or if, in the	325
opinion of the commissioner any surety on the bond theretofore	326
given has become unsatisfactory or unacceptable, the commissioner	327
may require the motor fuel dealer to file a new bond with	328
satisfactory sureties in the same amount, and if a new bond is not	329
filed the commissioner shall forthwith cancel the license of the	330
motor fuel dealer. If a new bond is furnished by the motor fuel	331
dealer, the commissioner shall cancel and surrender the bond of	332
the motor fuel dealer for which the new bond is substituted.	333

A surety on a bond furnished by a motor fuel dealer shall be	334
released from all liability to the state accruing on the bond	335
after the expiration of sixty days from the date upon which the	336
surety lodges with the commissioner a written request to be	337
released. The request shall not operate to release the surety	338
from any liability already accrued, or which accrues before the	339
expiration of the sixty-day period. The commissioner shall	340
promptly on receipt of notice of the request notify the motor fuel	341
dealer who furnished the bond and, unless the motor fuel dealer on	342
or before the expiration of the sixty-day period files with the	343
commissioner a new bond with a surety satisfactory to the	344
commissioner in the amount and form provided in this section, the	345
commissioner shall forthwith cancel the license of the motor fuel	346
dealer. If the new bond is furnished by said motor fuel dealer,	347
the commissioner shall cancel and surrender the bond of the motor	348
fuel dealer for which the new bond is substituted.	349

The commissioner, in lieu of any surety bond required by this	350
section, may accept a deposit by a motor fuel dealer of cash. Any	351
cash thus accepted shall be deposited with the treasurer of state	352
to be held by the treasurer of state, in the same manner as other	353
cash required to be deposited with the treasurer of state under	354
the laws of the state, for the account of such motor fuel dealer	355
and subject to any lawful claim of the state for any excise tax	356
upon motor fuel, and penalties and interest thereon levied by the	357
laws of this state. The state shall have a lien upon cash thus	358
deposited for the amount of any motor fuel excise taxes and	359
penalty and interest due to the state from the motor fuel dealer	360
in whose behalf they were deposited. The amount of cash to be thus	361
accepted shall in all respects be determined in the same manner as	362
provided in this section for the amount of surety bonds. Any cash	363
deposited shall be subject to levy upon execution to satisfy any	364
judgment secured in any action by the state to recover any motor	365
fuel excise taxes, and penalties and interest found to be due to	366
the state from such motor fuel dealer. The cash shall be released	367
by the treasurer of state upon certificate of the commissioner	368
that the license of the motor fuel dealer in whose behalf they	369
have been deposited has been canceled or that other security has	370
been accepted in lieu thereof, and that the state asserts no claim	371
thereto.	372

Where any person is accepted by the commissioner as surety	373
upon any bond required to be filed by this section, a statement of	374
the surety under oath shall be filed with the commissioner showing	375
real estate owned by the surety, together with all liens and	376
encumbrances thereon, as shown by the records of the county	377
auditor and county recorder of the county in which the property is	378
located, which statement shall also show that the appraised value	379
of the interest and equity of the surety is at least double the	380
face value of the bond, and thereupon the commissioner shall file	381
with the recorder of the county a certificate, under the seal of	382
the commissioner, setting forth the name of the motor fuel dealer	383
in whose behalf the bond is given and the amount of the bond,	384
together with a description of the parcel of real estate owned in	385
the county by the person accepted as surety, which certificate	386
shall be recorded by such recorder, and thereupon the amount of	387
the bond shall become a lien upon said property and shall so	388
continue until satisfied or released upon certificate of the	389
commissioner, which certificate of release shall be furnished when	390
other security has been offered by the motor fuel dealer and	391
accepted by the commissioner, or when the license of the motor	392
fuel dealer, in whose behalf the property was pledged as security,	393
has been cancelled and it is found by the commissioner that the	394
licensed motor fuel dealer has paid to the state all excise taxes	395
upon motor fuel payable by the licensed motor fuel dealer under	396
the laws of this state, together with all penalties, interest and	397
fines accruing by reason of any failure on the part of the motor	398
fuel dealer to make accurate reports of receipts of taxable motor	399
fuel and to pay the taxes, penalties, interest, and fines accruing	400
in connection therewith. The commissioner may issue a certificate	401
of partial release of the lien on real estate of the surety where	402
property of an equivalent amount has been substituted, or it	403
appears that the value of the property remaining subject to the	404
lien is satisfactory in amount to the commissioner. If any person	405
accepted as surety whose real estate has been subjected to a lien	406
desires to terminate the liability to the state, the person	407
accepted as a surety may file with the commissioner a written	408
request to be released. The commissioner shall promptly notify the	409
motor fuel dealer of the surety's request, and unless the motor	410
fuel dealer on or before the expiration of sixty days after	411
receipt of such notice files with the commissioner a new bond with	412
a surety satisfactory to the commissioner in the amount and form	413
provided in this section the commissioner shall forthwith cancel	414
the license of said motor fuel dealer. Promptly upon the	415
expiration of sixty days after receipt from the surety of such	416
written request for release, or upon the filing of a new and	417
acceptable bond with satisfactory sureties by the motor fuel	418
dealer, the commissioner shall determine whether the surety is	419
subject to any claim of the state for any unpaid taxes and	420
penalties and interest upon motor fuel under the laws of this	421
state by reason of the relationship as surety, and if no liability	422
is asserted the commissioner shall furnish to said surety a	423
certificate under the seal of the commissioner stating that no	424
liability is thus asserted and describing the property owned by	425
the surety subject to the lien of the state for any taxes and	426
penalties, and said certificate upon presentation shall be	427
recorded by the recorder of the county in which said property is	428
located and shall operate from the date of recording as a release	429
of the property therein described from such lien.	430

Sec. 5739.134.  (A) The total amount of any penalty imposed	431
under this chapter in connection with the failure to timely report	432
and pay or remit a tax in the amount of one thousand dollars or	433
less shall not exceed fifteen per cent of the tax that was	434
required to be reported and paid or remitted but that was not	435
timely reported and paid or remitted. In computing the amount of	436
tax not timely reported and paid or remitted for the purpose of	437
this division, the amount not timely reported and paid or remitted	438
with each report shall be considered separately.	439

(B) The total amount of penalty imposed under this chapter in	440
connection with the failure to timely pay an assessment issued	441
under this chapter in the amount of one thousand dollars or less	442
shall not exceed fifteen per cent of the tax that was required to	443
be paid but that was not timely paid under the assessment. In	444
computing the amount of tax not timely paid for the purpose of	445
this division, the amount not timely paid under each assessment	446
shall be considered separately.	447

Sec. 5747.08.  An annual return with respect to the tax	448
imposed by section 5747.02 of the Revised Code and each tax	449
imposed under Chapter 5748. of the Revised Code shall be made by	450
every taxpayer for any taxable year for which the taxpayer is	451
liable for the tax imposed by that section or under that chapter,	452
unless the total credits allowed under divisions (E), (F), and (G)	453
of section 5747.05 of the Revised Code for the year are equal to	454
or exceed the tax imposed by section 5747.02 of the Revised Code,	455
in which case no return shall be required unless the taxpayer is	456
liable for a tax imposed pursuant to Chapter 5748. of the Revised	457
Code.	458

(A) If an individual is deceased, any return or notice	459
required of that individual under this chapter shall be made and	460
filed by that decedent's executor, administrator, or other person	461
charged with the property of that decedent.	462

(B) If an individual is unable to make a return or notice	463
required by this chapter, the return or notice required of that	464
individual shall be made and filed by the individual's duly	465
authorized agent, guardian, conservator, fiduciary, or other	466
person charged with the care of the person or property of that	467
individual.	468

(C) Returns or notices required of an estate or a trust shall	469
be made and filed by the fiduciary of the estate or trust.	470

(D)(1)(a) Except as otherwise provided in division (D)(1)(b)	471
of this section, any pass-through entity may file a single return	472
on behalf of one or more of the entity's investors other than an	473
investor that is a person subject to the tax imposed under section	474
5733.06 of the Revised Code. The single return shall set forth the	475
name, address, and social security number or other identifying	476
number of each of those pass-through entity investors and shall	477
indicate the distributive share of each of those pass-through	478
entity investor's income taxable in this state in accordance with	479
sections 5747.20 to 5747.231 of the Revised Code. Such	480
pass-through entity investors for whom the pass-through entity	481
elects to file a single return are not entitled to the exemption	482
or credit provided for by sections 5747.02 and 5747.022 of the	483
Revised Code; shall calculate the tax before business credits at	484
the highest rate of tax set forth in section 5747.02 of the	485
Revised Code for the taxable year for which the return is filed;	486
and are entitled to only their distributive share of the business	487
credits as defined in division (D)(2) of this section. A single	488
check drawn by the pass-through entity shall accompany the return	489
in full payment of the tax due, as shown on the single return, for	490
such investors, other than investors who are persons subject to	491
the tax imposed under section 5733.06 of the Revised Code.	492

(b)(i) A pass-through entity shall not include in such a	493
single return any investor that is a trust to the extent that any	494
direct or indirect current, future, or contingent beneficiary of	495
the trust is a person subject to the tax imposed under section	496
5733.06 of the Revised Code.	497

(ii) A pass-through entity shall not include in such a single	498
return any investor that is itself a pass-through entity to the	499
extent that any direct or indirect investor in the second	500
pass-through entity is a person subject to the tax imposed under	501
section 5733.06 of the Revised Code.	502

(c) Nothing in division (D) of this section precludes the tax	503
commissioner from requiring such investors to file the return and	504
make the payment of taxes and related interest, penalty, and	505
interest penalty required by this section or section 5747.02,	506
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)	507
of this section shall be construed to provide to such an investor	508
or pass-through entity any additional deduction or credit, other	509
than the credit provided by division (J) of this section, solely	510
on account of the entity's filing a return in accordance with this	511
section. Such a pass-through entity also shall make the filing and	512
payment of estimated taxes on behalf of the pass-through entity	513
investors other than an investor that is a person subject to the	514
tax imposed under section 5733.06 of the Revised Code.	515

(2) For the purposes of this section, "business credits"	516
means the credits listed in section 5747.98 of the Revised Code	517
excluding the following credits:	518

(a) The retirement credit under division (B) of section	519
5747.055 of the Revised Code;	520

(b) The senior citizen credit under division (C) of section	521
5747.05 of the Revised Code;	522

(c) The lump sum distribution credit under division (D) of	523
section 5747.05 of the Revised Code;	524

(d) The dependent care credit under section 5747.054 of the	525
Revised Code;	526

(e) The lump sum retirement income credit under division (C)	527
of section 5747.055 of the Revised Code;	528

(f) The lump sum retirement income credit under division (D)	529
of section 5747.055 of the Revised Code;	530

(g) The lump sum retirement income credit under division (E)	531
of section 5747.055 of the Revised Code;	532

(h) The credit for displaced workers who pay for job training	533
under section 5747.27 of the Revised Code;	534

(i) The twenty-dollar personal exemption credit under section	535
5747.022 of the Revised Code;	536

(j) The joint filing credit under division (G) of section	537
5747.05 of the Revised Code;	538

(k) The nonresident credit under division (A) of section	539
5747.05 of the Revised Code;	540

(l) The credit for a resident's out-of-state income under	541
division (B) of section 5747.05 of the Revised Code;	542

(m) The low-income credit under section 5747.056 of the	543
Revised Code.	544

(3) The election provided for under division (D) of this	545
section applies only to the taxable year for which the election is	546
made by the pass-through entity. Unless the tax commissioner	547
provides otherwise, this election, once made, is binding and	548
irrevocable for the taxable year for which the election is made.	549
Nothing in this division shall be construed to provide for any	550
deduction or credit that would not be allowable if a nonresident	551
pass-through entity investor were to file an annual return.	552

(4) If a pass-through entity makes the election provided for	553
under division (D) of this section, the pass-through entity shall	554
be liable for any additional taxes, interest, interest penalty, or	555
penalties imposed by this chapter if the tax commissioner finds	556
that the single return does not reflect the correct tax due by the	557
pass-through entity investors covered by that return. Nothing in	558
this division shall be construed to limit or alter the liability,	559
if any, imposed on pass-through entity investors for unpaid or	560
underpaid taxes, interest, interest penalty, or penalties as a	561
result of the pass-through entity's making the election provided	562
for under division (D) of this section. For the purposes of	563
division (D) of this section, "correct tax due" means the tax that	564
would have been paid by the pass-through entity had the single	565
return been filed in a manner reflecting the tax commissioner's	566
findings. Nothing in division (D) of this section shall be	567
construed to make or hold a pass-through entity liable for tax	568
attributable to a pass-through entity investor's income from a	569
source other than the pass-through entity electing to file the	570
single return.	571

(E) If a husband and wife file a joint federal income tax	572
return for a taxable year, they shall file a joint return under	573
this section for that taxable year, and their liabilities are	574
joint and several, but, ifexcept as otherwise provided in section	575
5747.082 of the Revised Code. If the federal income tax liability	576
of either spouse is determined on a separate federal income tax	577
return, they shall file separate returns under this section.	578

If either spouse is not required to file a federal income tax	579
return and either or both are required to file a return pursuant	580
to this chapter, they may elect to file separate or joint returns,	581
and, pursuant to that election, their liabilities are separate, or	582
are joint and several except as provided in section 5747.082 of	583
the Revised Code. If a husband and wife file separate returns	584
pursuant to this chapter, each must claim the taxpayer's own	585
exemption, but not both, as authorized under section 5747.02 of	586
the Revised Code on the taxpayer's own return.	587

(F) Each return or notice required to be filed under this	588
section shall contain the signature of the taxpayer or the	589
taxpayer's duly authorized agent and of the person who prepared	590
the return for the taxpayer, and shall include the taxpayer's	591
social security number. Each return shall be verified by a	592
declaration under the penalties of perjury. The tax commissioner	593
shall prescribe the form that the signature and declaration shall	594
take.	595

(G) Each return or notice required to be filed under this	596
section shall be made and filed as required by section 5747.04 of	597
the Revised Code, on or before the fifteenth day of April of each	598
year, on forms that the tax commissioner shall prescribe, together	599
with remittance made payable to the treasurer of state in the	600
combined amount of the state and all school district income taxes	601
shown to be due on the form, unless the combined amount shown to	602
be due is one dollar or less, in which case that amount need not	603
be remitted.	604

Upon good cause shown, the tax commissioner may extend the	605
period for filing any notice or return required to be filed under	606
this section and may adopt rules relating to extensions. If the	607
extension results in an extension of time for the payment of any	608
state or school district income tax liability with respect to	609
which the return is filed, the taxpayer shall pay at the time the	610
tax liability is paid an amount of interest computed at the rate	611
per annum prescribed by section 5703.47 of the Revised Code on	612
that liability from the time that payment is due without extension	613
to the time of actual payment. Except as provided in section	614
5747.132 of the Revised Code, in addition to all other interest	615
charges and penalties, all taxes imposed under this chapter or	616
Chapter 5748. of the Revised Code and remaining unpaid after they	617
become due, except combined amounts due of one dollar or less,	618
bear interest at the rate per annum prescribed by section 5703.47	619
of the Revised Code until paid or until the day an assessment is	620
issued under section 5747.13 of the Revised Code, whichever occurs	621
first.	622

If the tax commissioner considers it necessary in order to	623
ensure the payment of the tax imposed by section 5747.02 of the	624
Revised Code or any tax imposed under Chapter 5748. of the Revised	625
Code, the tax commissioner may require returns and payments to be	626
made otherwise than as provided in this section.	627

To the extent that any provision in this division conflicts	628
with any provision in section 5747.026 of the Revised Code, the	629
provision in that section prevails.	630

(H) If any report, claim, statement, or other document	631
required to be filed, or any payment required to be made, within a	632
prescribed period or on or before a prescribed date under this	633
chapter is delivered after that period or that date by United	634
States mail to the agency, officer, or office with which the	635
report, claim, statement, or other document is required to be	636
filed, or to which the payment is required to be made, the date of	637
the postmark stamped on the cover in which the report, claim,	638
statement, or other document, or payment is mailed shall be deemed	639
to be the date of delivery or the date of payment.	640

If a payment is required to be made by electronic funds	641
transfer pursuant to section 5747.072 of the Revised Code, the	642
payment is considered to be made when the payment is received by	643
the treasurer of state or credited to an account designated by the	644
treasurer of state for the receipt of tax payments.	645

"The date of the postmark" means, in the event there is more	646
than one date on the cover, the earliest date imprinted on the	647
cover by the United States postal service.	648

(I) The amounts withheld by the employer pursuant to section	649
5747.06 of the Revised Code shall be allowed to the recipient of	650
the compensation as credits against payment of the appropriate	651
taxes imposed on the recipient by section 5747.02 and under	652
Chapter 5748. of the Revised Code.	653

(J) If, in accordance with division (D) of this section, a	654
pass-through entity elects to file a single return and if any	655
investor is required to file the return and make the payment of	656
taxes required by this chapter on account of the investor's other	657
income that is not included in a single return filed by a	658
pass-through entity, the investor is entitled to a refundable	659
credit equal to the investor's proportionate share of the tax paid	660
by the pass-through entity on behalf of the investor. The investor	661
shall claim the credit for the investor's taxable year in which or	662
with which ends the taxable year of the pass-through entity.	663
Nothing in this chapter shall be construed to allow any credit	664
provided in this chapter to be claimed more than once. For the	665
purposes of computing any interest, penalty, or interest penalty,	666
the investor shall be deemed to have paid the refundable credit	667
provided by this division on the day that the pass-through entity	668
paid the estimated tax or the tax giving rise to the credit.	669

Sec. 5747.082.  (A) As used in this section:

670

(1) "Income item" means an item of income, gain, loss,	671
credit, deduction, or other erroneous item with respect to which	672
relief from liability may be granted under section 6015 of the	673
Internal Revenue Code.	674

(2) "Spouse" means an individual's spouse included on a joint	675
return filed under section 5747.08 of the Revised Code for a	676
taxable year even if the individual and the spouse are not married	677
when division (B) or (C) of this section applies.	678

(B) Any individual who has been granted relief from federal	679
income tax liability under section 6015 of the Internal Revenue	680
Code with respect to any income item for a taxable year shall be	681
granted the same relief from liability for the tax imposed under	682
section 5747.02 of the Revised Code for the same taxable year to	683
the extent the income item for which relief was granted under	684
section 6015 of the Internal Revenue Code is included in or	685
otherwise affects the computation of the individual's liability	686
for the tax imposed under section 5747.02 of the Revised Code,	687
including any penalty or interest imposed under this chapter.	688

(C) This division does not apply to an understatement of tax	689
due under section 5747.02 of the Revised Code if the	690
understatement is attributable to an item of income to which	691
division (B) of this section applies.	692

An individual who filed a joint return with the individual's	693
spouse under section 5747.08 of the Revised Code which contains an	694
understatement of tax shall be relieved of liability for the tax	695
imposed under section 5747.02 of the Revised Code to the extent of	696
the individual's allocable share of the liability with respect to	697
the understatement of tax, and any penalties and interest arising	698
from such understatement, if the tax commissioner finds all of the	699
following:	700

(1) That, in signing the joint return, the individual did not	701
know and had no reason to know there was an understatement of tax	702
on the return;	703

(2) That, under all the facts and circumstances, it would be	704
inequitable to hold the individual liable for the understatement	705
of tax;	706

(3) That assets were not transferred between the individuals	707
who filed the joint return as part of a fraudulent scheme to avoid	708
reporting or payment of the tax imposed under section 5747.02 of	709
the Revised Code.	710

For the purposes of division (C) of this section, an	711
individual's allocable share of liability shall be the liability	712
on the joint return multiplied by a fraction. The numerator of the	713
fraction shall equal the tax that would be due from the individual	714
if the individual had filed a separate return for the taxable	715
year, before deducting credits allocable to that individual and	716
before crediting tax payments withheld or paid as estimated taxes	717
by or on behalf of that individual. The denominator of the	718
fraction shall equal the sum of the taxes that would be due from	719
the individual and from the individual's spouse if each had filed	720
a separate return for the taxable year, before deducting credits	721
allocable to either individual and before crediting tax payments	722
withheld or paid as estimated taxes by or on behalf of either	723
individual. If one or more exemptions were claimed on the joint	724
return for a dependent, other than for one of the spouses, under	725
section 5747.025 of the Revised Code, and the claim for exemption	726
is not an item contributing to the understatement, the tax that	727
would be due from each individual shall be computed on the basis	728
of one-half of the total exemption amount being allocated to each	729
individual. If the Ohio adjusted gross income on the joint return	730
was affected by the addition or deduction of an amount with	731
respect only to a dependent, other than one of the spouses, and	732
the addition or deduction is not an item contributing to the	733
understatement of tax, the tax that would be due from each	734
individual shall be computed on the basis of one-half of the	735
amount added or deducted being allocated to each individual.	736

(D) To obtain relief from liability under division (B) or (C)	737
of this section, an individual shall apply to the tax commissioner	738
if the liability has not been certified to the attorney general	739
under section 131.02 of the Revised Code, or shall apply to the	740
attorney general if the liability has been certified to the	741
attorney general. Application shall be made in the manner	742
prescribed by the tax commissioner or attorney general, as	743
applicable, and may be filed not later than two years after the	744
date the attorney general commences collection activities against	745
the individual. For the purposes of this section, collection	746
activities commence when any action, including any action in aid	747
of execution on a judgment, is begun after a certified copy of the	748
tax commissioner's entry making the assessment final has been	749
filed in the office of the clerk of the court of common pleas in	750
the county in which the taxpayer resides or in the office of the	751
clerk of the court of common pleas of Franklin county, as provided	752
in section 5747.13 of the Revised Code.	753

If application is required to be made to the tax	754
commissioner, the tax commissioner shall consider the application.	755
If application is required to be made to the attorney general and	756
is properly and timely made, the attorney general shall transmit	757
the application to the tax commissioner for the tax commissioner's	758
consideration. If application is timely and otherwise properly	759
made but is made to the tax commissioner after the liability has	760
been certified to the attorney general, the tax commissioner shall	761
consider the application but shall notify the attorney general	762
that application for relief has been made and is being considered	763
in connection with the certified liability.	764

The tax commissioner shall make a finding on the relief	765
sought in any properly and timely filed application and shall	766
serve notice of the commissioner's findings on the applicant in	767
the manner prescribed in section 5703.37 of the Revised Code. If	768
the application was filed with the attorney general, the tax	769
commissioner also shall notify the attorney general of the	770
commissioner's findings. The notice to the applicant shall include	771
a statement informing the individual that the individual may	772
appeal the tax commissioner's determination to the board of tax	773
appeals by filing a notice of appeal under section 5717.02 of the	774
Revised Code, and shall include instructions for filing the notice	775
of appeal. The tax commissioner's determination under this	776
division is a final determination of the tax commissioner	777
appealable under section 5717.02 of the Revised Code.	778

Division (D) of this section does not prohibit the tax	779
commissioner or attorney general from applying the relief provided	780
under division (B) or (C) of this section to an individual who	781
qualifies for such relief but who fails to apply for such relief	782
as prescribed in this division.	783

Sec. 5747.134.  (A) The total amount of any penalty imposed	784
under this chapter in connection with the failure to timely report	785
and pay or remit a tax in the amount of one thousand dollars or	786
less shall not exceed fifteen per cent of the tax that was	787
required to be reported and paid or remitted but that was not	788
timely reported and paid or remitted. In computing the amount of	789
tax not timely reported and paid or remitted for the purpose of	790
this division, the amount not timely reported and paid or remitted	791
with each report shall be considered separately. For the purposes	792
of this division, "report" includes a declaration of estimated	793
taxes.	794

(B) The total amount of penalty imposed under this chapter in	795
connection with the failure to timely pay an assessment issued	796
under this chapter in the amount of one thousand dollars or less	797
shall not exceed fifteen per cent of the tax that was required to	798
be paid but that was not timely paid under the assessment. In	799
computing the amount of tax not timely paid for the purpose of	800
this division, the amount not timely paid under each assessment	801
shall be considered separately.	802

Sec. 5749.02.  (A) For the purpose of providing revenue to	803
administer the state's coal mining and reclamation regulatory	804
program, to meet the environmental and resource management needs	805
of this state, and to reclaim land affected by mining, an excise	806
tax is hereby levied on the privilege of engaging in the severance	807
of natural resources from the soil or water of this state. The tax	808
shall be imposed upon the severer and shall be:	809

(1) Seven cents per ton of coal;

810

(2) Four cents per ton of salt;

811

(3) Two cents per ton of limestone or dolomite;

812

(4) Two cents per ton of sand and gravel;

813

(5) Ten cents per barrel of oil;

814

(6) Two and one-half cents per thousand cubic feet of natural	815
gas;	816

(7) One cent per ton of clay, sandstone or conglomerate,	817
shale, gypsum, or quartzite.	818

(B) Of the moneys received by the treasurer of state from the	819
tax levied in division (A)(1) of this section, six and	820
three-tenths per cent shall be credited to the geological mapping	821
fund created in section 1505.09 of the Revised Code, fourteen and	822
two-tenths per cent shall be credited to the reclamation	823
forfeiture fund created in section 1513.18 of the Revised Code,	824
fifty-seven and nine-tenths per cent shall be credited to the coal	825
mining administration and reclamation reserve fund created in	826
section 1513.181 of the Revised Code, and the remainder shall be	827
credited to the unreclaimed lands fund created in section 1513.30	828
of the Revised Code. When, at any time during a fiscal year, the	829
chief of the division of mineral resources management finds that	830
the balance of the coal mining administration and reclamation	831
reserve fund is below two million dollars, the chief shall certify	832
that fact to the director of budget and management. Upon receipt	833
of the chief's certification, the director shall direct the tax	834
commissioner to instead credit to the coal mining administration	835
and reclamation reserve fund during the remainder of the fiscal	836
year for which the certification is made the fourteen and	837
two-tenths per cent of the moneys collected from the tax levied in	838
division (A)(1) of this section and otherwise required by this	839
division to be credited to the reclamation forfeiture fund.	840

Fifteen per cent of the moneys received by the treasurer of	841
state from the tax levied in division (A)(2) of this section shall	842
be credited to the geological mapping fund and the remainder shall	843
be credited to the unreclaimed lands fund.	844

Of the moneys received by the treasurer of state from the tax	845
levied in divisions (A)(3) and (4) of this section, seven and	846
five-tenths per cent shall be credited to the geological mapping	847
fund, forty-two and five-tenths per cent shall be credited to the	848
unreclaimed lands fund, and the remainder shall be credited to the	849
surface mining fund created in section 1514.06 of the Revised	850
Code.	851

Of the moneys received by the treasurer of state from the tax	852
levied in divisions (A)(5) and (6) of this section, ninety per	853
cent shall be credited to the oil and gas well fund created in	854
section 1509.02 of the Revised Code and ten per cent shall be	855
credited to the geological mapping fund. All of the moneys	856
received by the treasurer of state from the tax levied in division	857
(A)(7) of this section shall be credited to the surface mining	858
fund.	859

(C) For the purpose of paying the state's expenses for	860
reclaiming mined lands that the operator failed to reclaim under a	861
coal mining and reclamation permit issued under Chapter 1513. of	862
the Revised Code, or under a surface mining permit issued under	863
Chapter 1514. of the Revised Code, for which the operator's bond	864
is not sufficient to pay the state's expense for reclamation,	865
there is hereby levied an excise tax on the privilege of engaging	866
in the severance of coal from the soil or water of this state in	867
addition to the taxes levied by divisions (A)(1) and (D) of this	868
section. The tax shall be imposed at the rate of one cent per ton	869
of coal. Moneys received by the treasurer of state from the tax	870
levied under this division shall be credited to the reclamation	871
forfeiture fund created in section 1513.18 of the Revised Code.	872

(D) For the purpose of paying the state's expenses for	873
reclaiming coal mined lands that the operator failed to reclaim in	874
accordance with Chapter 1513. of the Revised Code under a coal	875
mining and reclamation permit issued after April 10, 1972, but	876
before September 1, 1981, for which the operator's bond is not	877
sufficient to pay the state's expense for reclamation and paying	878
the expenses for administering the state's coal mining and	879
reclamation regulatory program, there is hereby levied an excise	880
tax on the privilege of engaging in the severance of coal from the	881
soil or water of this state in addition to the taxes levied by	882
divisions (A)(1) and (C) of this section. The tax shall be imposed	883
at the rate of one cent per ton of coal as prescribed in this	884
division. Moneys received by the treasurer of state from the tax	885
levied by this division shall be credited to the reclamation	886
forfeiture fund created in section 1513.18 of the Revised Code.	887

When, at the close of any fiscal year, the chief finds that	888
the balance of the reclamation forfeiture fund, plus estimated	889
transfers to it from the coal mining and reclamation reserve fund	890
under section 1513.181 of the Revised Code, plus the estimated	891
revenues from the tax levied by this division for the remainder of	892
the calendar year that includes the close of the fiscal year, are	893
sufficient to complete the reclamation of such lands, the purposes	894
for which the tax under this division is levied shall be deemed	895
accomplished at the end of that calendar year. The chief, within	896
thirty days after the close of the fiscal year, shall certify	897
those findings to the tax commissioner, and the tax shall cease to	898
be imposed after the last day of that calendar year.	899

(E) On the day fixed for the payment of the severance taxes	900
required to be paid by this section, the taxes with any penalties	901
or interest on them shall become a lien on all property of the	902
taxpayer in this state whether the property is employed by the	903
taxpayer in the prosecution of its business or is in the hands of	904
an assignee, trustee, or receiver for the benefit of creditors or	905
stockholders. The lien shall continue until the taxes and any	906
penalties or interest thereon are paid.	907

Upon failure of the taxpayer to pay a tax on the day fixed	908
for payment, the tax commissioner may file, for which no filing	909
fee shall be charged, in the office of the county recorder in each	910
county in this state in which the taxpayer owns or has a	911
beneficial interest in real estate, notice of the lien containing	912
a brief description of the real estate. The lien shall not be	913
valid as against any mortgagee, purchaser, or judgment creditor	914
whose rights have attached prior to the time the notice is filed	915
in the county in which the real estate that is the subject of the	916
mortgage, purchase, or judgment lien is located. The notice shall	917
be recorded in a book kept by the recorder called the "severance	918
tax lien record" and indexed under the name of the taxpayer	919
charged with the tax. When the tax has been paid, the tax	920
commissioner shall furnish to the taxpayer an acknowledgement of	921
payment, which the taxpayer may record with the recorder of each	922
county in which notice of the lien has been filed.	923

Sec. 5751.061.  (A) The total amount of any penalty imposed	924
under this chapter in connection with the failure to timely report	925
and pay tax in the amount of one thousand dollars or less shall	926
not exceed fifteen per cent of the tax that was required to be	927
reported and paid but that was not timely reported and paid. In	928
computing the amount of tax not timely reported and paid for the	929
purpose of this division, the amount not timely reported and paid	930
with each report shall be considered separately.	931

(B) The total amount of penalty imposed under this chapter in	932
connection with the failure to timely pay an assessment issued	933
under this chapter in the amount of one thousand dollars or less	934
shall not exceed fifteen per cent of the tax that was required to	935
be paid but that was not timely paid under the assessment. In	936
computing the amount of tax not timely paid for the purpose of	937
this division, the amount not timely paid under each assessment	938
shall be considered separately.	939

Section 2. That existing sections 109.082, 131.02, 2329.07,	940
5735.03, 5747.08, and 5749.02 and section 5733.18 of the Revised	941
Code are hereby repealed.	942

Section 3. The amendment or enactment by this act of sections	943
109.082, 131.02, 5703.06, and 5703.58 of the Revised Code apply to	944
assessments made, or if no assessment was made, to liabilities	945
arising, before, on, or after the effective date of this act.	946
However, the limitations to collection in section 131.02 of the	947
Revised Code, as amended by this act, and to assessment in section	948
5703.58 of the Revised Code, as enacted by this act, expire not	949
earlier than one year after the effective date of this act,	950
notwithstanding any provisions in such sections to the contrary.	951

Section 4. Division (B) of section 5747.082 of the Revised	952
Code, as enacted by this act, applies to individuals for whom	953
relief was granted under section 6015 of the Internal Revenue Code	954
within four years before the effective date of this act or	955
thereafter.	956