As Introduced

128th General Assembly
Regular Session
2009-2010
H. B. No. 255


Representative Balderson 

Cosponsors: Representatives Gardner, Huffman, Wagner, Evans, Derickson, Zehringer, McGregor, Mecklenborg, Wachtmann, Ruhl, Stautberg, Snitchler, Domenick 



A BILL
To amend sections 5747.08 and 5747.98 and to enact 1
section 5747.67 of the Revised Code to allow a 2
$400 income tax credit for volunteer firefighters.3


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

       Section 1. That sections 5747.08 and 5747.98 be amended and 4
section 5747.67 of the Revised Code be enacted to read as follows:5

       Sec. 5747.08.  An annual return with respect to the tax6
imposed by section 5747.02 of the Revised Code and each tax7
imposed under Chapter 5748. of the Revised Code shall be made by8
every taxpayer for any taxable year for which the taxpayer is9
liable for the tax imposed by that section or under that chapter,10
unless the total credits allowed under divisions (E), (F), and (G)11
of section 5747.05 of the Revised Code for the year are equal to12
or exceed the tax imposed by section 5747.02 of the Revised Code,13
in which case no return shall be required unless the taxpayer is14
liable for a tax imposed pursuant to Chapter 5748. of the Revised15
Code.16

       (A) If an individual is deceased, any return or notice17
required of that individual under this chapter shall be made and18
filed by that decedent's executor, administrator, or other person19
charged with the property of that decedent.20

       (B) If an individual is unable to make a return or notice21
required by this chapter, the return or notice required of that22
individual shall be made and filed by the individual's duly23
authorized agent, guardian, conservator, fiduciary, or other24
person charged with the care of the person or property of that25
individual.26

       (C) Returns or notices required of an estate or a trust shall 27
be made and filed by the fiduciary of the estate or trust.28

       (D)(1)(a) Except as otherwise provided in division (D)(1)(b)29
of this section, any pass-through entity may file a single return30
on behalf of one or more of the entity's investors other than an31
investor that is a person subject to the tax imposed under section32
5733.06 of the Revised Code. The single return shall set forth the 33
name, address, and social security number or other identifying34
number of each of those pass-through entity investors and shall35
indicate the distributive share of each of those pass-through36
entity investor's income taxable in this state in accordance with37
sections 5747.20 to 5747.231 of the Revised Code. Such38
pass-through entity investors for whom the pass-through entity39
elects to file a single return are not entitled to the exemption40
or credit provided for by sections 5747.02 and 5747.022 of the41
Revised Code; shall calculate the tax before business credits at42
the highest rate of tax set forth in section 5747.02 of the43
Revised Code for the taxable year for which the return is filed;44
and are entitled to only their distributive share of the business45
credits as defined in division (D)(2) of this section. A single46
check drawn by the pass-through entity shall accompany the return47
in full payment of the tax due, as shown on the single return, for48
such investors, other than investors who are persons subject to49
the tax imposed under section 5733.06 of the Revised Code.50

       (b)(i) A pass-through entity shall not include in such a51
single return any investor that is a trust to the extent that any52
direct or indirect current, future, or contingent beneficiary of53
the trust is a person subject to the tax imposed under section54
5733.06 of the Revised Code.55

       (ii) A pass-through entity shall not include in such a single 56
return any investor that is itself a pass-through entity to the 57
extent that any direct or indirect investor in the second58
pass-through entity is a person subject to the tax imposed under59
section 5733.06 of the Revised Code.60

       (c) Nothing in division (D) of this section precludes the tax 61
commissioner from requiring such investors to file the return and 62
make the payment of taxes and related interest, penalty, and63
interest penalty required by this section or section 5747.02,64
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)65
of this section shall be construed to provide to such an investor66
or pass-through entity any additional deduction or credit, other67
than the credit provided by division (J) of this section, solely68
on account of the entity's filing a return in accordance with this69
section. Such a pass-through entity also shall make the filing and 70
payment of estimated taxes on behalf of the pass-through entity71
investors other than an investor that is a person subject to the 72
tax imposed under section 5733.06 of the Revised Code.73

       (2) For the purposes of this section, "business credits"74
means the credits listed in section 5747.98 of the Revised Code75
excluding the following credits:76

       (a) The retirement credit under division (B) of section77
5747.055 of the Revised Code;78

       (b) The senior citizen credit under division (C) of section79
5747.05 of the Revised Code;80

       (c) The lump sum distribution credit under division (D) of81
section 5747.05 of the Revised Code;82

       (d) The dependent care credit under section 5747.054 of the83
Revised Code;84

       (e) The lump sum retirement income credit under division (C)85
of section 5747.055 of the Revised Code;86

       (f) The lump sum retirement income credit under division (D)87
of section 5747.055 of the Revised Code;88

       (g) The lump sum retirement income credit under division (E)89
of section 5747.055 of the Revised Code;90

       (h) The credit for displaced workers who pay for job training 91
under section 5747.27 of the Revised Code;92

       (i) The twenty-dollar personal exemption credit under section 93
5747.022 of the Revised Code;94

       (j) The joint filing credit under division (G) of section95
5747.05 of the Revised Code;96

       (k) The nonresident credit under division (A) of section97
5747.05 of the Revised Code;98

       (l) The credit for a resident's out-of-state income under99
division (B) of section 5747.05 of the Revised Code;100

       (m) The low-income credit under section 5747.056 of the 101
Revised Code;102

       (n) The volunteer firefighter credit under section 5747.67 of 103
the Revised Code.104

       (3) The election provided for under division (D) of this105
section applies only to the taxable year for which the election is106
made by the pass-through entity. Unless the tax commissioner107
provides otherwise, this election, once made, is binding and108
irrevocable for the taxable year for which the election is made.109
Nothing in this division shall be construed to provide for any110
deduction or credit that would not be allowable if a nonresident111
pass-through entity investor were to file an annual return.112

       (4) If a pass-through entity makes the election provided for113
under division (D) of this section, the pass-through entity shall114
be liable for any additional taxes, interest, interest penalty, or115
penalties imposed by this chapter if the tax commissioner finds 116
that the single return does not reflect the correct tax due by the117
pass-through entity investors covered by that return. Nothing in118
this division shall be construed to limit or alter the liability,119
if any, imposed on pass-through entity investors for unpaid or120
underpaid taxes, interest, interest penalty, or penalties as a121
result of the pass-through entity's making the election provided122
for under division (D) of this section. For the purposes of123
division (D) of this section, "correct tax due" means the tax that124
would have been paid by the pass-through entity had the single125
return been filed in a manner reflecting the tax commissioner's126
findings. Nothing in division (D) of this section shall be127
construed to make or hold a pass-through entity liable for tax128
attributable to a pass-through entity investor's income from a129
source other than the pass-through entity electing to file the130
single return.131

       (E) If a husband and wife file a joint federal income tax132
return for a taxable year, they shall file a joint return under133
this section for that taxable year, and their liabilities are134
joint and several, but, if the federal income tax liability of135
either spouse is determined on a separate federal income tax136
return, they shall file separate returns under this section.137

       If either spouse is not required to file a federal income tax138
return and either or both are required to file a return pursuant139
to this chapter, they may elect to file separate or joint returns,140
and, pursuant to that election, their liabilities are separate or141
joint and several. If a husband and wife file separate returns142
pursuant to this chapter, each must claim the taxpayer's own143
exemption, but not both, as authorized under section 5747.02 of144
the Revised Code on the taxpayer's own return.145

       (F) Each return or notice required to be filed under this146
section shall contain the signature of the taxpayer or the147
taxpayer's duly authorized agent and of the person who prepared148
the return for the taxpayer, and shall include the taxpayer's149
social security number. Each return shall be verified by a150
declaration under the penalties of perjury. The tax commissioner151
shall prescribe the form that the signature and declaration shall152
take.153

       (G) Each return or notice required to be filed under this154
section shall be made and filed as required by section 5747.04 of155
the Revised Code, on or before the fifteenth day of April of each156
year, on forms that the tax commissioner shall prescribe, together157
with remittance made payable to the treasurer of state in the158
combined amount of the state and all school district income taxes159
shown to be due on the form, unless the combined amount shown to160
be due is one dollar or less, in which case that amount need not161
be remitted.162

       Upon good cause shown, the tax commissioner may extend the163
period for filing any notice or return required to be filed under164
this section and may adopt rules relating to extensions. If the165
extension results in an extension of time for the payment of any166
state or school district income tax liability with respect to167
which the return is filed, the taxpayer shall pay at the time the168
tax liability is paid an amount of interest computed at the rate169
per annum prescribed by section 5703.47 of the Revised Code on170
that liability from the time that payment is due without extension171
to the time of actual payment. Except as provided in section172
5747.132 of the Revised Code, in addition to all other interest173
charges and penalties, all taxes imposed under this chapter or174
Chapter 5748. of the Revised Code and remaining unpaid after they175
become due, except combined amounts due of one dollar or less,176
bear interest at the rate per annum prescribed by section 5703.47177
of the Revised Code until paid or until the day an assessment is178
issued under section 5747.13 of the Revised Code, whichever occurs179
first.180

       If the tax commissioner considers it necessary in order to 181
ensure the payment of the tax imposed by section 5747.02 of the 182
Revised Code or any tax imposed under Chapter 5748. of the Revised 183
Code, the tax commissioner may require returns and payments to be 184
made otherwise than as provided in this section.185

       To the extent that any provision in this division conflicts 186
with any provision in section 5747.026 of the Revised Code, the 187
provision in that section prevails.188

       (H) If any report, claim, statement, or other document189
required to be filed, or any payment required to be made, within a190
prescribed period or on or before a prescribed date under this191
chapter is delivered after that period or that date by United192
States mail to the agency, officer, or office with which the193
report, claim, statement, or other document is required to be194
filed, or to which the payment is required to be made, the date of195
the postmark stamped on the cover in which the report, claim,196
statement, or other document, or payment is mailed shall be deemed197
to be the date of delivery or the date of payment.198

       If a payment is required to be made by electronic funds199
transfer pursuant to section 5747.072 of the Revised Code, the200
payment is considered to be made when the payment is received by201
the treasurer of state or credited to an account designated by the202
treasurer of state for the receipt of tax payments.203

       "The date of the postmark" means, in the event there is more204
than one date on the cover, the earliest date imprinted on the205
cover by the United States postal service.206

       (I) The amounts withheld by the employer pursuant to section207
5747.06 of the Revised Code shall be allowed to the recipient of208
the compensation as credits against payment of the appropriate209
taxes imposed on the recipient by section 5747.02 and under210
Chapter 5748. of the Revised Code.211

       (J) If, in accordance with division (D) of this section, a212
pass-through entity elects to file a single return and if any213
investor is required to file the return and make the payment of214
taxes required by this chapter on account of the investor's other215
income that is not included in a single return filed by a216
pass-through entity, the investor is entitled to a refundable217
credit equal to the investor's proportionate share of the tax paid218
by the pass-through entity on behalf of the investor. The investor 219
shall claim the credit for the investor's taxable year in which or 220
with which ends the taxable year of the pass-through entity. 221
Nothing in this chapter shall be construed to allow any credit 222
provided in this chapter to be claimed more than once. For the 223
purposes of computing any interest, penalty, or interest penalty, 224
the investor shall be deemed to have paid the refundable credit 225
provided by this division on the day that the pass-through entity 226
paid the estimated tax or the tax giving rise to the credit.227

       (K) The tax commissioner shall ensure that each return228
required to be filed under this section includes a box that the229
taxpayer may check to authorize a paid tax preparer who prepared230
the return to communicate with the department of taxation about231
matters pertaining to the return. The return or instructions232
accompanying the return shall indicate that by checking the box233
the taxpayer authorizes the department of taxation to contact the234
preparer concerning questions that arise during the processing of235
the return and authorizes the preparer only to provide the236
department with information that is missing from the return, to237
contact the department for information about the processing of the238
return or the status of the taxpayer's refund or payments, and to239
respond to notices about mathematical errors, offsets, or return240
preparation that the taxpayer has received from the department and241
has shown to the preparer.242

       Sec. 5747.67.  A four hundred dollar credit is allowed 243
against the tax imposed by section 5747.02 of the Revised Code for 244
a taxpayer that performs services as a volunteer firefighter 245
during the taxpayer's taxable year. The credit shall be claimed in 246
the order required under section 5747.98 of the Revised Code. The 247
credit may not exceed the tax otherwise due after deducting all 248
other credits in that order. Excess credit may be applied against 249
the taxpayer's tax liability in subsequent taxable years until 250
fully used. For purposes of this section, "volunteer firefighter" 251
means an individual who is authorized to act as a firefighter 252
under section 3737.66 of the Revised Code, who serves as a 253
firefighter on a less than full-time basis for a municipal 254
corporation, township, township fire district, nonprofit fire 255
company, or joint fire district, and who is not a part-time paid256
firefighter as defined in section 4765.01 of the Revised Code.257

       Sec. 5747.98.  (A) To provide a uniform procedure for258
calculating the amount of tax due under section 5747.02 of the259
Revised Code, a taxpayer shall claim any credits to which the260
taxpayer is entitled in the following order:261

       (1) The retirement income credit under division (B) of262
section 5747.055 of the Revised Code;263

       (2) The senior citizen credit under division (C) of section264
5747.05 of the Revised Code;265

       (3) The lump sum distribution credit under division (D) of266
section 5747.05 of the Revised Code;267

       (4) The dependent care credit under section 5747.054 of the268
Revised Code;269

       (5) The lump sum retirement income credit under division (C)270
of section 5747.055 of the Revised Code;271

       (6) The lump sum retirement income credit under division (D)272
of section 5747.055 of the Revised Code;273

       (7) The lump sum retirement income credit under division (E)274
of section 5747.055 of the Revised Code;275

       (8) The low-income credit under section 5747.056 of the 276
Revised Code;277

       (9) The credit for displaced workers who pay for job training 278
under section 5747.27 of the Revised Code;279

       (10) The campaign contribution credit under section 5747.29280
of the Revised Code;281

       (11) The twenty-dollar personal exemption credit under282
section 5747.022 of the Revised Code;283

       (12) The joint filing credit under division (G) of section284
5747.05 of the Revised Code;285

       (13) The nonresident credit under division (A) of section286
5747.05 of the Revised Code;287

       (14) The credit for a resident's out-of-state income under288
division (B) of section 5747.05 of the Revised Code;289

       (15) The credit for employers that enter into agreements with 290
child day-care centers under section 5747.34 of the Revised Code;291

       (16) The credit for employers that reimburse employee child 292
care expenses under section 5747.36 of the Revised Code;293

       (17) The credit for adoption of a minor child under section294
5747.37 of the Revised Code;295

       (18) The credit for purchases of lights and reflectors under296
section 5747.38 of the Revised Code;297

       (19) The job retention credit under division (B) of section298
5747.058 of the Revised Code;299

       (20) The credit for selling alternative fuel under section 300
5747.77 of the Revised Code;301

       (21) The second credit for purchases of new manufacturing302
machinery and equipment and the credit for using Ohio coal under303
section 5747.31 of the Revised Code;304

       (22) The job training credit under section 5747.39 of the305
Revised Code;306

       (23) The enterprise zone credit under section 5709.66 of the307
Revised Code;308

       (24) The credit for the eligible costs associated with a309
voluntary action under section 5747.32 of the Revised Code;310

       (25) The credit for employers that establish on-site child311
day-care centers under section 5747.35 of the Revised Code;312

       (26) The ethanol plant investment credit under section313
5747.75 of the Revised Code;314

       (27) The credit for purchases of qualifying grape production315
property under section 5747.28 of the Revised Code;316

       (28) The export sales credit under section 5747.057 of the317
Revised Code;318

       (29) The credit for research and development and technology319
transfer investors under section 5747.33 of the Revised Code;320

       (30) The enterprise zone credits under section 5709.65 of the321
Revised Code;322

       (31) The research and development credit under section 323
5747.331 of the Revised Code;324

       (32) The credit for rehabilitating a historic building under 325
section 5747.76 of the Revised Code;326

       (33) The volunteer firefighter credit under section 5747.67 327
of the Revised Code;328

       (34) The refundable credit for rehabilitating a historic 329
building under section 5747.76 of the Revised Code;330

       (34)(35) The refundable jobs creation credit under division331
(A) of section 5747.058 of the Revised Code;332

       (35)(36) The refundable credit for taxes paid by a qualifying333
entity granted under section 5747.059 of the Revised Code;334

       (36)(37) The refundable credits for taxes paid by a335
qualifying pass-through entity granted under division (J) of336
section 5747.08 of the Revised Code;337

       (37)(38) The refundable credit for tax withheld under338
division (B)(1) of section 5747.062 of the Revised Code;339

       (38)(39) The refundable credit under section 5747.80 of the 340
Revised Code for losses on loans made to the Ohio venture capital 341
program under sections 150.01 to 150.10 of the Revised Code.342

       (B) For any credit, except the refundable credits enumerated343
in divisions (A)(33) to (38) of this section and the credit 344
granted under division (I) of section 5747.08 of the Revised 345
Code, the amount of the credit for a taxable year shall not346
exceed the tax due after allowing for any other credit that347
precedes it in the order required under this section. Any excess348
amount of a particular credit may be carried forward if349
authorized under the section creating that credit. Nothing in 350
this chapter shall be construed to allow a taxpayer to claim, 351
directly or indirectly, a credit more than once for a taxable 352
year.353

       Section 2.  That existing sections 5747.08 and 5747.98 of the 354
Revised Code are hereby repealed.355