| Sec. 5739.12. (A)(1) Each person who has or is required to | 7 |
|
have a vendor's license, on or before the twenty-third day of each | 8 |
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month, shall make and file a return for the preceding month in the | 9 |
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form prescribed by the tax commissioner, and shall pay the tax | 10 |
|
shown on the return to be due. The return shall be filed | 11 |
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electronically using the Ohio business gateway, as defined in | 12 |
|
section 718.051 of the Revised Code, the Ohio telefile system, or | 13 |
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any other electronic means prescribed by the commissioner. Payment | 14 |
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of the tax shown on the return to be due shall be made | 15 |
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electronically in a manner approved by the commissioner. The | 16 |
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commissioner may require a vendor that operates from multiple | 17 |
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locations or has multiple vendor's licenses to report all tax | 18 |
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liabilities on one consolidated return. The return shall show the | 19 |
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amount of tax due from the vendor to the state for the period | 20 |
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covered by the return and such other information as the | 21 |
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commissioner deems necessary for the proper administration of this | 22 |
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chapter. The commissioner may extend the time for making and | 23 |
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filing returns and paying the tax, and may require that the return | 24 |
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for the last month of any annual or semiannual period, as | 25 |
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determined by the commissioner, be a reconciliation return | 26 |
|
detailing the vendor's sales activity for the preceding annual or | 27 |
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semiannual period. The reconciliation return shall be filed by the | 28 |
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last day of the month following the last month of the annual or | 29 |
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semiannual period. The commissioner may remit all or any part of | 30 |
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amounts or penalties that may become due under this chapter and | 31 |
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may adopt rules relating thereto. Such return shall be filed | 32 |
|
electronically as directed by the tax commissioner, and payment of | 33 |
|
the amount of tax shown to be due thereon, after deduction of any | 34 |
|
discount provided for under this section, shall be made | 35 |
|
electronically in a manner approved by the tax commissioner. | 36 |
| (B)(1) If the return is filed and the amount of tax shown | 44 |
|
thereon to be due is paid on or before the date such return is | 45 |
|
required to be filed, the vendor shall be entitled to a discount | 46 |
of three-fourths of onefive per cent of the amount shown to be | 47 |
|
due on the return.
The discount authorized under this section, | 48 |
|
when combined with the discount authorized under section 5747.07 | 49 |
|
of the Revised Code, may not exceed ten thousand dollars per | 50 |
|
vendor per calendar year. | 51 |
| (2) A vendor that has selected a certified service provider | 52 |
|
as its agent shall not be entitled to the discount if the | 53 |
|
certified service provider receives a monetary allowance pursuant | 54 |
|
to section 5739.06 of the Revised Code for performing the vendor's | 55 |
|
sales and use tax functions in this state. Amounts paid to the | 56 |
|
clerk of courts pursuant to section 4505.06 of the Revised Code | 57 |
|
shall be subject to the applicable discount. The discount shall be | 58 |
|
in consideration for prompt payment to the clerk of courts and for | 59 |
|
other services performed by the vendor in the collection of the | 60 |
|
tax. | 61 |
| (C)(1) Upon application to the tax commissioner, a vendor who | 62 |
|
is required to file monthly returns may be relieved of the | 63 |
|
requirement to report and pay the actual tax due, provided that | 64 |
|
the vendor agrees to remit to the commissioner payment of not less | 65 |
|
than an amount determined by the commissioner to be the average | 66 |
|
monthly tax liability of the vendor, based upon a review of the | 67 |
|
returns or other information pertaining to such vendor for a | 68 |
|
period of not less than six months nor more than two years | 69 |
|
immediately preceding the filing of the application. Vendors who | 70 |
|
agree to the above conditions shall make and file an annual or | 71 |
|
semiannual reconciliation return, as prescribed by the | 72 |
|
commissioner. The reconciliation return shall be filed | 73 |
|
electronically as directed by the tax commissioner, and payment of | 74 |
|
the amount of tax shown to be due thereon, after deduction of any | 75 |
|
discount provided in this section, shall be made electronically in | 76 |
|
a manner approved by the commissioner. Failure of a vendor to | 77 |
|
comply with any of the above conditions may result in immediate | 78 |
|
reinstatement of the requirement of reporting and paying the | 79 |
|
actual tax liability on each monthly return, and the commissioner | 80 |
|
may at the commissioner's discretion deny the vendor the right to | 81 |
|
report and pay based upon the average monthly liability for a | 82 |
|
period not to exceed two years. The amount
ascertained by the | 83 |
|
commissioner to be the average monthly tax liability of a vendor | 84 |
|
may be adjusted, based upon a review of the returns or other | 85 |
|
information pertaining to the vendor for a period of not less than | 86 |
|
six months nor more than two years preceding such adjustment. | 87 |
| (2) The commissioner may authorize vendors whose tax | 88 |
|
liability is not such as to merit monthly returns, as ascertained | 89 |
|
by the commissioner upon the basis of administrative costs to the | 90 |
|
state, to make and file returns at less frequent intervals. When | 91 |
|
returns are filed at less frequent intervals in accordance with | 92 |
|
such authorization, the vendor shall be allowed the discount | 93 |
|
provided in this section in consideration for prompt payment with | 94 |
|
the return, provided the return is filed and payment is made of | 95 |
|
the amount of tax shown to be due thereon, at the time specified | 96 |
|
by the commissioner, but a vendor that has selected a certified | 97 |
|
service provider as its agent shall not be entitled to the | 98 |
|
discount. | 99 |
| (D) Any vendor who fails to file a return or to pay the full | 100 |
|
amount of the tax shown on the return to be due in the manner | 101 |
|
prescribed under this section and the rules of the commissioner | 102 |
|
may, for each such return, be required to forfeit and pay into the | 103 |
|
state treasury an additional charge not exceeding fifty dollars or | 104 |
|
ten per cent of the tax required to be paid for the reporting | 105 |
|
period, whichever is greater, as revenue arising from the tax | 106 |
|
imposed by this chapter, and such sum may be collected by | 107 |
|
assessment in the manner provided in section 5739.13 of the | 108 |
|
Revised Code. The commissioner may remit all or a portion of the | 109 |
|
additional charge and may adopt rules relating to the imposition | 110 |
|
and remission of the additional charge. | 111 |
| (E) If the amount required to be collected by a vendor from | 112 |
|
consumers is in excess of the applicable percentage of the | 113 |
|
vendor's receipts from sales that are taxable under section | 114 |
|
5739.02 of the Revised Code, or in the case of sales subject to a | 115 |
|
tax levied pursuant to section 5739.021, 5739.023, or 5739.026 of | 116 |
|
the Revised Code, in excess of the percentage equal to the | 117 |
|
aggregate rate of such taxes and the tax levied by section 5739.02 | 118 |
|
of the Revised Code, such excess shall be remitted along with the | 119 |
|
remittance of the amount of tax due under section 5739.10 of the | 120 |
|
Revised Code. | 121 |
| (G) Any vendor required to file a return and pay the tax | 126 |
|
under this section whose total payment for a year equals or | 127 |
|
exceeds the amount shown in division (A) of section 5739.122 of | 128 |
|
the Revised Code is subject to the accelerated tax payment | 129 |
|
requirements in divisions (B) and (C) of that section. For a | 130 |
|
vendor that operates from multiple locations or has multiple | 131 |
|
vendor's licenses, in determining whether the vendor's total | 132 |
|
payment equals or exceeds the amount shown in division (A) of that | 133 |
|
section, the vendor's total payment amount shall be the amount of | 134 |
|
the vendor's total tax liability for the previous calendar year | 135 |
|
for all of the vendor's locations or licenses. | 136 |
| (1) "Partial weekly withholding period" means a period during | 138 |
|
which an employer directly, indirectly, or constructively pays | 139 |
|
compensation to, or credits compensation to the benefit of, an | 140 |
|
employee, and that consists of a consecutive Saturday, Sunday, | 141 |
|
Monday, and Tuesday or a consecutive Wednesday, Thursday, and | 142 |
|
Friday. There are two partial weekly withholding periods each | 143 |
|
week, except that a partial weekly withholding period cannot | 144 |
|
extend from one calendar year into the next calendar year; if the | 145 |
|
first day of January falls on a day other than Saturday or | 146 |
|
Wednesday, the partial weekly withholding period ends on the | 147 |
|
thirty-first day of December and there are three partial weekly | 148 |
|
withholding periods during that week. | 149 |
| (1) An employer who accumulates or is required to accumulate | 163 |
|
undeposited taxes of one hundred thousand dollars or more during a | 164 |
|
partial weekly withholding period shall make the payment of the | 165 |
|
undeposited taxes by the close of the first banking day after the | 166 |
|
day on which the accumulation reaches one hundred thousand | 167 |
|
dollars. If required under division (I) of this section, the | 168 |
|
payment shall be made by electronic funds transfer under section | 169 |
|
5747.072 of the Revised Code. | 170 |
(2)(a) Except as required by division (B)(1) of this section, | 171 |
an employer described in division (B)(2)(b) of this sectionif an | 172 |
|
employer's actual and required payments under this section were at | 173 |
|
least eighty-four thousand dollars during the twelve-month period | 174 |
|
ending on the thirtieth day of June of the preceding calendar | 175 |
|
year, the employer shall make the payment of undeposited taxes | 176 |
|
within three banking days after the close of a partial weekly | 177 |
|
withholding period during which the employer was required to | 178 |
deduct and withhold any amount under this chapter. If required | 179 |
under division (I) of this section, and the payment shall be made | 180 |
|
by electronic funds transfer under section 5747.072 of the Revised | 181 |
|
Code. | 182 |
(b) For amounts required to be deducted and withheld during | 183 |
1994, an employer described in division (B)(2)(b) of this section | 184 |
is one whose actual or required payments under this section | 185 |
exceeded one hundred eighty thousand dollars during the | 186 |
twelve-month period ending June 30, 1993. For amounts required to | 187 |
be deducted and withheld during 1995 and each year thereafter, an | 188 |
employer described in division (B)(2)(b) of this section is one | 189 |
whose actual or required payments under this section were at least | 190 |
eighty-four thousand dollars during the twelve-month period ending | 191 |
on the thirtieth day of June of the preceding calendar year. | 192 |
| (3) Except as required by divisions (B)(1) and (2) of this | 193 |
|
section, if an employer's actual or required payments were more | 194 |
|
than two thousand dollars during the twelve-month period ending on | 195 |
|
the thirtieth day of June of the preceding calendar year, the | 196 |
|
employer shall make the payment of undeposited taxes for each | 197 |
|
month during which they were required to be withheld no later than | 198 |
|
fifteen days following the last day of that month. The employer | 199 |
|
shall file the return prescribed by the tax commissioner with the | 200 |
|
payment. | 201 |
| (4) Except as required by divisions (B)(1), (2), and (3) of | 202 |
|
this section, an employer shall make the payment of undeposited | 203 |
|
taxes for each calendar quarter during which they were required to | 204 |
|
be withheld no later than the last day of the month following the | 205 |
|
last day of March, June, September, and December each year. The | 206 |
|
employer shall file the return prescribed by the tax commissioner | 207 |
|
with the payment. | 208 |
| (D)(1) The requirements of division (B) of this section are | 216 |
|
met if the amount paid, plus the discount allowed under division | 217 |
|
(J) of this section, is not less than ninety-five per cent of the | 218 |
|
actual tax withheld or required to be withheld for the prior | 219 |
|
quarterly, monthly, or partial weekly withholding period, and the | 220 |
|
underpayment is not due to willful neglect. Any underpayment of | 221 |
|
withheld tax shall be paid within thirty days of the date on which | 222 |
|
the withheld tax was due without regard to division (D)(1) of this | 223 |
|
section. An employer described in division (B)(1) or (2) of this | 224 |
|
section shall make the payment by electronic funds transfer under | 225 |
|
section 5747.072 of the Revised Code. | 226 |
| (2) If the tax commissioner believes that quarterly or | 227 |
|
monthly payments would result in a delay that might jeopardize the | 228 |
|
remittance of withholding payments, the commissioner may order | 229 |
|
that the payments be made weekly, or more frequently if necessary, | 230 |
|
and the payments shall be made no later than three banking days | 231 |
|
following the close of the period for which the jeopardy order is | 232 |
|
made. An order requiring weekly or more frequent payments shall be | 233 |
|
delivered to the employer personally or by certified mail and | 234 |
|
remains in effect until the commissioner notifies the employer to | 235 |
|
the contrary. | 236 |
| (3) If compelling circumstances exist concerning the | 237 |
|
remittance of undeposited taxes, the commissioner may order the | 238 |
|
employer to make payments under any of the payment schedules under | 239 |
|
division (B) of this section. The order shall be delivered to the | 240 |
|
employer personally or by certified mail and shall remain in | 241 |
|
effect until the commissioner notifies the employer to the | 242 |
|
contrary. For purposes of division (D)(3) of this section, | 243 |
|
"compelling circumstances" exist if either or both of the | 244 |
|
following are true: | 245 |
| (E)(1) An employer described in division (B)(1) or (2) of | 255 |
|
this section shall file, not later than the last day of the month | 256 |
|
following the end of each calendar quarter, a return covering, but | 257 |
|
not limited to, both the actual amount deducted and withheld and | 258 |
|
the amount required to be deducted and withheld for the tax | 259 |
|
imposed under section 5747.02 of the Revised Code during each | 260 |
|
partial weekly withholding period or portion of a partial weekly | 261 |
|
withholding period during that quarter. The employer shall file | 262 |
|
the quarterly return even if the aggregate amount required to be | 263 |
|
deducted and withheld for the quarter is zero dollars. At the time | 264 |
|
of filing the return, the employer shall pay any amounts of | 265 |
|
undeposited taxes for the quarter, whether actually deducted and | 266 |
|
withheld or required to be deducted and withheld, that have not | 267 |
|
been previously paid. If required under division (I) of this | 268 |
|
section, the payment shall be made by electronic funds transfer. | 269 |
|
The tax commissioner shall prescribe the form and other | 270 |
|
requirements of the quarterly return. | 271 |
| (2) In addition to other returns required to be filed and | 272 |
|
payments required to be made under this section, every employer | 273 |
|
required to deduct and withhold taxes shall file, not later than | 274 |
|
the thirty-first day of January of each year, an annual return | 275 |
|
covering, but not limited to, both the aggregate amount deducted | 276 |
|
and withheld and the aggregate amount required to be deducted and | 277 |
|
withheld during the entire preceding year for the tax imposed | 278 |
|
under section 5747.02 of the Revised Code and for each tax imposed | 279 |
|
under Chapter 5748. of the Revised Code. At the time of filing | 280 |
|
that return, the employer shall pay over any amounts of | 281 |
|
undeposited taxes for the preceding year, whether actually | 282 |
|
deducted and withheld or required to be deducted and withheld, | 283 |
|
that have not been previously paid. The employer shall make the | 284 |
|
annual report, to each employee and to the tax commissioner, of | 285 |
|
the compensation paid and each tax withheld, as the commissioner | 286 |
|
by rule may prescribe. | 287 |
| Each employer required to deduct and withhold any tax is | 288 |
|
liable for the payment of that amount required to be deducted and | 289 |
|
withheld, whether or not the tax has in fact been withheld, unless | 290 |
|
the failure to withhold was based upon the employer's good faith | 291 |
|
in reliance upon the statement of the employee as to liability, | 292 |
|
and the amount shall be deemed to be a special fund in trust for | 293 |
|
the general revenue fund. | 294 |
| (4) The amount of the tax imposed by section 5747.02 of the | 306 |
|
Revised Code and the amount of each tax imposed under Chapter | 307 |
|
5748. of the Revised Code withheld from the compensation of the | 308 |
|
employee for the period for which the annual return is made. The | 309 |
|
commissioner may extend upon good cause the period for filing any | 310 |
|
notice or return required to be filed under this section and may | 311 |
|
adopt rules relating to extensions of time. If the extension | 312 |
|
results in an extension of time for the payment of the amounts | 313 |
|
withheld with respect to which the return is filed, the employer | 314 |
|
shall pay, at the time the amount withheld is paid, an amount of | 315 |
|
interest computed at the rate per annum prescribed by section | 316 |
|
5703.47 of the Revised Code on that amount withheld, from the day | 317 |
|
that amount was originally required to be paid to the day of | 318 |
|
actual payment or to the day an assessment is issued under section | 319 |
|
5747.13 of the Revised Code, whichever occurs first. | 320 |
| (5) In addition to all other interest charges and penalties | 321 |
|
imposed, all amounts of taxes withheld or required to be withheld | 322 |
|
and remaining unpaid after the day the amounts are required to be | 323 |
|
paid shall bear interest from the date prescribed for payment at | 324 |
|
the rate per annum prescribed by section 5703.47 of the Revised | 325 |
|
Code on the amount unpaid, in addition to the amount withheld, | 326 |
|
until paid or until the day an assessment is issued under section | 327 |
|
5747.13 of the Revised Code, whichever occurs first. | 328 |
| (G) An employee of a corporation, limited liability company, | 329 |
|
or business trust having control or supervision of or charged with | 330 |
|
the responsibility of filing the report and making payment, or an | 331 |
|
officer, member, manager, or trustee of a corporation, limited | 332 |
|
liability company, or business trust who is responsible for the | 333 |
|
execution of the corporation's, limited liability company's, or | 334 |
|
business trust's fiscal responsibilities, shall be personally | 335 |
|
liable for failure to file the report or pay the tax due as | 336 |
|
required by this section. The dissolution, termination, or | 337 |
|
bankruptcy of a corporation, limited liability company, or | 338 |
|
business trust does not discharge a responsible officer's, | 339 |
|
member's, manager's, employee's, or trustee's liability for a | 340 |
|
failure of the corporation, limited liability company, or business | 341 |
|
trust to file returns or pay tax due. | 342 |
| (H) If an employer required to deduct and withhold income tax | 343 |
|
from compensation and to pay that tax to the state under sections | 344 |
|
5747.06 and 5747.07 of the Revised Code sells the employer's | 345 |
|
business or stock of merchandise or quits the employer's business, | 346 |
|
the taxes required to be deducted and withheld and paid to the | 347 |
|
state pursuant to those sections prior to that time, together with | 348 |
|
any interest and penalties imposed on those taxes, become due and | 349 |
|
payable immediately, and that person shall make a final return | 350 |
|
within fifteen days after the date of selling or quitting | 351 |
|
business. The employer's successor shall withhold a sufficient | 352 |
|
amount of the purchase money to cover the amount of the taxes, | 353 |
|
interest, and penalties due and unpaid, until the former owner | 354 |
|
produces a receipt from the tax commissioner showing that the | 355 |
|
taxes, interest, and penalties have been paid or a certificate | 356 |
|
indicating that no such taxes are due. If the purchaser of the | 357 |
|
business or stock of merchandise fails to withhold purchase money, | 358 |
|
the purchaser shall be personally liable for the payment of the | 359 |
|
taxes, interest, and penalties accrued and unpaid during the | 360 |
|
operation of the business by the former owner. If the amount of | 361 |
|
taxes, interest, and penalties outstanding at the time of the | 362 |
|
purchase exceeds the total purchase money, the tax commissioner in | 363 |
|
the commissioner's discretion may adjust the liability of the | 364 |
|
seller or the responsibility of the purchaser to pay that | 365 |
|
liability to maximize the collection of withholding tax revenue. | 366 |
| (J) If the return required by this section is filed, and the | 396 |
|
amount of tax shown to be due on the return is paid, on or before | 397 |
|
the day required by this section, the employer is entitled to a | 398 |
|
discount equal to five per cent of the amount of undeposited taxes | 399 |
|
remitted. The discount authorized under this section, when | 400 |
|
combined with the discount authorized under section 5739.12 of the | 401 |
|
Revised Code, may not exceed ten thousand dollars per employer per | 402 |
|
calendar year. With respect to each employee, the discount | 403 |
|
retained by the employer shall be considered to have been remitted | 404 |
|
for purposes of reporting the state and school district income tax | 405 |
|
deducted and withheld from the employee's compensation under | 406 |
|
section 5747.06 of the Revised Code and for purposes of | 407 |
|
determining the state and school district income tax paid by the | 408 |
|
employee. | 409 |
| Section 3. That the amendment by this act of sections 5739.12 | 412 |
|
and 5747.07 of the Revised Code applies to returns filed under | 413 |
|
those sections on and after the first day of the first month | 414 |
|
beginning on or after the effective date of this act. For the year | 415 |
|
in which this act takes effect, the $10,000-per-calendar-year | 416 |
|
limitation on the discount allowed under those sections shall be | 417 |
|
reduced ratably according to the number of months in that year | 418 |
|
ending before the first month in which those sections apply. | 419 |