As Pending in the Senate Ways and Means Committee

130th General Assembly Regular Session 2013-2014

Sub. H. B. No. 5

Representatives Grossman, Henne 

Cosponsors: Representatives Amstutz, Beck, Adams, J., Blair, Brenner, Buchy, DeVitis, Hagan, C., Hood, Maag, Retherford, Roegner, Ruhl, Scherer, Sears, Terhar, Thompson, Young Speaker Batchelder 

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A BILL

To amend sections 128.46, 709.023, 715.013, 718.02,

1

718.03, 718.051, 718.07, 718.09, 718.10, 718.11,

2

718.121, 718.13, 5703.02, 5703.059, 5703.57,

3

5717.011, 5717.03, 5726.03, 5736.04, 5739.12,

4

5739.124, 5741.122, 5747.063, 5747.064, 5747.50,

5

5749.06, and 5751.07, to amend, for the purpose of

6

adopting a new section number as indicated in

7

parentheses, section 718.04 (718.50), to enact new

8

sections 718.01, 718.011, 718.04, 718.05, 718.06,

9

718.08, and 718.12 and sections 718.012, 718.031,

10

718.052, 718.19, 718.23 to 718.28, 718.30, 718.31,

11

718.35 to 718.39, 718.41, and 718.99, and to

12

repeal sections 718.01, 718.011, 718.041, 718.05,

13

718.06, 718.08, 718.12, and 718.14 of the Revised

14

Code to revise the laws governing income taxes

15

imposed by municipal corporations.

16

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

Section 1.  That sections 128.46, 709.023, 715.013, 718.02,	17
718.03, 718.051, 718.07, 718.09, 718.10, 718.11, 718.121, 718.13,	18
5703.02, 5703.059, 5703.57, 5717.011, 5717.03, 5726.03, 5736.04,	19
5739.12, 5739.124, 5741.122, 5747.063, 5747.064, 5747.50, 5749.06,	20
and 5751.07 be amended, section 718.04 (718.50) be amended for the	21
purpose of adopting a new section number as indicated in	22
parentheses, and new sections 718.01, 718.011, 718.04, 718.05,	23
718.06, 718.08, and 718.12 and sections 718.012, 718.031, 718.052,	24
718.19, 718.23, 718.24, 718.25, 718.26, 718.27, 718.28, 718.30,	25
718.31, 718.35, 718.36, 718.37, 718.38, 718.39, 718.41, and 718.99	26
of the Revised Code be enacted to read as follows:	27

Sec. 128.46. (A) Prior to January 1, 2014:

28

(1) A wireless service provider or reseller, not later than	29
the last day of each month, shall remit the full amount of all	30
wireless 9-1-1 charges it collected under division (A) of section	31
128.42 of the Revised Code for the second preceding calendar month	32
to the administrator, with the exception of charges equivalent to	33
the amount authorized as a billing and collection fee under	34
division (A)(2) of this section. In doing so, the provider or	35
reseller may remit the requisite amount in any reasonable manner	36
consistent with its existing operating or technological	37
capabilities, such as by customer address, location associated	38
with the wireless telephone number, or another allocation method	39
based on comparable, relevant data. If the wireless service	40
provider or reseller receives a partial payment for a bill from a	41
wireless service subscriber, the wireless service provider or	42
reseller shall apply the payment first against the amount the	43
subscriber owes the wireless service provider or reseller and	44
shall remit to the administrator such lesser amount, if any, as	45
results from that invoice.	46

(2) A wireless service provider or reseller may retain as a	47
billing and collection fee two per cent of the total wireless	48
9-1-1 charges it collects in a month and shall account to the	49
administrator for the amount retained.	50

(3) The administrator shall return to, or credit against the	51
next month's remittance of, a wireless service provider or	52
reseller the amount of any remittances the administrator	53
determines were erroneously submitted by the provider or reseller.	54

(B) Beginning January 1, 2014:

55

(1) Each seller of a prepaid wireless calling service,	56
wireless service provider, and reseller shall, on or before the	57
twenty-third day of each month, except as provided in divisions	58
(B)(2) and (3) of this section, do both of the following:	59

(a) Make and file a return for the preceding month, in the	60
form prescribed by the tax commissioner, showing the amount of the	61
wireless 9-1-1 charges due under section 128.42 of the Revised	62
Code for that month;	63

(b) Remit the full amount due, as shown on the return, with	64
the exception of charges equivalent to the amount authorized as a	65
collection fee under division (B)(4) of this section.	66

(2) The commissioner may grant one or more thirty-day	67
extensions for making and filing returns and remitting amounts	68
due.	69

(3) If a seller is required to collect prepaid wireless 9-1-1	70
charges in amounts that do not merit monthly returns, the	71
commissioner may authorize the seller to make and file returns	72
less frequently. The commissioner shall ascertain whether this	73
authorization is warranted upon the basis of administrative costs	74
to the state.	75

(4) A wireless service provider, reseller, and seller may	76
each retain as a collection fee three per cent of the total	77
wireless 9-1-1 charges required to be collected under section	78
128.42 of the Revised Code, and shall account to the tax	79
commissioner for the amount retained.	80

(5) The return required under division (B)(1)(a) of this	81
section shall be filed electronically using the Ohio business	82
gateway, as defined in section 718.051718.01 of the Revised Code,	83
the Ohio telefile system, or any other electronic means prescribed	84
by the tax commissioner. Remittance of the amount due shall be	85
made electronically in a manner approved by the commissioner. A	86
wireless service provider, reseller, or seller may apply to the	87
commissioner on a form prescribed by the commissioner to be	88
excused from either electronic requirement of this division. For	89
good cause shown, the commissioner may excuse the provider,	90
reseller, or seller from either or both of the requirements and	91
may permit the provider, reseller, or seller to file returns or	92
make remittances by nonelectronic means.	93

(C)(1) Prior to January 1, 2014, each subscriber on which a	94
wireless 9-1-1 charge is imposed under division (A) of section	95
128.42 of the Revised Code is liable to the state for the amount	96
of the charge. If a wireless service provider or reseller fails to	97
collect the charge under that division from a subscriber of	98
prepaid wireless service, or fails to bill any other subscriber	99
for the charge, the wireless service provider or reseller is	100
liable to the state for the amount not collected or billed. If a	101
wireless service provider or reseller collects charges under that	102
division and fails to remit the money to the administrator, the	103
wireless service provider or reseller is liable to the state for	104
any amount collected and not remitted.	105

(2) Beginning January 1, 2014:

106

(a) Each subscriber or consumer on which a wireless 9-1-1	107
charge is imposed under section 128.42 of the Revised Code is	108
liable to the state for the amount of the charge. If a wireless	109
service provider or reseller fails to bill or collect the charge,	110
or if a seller fails to collect the charge, the provider,	111
reseller, or seller is liable to the state for the amount not	112
billed or collected. If a provider, reseller, or seller fails to	113
remit money to the tax commissioner as required under this	114
section, the provider, reseller, or seller is liable to the state	115
for the amount not remitted, regardless of whether the amount was	116
collected.	117

(b) No provider of a prepaid wireless calling service shall	118
be liable to the state for any wireless 9-1-1 charge imposed under	119
division (B)(1) of section 128.42 of the Revised Code that was not	120
collected or remitted.	121

(D) Prior to January 1, 2014:

122

(1) If the steering committee has reason to believe that a	123
wireless service provider or reseller has failed to bill, collect,	124
or remit the wireless 9-1-1 charge as required by divisions (A)(1)	125
and (C)(1) of this section or has retained more than the amount	126
authorized under division (A)(2) of this section, and after	127
written notice to the provider or reseller, the steering committee	128
may audit the provider or reseller for the sole purpose of making	129
such a determination. The audit may include, but is not limited	130
to, a sample of the provider's or reseller's billings,	131
collections, remittances, or retentions for a representative	132
period, and the steering committee shall make a good faith effort	133
to reach agreement with the provider or reseller in selecting that	134
sample.	135

(2) Upon written notice to the wireless service provider or	136
reseller, the steering committee, by order after completion of the	137
audit, may make an assessment against the provider or reseller if,	138
pursuant to the audit, the steering committee determines that the	139
provider or reseller has failed to bill, collect, or remit the	140
wireless 9-1-1 charge as required by divisions (A)(1) and (C)(1)	141
of this section or has retained more than the amount authorized	142
under division (A)(2) of this section. The assessment shall be in	143
the amount of any remittance that was due and unpaid on the date	144
notice of the audit was sent by the steering committee to the	145
provider or reseller or, as applicable, in the amount of the	146
excess amount under division (A)(2) of this section retained by	147
the provider or reseller as of that date.	148

(3) The portion of any assessment not paid within sixty days	149
after the date of service by the steering committee of the	150
assessment notice under division (D)(2) of this section shall bear	151
interest from that date until paid at the rate per annum	152
prescribed by section 5703.47 of the Revised Code. That interest	153
may be collected by making an assessment under division (D)(2) of	154
this section. An assessment under this division and any interest	155
due shall be remitted in the same manner as the wireless 9-1-1	156
charge imposed under division (A) of section 128.42 of the Revised	157
Code.	158

(4) Unless the provider, reseller, or seller assessed files	159
with the steering committee within sixty days after service of the	160
notice of assessment, either personally or by certified mail, a	161
written petition for reassessment, signed by the party assessed or	162
that party's authorized agent having knowledge of the facts, the	163
assessment shall become final and the amount of the assessment	164
shall be due and payable from the party assessed to the	165
administrator. The petition shall indicate the objections of the	166
party assessed, but additional objections may be raised in writing	167
if received by the administrator or the steering committee prior	168
to the date shown on the final determination.	169

(5) After an assessment becomes final, if any portion of the	170
assessment remains unpaid, including accrued interest, a certified	171
copy of the final assessment may be filed in the office of the	172
clerk of the court of common pleas in the county in which the	173
place of business of the assessed party is located. If the party	174
assessed maintains no place of business in this state, the	175
certified copy of the final assessment may be filed in the office	176
of the clerk of the court of common pleas of Franklin county.	177
Immediately upon the filing, the clerk shall enter a judgment for	178
the state against the assessed party in the amount shown on the	179
final assessment. The judgment may be filed by the clerk in a	180
loose-leaf book entitled "special judgments for wireless 9-1-1	181
charges" and shall have the same effect as other judgments. The	182
judgment shall be executed upon the request of the steering	183
committee.	184

(6) An assessment under this division does not discharge a	185
subscriber's liability to reimburse the provider or reseller for	186
the wireless 9-1-1 charge imposed under division (A) of section	187
128.42 of the Revised Code. If, after the date of service of the	188
audit notice under division (D)(1) of this section, a subscriber	189
pays a wireless 9-1-1 charge for the period covered by the	190
assessment, the payment shall be credited against the assessment.	191

(7) All money collected by the administrator under division	192
(D) of this section shall be paid to the treasurer of state, for	193
deposit to the credit of the wireless 9-1-1 government assistance	194
fund.	195

(E) Beginning January 1, 2014:

196

(1) If the tax commissioner has reason to believe that a	197
wireless service provider, reseller, or seller has failed to bill,	198
collect, or remit the wireless 9-1-1 charge as required by this	199
section and section 128.42 of the Revised Code or has retained	200
more than the amount authorized under division (B)(4) of this	201
section, and after written notice to the provider, reseller, or	202
seller, the tax commissioner may audit the provider, reseller, or	203
seller for the sole purpose of making such a determination. The	204
audit may include, but is not limited to, a sample of the	205
provider's, reseller's, or seller's billings, collections,	206
remittances, or retentions for a representative period, and the	207
tax commissioner shall make a good faith effort to reach agreement	208
with the provider, reseller, or seller in selecting that sample.	209

(2) Upon written notice to the wireless service provider,	210
reseller, or seller, the tax commissioner, after completion of the	211
audit, may make an assessment against the provider, reseller, or	212
seller if, pursuant to the audit, the tax commissioner determines	213
that the provider, reseller, or seller has failed to bill,	214
collect, or remit the wireless 9-1-1 charge as required by this	215
section and section 128.42 of the Revised Code or has retained	216
more than the amount authorized under division (B)(4) of this	217
section. The assessment shall be in the amount of any remittance	218
that was due and unpaid on the date notice of the audit was sent	219
by the tax commissioner to the provider, reseller, or seller or,	220
as applicable, in the amount of the excess amount under division	221
(B)(4) of this section retained by the provider, reseller, or	222
seller as of that date.	223

(3) The portion of any assessment consisting of wireless	224
9-1-1 charges due and not paid within sixty days after the date	225
that the assessment was made under division (E)(2) of this section	226
shall bear interest from that date until paid at the rate per	227
annum prescribed by section 5703.47 of the Revised Code. That	228
interest may be collected by making an assessment under division	229
(E)(2) of this section.	230

(4) Unless the provider, reseller, or seller assessed files	231
with the tax commissioner within sixty days after service of the	232
notice of assessment, either personally or by certified mail, a	233
written petition for reassessment, signed by the party assessed or	234
that party's authorized agent having knowledge of the facts, the	235
assessment shall become final and the amount of the assessment	236
shall be due and payable from the party assessed to the treasurer	237
of state, for deposit to the next generation 9-1-1 fund, which is	238
created under section 128.54 of the Revised Code. The petition	239
shall indicate the objections of the party assessed, but	240
additional objections may be raised in writing if received by the	241
commissioner prior to the date shown on the final determination.	242
If the petition has been properly filed, the commissioner shall	243
proceed under section 5703.60 of the Revised Code.	244

(5) After an assessment becomes final, if any portion of the	245
assessment remains unpaid, including accrued interest, a certified	246
copy of the final assessment may be filed in the office of the	247
clerk of the court of common pleas in the county in which the	248
business of the assessed party is conducted. If the party assessed	249
maintains no place of business in this state, the certified copy	250
of the final assessment may be filed in the office of the clerk of	251
the court of common pleas of Franklin county. Immediately upon the	252
filing, the clerk shall enter a judgment for the state against the	253
assessed party in the amount shown on the final assessment. The	254
judgment may be filed by the clerk in a loose-leaf book entitled	255
"special judgments for wireless 9-1-1 charges" and shall have the	256
same effect as other judgments. The judgment shall be executed	257
upon the request of the tax commissioner.	258

(6) If the commissioner determines that the commissioner	259
erroneously has refunded a wireless 9-1-1 charge to any person,	260
the commissioner may make an assessment against that person for	261
recovery of the erroneously refunded charge.	262

(7) An assessment under division (E) of this section does not	263
discharge a subscriber's or consumer's liability to reimburse the	264
provider, reseller, or seller for a wireless 9-1-1 charge. If,	265
after the date of service of the audit notice under division	266
(E)(1) of this section, a subscriber or consumer pays a wireless	267
9-1-1 charge for the period covered by the assessment, the payment	268
shall be credited against the assessment.	269

Sec. 709.023. (A) A petition filed under section 709.021 of	270
the Revised Code that requests to follow this section is for the	271
special procedure of annexing land into a municipal corporation	272
when, subject to division (H) of this section, the land also is	273
not to be excluded from the township under section 503.07 of the	274
Revised Code. The owners who sign this petition by their signature	275
expressly waive their right to appeal in law or equity from the	276
board of county commissioners' entry of any resolution under this	277
section, waive any rights they may have to sue on any issue	278
relating to a municipal corporation requiring a buffer as provided	279
in this section, and waive any rights to seek a variance that	280
would relieve or exempt them from that buffer requirement.	281

The petition circulated to collect signatures for the special	282
procedure in this section shall contain in boldface capital	283
letters immediately above the heading of the place for signatures	284
on each part of the petition the following: "WHOEVER SIGNS THIS	285
PETITION EXPRESSLY WAIVES THEIR RIGHT TO APPEAL IN LAW OR EQUITY	286
FROM THE BOARD OF COUNTY COMMISSIONERS' ENTRY OF ANY RESOLUTION	287
PERTAINING TO THIS SPECIAL ANNEXATION PROCEDURE, ALTHOUGH A WRIT	288
OF MANDAMUS MAY BE SOUGHT TO COMPEL THE BOARD TO PERFORM ITS	289
DUTIES REQUIRED BY LAW FOR THIS SPECIAL ANNEXATION PROCEDURE."	290

(B) Upon the filing of the petition in the office of the	291
clerk of the board of county commissioners, the clerk shall cause	292
the petition to be entered upon the board's journal at its next	293
regular session. This entry shall be the first official act of the	294
board on the petition. Within five days after the filing of the	295
petition, the agent for the petitioners shall notify in the manner	296
and form specified in this division the clerk of the legislative	297
authority of the municipal corporation to which annexation is	298
proposed, the fiscal officer of each township any portion of which	299
is included within the territory proposed for annexation, the	300
clerk of the board of county commissioners of each county in which	301
the territory proposed for annexation is located other than the	302
county in which the petition is filed, and the owners of property	303
adjacent to the territory proposed for annexation or adjacent to a	304
road that is adjacent to that territory and located directly	305
across that road from that territory. The notice shall refer to	306
the time and date when the petition was filed and the county in	307
which it was filed and shall have attached or shall be accompanied	308
by a copy of the petition and any attachments or documents	309
accompanying the petition as filed.	310

Notice to a property owner is sufficient if sent by regular	311
United States mail to the tax mailing address listed on the county	312
auditor's records. Notice to the appropriate government officer	313
shall be given by certified mail, return receipt requested, or by	314
causing the notice to be personally served on the officer, with	315
proof of service by affidavit of the person who delivered the	316
notice. Proof of service of the notice on each appropriate	317
government officer shall be filed with the board of county	318
commissioners with which the petition was filed.	319

(C) Within twenty days after the date that the petition is	320
filed, the legislative authority of the municipal corporation to	321
which annexation is proposed shall adopt an ordinance or	322
resolution stating what services the municipal corporation will	323
provide, and an approximate date by which it will provide them, to	324
the territory proposed for annexation, upon annexation. The	325
municipal corporation is entitled in its sole discretion to	326
provide to the territory proposed for annexation, upon annexation,	327
services in addition to the services described in that ordinance	328
or resolution.	329

If the territory proposed for annexation is subject to zoning	330
regulations adopted under either Chapter 303. or 519. of the	331
Revised Code at the time the petition is filed, the legislative	332
authority of the municipal corporation also shall adopt an	333
ordinance or resolution stating that, if the territory is annexed	334
and becomes subject to zoning by the municipal corporation and	335
that municipal zoning permits uses in the annexed territory that	336
the municipal corporation determines are clearly incompatible with	337
the uses permitted under current county or township zoning	338
regulations in the adjacent land remaining within the township	339
from which the territory was annexed, the legislative authority of	340
the municipal corporation will require, in the zoning ordinance	341
permitting the incompatible uses, the owner of the annexed	342
territory to provide a buffer separating the use of the annexed	343
territory and the adjacent land remaining within the township. For	344
the purposes of this section, "buffer" includes open space,	345
landscaping, fences, walls, and other structured elements; streets	346
and street rights-of-way; and bicycle and pedestrian paths and	347
sidewalks.	348

The clerk of the legislative authority of the municipal	349
corporation to which annexation is proposed shall file the	350
ordinances or resolutions adopted under this division with the	351
board of county commissioners within twenty days following the	352
date that the petition is filed. The board shall make these	353
ordinances or resolutions available for public inspection.	354

(D) Within twenty-five days after the date that the petition	355
is filed, the legislative authority of the municipal corporation	356
to which annexation is proposed and each township any portion of	357
which is included within the territory proposed for annexation may	358
adopt and file with the board of county commissioners an ordinance	359
or resolution consenting or objecting to the proposed annexation.	360
An objection to the proposed annexation shall be based solely upon	361
the petition's failure to meet the conditions specified in	362
division (E) of this section.	363

If the municipal corporation and each of those townships	364
timely files an ordinance or resolution consenting to the proposed	365
annexation, the board at its next regular session shall enter upon	366
its journal a resolution granting the proposed annexation. If,	367
instead, the municipal corporation or any of those townships files	368
an ordinance or resolution that objects to the proposed	369
annexation, the board of county commissioners shall proceed as	370
provided in division (E) of this section. Failure of the municipal	371
corporation or any of those townships to timely file an ordinance	372
or resolution consenting or objecting to the proposed annexation	373
shall be deemed to constitute consent by that municipal	374
corporation or township to the proposed annexation.	375

(E) Unless the petition is granted under division (D) of this	376
section, not less than thirty or more than forty-five days after	377
the date that the petition is filed, the board of county	378
commissioners shall review it to determine if each of the	379
following conditions has been met:	380

(1) The petition meets all the requirements set forth in, and	381
was filed in the manner provided in, section 709.021 of the	382
Revised Code.	383

(2) The persons who signed the petition are owners of the	384
real estate located in the territory proposed for annexation and	385
constitute all of the owners of real estate in that territory.	386

(3) The territory proposed for annexation does not exceed	387
five hundred acres.	388

(4) The territory proposed for annexation shares a contiguous	389
boundary with the municipal corporation to which annexation is	390
proposed for a continuous length of at least five per cent of the	391
perimeter of the territory proposed for annexation.	392

(5) The annexation will not create an unincorporated area of	393
the township that is completely surrounded by the territory	394
proposed for annexation.	395

(6) The municipal corporation to which annexation is proposed	396
has agreed to provide to the territory proposed for annexation the	397
services specified in the relevant ordinance or resolution adopted	398
under division (C) of this section.	399

(7) If a street or highway will be divided or segmented by	400
the boundary line between the township and the municipal	401
corporation as to create a road maintenance problem, the municipal	402
corporation to which annexation is proposed has agreed as a	403
condition of the annexation to assume the maintenance of that	404
street or highway or to otherwise correct the problem. As used in	405
this section, "street" or "highway" has the same meaning as in	406
section 4511.01 of the Revised Code.	407

(F) Not less than thirty or more than forty-five days after	408
the date that the petition is filed, if the petition is not	409
granted under division (D) of this section, the board of county	410
commissioners, if it finds that each of the conditions specified	411
in division (E) of this section has been met, shall enter upon its	412
journal a resolution granting the annexation. If the board of	413
county commissioners finds that one or more of the conditions	414
specified in division (E) of this section have not been met, it	415
shall enter upon its journal a resolution that states which of	416
those conditions the board finds have not been met and that denies	417
the petition.	418

(G) If a petition is granted under division (D) or (F) of	419
this section, the clerk of the board of county commissioners shall	420
proceed as provided in division (C)(1) of section 709.033 of the	421
Revised Code, except that no recording or hearing exhibits would	422
be involved. There is no appeal in law or equity from the board's	423
entry of any resolution under this section, but any party may seek	424
a writ of mandamus to compel the board of county commissioners to	425
perform its duties under this section.	426

(H) Notwithstanding anything to the contrary in section	427
503.07 of the Revised Code, unless otherwise provided in an	428
annexation agreement entered into pursuant to section 709.192 of	429
the Revised Code or in a cooperative economic development	430
agreement entered into pursuant to section 701.07 of the Revised	431
Code, territory annexed into a municipal corporation pursuant to	432
this section shall not at any time be excluded from the township	433
under section 503.07 of the Revised Code and, thus, remains	434
subject to the township's real property taxes.	435

(I) Any owner of land that remains within a township and that	436
is adjacent to territory annexed pursuant to this section who is	437
directly affected by the failure of the annexing municipal	438
corporation to enforce compliance with any zoning ordinance it	439
adopts under division (C) of this section requiring the owner of	440
the annexed territory to provide a buffer zone, may commence in	441
the court of common pleas a civil action against that owner to	442
enforce compliance with that buffer requirement whenever the	443
required buffer is not in place before any development of the	444
annexed territory begins.	445

(J) Division (H)(12)(C)(18) of section 718.01 of the Revised	446
Code applies to the compensation paid to persons performing	447
personal services for a political subdivision on property owned by	448
the political subdivision after that property is annexed to a	449
municipal corporation under this section.	450

Sec. 715.013. (A) Except as otherwise expressly authorized by	451
the Revised Code, no municipal corporation shall levy a tax that	452
is the same as or similar to a tax levied under Chapter 322.,	453
3734., 3769., 4123., 4141., 4301., 4303., 4305., 4307., 4309.,	454
5707., 5725., 5726., 5727., 5728., 5729., 5731., 5735., 5736.,	455
5737., 5739., 5741., 5743., 5747., 5749., or 5751. of the Revised	456
Code.	457

(B) This section does not prohibit a municipal corporation	458
from levying an income tax or withholding tax in accordance with	459
Chapter 718. of the Revised Code, or a tax on any of the	460
following:	461

(1) Amounts received for admission to any place;

462

(2) The income of an electric company or combined company, as	463
defined in section 5727.01 of the Revised Code;	464

(3) On and after January 1, 2004, the income of a telephone	465
company, as defined in section 5727.01 of the Revised Code.	466

Sec. 718.01.  Any term used in this chapter that is not	467
otherwise defined in this chapter has the same meaning as when	468
used in a comparable context in laws of the United States relating	469
to federal income taxation or in Title LVII of the Revised Code,	470
unless a different meaning is clearly required. If a term used in	471
this chapter that is not otherwise defined in this chapter is used	472
in a comparable context in both the laws of the United States	473
relating to federal income tax and in Title LVII of the Revised	474
Code and the use is not consistent, then the use of the term in	475
the laws of the United States relating to federal income tax shall	476
control over the use of the term in Title LVII of the Revised	477
Code.	478

As used in this chapter:

479

(A)(1) "Municipal taxable income" means the following:

480

(a) For a person other than an individual, income reduced by	481
exempt income to the extent otherwise included in income and then,	482
as applicable, apportioned or sitused to the municipal corporation	483
under section 718.02 of the Revised Code, and further reduced by	484
any pre-2017 net operating loss carryforward available to the	485
person for the municipal corporation.	486

(b)(i) For an individual who is a resident of a municipal	487
corporation other than a qualified municipal corporation, income	488
reduced by exempt income to the extent otherwise included in	489
income, then reduced as provided in division (A)(2) of this	490
section, and further reduced by any pre-2017 net operating loss	491
carryforward available to the individual for the municipal	492
corporation.	493

(ii) For an individual who is a resident of a qualified	494
municipal corporation, Ohio adjusted gross income reduced by	495
income exempted, and increased by deductions excluded, by the	496
qualified municipal corporation from the qualified municipal	497
corporation's tax on or before December 31, 2013. If a qualified	498
municipal corporation, on or before December 31, 2013, exempts	499
income earned by individuals who are not residents of the	500
qualified municipal corporation and net profit of persons that are	501
not wholly located within the qualified municipal corporation,	502
such individual or person shall have no municipal taxable income	503
for the purposes of the tax levied by the qualified municipal	504
corporation and may be exempted by the qualified municipal	505
corporation from the requirements of section 718.03 of the Revised	506
Code.	507

(c) For an individual who is a nonresident of a municipal	508
corporation, income reduced by exempt income to the extent	509
otherwise included in income and then, as applicable, apportioned	510
or sitused to the municipal corporation under section 718.02 of	511
the Revised Code, then reduced as provided in division (A)(2) of	512
this section, and further reduced by any pre-2017 net operating	513
loss carryforward available to the individual for the municipal	514
corporation.	515

(2) In computing the municipal taxable income of a taxpayer	516
who is an individual, the taxpayer may subtract, as provided in	517
division (A)(1)(b)(i) or (c) of this section, the amount of the	518
individual's employee business expenses reported on the	519
individual's form 2106 that the individual deducted for federal	520
income tax purposes for the taxable year, subject to the	521
limitation imposed by section 67 of the Internal Revenue Code. For	522
the municipal corporation in which the taxpayer is a resident, the	523
taxpayer may deduct all such expenses allowed for federal income	524
tax purposes. For a municipal corporation in which the taxpayer is	525
not a resident, the taxpayer may deduct such expenses only to the	526
extent the expenses are related to the taxpayer's performance of	527
personal services in that nonresident municipal corporation.	528

(B) "Income" means the following:

529

(1)(a) For residents, all income, salaries, qualifying wages,	530
commissions, and other compensation from whatever source earned or	531
received by the resident, including the resident's distributive	532
share of the net profit of pass-through entities owned directly or	533
indirectly by the resident and any net profit of the resident.	534

(b) For the purposes of division (B)(1)(a) of this section:

535

(i) Any net operating loss of the resident incurred in the	536
taxable year and the resident's distributive share of any net	537
operating loss generated in the same taxable year and attributable	538
to the resident's ownership interest in a pass-through entity	539
shall be allowed as a deduction, for that taxable year and the	540
following five taxable years, against any other net profit of the	541
resident or the resident's distributive share of any net profit	542
attributable to the resident's ownership interest in a	543
pass-through entity until fully utilized, subject to division	544
(B)(1)(d) of this section;	545

(ii) The resident's distributive share of the net profit of	546
each pass-through entity owned directly or indirectly by the	547
resident shall be calculated without regard to any net operating	548
loss that is carried forward by that entity from a prior taxable	549
year and applied to reduce the entity's net profit for the current	550
taxable year.	551

(c) Division (B)(1)(b) of this section does not apply with	552
respect to any net profit or net operating loss attributable to an	553
ownership interest in an S corporation unless shareholders'	554
distributive shares of net profits from S corporations are subject	555
to tax in the municipal corporation as provided in division	556
(C)(14)(b) or (c) of this section.	557

(d) Any amount of a net operating loss used to reduce a	558
taxpayer's net profit for a taxable year shall reduce the amount	559
of net operating loss that may be carried forward to any	560
subsequent year for use by that taxpayer. In no event shall the	561
cumulative deductions for all taxable years with respect to a	562
taxpayer's net operating loss exceed the original amount of that	563
net operating loss available to that taxpayer.	564

(2) In the case of nonresidents, all income, salaries,	565
qualifying wages, commissions, and other compensation from	566
whatever source earned or received by the nonresident for work	567
done, services performed or rendered, or activities conducted in	568
the municipal corporation, including any net profit of the	569
nonresident, but excluding the nonresident's distributive share of	570
the net profit or loss of only pass-through entities owned	571
directly or indirectly by the nonresident.	572

(3) For taxpayers that are not individuals, net profit of the	573
taxpayer;	574

(4) Lottery, sweepstakes, gambling and sports winnings,	575
winnings from games of chance, and prizes and awards. If the	576
taxpayer is a professional gambler for federal income tax	577
purposes, the taxpayer may deduct related wagering losses and	578
expenses to the extent authorized under the Internal Revenue Code	579
and claimed against such winnings.	580

(C) "Exempt income" means all of the following:

581

(1) The military pay or allowances of members of the armed	582
forces of the United States or members of their reserve	583
components, including the national guard of any state;	584

(2)(a) Except as provided in division (C)(2)(b) of this	585
section, intangible income;	586

(b) A municipal corporation that taxed any type of intangible	587
income on March 29, 1988, pursuant to Section 3 of S.B. 238 of the	588
116th general assembly, may continue to tax that type of income if	589
a majority of the electors of the municipal corporation voting on	590
the question of whether to permit the taxation of that type of	591
intangible income after 1988 voted in favor thereof at an election	592
held on November 8, 1988.	593

(3) Social security benefits, railroad retirement benefits,	594
unemployment compensation, pensions, retirement benefit payments,	595
payments from annuities, and similar payments made to an employee	596
or to the beneficiary of an employee under a retirement program or	597
plan, disability payments received from private industry or local,	598
state, or federal governments or from charitable, religious or	599
educational organizations, and the proceeds of sickness, accident,	600
or liability insurance policies. As used in division (C)(3) of	601
this section, "unemployment compensation" does not include	602
supplemental unemployment compensation described in section	603
3402(o)(2) of the Internal Revenue Code.	604

(4) The income of religious, fraternal, charitable,	605
scientific, literary, or educational institutions to the extent	606
such income is derived from tax-exempt real estate, tax-exempt	607
tangible or intangible property, or tax-exempt activities.	608

(5) Compensation paid under section 3501.28 or 3501.36 of the	609
Revised Code to a person serving as a precinct election official	610
to the extent that such compensation does not exceed one thousand	611
dollars for the taxable year. Such compensation in excess of one	612
thousand dollars for the taxable year may be subject to taxation	613
by a municipal corporation. A municipal corporation shall not	614
require the payer of such compensation to withhold any tax from	615
that compensation.	616

(6) Dues, contributions, and similar payments received by	617
charitable, religious, educational, or literary organizations or	618
labor unions, lodges, and similar organizations;	619

(7) Alimony and child support received;

620

(8) Compensation for personal injuries or for damages to	621
property from insurance proceeds or otherwise, excluding	622
compensation paid for lost salaries or wages or compensation from	623
punitive damages;	624

(9) Income of a public utility when that public utility is	625
subject to the tax levied under section 5727.24 or 5727.30 of the	626
Revised Code. Division (C)(9) of this section does not apply for	627
purposes of Chapter 5745. of the Revised Code.	628

(10) Gains from involuntary conversions, interest on federal	629
obligations, items of income subject to a tax levied by the state	630
and that a municipal corporation is specifically prohibited by law	631
from taxing, and income of a decedent's estate during the period	632
of administration except such income from the operation of a trade	633
or business;	634

(11) Compensation or allowances excluded from federal gross	635
income under section 107 of the Internal Revenue Code;	636

(12) Employee compensation that is not qualifying wages as	637
defined in division (R) of this section;	638

(13) Compensation paid to a person employed within the	639
boundaries of a United States air force base under the	640
jurisdiction of the United States air force that is used for the	641
housing of members of the United States air force and is a center	642
for air force operations, unless the person is subject to taxation	643
because of residence or domicile. If the compensation is subject	644
to taxation because of residence or domicile, tax on such income	645
shall be payable only to the municipal corporation of residence or	646
domicile.	647

(14)(a) Except as provided in division (C)(14)(b) or (c) of	648
this section, an S corporation shareholder's distributive share of	649
net profits of the S corporation, other than any part of the	650
distributive share of net profits that represents wages as defined	651
in section 3121(a) of the Internal Revenue Code or net earnings	652
from self-employment as defined in section 1402(a) of the Internal	653
Revenue Code.	654

(b) If, pursuant to division (H) of former section 718.01 of	655
the Revised Code as it existed before March 11, 2004, a majority	656
of the electors of a municipal corporation voted in favor of the	657
question at an election held on November 4, 2003, the municipal	658
corporation may continue after 2002 to tax an S corporation	659
shareholder's distributive share of net profits of an S	660
corporation.	661

(c) If, on December 6, 2002, a municipal corporation was	662
imposing, assessing, and collecting a tax on an S corporation	663
shareholder's distributive share of net profits of the S	664
corporation to the extent the distributive share would be	665
allocated or apportioned to this state under divisions (B)(1) and	666
(2) of section 5733.05 of the Revised Code if the S corporation	667
were a corporation subject to taxes imposed under Chapter 5733. of	668
the Revised Code, the municipal corporation may continue to impose	669
the tax on such distributive shares to the extent such shares	670
would be so allocated or apportioned to this state only until	671
December 31, 2004, unless a majority of the electors of the	672
municipal corporation voting on the question of continuing to tax	673
such shares after that date voted in favor of that question at an	674
election held November 2, 2004. If a majority of those electors	675
voted in favor of the question, the municipal corporation may	676
continue after December 31, 2004, to impose the tax on such	677
distributive shares only to the extent such shares would be so	678
allocated or apportioned to this state.	679

(d) A municipal corporation shall be deemed to have elected	680
to tax S corporation shareholders' distributive shares of net	681
profits of the S corporation in the hands of the shareholders if a	682
majority of the electors of a municipal corporation voted in favor	683
of a question at an election held under division (C)(14)(b) or (c)	684
of this section. The municipal corporation shall specify by	685
resolution or ordinance that the tax applies to the distributive	686
share of a shareholder of an S corporation in the hands of the	687
shareholder of the S corporation.	688

(15) To the extent authorized under a resolution or ordinance	689
adopted by a municipal corporation before January 1, 2016, all or	690
a portion of the income of individuals or a class of individuals	691
under eighteen years of age.	692

(16)(a) Except as provided in divisions (C)(16)(b), (c), and	693
(d) of this section, qualifying wages described in division (B)(1)	694
or (E) of section 718.011 of the Revised Code to the extent the	695
qualifying wages are not subject to withholding for the municipal	696
corporation under either of those divisions.	697

(b) The exemption provided in division (C)(16)(a) of this	698
section does not apply with respect to the municipal corporation	699
in which the employee resided at the time the employee earned the	700
qualifying wages.	701

(c) The exemption provided in division (C)(16)(a) of this	702
section does not apply to qualifying wages that an employer elects	703
to withhold under division (D)(2) of section 718.011 of the	704
Revised Code.	705

(d) The exemption provided in division (C)(16)(a) of this	706
section does not apply to qualifying wages if both of the	707
following conditions apply:	708

(i) For qualifying wages described in division (B)(1) of	709
section 718.011 of the Revised Code, the employee's employer	710
withholds and remits tax on the qualifying wages to the municipal	711
corporation in which the employee's principal place of work is	712
situated, or, for qualifying wages described in division (E) of	713
section 718.011 of the Revised Code, the employee's employer	714
withholds and remits tax on the qualifying wages to the municipal	715
corporation in which the employer's fixed location is located;	716

(ii) The employee receives a refund of the tax described in	717
division (C)(16)(d)(i) of this section on the basis of the	718
employee not performing services in that municipal corporation.	719

(17)(a) Except as provided in division (C)(17)(b) or (c) of	720
this section, compensation that is not qualifying wages paid to a	721
nonresident individual for personal services performed in the	722
municipal corporation on not more than twenty days in a taxable	723
year.	724

(b) The exemption provided in division (C)(17)(a) of this	725
section does not apply under either of the following	726
circumstances:	727

(i) The individual's base of operation is located in the	728
municipal corporation.	729

(ii) The individual is a professional athlete, professional	730
entertainer, or public figure, and the compensation is paid for	731
the performance of services in the individual's capacity as a	732
professional athlete, professional entertainer, or public figure.	733
For purposes of division (C)(17)(b)(ii) of this section,	734
"professional athlete," "professional entertainer," and "public	735
figure" have the same meanings as in section 718.011 of the	736
Revised Code.	737

(c) Compensation to which division (C)(17) of this section	738
applies shall be treated as earned or received at the individual's	739
base of operation. If the individual does not have a base of	740
operation, the compensation shall be treated as earned or received	741
where the individual is domiciled.	742

(d) For purposes of division (C)(17) of this section, "base	743
of operation" means the location where an individual owns or rents	744
an office, storefront, or similar facility to which the individual	745
regularly reports and at which the individual regularly performs	746
personal services for compensation.	747

(18) Compensation paid to a person for personal services	748
performed for a political subdivision on property owned by the	749
political subdivision, regardless of whether the compensation is	750
received by an employee of the subdivision or another person	751
performing services for the subdivision under a contract with the	752
subdivision, if the property on which services are performed is	753
annexed to a municipal corporation pursuant to section 709.023 of	754
the Revised Code on or after March 27, 2013, unless the person is	755
subject to such taxation because of residence. If the compensation	756
is subject to taxation because of residence, municipal income tax	757
shall be payable only to the municipal corporation of residence.	758

(19) Income the taxation of which is prohibited by the	759
constitution or laws of the United States.	760

Any item of income that is exempt income of a pass-through	761
entity under division (C) of this section is exempt income of each	762
owner of the pass-through entity to the extent of that owner's	763
distributive or proportionate share of that item of the entity's	764
income.	765

(D)(1) "Net profit" for a person other than an individual	766
means adjusted federal taxable income.	767

(2) "Net profit" for a person who is an individual means the	768
individual's net profit required to be reported on schedule C,	769
schedule E, or schedule F reduced by any net operating loss	770
carried forward. For the purposes of division (D)(2) of this	771
section, the net operating loss carried forward shall be	772
calculated and deducted in the same manner as provided in division	773
(E)(8) of this section.	774

(3) For the purposes of this chapter, and notwithstanding	775
division (D)(1) of this section, net profit of a disregarded	776
entity shall not be taxable as against that disregarded entity,	777
but shall instead be included in the net profit of the owner of	778
the disregarded entity.	779

(E) "Adjusted federal taxable income," for a person required	780
to file as a C corporation means a C corporation's federal taxable	781
income before net operating losses and special deductions as	782
determined under the Internal Revenue Code, adjusted as follows:	783

(1) Deduct intangible income to the extent included in	784
federal taxable income. The deduction shall be allowed regardless	785
of whether the intangible income relates to assets used in a trade	786
or business or assets held for the production of income.	787

(2) Add an amount equal to five per cent of intangible income	788
deducted under division (E)(1) of this section, but excluding that	789
portion of intangible income directly related to the sale,	790
exchange, or other disposition of property described in section	791
1221 of the Internal Revenue Code;	792

(3) Add any losses allowed as a deduction in the computation	793
of federal taxable income if the losses directly relate to the	794
sale, exchange, or other disposition of an asset described in	795
section 1221 or 1231 of the Internal Revenue Code;	796

(4)(a) Except as provided in division (E)(4)(b) of this	797
section, deduct income and gain included in federal taxable income	798
to the extent the income and gain directly relate to the sale,	799
exchange, or other disposition of an asset described in section	800
1221 or 1231 of the Internal Revenue Code;	801

(b) Division (E)(4)(a) of this section does not apply to the	802
extent the income or gain is income or gain described in section	803
1245 or 1250 of the Internal Revenue Code.	804

(5) Add taxes on or measured by net income allowed as a	805
deduction in the computation of federal taxable income;	806

(6) In the case of a real estate investment trust or	807
regulated investment company, add all amounts with respect to	808
dividends to, distributions to, or amounts set aside for or	809
credited to the benefit of investors and allowed as a deduction in	810
the computation of federal taxable income;	811

(7) Deduct, to the extent not otherwise deducted or excluded	812
in computing federal taxable income, any income derived from a	813
transfer agreement or from the enterprise transferred under that	814
agreement under section 4313.02 of the Revised Code;	815

(8)(a) Except as limited by divisions (E)(8)(b), (c), and (d)	816
of this section, deduct any net operating loss incurred by the	817
person in a taxable year beginning on or after January 1, 2017.	818

The amount of such net operating loss shall be deducted from	819
net profit that is reduced by exempt income to the extent	820
necessary to reduce municipal taxable income to zero, with any	821
remaining unused portion of the net operating loss carried forward	822
to not more than five consecutive taxable years following the	823
taxable year in which the loss was incurred, but in no case for	824
more years than necessary for the deduction to be fully utilized.	825

(b) No person shall use the deduction allowed by division	826
(E)(8) of this section to offset qualifying wages.	827

(c)(i) For taxable years beginning in 2018, 2019, 2020, 2021,	828
or 2022, a person may not deduct, for purposes of an income tax	829
levied by a municipal corporation that levies an income tax before	830
January 1, 2016, more than fifty per cent of the amount of the	831
deduction otherwise allowed by division (E)(8)(a) of this section.	832

(ii) For taxable years beginning in 2023 or thereafter, a	833
person may deduct, for purposes of an income tax levied by a	834
municipal corporation that levies an income tax before January 1,	835
2016, the full amount allowed by division (E)(8)(a) of this	836
section.	837

(d) Any pre-2017 net operating loss carryforward deduction	838
that is available must be utilized before a taxpayer may deduct	839
any amount pursuant to division (E)(8) of this section.	840

(e) Nothing in divisions (E)(8)(c)(i) and (ii) of this	841
section precludes a person from carrying forward, for the period	842
otherwise permitted under division (E)(8)(a) of this section, any	843
amount of net operating loss that was not fully utilized by	844
operation of divisions (E)(8)(c)(i) and (ii) of this section.	845

(9) Deduct any net profit of a pass-through entity owned	846
directly or indirectly by the taxpayer and included in the	847
taxpayer's federal taxable income unless an affiliated group of	848
corporations includes that net profit in the group's federal	849
taxable income in accordance with division (E)(3)(b) of section	850
718.06 of the Revised Code.	851

(10) Add any loss incurred by a pass-through entity owned	852
directly or indirectly by the taxpayer and included in the	853
taxpayer's federal taxable income unless an affiliated group of	854
corporations includes that loss in the group's federal taxable	855
income in accordance with division (E)(3)(b) of section 718.06 of	856
the Revised Code.	857

If the taxpayer is not a C corporation, is not a disregarded	858
entity, and is not an individual, the taxpayer shall compute	859
adjusted federal taxable income under this section as if the	860
taxpayer were a C corporation, except guaranteed payments and	861
other similar amounts paid or accrued to a partner, former	862
partner, shareholder, former shareholder, member, or former member	863
shall not be allowed as a deductible expense unless such payments	864
are in consideration for the use of capital and treated as payment	865
of interest under section 469 of the Internal Revenue Code or	866
United States treasury regulations. Amounts paid or accrued to a	867
qualified self-employed retirement plan with respect to a partner,	868
former partner, shareholder, former shareholder, member, or former	869
member of the taxpayer, amounts paid or accrued to or for health	870
insurance for a partner, former partner, shareholder, former	871
shareholder, member, or former member, and amounts paid or accrued	872
to or for life insurance for a partner, former partner,	873
shareholder, former shareholder, member, or former member shall	874
not be allowed as a deduction.	875

Nothing in division (E) of this section shall be construed as	876
allowing the taxpayer to add or deduct any amount more than once	877
or shall be construed as allowing any taxpayer to deduct any	878
amount paid to or accrued for purposes of federal self-employment	879
tax.	880

(F) "Schedule C" means internal revenue service schedule C	881
(form 1040) filed by a taxpayer pursuant to the Internal Revenue	882
Code.	883

(G) "Schedule E" means internal revenue service schedule E	884
(form 1040) filed by a taxpayer pursuant to the Internal Revenue	885
Code.	886

(H) "Schedule F" means internal revenue service schedule F	887
(form 1040) filed by a taxpayer pursuant to the Internal Revenue	888
Code.	889

(I) "Internal Revenue Code" has the same meaning as in	890
section 5747.01 of the Revised Code.	891

(J) "Resident" means an individual who is domiciled in the	892
municipal corporation as determined under section 718.012 of the	893
Revised Code.	894

(K) "Nonresident" means an individual that is not a resident.

895

(L)(1) "Taxpayer" means a person subject to a tax levied on	896
income by a municipal corporation in accordance with this chapter.	897
"Taxpayer" does not include a grantor trust or, except as provided	898
in division (L)(2)(a) of this section, a disregarded entity.	899

(2)(a) A single member limited liability company that is a	900
disregarded entity for federal tax purposes may be a separate	901
taxpayer from its single member in all Ohio municipal corporations	902
in which it either filed as a separate taxpayer or did not file	903
for its taxable year ending in 2003, if all of the following	904
conditions are met:	905

(i) The limited liability company's single member is also a	906
limited liability company.	907

(ii) The limited liability company and its single member were	908
formed and doing business in one or more Ohio municipal	909
corporations for at least five years before January 1, 2004.	910

(iii) Not later than December 31, 2004, the limited liability	911
company and its single member each made an election to be treated	912
as a separate taxpayer under division (L) of this section as this	913
section existed on December 31, 2004.	914

(iv) The limited liability company was not formed for the	915
purpose of evading or reducing Ohio municipal corporation income	916
tax liability of the limited liability company or its single	917
member.	918

(v) The Ohio municipal corporation that was the primary place	919
of business of the sole member of the limited liability company	920
consented to the election.	921

(b) For purposes of division (L)(2)(a)(v) of this section, a	922
municipal corporation was the primary place of business of a	923
limited liability company if, for the limited liability company's	924
taxable year ending in 2003, its income tax liability was greater	925
in that municipal corporation than in any other municipal	926
corporation in Ohio, and that tax liability to that municipal	927
corporation for its taxable year ending in 2003 was at least four	928
hundred thousand dollars.	929

(M) "Person" includes individuals, firms, companies, joint	930
stock companies, business trusts, estates, trusts, partnerships,	931
limited liability partnerships, limited liability companies,	932
associations, C corporations, S corporations, governmental	933
entities, and any other entity.	934

(N) "Pass-through entity" means a partnership not treated as	935
an association taxable as a C corporation for federal income tax	936
purposes, a limited liability company not treated as an	937
association taxable as a C corporation for federal income tax	938
purposes, an S corporation, or any other class of entity from	939
which the income or profits of the entity are given pass-through	940
treatment for federal income tax purposes. "Pass-through entity"	941
does not include a trust, estate, grantor of a grantor trust, or	942
disregarded entity.	943

(O) "S corporation" means a person that has made an election	944
under subchapter S of Chapter 1 of Subtitle A of the Internal	945
Revenue Code for its taxable year.	946

(P) "Single member limited liability company" means a limited	947
liability company that has one direct member.	948

(Q) "Limited liability company" means a limited liability	949
company formed under Chapter 1705. of the Revised Code or under	950
the laws of another state.	951

(R) "Qualifying wages" means wages, as defined in section	952
3121(a) of the Internal Revenue Code, without regard to any wage	953
limitations, adjusted as follows:	954

(1) Deduct the following amounts:

955

(a) Any amount included in wages if the amount constitutes	956
compensation attributable to a plan or program described in	957
section 125 of the Internal Revenue Code.	958

(b) Any amount included in wages if the amount constitutes	959
payment on account of a disability related to sickness or an	960
accident paid by a party unrelated to the employer, agent of an	961
employer, or other payer.	962

(c) Any amount attributable to a nonqualified deferred	963
compensation plan or program described in section 3121(v)(2)(C) of	964
the Internal Revenue Code if the compensation is included in wages	965
and the municipal corporation has, by resolution or ordinance	966
adopted before January 1, 2016, exempted the amount from	967
withholding and tax.	968

(d) Any amount included in wages if the amount arises from	969
the sale, exchange, or other disposition of a stock option, the	970
exercise of a stock option, or the sale, exchange, or other	971
disposition of stock purchased under a stock option and the	972
municipal corporation has, by resolution or ordinance adopted	973
before January 1, 2016, exempted the amount from withholding and	974
tax.	975

(e) Any amount included in wages that is exempt income.

976

(2) Add the following amounts:

977

(a) Any amount not included in wages solely because the	978
employee was employed by the employer before April 1, 1986.	979

(b) Any amount not included in wages because the amount	980
arises from the sale, exchange, or other disposition of a stock	981
option, the exercise of a stock option, or the sale, exchange, or	982
other disposition of stock purchased under a stock option and the	983
municipal corporation has not, by resolution or ordinance,	984
exempted the amount from withholding and tax adopted before	985
January 1, 2016. Division (R)(2)(b) of this section applies only	986
to those amounts constituting ordinary income.	987

(c) Any amount not included in wages if the amount is an	988
amount described in section 401(k), 403(b), or 457 of the Internal	989
Revenue Code. Division (R)(2)(c) of this section applies only to	990
employee contributions and employee deferrals.	991

(d) Any amount that is supplemental unemployment compensation	992
benefits described in section 3402(o)(2) of the Internal Revenue	993
Code and not included in wages.	994

(e) Any amount received that is treated as self-employment	995
income for federal tax purposes in accordance with section	996
1402(a)(8) of the Internal Revenue Code.	997

(f) Any amount not included in wages if all of the following	998
apply:	999

(i) For the taxable year the amount is employee compensation	1000
that is included in the taxpayer's gross income for federal income	1001
tax purposes;	1002

(ii) For no preceding taxable year did the amount constitute	1003
wages as defined in section 3121(a) of the Internal Revenue Code;	1004

(iii) For no succeeding taxable year will the amount	1005
constitute wages; and	1006

(iv) For any taxable year the amount has not otherwise been	1007
added to wages pursuant to either division (R)(2) of this section	1008
or section 718.03 of the Revised Code, as that section existed	1009
before the effective date of H.B. 5 of the 130th general assembly.	1010

(S) "Intangible income" means income of any of the following	1011
types: income yield, interest, capital gains, dividends, or other	1012
income arising from the ownership, sale, exchange, or other	1013
disposition of intangible property including, but not limited to,	1014
investments, deposits, money, or credits as those terms are	1015
defined in Chapter 5701. of the Revised Code, and patents,	1016
copyrights, trademarks, tradenames, investments in real estate	1017
investment trusts, investments in regulated investment companies,	1018
and appreciation on deferred compensation. "Intangible income"	1019
does not include prizes, awards, or other income associated with	1020
any lottery winnings, gambling winnings, or other similar games of	1021
chance.	1022

(T) "Taxable year" means the corresponding tax reporting	1023
period as prescribed for the taxpayer under the Internal Revenue	1024
Code.	1025

(U) "Tax administrator" means the individual charged with	1026
direct responsibility for administration of an income tax levied	1027
by a municipal corporation in accordance with this chapter, and	1028
also includes the following:	1029

(1) A municipal corporation acting as the agent of another	1030
municipal corporation;	1031

(2) A person retained by a municipal corporation to	1032
administer a tax levied by the municipal corporation, but only if	1033
the municipal corporation does not compensate the person in whole	1034
or in part on a contingency basis;	1035

(3) The central collection agency or the regional income tax	1036
agency or their successors in interest, or another entity	1037
organized to perform functions similar to those performed by the	1038
central collection agency and the regional income tax agency.	1039

(V) "Employer" means a person that is an employer for federal	1040
income tax purposes.	1041

(W) "Employee" means an individual who is an employee for	1042
federal income tax purposes.	1043

(X) "Other payer" means any person, other than an	1044
individual's employer or the employer's agent, that pays an	1045
individual any amount included in the federal gross income of the	1046
individual. "Other payer" includes casino operators and video	1047
lottery terminal sales agents.	1048

(Y) "Calendar quarter" means the three-month period ending on	1049
the last day of March, June, September, or December.	1050

(Z) "Form 2106" means internal revenue service form 2106	1051
filed by a taxpayer pursuant to the Internal Revenue Code.	1052

(AA) "Municipal corporation" includes a joint economic	1053
development district or joint economic development zone that	1054
levies an income tax under section 715.691, 715.70, 715.71, or	1055
715.74 of the Revised Code.	1056

(BB) "Disregarded entity" means a single member limited	1057
liability company, a qualifying subchapter S subsidiary, or	1058
another entity if the company, subsidiary, or entity is a	1059
disregarded entity for federal income tax purposes.	1060

(CC) "Generic form" means an electronic or paper form that is	1061
not prescribed by a particular municipal corporation and that is	1062
designed for reporting taxes withheld by an employer, agent of an	1063
employer, or other payer, estimated municipal income taxes, or	1064
annual municipal income tax liability or for filing a refund	1065
claim.	1066

(DD) "Tax return preparer" means any individual described in	1067
section 7701(a)(36) of the Internal Revenue Code and 26 C.F.R.	1068
301.7701-15.	1069

(EE) "Ohio business gateway" means the online computer	1070
network system, created under section 125.30 of the Revised Code,	1071
that allows persons to electronically file business reply forms	1072
with state agencies and includes any successor electronic filing	1073
and payment system.	1074

(FF) "Local board of tax review" and "board of tax review"	1075
mean the entity created under section 718.11 of the Revised Code.	1076

(GG) "Net operating loss" means a loss incurred by a person	1077
in the operation of a trade or business. "Net operating loss" does	1078
not include unutilized losses resulting from basis limitations,	1079
at-risk limitations, or passive activity loss limitations.	1080

(HH) "Casino operator" and "casino facility" have the same	1081
meanings as in section 3772.01 of the Revised Code.	1082

(II) "Video lottery terminal" has the same meaning as in	1083
section 3770.21 of the Revised Code.	1084

(JJ) "Video lottery terminal sales agent" means a lottery	1085
sales agent licensed under Chapter 3770. of the Revised Code to	1086
conduct video lottery terminals on behalf of the state pursuant to	1087
section 3770.21 of the Revised Code.	1088

(KK) "Postal service" means the United States postal service.

1089

(LL) "Certified mail," "express mail," "United States mail,"	1090
"postal service," and similar terms include any delivery service	1091
authorized pursuant to section 5703.056 of the Revised Code.	1092

(MM) "Postmark date," "date of postmark," and similar terms	1093
include the date recorded and marked in the manner described in	1094
division (B)(3) of section 5703.056 of the Revised Code.	1095

(NN) "Related member" means a person that, with respect to	1096
the taxpayer during all or any portion of the taxable year, is	1097
either a related entity, a component member as defined in section	1098
1563(b) of the Internal Revenue Code, or a person to or from whom	1099
there is attribution of stock ownership in accordance with section	1100
1563(e) of the Internal Revenue Code except, for purposes of	1101
determining whether a person is a related member under this	1102
division, "twenty per cent" shall be substituted for "5 percent"	1103
wherever "5 percent" appears in section 1563(e) of the Internal	1104
Revenue Code.	1105

(OO) "Related entity" means any of the following:

1106

(1) An individual stockholder, or a member of the	1107
stockholder's family enumerated in section 318 of the Internal	1108
Revenue Code, if the stockholder and the members of the	1109
stockholder's family own directly, indirectly, beneficially, or	1110
constructively, in the aggregate, at least fifty per cent of the	1111
value of the taxpayer's outstanding stock;	1112

(2) A stockholder, or a stockholder's partnership, estate,	1113
trust, or corporation, if the stockholder and the stockholder's	1114
partnerships, estates, trusts, or corporations own directly,	1115
indirectly, beneficially, or constructively, in the aggregate, at	1116
least fifty per cent of the value of the taxpayer's outstanding	1117
stock;	1118

(3) A corporation, or a party related to the corporation in a	1119
manner that would require an attribution of stock from the	1120
corporation to the party or from the party to the corporation	1121
under division (OO)(4) of this section, provided the taxpayer owns	1122
directly, indirectly, beneficially, or constructively, at least	1123
fifty per cent of the value of the corporation's outstanding	1124
stock;	1125

(4) The attribution rules described in section 318 of the	1126
Internal Revenue Code apply for the purpose of determining whether	1127
the ownership requirements in divisions (OO)(1) to (3) of this	1128
section have been met.	1129

(PP)(1) "Written determination by the tax administrator"	1130
means a written ruling by a tax administrator regarding the	1131
taxpayer's municipal income tax liability, including tax, penalty,	1132
interest, or any combination thereof, to the municipal corporation	1133
that commences the person's time limitation for making an appeal	1134
to the local board of tax review pursuant to section 718.11 of the	1135
Revised Code and that has "written determination" printed in all	1136
capital letters in a font size no smaller than eighteen point at	1137
the top of the first page of the written ruling.	1138

(2) "Written determination by the tax administrator" does not	1139
include an informal notice denying a request for refund issued	1140
under division (B)(3) of section 718.19 of the Revised Code, a	1141
billing statement notifying a taxpayer of current or past-due	1142
balances owed to the municipal corporation, a tax administrator's	1143
request for additional information, a notification to the taxpayer	1144
of mathematical errors, or a tax administrator's other written	1145
correspondence to a person or taxpayer that does meet the criteria	1146
prescribed by division (PP)(1) of this section.	1147

(QQ) "Taxpayers' rights and responsibilities" means the	1148
rights provided to taxpayers in sections 718.11, 718.12, 718.19,	1149
718.23, 718.36, 718.37, 718.38, 5717.011, and 5717.03 of the	1150
Revised Code and the responsibilities of taxpayers to file,	1151
report, withhold, remit, and pay municipal income tax and	1152
otherwise comply with Chapter 718. of the Revised Code and	1153
resolutions, ordinances, and rules adopted by a municipal	1154
corporation for the imposition and administration of a municipal	1155
income tax.	1156

(RR) "Qualified municipal corporation" means a municipal	1157
corporation that, by resolution or ordinance adopted on or before	1158
December 31, 2011, adopted Ohio adjusted gross income, as defined	1159
by section 5747.01 of the Revised Code, as the income subject to	1160
tax for the purposes of imposing a municipal income tax.	1161

(SS)(1) "Pre-2017 net operating loss carryforward" means any	1162
net operating loss incurred in a taxable year beginning before	1163
January 1, 2017, to the extent such loss was permitted, by a	1164
resolution or ordinance of the municipal corporation that was	1165
adopted by the municipal corporation before January 1, 2016, to be	1166
carried forward and utilized to offset income or net profit	1167
generated in such municipal corporation in future taxable years.	1168

(2) For the purpose of calculating municipal taxable income,	1169
any pre-2017 net operating loss carryforward may be carried	1170
forward to any taxable year, including taxable years beginning in	1171
2017 or thereafter, for the number of taxable years provided in	1172
the resolution or ordinance or until fully utilized, whichever is	1173
earlier.	1174

(TT) "Small employer" means any employer that had total	1175
revenue of less than five hundred thousand dollars during the	1176
preceding taxable year. For purposes of this division, "total	1177
revenue" means receipts of any type or kind, including, but not	1178
limited to, sales receipts; payments; rents; profits; gains,	1179
dividends, and other investment income; compensation; commissions;	1180
premiums; money; property; grants; contributions; donations;	1181
gifts; program service revenue; patient service revenue; premiums;	1182
fees, including premium fees and service fees; tuition payments;	1183
unrelated business revenue; reimbursements; any type of payment	1184
from a governmental unit, including grants and other allocations;	1185
and any other similar receipts reported for federal income tax	1186
purposes or under generally accepted accounting principles. "Small	1187
employer" does not include the federal government; any state	1188
government, including any state agency or instrumentality; any	1189
political subdivision; or any entity treated as a government for	1190
financial accounting and reporting purposes.	1191

(UU) "Audit" means the examination of a person or the	1192
inspection of the books, records, memoranda, or accounts of a	1193
person for the purpose of determining liability for a municipal	1194
income tax.	1195

Sec. 718.011.  (A) As used in this section:

1196

(1) "Employer" includes a person that is a related member to	1197
or of an employer.	1198

(2) "Professional athlete" means an athlete who performs	1199
services in a professional athletic event for wages or other	1200
remuneration.	1201

(3) "Professional entertainer" means a person who performs	1202
services in the professional performing arts for wages or other	1203
remuneration on a per-event basis.	1204

(4) "Public figure" means a person of prominence who performs	1205
services at discrete events, such as speeches, public appearances,	1206
or similar events, for wages or other remuneration on a per-event	1207
basis.	1208

(5) "Fixed location" means a permanent place of doing	1209
business in this state, such as an office, warehouse, storefront,	1210
or similar location owned or controlled by an employer.	1211

(6) "Worksite location" means a construction site or other	1212
temporary worksite in this state at which the employer provides	1213
services for more than twenty days during the calendar year.	1214
"Worksite location" does not include the home of an employee.	1215

(7) "Principal place of work" means the fixed location to	1216
which an employee is required to report for employment duties on a	1217
regular and ordinary basis. If the employee is not required to	1218
report for employment duties on a regular and ordinary basis to a	1219
fixed location, "principal place of work" means the worksite	1220
location in this state to which the employee is required to report	1221
for employment duties on a regular and ordinary basis. If the	1222
employee is not required to report for employment duties on a	1223
regular and ordinary basis to a fixed location or worksite	1224
location, "principal place of work" means the location in this	1225
state at which the employee spends the greatest number of days in	1226
a calendar year performing services for or on behalf of the	1227
employee's employer.	1228

If there is not a single municipal corporation in which the	1229
employee spent the "greatest number of days in a calendar year"	1230
performing services for or on behalf of the employer, but instead	1231
there are two or more municipal corporations in which the employee	1232
spent an identical number of days that is greater than the number	1233
of days the employee spent in any other municipal corporation, the	1234
employer shall allocate any of the employee's qualifying wages	1235
subject to division (B)(1)(a) of this section among those two or	1236
more municipal corporations. The allocation shall be made using	1237
any fair and reasonable method, including, but not limited to, an	1238
equal allocation among such municipal corporations or an	1239
allocation based upon the time spent or sales made by the employee	1240
in each such municipal corporation. A municipal corporation to	1241
which qualifying wages are allocated under this division shall be	1242
the employee's "principal place of work" with respect to those	1243
qualifying wages for the purposes of this section.	1244

For the purposes of this division, the location at which an	1245
employee spends a particular day shall be determined in accordance	1246
with division (B)(2) of this section, except that "location" shall	1247
be substituted for "municipal corporation" wherever "municipal	1248
corporation" appears in that division.	1249

(B)(1) Subject to divisions (C), (E), and (F) of this	1250
section, an employer is not required to withhold municipal income	1251
tax on qualifying wages paid to an employee for the performance of	1252
personal services in a municipal corporation that imposes such a	1253
tax if the employee performed such services in the municipal	1254
corporation on twenty or fewer days in a calendar year, unless one	1255
of the following conditions applies:	1256

(a) The employee's principal place of work is located in the	1257
municipal corporation.	1258

(b) The employee performed services at one or more presumed	1259
worksite locations in the municipal corporation. For the purposes	1260
of this division, "presumed worksite location" means a	1261
construction site or other temporary worksite in this state at	1262
which the employer provides services that can reasonably be	1263
expected by the employer to last more than twenty days in a	1264
calendar year. Services can "reasonably be expected by the	1265
employer to last more than twenty days" if either of the following	1266
applies at the time the services commence:	1267

(i) The nature of the services are such that it will require	1268
more than twenty days of actual services to complete the services;	1269

(ii) The agreement between the employer and its customer to	1270
perform services at a location requires the employer to perform	1271
actual services at the location for more than twenty days.	1272

(c) The employee is a resident of the municipal corporation	1273
and has requested that the employer withhold tax from the	1274
employee's qualifying wages as provided in section 718.03 of the	1275
Revised Code.	1276

(d) The employee is a professional athlete, professional	1277
entertainer, or public figure, and the qualifying wages are paid	1278
for the performance of services in the employee's capacity as a	1279
professional athlete, professional entertainer, or public figure.	1280

(2) For the purposes of division (B)(1) of this section, an	1281
employee shall be considered to have spent a day performing	1282
services in a municipal corporation only if the employee spent	1283
more time performing services for or on behalf of the employer in	1284
that municipal corporation than in any other municipal corporation	1285
on that day. For the purposes of determining the amount of time an	1286
employee spent in a particular location, the time spent performing	1287
one or more of the following activities shall be considered to	1288
have been spent at the employee's principal place of work:	1289

(a) Traveling to the location at which the employee will	1290
first perform services for the employer for the day;	1291

(b) Traveling from a location at which the employee was	1292
performing services for the employer to any other location;	1293

(c) Traveling from any location to another location in order	1294
to pick up or load, for the purpose of transportation or delivery,	1295
property that has been purchased, sold, assembled, fabricated,	1296
repaired, refurbished, processed, remanufactured, or improved by	1297
the employee's employer;	1298

(d) Transporting or delivering property described in division	1299
(B)(2)(c) of this section, provided that, upon delivery of the	1300
property, the employee does not temporarily or permanently affix	1301
the property to real estate owned, used, or controlled by a person	1302
other than the employee's employer;	1303

(e) Traveling from the location at which the employee makes	1304
the employee's final delivery or pick-up for the day to either the	1305
employee's principal place of work or a location at which the	1306
employee will not perform services for the employer.	1307

(C) If the principal place of work of an employee is located	1308
in a municipal corporation that imposes an income tax in	1309
accordance with this chapter, the exception from withholding	1310
requirements described in division (B)(1) of this section shall	1311
apply only if, with respect to the employee's qualifying wages	1312
described in that division, the employer withholds and remits tax	1313
on such qualifying wages to the municipal corporation in which the	1314
employee's principal place of work is located.	1315

(D)(1) Except as provided in division (D)(2) of this section,	1316
if, during a calendar year, the number of days an employee spends	1317
performing personal services in a municipal corporation exceeds	1318
the twenty-day threshold described in division (B)(1) of this	1319
section, the employer shall withhold and remit tax to that	1320
municipal corporation for any subsequent days in that calendar	1321
year on which the employer pays qualifying wages to the employee	1322
for personal services performed in that municipal corporation.	1323

(2) An employer required to begin withholding tax for a	1324
municipal corporation under division (D)(1) of this section may	1325
elect to withhold tax for that municipal corporation for the first	1326
twenty days on which the employer paid qualifying wages to the	1327
employee for personal services performed in that municipal	1328
corporation.	1329

(3) If an employer makes the election described in division	1330
(D)(2) of this section, the taxes withheld and paid by such an	1331
employer during those first twenty days to the municipal	1332
corporation in which the employee's principal place of work is	1333
located are refundable to the employee.	1334

(E) Without regard to the number of days in a calendar year	1335
on which an employee performs personal services in any municipal	1336
corporation, an employer shall withhold municipal income tax on	1337
all of the employee's qualifying wages for a taxable year and	1338
remit that tax only to the municipal corporation in which the	1339
employer's fixed location is located if the employer qualifies as	1340
a small employer as defined in section 718.01 of the Revised Code.	1341

To determine whether an employer qualifies as a small	1342
employer for a taxable year, a tax administrator may require the	1343
employer to provide the tax administrator with the employer's	1344
federal income tax return for the preceding taxable year.	1345

(F) Divisions (B)(1) and (D) of this section shall not apply	1346
to the extent that a tax administrator and an employer enter into	1347
an agreement regarding the manner in which the employer shall	1348
comply with the requirements of section 718.03 of the Revised	1349
Code.	1350

Sec. 718.012.  (A)(1) An individual is presumed to be	1351
domiciled in a municipal corporation for all or part of a taxable	1352
year if the individual was domiciled in the municipal corporation	1353
on the last day of the immediately preceding taxable year or if	1354
the tax administrator reasonably concludes that the individual is	1355
domiciled in the municipal corporation for all or part of the	1356
taxable year.	1357

(2) An individual may rebut the presumption of domicile	1358
described in division (A)(1) of this section if the individual	1359
establishes by a preponderance of the evidence that the individual	1360
was not domiciled in the municipal corporation for all or part of	1361
the taxable year.	1362

(B) For the purpose of determining whether an individual is	1363
domiciled in a municipal corporation for all or part of a taxable	1364
year, only the following factors shall be considered:	1365

(1) The location of financial institutions in which the	1366
individual or the individual's spouse have any accounts,	1367
including, but not limited to, checking, savings, certificates of	1368
deposit, or individual retirement accounts;	1369

(2) The location of issuers of credit cards to the individual	1370
or the individual's spouse or of any other persons making	1371
installment loans to the individual or the individual's spouse;	1372

(3) The location of institutional lenders which have made	1373
loans to, or which are guaranteed by, the individual or the	1374
individual's spouse;	1375

(4) The location of investment facilities, brokerage firms,	1376
realtors, financial advisors, or consultants used by the	1377
individual or the individual's spouse;	1378

(5) The location of either the insurance company that issued	1379
or the insurance agent that sold any policy of insurance to the	1380
individual or the individual's spouse, including, but not limited	1381
to, life, health, disability, automobile, or homeowner's	1382
insurance;	1383

(6) The location of law firms, accounting firms, and similar	1384
professionals utilized by the individual or the individual's	1385
spouse for legal, tax, accounting, financial, or retirement	1386
services;	1387

(7) The location of physicians, dentists, osteopaths,	1388
optometrists, or other health care providers, or veterinarians	1389
utilized by the individual or the individual's spouse;	1390

(8) The location of organizations described in section 501(c)	1391
of the Internal Revenue Code to which the individual or the	1392
individual's spouse make contributions or other payments or in	1393
which they participate as a congregant, member, board member,	1394
committee member, adviser, or consultant;	1395

(9) The location of burial plots owned by the individual or	1396
the individual's spouse;	1397

(10) The location of business ventures or business entities	1398
in which the individual or the individual's spouse has a more than	1399
twenty-five per cent ownership interest or in which the individual	1400
exercises, either individually or jointly, significant control	1401
over the affairs of the venture or entity;	1402

(11) The recitation of residency or domicile in a will,	1403
trust, or other estate planning document;	1404

(12) The location of the individual's friends, dependents as	1405
defined in section 152 of the Internal Revenue Code, and family	1406
members other than the individual's spouse, if the individual is	1407
not legally separated from the individual's spouse under a decree	1408
of divorce or separate maintenance as provided in section	1409
7703(a)(2) of the Internal Revenue Code;	1410

(13) The location of educational institutions attended by the	1411
individual's dependents as defined in section 152 of the Internal	1412
Revenue Code, to the extent that tuition paid to such educational	1413
institution is based on the residency of the individual or the	1414
individual's spouse in the municipal corporation where the	1415
educational institution is located;	1416

(14) The location of trustees, executors, guardians, or other	1417
fiduciaries named in estate planning documents of the individual	1418
or the individual's spouse;	1419

(15) The location of all businesses at which the individual	1420
or the individual's spouse makes purchases of tangible personal	1421
property;	1422

(16) The location where the individual married;

1423

(17) The location or identity of recipients of political	1424
contributions made by the individual or the individual's spouse;	1425

(18) The number of contact periods the individual has with	1426
the municipal corporation. For the purposes of this division, an	1427
individual has one "contact period" with a municipal corporation	1428
if the individual is away overnight from the individual's abode	1429
located outside of the municipal corporation and while away	1430
overnight from that abode spends at least some portion, however	1431
minimal, of each of two consecutive days in the municipal	1432
corporation.	1433

(19) The individual's domicile in other taxable years;

1434

(20) The location at which the individual is registered to	1435
vote;	1436

(21) The address on the individual's driver's license;

1437

(22) The location of real estate for which the individual	1438
claimed a property tax exemption or reduction allowed on the basis	1439
of the individual's residence or domicile;	1440

(23) The location and value of abodes owned or leased by the	1441
individual;	1442

(24) Declarations, written or oral, made by the individual	1443
regarding the individual's residency;	1444

(25) The primary location at which the individual is	1445
employed.	1446

Sec. 718.02.  This section does not apply to taxpayers that	1447
are subject to and required to file reports under Chapter 5745. of	1448
the Revised Code.applies to any taxpayer engaged in a business or	1449
profession in a municipal corporation that imposes an income tax	1450
in accordance with this chapter, unless the taxpayer is an	1451
individual who resides in the municipal corporation or the	1452
taxpayer is an electric company, combined company, or telephone	1453
company that is subject to and required to file reports under	1454
Chapter 5745. of the Revised Code.	1455

(A) Except as otherwise provided in division (D)(B) of this	1456
section, net profit from a business or profession conducted both	1457
within and without the boundaries of a municipal corporation shall	1458
be considered as having a taxable situs in suchthe municipal	1459
corporation for purposes of municipal income taxation in the same	1460
proportion as the average ratio of the following:	1461

(1) The average original cost of the real property and	1462
tangible personal property owned or used by the taxpayer in the	1463
business or profession in suchthe municipal corporation during	1464
the taxable period to the average original cost of all of the real	1465
and tangible personal property owned or used by the taxpayer in	1466
the business or profession during the same period, wherever	1467
situated.	1468

As used in the preceding paragraph, tangible personal or real	1469
property shall include property rented or leased by the taxpayer	1470
and the value of such property shall be determined by multiplying	1471
the annual rental thereon by eight;	1472

(2) Wages, salaries, and other compensation paid during the	1473
taxable period to personsindividuals employed in the business or	1474
profession for services performed in suchthe municipal	1475
corporation to wages, salaries, and other compensation paid during	1476
the same period to personsindividuals employed in the business or	1477
profession, wherever theirthe individual's services are	1478
performed, excluding compensation that is not taxable by the	1479
municipal corporation under section 718.011from which taxes are	1480
not required to be withheld under section 718.011 of the Revised	1481
Code;	1482

(3) GrossTotal gross receipts of the business or profession	1483
from sales and rentals made and services performed during the	1484
taxable period in suchthe municipal corporation to total gross	1485
receipts of the business or profession during the same period from	1486
sales, rentals, and services, wherever made or performed.	1487

If the foregoing apportionment formula does not produce an	1488
equitable result, another basis may be substituted, under uniform	1489
regulations, so as to produce an equitable result.	1490

(B) As used in division (A) of this section, "sales made in a	1491
municipal corporation" mean:	1492

(1) All sales of tangible personal property delivered within	1493
such municipal corporation regardless of where title passes if	1494
shipped or delivered from a stock of goods within such municipal	1495
corporation;	1496

(2) All sales of tangible personal property delivered within	1497
such municipal corporation regardless of where title passes even	1498
though transported from a point outside such municipal corporation	1499
if the taxpayer is regularly engaged through its own employees in	1500
the solicitation or promotion of sales within such municipal	1501
corporation and the sales result from such solicitation or	1502
promotion;	1503

(3) All sales of tangible personal property shipped from a	1504
place within such municipal corporation to purchasers outside such	1505
municipal corporation regardless of where title passes if the	1506
taxpayer is not, through its own employees, regularly engaged in	1507
the solicitation or promotion of sales at the place where delivery	1508
is made.	1509

(C) Except as otherwise provided in division (D) of this	1510
section, net(B)(1) If the apportionment factors described in	1511
division (A) of this section do not fairly represent the extent of	1512
a taxpayer's business activity in a municipal corporation, the	1513
taxpayer may request, or the tax administrator of the municipal	1514
corporation may require, that the taxpayer use, with respect to	1515
all or any portion of the income of the taxpayer, an alternative	1516
apportionment method involving one or more of the following:	1517

(a) Separate accounting;

1518

(b) The exclusion of one or more of the factors;

1519

(c) The inclusion of one or more additional factors that	1520
would provide for a more fair apportionment of the income of the	1521
taxpayer to the municipal corporation;	1522

(d) A modification of one or more of the factors.

1523

(2) A taxpayer request to use an alternative apportionment	1524
method shall be in writing and shall accompany a tax return,	1525
timely filed appeal of a written determination, or timely filed	1526
amended tax return. The taxpayer may use the requested alternative	1527
method unless the tax administrator denies the request in a	1528
written determination by the tax administrator issued within the	1529
period prescribed by division (A) of section 718.12 of the Revised	1530
Code.	1531

(3) A tax administrator may require a taxpayer to use an	1532
alternative apportionment method as described in division (B)(1)	1533
of this section only by issuing a written determination to the	1534
taxpayer within the period prescribed by division (A) of section	1535
718.12 of the Revised Code.	1536

(4) Nothing in division (B) of this section nullifies or	1537
otherwise affects any alternative apportionment arrangement	1538
approved by a tax administrator or otherwise agreed upon by both	1539
the tax administrator and taxpayer before January 1, 2016.	1540

(C) As used in division (A)(2) of this section, "wages,	1541
salaries, and other compensation" includes only wages, salaries,	1542
or other compensation paid to an employee for services performed	1543
at any of the following locations:	1544

(1) A location that is owned, controlled, or used by, rented	1545
to, or under the possession of one of the following:	1546

(a) The employer;

1547

(b) A vendor, customer, client, or patient of the employer,	1548
or a related member of such a vendor, customer, client, or	1549
patient;	1550

(c) A vendor, customer, client, or patient of a person	1551
described in division (C)(1)(b) of this section, or a related	1552
member of such a vendor, customer, client, or patient.	1553

(2) Any location at which a trial, appeal, hearing,	1554
investigation, inquiry, review, court-martial, or similar	1555
administrative, judicial, or legislative matter or proceeding is	1556
being conducted, provided that the compensation is paid for	1557
services performed for, or on behalf of, the employer or that the	1558
employee's presence at the location directly or indirectly	1559
benefits the employer;	1560

(3) Any other location, if the tax administrator determines	1561
that the employer directed the employee to perform the services at	1562
the other location in lieu of a location described in division	1563
(C)(1) or (2) of this section solely in order to avoid or reduce	1564
the employer's municipal income tax liability. If a tax	1565
administrator makes such a determination, the employer may dispute	1566
the determination by establishing, by a preponderance of the	1567
evidence, that the tax administrator's determination was	1568
unreasonable.	1569

(D) For the purposes of division (A)(3) of this section,	1570
receipts from sales and rentals made and services performed shall	1571
be sitused to a municipal corporation as follows:	1572

(1) Gross receipts from the sale of tangible personal	1573
property shall be sitused to the municipal corporation in which	1574
the sale originated. For the purposes of this division, a sale of	1575
property originates in a municipal corporation if, regardless of	1576
where title passes, the property meets any of the following	1577
criteria:	1578

(a) The property is shipped to or delivered within the	1579
municipal corporation from a stock of goods located within the	1580
municipal corporation.	1581

(b) The property is delivered within the municipal	1582
corporation from a location outside the municipal corporation,	1583
provided the taxpayer is regularly engaged through its own	1584
employees in the solicitation or promotion of sales within such	1585
municipal corporation and the sales result from such solicitation	1586
or promotion.	1587

(c) The property is shipped from a place within the municipal	1588
corporation to purchasers outside the municipal corporation,	1589
provided that the taxpayer is not, through its own employees,	1590
regularly engaged in the solicitation or promotion of sales at the	1591
place where delivery is made.	1592

(2) Gross receipts from the sale of services shall be sitused	1593
to the municipal corporation to the extent that such services are	1594
performed in the municipal corporation.	1595

(3) To the extent included in income, gross receipts from the	1596
sale of real property located in the municipal corporation shall	1597
be sitused to the municipal corporation.	1598

(4) To the extent included in income, gross receipts from	1599
rents and royalties from real property located in the municipal	1600
corporation shall be sitused to the municipal corporation.	1601

(5) Gross receipts from rents and royalties from tangible	1602
personal property shall be sitused to the municipal corporation	1603
based upon the extent to which the tangible personal property is	1604
used in the municipal corporation.	1605

(E) The net profit received by an individual taxpayer from	1606
the rental activity not constituting a business or professionof	1607
real estate owned directly by the individual or by a disregarded	1608
entity owned by the individual shall be subject to tax only by the	1609
municipal corporation in which the property generating the net	1610
profit is located and the municipal corporation in which the	1611
individual taxpayer that receives the net profit resides.	1612

(D) This section does not apply to individuals who are	1613
residents of the municipal corporation and, except as otherwise	1614
provided in section 718.01 of the Revised Code, a municipal	1615
corporation may impose a tax on all income earned by residents of	1616
the municipal corporation to the extent allowed by the United	1617
States Constitution.	1618

(E) If, in computing the taxpayer's adjusted federal taxable	1619
income, the taxpayer deducted any amount with respect to a stock	1620
option granted to an employee, and if the employee is not required	1621
to include in income any amount or any portion thereof because it	1622
is exempted from taxation under division (H)(10) of section 718.01	1623
of the Revised Code and division (A)(2)(d) of section 718.03 of	1624
the Revised Code by a municipal corporation to which the taxpayer	1625
has apportioned a portion of its net profit, the taxpayer shall	1626
add the amount that is exempt from taxation to the taxpayer's net	1627
profit that was apportioned to that municipal corporation. In no	1628
case shall a taxpayer be required to add to its net profit that	1629
was apportioned to that municipal corporation any amount other	1630
than the amount upon which the employee would be required to pay	1631
tax were the amount related to the stock option not exempted from	1632
taxation.	1633

This division applies solely for the purpose of making an	1634
adjustment to the amount of a taxpayer's net profit that was	1635
apportioned to a municipal corporation under divisions (A) and (B)	1636
of this section.	1637

A municipal corporation shall allow such taxpayers to elect	1638
to use separate accounting for the purpose of calculating net	1639
profit sitused under this division to the municipal corporation in	1640
which the property is located.	1641

(F)(1) Except as provided in division (F)(2) of this section,	1642
commissions received by a real estate agent or broker relating to	1643
the sale, purchase, or lease of real estate shall be sitused to	1644
the municipal corporation in which the real estate is located. Net	1645
profit reported by the real estate agent or broker shall be	1646
allocated to a municipal corporation based upon the ratio of the	1647
commissions the agent or broker received from the sale, purchase,	1648
or lease of real estate located in the municipal corporation to	1649
the commissions received from the sale, purchase, or lease of real	1650
estate everywhere in the taxable year.	1651

(2) An individual who is a resident of a municipal	1652
corporation that imposes a municipal income tax shall report the	1653
individual's net profit from all real estate activity on the	1654
individual's annual tax return for that municipal corporation. The	1655
individual may claim a credit for taxes the individual paid on	1656
such net profit to another municipal corporation to the extent	1657
that such a credit is allowed under the municipal income tax	1658
ordinance, or rules of the municipal corporation of residence.	1659

(G) If, in computing a taxpayer's adjusted federal taxable	1660
income, the taxpayer deducted any amount with respect to a stock	1661
option granted to an employee, and if the employee is not required	1662
to include in the employee's income any such amount or a portion	1663
thereof because it is exempted from taxation under divisions	1664
(C)(12) and (R)(1)(d) of section 718.01 of the Revised Code by a	1665
municipal corporation to which the taxpayer has apportioned a	1666
portion of its net profit, the taxpayer shall add the amount that	1667
is exempt from taxation to the taxpayer's net profit that was	1668
apportioned to that municipal corporation. In no case shall a	1669
taxpayer be required to add to its net profit that was apportioned	1670
to that municipal corporation any amount other than the amount	1671
upon which the employee would be required to pay tax were the	1672
amount related to the stock option not exempted from taxation.	1673

This division applies solely for the purpose of making an	1674
adjustment to the amount of a taxpayer's net profit that was	1675
apportioned to a municipal corporation under this section.	1676

(H) When calculating the ratios described in division (A) of	1677
this section for the purposes of that division or division (B) of	1678
this section, the owner of a disregarded entity shall include in	1679
the owner's ratios the property, payroll, and gross receipts of	1680
such disregarded entity.	1681

Sec. 718.03. (A) As used in this section:

1682

(1) "Other payer" means any person, other than an	1683
individual's employer or the employer's agent, that pays an	1684
individual any amount included in the federal gross income of the	1685
individual.	1686

(2) "Qualifying wages" means wages, as defined in section	1687
3121(a) of the Internal Revenue Code, without regard to any wage	1688
limitations, adjusted as follows:	1689

(a) Deduct the following amounts:

1690

(i) Any amount included in wages if the amount constitutes	1691
compensation attributable to a plan or program described in	1692
section 125 of the Internal Revenue Code;	1693

(ii) For purposes of division (B) of this section, any amount	1694
included in wages if the amount constitutes payment on account of	1695
sickness or accident disability.	1696

(b) Add the following amounts:

1697

(i) Any amount not included in wages solely because the	1698
employee was employed by the employer prior to April 1, 1986;	1699

(ii) Any amount not included in wages because the amount	1700
arises from the sale, exchange, or other disposition of a stock	1701
option, the exercise of a stock option, or the sale, exchange, or	1702
other disposition of stock purchased under a stock option and the	1703
municipal corporation has not, by resolution or ordinance,	1704
exempted the amount from withholding and tax. Division	1705
(A)(2)(b)(ii) of this section applies only to those amounts	1706
constituting ordinary income.	1707

(iii) Any amount not included in wages if the amount is an	1708
amount described in section 401(k) or 457 of the Internal Revenue	1709
Code. Division (A)(2)(b)(iii) of this section applies only to	1710
employee contributions and employee deferrals.	1711

(iv) Any amount that is supplemental unemployment	1712
compensation benefits described in section 3402(o)(2) of the	1713
Internal Revenue Code and not included in wages.	1714

(c) Deduct any amount attributable to a nonqualified deferred	1715
compensation plan or program described in section 3121(v)(2)(C) of	1716
the Internal Revenue Code if the compensation is included in wages	1717
and has, by resolution or ordinance, been exempted from taxation	1718
by the municipal corporation.	1719

(d) Deduct any amount included in wages if the amount arises	1720
from the sale, exchange, or other disposition of a stock option,	1721
the exercise of a stock option, or the sale, exchange, or other	1722
disposition of stock purchased under a stock option and the	1723
municipal corporation has, by resolution or ordinance, exempted	1724
the amount from withholding and tax.	1725

(B) Except as provided in division (F) of this section, for	1726
taxable years beginning after 2003, no municipal corporation shall	1727
require any employer or any agent of any employer or any other	1728
payer, to withhold tax with respect to any amount other than	1729
qualifying wages. Nothing in this section prohibits an employer	1730
from withholding tax on a basis greater than qualifying wages.	1731

(C)(1) Each employer, agent of an employer, or other payer	1732
located or doing business in a municipal corporation that imposes	1733
a tax on income in accordance with this chapter shall withhold	1734
from each employee an amount equal to the qualifying wages of the	1735
employee earned by the employee in the municipal corporation	1736
multiplied by the applicable rate of the municipal corporation's	1737
income tax, except for qualifying wages for which withholding is	1738
not required under section 718.011 of the Revised Code or division	1739
(D) or (F) of this section. An employer, agent of an employer, or	1740
other payer shall deduct and withhold the tax from qualifying	1741
wages on the date that the employer, agent, or other payer	1742
directly, indirectly, or constructively pays the qualifying wages	1743
to, or credits the qualifying wages to the benefit of, the	1744
employee.	1745

(2) In addition to withholding the amounts required under	1746
division (A)(1) of this section, an employer, agent of an	1747
employer, or other payer may also deduct and withhold, on the	1748
request of an employee, taxes for the municipal corporation in	1749
which the employee is a resident.	1750

(B)(1) Except as provided in division (B)(2) of this section,	1751
an employer, agent of an employer, or other payer shall remit to	1752
the tax administrator of a municipal corporation the greater of	1753
the income taxes deducted and withheld or the income taxes	1754
required to be deducted and withheld by the employer, agent, or	1755
other payer according to the following schedule:	1756

(a) Taxes required to be deducted and withheld shall be	1757
remitted monthly to the tax administrator if the total taxes	1758
deducted and withheld or required to be deducted and withheld by	1759
the employer, agent, or other payer on behalf of the municipal	1760
corporation in the preceding calendar year exceeded two thousand	1761
three hundred ninety-nine dollars, or if the total amount of taxes	1762
deducted and withheld or required to be deducted and withheld on	1763
behalf of the municipal corporation in any month of the preceding	1764
calendar quarter exceeded two hundred dollars.	1765

Payment under division (B)(1)(a) of this section shall be	1766
made so that the payment is received by the tax administrator not	1767
later than fifteen days after the last day of each month.	1768

(b) Any employer, agent of an employer, or other payer not	1769
required to make payments under division (B)(1)(a) of this section	1770
of taxes required to be deducted and withheld shall make quarterly	1771
payments to the tax administrator not later than the fifteenth day	1772
of the month following the end of each calendar quarter.	1773

(2) Notwithstanding division (B)(1) of this section, a	1774
municipal corporation may require, by resolution, ordinance, or	1775
rule, an employer, agent of an employer, or other payer to do any	1776
of the following:	1777

(a) Remit taxes deducted and withheld semimonthly to the tax	1778
administrator if the total taxes deducted and withheld or required	1779
to be deducted and withheld on behalf of the municipal corporation	1780
in the preceding calendar year exceeded eleven thousand nine	1781
hundred ninety-nine dollars, or if the total amount of taxes	1782
deducted and withheld or required to be deducted and withheld on	1783
behalf of the municipal corporation in any month of the preceding	1784
calendar year exceeded one thousand dollars. The payment under	1785
division (B)(2)(a) of this section shall be made so that the	1786
payment is received by the tax administrator not later than one of	1787
the following:	1788

(i) If the taxes were deducted and withheld or required to be	1789
deducted and withheld during the first fifteen days of a month,	1790
the third banking day after the fifteenth day of that month;	1791

(ii) If the taxes were deducted and withheld or required to	1792
be deducted and withheld after the fifteenth day of a month and	1793
before the first day of the immediately following month, the third	1794
banking day after the last day of that month.	1795

(b) Make payment by electronic funds transfer to the tax	1796
administrator of all taxes deducted and withheld on behalf of the	1797
municipal corporation if the employer, agent of an employer, or	1798
other payer is required to make payments electronically for the	1799
purpose of paying federal taxes withheld on payments to employees	1800
under section 6302 of the Internal Revenue Code, 26 C.F.R.	1801
31.6302-1, or any other federal statute or regulation. The payment	1802
of tax by electronic funds transfer under this division does not	1803
affect an employer's, agent's, or other payer's obligation to file	1804
any return as required under this section.	1805

(C) An employer, agent of an employer, or other payer shall	1806
make and file a return showing the amount of tax withheld by the	1807
employer, agent, or other payer from the qualifying wages of each	1808
employee and remitted to the tax administrator. Unless the tax	1809
administrator requires all individual taxpayers to file a tax	1810
return under section 718.05 of the Revised Code, a return filed by	1811
an employer, agent, or other payer under this division shall be	1812
accepted by a tax administrator and municipal corporation as the	1813
return required of an employee whose sole income subject to the	1814
tax under this chapter is the qualifying wages reported by the	1815
employee's employer, agent of an employer, or other payer.	1816

(D) An employer, agent of an employer, or other payer is not	1817
required to make any withholdingwithhold municipal income tax	1818
with respect to an individual's disqualifying disposition of an	1819
incentive stock option if, at the time of the disqualifying	1820
disposition, the individual is not an employee of either the	1821
corporation with respect to whose stock the option has been issued	1822
or of such corporation's successor entity.	1823

(D)(E)(1) An employee is not relieved from liability for a	1824
tax by the failure of the employer, agent of an employer, or other	1825
payer to withhold the tax as required by a municipal corporation	1826
under this chapter or by the employer's, agent's, or other payer's	1827
exemption from the requirement to withhold the tax.	1828

(2) The failure of an employer, agent of an employer, or	1829
other payer to remit to the municipal corporation the tax withheld	1830
relieves the employee from liability for that tax unless the	1831
employee colluded with the employer, agent, or other payer in	1832
connection with the failure to remit the tax withheld.	1833

(E)(F) Compensation deferred before June 26, 2003, is not	1834
subject to any municipal corporation income tax or municipal	1835
income tax withholding requirement to the extent the deferred	1836
compensation does not constitute qualifying wages at the time the	1837
deferred compensation is paid or distributed.	1838

(F) A municipal corporation may require a casino facility or	1839
a casino operator, as defined in Section 6(C)(9) of Article XV,	1840
Ohio Constitution, and section 3772.01 of the Revised Code,	1841
respectively, or a lottery sales agent conducting video lottery	1842
terminals on behalf of the state to withhold and remit tax with	1843
respect to amounts other than qualifying wages.	1844

(G) Each employer, agent of an employer, or other payer	1845
required to withhold taxes is liable for the payment of that	1846
amount required to be withheld, whether or not such taxes have	1847
been withheld, and such amount shall be deemed to be held in trust	1848
for the municipal corporation until such time as the withheld	1849
amount is remitted to the tax administrator.	1850

(H) On or before the last day of February of each year, an	1851
employer shall file a withholding reconciliation return with the	1852
tax administrator listing the names, addresses, and social	1853
security numbers of all employees from whose qualifying wages tax	1854
was withheld or should have been withheld for the municipal	1855
corporation during the preceding calendar year, the amount of tax	1856
withheld, if any, from each such employee, the total amount of	1857
qualifying wages paid to such employee during the preceding	1858
calendar year, the name of every other municipal corporation for	1859
which tax was withheld or should have been withheld from such	1860
employee during the preceding calendar year, any other information	1861
required for federal income tax reporting purposes on Internal	1862
Revenue Service form W-2 or its equivalent form with respect to	1863
such employee, and other information as may be required by the tax	1864
administrator.	1865

(I) The officer or the employee of the employer, agent of an	1866
employer, or other payer with control or direct supervision of or	1867
charged with the responsibility for withholding the tax or filing	1868
the reports and making payments as required by this section, shall	1869
be personally liable for a failure to file a report or pay the tax	1870
due as required by this section. The dissolution of an employer,	1871
agent of an employer, or other payer does not discharge the	1872
officer's or employee's liability for a failure of the employer,	1873
agent of an employer, or other payer to file returns or pay any	1874
tax due.	1875

(J) An employer is required to deduct and withhold municipal	1876
income tax on tips and gratuities received by the employer's	1877
employees and constituting qualifying wages only to the extent	1878
that the tips and gratuities are under the employer's control. For	1879
the purposes of this division, a tip or gratuity is under the	1880
employer's control if the tip or gratuity is paid by the customer	1881
to the employer for subsequent remittance to the employee, or if	1882
the customer pays the tip or gratuity by credit card, debit card,	1883
or other electronic means.	1884

(K) A tax administrator shall consider any tax withheld by an	1885
employer at the request of an employee when such tax is not	1886
otherwise required to be withheld by this chapter to be tax	1887
required to be withheld and remitted for the purposes of this	1888
section.	1889

Sec. 718.031. (A) A municipal corporation shall require a	1890
casino facility or a casino operator, as defined in Section	1891
6(C)(9) of Article XV, Ohio Constitution, and section 3772.01 of	1892
the Revised Code, respectively, or a lottery sales agent	1893
conducting video lottery terminals on behalf of the state to	1894
withhold and remit municipal income tax with respect to amounts	1895
other than qualifying wages as provided in this section.	1896

(B) If a person's winnings at a casino facility are an amount	1897
for which reporting to the internal revenue service of the amount	1898
is required by section 6041 of the Internal Revenue Code, as	1899
amended, the casino operator shall deduct and withhold municipal	1900
income tax from the person's winnings at the rate of the tax	1901
imposed by the municipal corporation in which the casino facility	1902
is located.	1903

(C) Amounts deducted and withheld by a casino operator are	1904
held in trust for the benefit of the municipal corporation to	1905
which the tax is owed.	1906

(1) On or before the tenth day of each month, the casino	1907
operator shall file a return electronically with the tax	1908
administrator of the municipal corporation, providing the name,	1909
address, and social security number of the person from whose	1910
winnings amounts were deducted and withheld, the amount of each	1911
such deduction and withholding during the preceding calendar	1912
month, the amount of the winnings from which each such amount was	1913
withheld, the type of casino gaming that resulted in such	1914
winnings, and any other information required by the tax	1915
administrator. With this return, the casino operator shall remit	1916
electronically to the municipal corporation all amounts deducted	1917
and withheld during the preceding month.	1918

(2) Annually, on or before the thirty-first day of January, a	1919
casino operator shall file an annual return electronically with	1920
the tax administrator of the municipal corporation in which the	1921
casino facility is located, indicating the total amount deducted	1922
and withheld during the preceding calendar year. The casino	1923
operator shall remit electronically with the annual return any	1924
amount that was deducted and withheld and that was not previously	1925
remitted. If the name, address, or social security number of a	1926
person or the amount deducted and withheld with respect to that	1927
person was omitted on a monthly return for that reporting period,	1928
that information shall be indicated on the annual return.	1929

(3) Annually, on or before the thirty-first day of January, a	1930
casino operator shall issue an information return to each person	1931
with respect to whom an amount has been deducted and withheld	1932
during the preceding calendar year. The information return shall	1933
show the total amount of municipal income tax deducted from the	1934
person's winnings during the preceding year. The casino operator	1935
shall provide to the tax administrator a copy of each information	1936
return issued under this division. The administrator may require	1937
that such copies be transmitted electronically.	1938

(4) A casino operator that fails to file a return and remit	1939
the amounts deducted and withheld shall be personally liable for	1940
the amount withheld and not remitted. Such personal liability	1941
extends to any penalty and interest imposed for the late filing of	1942
a return or the late payment of tax deducted and withheld.	1943

(5) If a casino operator sells the casino facility or	1944
otherwise quits the casino business, the amounts deducted and	1945
withheld along with any penalties and interest thereon are	1946
immediately due and payable. The successor shall withhold an	1947
amount of the purchase money that is sufficient to cover the	1948
amounts deducted and withheld along with any penalties and	1949
interest thereon until the predecessor casino operator produces	1950
either of the following:	1951

(a) A receipt from the tax administrator showing that the	1952
amounts deducted and withheld and penalties and interest thereon	1953
have been paid;	1954

(b) A certificate from the tax administrator indicating that	1955
no amounts are due.	1956

If the successor fails to withhold purchase money, the	1957
successor is personally liable for the payment of the amounts	1958
deducted and withheld and penalties and interest thereon.	1959

(6) The failure of a casino operator to deduct and withhold	1960
the required amount from a person's winnings does not relieve that	1961
person from liability for the municipal income tax with respect to	1962
those winnings.	1963

(D) If a person's prize award from a video lottery terminal	1964
is an amount for which reporting to the internal revenue service	1965
is required by section 6041 of the Internal Revenue Code, as	1966
amended, the video lottery sales agent shall deduct and withhold	1967
municipal income tax from the person's prize award at the rate of	1968
the tax imposed by the municipal corporation in which the video	1969
lottery terminal facility is located.	1970

(E) Amounts deducted and withheld by a video lottery sales	1971
agent are held in trust for the benefit of the municipal	1972
corporation to which the tax is owed.	1973

(1) The video lottery sales agent shall issue to a person	1974
from whose prize award an amount has been deducted and withheld a	1975
receipt for the amount deducted and withheld, and shall obtain	1976
from the person receiving a prize award the person's name,	1977
address, and social security number in order to facilitate the	1978
preparation of returns required by this section.	1979

(2) On or before the tenth day of each month, the video	1980
lottery sales agent shall file a return electronically with the	1981
tax administrator of the municipal corporation providing the	1982
names, addresses, and social security numbers of the persons from	1983
whose prize awards amounts were deducted and withheld, the amount	1984
of each such deduction and withholding during the preceding	1985
calendar month, the amount of the prize award from which each such	1986
amount was withheld, and any other information required by the tax	1987
administrator. With the return, the video lottery sales agent	1988
shall remit electronically to the tax administrator all amounts	1989
deducted and withheld during the preceding month.	1990

(3) A video lottery sales agent shall maintain a record of	1991
all receipts issued under division (E) of this section and shall	1992
make those records available to the tax administrator upon	1993
request. Such records shall be maintained in accordance with	1994
section 5747.17 of the Revised Code and any rules adopted pursuant	1995
thereto.	1996

(4) Annually, on or before the thirty-first day of January,	1997
each video lottery terminal sales agent shall file an annual	1998
return electronically with the tax administrator of the municipal	1999
corporation in which the facility is located indicating the total	2000
amount deducted and withheld during the preceding calendar year.	2001
The video lottery sales agent shall remit electronically with the	2002
annual return any amount that was deducted and withheld and that	2003
was not previously remitted. If the name, address, or social	2004
security number of a person or the amount deducted and withheld	2005
with respect to that person was omitted on a monthly return for	2006
that reporting period, that information shall be indicated on the	2007
annual return.	2008

(5) Annually, on or before the thirty-first day of January, a	2009
video lottery sales agent shall issue an information return to	2010
each person with respect to whom an amount has been deducted and	2011
withheld during the preceding calendar year. The information	2012
return shall show the total amount of municipal income tax	2013
deducted and withheld from the person's prize award by the video	2014
lottery sales agent during the preceding year. A video lottery	2015
sales agent shall provide to the tax administrator of the	2016
municipal corporation a copy of each information return issued	2017
under this division. The tax administrator may require that such	2018
copies be transmitted electronically.	2019

(6) A video lottery sales agent who fails to file a return	2020
and remit the amounts deducted and withheld is personally liable	2021
for the amount deducted and withheld and not remitted. Such	2022
personal liability extends to any penalty and interest imposed for	2023
the late filing of a return or the late payment of tax deducted	2024
and withheld.	2025

(F) If a video lottery sales agent ceases to operate video	2026
lottery terminals, the amounts deducted and withheld along with	2027
any penalties and interest thereon are immediately due and	2028
payable. The successor of the video lottery sales agent that	2029
purchases the video lottery terminals from the agent shall	2030
withhold an amount from the purchase money that is sufficient to	2031
cover the amounts deducted and withheld and any penalties and	2032
interest thereon until the predecessor video lottery sales agent	2033
operator produces either of the following:	2034

(1) A receipt from the tax administrator showing that the	2035
amounts deducted and withheld and penalties and interest thereon	2036
have been paid;	2037

(2) A certificate from the tax administrator indicating that	2038
no amounts are due.	2039

If the successor fails to withhold purchase money, the	2040
successor is personally liable for the payment of the amounts	2041
deducted and withheld and penalties and interest thereon.	2042

(G) The failure of a video lottery sales agent to deduct and	2043
withhold the required amount from a person's prize award does not	2044
relieve that person from liability for the municipal income tax	2045
with respect to that prize award.	2046

(H) If a casino operator or lottery sales agent files a	2047
return late, fails to file a return, remits amounts deducted and	2048
withheld late, or fails to remit amounts deducted and withheld as	2049
required under this section, the tax administrator of a municipal	2050
corporation may impose the following applicable penalty:	2051

(1) For the late remittance of, or failure to remit, tax	2052
deducted and withheld under this section, a penalty equal to fifty	2053
per cent of the tax deducted and withheld;	2054

(2) For the failure to file, or the late filing of, a monthly	2055
or annual return, a penalty of five hundred dollars for each	2056
return not filed or filed late. Interest shall accrue on past due	2057
amounts deducted and withheld at the rate prescribed in section	2058
5703.47 of the Revised Code.	2059

(I) Amounts deducted and withheld on behalf of a municipal	2060
corporation shall be allowed as a credit against payment of the	2061
tax imposed by the municipal corporation and shall be treated as	2062
taxes paid for purposes of section 718.08 of the Revised Code.	2063
This division applies only to the person for whom the amount is	2064
deducted and withheld.	2065

(J) The tax administrator shall prescribe the forms of the	2066
receipts and returns required under this section.	2067

Sec. 718.04. (A) Notwithstanding division (A) of section	2068
715.013 of the Revised Code, a municipal corporation may levy a	2069
tax on income and a withholding tax if such taxes are levied in	2070
accordance with the provisions and limitations specified in this	2071
chapter. On or after January 1, 2016, the ordinance or resolution	2072
levying such taxes, as adopted or amended by the legislative	2073
authority of the municipal corporation, shall include all of the	2074
following:	2075

(1) A statement that the tax is an annual tax levied on the	2076
income of every person residing in or earning or receiving income	2077
in the municipal corporation and that the tax shall be measured by	2078
municipal taxable income;	2079

(2) A statement that the municipal corporation is levying the	2080
tax in accordance with the limitations specified in this chapter	2081
and that the resolution or ordinance thereby incorporates the	2082
provisions of this chapter;	2083

(3) The rate of the tax;

2084

(4) Whether, and the extent to which, a credit, as described	2085
in division (D) of this section, will be allowed against the tax;	2086

(5) The purpose or purposes of the tax;

2087

(6) Any other provision necessary for the administration of	2088
the tax, provided that the provision does not conflict with any	2089
provision of this chapter.	2090

(B) Any municipal corporation that, on or before the	2091
effective date of the enactment of this section, levies an income	2092
tax at a rate in excess of one per cent may continue to levy the	2093
tax at the rate specified in the original ordinance or resolution,	2094
provided that such rate continues in effect as specified in the	2095
original ordinance or resolution.	2096

(C)(1) No municipal corporation shall tax income at other	2097
than a uniform rate.	2098

(2) Except as provided in division (B) of this section, no	2099
municipal corporation shall levy a tax on income at a rate in	2100
excess of one per cent without having obtained the approval of the	2101
excess by a majority of the electors of the municipality voting on	2102
the question at a general, primary, or special election. The	2103
legislative authority of the municipal corporation shall file with	2104
the board of elections at least ninety days before the day of the	2105
election a copy of the ordinance together with a resolution	2106
specifying the date the election is to be held and directing the	2107
board of elections to conduct the election. The ballot shall be in	2108
the following form: "Shall the Ordinance providing for a ... per	2109
cent levy on income for (Brief description of the purpose of the	2110
proposed levy) be passed?	2111

2112

		FOR THE INCOME TAX			2113
		AGAINST THE INCOME TAX	"		2114

2115

In the event of an affirmative vote, the proceeds of the levy may	2116
be used only for the specified purpose.	2117

(D) A municipal corporation may, by ordinance or resolution,	2118
grant a credit to residents of the municipal corporation for all	2119
or a portion of the taxes paid to any municipal corporation, in	2120
this state or elsewhere, by the resident or by a pass-through	2121
entity owned, directly or indirectly, by a resident, on the	2122
resident's distributive or proportionate share of the income of	2123
the pass-through entity. A municipal corporation is not required	2124
to refund taxes not paid to the municipal corporation.	2125

(E) Except as otherwise provided in this chapter, a municipal	2126
corporation that levies an income tax in effect for taxable years	2127
beginning before January 1, 2016, may continue to administer and	2128
enforce the provisions of such tax for all taxable years beginning	2129
before January 1, 2016, provided that the provisions of such tax	2130
are consistent with this chapter as it existed prior to the	2131
effective date of the enactment of this section.	2132

(F) Nothing in this chapter authorizes a municipal	2133
corporation to levy a tax on income, or to administer or collect	2134
such a tax or penalties or interest related to such a tax,	2135
contrary to the provisions and limitations specified in this	2136
chapter. No municipal corporation shall enforce an ordinance or	2137
resolution that conflicts with the provisions of this chapter.	2138

Sec. 718.05. (A) An annual return with respect to the income	2139
tax levied by a municipal corporation shall be completed and filed	2140
by every taxpayer for any taxable year for which the taxpayer is	2141
liable for the tax. If the total credit allowed against the tax as	2142
described in division (D) of section 718.04 of the Revised Code	2143
for the year is equal to or exceeds the tax imposed by the	2144
municipal corporation, no return shall be required unless the	2145
municipal ordinance or resolution levying the tax requires the	2146
filing of a return in such circumstances.	2147

(B) If an individual is deceased, any return or notice	2148
required of that individual shall be completed and filed by that	2149
decedent's executor, administrator, or other person charged with	2150
the property of that decedent.	2151

(C) If an individual is unable to complete and file a return	2152
or notice required by a municipal corporation in accordance with	2153
this chapter, the return or notice required of that individual	2154
shall be completed and filed by the individual's duly authorized	2155
agent, guardian, conservator, fiduciary, or other person charged	2156
with the care of the person or property of that individual.	2157

(D) Returns or notices required of an estate or a trust shall	2158
be completed and filed by the fiduciary of the estate or trust.	2159

(E) No municipal corporation shall deny spouses the ability	2160
to file a joint return.	2161

(F)(1) Each return required to be filed under this section	2162
shall contain the signature of the taxpayer or the taxpayer's duly	2163
authorized agent and of the person who prepared the return for the	2164
taxpayer, and shall include the taxpayer's social security number	2165
or taxpayer identification number. Each return shall be verified	2166
by a declaration under penalty of perjury.	2167

(2) A tax administrator may require a taxpayer who is an	2168
individual to include, with each annual return, amended return, or	2169
request for refund required under this section, copies of only the	2170
following documents: all of the taxpayer's Internal Revenue	2171
Service form W-2, "Wage and Tax Statements," including all	2172
information reported on the taxpayer's federal W-2, as well as	2173
taxable wages reported or withheld for any municipal corporation;	2174
the taxpayer's Internal Revenue Service form 1040; and, with	2175
respect to an amended tax return or refund request, any other	2176
documentation necessary to support the refund request or the	2177
adjustments made in the amended return. An individual taxpayer who	2178
files the annual return required by this section electronically is	2179
not required to provide paper copies of any of the foregoing to	2180
the tax administrator unless the tax administrator requests such	2181
copies after the return has been filed.	2182

(3) A tax administrator may require a taxpayer that is not an	2183
individual to include, with each annual net profit return, amended	2184
net profit return, or request for refund required under this	2185
section, copies of only the following documents: the taxpayer's	2186
Internal Revenue Service form 1041, form 1065, form 1120, form	2187
1120-REIT, form 1120F, or form 1120S, and, with respect to an	2188
amended tax return or refund request, any other documentation	2189
necessary to support the refund request or the adjustments made in	2190
the amended return.	2191

A taxpayer that is not an individual and that files an annual	2192
net profit return electronically through the Ohio business gateway	2193
or in some other manner shall either mail the documents required	2194
under this division to the tax administrator at the time of filing	2195
or, if electronic submission is available, submit the documents	2196
electronically through the Ohio business gateway. The department	2197
of taxation shall publish a method of electronically submitting	2198
the documents required under this division through the Ohio	2199
business gateway on or before January 1, 2016. The department	2200
shall transmit all documents submitted electronically under this	2201
division to the appropriate tax administrator.	2202

(4) After a taxpayer files a tax return, the tax	2203
administrator may request, and the taxpayer shall provide, any	2204
information, statements, or documents required by the municipal	2205
corporation to determine and verify the taxpayer's municipal	2206
income tax liability. The requirements imposed under division (F)	2207
of this section apply regardless of whether the taxpayer files on	2208
a generic form or on a form prescribed by the tax administrator.	2209

(G)(1) Except as otherwise provided in this chapter, each	2210
return required to be filed under this section shall be completed	2211
and filed as required by the tax administrator on or before the	2212
date prescribed for the filing of state individual income tax	2213
returns under division (G) of section 5747.08 of the Revised Code.	2214
The taxpayer shall complete and file the return or notice on forms	2215
prescribed by the tax administrator or on generic forms, together	2216
with remittance made payable to the municipal corporation or tax	2217
administrator. No remittance is required if the amount shown to be	2218
due is ten dollars or less.	2219

(2) Any taxpayer that has duly requested an automatic	2220
six-month extension for filing the taxpayer's federal income tax	2221
return shall automatically receive an extension for the filing of	2222
a municipal income tax return. The extended due date of the	2223
municipal income tax return shall be the fifteenth day of the	2224
tenth month after the last day of the taxable year to which the	2225
return relates. An extension of time to file under this division	2226
is not an extension of the time to pay any tax due unless the tax	2227
administrator grants an extension of that date.	2228

(3) If the tax commissioner extends for all taxpayers the	2229
date for filing state income tax returns under division (G) of	2230
section 5747.08 of the Revised Code, a taxpayer shall	2231
automatically receive an extension for the filing of a municipal	2232
income tax return. The extended due date of the municipal income	2233
tax return shall be the same as the extended due date of the state	2234
income tax return.	2235

(4) If the tax administrator considers it necessary in order	2236
to ensure the payment of the tax imposed by the municipal	2237
corporation in accordance with this chapter, the tax administrator	2238
may require taxpayers to file returns and make payments otherwise	2239
than as provided in this section, including taxpayers not	2240
otherwise required to file annual returns.	2241

(5) To the extent that any provision in this division	2242
conflicts with any provision in section 718.052 of the Revised	2243
Code, the provision in that section prevails.	2244

(H)(1) For taxable years beginning after 2015, a municipal	2245
corporation shall not require a taxpayer to remit tax with respect	2246
to net profits if the amount due is less than ten dollars.	2247

(2) Any taxpayer not required to remit tax to a municipal	2248
corporation for a taxable year pursuant to division (H)(1) of this	2249
section shall file with the municipal corporation an annual net	2250
profit return under division (F)(3) of this section.	2251

(I) This division shall not apply to payments required to be	2252
made under division (B)(1)(a) or (2)(a) of section 718.03 of the	2253
Revised Code.	2254

(1) If any report, claim, statement, or other document	2255
required to be filed, or any payment required to be made, within a	2256
prescribed period or on or before a prescribed date under this	2257
chapter is delivered after that period or that date by United	2258
States mail to the tax administrator or other municipal official	2259
with which the report, claim, statement, or other document is	2260
required to be filed, or to which the payment is required to be	2261
made, the date of the postmark stamped on the cover in which the	2262
report, claim, statement, or other document, or payment is mailed	2263
shall be deemed to be the date of delivery or the date of payment.	2264
"The date of postmark" means, in the event there is more than one	2265
date on the cover, the earliest date imprinted on the cover by the	2266
postal service.	2267

(2) If a payment is required to be made by electronic funds	2268
transfer, the payment is considered to be made when the payment is	2269
credited to an account designated by the tax administrator for the	2270
receipt of tax payments, except that, when a payment made by	2271
electronic funds transfer is delayed due to circumstances not	2272
under the control of the taxpayer, the payment is considered to be	2273
made when the taxpayer submitted the payment.	2274

(J) The amounts withheld by an employer, the agent of an	2275
employer, or an other payer as described in section 718.03 of the	2276
Revised Code shall be allowed to the recipient of the compensation	2277
as credits against payment of the tax imposed on the recipient by	2278
the municipal corporation, unless the amounts withheld were not	2279
remitted to the municipal corporation and the recipient colluded	2280
with the employer, agent, or other payer in connection with the	2281
failure to remit the amounts withheld.	2282

(K) Each return required by a municipal corporation to be	2283
filed in accordance with this section shall include a box that the	2284
taxpayer may check to authorize another person, including a tax	2285
return preparer who prepared the return, to communicate with the	2286
tax administrator about matters pertaining to the return. The	2287
return or instructions accompanying the return shall indicate that	2288
by checking the box the taxpayer authorizes the tax administrator	2289
to contact the preparer or other person concerning questions that	2290
arise during the examination or other review of the return and	2291
authorizes the preparer or other person only to provide the tax	2292
administrator with information that is missing from the return, to	2293
contact the tax administrator for information about the	2294
examination or other review of the return or the status of the	2295
taxpayer's refund or payments, and to respond to notices about	2296
mathematical errors, offsets, or return preparation that the	2297
taxpayer has received from the tax administrator and has shown to	2298
the preparer or other person.	2299

(L) The tax administrator of a municipal corporation shall	2300
accept for filing a generic form of any income tax return, report,	2301
or document required by the municipal corporation in accordance	2302
with this chapter, provided that the generic form, once completed	2303
and filed, contains all of the information required by ordinance,	2304
resolution, or rules adopted by the municipal corporation or tax	2305
administrator, and provided that the taxpayer or tax return	2306
preparer filing the generic form otherwise complies with the	2307
provisions of this chapter and of the municipal corporation	2308
ordinance or resolution governing the filing of returns, reports,	2309
or documents.	2310

(M) When income tax returns, reports, or other documents	2311
require the signature of a tax return preparer, the tax	2312
administrator shall accept a facsimile of such a signature in lieu	2313
of a manual signature.	2314

Sec. 718.051. (A) As used in this section, "Ohio business	2315
gateway" means the online computer network system, initially	2316
created by the department of administrative services under section	2317
125.30 of the Revised Code, that allows private businesses to	2318
electronically file business reply forms with state agencies and	2319
includes any successor electronic filing and payment system.	2320

(B) Notwithstanding section 718.05 of the Revised Code, on	2321
and after January 1, 2005, any taxpayer that is subject to any	2322
municipal corporation's tax on the net profit from a business or	2323
profession and has received an extension to file the federal	2324
income tax return shall not be required to notify the municipal	2325
corporation of the federal extension and shall not be required to	2326
file any municipal income tax return until the last day of the	2327
month to which the due date for filing the federal return has been	2328
extended, provided that, on or before the date for filing the	2329
municipal income tax return, the person notifies the tax	2330
commissioner of the federal extension through the Ohio business	2331
gateway. An extension of time to file is not an extension of the	2332
time to pay any tax due.	2333

(C) For taxable years beginning on or after January 1, 2005,	2334
aAny taxpayer subject to any municipal corporation's tax on	2335
income taxation with respect to the taxpayer's net profit from a	2336
business or profession may file any municipal income tax return	2337
or, estimated municipal income tax return, or extension for filing	2338
a municipal income tax return, and may make payment of amounts	2339
shown to be due on such returns, by using the Ohio business	2340
gateway.	2341

(D)(1) As used in this division, "qualifying wages" has the	2342
same meaning as in section 718.03 of the Revised Code.	2343

(2)(B) Any employer, agent of an employer, or other payer may	2344
report the amount of municipal income tax withheld from qualifying	2345
wages paid on or after January 1, 2007, and may make remittance of	2346
such amounts, by using the Ohio business gateway.	2347

(E)(C) Nothing in this section affects the due dates for	2348
filing employer withholding tax returns.	2349

(F)(D) No municipal corporation shall be required to pay any	2350
fee or charge for the operation or maintenance of the Ohio	2351
business gateway.	2352

(G)(E) The use of the Ohio business gateway by municipal	2353
corporations, taxpayers, or other persons pursuant to this section	2354
does not affect the legal rights of municipalities or taxpayers as	2355
otherwise permitted by law. This state shall not be a party to the	2356
administration of municipal income taxes or to an appeal of a	2357
municipal income tax matter, except as otherwise specifically	2358
provided by law.	2359

(H)(F)(1) The tax commissioner shall adopt rules	2360
establishing:	2361

(a) The format of documents to be used by taxpayers to file	2362
returns and make payments through the Ohio business gateway; and	2363

(b) The information taxpayers must submit when filing	2364
municipal income tax returns through the Ohio business gateway.	2365

The commissioner shall not adopt rules under this division	2366
that conflict with the requirements of section 718.05 of the	2367
Revised Code.	2368

(2) The commissioner shall consult with the Ohio business	2369
gateway steering committee before adopting the rules described in	2370
division (H)(F)(1) of this section.	2371

(I)(G) Nothing in this section shall be construed as limiting	2372
or removing the abilityauthority of any municipal corporation to	2373
administer, audit, and enforce the provisions of its municipal	2374
income tax.	2375

Sec. 718.052.  (A) Each member of the national guard of any	2376
state and each member of a reserve component of the armed forces	2377
of the United States called to active duty pursuant to an	2378
executive order issued by the president of the United States or an	2379
act of the congress of the United States, and each civilian	2380
serving as support personnel in a combat zone or contingency	2381
operation in support of the armed forces, may apply to the tax	2382
administrator of a municipal corporation for both an extension of	2383
time for filing of the return and an extension of time for payment	2384
of taxes required by the municipal corporation in accordance with	2385
this chapter during the period of the member's or civilian's duty	2386
service and for one hundred eighty days thereafter. The	2387
application shall be filed on or before the one hundred eightieth	2388
day after the member's or civilian's duty terminates. An applicant	2389
shall provide such evidence as the tax administrator considers	2390
necessary to demonstrate eligibility for the extension.	2391

(B)(1) If the tax administrator ascertains that an applicant	2392
is qualified for an extension under this section, the tax	2393
administrator shall enter into a contract with the applicant for	2394
the payment of the tax in installments that begin on the one	2395
hundred eighty-first day after the applicant's active duty or	2396
service terminates. Except as provided in division (B)(3) of this	2397
section, the tax administrator may prescribe such contract terms	2398
as the tax administrator considers appropriate.	2399

(2) If the tax administrator ascertains that an applicant is	2400
qualified for an extension under this section, the applicant shall	2401
neither be required to file any return, report, or other tax	2402
document nor be required to pay any tax otherwise due to the	2403
municipal corporation before the one hundred eighty-first day	2404
after the applicant's active duty or service terminates.	2405

(3) Taxes paid pursuant to a contract entered into under	2406
division (B)(1) of this section are not delinquent. The tax	2407
administrator shall not require any payments of penalties or	2408
interest in connection with those taxes for the extension period.	2409

(C)(1) Nothing in this division denies to any person	2410
described in this division the application of divisions (A) and	2411
(B) of this section.	2412

(2)(a) A qualifying taxpayer who is eligible for an extension	2413
under the Internal Revenue Code shall receive both an extension of	2414
time in which to file any return, report, or other tax document	2415
and an extension of time in which to make any payment of taxes	2416
required by a municipal corporation in accordance with this	2417
chapter. The length of any extension granted under division	2418
(C)(2)(a) of this section shall be equal to the length of the	2419
corresponding extension that the taxpayer receives under the	2420
Internal Revenue Code. As used in this section, "qualifying	2421
taxpayer" means a member of the national guard or a member of a	2422
reserve component of the armed forces of the United States called	2423
to active duty pursuant to either an executive order issued by the	2424
president of the United States or an act of the congress of the	2425
United States, or a civilian serving as support personnel in a	2426
combat zone or contingency operation in support of the armed	2427
forces.	2428

(b) Taxes whose payment is extended in accordance with	2429
division (C)(2)(a) of this section are not delinquent during the	2430
extension period. Such taxes become delinquent on the first day	2431
after the expiration of the extension period if the taxes are not	2432
paid prior to that date. The tax administrator shall not require	2433
any payment of penalties or interest in connection with those	2434
taxes for the extension period. The tax administrator shall not	2435
include any period of extension granted under division (C)(2)(a)	2436
of this section in calculating the penalty or interest due on any	2437
unpaid tax.	2438

(D) For each taxable year to which division (A), (B), or (C)	2439
of this section applies to a taxpayer, the provisions of divisions	2440
(B)(2) and (3) or (C) of this section, as applicable, apply to the	2441
spouse of that taxpayer if the filing status of the spouse and the	2442
taxpayer is married filing jointly for that year.	2443

Sec. 718.06. (A) As used in this section:

2444

(1) "Affiliated group of corporations" means an affiliated	2445
group as defined in section 1504 of the Internal Revenue Code,	2446
except that, if such a group includes at least one incumbent local	2447
exchange carrier that is primarily engaged in the business of	2448
providing local exchange telephone service in this state, the	2449
affiliated group shall not include any incumbent local exchange	2450
carrier that would otherwise be included in the group.	2451

(2) "Consolidated federal income tax return" means a	2452
consolidated return filed for federal income tax purposes pursuant	2453
to section 1501 of the Internal Revenue Code.	2454

(3) "Consolidated federal taxable income" means the	2455
consolidated taxable income of an affiliated group of	2456
corporations, as computed for the purposes of filing a	2457
consolidated federal income tax return, before consideration of	2458
net operating losses or special deductions. "Consolidated federal	2459
taxable income" does not include income or loss of an incumbent	2460
local exchange carrier that is excluded from the affiliated group	2461
under division (A)(1) of this section.	2462

(4) "Incumbent local exchange carrier" has the same meaning	2463
as in section 4927.01 of the Revised Code.	2464

(5) "Local exchange telephone service" has the same meaning	2465
as in section 5727.01 of the Revised Code.	2466

(B)(1) For taxable years beginning on or after January 1,	2467
2016, a taxpayer that is a member of an affiliated group of	2468
corporations may elect to file a consolidated municipal income tax	2469
return for a taxable year if at least one member of the affiliated	2470
group of corporations is subject to the municipal income tax in	2471
that taxable year and if the affiliated group of corporations	2472
filed a consolidated federal income tax return with respect to	2473
that taxable year. The election is binding for a five-year period	2474
beginning with the first taxable year of the initial election	2475
unless a change in the reporting method is required under federal	2476
law. The election continues to be binding for each subsequent	2477
five-year period unless the taxpayer elects to discontinue filing	2478
consolidated municipal income tax returns under division (B)(2) of	2479
this section or a taxpayer receives permission from the tax	2480
administrator. The tax administrator shall approve such a request	2481
for good cause shown.	2482

(2) An election to discontinue filing consolidated municipal	2483
income tax returns under this section must be made in the first	2484
year following the last year of a five-year consolidated municipal	2485
income tax return election period in effect under division (B)(1)	2486
of this section. The election to discontinue filing a consolidated	2487
municipal income tax return is binding for a five-year period	2488
beginning with the first taxable year of the election.	2489

(3) An election made under division (B)(1) or (2) of this	2490
section is binding on all members of the affiliated group of	2491
corporations subject to a municipal income tax.	2492

(C) A taxpayer that is a member of an affiliated group of	2493
corporations that filed a consolidated federal income tax return	2494
for a taxable year shall file a consolidated municipal income tax	2495
return for that taxable year if the tax administrator determines,	2496
by a preponderance of the evidence, that intercompany transactions	2497
have not been conducted at arm's length and that there has been a	2498
distortive shifting of income or expenses with regard to	2499
allocation of net profits to the municipal corporation. A taxpayer	2500
that is required to file a consolidated municipal income tax	2501
return for a taxable year shall file a consolidated municipal	2502
income tax return for all subsequent taxable years unless the	2503
taxpayer requests and receives written permission from the tax	2504
administrator to file a separate return or a taxpayer has	2505
experienced a change in circumstances.	2506

(D) A taxpayer shall prepare a consolidated municipal income	2507
tax return in the same manner as is required under the United	2508
States department of treasury regulations that prescribe	2509
procedures for the preparation of the consolidated federal income	2510
tax return required to be filed by the common parent of the	2511
affiliated group of which the taxpayer is a member.	2512

(E)(1) Except as otherwise provided in divisions (E)(2), (3),	2513
and (4) of this section, corporations that file a consolidated	2514
municipal income tax return shall compute adjusted federal taxable	2515
income, as defined in section 718.01 of the Revised Code, by	2516
substituting "consolidated federal taxable income" for "federal	2517
taxable income" wherever "federal taxable income" appears in that	2518
division and by substituting "an affiliated group of	2519
corporation's" for "a C corporation's" wherever "a C	2520
corporation's" appears in that division.	2521

(2) No corporation filing a consolidated municipal income tax	2522
return shall make any adjustment otherwise required under division	2523
(E) of section 718.01 of the Revised Code to the extent that the	2524
item of income or deduction otherwise subject to the adjustment	2525
has been eliminated or consolidated in the computation of	2526
consolidated federal taxable income.	2527

(3) If the net profit or loss of a pass-through entity having	2528
at least eighty per cent of the value of its ownership interest	2529
owned or controlled, directly or indirectly, by an affiliated	2530
group of corporations is included in that affiliated group's	2531
consolidated federal taxable income for a taxable year, the	2532
corporation filing a consolidated municipal income tax return	2533
shall do one of the following with respect to that pass-through	2534
entity's net profit or loss for that taxable year:	2535

(a) Exclude the pass-through entity's net profit or loss from	2536
the consolidated federal taxable income of the affiliated group	2537
and, for the purpose of making the computations required in	2538
section 718.02 of the Revised Code, exclude the property, payroll,	2539
and gross receipts of the pass-through entity in the computation	2540
of the affiliated group's net profit sitused to a municipal	2541
corporation. If the entity's net profit or loss is so excluded,	2542
the entity shall be subject to taxation as a separate taxpayer on	2543
the basis of the entity's net profits that would otherwise be	2544
included in the consolidated federal taxable income of the	2545
affiliated group.	2546

(b) Include the pass-through entity's net profit or loss in	2547
the consolidated federal taxable income of the affiliated group	2548
and, for the purpose of making the computations required in	2549
section 718.02 of the Revised Code, include the property, payroll,	2550
and gross receipts of the pass-through entity in the computation	2551
of the affiliated group's net profit sitused to a municipal	2552
corporation. If the entity's net profit or loss is so included,	2553
the entity shall not be subject to taxation as a separate taxpayer	2554
on the basis of the entity's net profits that are included in the	2555
consolidated federal taxable income of the affiliated group.	2556

(4) If the net profit or loss of a pass-through entity having	2557
less than eighty per cent of the value of its ownership interest	2558
owned or controlled, directly or indirectly, by an affiliated	2559
group of corporations is included in that affiliated group's	2560
consolidated federal taxable income for a taxable year, all of the	2561
following shall apply:	2562

(a) The corporation filing the consolidated municipal income	2563
tax return shall exclude the pass-through entity's net profit or	2564
loss from the consolidated federal taxable income of the	2565
affiliated group and, for the purposes of making the computations	2566
required in section 718.02 of the Revised Code, exclude the	2567
property, payroll, and gross receipts of the pass-through entity	2568
in the computation of the affiliated group's net profit sitused to	2569
a municipal corporation;	2570

(b) The pass-through entity shall be subject to municipal	2571
income taxation as a separate taxpayer in accordance with this	2572
chapter on the basis of the entity's net profits that would	2573
otherwise be included in the consolidated federal taxable income	2574
of the affiliated group.	2575

(F) Corporations filing a consolidated municipal income tax	2576
return shall make the computations required under section 718.02	2577
of the Revised Code by substituting "consolidated federal taxable	2578
income attributable to" for "net profit from" wherever "net profit	2579
from" appears in that section and by substituting "affiliated	2580
group of corporations" for "taxpayer" wherever "taxpayer" appears	2581
in that section.	2582

(G) Each corporation filing a consolidated municipal income	2583
tax return is jointly and severally liable for any tax, interest,	2584
penalties, fines, charges, or other amounts imposed by a municipal	2585
corporation in accordance with this chapter on the corporation, an	2586
affiliated group of which the corporation is a member for any	2587
portion of the taxable year, or any one or more members of such an	2588
affiliated group.	2589

(H) Corporations and their affiliates that made an election	2590
or entered into an agreement with a municipal corporation before	2591
January 1, 2016, to file a consolidated or combined tax return	2592
with such municipal corporation may continue to file consolidated	2593
or combined tax returns in accordance with such election or	2594
agreement for taxable years beginning on and after January 1,	2595
2016.	2596

Sec. 718.08.  (A) As used in this section:

2597

(1) "Estimated taxes" means the amount that the taxpayer	2598
reasonably estimates to be the taxpayer's tax liability for a	2599
municipal corporation's income tax for the current taxable year.	2600

(2) "Tax liability" means the total taxes due to a municipal	2601
corporation for the taxable year, after allowing any credit to	2602
which the taxpayer is entitled, and after applying any estimated	2603
tax payment, withholding payment, or credit from another taxable	2604
year.	2605

(B)(1) Except as provided in division (F) of this section,	2606
every taxpayer shall make a declaration of estimated taxes for the	2607
current taxable year, on the form prescribed by the tax	2608
administrator, if the amount payable as estimated taxes is at	2609
least two hundred dollars. For the purposes of this section:	2610

(a) Taxes withheld from qualifying wages shall be considered	2611
as paid to the municipal corporation for which the taxes were	2612
withheld in equal amounts on each payment date unless the taxpayer	2613
establishes the dates on which all amounts were actually withheld,	2614
in which case the amounts withheld shall be considered as paid on	2615
the dates on which the amounts were actually withheld.	2616

(b) An overpayment of tax applied as a credit to a subsequent	2617
taxable year is deemed to be paid on the date of the postmark	2618
stamped on the cover in which the payment is mailed or, if the	2619
payment is made by electronic funds transfer, the date the payment	2620
is submitted. As used in this division, "date of the postmark"	2621
means, in the event there is more than one date on the cover, the	2622
earliest date imprinted on the cover by the postal service.	2623

(c) Taxes withheld by a casino operator or by a lottery sales	2624
agent under section 718.031 of the Revised Code are deemed to be	2625
paid to the municipal corporation for which the taxes were	2626
withheld on the date the taxes are withheld from the taxpayer's	2627
winnings.	2628

(2) Except as provided in division (F) of this section,	2629
taxpayers filing joint returns shall file joint declarations of	2630
estimated taxes. A taxpayer may amend a declaration under rules	2631
prescribed by the tax administrator. Except as provided in	2632
division (F) of this section, a taxpayer having a taxable year of	2633
less than twelve months shall make a declaration under rules	2634
prescribed by the tax administrator.	2635

(3) The declaration of estimated taxes shall be filed on or	2636
before the date prescribed for the filing of municipal income tax	2637
returns under division (G) of section 718.05 of the Revised Code	2638
or on or before the fifteenth day of the fourth month after the	2639
taxpayer becomes subject to tax for the first time.	2640

(4) Taxpayers reporting on a fiscal year basis shall file a	2641
declaration on or before the fifteenth day of the fourth month	2642
after the beginning of each fiscal year or period.	2643

(5) The original declaration or any subsequent amendment may	2644
be increased or decreased on or before any subsequent quarterly	2645
payment day as provided in this section.	2646

(C)(1) The required portion of the tax liability for the	2647
taxable year that shall be paid through estimated taxes made	2648
payable to the municipal corporation or tax administrator,	2649
including the application of tax refunds to estimated taxes and	2650
withholding on or before the applicable payment date, shall be as	2651
follows:	2652

(a) On or before the fifteenth day of the fourth month after	2653
the beginning of the taxable year, twenty-two and one-half per	2654
cent of the tax liability for the taxable year;	2655

(b) On or before the fifteenth day of the sixth month after	2656
the beginning of the taxable year, forty-five per cent of the tax	2657
liability for the taxable year;	2658

(c) On or before the fifteenth day of the ninth month after	2659
the beginning of the taxable year, sixty-seven and one-half per	2660
cent of the tax liability for the taxable year;	2661

(d) On or before the fifteenth day of the twelfth month of	2662
the taxable year, ninety per cent of the tax liability for the	2663
taxable year.	2664

(2) When an amended declaration has been filed, the unpaid	2665
balance shown due on the amended declaration shall be paid in	2666
equal installments on or before the remaining payment dates.	2667

(3) On or before the fifteenth day of the fourth month of the	2668
year following that for which the declaration or amended	2669
declaration was filed, an annual return shall be filed and any	2670
balance which may be due shall be paid with the return in	2671
accordance with section 718.05 of the Revised Code.	2672

(D)(1) In the case of any underpayment of any portion of a	2673
tax liability, penalty and interest may be imposed pursuant to	2674
section 718.27 of the Revised Code upon the amount of underpayment	2675
for the period of underpayment, unless the underpayment is due to	2676
reasonable cause as described in division (E) of this section. The	2677
amount of the underpayment shall be determined as follows:	2678

(a) For the first payment of estimated taxes each year,	2679
twenty-two and one-half per cent of the tax liability, less the	2680
amount of taxes paid by the date prescribed for that payment;	2681

(b) For the second payment of estimated taxes each year,	2682
forty-five per cent of the tax liability, less the amount of taxes	2683
paid by the date prescribed for that payment;	2684

(c) For the third payment of estimated taxes each year,	2685
sixty-seven and one-half per cent of the tax liability, less the	2686
amount of taxes paid by the date prescribed for that payment;	2687

(d) For the fourth payment of estimated taxes each year,	2688
ninety per cent of the tax liability, less the amount of taxes	2689
paid by the date prescribed for that payment.	2690

(2) The period of the underpayment shall run from the day the	2691
estimated payment was required to be made to the date on which the	2692
payment is made. For purposes of this section, a payment of	2693
estimated taxes on or before any payment date shall be considered	2694
a payment of any previous underpayment only to the extent the	2695
payment of estimated taxes exceeds the amount of the payment	2696
presently required to be paid to avoid any penalty.	2697

(E) An underpayment of any portion of tax liability	2698
determined under division (D) of this section shall be due to	2699
reasonable cause and the penalty imposed by this section shall not	2700
be added to the taxes for the taxable year if any of the following	2701
apply:	2702

(1) The amount of estimated taxes that were paid equals at	2703
least ninety per cent of the tax liability for the current taxable	2704
year, determined by annualizing the income received during the	2705
year up to the end of the month immediately preceding the month in	2706
which the payment is due.	2707

(2) The amount of estimated taxes that were paid equals at	2708
least one hundred per cent of the tax liability shown on the	2709
return of the taxpayer for the preceding taxable year, provided	2710
that the immediately preceding taxable year reflected a period of	2711
twelve months and the taxpayer filed a return with the municipal	2712
corporation under section 718.05 of the Revised Code for that	2713
year.	2714

(3) The taxpayer is an individual who resides in the	2715
municipal corporation but was not domiciled there on the first day	2716
of January of the calendar year that includes the first day of the	2717
taxable year.	2718

(F)(1) A tax administrator may waive the requirement for	2719
filing a declaration of estimated taxes for any class of taxpayers	2720
after finding that the waiver is reasonable and proper in view of	2721
administrative costs and other factors.	2722

(2) A municipal corporation may, by ordinance or rule, waive	2723
the requirement for filing a declaration of estimated taxes for	2724
all taxpayers.	2725

Sec. 718.09.  (A) This section applies to either of the	2726
following:	2727

(1) A municipal corporation that shares the same territory as	2728
a city, local, or exempted village school district, to the extent	2729
that not more than five per cent of the territory of the municipal	2730
corporation is located outside the school district and not more	2731
than five per cent of the territory of the school district is	2732
located outside the municipal corporation;	2733

(2) A municipal corporation that shares the same territory as	2734
a city, local, or exempted village school district, to the extent	2735
that not more than five per cent of the territory of the municipal	2736
corporation is located outside the school district, more than five	2737
per cent but not more than ten per cent of the territory of the	2738
school district is located outside the municipal corporation, and	2739
that portion of the territory of the school district that is	2740
located outside the municipal corporation is located entirely	2741
within another municipal corporation having a population of four	2742
hundred thousand or more according to the federal decennial census	2743
most recently completed before the agreement is entered into under	2744
division (B) of this section.	2745

(B) The legislative authority of a municipal corporation to	2746
which this section applies may propose to the electors an income	2747
tax, one of the purposes of which shall be to provide financial	2748
assistance to the school district through payment to the district	2749
of not less than twenty-five per cent of the revenue generated by	2750
the tax, except that the legislative authority may not propose to	2751
levy the income tax on the incomes of nonresident individuals.	2752
Prior to proposing the tax, the legislative authority shall	2753
negotiate and enter into a written agreement with the board of	2754
education of the school district specifying the tax rate, the	2755
percentage of tax revenue to be paid to the school district, the	2756
purpose for which the school district will use the money, the	2757
first year the tax will be levied, which shall be the first year	2758
after the year in which the levy is approved or any later year,	2759
the date of the special election on the question of the tax, and	2760
the method and schedule by which the municipal corporation will	2761
make payments to the school district. The special election shall	2762
be held on a day specified in division (D) of section 3501.01 of	2763
the Revised Code, except that the special election may not be held	2764
on the day for holding a primary election as authorized by the	2765
municipal corporation's charter unless the municipal corporation	2766
is to have a primary election on that day.	2767

After the legislative authority and board of education have	2768
entered into the agreement, the legislative authority shall	2769
provide for levying the tax by ordinance. The ordinance shall	2770
include the provisions described in division (A) of section 718.04	2771
of the Revised Code and shall state the tax rate, the percentage	2772
of tax revenue to be paid to the school district, the purpose for	2773
which the municipal corporation will use its share of the tax	2774
revenue, the first year the tax will be levied, and that the	2775
question of the income tax will be submitted to the electors of	2776
the municipal corporation. The legislative authority also shall	2777
adopt a resolution specifying the regular or special election date	2778
the election will be held and directing the board of elections to	2779
conduct the election. At least ninety days before the date of the	2780
election, the legislative authority shall file certified copies of	2781
the ordinance and resolution with the board of elections.	2782

(C) The board of elections shall make the necessary	2783
arrangements for the submission of the question to the electors of	2784
the municipal corporation, and shall conduct the election in the	2785
same manner as any other municipal income tax election. Notice of	2786
the election shall be published in a newspaper of general	2787
circulation in the municipal corporation once a week for four	2788
consecutive weeks, or as provided in section 7.16 of the Revised	2789
Code, prior to the election, and shall include statements of the	2790
rate and municipal corporation and school district purposes of the	2791
income tax, the percentage of tax revenue that will be paid to the	2792
school district, and the first year the tax will be levied. The	2793
ballot shall be in the following form:	2794

"Shall the ordinance providing for a ..... per cent levy on	2795
income for (brief description of the municipal corporation and	2796
school district purposes of the levy, including a statement of the	2797
percentage of tax revenue that will be paid to the school	2798
district) be passed? The income tax, if approved, will not be	2799
levied on the incomes of individuals who do not reside in (the	2800
name of the municipal corporation).	2801

2802

		For the income tax			2803
		Against the income tax	"		2804

2805

(D) If the question is approved by a majority of the	2806
electors, the municipal corporation shall impose the income tax	2807
beginning inon the first day of January of the year specified in	2808
the ordinance. The proceeds of the levy may be used only for the	2809
specified purposes, including payment of the specified percentage	2810
to the school district.	2811

Sec. 718.10.  (A) This section applies to a group of two or	2812
more municipal corporations that, taken together, share the same	2813
territory as a single city, local, or exempted village school	2814
district, to the extent that not more than five per cent of the	2815
territory of the municipal corporations as a group is located	2816
outside the school district and not more than five per cent of the	2817
territory of the school district is located outside the municipal	2818
corporations as a group.	2819

(B) The legislative authorities of the municipal corporations	2820
in a group of municipal corporations to which this section applies	2821
each may propose to the electors an income tax, to be levied in	2822
concert with income taxes in the other municipal corporations of	2823
the group, except that a legislative authority may not propose to	2824
levy the income tax on the incomes of individuals who do not	2825
reside in the municipal corporation. One of the purposes of such a	2826
tax shall be to provide financial assistance to the school	2827
district through payment to the district of not less than	2828
twenty-five per cent of the revenue generated by the tax. Prior to	2829
proposing the taxes, the legislative authorities shall negotiate	2830
and enter into a written agreement with each other and with the	2831
board of education of the school district specifying the tax rate,	2832
the percentage of the tax revenue to be paid to the school	2833
district, the first year the tax will be levied, which shall be	2834
the first year after the year in which the levy is approved or any	2835
later year, and the date of the election on the question of the	2836
tax, all of which shall be the same for each municipal	2837
corporation. The agreement also shall state the purpose for which	2838
the school district will use the money, and specify the method and	2839
schedule by which each municipal corporation will make payments to	2840
the school district. The special election shall be held on a day	2841
specified in division (D) of section 3501.01 of the Revised Code,	2842
including a day on which all of the municipal corporations are to	2843
have a primary election.	2844

After the legislative authorities and board of education have	2845
entered into the agreement, each legislative authority shall	2846
provide for levying its tax by ordinance. Each ordinance shall	2847
include the provisions described in division (A) of section 718.04	2848
of the Revised Code and shall state the rate of the tax, the	2849
percentage of tax revenue to be paid to the school district, the	2850
purpose for which the municipal corporation will use its share of	2851
the tax revenue, and the first year the tax will be levied. Each	2852
ordinance also shall state that the question of the income tax	2853
will be submitted to the electors of the municipal corporation on	2854
the same date as the submission of questions of an identical tax	2855
to the electors of each of the other municipal corporations in the	2856
group, and that unless the electors of all of the municipal	2857
corporations in the group approve the tax in their respective	2858
municipal corporations, none of the municipal corporations in the	2859
group shall levy the tax. Each legislative authority also shall	2860
adopt a resolution specifying the regular or special election date	2861
the election will be held and directing the board of elections to	2862
conduct the election. At least ninety days before the date of the	2863
election, each legislative authority shall file certified copies	2864
of the ordinance and resolution with the board of elections.	2865

(C) For each of the municipal corporations, the board of	2866
elections shall make the necessary arrangements for the submission	2867
of the question to the electors, and shall conduct the election in	2868
the same manner as any other municipal income tax election. For	2869
each of the municipal corporations, notice of the election shall	2870
be published in a newspaper of general circulation in the	2871
municipal corporation once a week for four consecutive weeks, or	2872
as provided in section 7.16 of the Revised Code, prior to the	2873
election. The notice shall include a statement of the rate and	2874
municipal corporation and school district purposes of the income	2875
tax, the percentage of tax revenue that will be paid to the school	2876
district, and the first year the tax will be levied, and an	2877
explanation that the tax will not be levied unless an identical	2878
tax is approved by the electors of each of the other municipal	2879
corporations in the group. The ballot shall be in the following	2880
form:	2881

"Shall the ordinance providing for a ... per cent levy on	2882
income for (brief description of the municipal corporation and	2883
school district purposes of the levy, including a statement of the	2884
percentage of income tax revenue that will be paid to the school	2885
district) be passed? The income tax, if approved, will not be	2886
levied on the incomes of individuals who do not reside in (the	2887
name of the municipal corporation). In order for the income tax to	2888
be levied, the voters of (the other municipal corporations in the	2889
group), which are also in the (name of the school district) school	2890
district, must approve an identical income tax and agree to pay	2891
the same percentage of the tax revenue to the school district.	2892

2893

		For the income tax			2894
		Against the income tax	"		2895

2896

(D) If the question is approved by a majority of the electors	2897
and identical taxes are approved by a majority of the electors in	2898
each of the other municipal corporations in the group, the	2899
municipal corporation shall impose the tax beginning inon the	2900
first day of January of the year specified in the ordinance. The	2901
proceeds of the levy may be used only for the specified purposes,	2902
including payment of the specified percentage to the school	2903
district.	2904

Sec. 718.11. (A)(1) The legislative authority of each	2905
municipal corporation that imposes a tax on income in accordance	2906
with this chapter shall maintain a local board of tax review to	2907
hear appeals as provided in this section. The legislative	2908
authority of any municipal corporation that does not impose a tax	2909
on income on the effective date of this amendmentJune 26, 2003,	2910
but that imposes such a tax after that date, shall establish such	2911
a board by ordinance not later than one hundred eighty days after	2912
the tax takes effect.	2913

(2) The local board of tax review shall consist of three	2914
members. Two members shall be appointed by the legislative	2915
authority of the municipal corporation, but such appointees may	2916
not be employees, elected officials, or contractors with the	2917
municipal corporation at any time during their term or in the five	2918
years immediately preceding the date of appointment. One member	2919
shall be appointed by the top administrative official of the	2920
municipal corporation. This member may be an employee of the	2921
municipal corporation, but may not be the director of finance or	2922
equivalent officer, or the tax administrator or other similar	2923
official or an employee directly involved in municipal tax	2924
matters, or any direct subordinate thereof.	2925

(3) The term for members of the local board of tax review	2926
appointed by the legislative authority of the municipal	2927
corporation shall be two years. There is no limit on the number of	2928
terms that a member may serve if the member is reappointed by the	2929
legislative authority. The board member appointed by the top	2930
administrative official of the municipal corporation shall serve	2931
at the discretion of the administrative official.	2932

(4) Members of the board of tax review appointed by the	2933
legislative authority may be removed by the legislative authority	2934
by majority vote for malfeasance, misfeasance, or nonfeasance in	2935
office. To remove such a member, the legislative authority must	2936
give the member a copy of the charges against the member and	2937
afford the member an opportunity to be publicly heard in person or	2938
by counsel in the member's own defense upon not less than ten	2939
days' notice. The decision by the legislative authority on the	2940
charges is final and not appealable.	2941

(5) A member of the board who, for any reason, ceases to meet	2942
the qualifications for the position prescribed by this section	2943
shall resign immediately by operation of law.	2944

(6) A vacancy in an unexpired term shall be filled in the	2945
same manner as the original appointment within sixty days of when	2946
the vacancy was created. Any member appointed to fill a vacancy	2947
occurring prior to the expiration of the term for which the	2948
member's predecessor was appointed shall hold office for the	2949
remainder of such term. No vacancy on the board shall impair the	2950
power and authority of the remaining members to exercise all the	2951
powers of the board.	2952

(7) If a member is temporarily unable to serve on the board	2953
due to a conflict of interest, illness, absence, or similar	2954
reason, the legislative authority or top administrative official	2955
that appointed the member shall appoint another individual to	2956
temporarily serve on the board in the member's place. The	2957
appointment of such an individual shall be subject to the same	2958
requirements and limitations as are applicable to the appointment	2959
of the member temporarily unable to serve.	2960

(B) Whenever a written determination by the tax administrator	2961
issues a decision regarding a municipal income tax obligation that	2962
is subject to appeal as provided in this section or in an	2963
ordinance or regulation of the municipal corporationis issued,	2964
the tax administrator shall notify the taxpayer in writing at the	2965
same time of the taxpayer's right to appeal the decision and of	2966
written determination, the manner in which the taxpayer may appeal	2967
the decisionruling, and the address to which the appeal should be	2968
directed.	2969

(C) Any person who is aggrieved by a decision by the tax	2970
administrator and who has filed with the municipal corporation the	2971
required returns or other documents pertaining to the municipal	2972
income tax obligation at issue in the decisionhas been issued a	2973
written determination by the tax administrator may appeal the	2974
decisionruling to the board created pursuant to this section by	2975
filing a request with the board. The request shall be in writing,	2976
shall statespecify the reason or reasons why the decisionruling	2977
should be deemed incorrect or unlawful, and shall be filed within	2978
thirtysixty days after the tax administrator issuestaxpayer	2979
receives the decision complained ofruling.	2980

(D) The local board of tax review shall schedule a hearing to	2981
be held within forty-fivesixty days after receiving the request	2982
an appeal of a written determination by the tax administrator	2983
under division (C) of this section, unless the taxpayer requests	2984
additional time to prepare or waives a hearing. If the taxpayer	2985
does not waive the hearing, the taxpayer may appear before the	2986
board and may be represented by an attorney at law, certified	2987
public accountant, or other representative. The board may allow a	2988
hearing to be continued as jointly agreed to by the parties. In	2989
such a case, the hearing must be completed within one hundred	2990
twenty days after the first day of the hearing unless the parties	2991
agree otherwise.	2992

(E) The board may affirm, reverse, or modify the tax	2993
administrator's decisiona written determination by the tax	2994
administrator or any part of that decisionruling. The board	2995
shall issue a final decision on the appeal within ninety days	2996
after the board's final hearing on the appeal, and send a copy of	2997
its final decision by ordinary mail to all of the parties to the	2998
appeal within fifteen days after issuing the decision. The	2999
taxpayer or the tax administrator may appeal the board's decision	3000
as provided in section 5717.011 of the Revised Code.	3001

Each(F) The local board of appealtax review created	3002
pursuant to this section shall adopt rules governing its	3003
procedures and shall keep a record of its transactions. Such	3004
records are not public records available for inspection under	3005
section 149.43 of the Revised Code. Hearings requested by a	3006
taxpayer before a local board of appealtax review created	3007
pursuant to this section are not meetings of a public body subject	3008
to section 121.22 of the Revised Code.	3009

Sec. 718.12.  (A)(1)(a) Civil actions to recover municipal	3010
income taxes and penalties and interest on municipal income taxes	3011
shall be brought within the later of:	3012

(i) Three years after the tax was due or the return was	3013
filed, whichever is later; or	3014

(ii) One year after the conclusion of the qualifying deferral	3015
period, if any.	3016

(b) The time limit described in division (A)(1)(a) of this	3017
section may be extended at any time if both the tax administrator	3018
and the employer, agent of the employer, other payer, or taxpayer	3019
consent in writing to the extension. Any extension shall also	3020
extend for the same period of time the time limit described in	3021
division (C) of this section.	3022

(2) As used in this section, "qualifying deferral period"	3023
means a period of time beginning and ending as follows:	3024

(a) Beginning on the date a person who is aggrieved by a	3025
written determination by the tax administrator files with a local	3026
board of tax review the request described in section 718.11 of the	3027
Revised Code. That date shall not be affected by any subsequent	3028
decision, finding, or holding by any administrative body or court	3029
that the local board of tax review with which the aggrieved person	3030
filed the request did not have jurisdiction to affirm, reverse, or	3031
modify the written determination by the tax administrator or any	3032
part of that determination.	3033

(b) Ending the later of the sixtieth day after the date on	3034
which the decision of the local board of tax review becomes final	3035
or, if any party appeals from the decision of the local board of	3036
tax review, the sixtieth day after the date on which the decision	3037
of the local board of tax review is either ultimately affirmed in	3038
whole or in part or ultimately reversed and no further appeal of	3039
either that affirmation, in whole or in part, or that reversal is	3040
available or taken.	3041

(B) Prosecutions for an offense made punishable under a	3042
resolution or ordinance imposing an income tax shall be commenced	3043
within three years after the commission of the offense, provided	3044
that in the case of fraud, failure to file a return, or the	3045
omission of twenty-five per cent or more of income required to be	3046
reported, prosecutions may be commenced within six years after the	3047
commission of the offense.	3048

(C) A claim for a refund of municipal income taxes shall be	3049
brought within the time limitation provided in section 718.19 of	3050
the Revised Code.	3051

(D) Interest shall be allowed and paid on any overpayment by	3052
a taxpayer of any municipal income tax obligation from the date of	3053
the overpayment until the date of the refund of the overpayment,	3054
except that if any overpayment is refunded within ninety days	3055
after the final filing date of the annual return or ninety days	3056
after the completed return is filed, whichever is later, no	3057
interest shall be allowed on the refund. For the purpose of	3058
computing the payment of interest on amounts overpaid, no amount	3059
of tax for any taxable year shall be considered to have been paid	3060
before the date on which the return on which the tax is reported	3061
is due, without regard to any extension of time for filing that	3062
return. Interest shall be paid at the interest rate described in	3063
division (A)(5) of section 718.27 of the Revised Code.	3064

(E) Within sixty days after the final determination of any	3065
federal or state tax liability affecting the taxpayer's municipal	3066
tax liability, that taxpayer shall make and file an amended	3067
municipal return showing income subject to the municipal income	3068
tax based upon such final determination of federal or state tax	3069
liability, and pay any additional municipal income tax shown due	3070
thereon or make a claim for refund of any overpayment, unless the	3071
tax or overpayment is less than ten dollars.	3072

(F)(1) Notwithstanding the fact that an appeal is pending,	3073
the petitioner may pay all or a portion of the written	3074
determination by the tax administrator that is the subject of the	3075
appeal. The acceptance of a payment by the municipal corporation	3076
does not prejudice any claim for refund upon final determination	3077
of the appeal.	3078

(2) If upon final determination of the appeal an error in the	3079
written determination by the tax administrator is corrected by the	3080
tax administrator, upon an appeal so filed or pursuant to a	3081
decision of the local board of tax review created under section	3082
718.11 of the Revised Code, of the Ohio board of tax appeals, or	3083
any court to which the decision of the Ohio board of tax appeals	3084
has been appealed, so that the amount due from the party assessed	3085
under the corrected written determination is less than the amount	3086
paid, there shall be issued to the appellant or to the appellant's	3087
assigns or legal representative a refund in the amount of the	3088
overpayment as provided by section 718.19 of the Revised Code,	3089
with interest on that amount as provided by division (D) of this	3090
section.	3091

(G) No civil action to recover municipal income tax or	3092
related penalties or interest shall be brought during either of	3093
the following time periods:	3094

(1) The period during which a taxpayer has a right to appeal	3095
the imposition of that tax or interest or those penalties;	3096

(2) The period during which an appeal related to the	3097
imposition of that tax or interest or those penalties is pending.	3098

Sec. 718.121. (A) Except as provided in division (B) of this	3099
section, if tax or withholding is paid to a municipal corporation	3100
on income or wages, and if a second municipal corporation imposes	3101
or assesses a tax on that income or wages after the time period	3102
allowed for a refund of the tax or withholding paid to the first	3103
municipal corporation, the second municipal corporation shall	3104
allow a nonrefundable credit, against the tax or withholding the	3105
second municipality claims is due with respect to such income or	3106
wages, equal to the tax or withholding paid to the first municipal	3107
corporation with respect to such income or wages.	3108

(B) If the tax rate in the second municipal corporation is	3109
less than the tax rate in the first municipal corporation, then	3110
the credit described in division (A) of this section shall be	3111
calculated using the tax rate in effect in the second municipal	3112
corporation.	3113

(C) If the tax rate in the second municipal corporation is	3114
greater than the tax rate in the first municipal corporation, the	3115
tax due in excess of the credit afforded is to be paid to the	3116
second municipal corporation, along with any penalty and interest	3117
accruing thereto during the period of nonpayment.	3118

(D) Nothing in this section permits any credit carryforward.

3119

Sec. 718.13.  (A) Any information gained as a result of	3120
returns, investigations, hearings, or verifications required or	3121
authorized by this chapter or by a charter or ordinance of a	3122
municipal corporation levying an income tax pursuant to this	3123
chapter is confidential, and no person shall access or disclose	3124
such information except in accordance with a proper judicial order	3125
or in connection with the performance of that person's official	3126
duties or the official business of the municipal corporation as	3127
authorized by this chapter or the charter or ordinance authorizing	3128
the levy. The tax administrator of the municipal corporation or a	3129
designee thereof may furnish copies of returns filed or otherwise	3130
received under this chapter and other related tax information to	3131
the internal revenue service and to, the tax commissioner, and tax	3132
administrators of other municipal corporations.	3133

(B) This section does not prohibit the legislative authority	3134
of a municipal corporation, by ordinance or resolution, from	3135
authorizing the tax administrator to publishpublishing or	3136
disclosing statistics in a form that does not disclose information	3137
with respect to particular taxpayers.	3138

Sec. 718.19. (A) Upon receipt of a request for a refund, the	3139
tax administrator of a municipal corporation, in accordance with	3140
this section, shall refund to employers, agents of employers,	3141
other payers, or taxpayers, with respect to any income or	3142
withholding tax levied by the municipal corporation:	3143

(1) Overpayments of more than ten dollars;

3144

(2) Amounts paid erroneously if the refund requested exceeds	3145
ten dollars.	3146

(B)(1) Except as otherwise provided in this chapter, requests	3147
for refund shall be filed with the tax administrator, on the form	3148
prescribed by the tax administrator within three years after the	3149
tax was due or paid, whichever is later. The tax administrator may	3150
require the requestor to file with the request any documentation	3151
that substantiates the requestor's claim for a refund.	3152

(2) On filing of the refund request, the tax administrator	3153
shall determine the amount of refund due and certify such amount	3154
to the appropriate municipal corporation official for payment.	3155
Except as provided in division (B)(3) of this section, the	3156
administrator shall issue a written determination by the tax	3157
administrator to any taxpayer whose request for refund is fully or	3158
partially denied. The written determination shall state the amount	3159
of the refund that was denied, the reasons for the denial, and	3160
instructions for appealing the determination.	3161

(3) If a tax administrator denies in whole or in part a	3162
refund request included within the taxpayer's originally filed	3163
annual income tax return, the tax administrator shall notify the	3164
taxpayer, in writing, of the amount of the refund that was denied,	3165
the reasons for the denial, and instructions for requesting a	3166
written determination of the tax administrator that may be	3167
appealed under section 718.11 of the Revised Code.	3168

(C) A request for a refund that is received after the last	3169
day for filing specified in division (B) of this section shall be	3170
considered to have been filed in a timely manner if any of the	3171
following situations exist:	3172

(1) The request is delivered by the postal service, and the	3173
earliest postal service postmark on the cover in which the request	3174
is enclosed is not later than the last day for filing the request.	3175

(2) The request is delivered by the postal service, the only	3176
postmark on the cover in which the request is enclosed was affixed	3177
by a private postal meter, the date of that postmark is not later	3178
than the last day for filing the request, and the request is	3179
received within seven days of such last day.	3180

(3) The request is delivered by the postal service, no	3181
postmark date was affixed to the cover in which the request is	3182
enclosed or the date of the postmark so affixed is not legible,	3183
and the request is received within seven days of the last day for	3184
making the request.	3185

(D) As used in this section, "withholding tax" has the same	3186
meaning as in section 718.27 of the Revised Code.	3187

Sec. 718.23. (A) A tax administrator, or any authorized agent	3188
or employee thereof may examine the books, papers, records, and	3189
federal and state income tax returns of any employer, taxpayer, or	3190
other person that is subject to, or that the tax administrator	3191
believes is subject to, the provisions of this chapter for the	3192
purpose of verifying the accuracy of any return made or, if no	3193
return was filed, to ascertain the tax due under this chapter.	3194
Upon written request by the tax administrator or a duly authorized	3195
agent or employee thereof, every employer, taxpayer, or other	3196
person subject to this section is required to furnish the	3197
opportunity for the tax administrator, authorized agent, or	3198
employee to investigate and examine such books, papers, records,	3199
and federal and state income tax returns at a reasonable time and	3200
place designated in the request.	3201

(B) The records and other documents of any taxpayer,	3202
employer, or other person that is subject to, or that a tax	3203
administrator believes is subject to, the provisions of this	3204
chapter shall be open to the tax administrator's inspection during	3205
business hours and shall be preserved for a period of six years	3206
following the end of the taxable year to which the records or	3207
documents relate, unless the tax administrator, in writing,	3208
consents to their destruction within that period, or by order	3209
requires that they be kept longer. The tax administrator of a	3210
municipal corporation may require any person, by notice served on	3211
that person, to keep such records as the tax administrator	3212
determines necessary to show whether or not that person is liable,	3213
and the extent of such liability, for the income tax levied by the	3214
municipal corporation or for the withholding of such tax.	3215

(C) The tax administrator may examine under oath any person	3216
that the tax administrator reasonably believes has knowledge	3217
concerning any income that was or would have been returned for	3218
taxation or any transaction tending to affect such income. The tax	3219
administrator may, for this purpose, compel any such person to	3220
attend a hearing or examination and to produce any books, papers,	3221
records, and federal income tax returns in such person's	3222
possession or control. The person may be assisted or represented	3223
by an attorney, accountant, bookkeeper, or other tax practitioner	3224
at any such hearing or examination. This division does not	3225
authorize the practice of law by a person who is not an attorney.	3226

(D) No person issued written notice by the tax administrator	3227
compelling attendance at a hearing or examination or the	3228
production of books, papers, records, or federal income tax	3229
returns under this section shall fail to comply.	3230

Sec. 718.24.  Nothing in this chapter shall limit the	3231
authority of a tax administrator to perform any of the following	3232
duties or functions, unless the performance of such duties or	3233
functions is expressly limited by a provision of the Revised Code	3234
or the charter or ordinances of the municipal corporation:	3235

(A) Exercise all powers whatsoever of an inquisitorial nature	3236
as provided by law, including, the right to inspect books,	3237
accounts, records, memorandums, and federal and state income tax	3238
returns, to examine persons under oath, to issue orders or	3239
subpoenas for the production of books, accounts, papers, records,	3240
documents, and testimony, to take depositions, to apply to a court	3241
for attachment proceedings as for contempt, to approve vouchers	3242
for the fees of officers and witnesses, and to administer oaths;	3243
provided that the powers referred to in this division of this	3244
section shall be exercised by the tax administrator only in	3245
connection with the performance of the duties respectively	3246
assigned to the tax administrator under a municipal corporation	3247
income tax ordinance or resolution adopted in accordance with this	3248
chapter;	3249

(B) Appoint agents and prescribe their powers and duties;

3250

(C) Confer and meet with officers of other municipal	3251
corporations and states and officers of the United States on any	3252
matters pertaining to their respective official duties as provided	3253
by law;	3254

(D) Exercise the authority provided by law, including orders	3255
from bankruptcy courts, relative to remitting or refunding taxes,	3256
including penalties and interest thereon, illegally or erroneously	3257
imposed or collected, or for any other reason overpaid, and, in	3258
addition, the tax administrator may investigate any claim of	3259
overpayment and make a written statement of the tax	3260
administrator's findings, and, if the tax administrator finds that	3261
there has been an overpayment, approve and issue a refund payable	3262
to the taxpayer, the taxpayer's assigns, or legal representative	3263
as provided in this chapter;	3264

(E) Exercise the authority provided by law relative to	3265
consenting to the compromise and settlement of tax claims;	3266

(F) Exercise the authority provided by law relative to the	3267
use of alternative apportionment methods by taxpayers in	3268
accordance with section 718.02 of the Revised Code;	3269

(G) Make all tax findings, determinations, computations, and	3270
orders the tax administrator is by law authorized and required to	3271
make and, pursuant to time limitations provided by law, on the tax	3272
administrator's own motion, review, redetermine, or correct any	3273
tax findings, determinations, computations, or orders the tax	3274
administrator has made, but the tax administrator shall not	3275
review, redetermine, or correct any tax finding, determination,	3276
computation, or order which the tax administrator has made as to	3277
which an appeal has been filed with the local board of tax review	3278
or other appropriate tribunal, unless such appeal or application	3279
is withdrawn by the appellant or applicant, is dismissed, or is	3280
otherwise final;	3281

(H) Destroy any or all returns or other tax documents in the	3282
manner authorized by law;	3283

(I) Enter into an agreement with a taxpayer to simplify the	3284
withholding obligations described in section 718.03 of the Revised	3285
Code.	3286

Sec. 718.25.  A person may round to the nearest whole dollar	3287
all amounts the person is required to enter on any return, report,	3288
voucher, or other document required under this chapter. Any	3289
fractional part of a dollar that equals or exceeds fifty cents	3290
shall be rounded to the next whole dollar, and any fractional part	3291
of a dollar that is less than fifty cents shall be dropped. If a	3292
person chooses to round amounts entered on a document, the person	3293
shall round all amounts entered on the document.	3294

Sec. 718.26.  (A) Nothing in this chapter prohibits a tax	3295
administrator from requiring any person filing a tax document with	3296
the tax administrator to provide identifying information, which	3297
may include the person's social security number, federal employer	3298
identification number, or other identification number requested by	3299
the tax administrator. A person required by the tax administrator	3300
to provide identifying information that has experienced any change	3301
with respect to that information shall notify the tax	3302
administrator of the change before, or upon, filing the next tax	3303
document requiring the identifying information.	3304

(B) When transmitting or otherwise making use of a tax	3305
document that contains a person's social security number, the tax	3306
administrator shall take all reasonable measures necessary to	3307
ensure that the number is not capable of being viewed by the	3308
general public, including, when necessary, masking the number so	3309
that it is not readily discernible by the general public. The tax	3310
administrator shall not put a person's social security number on	3311
the outside of any material mailed to the person.	3312

(C)(1) If the tax administrator makes a request for	3313
identifying information and the tax administrator does not receive	3314
valid identifying information within thirty days of making the	3315
request, nothing in this chapter prohibits the tax administrator	3316
from imposing a penalty upon the person to whom the request was	3317
directed pursuant to section 718.27 of the Revised Code, in	3318
addition to any applicable penalty described in section 718.99 of	3319
the Revised Code.	3320

(2) If a person required by the tax administrator to provide	3321
identifying information does not notify the tax administrator of a	3322
change with respect to that information as required under division	3323
(A) of this section within thirty days after filing the next tax	3324
document requiring such identifying information, nothing in this	3325
chapter prohibits the tax administrator from imposing a penalty	3326
pursuant to section 718.27 of the Revised Code.	3327

(3) The penalties provided for under divisions (C)(1) and (2)	3328
of this section may be billed and imposed in the same manner as	3329
the tax or fee with respect to which the identifying information	3330
is sought and are in addition to any applicable criminal penalties	3331
described in section 718.99 of the Revised Code for a violation of	3332
section 718.35 of the Revised Code and any other penalties that	3333
may be imposed by the tax administrator by law.	3334

Sec. 718.27.  (A) As used in this section:

3335

(1) "Applicable law" means this chapter, the resolutions,	3336
ordinances, codes, directives, instructions, and rules adopted by	3337
a municipal corporation provided such resolutions, ordinances,	3338
codes, directives, instructions, and rules impose or directly or	3339
indirectly address the levy, payment, remittance, or filing	3340
requirements of a municipal income tax.	3341

(2) "Income tax," "estimated income tax," and "withholding	3342
tax" means any income tax, estimated income tax, and withholding	3343
tax imposed by a municipal corporation pursuant to applicable law,	3344
including at any time before January 1, 2016.	3345

(3) A "return" includes any tax return, report,	3346
reconciliation, schedule, and other document required to be filed	3347
with a tax administrator or municipal corporation by a taxpayer,	3348
employer, any agent of the employer, or any other payer pursuant	3349
to applicable law, including at any time before January 1, 2016.	3350

(4) "Federal short-term rate" means the rate of the average	3351
market yield on outstanding marketable obligations of the United	3352
States with remaining periods to maturity of three years or less,	3353
as determined under section 1274 of the Internal Revenue Code, for	3354
July of the current year.	3355

(5) "Interest rate as described in division (A) of this	3356
section" means the federal short-term rate, rounded to the nearest	3357
whole number per cent, plus five per cent. The rate shall apply	3358
for the calendar year next following the July of the year in which	3359
the federal short-term rate is determined in accordance with	3360
division (A)(4) of this section.	3361

(6) "Unpaid estimated income tax" means estimated income tax	3362
due but not paid by the date the tax is required to be paid under	3363
applicable law.	3364

(7) "Unpaid income tax" means income tax due but not paid by	3365
the date the income tax is required to be paid under applicable	3366
law.	3367

(8) "Unpaid withholding tax" means withholding tax due but	3368
not paid by the date the withholding tax is required to be paid	3369
under applicable law.	3370

(9) "Withholding tax" includes amounts an employer, any agent	3371
of an employer, or any other payer did not withhold in whole or in	3372
part from an employee's qualifying wages, but that, under	3373
applicable law, the employer, agent, or other payer is required to	3374
withhold from an employee's qualifying wages.	3375

(B)(1) This section applies to the following:

3376

(a) Any return required to be filed under applicable law for	3377
taxable years beginning on or after January 1, 2016;	3378

(b) Income tax, estimated income tax, and withholding tax	3379
required to be paid or remitted to the municipal corporation on or	3380
after January 1, 2016.	3381

(2) This section does not apply to returns required to be	3382
filed or payments required to be made before January 1, 2016,	3383
regardless of the filing or payment date. Returns required to be	3384
filed or payments required to be made before January 1, 2016, but	3385
filed or paid after that date shall be subject to the ordinances	3386
or rules, as adopted before January 1, 2016, of the municipal	3387
corporation to which the return is to be filed or the payment is	3388
to be made.	3389

(C) Each municipal corporation levying a tax on income may	3390
impose on a taxpayer, employer, any agent of the employer, and any	3391
other payer, and must attempt to collect, the interest amounts and	3392
penalties prescribed under division (C) of this section when the	3393
taxpayer, employer, any agent of the employer, or any other payer	3394
for any reason fails, in whole or in part, to make to the	3395
municipal corporation timely and full payment or remittance of	3396
income tax, estimated income tax, or withholding tax or to file	3397
timely with the municipal corporation any return required to be	3398
filed.	3399

(1) Interest shall be imposed at the rate described in	3400
division (A) of this section, per annum, on all unpaid income tax,	3401
unpaid estimated income tax, and unpaid withholding tax.	3402

(2)(a) With respect to unpaid income tax and unpaid estimated	3403
income tax, a municipal corporation may impose a penalty equal to	3404
fifteen per cent of the amount not timely paid.	3405

(b) With respect to any unpaid withholding tax, a municipal	3406
corporation may impose a penalty equal to fifty per cent of the	3407
amount not timely paid.	3408

(3) With respect to returns other than estimated income tax	3409
returns, a municipal corporation may impose a penalty of	3410
twenty-five dollars for each failure to timely file each return,	3411
regardless of the liability shown thereon for each month, or any	3412
fraction thereof, during which the return remains unfiled	3413
regardless of the liability shown thereon. The penalty shall not	3414
exceed one hundred fifty dollars for each failure.	3415

(D)(1) With respect to the income taxes, estimated income	3416
taxes, withholding taxes, and returns, no municipal corporation	3417
shall impose, seek to collect, or collect any penalty, amount of	3418
interest, charges, or additional fees not described in this	3419
section.	3420

(2) With respect to the income taxes, estimated income taxes,	3421
withholding taxes, and returns not described in division (A) of	3422
this section, nothing in this section requires a municipal	3423
corporation to refund or credit any penalty, amount of interest,	3424
charges, or additional fees that the municipal corporation has	3425
properly imposed or collected before January 1, 2016.	3426

(E) Nothing in this section limits the authority of a	3427
municipal corporation to abate or partially abate penalties or	3428
interest imposed under this section when the tax administrator	3429
determines, in the tax administrator's sole discretion, that such	3430
abatement is appropriate.	3431

(F) By the thirty-first day of October of each year the	3432
municipal corporation shall publish the rate described in division	3433
(A) of this section applicable to the next succeeding calendar	3434
year.	3435

(G) The municipal corporation may impose on the taxpayer,	3436
employer, any agent of the employer, or any other payer the	3437
municipal corporation's post-judgment collection costs and fees,	3438
including attorney's fees.	3439

Sec. 718.28.  (A) As used in this section, "claim" means a	3440
claim for an amount payable to a municipal corporation that arises	3441
pursuant to the municipal income tax imposed in accordance with	3442
this chapter.	3443

(B) Nothing in this chapter prohibits a tax administrator	3444
from doing either of the following if such action is in the best	3445
interests of the municipal corporation:	3446

(1) Compromise a claim;

3447

(2) Extend for a reasonable period the time for payment of a	3448
claim by agreeing to accept monthly or other periodic payments.	3449

(C) The tax administrator may consider the following	3450
standards when ascertaining with respect to a claim whether a	3451
compromise or payment-over-time agreement is in the best interests	3452
of the municipal corporation:	3453

(1) There exists a doubt as to whether the claim can be	3454
collected.	3455

(2) There exists a substantial probability that, upon payment	3456
of the claim and submission of a timely request for refund with	3457
respect to that payment, the tax administrator would refund an	3458
amount that was illegally or erroneously paid.	3459

(3) There exists an economic hardship such that a compromise	3460
or agreement would facilitate effective tax administration.	3461

(4) There exists a joint liability among spouses, one of whom	3462
is an innocent spouse, provided that any relief under this	3463
standard shall only affect the claim as to the innocent spouse. A	3464
spouse granted relief under section 6015 of the Internal Revenue	3465
Code with regard to any income item is rebuttably presumed to be	3466
an innocent spouse with regard to that income item to the extent	3467
that income item is included in or otherwise affects the	3468
computation of a municipal income tax or any penalty or interest	3469
on that tax.	3470

(5) Any other reasonable standard that the tax administrator	3471
establishes.	3472

(D) The tax administrator's rejection of a compromise or	3473
payment-over-time agreement proposed by a person with respect to a	3474
claim shall not be appealable.	3475

(E) A compromise or payment-over-time agreement with respect	3476
to a claim shall be binding upon and shall inure to the benefit of	3477
only the parties to the compromise or agreement, and shall not	3478
extinguish or otherwise affect the liability of any other person.	3479

(F) A compromise or payment-over-time agreement with respect	3480
to a claim shall be void if the taxpayer defaults under the	3481
compromise or agreement or if the compromise or agreement was	3482
obtained by fraud or by misrepresentation of a material fact. Any	3483
amount that was due before the compromise or agreement and that is	3484
unpaid shall remain due, and any penalties or interest that would	3485
have accrued in the absence of the compromise or agreement shall	3486
continue to accrue and be due.	3487

Sec. 718.30.  Nothing in this chapter prohibits the	3488
legislative authority of a municipal corporation, or a tax	3489
administrator pursuant to authority granted to the administrator	3490
by resolution or ordinance, to adopt rules to administer an income	3491
tax imposed by the municipal corporation in accordance with this	3492
chapter. Such rules shall not conflict with or be inconsistent	3493
with any provision of this chapter. All rules adopted under this	3494
section shall be published and posted on the internet as described	3495
in section 718.07 of the Revised Code.	3496

Sec. 718.31. No person hired or retained by a tax	3497
administrator to examine or inspect a taxpayer's books shall be	3498
paid on a contingency basis.	3499

Sec. 718.35.  No person shall knowingly make, present, aid,	3500
or assist in the preparation or presentation of a false or	3501
fraudulent report, return, schedule, statement, claim, or document	3502
authorized or required by municipal corporation ordinance or state	3503
law to be filed with a tax administrator, or knowingly procure,	3504
counsel, or advise the preparation or presentation of such report,	3505
return, schedule, statement, claim, or document, or knowingly	3506
change, alter, or amend, or knowingly procure, counsel or advise	3507
such change, alteration, or amendment of the records upon which	3508
such report, return, schedule, statement, claim, or document is	3509
based with intent to defraud the municipal corporation or a tax	3510
administrator.	3511

Sec. 718.36.  (A) At or before the commencement of an audit,	3512
the tax administrator shall provide to the taxpayer a written	3513
description of the roles of the tax administrator and of the	3514
taxpayer during an audit and a statement of the taxpayer's rights,	3515
including any right to obtain a refund of an overpayment of a tax.	3516
At or before the commencement of an audit, the tax administrator	3517
shall inform the taxpayer when the audit is considered to have	3518
commenced.	3519

(B) Except in cases involving suspected criminal activity,	3520
the tax administrator shall conduct an audit of a taxpayer during	3521
regular business hours and after providing reasonable notice to	3522
the taxpayer. A taxpayer who is unable to comply with a proposed	3523
time for an audit on the grounds that the proposed time would	3524
cause inconvenience or hardship must offer reasonable alternative	3525
dates for the audit.	3526

(C) At all stages of an audit by the tax administrator, a	3527
taxpayer is entitled to be assisted or represented by an attorney,	3528
accountant, bookkeeper, or other tax practitioner. The tax	3529
administrator shall prescribe a form by which a taxpayer may	3530
designate such a person to assist or represent the taxpayer in the	3531
conduct of any proceedings resulting from actions by the tax	3532
administrator. If a taxpayer has not submitted such a form, the	3533
tax administrator may accept other evidence, as the tax	3534
administrator considers appropriate, that a person is the	3535
authorized representative of a taxpayer.	3536

A taxpayer may refuse to answer any questions asked by the	3537
person conducting an audit until the taxpayer has an opportunity	3538
to consult with the taxpayer's attorney, accountant, bookkeeper,	3539
or other tax practitioner. This division does not authorize the	3540
practice of law by a person who is not an attorney.	3541

(D) A taxpayer may record, electronically or otherwise, the	3542
audit examination.	3543

(E) The failure of the tax administrator to comply with a	3544
provision of this section shall neither excuse a taxpayer from	3545
payment of any taxes owed by the taxpayer nor cure any procedural	3546
defect in a taxpayer's case.	3547

(F) If the tax administrator fails to substantially comply	3548
with the provisions of this section, the tax administrator, upon	3549
application by the taxpayer, shall excuse the taxpayer from	3550
penalties and interest arising from the audit.	3551

Sec. 718.37.  (A) A taxpayer aggrieved by an action or	3552
omission of a tax administrator, a tax administrator's employee,	3553
or an employee of the municipal corporation may bring an action	3554
against the tax administrator, against the municipal corporation,	3555
or against both, for damages in the court of common pleas of the	3556
county in which the municipal corporation is located, if all of	3557
the following apply:	3558

(1) In the action or omission the tax administrator, the tax	3559
administrator's employee, or the employee of the municipal	3560
corporation frivolously disregards a provision of this chapter or	3561
a rule or instruction of the tax administrator;	3562

(2) The action or omission occurred with respect to an audit	3563
or a written determination of the tax administrator and the review	3564
and collection proceedings connected with the audit or written	3565
determination;	3566

(3) The tax administrator, the tax administrator's employee,	3567
or the employee of the municipal corporation did not act	3568
manifestly outside the scope of employment and did not act with	3569
malicious purpose, in bad faith, or in a wanton or reckless	3570
manner.	3571

(B) In any action brought under division (A) of this section,	3572
upon a finding of liability on the part of the tax administrator	3573
or the municipal corporation, the tax administrator or the	3574
municipal corporation shall be liable to the taxpayer in an amount	3575
equal to the sum of the following:	3576

(1) Compensatory damages sustained by the taxpayer as a	3577
result of the action or omission by the tax administrator, the tax	3578
administrator's employee, or the employee of the municipal	3579
corporation;	3580

(2) Reasonable costs of litigation and attorneys' fees	3581
sustained by the taxpayer.	3582

(C) In the awarding of damages under division (B) of this	3583
section, the court shall take into account the negligent actions	3584
or omissions, if any, on the part of the taxpayer that contributed	3585
to the damages, but shall not be bound by the provisions of	3586
sections 2315.32 to 2315.36 of the Revised Code.	3587

(D) Whenever it appears to the court that a taxpayer's	3588
conduct in the proceedings brought under division (A) of this	3589
section is frivolous, the court may impose a penalty against the	3590
taxpayer in an amount not to exceed ten thousand dollars which	3591
shall be paid to the general fund of the municipal corporation.	3592

(E) Division (A) of this section does not apply to opinions	3593
of the tax administrator or other information functions of the tax	3594
administrator.	3595

(F) As used in this section, "frivolous" means that the	3596
conduct of the tax administrator, an employee of the municipal	3597
corporation or the tax administrator, the taxpayer, or the	3598
taxpayer's counsel of record satisfies either of the following:	3599

(1) It obviously serves merely to harass or maliciously	3600
injure the tax administrator, the municipal corporation, or	3601
employees thereof if referring to the conduct of a taxpayer or the	3602
taxpayer's counsel of record, or to harass or maliciously injure	3603
the taxpayer if referring to the conduct of the tax administrator,	3604
the municipal corporation, or employees thereof;	3605

(2) It is not warranted under existing law and cannot be	3606
supported by a good faith argument for an extension, modification,	3607
or reversal of existing law.	3608

Sec. 718.38.  (A) An "opinion of the tax administrator" means	3609
an opinion issued under this section with respect to prospective	3610
municipal income tax liability. It does not include ordinary	3611
correspondence of the tax administrator.	3612

(B) A taxpayer may submit a written request for an opinion of	3613
the tax administrator as to whether or how certain income, source	3614
of income, or a certain activity or transaction will be taxed. The	3615
written response of the tax administrator shall be an "opinion of	3616
the tax administrator" and shall bind the tax administrator, in	3617
accordance with divisions (C), (G), and (H) of this section,	3618
provided all of the following conditions are satisfied:	3619

(1) The taxpayer's request fully and accurately describes the	3620
specific facts or circumstances relevant to a determination of the	3621
taxability of the income, source of income, activity, or	3622
transaction, and, if an activity or transaction, all parties	3623
involved in the activity or transaction are clearly identified by	3624
name, location, or other pertinent facts.	3625

(2) The request relates to a tax imposed by the municipal	3626
corporation in accordance with this chapter.	3627

(3) The tax administrator's response is signed by the tax	3628
administrator and designated as an "opinion of the tax	3629
administrator."	3630

(C) An opinion of the tax administrator shall remain in	3631
effect and shall protect the taxpayer for whom the opinion was	3632
prepared and who reasonably relies on it from liability for any	3633
taxes, penalty, or interest otherwise chargeable on the activity	3634
or transaction specifically held by the tax administrator's	3635
opinion to be taxable in a particular manner or not to be subject	3636
to taxation for any taxable years that may be specified in the	3637
opinion, or until the earliest of the following dates:	3638

(1) The effective date of a written revocation by the tax	3639
administrator sent to the taxpayer by certified mail, return	3640
receipt requested. The effective date of the revocation shall be	3641
the taxpayer's date of receipt or one year after the issuance of	3642
the opinion, whichever is later;	3643

(2) The effective date of any amendment or enactment of a	3644
relevant section of the Revised Code, uncodified state law, or the	3645
municipal corporation's income tax ordinance that would	3646
substantially change the analysis and conclusion of the opinion of	3647
the tax administrator;	3648

(3) The date on which a court issues an opinion establishing	3649
or changing relevant case law with respect to the Revised Code,	3650
uncodified state law, or the municipal corporation's income tax	3651
ordinance;	3652

(4) If the opinion of the tax administrator was based on the	3653
interpretation of federal law, the effective date of any change in	3654
the relevant federal statutes or regulations, or the date on which	3655
a court issues an opinion establishing or changing relevant case	3656
law with respect to federal statutes or regulations;	3657

(5) The effective date of any change in the taxpayer's	3658
material facts or circumstances;	3659

(6) The effective date of the expiration of the opinion, if	3660
specified in the opinion.	3661

(D) A taxpayer is not relieved of tax liability for any	3662
activity or transaction related to a request for an opinion that	3663
contained any misrepresentation or omission of one or more	3664
material facts.	3665

(E) If a tax administrator provides written advice under this	3666
section, the opinion shall include a statement that:	3667

(1) The tax consequences stated in the opinion may be subject	3668
to change for any of the reasons stated in division (C) of this	3669
section;	3670

(2) It is the duty of the taxpayer to be aware of such	3671
changes.	3672

(F) A tax administrator may refuse to offer an opinion on any	3673
request received under this section.	3674

(G) This section binds a tax administrator only with respect	3675
to opinions of the tax administrator issued on or after January 1,	3676
2016.	3677

(H) An opinion of a tax administrator binds that tax	3678
administrator only with respect to the taxpayer for whom the	3679
opinion was prepared and does not bind the tax administrator of	3680
any other municipal corporation.	3681

(I) A tax administrator shall make available the text of all	3682
opinions issued under this section, except those opinions prepared	3683
for a taxpayer who has requested that the text of the opinion	3684
remain confidential. In no event shall the text of an opinion be	3685
made available until the tax administrator has removed all	3686
information that identifies the taxpayer and any other parties	3687
involved in the activity or transaction.	3688

(J) An opinion of the tax administrator issued under this	3689
section may not be appealed.	3690

Sec. 718.39. If the municipal corporation imposing a tax in	3691
accordance with this chapter has a population greater than thirty	3692
thousand according to the most recent decennial census or if the	3693
tax administrator charged with the administration of the tax is	3694
described in either division (U)(2) or (3) of section 718.01 of	3695
the Revised Code, all of the tax administrator's written	3696
correspondence to a taxpayer or other person shall include the	3697
name and contact information of an individual designated to	3698
receive inquiries regarding the correspondence. The individual may	3699
be the tax administrator or an employee of the tax administrator.	3700

Sec. 718.41.  (A) A taxpayer shall file an amended return	3701
with the tax administrator in such form as the tax administrator	3702
requires if any of the facts, figures, computations, or	3703
attachments required in the taxpayer's annual return to determine	3704
the tax due levied by the municipal corporation in accordance with	3705
this chapter must be altered as the result of an adjustment to the	3706
taxpayer's federal income tax return, whether initiated by the	3707
taxpayer or the internal revenue service, and such alteration	3708
affects the taxpayer's tax liability under this chapter. If a	3709
taxpayer intends to file an amended consolidated municipal income	3710
tax return, or to amend its type of return from a separate return	3711
to a consolidated return, based on the taxpayer's consolidated	3712
federal income tax return, the taxpayer shall notify the tax	3713
administrator before filing the amended return.	3714

(B)(1) In the case of an underpayment, the amended return	3715
shall be accompanied by payment of any combined additional tax due	3716
together with any penalty and interest thereon. If the combined	3717
tax shown to be due is ten dollars or less, such amount need not	3718
accompany the amended return. Except as provided under division	3719
(B)(2) of this section, the amended return shall not reopen those	3720
facts, figures, computations, or attachments from a previously	3721
filed return that are not affected, either directly or indirectly,	3722
by the adjustment to the taxpayer's federal or state income tax	3723
return unless the applicable statute of limitations for civil	3724
actions or prosecutions under section 718.12 of the Revised Code	3725
has not expired for a previously filed return.	3726

(2) The additional tax to be paid shall not exceed the amount	3727
of tax that would be due if all facts, figures, computations, and	3728
attachments were reopened.	3729

(C)(1) In the case of an overpayment, a request for refund	3730
may be filed under this division within the period prescribed by	3731
division (E) of section 718.12 of the Revised Code for filing the	3732
amended return even if it is filed beyond the period prescribed in	3733
that division if it otherwise conforms to the requirements of that	3734
division. If the amount of the refund is ten dollars or less, no	3735
refund need be paid by the municipal corporation to the taxpayer.	3736
Except as set forth in division (C)(2) of this section, a request	3737
filed under this division shall claim refund of overpayments	3738
resulting from alterations to only those facts, figures,	3739
computations, or attachments required in the taxpayer's annual	3740
return that are affected, either directly or indirectly, by the	3741
adjustment to the taxpayer's federal or state income tax return	3742
unless it is also filed within the time prescribed in section	3743
718.19 of the Revised Code. Except as set forth in division (C)(2)	3744
of this section, the request shall not reopen those facts,	3745
figures, computations, or attachments that are not affected,	3746
either directly or indirectly, by the adjustment to the taxpayer's	3747
federal or state income tax return.	3748

(2) The amount to be refunded shall not exceed the amount of	3749
refund that would be due if all facts, figures, computations, and	3750
attachments were reopened.	3751

Sec. 718.04.        Sec. 718.50.  (A) No municipal corporation other than	3752
the municipal corporation of residence shall levy a tax on the	3753
income of any member or employee of the Ohio general assembly	3754
including the lieutenant governor which income is received as a	3755
result of services rendered as such member or employee and is paid	3756
from appropriated funds of this state.	3757

(B) No municipal corporation other than the municipal	3758
corporation of residence and the city of Columbus shall levy a tax	3759
on the income of the chief justice or a justice of the supreme	3760
court received as a result of services rendered as the chief	3761
justice or justice. No municipal corporation other than the	3762
municipal corporation of residence shall levy a tax on the income	3763
of a judge sitting by assignment of the chief justice or on the	3764
income of a district court of appeals judge sitting in multiple	3765
locations within the district, received as a result of services	3766
rendered as a judge.	3767

Sec. 718.99.  (A) Except as provided in division (B) of this	3768
section, whoever violates section 718.35 of the Revised Code,	3769
division (A) of section 718.13 of the Revised Code, or section	3770
718.03 of the Revised Code by failing to remit municipal income	3771
taxes deducted and withheld from an employee, shall be guilty of a	3772
misdemeanor of the first degree and shall be subject to a fine of	3773
not more than one thousand dollars or imprisonment for a term of	3774
up to six months, or both, unless the violation is punishable by a	3775
municipal ordinance or resolution imposing a greater penalty or	3776
requiring dismissal from office or discharge from employment, or	3777
both, in which case the municipal ordinance or resolution shall	3778
govern.	3779

(B) Any person who discloses information received from the	3780
Internal Revenue Service in violation of division (A) of section	3781
718.13 of the Revised Code shall be guilty of a felony of the	3782
fifth degree and shall be subject to a fine of not more than five	3783
thousand dollars plus the costs of prosecution, or imprisonment	3784
for a term not exceeding five years, or both, unless the violation	3785
is punishable by a municipal ordinance imposing a greater penalty	3786
or requiring dismissal from office or discharge from employment,	3787
or both, in which case the municipal ordinance shall govern.	3788

(C) Each instance of access or disclosure in violation of	3789
division (A) of section 718.13 of the Revised Code constitutes a	3790
separate offense.	3791

(D) Nothing in this chapter prohibits a municipal corporation	3792
from prosecuting offenses which are made punishable under a	3793
municipal ordinance or resolution levying an income tax and for	3794
which no other penalty is provided under this section.	3795

Sec. 5703.02.  There is hereby created the board of tax	3796
appeals, which shall exercise the following powers and perform the	3797
following duties:	3798

(A) Exercise the authority provided by law to hear and	3799
determine all appeals of questions of law and fact arising under	3800
the tax laws of this state in appeals from decisions, orders,	3801
determinations, or actions of any tax administrative agency	3802
established by the law of this state, including but not limited to	3803
appeals from:	3804

(1) Actions of county budget commissions;

3805

(2) Decisions of county boards of revision;

3806

(3) Actions of any assessing officer or other public official	3807
under the tax laws of this state;	3808

(4) Final determinations by the tax commissioner of any	3809
preliminary, amended, or final tax assessments, reassessments,	3810
valuations, determinations, findings, computations, or orders made	3811
by the tax commissioner;	3812

(5) Adoption and promulgation of rules of the tax	3813
commissioner.	3814

(B) Appoint a secretary of the board of tax appeals, who	3815
shall serve in the unclassified civil service at the pleasure of	3816
the board, and any other employees as are necessary in the	3817
exercise of the powers and the performance of the duties and	3818
functions that the board is by law authorized and required to	3819
exercise, and prescribe the duties of all employees, and to fix	3820
their compensation as provided by law;	3821

(C) Maintain a journal, which shall be open to public	3822
inspection and in which the secretary shall keep a record of all	3823
of the proceedings and the vote of each of its members upon every	3824
action taken by it;	3825

(D) Adopt and promulgate, in the manner provided by section	3826
5703.14 of the Revised Code, and enforce all rules relating to the	3827
procedure of the board in hearing appeals it has the authority or	3828
duty to hear, and to the procedure of officers or employees whom	3829
the board may appoint; provided that section 5703.13 of the	3830
Revised Code shall apply to and govern the procedure of the board.	3831
Such rules shall include, but need not be limited to, the	3832
following:	3833

(1) Rules governing the creation and implementation of a	3834
mediation program, including procedures for requesting, requiring	3835
participation in, objecting to, and conducting a mediation;	3836

(2) Rules requiring the tax commissioner, county boards of	3837
revision, and municipallocal boards of appealtax review created	3838
under section 718.11 of the Revised Code to electronically file	3839
any transcript required to be filed with the board of tax appeals,	3840
and instructions and procedures for the electronic filing of such	3841
transcripts.	3842

(3) Rules establishing procedures to control and manage	3843
appeals filed with the board. The procedures shall include, but	3844
not be limited to, the establishment of a case management schedule	3845
that shall include expected dates related to discovery deadlines,	3846
disclosure of evidence, pre-hearing motions, and the hearing, and	3847
other case management issues considered appropriate.	3848

Sec. 5703.059. (A) The tax commissioner may adopt rules	3849
requiring returns, including any accompanying schedule or	3850
statement, for any tax or fee administered by the commissioner to	3851
be filed electronically using the Ohio business gateway as defined	3852
in section 718.051718.01 of the Revised Code, filed	3853
telephonically using the system known as the Ohio telefile system,	3854
or filed by any other electronic means prescribed by the	3855
commissioner.	3856

(B) The commissioner may adopt rules requiring any payment of	3857
tax shown on such a return to be due to be made electronically in	3858
a manner approved by the commissioner.	3859

(C) A rule adopted under this section does not apply to	3860
returns or reports filed or payments made before the effective	3861
date of the rule. The commissioner shall publicize any new	3862
electronic filing requirement on the department's web site. The	3863
commissioner shall educate the public of the requirement through	3864
seminars, workshops, conferences, or other outreach activities.	3865

(D) Any person required to file returns and make payments	3866
electronically under rules adopted under this section may apply to	3867
the commissioner, on a form prescribed by the commissioner, to be	3868
excused from that requirement. For good cause shown, the	3869
commissioner may excuse the applicant from the requirement and	3870
permit the applicant to file the returns or reports or make the	3871
payments required under this section by nonelectronic means.	3872

Sec. 5703.57. (A) As used in this section, "Ohio business	3873
gateway" has the same meaning as in section 718.051718.01 of the	3874
Revised Code.	3875

(B) There is hereby created the Ohio business gateway	3876
steering committee to direct the continuing development of the	3877
Ohio business gateway and to oversee its operations. The committee	3878
shall provide general oversight regarding operation of the Ohio	3879
business gateway and shall recommend to the department of	3880
administrative services enhancements that will improve the Ohio	3881
business gateway. The committee shall consider all banking,	3882
technological, administrative, and other issues associated with	3883
the Ohio business gateway and shall make recommendations regarding	3884
the type of reporting forms or other tax documents to be filed	3885
through the Ohio business gateway.	3886

(C) The committee shall consist of:

3887

(1) The following members, appointed by the governor with the	3888
advice and consent of the senate:	3889

(a) Not more than four representatives of the business	3890
community;	3891

(b) Not more than one representativethree representatives of	3892
municipal tax administrators selected from a list of candidates	3893
provided by the Ohio municipal league; and	3894

(c) Not more than two tax practitioners.

3895

(2) The following ex officio members:

3896

(a) The director or other highest officer of each state	3897
agency that has tax reporting forms or other tax documents filed	3898
with it through the Ohio business gateway or the director's	3899
designee;	3900

(b) The secretary of state or the secretary of state's	3901
designee;	3902

(c) The treasurer of state or the treasurer of state's	3903
designee;	3904

(d) The director of budget and management or the director's	3905
designee;	3906

(e) The state chief information officer or the officer's	3907
designee;	3908

(f) The tax commissioner or the tax commissioner's designee;	3909
and	3910

(g) The director of development or the director's designee.

3911

An appointed member shall serve until the member resigns or	3912
is removed by the governor. Vacancies shall be filled in the same	3913
manner as original appointments.	3914

(D) A vacancy on the committee does not impair the right of	3915
the other members to exercise all the functions of the committee.	3916
The presence of a majority of the members of the committee	3917
constitutes a quorum for the conduct of business of the committee.	3918
The concurrence of at least a majority of the members of the	3919
committee is necessary for any action to be taken by the	3920
committee. On request, each member of the committee shall be	3921
reimbursed for the actual and necessary expenses incurred in the	3922
discharge of the member's duties.	3923

(E) The committee is a part of the department of taxation for	3924
administrative purposes.	3925

(F) Each year, the governor shall select a member of the	3926
committee to serve as chairperson. The chairperson shall appoint	3927
an official or employee of the department of taxation to act as	3928
the committee's secretary. The secretary shall keep minutes of the	3929
committee's meetings and a journal of all meetings, proceedings,	3930
findings, and determinations of the committee.	3931

(G) The committee may hire professional, technical, and	3932
clerical staff needed to support its activities.	3933

(H) The committee shall meet as often as necessary to perform	3934
its duties.	3935

Sec. 5717.011.  (A) As used in this chapter, "tax	3936
administrator" has the same meaning as in section 718.01 of the	3937
Revised Code.	3938

(B) Appeals from a municipaldecision of a local board of	3939
appealtax review created under section 718.11 of the Revised Code	3940
may be taken by the taxpayer or the tax administrator to the board	3941
of tax appeals or may be taken by the taxpayer or the tax	3942
administrator to a court of common pleas as otherwise provided by	3943
law. If the taxpayer or the tax administrator elects to make an	3944
appeal to the board of tax appeals or court of common pleas, and	3945
subject to section 5703.021 of the Revised Code with respect to	3946
appeals assigned to the small claims docket, the appeal shall be	3947
taken by the filing of a notice of appeal with the board of tax	3948
appeals or court of common pleas, the municipallocal board of	3949
appealtax review, and the opposing party. The notice of appeal	3950
shall be filed within sixty days after the day the appellant	3951
receives notice of the decision issued under section 718.11 of the	3952
Revised Code. An appeal filed with a court of common pleas is	3953
governed by the Rules of Civil Procedure and other rules of	3954
practice and procedure applicable to civil actions. For an appeal	3955
filed with the board of tax appeals, the notice of appeal may be	3956
filed in person or by certified mail, express mail, facsimile	3957
transmission, electronic transmission, or by authorized delivery	3958
service as provided in section 5703.056 of the Revised Code. If	3959
the notice of appeal is filed by certified mail, express mail, or	3960
authorized delivery service as provided in section 5703.056 of the	3961
Revised Code, the date of the United States postmark placed on the	3962
sender's receipt by the postal service or the date of receipt	3963
recorded by the authorized delivery service shall be treated as	3964
the date of filing with the board. If notice of appeal is filed by	3965
facsimile transmission or electronic transmission, the date and	3966
time the notice is received by the board shall be the date and	3967
time reflected on a timestamp provided by the board's electronic	3968
system, and the appeal shall be considered filed with the board on	3969
the date reflected on that timestamp. Any timestamp provided by	3970
another computer system or electronic submission device shall not	3971
affect the time and date the notice is received by the board. The	3972
notice of appeal shall have attached thereto and incorporated	3973
therein by reference a true copy of the decision issued under	3974
section 718.11 of the Revised Code, but failure to attach a copy	3975
of such notice and incorporate it by reference in the notice of	3976
appeal does not invalidate the appeal.	3977

(C) A notice of appeal for an appeal filed with the board of	3978
tax appeals shall contain a short and plain statement of the	3979
claimed errors in the decision of the municipallocal board of	3980
appealtax review showing that the appellant is entitled to relief	3981
and a demand for the relief to which the appellant claims to be	3982
entitled. An appellant may amend the notice of appeal once as a	3983
matter of course within sixty days after the certification of the	3984
transcript. Otherwise, an appellant may amend the notice of appeal	3985
only after receiving leave of the board or the written consent of	3986
each adverse party. Leave of the board shall be freely given when	3987
justice so requires.	3988

(D) Upon the filing of a notice of appeal with the board of	3989
tax appeals, the municipallocal board of appealtax review shall	3990
certify to the board of tax appeals a transcript of the record of	3991
the proceedings before it, together with all evidence considered	3992
by it in connection therewith. Such appeals may be heard by the	3993
board at its office in Columbus or in the county where the	3994
appellant resides, or it may cause its examiners to conduct such	3995
hearings and to report to it their findings for affirmation or	3996
rejection. The board may order the appeal to be heard upon the	3997
record and the evidence certified to it by the tax administrator,	3998
but upon the application of any interested party the board shall	3999
order the hearing of additional evidence, and the board may make	4000
such investigation concerning the appeal as it considers proper.	4001
An appeal may proceed pursuant to section 5703.021 of the Revised	4002
Code on the small claims docket if the appeals qualifies under	4003
that section.	4004

(E) If an issue being appealed under this section is	4005
addressed in a municipal corporation's ordinance or regulation,	4006
the tax administrator, upon the request of the board of tax	4007
appeals, shall provide a copy of the ordinance or regulation to	4008
the board of tax appeals.	4009

Sec. 5717.03. (A) A decision of the board of tax appeals on	4010
an appeal filed with it pursuant to section 5717.01, 5717.011, or	4011
5717.02 of the Revised Code shall be entered of record on the	4012
journal together with the date when the order is filed with the	4013
secretary for journalization.	4014

(B) In case of an appeal from a decision of a county board of	4015
revision, the board of tax appeals shall determine the taxable	4016
value of the property whose valuation or assessment by the county	4017
board of revision is complained of, or in the event the complaint	4018
and appeal is against a discriminatory valuation, shall determine	4019
a valuation which shall correct such discrimination, and shall	4020
determine the liability of the property for taxation, if that	4021
question is in issue, and the board of tax appeals' decision and	4022
the date when it was filed with the secretary for journalization	4023
shall be sent by the board to all persons who were parties to the	4024
appeal before the board, to the person in whose name the property	4025
is listed, or sought to be listed, if such person is not a party	4026
to the appeal, to the county auditor of the county in which the	4027
property involved in the appeal is located, and to the tax	4028
commissioner.	4029

In correcting a discriminatory valuation, the board of tax	4030
appeals shall increase or decrease the value of the property whose	4031
valuation or assessment by the county board of revision is	4032
complained of by a per cent or amount which will cause such	4033
property to be listed and valued for taxation by an equal and	4034
uniform rule.	4035

(C) In the case of an appeal from a review, redetermination,	4036
or correction of a tax assessment, valuation, determination,	4037
finding, computation, or order of the tax commissioner, the order	4038
of the board of tax appeals and the date of the entry thereof upon	4039
its journal shall be sent by the board to all persons who were	4040
parties to the appeal before the board, the person in whose name	4041
the property is listed or sought to be listed, if the decision	4042
determines the valuation or liability of property for taxation and	4043
if such person is not a party to the appeal, the taxpayer or other	4044
person to whom notice of the tax assessment, valuation,	4045
determination, finding, computation, or order, or correction or	4046
redetermination thereof, by the tax commissioner was by law	4047
required to be given, the director of budget and management, if	4048
the revenues affected by such decision would accrue primarily to	4049
the state treasury, and the county auditors of the counties to the	4050
undivided general tax funds of which the revenues affected by such	4051
decision would primarily accrue.	4052

(D) In the case of an appeal from a municipaldecision of a	4053
local board of appealtax review created under section 718.11 of	4054
the Revised Code, the order of the board of tax appeals and the	4055
date of the entry thereof upon the board's journal shall be sent	4056
by the board to all persons who were parties to the appeal before	4057
the board.	4058

(E) In the case of all other appeals or applications filed	4059
with and determined by the board, the board's order and the date	4060
when the order was filed by the secretary for journalization shall	4061
be sent by the board to the person who is a party to such appeal	4062
or application, to such persons as the law requires, and to such	4063
other persons as the board deems proper.	4064

(F) The orders of the board may affirm, reverse, vacate,	4065
modify, or remand the tax assessments, valuations, determinations,	4066
findings, computations, or orders complained of in the appeals	4067
determined by the board, and the board's decision shall become	4068
final and conclusive for the current year unless reversed,	4069
vacated, or modified as provided in section 5717.04 of the Revised	4070
Code. When an order of the board becomes final the tax	4071
commissioner and all officers to whom such decision has been sent	4072
shall make the changes in their tax lists or other records which	4073
the decision requires.	4074

(G) If the board finds that issues not raised on the appeal	4075
are important to a determination of a controversy, the board may	4076
remand the cause for an administrative determination and the	4077
issuance of a new tax assessment, valuation, determination,	4078
finding, computation, or order, unless the parties stipulate to	4079
the determination of such other issues without remand. An order	4080
remanding the cause is a final order. If the order relates to any	4081
issue other than a municipal income tax matter appealed under	4082
sections 718.11 and 5717.011 of the Revised Code, the order may be	4083
appealed to the court of appeals in Franklin county. If the order	4084
relates to a municipal income tax matter appealed under sections	4085
718.11 and 5717.011 of the Revised Code, the order may be appealed	4086
to the court of appeals for the county in which the municipal	4087
corporation in which the dispute arose is primarily situated.	4088

(H) At the request of any person that filed an appeal subject	4089
to this section, the decision or order of the board of tax appeals	4090
issued pursuant to division (B), (C), (D), or (E) of this section	4091
shall be sent by certified mail at the requestor's expense.	4092

Sec. 5726.03. (A)(1) Annually, on or before the fifteenth day	4093
of October, the reporting person for each taxpayer shall make a	4094
report in writing to the tax commissioner, in such form as the	4095
commissioner prescribes, and shall remit to the commissioner the	4096
amount of tax shown to be due on the report. The remittance shall	4097
be made payable to the treasurer of state. The commissioner shall	4098
make available, on the official internet web site of the	4099
department of taxation, copies of the forms prescribed by the	4100
commissioner for the purpose of making the annual report.	4101

(2) An annual report shall be signed by the president,	4102
vice-president, secretary, treasurer, general manager,	4103
superintendent, or managing agent in this state of the reporting	4104
person.	4105

(3) An annual report shall contain the facts, figures,	4106
computations, and attachments that result in the determination of	4107
the amount of tax due from a taxpayer under this chapter.	4108

(B)(1) In the case of a financial institution described in	4109
division (H)(1) of section 5726.01 of the Revised Code, the annual	4110
report filed for a taxable year shall list, and include	4111
information related to, each person includable in an FR Y-9 filed	4112
by the reporting person for that taxable year.	4113

(2) In the case of a financial institution described in	4114
division (H)(2) or (3) of section 5726.01 of the Revised Code, the	4115
annual report for a taxable year shall list, and include	4116
information related to, each person includable in a call report	4117
filed by the reporting person for that taxable year.	4118

(C)(1) The reporting person for a taxpayer shall remit each	4119
tax payment and, if required by the commissioner, file each annual	4120
or estimated tax report electronically. The commissioner may	4121
require reporting persons to use the Ohio business gateway as	4122
defined in section 718.051718.01 of the Revised Code to file	4123
reports and remit the tax, or may provide another means for	4124
reporting persons to file and remit the tax electronically.	4125

(2) The payment of taxes as provided in division (C) of this	4126
section shall not affect a taxpayer's obligation to file an annual	4127
report required under division (A) of this section.	4128

(3) The reporting person for a taxpayer that is required to	4129
remit tax payments electronically under this section may apply to	4130
the tax commissioner, in the manner prescribed by the	4131
commissioner, to be excused from that requirement. The	4132
commissioner may excuse the taxpayer from the requirements of	4133
division (C) of this section for good cause.	4134

(4) If the reporting person for a taxpayer that is required	4135
to remit tax payments or file reports electronically under this	4136
section fails to do so, the commissioner may impose a penalty not	4137
to exceed the following:	4138

(a) For either of the first two reports the person so fails,	4139
five per cent of the amount of the payment that was required to be	4140
remitted;	4141

(b) For the third and any subsequent reports the person so	4142
fails, ten per cent of the amount of the payment that was required	4143
to be remitted.	4144

The penalty imposed under this section is in addition to any	4145
other penalty or charge imposed under this chapter and shall be	4146
considered as revenue arising from the tax levied under this	4147
chapter. A penalty may be collected by assessment in the manner	4148
prescribed by section 5726.20 of the Revised Code. The tax	4149
commissioner may abate all or a portion of such a penalty and may	4150
adopt rules governing such abatements.	4151

Sec. 5736.04.  (A) Not later than the tenth day of the second	4152
month after the end of each calendar quarter, every taxpayer shall	4153
file with the tax commissioner a tax return in such form as the	4154
commissioner prescribes. The return shall include, but is not	4155
limited to, the amount of the taxpayer's calculated gross receipts	4156
for the calendar quarter and shall indicate the amount of tax due	4157
under section 5736.02 of the Revised Code for the calendar	4158
quarter. The taxpayer shall indicate on each return the portion of	4159
the taxpayer's gross receipts attributable to motor fuel used for	4160
propelling vehicles on public highways and waterways and the	4161
portion of such receipts attributable to motor fuel used for other	4162
purposes. For this purpose, the sale of gasoline and of diesel	4163
fuel that is not dyed diesel fuel shall be rebuttably presumed to	4164
be distributed or sold for use or used to propel vehicles on	4165
public highways or waterways. All other sales of motor fuel shall	4166
be rebuttably presumed not to be distributed or sold for use or	4167
used to propel vehicles on public highways or waterways.	4168

(B)(1) The taxpayer shall remit the tax shown to be due on	4169
the return, and, if required by the tax commissioner, file the	4170
return, electronically. The commissioner may require taxpayers to	4171
use the Ohio business gateway as defined in section 718.051718.01	4172
of the Revised Code to file return returns and remit the tax, or	4173
may provide another means for taxpayers to file and remit the tax	4174
electronically.	4175

(2) A person required by this section to remit taxes or file	4176
returns electronically may apply to the commissioner, on the form	4177
prescribed by the commissioner, to be excused from that	4178
requirement. The commissioner may excuse a person from such	4179
requirement for good cause.	4180

(C) The tax rate with respect to calculated gross receipts	4181
for a calendar quarter is not fixed until the end of the	4182
measurement period for each calendar quarter. The total amount of	4183
calculated gross receipts reported for a given calendar quarter	4184
shall be subject to the tax rate in effect in that quarter.	4185

Sec. 5739.12. (A)(1) Each person who has or is required to	4186
have a vendor's license, on or before the twenty-third day of each	4187
month, shall make and file a return for the preceding month in the	4188
form prescribed by the tax commissioner, and shall pay the tax	4189
shown on the return to be due. The return shall be filed	4190
electronically using the Ohio business gateway, as defined in	4191
section 718.051718.01 of the Revised Code, the Ohio telefile	4192
system, or any other electronic means prescribed by the	4193
commissioner. Payment of the tax shown on the return to be due	4194
shall be made electronically in a manner approved by the	4195
commissioner. The commissioner may require a vendor that operates	4196
from multiple locations or has multiple vendor's licenses to	4197
report all tax liabilities on one consolidated return. The return	4198
shall show the amount of tax due from the vendor to the state for	4199
the period covered by the return and such other information as the	4200
commissioner deems necessary for the proper administration of this	4201
chapter. The commissioner may extend the time for making and	4202
filing returns and paying the tax, and may require that the return	4203
for the last month of any annual or semiannual period, as	4204
determined by the commissioner, be a reconciliation return	4205
detailing the vendor's sales activity for the preceding annual or	4206
semiannual period. The reconciliation return shall be filed by the	4207
last day of the month following the last month of the annual or	4208
semiannual period. The commissioner may remit all or any part of	4209
amounts or penalties that may become due under this chapter and	4210
may adopt rules relating thereto. Such return shall be filed	4211
electronically as directed by the tax commissioner, and payment of	4212
the amount of tax shown to be due thereon, after deduction of any	4213
discount provided for under this section, shall be made	4214
electronically in a manner approved by the tax commissioner.	4215

(2) Any person required to file returns and make payments	4216
electronically under division (A)(1) of this section may apply to	4217
the tax commissioner on a form prescribed by the commissioner to	4218
be excused from that requirement. For good cause shown, the	4219
commissioner may excuse the person from that requirement and may	4220
permit the person to file the returns and make the payments	4221
required by this section by nonelectronic means.	4222

(B)(1) If the return is filed and the amount of tax shown	4223
thereon to be due is paid on or before the date such return is	4224
required to be filed, the vendor shall be entitled to a discount	4225
of three-fourths of one per cent of the amount shown to be due on	4226
the return.	4227

(2) A vendor that has selected a certified service provider	4228
as its agent shall not be entitled to the discount if the	4229
certified service provider receives a monetary allowance pursuant	4230
to section 5739.06 of the Revised Code for performing the vendor's	4231
sales and use tax functions in this state. Amounts paid to the	4232
clerk of courts pursuant to section 4505.06 of the Revised Code	4233
shall be subject to the applicable discount. The discount shall be	4234
in consideration for prompt payment to the clerk of courts and for	4235
other services performed by the vendor in the collection of the	4236
tax.	4237

(C)(1) Upon application to the tax commissioner, a vendor who	4238
is required to file monthly returns may be relieved of the	4239
requirement to report and pay the actual tax due, provided that	4240
the vendor agrees to remit to the commissioner payment of not less	4241
than an amount determined by the commissioner to be the average	4242
monthly tax liability of the vendor, based upon a review of the	4243
returns or other information pertaining to such vendor for a	4244
period of not less than six months nor more than two years	4245
immediately preceding the filing of the application. Vendors who	4246
agree to the above conditions shall make and file an annual or	4247
semiannual reconciliation return, as prescribed by the	4248
commissioner. The reconciliation return shall be filed	4249
electronically as directed by the tax commissioner, and payment of	4250
the amount of tax shown to be due thereon, after deduction of any	4251
discount provided in this section, shall be made electronically in	4252
a manner approved by the commissioner. Failure of a vendor to	4253
comply with any of the above conditions may result in immediate	4254
reinstatement of the requirement of reporting and paying the	4255
actual tax liability on each monthly return, and the commissioner	4256
may at the commissioner's discretion deny the vendor the right to	4257
report and pay based upon the average monthly liability for a	4258
period not to exceed two years. The amount ascertained by the	4259
commissioner to be the average monthly tax liability of a vendor	4260
may be adjusted, based upon a review of the returns or other	4261
information pertaining to the vendor for a period of not less than	4262
six months nor more than two years preceding such adjustment.	4263

(2) The commissioner may authorize vendors whose tax	4264
liability is not such as to merit monthly returns, as ascertained	4265
by the commissioner upon the basis of administrative costs to the	4266
state, to make and file returns at less frequent intervals. When	4267
returns are filed at less frequent intervals in accordance with	4268
such authorization, the vendor shall be allowed the discount	4269
provided in this section in consideration for prompt payment with	4270
the return, provided the return is filed and payment is made of	4271
the amount of tax shown to be due thereon, at the time specified	4272
by the commissioner, but a vendor that has selected a certified	4273
service provider as its agent shall not be entitled to the	4274
discount.	4275

(D) Any vendor who fails to file a return or to pay the full	4276
amount of the tax shown on the return to be due in the manner	4277
prescribed under this section and the rules of the commissioner	4278
may, for each such return, be required to forfeit and pay into the	4279
state treasury an additional charge not exceeding fifty dollars or	4280
ten per cent of the tax required to be paid for the reporting	4281
period, whichever is greater, as revenue arising from the tax	4282
imposed by this chapter, and such sum may be collected by	4283
assessment in the manner provided in section 5739.13 of the	4284
Revised Code. The commissioner may remit all or a portion of the	4285
additional charge and may adopt rules relating to the imposition	4286
and remission of the additional charge.	4287

(E) If the amount required to be collected by a vendor from	4288
consumers is in excess of the applicable percentage of the	4289
vendor's receipts from sales that are taxable under section	4290
5739.02 of the Revised Code, or in the case of sales subject to a	4291
tax levied pursuant to section 5739.021, 5739.023, or 5739.026 of	4292
the Revised Code, in excess of the percentage equal to the	4293
aggregate rate of such taxes and the tax levied by section 5739.02	4294
of the Revised Code, such excess shall be remitted along with the	4295
remittance of the amount of tax due under section 5739.10 of the	4296
Revised Code.	4297

(F) The commissioner, if the commissioner deems it necessary	4298
in order to insure the payment of the tax imposed by this chapter,	4299
may require returns and payments to be made for other than monthly	4300
periods.	4301

(G) Any vendor required to file a return and pay the tax	4302
under this section whose total payment for a year equals or	4303
exceeds the amount shown in division (A) of section 5739.122 of	4304
the Revised Code is subject to the accelerated tax payment	4305
requirements in divisions (B) and (C) of that section. For a	4306
vendor that operates from multiple locations or has multiple	4307
vendor's licenses, in determining whether the vendor's total	4308
payment equals or exceeds the amount shown in division (A) of that	4309
section, the vendor's total payment amount shall be the amount of	4310
the vendor's total tax liability for the previous calendar year	4311
for all of the vendor's locations or licenses.	4312

Sec. 5739.124.  (A) If required by the tax commissioner, a	4313
permit holder required to make payments under section 5739.032 of	4314
the Revised Code shall file all returns and reports	4315
electronically. The commissioner may require the permit holder to	4316
use the Ohio business gateway, as defined in section 718.051	4317
718.01 of the Revised Code, or any other electronic means approved	4318
by the commissioner, to file the returns and reports, or to remit	4319
the tax, in lieu of the manner prescribed under section 5739.032	4320
of the Revised Code.	4321

(B) A person required under this section to file reports and	4322
returns electronically may apply to the tax commissioner to be	4323
excused from that requirement. Applications shall be made on a	4324
form prescribed by the commissioner. The commissioner may approve	4325
the application for good cause.	4326

(C)(1) If a person required to file a report or return	4327
electronically under this section fails to do so, the tax	4328
commissioner may impose an additional charge not to exceed the	4329
following:	4330

(a) For each of the first two failures, five per cent of the	4331
amount required to be reported on the report or return;	4332

(b) For the third and any subsequent failure, ten per cent of	4333
the amount required to be reported on the report or return.	4334

(2) The charges authorized under division (C)(1) of this	4335
section are in addition to any other charge or penalty authorized	4336
under this chapter, and shall be considered as revenue arising	4337
from taxes imposed under this chapter. An additional charge may be	4338
collected by assessment in the manner prescribed by section	4339
5739.13 of the Revised Code. The commissioner may waive all or a	4340
portion of such a charge and may adopt rules governing such	4341
waiver.	4342

Sec. 5741.122.  (A) If required by the tax commissioner, a	4343
person required to make payments under section 5741.121 of the	4344
Revised Code shall file all returns and reports electronically.	4345
The commissioner may require the person to use the Ohio business	4346
gateway, as defined in section 718.051718.01 of the Revised Code,	4347
or any other electronic means approved by the commissioner, to	4348
file the returns and reports, or to remit the tax, in lieu of the	4349
manner prescribed under section 5741.121 of the Revised Code.	4350

(B) A person required under this section to file reports and	4351
returns electronically may apply to the tax commissioner to be	4352
excused from that requirement. Applications shall be made on a	4353
form prescribed by the commissioner. The commissioner may approve	4354
the application for good cause.	4355

(C)(1) If a person required to file a report or return	4356
electronically under this section fails to do so, the tax	4357
commissioner may impose an additional charge not to exceed the	4358
following:	4359

(a) For each of the first two failures, five per cent of the	4360
amount required to be reported on the report or return;	4361

(b) For the third and any subsequent failure, ten per cent of	4362
the amount required to be reported on the report or return.	4363

(2) The charges authorized under division (C)(1) of this	4364
section are in addition to any other charge or penalty authorized	4365
under this chapter, and shall be considered as revenue arising	4366
from taxes imposed under this chapter. An additional charge may be	4367
collected by assessment in the manner prescribed by section	4368
5741.13 of the Revised Code. The commissioner may waive all or a	4369
portion of such a charge and may adopt rules governing such	4370
waiver.	4371

Sec. 5747.063. The requirements imposed under this section	4372
are in addition to the municipal income tax withholding	4373
requirements under section 718.031 of the Revised Code.	4374

(A)(1) If a person's winnings at a casino facility are an	4375
amount for which reporting to the internal revenue service of the	4376
amount is required by section 6041 of the Internal Revenue Code,	4377
as amended, the casino operator shall deduct and withhold Ohio	4378
income tax from the person's winnings at a rate of four per cent	4379
of the amount won and shall deduct and withhold municipal income	4380
tax from the person's winnings at the rate of tax of the municipal	4381
corporation in which the casino facility is located. A person's	4382
amount of winnings shall be determined each time the person	4383
exchanges amounts won in tokens, chips, casino credit, or other	4384
prepaid representations of value for cash or a cash equivalent.	4385
The casino operator shall issue, to a person from whose winnings	4386
an amount has been deducted and withheld, a receipt for the amount	4387
deducted and withheld, and also shall obtain from the person	4388
additional information that will be necessary for the casino	4389
operator to prepare the returns required by this section.	4390

(2) If a person's winnings at a casino facility require	4391
reporting to the internal revenue service under division (A)(1) of	4392
this section, the casino operator also shall require the person to	4393
state in writing, under penalty of falsification, whether the	4394
person is in default under a support order.	4395

(B) Amounts deducted and withheld by a casino operator are	4396
held in trust for the benefit of the state and municipal	4397
corporations, as applicable.	4398

(1) On or before the tenth day of each month, the casino	4399
operator shall file a return electronically with the tax	4400
commissioner and the tax administrator of the municipal	4401
corporation, as applicable, identifying the persons from whose	4402
winnings amounts were deducted and withheld, the amount of each	4403
such deduction and withholding during the preceding calendar	4404
month, the amount of the winnings from which each such amount was	4405
withheld, the type of casino gaming that resulted in such	4406
winnings, and any other information required by the tax	4407
commissioner. With the return, the casino operator shall remit	4408
electronically to the commissioner and the tax administrator of	4409
the municipal corporation, as applicable, all the amounts deducted	4410
and withheld during the preceding month.	4411

(2)(a) A casino operator shall maintain a record of each	4412
written statement provided under division (A)(2) of this section	4413
in which a person admits to being in default under a support	4414
order. The casino operator shall make these records available to	4415
the director of job and family services upon request.	4416

(b) A casino operator shall maintain copies of receipts	4417
issued under division (A)(1) of this section and of written	4418
statements provided under division (A)(2) of this section and	4419
shall make these copies available to the tax commissioner upon	4420
request.	4421

(c) A casino operator shall maintain the information	4422
described in divisions (B)(2)(a) and (b) of this section in	4423
accordance with section 5747.17 of the Revised Code and any rules	4424
adopted pursuant thereto.	4425

(3) Annually, on or before the thirty-first day of January, a	4426
casino operator shall file an annual return electronically with	4427
the tax commissioner and the tax administrator of the municipal	4428
corporation, as applicable, indicating the total amount deducted	4429
and withheld during the preceding calendar year. The casino	4430
operator shall remit electronically with the annual return any	4431
amount that was deducted and withheld and that was not previously	4432
remitted. If the identity of a person and the amount deducted and	4433
withheld with respect to that person were omitted on a monthly	4434
return, that information shall be indicated on the annual return.	4435

(4)(a) A casino operator who fails to file a return and remit	4436
the amounts deducted and withheld is personally liable for the	4437
amount deducted and withheld and not remitted. The commissioner	4438
and the tax administrator of the municipal corporation, as	4439
applicable, may impose a penalty up to one thousand dollars if a	4440
return is filed late, if amounts deducted and withheld are	4441
remitted late, if a return is not filed, or if amounts deducted	4442
and withheld are not remitted. Interest accrues on past due	4443
amounts deducted and withheld at the rate prescribed in section	4444
5703.47 of the Revised Code. The commissioner and the tax	4445
administrator of the municipal corporation, as applicable, may	4446
collect past due amounts deducted and withheld and penalties and	4447
interest thereon by assessment under section 5747.13 of the	4448
Revised Code as if they were income taxes collected by an	4449
employer.	4450

(b) If a casino operator sells the casino facility or	4451
otherwise quits the casino business, the amounts deducted and	4452
withheld and any penalties and interest thereon are immediately	4453
due and payable. The successor shall withhold an amount of the	4454
purchase money that is sufficient to cover the amounts deducted	4455
and withheld and penalties and interest thereon until the	4456
predecessor casino operator produces either a receipt from the	4457
commissioner and the tax administrator of the municipal	4458
corporation, as applicable, showing that the amounts deducted and	4459
withheld and penalties and interest thereon have been paid or a	4460
certificate from the commissioner and the tax administrator of the	4461
municipal corporation, as applicable, indicating that no amounts	4462
deducted and withheld or penalties and interest thereon are due.	4463
If the successor fails to withhold purchase money, the successor	4464
is personally liable for payment of the amounts deducted and	4465
withheld and penalties and interest thereon, up to the amount of	4466
the purchase money.	4467

(C)(1) Annually, on or before the thirty-first day of	4468
January, a casino operator shall issue an information return to	4469
each person with respect to whom an amount has been deducted and	4470
withheld during the preceding calendar year. The information	4471
return shall show the total amount deducted from the person's	4472
winnings by the casino operator during the preceding calendar	4473
year.	4474

(2) Annually, on or before the thirty-first day of January, a	4475
casino operator shall provide to the commissioner a copy of each	4476
information return issued under division (C)(1) of this section	4477
for the preceding calendar year. The commissioner may require that	4478
the copies be transmitted electronically.	4479

(D) Amounts deducted and withheld shall be allowed as a	4480
credit against payment of the tax imposed by section 5747.02 of	4481
the Revised Code and shall be treated as taxes paid for purposes	4482
of section 5747.09 of the Revised Code. This division applies only	4483
to the person for whom the amount is deducted and withheld.	4484

(E) The failure of a casino operator to deduct and withhold	4485
the required amount from a person's winnings does not relieve the	4486
person from liability for the tax imposed by section 5747.02 of	4487
the Revised Code with respect to those winnings. And compliance	4488
with this section does not relieve a casino operator or a person	4489
who has winnings at a casino facility from compliance with	4490
relevant provisions of federal tax laws.	4491

(F) The commissioner and the tax administrator of the	4492
municipal corporation, as applicable, shall prescribe the form of	4493
the receipt and returns required by this section. The director of	4494
job and family services shall prescribe the form of the statement	4495
required by this section.	4496

(G) The commissioner may adopt rules that are necessary to	4497
administer this section.	4498

Sec. 5747.064. The requirements imposed under this section	4499
are in addition to the municipal income tax withholding	4500
requirements under section 718.031 of the Revised Code.	4501

(A) As used in this section, "video lottery terminal" has the	4502
same meaning as in section 3770.21 of the Revised Code.	4503

(B) If a person's prize award from a video lottery terminal	4504
is an amount for which reporting to the internal revenue service	4505
of the amount is required by section 6041 of the Internal Revenue	4506
Code, as amended, the lottery sales agent shall deduct and	4507
withhold Ohio income tax from the person's prize award at a rate	4508
of four per cent of the amount won and shall deduct and withhold	4509
municipal income tax from the person's winnings at the rate of tax	4510
of the municipal corporation in which the video lottery terminal	4511
facility is located. The lottery sales agent shall issue, to a	4512
person from whose prize award an amount has been deducted or	4513
withheld, a receipt for the amount deducted and withheld, and also	4514
shall obtain from the person additional information that will be	4515
necessary for the lottery sales agent to prepare the returns	4516
required by this section.	4517

(C) Amounts deducted and withheld by a lottery sales agent	4518
are held in trust for the benefit of the state and municipal	4519
corporations, as applicable.	4520

(1) On or before the tenth day of each month, the lottery	4521
sales agent shall file a return electronically with the tax	4522
commissioner and the tax administrator of the municipal	4523
corporation, as applicable, identifying the persons from whose	4524
prize awards amounts were deducted and withheld, the amount of	4525
each such deduction and withholding during the preceding month,	4526
the amount of the prize award from which each such amount was	4527
withheld, and any other information required by the commissioner	4528
and the tax administrator of the municipal corporation, as	4529
applicable. With the return, the lottery sales agent shall remit	4530
electronically to the commissioner and the tax administrator of	4531
the municipal corporation, as applicable, all the amounts deducted	4532
and withheld during the preceding month.	4533

(2) A lottery sales agent shall maintain a record of all	4534
receipts issued under division (B) of this section and shall make	4535
those records available to the commissioner and the tax	4536
administrator of the municipal corporation, as applicable, upon	4537
request. Such records shall be maintained in accordance with	4538
section 5747.17 of the Revised Code and any rules adopted pursuant	4539
thereto.	4540

(3) Annually, on or before the thirty-first day of January, a	4541
lottery sales agent shall file an annual return electronically	4542
with the tax commissioner and the tax administrator of the	4543
municipal corporation, as applicable, indicating the total amount	4544
deducted and withheld during the preceding calendar year. The	4545
lottery sales agent shall remit electronically with the annual	4546
return any amount that was deducted and withheld and that was not	4547
previously remitted. If the identity of a person and the amount	4548
deducted and withheld with respect to that person were omitted on	4549
a monthly return, that information shall be indicated on the	4550
annual return.	4551

(4)(a) A lottery sales agent who fails to file a return and	4552
remit the amounts deducted and withheld is personally liable for	4553
the amount deducted and withheld and not remitted. The	4554
commissioner and the tax administrator of the municipal	4555
corporation, as applicable, may impose a penalty of up to one	4556
thousand dollars if a return is filed late, if amounts deducted	4557
and withheld are remitted late, if a return is not filed, or if	4558
amounts deducted and withheld are not remitted. Interest accrues	4559
on past due amounts deducted and withheld at the rate prescribed	4560
in section 5703.47 of the Revised Code. The commissioner and the	4561
tax administrator of the municipal corporation, as applicable, may	4562
collect past due amounts deducted and withheld and penalties and	4563
interest thereon by assessment under section 5747.13 of the	4564
Revised Code as if they were income taxes collected by an	4565
employer.	4566

(b) If a lottery sales agent ceases to operate video lottery	4567
terminals, the amounts deducted and withheld and any penalties and	4568
interest thereon are immediately due and payable. A successor of	4569
the lottery sales agent that purchases the video lottery terminals	4570
from the agent shall withhold an amount of the purchase money that	4571
is sufficient to cover the amounts deducted and withheld and	4572
penalties and interest thereon until the predecessor lottery sales	4573
agent produces either a receipt from the tax commissioner and the	4574
tax administrator of the municipal corporation, as applicable,	4575
showing that the amounts deducted and withheld and penalties and	4576
interest thereon have been paid or a certificate from the	4577
commissioner and the tax administrator of the municipal	4578
corporation, as applicable, indicating that no amounts deducted	4579
and withheld or penalties and interest thereon are due. If the	4580
successor fails to withhold purchase money, the successor is	4581
personally liable for payment of the amounts deducted and withheld	4582
and penalties and interest thereon, up to the amount of the	4583
purchase money.	4584

(D)(1) Annually, on or before the thirty-first day of	4585
January, a lottery sales agent shall issue an information return	4586
to each person with respect to whom an amount has been deducted	4587
and withheld during the preceding calendar year. The information	4588
return shall show the total amount deducted from the person's	4589
prize award by the lottery sales agent during the preceding year.	4590

(2) Annually, on or before the thirty-first day of January, a	4591
lottery sales agent shall provide to the tax commissioner and the	4592
tax administrator of the municipal corporation, as applicable, a	4593
copy of each information return issued under division (D)(1) of	4594
this section for the preceding calendar year. The commissioner and	4595
the tax administrator of the municipal corporation, as applicable,	4596
may require that such copies be transmitted electronically.	4597

(E) Amounts deducted and withheld shall be allowed as a	4598
credit against payment of the tax imposed by section 5747.02 of	4599
the Revised Code and shall be treated as taxes paid for purposes	4600
of section 5747.09 of the Revised Code. This division applies only	4601
to the person for whom the amount is deducted and withheld.	4602

(F) The failure of a lottery sales agent to deduct and	4603
withhold the required amount from a person's prize award does not	4604
relieve the person from liability for the tax imposed by section	4605
5747.02 of the Revised Code with respect to that income.	4606
Compliance with this section does not relieve a lottery sales	4607
agent or a person who has a prize award from compliance with	4608
relevant provisions of federal tax laws.	4609

(G) The commissioner and the tax administrator of the	4610
municipal corporation, as applicable, shall prescribe the form of	4611
the receipt and returns required by this section and the	4612
commissioner may promulgate any rules necessary to administer the	4613
section.	4614

Sec. 5747.50.  (A) As used in this section:

4615

(1) "County's proportionate share of the calendar year 2007	4616
LGF and LGRAF distributions" means the percentage computed for the	4617
county under division (B)(1)(a) of section 5747.501 of the Revised	4618
Code.	4619

(2) "County's proportionate share of the total amount of the	4620
local government fund additional revenue formula" means each	4621
county's proportionate share of the state's population as	4622
determined for and certified to the county for distributions to be	4623
made during the current calendar year under division (B)(2)(a) of	4624
section 5747.501 of the Revised Code. If prior to the first day of	4625
January of the current calendar year the federal government has	4626
issued a revision to the population figures reflected in the	4627
estimate produced pursuant to division (B)(2)(a) of section	4628
5747.501 of the Revised Code, such revised population figures	4629
shall be used for making the distributions during the current	4630
calendar year.	4631

(3) "2007 LGF and LGRAF county distribution base available in	4632
that month" means the lesser of the amounts described in division	4633
(A)(3)(a) and (b) of this section, provided that the amount shall	4634
not be less than zero:	4635

(a) The total amount available for distribution to counties	4636
from the local government fund during the current month.	4637

(b) The total amount distributed to counties from the local	4638
government fund and the local government revenue assistance fund	4639
to counties in calendar year 2007 less the total amount	4640
distributed to counties under division (B)(1) of this section	4641
during previous months of the current calendar year.	4642

(4) "Local government fund additional revenue distribution	4643
base available during that month" means the total amount available	4644
for distribution to counties during the month from the local	4645
government fund, less any amounts to be distributed in that month	4646
from the local government fund under division (B)(1) of this	4647
section, provided that the local government fund additional	4648
revenue distribution base available during that month shall not be	4649
less than zero.	4650

(5) "Total amount available for distribution to counties"	4651
means the total amount available for distribution from the local	4652
government fund during the current month less the total amount	4653
available for distribution to municipal corporations during the	4654
current month under division (C) of this section.	4655

(B) On or before the tenth day of each month, the tax	4656
commissioner shall provide for payment to each county an amount	4657
equal to the sum of:	4658

(1) The county's proportionate share of the calendar year	4659
2007 LGF and LGRAF distributions multiplied by the 2007 LGF and	4660
LGRAF county distribution base available in that month, provided	4661
that if the 2007 LGF and LGRAF county distribution base available	4662
in that month is zero, no payment shall be made under division	4663
(B)(1) of this section for the month or the remainder of the	4664
calendar year; and	4665

(2) The county's proportionate share of the total amount of	4666
the local government fund additional revenue formula multiplied by	4667
the local government fund additional revenue distribution base	4668
available during that month.	4669

Money received into the treasury of a county under this	4670
division shall be credited to the undivided local government fund	4671
in the treasury of the county on or before the fifteenth day of	4672
each month. On or before the twentieth day of each month, the	4673
county auditor shall issue warrants against all of the undivided	4674
local government fund in the county treasury in the respective	4675
amounts allowed as provided in section 5747.51 of the Revised	4676
Code, and the treasurer shall distribute and pay such sums to the	4677
subdivision therein.	4678

(C)(1) As used in division (C) of this section:

4679

(a) "Total amount available for distribution to	4680
municipalities during the current month" means the product	4681
obtained by multiplying the total amount available for	4682
distribution from the local government fund during the current	4683
month by the aggregate municipal share.	4684

(b) "Aggregate municipal share" means the quotient obtained	4685
by dividing the total amount distributed directly from the local	4686
government fund to municipal corporations during calendar year	4687
2007 by the total distributions from the local government fund and	4688
local government revenue assistance fund during calendar year	4689
2007.	4690

(2) On or before the tenth day of each month, the tax	4691
commissioner shall provide for payment from the local government	4692
fund to each municipal corporation an amount equal to the product	4693
derived by multiplying the municipal corporation's percentage of	4694
the total amount distributed to all such municipal corporations	4695
under this division during calendar year 2007 by the total amount	4696
available for distribution to municipal corporations during the	4697
current month.	4698

(3) Payments received by a municipal corporation under this	4699
division shall be paid into its general fund and may be used for	4700
any lawful purpose.	4701

(4) The amount distributed to municipal corporations under	4702
this division during any calendar year shall not exceed the amount	4703
distributed directly from the local government fund to municipal	4704
corporations during calendar year 2007. If that maximum amount is	4705
reached during any month, distributions to municipal corporations	4706
in that month shall be as provided in divisions (C)(1) and (2) of	4707
this section, but no further distributions shall be made to	4708
municipal corporations under division (C) of this section during	4709
the remainder of the calendar year.	4710

(5) Upon being informed of a municipal corporation's	4711
dissolution, the tax commissioner shall cease providing for	4712
payments to that municipal corporation under division (C) of this	4713
section. The proportionate shares of the total amount available	4714
for distribution to each of the remaining municipal corporations	4715
under this division shall be increased on a pro rata basis.	4716

(D) Each municipal corporation which has in effect a tax	4717
imposed under Chapter 718. of the Revised Code shall, no later	4718
than the thirty-first day of August of each year, certify to the	4719
tax commissioner, on a form prescribed by the commissioner, the	4720
total amount of income taxestax revenue collected and refunded by	4721
such municipal corporation pursuant to such chapter during the	4722
preceding calendar year, arranged, when possible, by the type of	4723
income from which the revenue was collected or the refund was	4724
issued. The municipal corporation shall also report the amount of	4725
income tax revenue collected and refunded on behalf of a joint	4726
economic development district or a joint economic development zone	4727
that levies an income tax administered by the municipal	4728
corporation and the amount of such revenue distributed to	4729
contracting parties during the preceding calendar year. The tax	4730
commissioner may withhold payment of local government fund moneys	4731
pursuant to division (C) of this section from any municipal	4732
corporation for failure to comply with this reporting requirement.	4733

Sec. 5749.06.  (A)(1) Each severer liable for the tax imposed	4734
by section 5749.02 of the Revised Code and each severer or owner	4735
liable for the amounts due under section 1509.50 of the Revised	4736
Code shall make and file returns with the tax commissioner in the	4737
prescribed form and as of the prescribed times, computing and	4738
reflecting therein the tax as required by this chapter and amounts	4739
due under section 1509.50 of the Revised Code.	4740

(2) The returns shall be filed for every quarterly period,	4741
which periods shall end on the thirty-first day of March, the	4742
thirtieth day of June, the thirtieth day of September, and the	4743
thirty-first day of December of each year, as required by this	4744
section, unless a different return period is prescribed for a	4745
taxpayer by the commissioner.	4746

(B)(1) A separate return shall be filed for each calendar	4747
quarterly period, or other period, or any part thereof, during	4748
which the severer holds a license as provided by section 5749.04	4749
of the Revised Code, or is required to hold the license, or during	4750
which an owner is required to file a return. The return shall be	4751
filed within forty-five days after the last day of each such	4752
calendar month, or other period, or any part thereof, for which	4753
the return is required. The tax due is payable along with the	4754
return. All such returns shall contain such information as the	4755
commissioner may require to fairly administer the tax.	4756

(2) All returns shall be signed by the severer or owner, as	4757
applicable, shall contain the full and complete information	4758
requested, and shall be made under penalty of perjury.	4759

(C) If the commissioner believes that quarterly payments of	4760
tax would result in a delay that might jeopardize the collection	4761
of such tax payments, the commissioner may order that such	4762
payments be made weekly, or more frequently if necessary, such	4763
payments to be made not later than seven days following the close	4764
of the period for which the jeopardy payment is required. Such an	4765
order shall be delivered to the taxpayer personally or by	4766
certified mail and shall remain in effect until the commissioner	4767
notifies the taxpayer to the contrary.	4768

(D) Upon good cause the commissioner may extend for thirty	4769
days the period for filing any notice or return required to be	4770
filed under this section, and may remit all or a part of penalties	4771
that may become due under this chapter.	4772

(E) Any tax and any amount due under section 1509.50 of the	4773
Revised Code not paid by the day the tax or amount is due shall	4774
bear interest computed at the rate per annum prescribed by section	4775
5703.47 of the Revised Code on that amount due from the day that	4776
the amount was originally required to be paid to the day of actual	4777
payment or to the day an assessment was issued under section	4778
5749.07 or 5749.10 of the Revised Code, whichever occurs first.	4779

(F) A severer or owner, as applicable, that fails to file a	4780
complete return or pay the full amount due under this chapter	4781
within the time prescribed, including any extensions of time	4782
granted by the commissioner, shall be subject to a penalty not to	4783
exceed the greater of fifty dollars or ten per cent of the amount	4784
due for the period.	4785

(G)(1) A severer or owner, as applicable, shall remit	4786
payments electronically and, if required by the commissioner, file	4787
each return electronically. The commissioner may require that the	4788
severer or owner use the Ohio business gateway, as defined in	4789
section 718.051718.01 of the Revised Code, or another electronic	4790
means to file returns and remit payments electronically.	4791

(2) A severer or owner that is required to remit payments	4792
electronically under this section may apply to the commissioner,	4793
in the manner prescribed by the commissioner, to be excused from	4794
that requirement. The commissioner may excuse a severer or owner	4795
from the requirements of division (G) of this section for good	4796
cause.	4797

(3) If a severer or owner that is required to remit payments	4798
or file returns electronically under this section fails to do so,	4799
the commissioner may impose a penalty on the severer or owner not	4800
to exceed the following:	4801

(a) For the first or second payment or return the severer or	4802
owner fails to remit or file electronically, the greater of five	4803
per cent of the amount of the payment that was required to be	4804
remitted or twenty-five dollars;	4805

(b) For every payment or return after the second that the	4806
severer or owner fails to remit or file electronically, the	4807
greater of ten per cent of the amount of the payment that was	4808
required to be remitted or fifty dollars.	4809

(H)(1) All amounts that the commissioner receives under this	4810
section shall be deemed to be revenue from taxes imposed under	4811
this chapter or from the amount due under section 1509.50 of the	4812
Revised Code, as applicable, and shall be deposited in the	4813
severance tax receipts fund, which is hereby created in the state	4814
treasury.	4815

(2) The director of budget and management shall transfer from	4816
the severance tax receipts fund to the tax refund fund amounts	4817
equal to the refunds certified by the commissioner under section	4818
5749.08 of the Revised Code. Any amount transferred under division	4819
(H)(2) of this section shall be derived from receipts of the same	4820
tax or other amount from which the refund arose.	4821

(3) After the director of budget and management makes any	4822
transfer required by division (H)(2) of this section, but not	4823
later than the fifteenth day of the month following the end of	4824
each calendar quarter, the commissioner shall certify to the	4825
director the total amount remaining in the severance tax receipts	4826
fund organized according to the amount attributable to each	4827
natural resource and according to the amount attributable to a tax	4828
imposed by this chapter and the amounts due under section 1509.50	4829
of the Revised Code.	4830

(I) Penalties imposed under this section are in addition to	4831
any other penalty imposed under this chapter and shall be	4832
considered as revenue arising from the tax levied under this	4833
chapter or the amount due under section 1509.50 of the Revised	4834
Code, as applicable. The commissioner may collect any penalty or	4835
interest imposed under this section in the same manner as provided	4836
for the making of an assessment in section 5749.07 of the Revised	4837
Code. The commissioner may abate all or a portion of such interest	4838
or penalties and may adopt rules governing such abatements.	4839

Sec. 5751.07.  (A) Any person required to file returns under	4840
this chapter shall remit each tax payment, and, if required by the	4841
tax commissioner, file the tax return or the annual report,	4842
electronically. The commissioner may require taxpayers to use the	4843
Ohio business gateway as defined in section 718.051718.01 of the	4844
Revised Code to file returns and remit the tax, or may provide	4845
another means for taxpayers to file and remit the tax	4846
electronically.	4847

(B) A person required by this section to remit taxes or file	4848
returns electronically may apply to the tax commissioner, on the	4849
form prescribed by the commissioner, to be excused from that	4850
requirement. The commissioner may excuse a person from the	4851
requirements of this division for good cause.	4852

(C)(1) If a person required to remit taxes or file a return	4853
electronically under this section fails to do so, the commissioner	4854
may impose a penalty not to exceed the following:	4855

(a) For either of the first two tax periods the person so	4856
fails, the greater of twenty-five dollars or five per cent of the	4857
amount of the payment that was required to be remitted;	4858

(b) For the third and any subsequent tax periods the person	4859
so fails, the greater of fifty dollars or ten per cent of the	4860
amount of the payment that was required to be remitted.	4861

(2) The penalty imposed under division (C)(1) of this section	4862
is in addition to any other penalty imposed under this chapter and	4863
shall be considered as revenue arising from the tax imposed under	4864
this chapter. A penalty may be collected by assessment in the	4865
manner prescribed by section 5751.09 of the Revised Code. The tax	4866
commissioner may abate all or a portion of such a penalty.	4867

(D) The tax commissioner may adopt rules necessary to	4868
administer this section.	4869

Section 2.  That existing sections 128.46, 709.023, 715.013,	4870
718.02, 718.03, 718.04, 718.051, 718.07, 718.09, 718.10, 718.11,	4871
718.121, 718.13, 5703.02, 5703.059, 5703.57, 5717.011, 5717.03,	4872
5726.03, 5736.04, 5739.12, 5739.124, 5741.122, 5747.063, 5747.064,	4873
5747.50, 5749.06, and 5751.07 and sections 718.01, 718.011,	4874
718.041, 718.05, 718.06, 718.08, 718.12, and 718.14 of the	4875
Revised Code are hereby repealed.	4876

Section 3.  This act applies to municipal taxable years	4877
beginning on or after January 1, 2016. For municipal taxable years	4878
beginning before January 1, 2016, tax administrators may continue	4879
to administer, audit, and enforce the income tax of a municipal	4880
corporation under Chapter 718. and ordinances and resolutions of	4881
the municipal corporation as that chapter and those ordinances and	4882
resolutions existed before January 1, 2016.	4883

Section 4.  (A) There is hereby created the Municipal Income	4884
Tax Net Operating Loss Review Committee for the purpose of	4885
evaluating and quantifying the potential fiscal impact to	4886
municipal corporations levying an income tax requiring such	4887
municipal corporations to allow taxpayers to carry forward net	4888
operating losses for five years. The Committee is a public body	4889
for the purposes of section 121.22 of the Revised Code.	4890

(B) The Committee shall be composed of the following members:

4891

(1) Two members of the House of Representatives who are not	4892
of the same political party, appointed by the Speaker of the House	4893
of Representatives;	4894

(2) Two members of the Senate who are not of the same	4895
political party, appointed by the President of the Senate;	4896

(3) Three members representing municipal income taxpayers,	4897
appointed by the Speaker of the House of Representatives;	4898

(4) Three members representing municipal corporations that	4899
levy an income tax in calendar year 2016, appointed by the	4900
President of the Senate. At least two of the members appointed	4901
under division (B)(4) of this section shall represent municipal	4902
corporations that do not allow taxpayers to carry forward net	4903
operating losses to future taxable years.	4904

(5) One member appointed by the Governor, who shall serve as	4905
the chairperson of the Committee.	4906

The appointing authorities shall appoint members of the	4907
Committee not later than March 1, 2015. An appointed member shall	4908
serve until the member resigns or is removed by the member's	4909
appointing authority. Vacancies shall be filled in the same manner	4910
as original appointments. A vacancy on the committee does not	4911
impair the right of the other members to exercise all the	4912
functions of the Committee.	4913

The Committee shall meet for the first time on or before May	4914
31, 2015. Thereafter, the Committee shall meet at the call of the	4915
chairperson. The presence of a majority of the members of the	4916
Committee constitutes a quorum for the conduct of business of the	4917
Committee. The concurrence of at least a majority of the members	4918
of the Committee is necessary to approve the report issued by the	4919
Committee under division (E) of this section. Members of the	4920
Committee shall not be compensated or reimbursed for members'	4921
expenses.	4922

(C) On or before November 30, 2015, the Committee shall	4923
prescribe a method that municipal corporations shall use to	4924
estimate the difference between the municipal corporation's actual	4925
or projected municipal income tax revenue in 2012, 2013, 2014,	4926
2015, 2016, 2017, and 2018 and the actual or projected municipal	4927
income tax revenue that would have resulted in each of those years	4928
if the municipal corporation allowed net operating loss to be	4929
carried forward for five years for losses incurred in 2011, 2012,	4930
and 2013.	4931

(D) On or before September 30, 2016, each municipal	4932
corporation that levies an income tax in 2011, 2012, or 2013 shall	4933
report to the Municipal Income Tax Net Operating Loss Review	4934
Committee the difference between the municipal corporation's	4935
actual or projected municipal income tax revenue in 2012, 2013,	4936
2014, 2015, 2016, 2017, and 2018 and the actual or projected	4937
municipal income tax revenue that would have resulted in each of	4938
those years if the municipal corporation allowed net operating	4939
loss to be carried forward for five years for losses incurred in	4940
2011, 2012, and 2013, as estimated by the method prescribed by the	4941
Committee under division (C) of this section.	4942

(E) If the Municipal Income Tax Net Operating Loss Review	4943
Committee receives reports from a representative sample, then the	4944
Committee shall review the information reported by municipal	4945
corporations under division (D) of this section and calculate the	4946
total of the revenue effects reported by such municipal	4947
corporations. On or before May 1, 2017, the Committee shall issue	4948
a written report to the Speaker and Minority Leader of the House	4949
of Representatives and the President and Minority Leader of the	4950
Senate reporting the Committee's findings and estimated revenue	4951
impact of requiring municipal corporations levying an income tax	4952
to allow net operating loss to be carried forward for five years.	4953
The report shall contain recommendations to address revenue	4954
shortfalls, which may include, but which shall not be limited to,	4955
the use of supplemental funds from the Local Government Fund to	4956
mitigate those shortfalls.	4957

(F) Nothing in this section delays or otherwise affects the	4958
taxable years to which division (E)(8) of section 718.01 of the	4959
Revised Code, as enacted by this act, apply as prescribed in that	4960
division.	4961

(G) The Municipal Income Tax Net Operating Loss Review	4962
Committee shall cease to exist on May 1, 2017.	4963

(H) As used in this section, "representative sample" includes	4964
at least three cities with a population of more than two hundred	4965
fifty thousand, five cities or villages with a higher ratio of	4966
business taxpayers to resident individual taxpayers relative to	4967
the state average, and five cities or villages with a higher ratio	4968
of resident individual taxpayers to business taxpayers relative to	4969
the state average.	4970

Section 5.  (A) There is hereby created the Municipal Income	4971
Tax Revenue Reporting Study Committee. The Committee shall study	4972
the feasibility of requiring municipal corporations to separately	4973
report the portion of the municipal corporation's income tax	4974
revenue that is derived from taxes paid by resident individuals	4975
and the portion of such revenue that is derived from taxes paid by	4976
nonresident individuals. The Committee is a public body for the	4977
purposes of section 121.22 of the Revised Code.	4978

(B) The Committee shall be composed of the following members:

4979

(1) Three members of the Senate, two of whom shall be	4980
appointed by the President of the Senate and one of whom shall be	4981
appointed by the Minority Leader of the Senate;	4982

(2) Three members of the House of Representatives, two of	4983
whom shall be appointed by the Speaker of the House of	4984
Representatives and one of whom shall be appointed by the Minority	4985
Leader of the House of Representatives;	4986

(3) Six members representing business interests or municipal	4987
corporations that levy an income tax, two of whom shall be	4988
appointed by the President of the Senate, two of whom shall be	4989
appointed by the Speaker of the House of Representatives, one of	4990
whom shall be appointed by the Minority Leader of the Senate, and	4991
one of whom shall be appointed by the Minority Leader of the House	4992
of Representatives.	4993

The appointments shall be made within thirty days after the	4994
effective date of this section. An appointed member shall serve	4995
until the member resigns or is removed by the member's appointing	4996
authority. Vacancies shall be filled in the same manner as	4997
original appointments.	4998

Members of the Committee shall not be compensated or	4999
reimbursed for members' expenses.	5000

(C) The Committee shall study the costs and benefits of, and	5001
challenges involved in, requiring that municipal corporations	5002
separately report the portion of the municipal corporation's	5003
income tax revenue that is derived from taxes paid by resident	5004
individuals and the portion of such revenue that is derived from	5005
taxes paid by nonresident individuals. On or before May 1, 2015,	5006
the Committee shall issue a report of its findings and	5007
recommendations with respect to the reporting requirement. The	5008
Committee shall provide copies of the report to the Governor, the	5009
President and Minority Leader of the Senate, and the Speaker and	5010
Minority Leader of the House of Representatives.	5011

(D) The Committee shall cease to exist on May 1, 2015.

5012

(E) It is the intent of the General Assembly to provide	5013
transparency with regards to the source of municipal income tax	5014
receipts beginning on and after January 1, 2015, but not to impose	5015
a significant burden upon municipal corporations.	5016