As Passed by the Senate

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 

Senators Burke, Coley, Eklund, Faber, Jones, Jordan, Peterson, Schaffer, Seitz 

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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, 718.18, 718.19, 718.23 to 718.28, 718.30,

11

718.31, 718.35 to 718.39, 718.41, and 718.99, and

12

to repeal sections 718.01, 718.011, 718.041,

13

718.05, 718.06, 718.08, 718.12, and 718.14 of the

14

Revised Code to revise the laws governing income

15

taxes 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
718.18, 718.19, 718.23, 718.24, 718.25, 718.26, 718.27, 718.28,	25
718.30, 718.31, 718.35, 718.36, 718.37, 718.38, 718.39, 718.41,	26
and 718.99 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) "Assessment" means a written finding by the tax	1130
administrator that a person has underpaid municipal income tax, or	1131
owes penalty and interest, or any combination of tax, penalty, or	1132
interest, to the municipal corporation that commences the person's	1133
time limitation for making an appeal to the local board of tax	1134
review pursuant to section 718.11 of the Revised Code, and has	1135
"ASSESSMENT" written in all capital letters at the top of such	1136
finding.	1137

(2) "Assessment" does not include an informal notice denying	1138
a request for refund issued under division (B)(3) of section	1139
718.19 of the Revised Code, a billing statement notifying a	1140
taxpayer of current or past-due balances owed to the municipal	1141
corporation, a tax administrator's request for additional	1142
information, a notification to the taxpayer of mathematical	1143
errors, or a tax administrator's other written correspondence to a	1144
person or taxpayer that does meet the criteria prescribed by	1145
division (PP)(1) of this section.	1146

(QQ) "Taxpayers' rights and responsibilities" means the	1147
rights provided to taxpayers in sections 718.11, 718.12, 718.19,	1148
718.23, 718.36, 718.37, 718.38, 5717.011, and 5717.03 of the	1149
Revised Code and the responsibilities of taxpayers to file,	1150
report, withhold, remit, and pay municipal income tax and	1151
otherwise comply with Chapter 718. of the Revised Code and	1152
resolutions, ordinances, and rules adopted by a municipal	1153
corporation for the imposition and administration of a municipal	1154
income tax.	1155

(RR) "Qualified municipal corporation" means a municipal	1156
corporation that, by resolution or ordinance adopted on or before	1157
December 31, 2011, adopted Ohio adjusted gross income, as defined	1158
by section 5747.01 of the Revised Code, as the income subject to	1159
tax for the purposes of imposing a municipal income tax.	1160

(SS)(1) "Pre-2017 net operating loss carryforward" means any	1161
net operating loss incurred in a taxable year beginning before	1162
January 1, 2017, to the extent such loss was permitted, by a	1163
resolution or ordinance of the municipal corporation that was	1164
adopted by the municipal corporation before January 1, 2016, to be	1165
carried forward and utilized to offset income or net profit	1166
generated in such municipal corporation in future taxable years.	1167

(2) For the purpose of calculating municipal taxable income,	1168
any pre-2017 net operating loss carryforward may be carried	1169
forward to any taxable year, including taxable years beginning in	1170
2017 or thereafter, for the number of taxable years provided in	1171
the resolution or ordinance or until fully utilized, whichever is	1172
earlier.	1173

(TT) "Small employer" means any employer that had total	1174
revenue of less than five hundred thousand dollars during the	1175
preceding taxable year. For purposes of this division, "total	1176
revenue" means receipts of any type or kind, including, but not	1177
limited to, sales receipts; payments; rents; profits; gains,	1178
dividends, and other investment income; compensation; commissions;	1179
premiums; money; property; grants; contributions; donations;	1180
gifts; program service revenue; patient service revenue; premiums;	1181
fees, including premium fees and service fees; tuition payments;	1182
unrelated business revenue; reimbursements; any type of payment	1183
from a governmental unit, including grants and other allocations;	1184
and any other similar receipts reported for federal income tax	1185
purposes or under generally accepted accounting principles. "Small	1186
employer" does not include the federal government; any state	1187
government, including any state agency or instrumentality; any	1188
political subdivision; or any entity treated as a government for	1189
financial accounting and reporting purposes.	1190

(UU) "Audit" means the examination of a person or the	1191
inspection of the books, records, memoranda, or accounts of a	1192
person for the purpose of determining liability for a municipal	1193
income tax.	1194

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

1195

(1) "Employer" includes a person that is a related member to	1196
or of an employer.	1197

(2) "Professional athlete" means an athlete who performs	1198
services in a professional athletic event for wages or other	1199
remuneration.	1200

(3) "Professional entertainer" means a person who performs	1201
services in the professional performing arts for wages or other	1202
remuneration on a per-event basis.	1203

(4) "Public figure" means a person of prominence who performs	1204
services at discrete events, such as speeches, public appearances,	1205
or similar events, for wages or other remuneration on a per-event	1206
basis.	1207

(5) "Fixed location" means a permanent place of doing	1208
business in this state, such as an office, warehouse, storefront,	1209
or similar location owned or controlled by an employer.	1210

(6) "Worksite location" means a construction site or other	1211
temporary worksite in this state at which the employer provides	1212
services for more than twenty days during the calendar year.	1213
"Worksite location" does not include the home of an employee.	1214

(7) "Principal place of work" means the fixed location to	1215
which an employee is required to report for employment duties on a	1216
regular and ordinary basis. If the employee is not required to	1217
report for employment duties on a regular and ordinary basis to a	1218
fixed location, "principal place of work" means the worksite	1219
location in this state to which the employee is required to report	1220
for employment duties on a regular and ordinary basis. If the	1221
employee is not required to report for employment duties on a	1222
regular and ordinary basis to a fixed location or worksite	1223
location, "principal place of work" means the location in this	1224
state at which the employee spends the greatest number of days in	1225
a calendar year performing services for or on behalf of the	1226
employee's employer.	1227

If there is not a single municipal corporation in which the	1228
employee spent the "greatest number of days in a calendar year"	1229
performing services for or on behalf of the employer, but instead	1230
there are two or more municipal corporations in which the employee	1231
spent an identical number of days that is greater than the number	1232
of days the employee spent in any other municipal corporation, the	1233
employer shall allocate any of the employee's qualifying wages	1234
subject to division (B)(1)(a) of this section among those two or	1235
more municipal corporations. The allocation shall be made using	1236
any fair and reasonable method, including, but not limited to, an	1237
equal allocation among such municipal corporations or an	1238
allocation based upon the time spent or sales made by the employee	1239
in each such municipal corporation. A municipal corporation to	1240
which qualifying wages are allocated under this division shall be	1241
the employee's "principal place of work" with respect to those	1242
qualifying wages for the purposes of this section.	1243

For the purposes of this division, the location at which an	1244
employee spends a particular day shall be determined in accordance	1245
with division (B)(2) of this section, except that "location" shall	1246
be substituted for "municipal corporation" wherever "municipal	1247
corporation" appears in that division.	1248

(B)(1) Subject to divisions (C), (E), (F), and (G) of this	1249
section, an employer is not required to withhold municipal income	1250
tax on qualifying wages paid to an employee for the performance of	1251
personal services in a municipal corporation that imposes such a	1252
tax if the employee performed such services in the municipal	1253
corporation on twenty or fewer days in a calendar year, unless one	1254
of the following conditions applies:	1255

(a) The employee's principal place of work is located in the	1256
municipal corporation.	1257

(b) The employee performed services at one or more presumed	1258
worksite locations in the municipal corporation. For the purposes	1259
of this division, "presumed worksite location" means a	1260
construction site or other temporary worksite in this state at	1261
which the employer provides services that can reasonably be	1262
expected by the employer to last more than twenty days in a	1263
calendar year. Services can "reasonably be expected by the	1264
employer to last more than twenty days" if either of the following	1265
applies at the time the services commence:	1266

(i) The nature of the services are such that it will require	1267
more than twenty days of actual services to complete the services;	1268

(ii) The agreement between the employer and its customer to	1269
perform services at a location requires the employer to perform	1270
actual services at the location for more than twenty days.	1271

(c) The employee is a resident of the municipal corporation	1272
and has requested that the employer withhold tax from the	1273
employee's qualifying wages as provided in section 718.03 of the	1274
Revised Code.	1275

(d) The employee is a professional athlete, professional	1276
entertainer, or public figure, and the qualifying wages are paid	1277
for the performance of services in the employee's capacity as a	1278
professional athlete, professional entertainer, or public figure.	1279

(2) For the purposes of division (B)(1) of this section, an	1280
employee shall be considered to have spent a day performing	1281
services in a municipal corporation only if the employee spent	1282
more time performing services for or on behalf of the employer in	1283
that municipal corporation than in any other municipal corporation	1284
on that day. For the purposes of determining the amount of time an	1285
employee spent in a particular location, the time spent performing	1286
one or more of the following activities shall be considered to	1287
have been spent at the employee's principal place of work:	1288

(a) Traveling to the location at which the employee will	1289
first perform services for the employer for the day;	1290

(b) Traveling from a location at which the employee was	1291
performing services for the employer to any other location;	1292

(c) Traveling from any location to another location in order	1293
to pick up or load, for the purpose of transportation or delivery,	1294
property that has been purchased, sold, assembled, fabricated,	1295
repaired, refurbished, processed, remanufactured, or improved by	1296
the employee's employer;	1297

(d) Transporting or delivering property described in division	1298
(B)(2)(c) of this section, provided that, upon delivery of the	1299
property, the employee does not temporarily or permanently affix	1300
the property to real estate owned, used, or controlled by a person	1301
other than the employee's employer;	1302

(e) Traveling from the location at which the employee makes	1303
the employee's final delivery or pick-up for the day to either the	1304
employee's principal place of work or a location at which the	1305
employee will not perform services for the employer.	1306

(C) If the principal place of work of an employee is located	1307
in a municipal corporation that imposes an income tax in	1308
accordance with this chapter, the exception from withholding	1309
requirements described in division (B)(1) of this section shall	1310
apply only if, with respect to the employee's qualifying wages	1311
described in that division, the employer withholds and remits tax	1312
on such qualifying wages to the municipal corporation in which the	1313
employee's principal place of work is located.	1314

(D)(1) Except as provided in division (D)(2) of this section,	1315
if, during a calendar year, the number of days an employee spends	1316
performing personal services in a municipal corporation exceeds	1317
the twenty-day threshold described in division (B)(1) of this	1318
section, the employer shall withhold and remit tax to that	1319
municipal corporation for any subsequent days in that calendar	1320
year on which the employer pays qualifying wages to the employee	1321
for personal services performed in that municipal corporation.	1322

(2) An employer required to begin withholding tax for a	1323
municipal corporation under division (D)(1) of this section may	1324
elect to withhold tax for that municipal corporation for the first	1325
twenty days on which the employer paid qualifying wages to the	1326
employee for personal services performed in that municipal	1327
corporation.	1328

(3) If an employer makes the election described in division	1329
(D)(2) of this section, the taxes withheld and paid by such an	1330
employer during those first twenty days to the municipal	1331
corporation in which the employee's principal place of work is	1332
located are refundable to the employee.	1333

(E) Without regard to the number of days in a calendar year	1334
on which an employee performs personal services in any municipal	1335
corporation, an employer shall withhold municipal income tax on	1336
all of the employee's qualifying wages for a taxable year and	1337
remit that tax only to the municipal corporation in which the	1338
employer's fixed location is located if the employer qualifies as	1339
a small employer as defined in section 718.01 of the Revised Code.	1340

To determine whether an employer qualifies as a small	1341
employer for a taxable year, a tax administrator may require the	1342
employer to provide the tax administrator with the employer's	1343
federal income tax return for the preceding taxable year.	1344

(F) Divisions (B)(1) and (D) of this section shall not apply	1345
to the extent that a tax administrator and an employer enter into	1346
an agreement regarding the manner in which the employer shall	1347
comply with the requirements of section 718.03 of the Revised	1348
Code.	1349

(G) In the case of a person performing personal services at a	1350
petroleum refinery located in a municipal corporation that imposes	1351
a tax on income, an employer is not required to withhold municipal	1352
income tax on the qualifying wages of such a person if the person	1353
performs those services on twelve or fewer days in a calendar	1354
year, unless the principal place of work of the employer is	1355
located in another municipal corporation in this state that	1356
imposes a tax applying to compensation paid to the person for	1357
services performed on those days and the person is not liable to	1358
that other municipal corporation for tax on the compensation paid	1359
for such services. For the purposes of this division, a petroleum	1360
refinery is a facility with a standard industrial classification	1361
code facility classification of 2911, petroleum refining.	1362

Notwithstanding division (D) of this section, if, during a	1363
calendar year, the number of days an individual performs personal	1364
services at a petroleum refinery exceeds twelve, the employer	1365
shall withhold tax for the municipal corporation for the first	1366
twelve days for which the employer paid qualifying wages to the	1367
individual and for all subsequent days in the calendar year on	1368
which the individual performed services at the refinery.	1369

Sec. 718.012.  (A)(1) An individual is presumed to be	1370
domiciled in a municipal corporation for all or part of a taxable	1371
year if the individual was domiciled in the municipal corporation	1372
on the last day of the immediately preceding taxable year or if	1373
the tax administrator reasonably concludes that the individual is	1374
domiciled in the municipal corporation for all or part of the	1375
taxable year.	1376

(2) An individual may rebut the presumption of domicile	1377
described in division (A)(1) of this section if the individual	1378
establishes by a preponderance of the evidence that the individual	1379
was not domiciled in the municipal corporation for all or part of	1380
the taxable year.	1381

(B) For the purpose of determining whether an individual is	1382
domiciled in a municipal corporation for all or part of a taxable	1383
year, only the following factors shall be considered:	1384

(1) The location of financial institutions in which the	1385
individual or the individual's spouse have any accounts,	1386
including, but not limited to, checking, savings, certificates of	1387
deposit, or individual retirement accounts;	1388

(2) The location of issuers of credit cards to the individual	1389
or the individual's spouse or of any other persons making	1390
installment loans to the individual or the individual's spouse;	1391

(3) The location of institutional lenders which have made	1392
loans to, or which are guaranteed by, the individual or the	1393
individual's spouse;	1394

(4) The location of investment facilities, brokerage firms,	1395
realtors, financial advisors, or consultants used by the	1396
individual or the individual's spouse;	1397

(5) The location of either the insurance company that issued	1398
or the insurance agent that sold any policy of insurance to the	1399
individual or the individual's spouse, including, but not limited	1400
to, life, health, disability, automobile, or homeowner's	1401
insurance;	1402

(6) The location of law firms, accounting firms, and similar	1403
professionals utilized by the individual or the individual's	1404
spouse for legal, tax, accounting, financial, or retirement	1405
services;	1406

(7) The location of physicians, dentists, osteopaths,	1407
optometrists, or other health care providers, or veterinarians	1408
utilized by the individual or the individual's spouse;	1409

(8) The location of organizations described in section 501(c)	1410
of the Internal Revenue Code to which the individual or the	1411
individual's spouse make contributions or other payments or in	1412
which they participate as a congregant, member, board member,	1413
committee member, adviser, or consultant;	1414

(9) The location of burial plots owned by the individual or	1415
the individual's spouse;	1416

(10) The location of business ventures or business entities	1417
in which the individual or the individual's spouse has a more than	1418
twenty-five per cent ownership interest or in which the individual	1419
exercises, either individually or jointly, significant control	1420
over the affairs of the venture or entity;	1421

(11) The recitation of residency or domicile in a will,	1422
trust, or other estate planning document;	1423

(12) The location of the individual's friends, dependents as	1424
defined in section 152 of the Internal Revenue Code, and family	1425
members other than the individual's spouse, if the individual is	1426
not legally separated from the individual's spouse under a decree	1427
of divorce or separate maintenance as provided in section	1428
7703(a)(2) of the Internal Revenue Code;	1429

(13) The location of educational institutions attended by the	1430
individual's dependents as defined in section 152 of the Internal	1431
Revenue Code, to the extent that tuition paid to such educational	1432
institution is based on the residency of the individual or the	1433
individual's spouse in the municipal corporation where the	1434
educational institution is located;	1435

(14) The location of trustees, executors, guardians, or other	1436
fiduciaries named in estate planning documents of the individual	1437
or the individual's spouse;	1438

(15) The location of all businesses at which the individual	1439
or the individual's spouse makes purchases of tangible personal	1440
property;	1441

(16) The location where the individual married;

1442

(17) The location or identity of recipients of political	1443
contributions made by the individual or the individual's spouse;	1444

(18) The number of contact periods the individual has with	1445
the municipal corporation. For the purposes of this division, an	1446
individual has one "contact period" with a municipal corporation	1447
if the individual is away overnight from the individual's abode	1448
located outside of the municipal corporation and while away	1449
overnight from that abode spends at least some portion, however	1450
minimal, of each of two consecutive days in the municipal	1451
corporation.	1452

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

1453

(20) The location at which the individual is registered to	1454
vote;	1455

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

1456

(22) The location of real estate for which the individual	1457
claimed a property tax exemption or reduction allowed on the basis	1458
of the individual's residence or domicile;	1459

(23) The location and value of abodes owned or leased by the	1460
individual;	1461

(24) Declarations, written or oral, made by the individual	1462
regarding the individual's residency;	1463

(25) The primary location at which the individual is	1464
employed.	1465

Sec. 718.02.  This section does not apply to taxpayers that	1466
are subject to and required to file reports under Chapter 5745. of	1467
the Revised Code.applies to any taxpayer engaged in a business or	1468
profession in a municipal corporation that imposes an income tax	1469
in accordance with this chapter, unless the taxpayer is an	1470
individual who resides in the municipal corporation or the	1471
taxpayer is an electric company, combined company, or telephone	1472
company that is subject to and required to file reports under	1473
Chapter 5745. of the Revised Code.	1474

(A) Except as otherwise provided in division (D)(B) of this	1475
section, net profit from a business or profession conducted both	1476
within and without the boundaries of a municipal corporation shall	1477
be considered as having a taxable situs in suchthe municipal	1478
corporation for purposes of municipal income taxation in the same	1479
proportion as the average ratio of the following:	1480

(1) The average original cost of the real property and	1481
tangible personal property owned or used by the taxpayer in the	1482
business or profession in suchthe municipal corporation during	1483
the taxable period to the average original cost of all of the real	1484
and tangible personal property owned or used by the taxpayer in	1485
the business or profession during the same period, wherever	1486
situated.	1487

As used in the preceding paragraph, tangible personal or real	1488
property shall include property rented or leased by the taxpayer	1489
and the value of such property shall be determined by multiplying	1490
the annual rental thereon by eight;	1491

(2) Wages, salaries, and other compensation paid during the	1492
taxable period to personsindividuals employed in the business or	1493
profession for services performed in suchthe municipal	1494
corporation to wages, salaries, and other compensation paid during	1495
the same period to personsindividuals employed in the business or	1496
profession, wherever theirthe individual's services are	1497
performed, excluding compensation that is not taxable by the	1498
municipal corporation under section 718.011from which taxes are	1499
not required to be withheld under section 718.011 of the Revised	1500
Code;	1501

(3) GrossTotal gross receipts of the business or profession	1502
from sales and rentals made and services performed during the	1503
taxable period in suchthe municipal corporation to total gross	1504
receipts of the business or profession during the same period from	1505
sales, rentals, and services, wherever made or performed.	1506

If the foregoing apportionment formula does not produce an	1507
equitable result, another basis may be substituted, under uniform	1508
regulations, so as to produce an equitable result.	1509

(B) As used in division (A) of this section, "sales made in a	1510
municipal corporation" mean:	1511

(1) All sales of tangible personal property delivered within	1512
such municipal corporation regardless of where title passes if	1513
shipped or delivered from a stock of goods within such municipal	1514
corporation;	1515

(2) All sales of tangible personal property delivered within	1516
such municipal corporation regardless of where title passes even	1517
though transported from a point outside such municipal corporation	1518
if the taxpayer is regularly engaged through its own employees in	1519
the solicitation or promotion of sales within such municipal	1520
corporation and the sales result from such solicitation or	1521
promotion;	1522

(3) All sales of tangible personal property shipped from a	1523
place within such municipal corporation to purchasers outside such	1524
municipal corporation regardless of where title passes if the	1525
taxpayer is not, through its own employees, regularly engaged in	1526
the solicitation or promotion of sales at the place where delivery	1527
is made.	1528

(C) Except as otherwise provided in division (D) of this	1529
section, net(B)(1) If the apportionment factors described in	1530
division (A) of this section do not fairly represent the extent of	1531
a taxpayer's business activity in a municipal corporation, the	1532
taxpayer may request, or the tax administrator of the municipal	1533
corporation may require, that the taxpayer use, with respect to	1534
all or any portion of the income of the taxpayer, an alternative	1535
apportionment method involving one or more of the following:	1536

(a) Separate accounting;

1537

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

1538

(c) The inclusion of one or more additional factors that	1539
would provide for a more fair apportionment of the income of the	1540
taxpayer to the municipal corporation;	1541

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

1542

(2) A taxpayer request to use an alternative apportionment	1543
method shall be in writing and shall accompany a tax return,	1544
timely filed appeal of an assessment, or timely filed amended tax	1545
return. The taxpayer may use the requested alternative method	1546
unless the tax administrator denies the request in an assessment	1547
issued within the period prescribed by division (A) of section	1548
718.12 of the Revised Code.	1549

(3) A tax administrator may require a taxpayer to use an	1550
alternative apportionment method as described in division (B)(1)	1551
of this section only by issuing an assessment to the taxpayer	1552
within the period prescribed by division (A) of section 718.12 of	1553
the Revised Code.	1554

(4) Nothing in division (B) of this section nullifies or	1555
otherwise affects any alternative apportionment arrangement	1556
approved by a tax administrator or otherwise agreed upon by both	1557
the tax administrator and taxpayer before January 1, 2016.	1558

(C) As used in division (A)(2) of this section, "wages,	1559
salaries, and other compensation" includes only wages, salaries,	1560
or other compensation paid to an employee for services performed	1561
at any of the following locations:	1562

(1) A location that is owned, controlled, or used by, rented	1563
to, or under the possession of one of the following:	1564

(a) The employer;

1565

(b) A vendor, customer, client, or patient of the employer,	1566
or a related member of such a vendor, customer, client, or	1567
patient;	1568

(c) A vendor, customer, client, or patient of a person	1569
described in division (C)(1)(b) of this section, or a related	1570
member of such a vendor, customer, client, or patient.	1571

(2) Any location at which a trial, appeal, hearing,	1572
investigation, inquiry, review, court-martial, or similar	1573
administrative, judicial, or legislative matter or proceeding is	1574
being conducted, provided that the compensation is paid for	1575
services performed for, or on behalf of, the employer or that the	1576
employee's presence at the location directly or indirectly	1577
benefits the employer;	1578

(3) Any other location, if the tax administrator determines	1579
that the employer directed the employee to perform the services at	1580
the other location in lieu of a location described in division	1581
(C)(1) or (2) of this section solely in order to avoid or reduce	1582
the employer's municipal income tax liability. If a tax	1583
administrator makes such a determination, the employer may dispute	1584
the determination by establishing, by a preponderance of the	1585
evidence, that the tax administrator's determination was	1586
unreasonable.	1587

(D) For the purposes of division (A)(3) of this section,	1588
receipts from sales and rentals made and services performed shall	1589
be sitused to a municipal corporation as follows:	1590

(1) Gross receipts from the sale of tangible personal	1591
property shall be sitused to the municipal corporation in which	1592
the sale originated. For the purposes of this division, a sale of	1593
property originates in a municipal corporation if, regardless of	1594
where title passes, the property meets any of the following	1595
criteria:	1596

(a) The property is shipped to or delivered within the	1597
municipal corporation from a stock of goods located within the	1598
municipal corporation.	1599

(b) The property is delivered within the municipal	1600
corporation from a location outside the municipal corporation,	1601
provided the taxpayer is regularly engaged through its own	1602
employees in the solicitation or promotion of sales within such	1603
municipal corporation and the sales result from such solicitation	1604
or promotion.	1605

(c) The property is shipped from a place within the municipal	1606
corporation to purchasers outside the municipal corporation,	1607
provided that the taxpayer is not, through its own employees,	1608
regularly engaged in the solicitation or promotion of sales at the	1609
place where delivery is made.	1610

(2) Gross receipts from the sale of services shall be sitused	1611
to the municipal corporation to the extent that such services are	1612
performed in the municipal corporation.	1613

(3) To the extent included in income, gross receipts from the	1614
sale of real property located in the municipal corporation shall	1615
be sitused to the municipal corporation.	1616

(4) To the extent included in income, gross receipts from	1617
rents and royalties from real property located in the municipal	1618
corporation shall be sitused to the municipal corporation.	1619

(5) Gross receipts from rents and royalties from tangible	1620
personal property shall be sitused to the municipal corporation	1621
based upon the extent to which the tangible personal property is	1622
used in the municipal corporation.	1623

(E) The net profit received by an individual taxpayer from	1624
the rental activity not constituting a business or professionof	1625
real estate owned directly by the individual or by a disregarded	1626
entity owned by the individual shall be subject to tax only by the	1627
municipal corporation in which the property generating the net	1628
profit is located and the municipal corporation in which the	1629
individual taxpayer that receives the net profit resides.	1630

(D) This section does not apply to individuals who are	1631
residents of the municipal corporation and, except as otherwise	1632
provided in section 718.01 of the Revised Code, a municipal	1633
corporation may impose a tax on all income earned by residents of	1634
the municipal corporation to the extent allowed by the United	1635
States Constitution.	1636

(E) If, in computing the taxpayer's adjusted federal taxable	1637
income, the taxpayer deducted any amount with respect to a stock	1638
option granted to an employee, and if the employee is not required	1639
to include in income any amount or any portion thereof because it	1640
is exempted from taxation under division (H)(10) of section 718.01	1641
of the Revised Code and division (A)(2)(d) of section 718.03 of	1642
the Revised Code by a municipal corporation to which the taxpayer	1643
has apportioned a portion of its net profit, the taxpayer shall	1644
add the amount that is exempt from taxation to the taxpayer's net	1645
profit that was apportioned to that municipal corporation. In no	1646
case shall a taxpayer be required to add to its net profit that	1647
was apportioned to that municipal corporation any amount other	1648
than the amount upon which the employee would be required to pay	1649
tax were the amount related to the stock option not exempted from	1650
taxation.	1651

This division applies solely for the purpose of making an	1652
adjustment to the amount of a taxpayer's net profit that was	1653
apportioned to a municipal corporation under divisions (A) and (B)	1654
of this section.	1655

A municipal corporation shall allow such taxpayers to elect	1656
to use separate accounting for the purpose of calculating net	1657
profit sitused under this division to the municipal corporation in	1658
which the property is located.	1659

(F)(1) Except as provided in division (F)(2) of this section,	1660
commissions received by a real estate agent or broker relating to	1661
the sale, purchase, or lease of real estate shall be sitused to	1662
the municipal corporation in which the real estate is located. Net	1663
profit reported by the real estate agent or broker shall be	1664
allocated to a municipal corporation based upon the ratio of the	1665
commissions the agent or broker received from the sale, purchase,	1666
or lease of real estate located in the municipal corporation to	1667
the commissions received from the sale, purchase, or lease of real	1668
estate everywhere in the taxable year.	1669

(2) An individual who is a resident of a municipal	1670
corporation that imposes a municipal income tax shall report the	1671
individual's net profit from all real estate activity on the	1672
individual's annual tax return for that municipal corporation. The	1673
individual may claim a credit for taxes the individual paid on	1674
such net profit to another municipal corporation to the extent	1675
that such a credit is allowed under the municipal income tax	1676
ordinance, or rules of the municipal corporation of residence.	1677

(G) If, in computing a taxpayer's adjusted federal taxable	1678
income, the taxpayer deducted any amount with respect to a stock	1679
option granted to an employee, and if the employee is not required	1680
to include in the employee's income any such amount or a portion	1681
thereof because it is exempted from taxation under divisions	1682
(C)(12) and (R)(1)(d) of section 718.01 of the Revised Code by a	1683
municipal corporation to which the taxpayer has apportioned a	1684
portion of its net profit, the taxpayer shall add the amount that	1685
is exempt from taxation to the taxpayer's net profit that was	1686
apportioned to that municipal corporation. In no case shall a	1687
taxpayer be required to add to its net profit that was apportioned	1688
to that municipal corporation any amount other than the amount	1689
upon which the employee would be required to pay tax were the	1690
amount related to the stock option not exempted from taxation.	1691

This division applies solely for the purpose of making an	1692
adjustment to the amount of a taxpayer's net profit that was	1693
apportioned to a municipal corporation under this section.	1694

(H) When calculating the ratios described in division (A) of	1695
this section for the purposes of that division or division (B) of	1696
this section, the owner of a disregarded entity shall include in	1697
the owner's ratios the property, payroll, and gross receipts of	1698
such disregarded entity.	1699

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

1700

(1) "Other payer" means any person, other than an	1701
individual's employer or the employer's agent, that pays an	1702
individual any amount included in the federal gross income of the	1703
individual.	1704

(2) "Qualifying wages" means wages, as defined in section	1705
3121(a) of the Internal Revenue Code, without regard to any wage	1706
limitations, adjusted as follows:	1707

(a) Deduct the following amounts:

1708

(i) Any amount included in wages if the amount constitutes	1709
compensation attributable to a plan or program described in	1710
section 125 of the Internal Revenue Code;	1711

(ii) For purposes of division (B) of this section, any amount	1712
included in wages if the amount constitutes payment on account of	1713
sickness or accident disability.	1714

(b) Add the following amounts:

1715

(i) Any amount not included in wages solely because the	1716
employee was employed by the employer prior to April 1, 1986;	1717

(ii) Any amount not included in wages because the amount	1718
arises from the sale, exchange, or other disposition of a stock	1719
option, the exercise of a stock option, or the sale, exchange, or	1720
other disposition of stock purchased under a stock option and the	1721
municipal corporation has not, by resolution or ordinance,	1722
exempted the amount from withholding and tax. Division	1723
(A)(2)(b)(ii) of this section applies only to those amounts	1724
constituting ordinary income.	1725

(iii) Any amount not included in wages if the amount is an	1726
amount described in section 401(k) or 457 of the Internal Revenue	1727
Code. Division (A)(2)(b)(iii) of this section applies only to	1728
employee contributions and employee deferrals.	1729

(iv) Any amount that is supplemental unemployment	1730
compensation benefits described in section 3402(o)(2) of the	1731
Internal Revenue Code and not included in wages.	1732

(c) Deduct any amount attributable to a nonqualified deferred	1733
compensation plan or program described in section 3121(v)(2)(C) of	1734
the Internal Revenue Code if the compensation is included in wages	1735
and has, by resolution or ordinance, been exempted from taxation	1736
by the municipal corporation.	1737

(d) Deduct any amount included in wages if the amount arises	1738
from the sale, exchange, or other disposition of a stock option,	1739
the exercise of a stock option, or the sale, exchange, or other	1740
disposition of stock purchased under a stock option and the	1741
municipal corporation has, by resolution or ordinance, exempted	1742
the amount from withholding and tax.	1743

(B) Except as provided in division (F) of this section, for	1744
taxable years beginning after 2003, no municipal corporation shall	1745
require any employer or any agent of any employer or any other	1746
payer, to withhold tax with respect to any amount other than	1747
qualifying wages. Nothing in this section prohibits an employer	1748
from withholding tax on a basis greater than qualifying wages.	1749

(C)(1) Each employer, agent of an employer, or other payer	1750
located or doing business in a municipal corporation that imposes	1751
a tax on income in accordance with this chapter shall withhold	1752
from each employee an amount equal to the qualifying wages of the	1753
employee earned by the employee in the municipal corporation	1754
multiplied by the applicable rate of the municipal corporation's	1755
income tax, except for qualifying wages for which withholding is	1756
not required under section 718.011 of the Revised Code or division	1757
(D) or (F) of this section. An employer, agent of an employer, or	1758
other payer shall deduct and withhold the tax from qualifying	1759
wages on the date that the employer, agent, or other payer	1760
directly, indirectly, or constructively pays the qualifying wages	1761
to, or credits the qualifying wages to the benefit of, the	1762
employee.	1763

(2) In addition to withholding the amounts required under	1764
division (A)(1) of this section, an employer, agent of an	1765
employer, or other payer may also deduct and withhold, on the	1766
request of an employee, taxes for the municipal corporation in	1767
which the employee is a resident.	1768

(B)(1) Except as provided in division (B)(2) of this section,	1769
an employer, agent of an employer, or other payer shall remit to	1770
the tax administrator of a municipal corporation the greater of	1771
the income taxes deducted and withheld or the income taxes	1772
required to be deducted and withheld by the employer, agent, or	1773
other payer according to the following schedule:	1774

(a) Taxes required to be deducted and withheld shall be	1775
remitted monthly to the tax administrator if the total taxes	1776
deducted and withheld or required to be deducted and withheld by	1777
the employer, agent, or other payer on behalf of the municipal	1778
corporation in the preceding calendar year exceeded two thousand	1779
three hundred ninety-nine dollars, or if the total amount of taxes	1780
deducted and withheld or required to be deducted and withheld on	1781
behalf of the municipal corporation in any month of the preceding	1782
calendar quarter exceeded two hundred dollars.	1783

Payment under division (B)(1)(a) of this section shall be	1784
made so that the payment is received by the tax administrator not	1785
later than fifteen days after the last day of each month.	1786

(b) Any employer, agent of an employer, or other payer not	1787
required to make payments under division (B)(1)(a) of this section	1788
of taxes required to be deducted and withheld shall make quarterly	1789
payments to the tax administrator not later than the fifteenth day	1790
of the month following the end of each calendar quarter.	1791

(2) Notwithstanding division (B)(1) of this section, a	1792
municipal corporation may require, by resolution, ordinance, or	1793
rule, an employer, agent of an employer, or other payer to do any	1794
of the following:	1795

(a) Remit taxes deducted and withheld semimonthly to the tax	1796
administrator if the total taxes deducted and withheld or required	1797
to be deducted and withheld on behalf of the municipal corporation	1798
in the preceding calendar year exceeded eleven thousand nine	1799
hundred ninety-nine dollars, or if the total amount of taxes	1800
deducted and withheld or required to be deducted and withheld on	1801
behalf of the municipal corporation in any month of the preceding	1802
calendar year exceeded one thousand dollars. The payment under	1803
division (B)(2)(a) of this section shall be made so that the	1804
payment is received by the tax administrator not later than one of	1805
the following:	1806

(i) If the taxes were deducted and withheld or required to be	1807
deducted and withheld during the first fifteen days of a month,	1808
the third banking day after the fifteenth day of that month;	1809

(ii) If the taxes were deducted and withheld or required to	1810
be deducted and withheld after the fifteenth day of a month and	1811
before the first day of the immediately following month, the third	1812
banking day after the last day of that month.	1813

(b) Make payment by electronic funds transfer to the tax	1814
administrator of all taxes deducted and withheld on behalf of the	1815
municipal corporation if the employer, agent of an employer, or	1816
other payer is required to make payments electronically for the	1817
purpose of paying federal taxes withheld on payments to employees	1818
under section 6302 of the Internal Revenue Code, 26 C.F.R.	1819
31.6302-1, or any other federal statute or regulation. The payment	1820
of tax by electronic funds transfer under this division does not	1821
affect an employer's, agent's, or other payer's obligation to file	1822
any return as required under this section.	1823

(C) An employer, agent of an employer, or other payer shall	1824
make and file a return showing the amount of tax withheld by the	1825
employer, agent, or other payer from the qualifying wages of each	1826
employee and remitted to the tax administrator. Unless the tax	1827
administrator requires all individual taxpayers to file a tax	1828
return under section 718.05 of the Revised Code, a return filed by	1829
an employer, agent, or other payer under this division shall be	1830
accepted by a tax administrator and municipal corporation as the	1831
return required of an employee whose sole income subject to the	1832
tax under this chapter is the qualifying wages reported by the	1833
employee's employer, agent of an employer, or other payer.	1834

(D) An employer, agent of an employer, or other payer is not	1835
required to make any withholdingwithhold municipal income tax	1836
with respect to an individual's disqualifying disposition of an	1837
incentive stock option if, at the time of the disqualifying	1838
disposition, the individual is not an employee of either the	1839
corporation with respect to whose stock the option has been issued	1840
or of such corporation's successor entity.	1841

(D)(E)(1) An employee is not relieved from liability for a	1842
tax by the failure of the employer, agent of an employer, or other	1843
payer to withhold the tax as required by a municipal corporation	1844
under this chapter or by the employer's, agent's, or other payer's	1845
exemption from the requirement to withhold the tax.	1846

(2) The failure of an employer, agent of an employer, or	1847
other payer to remit to the municipal corporation the tax withheld	1848
relieves the employee from liability for that tax unless the	1849
employee colluded with the employer, agent, or other payer in	1850
connection with the failure to remit the tax withheld.	1851

(E)(F) Compensation deferred before June 26, 2003, is not	1852
subject to any municipal corporation income tax or municipal	1853
income tax withholding requirement to the extent the deferred	1854
compensation does not constitute qualifying wages at the time the	1855
deferred compensation is paid or distributed.	1856

(F) A municipal corporation may require a casino facility or	1857
a casino operator, as defined in Section 6(C)(9) of Article XV,	1858
Ohio Constitution, and section 3772.01 of the Revised Code,	1859
respectively, or a lottery sales agent conducting video lottery	1860
terminals on behalf of the state to withhold and remit tax with	1861
respect to amounts other than qualifying wages.	1862

(G) Each employer, agent of an employer, or other payer	1863
required to withhold taxes is liable for the payment of that	1864
amount required to be withheld, whether or not such taxes have	1865
been withheld, and such amount shall be deemed to be held in trust	1866
for the municipal corporation until such time as the withheld	1867
amount is remitted to the tax administrator.	1868

(H) On or before the last day of February of each year, an	1869
employer shall file a withholding reconciliation return with the	1870
tax administrator listing the names, addresses, and social	1871
security numbers of all employees from whose qualifying wages tax	1872
was withheld or should have been withheld for the municipal	1873
corporation during the preceding calendar year, the amount of tax	1874
withheld, if any, from each such employee, the total amount of	1875
qualifying wages paid to such employee during the preceding	1876
calendar year, the name of every other municipal corporation for	1877
which tax was withheld or should have been withheld from such	1878
employee during the preceding calendar year, any other information	1879
required for federal income tax reporting purposes on Internal	1880
Revenue Service form W-2 or its equivalent form with respect to	1881
such employee, and other information as may be required by the tax	1882
administrator.	1883

(I) The officer or the employee of the employer, agent of an	1884
employer, or other payer with control or direct supervision of or	1885
charged with the responsibility for withholding the tax or filing	1886
the reports and making payments as required by this section, shall	1887
be personally liable for a failure to file a report or pay the tax	1888
due as required by this section. The dissolution of an employer,	1889
agent of an employer, or other payer does not discharge the	1890
officer's or employee's liability for a failure of the employer,	1891
agent of an employer, or other payer to file returns or pay any	1892
tax due.	1893

(J) An employer is required to deduct and withhold municipal	1894
income tax on tips and gratuities received by the employer's	1895
employees and constituting qualifying wages only to the extent	1896
that the tips and gratuities are under the employer's control. For	1897
the purposes of this division, a tip or gratuity is under the	1898
employer's control if the tip or gratuity is paid by the customer	1899
to the employer for subsequent remittance to the employee, or if	1900
the customer pays the tip or gratuity by credit card, debit card,	1901
or other electronic means.	1902

(K) A tax administrator shall consider any tax withheld by an	1903
employer at the request of an employee when such tax is not	1904
otherwise required to be withheld by this chapter to be tax	1905
required to be withheld and remitted for the purposes of this	1906
section.	1907

Sec. 718.031. (A) A municipal corporation shall require a	1908
casino facility or a casino operator, as defined in Section	1909
6(C)(9) of Article XV, Ohio Constitution, and section 3772.01 of	1910
the Revised Code, respectively, or a lottery sales agent	1911
conducting video lottery terminals on behalf of the state to	1912
withhold and remit municipal income tax with respect to amounts	1913
other than qualifying wages as provided in this section.	1914

(B) If a person's winnings at a casino facility are an amount	1915
for which reporting to the internal revenue service of the amount	1916
is required by section 6041 of the Internal Revenue Code, as	1917
amended, the casino operator shall deduct and withhold municipal	1918
income tax from the person's winnings at the rate of the tax	1919
imposed by the municipal corporation in which the casino facility	1920
is located.	1921

(C) Amounts deducted and withheld by a casino operator are	1922
held in trust for the benefit of the municipal corporation to	1923
which the tax is owed.	1924

(1) On or before the tenth day of each month, the casino	1925
operator shall file a return electronically with the tax	1926
administrator of the municipal corporation, providing the name,	1927
address, and social security number of the person from whose	1928
winnings amounts were deducted and withheld, the amount of each	1929
such deduction and withholding during the preceding calendar	1930
month, the amount of the winnings from which each such amount was	1931
withheld, the type of casino gaming that resulted in such	1932
winnings, and any other information required by the tax	1933
administrator. With this return, the casino operator shall remit	1934
electronically to the municipal corporation all amounts deducted	1935
and withheld during the preceding month.	1936

(2) Annually, on or before the thirty-first day of January, a	1937
casino operator shall file an annual return electronically with	1938
the tax administrator of the municipal corporation in which the	1939
casino facility is located, indicating the total amount deducted	1940
and withheld during the preceding calendar year. The casino	1941
operator shall remit electronically with the annual return any	1942
amount that was deducted and withheld and that was not previously	1943
remitted. If the name, address, or social security number of a	1944
person or the amount deducted and withheld with respect to that	1945
person was omitted on a monthly return for that reporting period,	1946
that information shall be indicated on the annual return.	1947

(3) Annually, on or before the thirty-first day of January, a	1948
casino operator shall issue an information return to each person	1949
with respect to whom an amount has been deducted and withheld	1950
during the preceding calendar year. The information return shall	1951
show the total amount of municipal income tax deducted from the	1952
person's winnings during the preceding year. The casino operator	1953
shall provide to the tax administrator a copy of each information	1954
return issued under this division. The administrator may require	1955
that such copies be transmitted electronically.	1956

(4) A casino operator that fails to file a return and remit	1957
the amounts deducted and withheld shall be personally liable for	1958
the amount withheld and not remitted. Such personal liability	1959
extends to any penalty and interest imposed for the late filing of	1960
a return or the late payment of tax deducted and withheld.	1961

(5) If a casino operator sells the casino facility or	1962
otherwise quits the casino business, the amounts deducted and	1963
withheld along with any penalties and interest thereon are	1964
immediately due and payable. The successor shall withhold an	1965
amount of the purchase money that is sufficient to cover the	1966
amounts deducted and withheld along with any penalties and	1967
interest thereon until the predecessor casino operator produces	1968
either of the following:	1969

(a) A receipt from the tax administrator showing that the	1970
amounts deducted and withheld and penalties and interest thereon	1971
have been paid;	1972

(b) A certificate from the tax administrator indicating that	1973
no amounts are due.	1974

If the successor fails to withhold purchase money, the	1975
successor is personally liable for the payment of the amounts	1976
deducted and withheld and penalties and interest thereon.	1977

(6) The failure of a casino operator to deduct and withhold	1978
the required amount from a person's winnings does not relieve that	1979
person from liability for the municipal income tax with respect to	1980
those winnings.	1981

(D) If a person's prize award from a video lottery terminal	1982
is an amount for which reporting to the internal revenue service	1983
is required by section 6041 of the Internal Revenue Code, as	1984
amended, the video lottery sales agent shall deduct and withhold	1985
municipal income tax from the person's prize award at the rate of	1986
the tax imposed by the municipal corporation in which the video	1987
lottery terminal facility is located.	1988

(E) Amounts deducted and withheld by a video lottery sales	1989
agent are held in trust for the benefit of the municipal	1990
corporation to which the tax is owed.	1991

(1) The video lottery sales agent shall issue to a person	1992
from whose prize award an amount has been deducted and withheld a	1993
receipt for the amount deducted and withheld, and shall obtain	1994
from the person receiving a prize award the person's name,	1995
address, and social security number in order to facilitate the	1996
preparation of returns required by this section.	1997

(2) On or before the tenth day of each month, the video	1998
lottery sales agent shall file a return electronically with the	1999
tax administrator of the municipal corporation providing the	2000
names, addresses, and social security numbers of the persons from	2001
whose prize awards amounts were deducted and withheld, the amount	2002
of each such deduction and withholding during the preceding	2003
calendar month, the amount of the prize award from which each such	2004
amount was withheld, and any other information required by the tax	2005
administrator. With the return, the video lottery sales agent	2006
shall remit electronically to the tax administrator all amounts	2007
deducted and withheld during the preceding month.	2008

(3) A video lottery sales agent shall maintain a record of	2009
all receipts issued under division (E) of this section and shall	2010
make those records available to the tax administrator upon	2011
request. Such records shall be maintained in accordance with	2012
section 5747.17 of the Revised Code and any rules adopted pursuant	2013
thereto.	2014

(4) Annually, on or before the thirty-first day of January,	2015
each video lottery terminal sales agent shall file an annual	2016
return electronically with the tax administrator of the municipal	2017
corporation in which the facility is located indicating the total	2018
amount deducted and withheld during the preceding calendar year.	2019
The video lottery sales agent shall remit electronically with the	2020
annual return any amount that was deducted and withheld and that	2021
was not previously remitted. If the name, address, or social	2022
security number of a person or the amount deducted and withheld	2023
with respect to that person was omitted on a monthly return for	2024
that reporting period, that information shall be indicated on the	2025
annual return.	2026

(5) Annually, on or before the thirty-first day of January, a	2027
video lottery sales agent shall issue an information return to	2028
each person with respect to whom an amount has been deducted and	2029
withheld during the preceding calendar year. The information	2030
return shall show the total amount of municipal income tax	2031
deducted and withheld from the person's prize award by the video	2032
lottery sales agent during the preceding year. A video lottery	2033
sales agent shall provide to the tax administrator of the	2034
municipal corporation a copy of each information return issued	2035
under this division. The tax administrator may require that such	2036
copies be transmitted electronically.	2037

(6) A video lottery sales agent who fails to file a return	2038
and remit the amounts deducted and withheld is personally liable	2039
for the amount deducted and withheld and not remitted. Such	2040
personal liability extends to any penalty and interest imposed for	2041
the late filing of a return or the late payment of tax deducted	2042
and withheld.	2043

(F) If a video lottery sales agent ceases to operate video	2044
lottery terminals, the amounts deducted and withheld along with	2045
any penalties and interest thereon are immediately due and	2046
payable. The successor of the video lottery sales agent that	2047
purchases the video lottery terminals from the agent shall	2048
withhold an amount from the purchase money that is sufficient to	2049
cover the amounts deducted and withheld and any penalties and	2050
interest thereon until the predecessor video lottery sales agent	2051
operator produces either of the following:	2052

(1) A receipt from the tax administrator showing that the	2053
amounts deducted and withheld and penalties and interest thereon	2054
have been paid;	2055

(2) A certificate from the tax administrator indicating that	2056
no amounts are due.	2057

If the successor fails to withhold purchase money, the	2058
successor is personally liable for the payment of the amounts	2059
deducted and withheld and penalties and interest thereon.	2060

(G) The failure of a video lottery sales agent to deduct and	2061
withhold the required amount from a person's prize award does not	2062
relieve that person from liability for the municipal income tax	2063
with respect to that prize award.	2064

(H) If a casino operator or lottery sales agent files a	2065
return late, fails to file a return, remits amounts deducted and	2066
withheld late, or fails to remit amounts deducted and withheld as	2067
required under this section, the tax administrator of a municipal	2068
corporation may impose the following applicable penalty:	2069

(1) For the late remittance of, or failure to remit, tax	2070
deducted and withheld under this section, a penalty equal to fifty	2071
per cent of the tax deducted and withheld;	2072

(2) For the failure to file, or the late filing of, a monthly	2073
or annual return, a penalty of five hundred dollars for each	2074
return not filed or filed late. Interest shall accrue on past due	2075
amounts deducted and withheld at the rate prescribed in section	2076
5703.47 of the Revised Code.	2077

(I) Amounts deducted and withheld on behalf of a municipal	2078
corporation shall be allowed as a credit against payment of the	2079
tax imposed by the municipal corporation and shall be treated as	2080
taxes paid for purposes of section 718.08 of the Revised Code.	2081
This division applies only to the person for whom the amount is	2082
deducted and withheld.	2083

(J) The tax administrator shall prescribe the forms of the	2084
receipts and returns required under this section.	2085

Sec. 718.04. (A) Notwithstanding division (A) of section	2086
715.013 of the Revised Code, a municipal corporation may levy a	2087
tax on income and a withholding tax if such taxes are levied in	2088
accordance with the provisions and limitations specified in this	2089
chapter. On or after January 1, 2016, the ordinance or resolution	2090
levying such taxes, as adopted or amended by the legislative	2091
authority of the municipal corporation, shall include all of the	2092
following:	2093

(1) A statement that the tax is an annual tax levied on the	2094
income of every person residing in or earning or receiving income	2095
in the municipal corporation and that the tax shall be measured by	2096
municipal taxable income;	2097

(2) A statement that the municipal corporation is levying the	2098
tax in accordance with the limitations specified in this chapter	2099
and that the resolution or ordinance thereby incorporates the	2100
provisions of this chapter;	2101

(3) The rate of the tax;

2102

(4) Whether, and the extent to which, a credit, as described	2103
in division (D) of this section, will be allowed against the tax;	2104

(5) The purpose or purposes of the tax;

2105

(6) Any other provision necessary for the administration of	2106
the tax, provided that the provision does not conflict with any	2107
provision of this chapter.	2108

(B) Any municipal corporation that, on or before the	2109
effective date of the enactment of this section, levies an income	2110
tax at a rate in excess of one per cent may continue to levy the	2111
tax at the rate specified in the original ordinance or resolution,	2112
provided that such rate continues in effect as specified in the	2113
original ordinance or resolution.	2114

(C)(1) No municipal corporation shall tax income at other	2115
than a uniform rate.	2116

(2) Except as provided in division (B) of this section, no	2117
municipal corporation shall levy a tax on income at a rate in	2118
excess of one per cent without having obtained the approval of the	2119
excess by a majority of the electors of the municipality voting on	2120
the question at a general, primary, or special election. The	2121
legislative authority of the municipal corporation shall file with	2122
the board of elections at least ninety days before the day of the	2123
election a copy of the ordinance together with a resolution	2124
specifying the date the election is to be held and directing the	2125
board of elections to conduct the election. The ballot shall be in	2126
the following form: "Shall the Ordinance providing for a ... per	2127
cent levy on income for (Brief description of the purpose of the	2128
proposed levy) be passed?	2129

2130

		FOR THE INCOME TAX			2131
		AGAINST THE INCOME TAX	"		2132

2133

In the event of an affirmative vote, the proceeds of the levy may	2134
be used only for the specified purpose.	2135

(D) A municipal corporation may, by ordinance or resolution,	2136
grant a credit to residents of the municipal corporation for all	2137
or a portion of the taxes paid to any municipal corporation, in	2138
this state or elsewhere, by the resident or by a pass-through	2139
entity owned, directly or indirectly, by a resident, on the	2140
resident's distributive or proportionate share of the income of	2141
the pass-through entity. A municipal corporation is not required	2142
to refund taxes not paid to the municipal corporation.	2143

(E) Except as otherwise provided in this chapter, a municipal	2144
corporation that levies an income tax in effect for taxable years	2145
beginning before January 1, 2016, may continue to administer and	2146
enforce the provisions of such tax for all taxable years beginning	2147
before January 1, 2016, provided that the provisions of such tax	2148
are consistent with this chapter as it existed prior to the	2149
effective date of the enactment of this section.	2150

(F) Nothing in this chapter authorizes a municipal	2151
corporation to levy a tax on income, or to administer or collect	2152
such a tax or penalties or interest related to such a tax,	2153
contrary to the provisions and limitations specified in this	2154
chapter. No municipal corporation shall enforce an ordinance or	2155
resolution that conflicts with the provisions of this chapter.	2156

Sec. 718.05. (A) An annual return with respect to the income	2157
tax levied by a municipal corporation shall be completed and filed	2158
by every taxpayer for any taxable year for which the taxpayer is	2159
liable for the tax. If the total credit allowed against the tax as	2160
described in division (D) of section 718.04 of the Revised Code	2161
for the year is equal to or exceeds the tax imposed by the	2162
municipal corporation, no return shall be required unless the	2163
municipal ordinance or resolution levying the tax requires the	2164
filing of a return in such circumstances.	2165

(B) If an individual is deceased, any return or notice	2166
required of that individual shall be completed and filed by that	2167
decedent's executor, administrator, or other person charged with	2168
the property of that decedent.	2169

(C) If an individual is unable to complete and file a return	2170
or notice required by a municipal corporation in accordance with	2171
this chapter, the return or notice required of that individual	2172
shall be completed and filed by the individual's duly authorized	2173
agent, guardian, conservator, fiduciary, or other person charged	2174
with the care of the person or property of that individual.	2175

(D) Returns or notices required of an estate or a trust shall	2176
be completed and filed by the fiduciary of the estate or trust.	2177

(E) No municipal corporation shall deny spouses the ability	2178
to file a joint return.	2179

(F)(1) Each return required to be filed under this section	2180
shall contain the signature of the taxpayer or the taxpayer's duly	2181
authorized agent and of the person who prepared the return for the	2182
taxpayer, and shall include the taxpayer's social security number	2183
or taxpayer identification number. Each return shall be verified	2184
by a declaration under penalty of perjury.	2185

(2) A tax administrator may require a taxpayer who is an	2186
individual to include, with each annual return, amended return, or	2187
request for refund required under this section, copies of only the	2188
following documents: all of the taxpayer's Internal Revenue	2189
Service form W-2, "Wage and Tax Statements," including all	2190
information reported on the taxpayer's federal W-2, as well as	2191
taxable wages reported or withheld for any municipal corporation;	2192
the taxpayer's Internal Revenue Service form 1040; and, with	2193
respect to an amended tax return or refund request, any other	2194
documentation necessary to support the refund request or the	2195
adjustments made in the amended return. An individual taxpayer who	2196
files the annual return required by this section electronically is	2197
not required to provide paper copies of any of the foregoing to	2198
the tax administrator unless the tax administrator requests such	2199
copies after the return has been filed.	2200

(3) A tax administrator may require a taxpayer that is not an	2201
individual to include, with each annual net profit return, amended	2202
net profit return, or request for refund required under this	2203
section, copies of only the following documents: the taxpayer's	2204
Internal Revenue Service form 1041, form 1065, form 1120, form	2205
1120-REIT, form 1120F, or form 1120S, and, with respect to an	2206
amended tax return or refund request, any other documentation	2207
necessary to support the refund request or the adjustments made in	2208
the amended return.	2209

A taxpayer that is not an individual and that files an annual	2210
net profit return electronically through the Ohio business gateway	2211
or in some other manner shall either mail the documents required	2212
under this division to the tax administrator at the time of filing	2213
or, if electronic submission is available, submit the documents	2214
electronically through the Ohio business gateway. The department	2215
of taxation shall publish a method of electronically submitting	2216
the documents required under this division through the Ohio	2217
business gateway on or before January 1, 2016. The department	2218
shall transmit all documents submitted electronically under this	2219
division to the appropriate tax administrator.	2220

(4) After a taxpayer files a tax return, the tax	2221
administrator may request, and the taxpayer shall provide, any	2222
information, statements, or documents required by the municipal	2223
corporation to determine and verify the taxpayer's municipal	2224
income tax liability. The requirements imposed under division (F)	2225
of this section apply regardless of whether the taxpayer files on	2226
a generic form or on a form prescribed by the tax administrator.	2227

(G)(1) Except as otherwise provided in this chapter, each	2228
return required to be filed under this section shall be completed	2229
and filed as required by the tax administrator on or before the	2230
date prescribed for the filing of state individual income tax	2231
returns under division (G) of section 5747.08 of the Revised Code.	2232
The taxpayer shall complete and file the return or notice on forms	2233
prescribed by the tax administrator or on generic forms, together	2234
with remittance made payable to the municipal corporation or tax	2235
administrator. No remittance is required if the amount shown to be	2236
due is ten dollars or less.	2237

(2) Any taxpayer that has duly requested an automatic	2238
six-month extension for filing the taxpayer's federal income tax	2239
return shall automatically receive an extension for the filing of	2240
a municipal income tax return. The extended due date of the	2241
municipal income tax return shall be the fifteenth day of the	2242
tenth month after the last day of the taxable year to which the	2243
return relates. An extension of time to file under this division	2244
is not an extension of the time to pay any tax due unless the tax	2245
administrator grants an extension of that date.	2246

(3) If the tax commissioner extends for all taxpayers the	2247
date for filing state income tax returns under division (G) of	2248
section 5747.08 of the Revised Code, a taxpayer shall	2249
automatically receive an extension for the filing of a municipal	2250
income tax return. The extended due date of the municipal income	2251
tax return shall be the same as the extended due date of the state	2252
income tax return.	2253

(4) If the tax administrator considers it necessary in order	2254
to ensure the payment of the tax imposed by the municipal	2255
corporation in accordance with this chapter, the tax administrator	2256
may require taxpayers to file returns and make payments otherwise	2257
than as provided in this section, including taxpayers not	2258
otherwise required to file annual returns.	2259

(5) To the extent that any provision in this division	2260
conflicts with any provision in section 718.052 of the Revised	2261
Code, the provision in that section prevails.	2262

(H)(1) For taxable years beginning after 2015, a municipal	2263
corporation shall not require a taxpayer to remit tax with respect	2264
to net profits if the amount due is less than ten dollars.	2265

(2) Any taxpayer not required to remit tax to a municipal	2266
corporation for a taxable year pursuant to division (H)(1) of this	2267
section shall file with the municipal corporation an annual net	2268
profit return under division (F)(3) of this section.	2269

(I) This division shall not apply to payments required to be	2270
made under division (B)(1)(a) or (2)(a) of section 718.03 of the	2271
Revised Code.	2272

(1) If any report, claim, statement, or other document	2273
required to be filed, or any payment required to be made, within a	2274
prescribed period or on or before a prescribed date under this	2275
chapter is delivered after that period or that date by United	2276
States mail to the tax administrator or other municipal official	2277
with which the report, claim, statement, or other document is	2278
required to be filed, or to which the payment is required to be	2279
made, the date of the postmark stamped on the cover in which the	2280
report, claim, statement, or other document, or payment is mailed	2281
shall be deemed to be the date of delivery or the date of payment.	2282
"The date of postmark" means, in the event there is more than one	2283
date on the cover, the earliest date imprinted on the cover by the	2284
postal service.	2285

(2) If a payment is required to be made by electronic funds	2286
transfer, the payment is considered to be made when the payment is	2287
credited to an account designated by the tax administrator for the	2288
receipt of tax payments, except that, when a payment made by	2289
electronic funds transfer is delayed due to circumstances not	2290
under the control of the taxpayer, the payment is considered to be	2291
made when the taxpayer submitted the payment.	2292

(J) The amounts withheld by an employer, the agent of an	2293
employer, or an other payer as described in section 718.03 of the	2294
Revised Code shall be allowed to the recipient of the compensation	2295
as credits against payment of the tax imposed on the recipient by	2296
the municipal corporation, unless the amounts withheld were not	2297
remitted to the municipal corporation and the recipient colluded	2298
with the employer, agent, or other payer in connection with the	2299
failure to remit the amounts withheld.	2300

(K) Each return required by a municipal corporation to be	2301
filed in accordance with this section shall include a box that the	2302
taxpayer may check to authorize another person, including a tax	2303
return preparer who prepared the return, to communicate with the	2304
tax administrator about matters pertaining to the return. The	2305
return or instructions accompanying the return shall indicate that	2306
by checking the box the taxpayer authorizes the tax administrator	2307
to contact the preparer or other person concerning questions that	2308
arise during the examination or other review of the return and	2309
authorizes the preparer or other person only to provide the tax	2310
administrator with information that is missing from the return, to	2311
contact the tax administrator for information about the	2312
examination or other review of the return or the status of the	2313
taxpayer's refund or payments, and to respond to notices about	2314
mathematical errors, offsets, or return preparation that the	2315
taxpayer has received from the tax administrator and has shown to	2316
the preparer or other person.	2317

(L) The tax administrator of a municipal corporation shall	2318
accept for filing a generic form of any income tax return, report,	2319
or document required by the municipal corporation in accordance	2320
with this chapter, provided that the generic form, once completed	2321
and filed, contains all of the information required by ordinance,	2322
resolution, or rules adopted by the municipal corporation or tax	2323
administrator, and provided that the taxpayer or tax return	2324
preparer filing the generic form otherwise complies with the	2325
provisions of this chapter and of the municipal corporation	2326
ordinance or resolution governing the filing of returns, reports,	2327
or documents.	2328

(M) When income tax returns, reports, or other documents	2329
require the signature of a tax return preparer, the tax	2330
administrator shall accept a facsimile of such a signature in lieu	2331
of a manual signature.	2332

Sec. 718.051. (A) As used in this section, "Ohio business	2333
gateway" means the online computer network system, initially	2334
created by the department of administrative services under section	2335
125.30 of the Revised Code, that allows private businesses to	2336
electronically file business reply forms with state agencies and	2337
includes any successor electronic filing and payment system.	2338

(B) Notwithstanding section 718.05 of the Revised Code, on	2339
and after January 1, 2005, any taxpayer that is subject to any	2340
municipal corporation's tax on the net profit from a business or	2341
profession and has received an extension to file the federal	2342
income tax return shall not be required to notify the municipal	2343
corporation of the federal extension and shall not be required to	2344
file any municipal income tax return until the last day of the	2345
month to which the due date for filing the federal return has been	2346
extended, provided that, on or before the date for filing the	2347
municipal income tax return, the person notifies the tax	2348
commissioner of the federal extension through the Ohio business	2349
gateway. An extension of time to file is not an extension of the	2350
time to pay any tax due.	2351

(C) For taxable years beginning on or after January 1, 2005,	2352
aAny taxpayer subject to any municipal corporation's tax on	2353
income taxation with respect to the taxpayer's net profit from a	2354
business or profession may file any municipal income tax return	2355
or, estimated municipal income tax return, or extension for filing	2356
a municipal income tax return, and may make payment of amounts	2357
shown to be due on such returns, by using the Ohio business	2358
gateway.	2359

(D)(1) As used in this division, "qualifying wages" has the	2360
same meaning as in section 718.03 of the Revised Code.	2361

(2)(B) Any employer, agent of an employer, or other payer may	2362
report the amount of municipal income tax withheld from qualifying	2363
wages paid on or after January 1, 2007, and may make remittance of	2364
such amounts, by using the Ohio business gateway.	2365

(E)(C) Nothing in this section affects the due dates for	2366
filing employer withholding tax returns.	2367

(F)(D) No municipal corporation shall be required to pay any	2368
fee or charge for the operation or maintenance of the Ohio	2369
business gateway.	2370

(G)(E) The use of the Ohio business gateway by municipal	2371
corporations, taxpayers, or other persons pursuant to this section	2372
does not affect the legal rights of municipalities or taxpayers as	2373
otherwise permitted by law. This state shall not be a party to the	2374
administration of municipal income taxes or to an appeal of a	2375
municipal income tax matter, except as otherwise specifically	2376
provided by law.	2377

(H)(F)(1) The tax commissioner shall adopt rules	2378
establishing:	2379

(a) The format of documents to be used by taxpayers to file	2380
returns and make payments through the Ohio business gateway; and	2381

(b) The information taxpayers must submit when filing	2382
municipal income tax returns through the Ohio business gateway.	2383

The commissioner shall not adopt rules under this division	2384
that conflict with the requirements of section 718.05 of the	2385
Revised Code.	2386

(2) The commissioner shall consult with the Ohio business	2387
gateway steering committee before adopting the rules described in	2388
division (H)(F)(1) of this section.	2389

(I)(G) Nothing in this section shall be construed as limiting	2390
or removing the abilityauthority of any municipal corporation to	2391
administer, audit, and enforce the provisions of its municipal	2392
income tax.	2393

Sec. 718.052.  (A) Each member of the national guard of any	2394
state and each member of a reserve component of the armed forces	2395
of the United States called to active duty pursuant to an	2396
executive order issued by the president of the United States or an	2397
act of the congress of the United States, and each civilian	2398
serving as support personnel in a combat zone or contingency	2399
operation in support of the armed forces, may apply to the tax	2400
administrator of a municipal corporation for both an extension of	2401
time for filing of the return and an extension of time for payment	2402
of taxes required by the municipal corporation in accordance with	2403
this chapter during the period of the member's or civilian's duty	2404
service and for one hundred eighty days thereafter. The	2405
application shall be filed on or before the one hundred eightieth	2406
day after the member's or civilian's duty terminates. An applicant	2407
shall provide such evidence as the tax administrator considers	2408
necessary to demonstrate eligibility for the extension.	2409

(B)(1) If the tax administrator ascertains that an applicant	2410
is qualified for an extension under this section, the tax	2411
administrator shall enter into a contract with the applicant for	2412
the payment of the tax in installments that begin on the one	2413
hundred eighty-first day after the applicant's active duty or	2414
service terminates. Except as provided in division (B)(3) of this	2415
section, the tax administrator may prescribe such contract terms	2416
as the tax administrator considers appropriate.	2417

(2) If the tax administrator ascertains that an applicant is	2418
qualified for an extension under this section, the applicant shall	2419
neither be required to file any return, report, or other tax	2420
document nor be required to pay any tax otherwise due to the	2421
municipal corporation before the one hundred eighty-first day	2422
after the applicant's active duty or service terminates.	2423

(3) Taxes paid pursuant to a contract entered into under	2424
division (B)(1) of this section are not delinquent. The tax	2425
administrator shall not require any payments of penalties or	2426
interest in connection with those taxes for the extension period.	2427

(C)(1) Nothing in this division denies to any person	2428
described in this division the application of divisions (A) and	2429
(B) of this section.	2430

(2)(a) A qualifying taxpayer who is eligible for an extension	2431
under the Internal Revenue Code shall receive both an extension of	2432
time in which to file any return, report, or other tax document	2433
and an extension of time in which to make any payment of taxes	2434
required by a municipal corporation in accordance with this	2435
chapter. The length of any extension granted under division	2436
(C)(2)(a) of this section shall be equal to the length of the	2437
corresponding extension that the taxpayer receives under the	2438
Internal Revenue Code. As used in this section, "qualifying	2439
taxpayer" means a member of the national guard or a member of a	2440
reserve component of the armed forces of the United States called	2441
to active duty pursuant to either an executive order issued by the	2442
president of the United States or an act of the congress of the	2443
United States, or a civilian serving as support personnel in a	2444
combat zone or contingency operation in support of the armed	2445
forces.	2446

(b) Taxes whose payment is extended in accordance with	2447
division (C)(2)(a) of this section are not delinquent during the	2448
extension period. Such taxes become delinquent on the first day	2449
after the expiration of the extension period if the taxes are not	2450
paid prior to that date. The tax administrator shall not require	2451
any payment of penalties or interest in connection with those	2452
taxes for the extension period. The tax administrator shall not	2453
include any period of extension granted under division (C)(2)(a)	2454
of this section in calculating the penalty or interest due on any	2455
unpaid tax.	2456

(D) For each taxable year to which division (A), (B), or (C)	2457
of this section applies to a taxpayer, the provisions of divisions	2458
(B)(2) and (3) or (C) of this section, as applicable, apply to the	2459
spouse of that taxpayer if the filing status of the spouse and the	2460
taxpayer is married filing jointly for that year.	2461

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

2462

(1) "Affiliated group of corporations" means an affiliated	2463
group as defined in section 1504 of the Internal Revenue Code,	2464
except that, if such a group includes at least one incumbent local	2465
exchange carrier that is primarily engaged in the business of	2466
providing local exchange telephone service in this state, the	2467
affiliated group shall not include any incumbent local exchange	2468
carrier that would otherwise be included in the group.	2469

(2) "Consolidated federal income tax return" means a	2470
consolidated return filed for federal income tax purposes pursuant	2471
to section 1501 of the Internal Revenue Code.	2472

(3) "Consolidated federal taxable income" means the	2473
consolidated taxable income of an affiliated group of	2474
corporations, as computed for the purposes of filing a	2475
consolidated federal income tax return, before consideration of	2476
net operating losses or special deductions. "Consolidated federal	2477
taxable income" does not include income or loss of an incumbent	2478
local exchange carrier that is excluded from the affiliated group	2479
under division (A)(1) of this section.	2480

(4) "Incumbent local exchange carrier" has the same meaning	2481
as in section 4927.01 of the Revised Code.	2482

(5) "Local exchange telephone service" has the same meaning	2483
as in section 5727.01 of the Revised Code.	2484

(B)(1) For taxable years beginning on or after January 1,	2485
2016, a taxpayer that is a member of an affiliated group of	2486
corporations may elect to file a consolidated municipal income tax	2487
return for a taxable year if at least one member of the affiliated	2488
group of corporations is subject to the municipal income tax in	2489
that taxable year and if the affiliated group of corporations	2490
filed a consolidated federal income tax return with respect to	2491
that taxable year. The election is binding for a five-year period	2492
beginning with the first taxable year of the initial election	2493
unless a change in the reporting method is required under federal	2494
law. The election continues to be binding for each subsequent	2495
five-year period unless the taxpayer elects to discontinue filing	2496
consolidated municipal income tax returns under division (B)(2) of	2497
this section or a taxpayer receives permission from the tax	2498
administrator. The tax administrator shall approve such a request	2499
for good cause shown.	2500

(2) An election to discontinue filing consolidated municipal	2501
income tax returns under this section must be made in the first	2502
year following the last year of a five-year consolidated municipal	2503
income tax return election period in effect under division (B)(1)	2504
of this section. The election to discontinue filing a consolidated	2505
municipal income tax return is binding for a five-year period	2506
beginning with the first taxable year of the election.	2507

(3) An election made under division (B)(1) or (2) of this	2508
section is binding on all members of the affiliated group of	2509
corporations subject to a municipal income tax.	2510

(C) A taxpayer that is a member of an affiliated group of	2511
corporations that filed a consolidated federal income tax return	2512
for a taxable year shall file a consolidated municipal income tax	2513
return for that taxable year if the tax administrator determines,	2514
by a preponderance of the evidence, that intercompany transactions	2515
have not been conducted at arm's length and that there has been a	2516
distortive shifting of income or expenses with regard to	2517
allocation of net profits to the municipal corporation. A taxpayer	2518
that is required to file a consolidated municipal income tax	2519
return for a taxable year shall file a consolidated municipal	2520
income tax return for all subsequent taxable years unless the	2521
taxpayer requests and receives written permission from the tax	2522
administrator to file a separate return or a taxpayer has	2523
experienced a change in circumstances.	2524

(D) A taxpayer shall prepare a consolidated municipal income	2525
tax return in the same manner as is required under the United	2526
States department of treasury regulations that prescribe	2527
procedures for the preparation of the consolidated federal income	2528
tax return required to be filed by the common parent of the	2529
affiliated group of which the taxpayer is a member.	2530

(E)(1) Except as otherwise provided in divisions (E)(2), (3),	2531
and (4) of this section, corporations that file a consolidated	2532
municipal income tax return shall compute adjusted federal taxable	2533
income, as defined in section 718.01 of the Revised Code, by	2534
substituting "consolidated federal taxable income" for "federal	2535
taxable income" wherever "federal taxable income" appears in that	2536
division and by substituting "an affiliated group of	2537
corporation's" for "a C corporation's" wherever "a C	2538
corporation's" appears in that division.	2539

(2) No corporation filing a consolidated municipal income tax	2540
return shall make any adjustment otherwise required under division	2541
(E) of section 718.01 of the Revised Code to the extent that the	2542
item of income or deduction otherwise subject to the adjustment	2543
has been eliminated or consolidated in the computation of	2544
consolidated federal taxable income.	2545

(3) If the net profit or loss of a pass-through entity having	2546
at least eighty per cent of the value of its ownership interest	2547
owned or controlled, directly or indirectly, by an affiliated	2548
group of corporations is included in that affiliated group's	2549
consolidated federal taxable income for a taxable year, the	2550
corporation filing a consolidated municipal income tax return	2551
shall do one of the following with respect to that pass-through	2552
entity's net profit or loss for that taxable year:	2553

(a) Exclude the pass-through entity's net profit or loss from	2554
the consolidated federal taxable income of the affiliated group	2555
and, for the purpose of making the computations required in	2556
section 718.02 of the Revised Code, exclude the property, payroll,	2557
and gross receipts of the pass-through entity in the computation	2558
of the affiliated group's net profit sitused to a municipal	2559
corporation. If the entity's net profit or loss is so excluded,	2560
the entity shall be subject to taxation as a separate taxpayer on	2561
the basis of the entity's net profits that would otherwise be	2562
included in the consolidated federal taxable income of the	2563
affiliated group.	2564

(b) Include the pass-through entity's net profit or loss in	2565
the consolidated federal taxable income of the affiliated group	2566
and, for the purpose of making the computations required in	2567
section 718.02 of the Revised Code, include the property, payroll,	2568
and gross receipts of the pass-through entity in the computation	2569
of the affiliated group's net profit sitused to a municipal	2570
corporation. If the entity's net profit or loss is so included,	2571
the entity shall not be subject to taxation as a separate taxpayer	2572
on the basis of the entity's net profits that are included in the	2573
consolidated federal taxable income of the affiliated group.	2574

(4) If the net profit or loss of a pass-through entity having	2575
less than eighty per cent of the value of its ownership interest	2576
owned or controlled, directly or indirectly, by an affiliated	2577
group of corporations is included in that affiliated group's	2578
consolidated federal taxable income for a taxable year, all of the	2579
following shall apply:	2580

(a) The corporation filing the consolidated municipal income	2581
tax return shall exclude the pass-through entity's net profit or	2582
loss from the consolidated federal taxable income of the	2583
affiliated group and, for the purposes of making the computations	2584
required in section 718.02 of the Revised Code, exclude the	2585
property, payroll, and gross receipts of the pass-through entity	2586
in the computation of the affiliated group's net profit sitused to	2587
a municipal corporation;	2588

(b) The pass-through entity shall be subject to municipal	2589
income taxation as a separate taxpayer in accordance with this	2590
chapter on the basis of the entity's net profits that would	2591
otherwise be included in the consolidated federal taxable income	2592
of the affiliated group.	2593

(F) Corporations filing a consolidated municipal income tax	2594
return shall make the computations required under section 718.02	2595
of the Revised Code by substituting "consolidated federal taxable	2596
income attributable to" for "net profit from" wherever "net profit	2597
from" appears in that section and by substituting "affiliated	2598
group of corporations" for "taxpayer" wherever "taxpayer" appears	2599
in that section.	2600

(G) Each corporation filing a consolidated municipal income	2601
tax return is jointly and severally liable for any tax, interest,	2602
penalties, fines, charges, or other amounts imposed by a municipal	2603
corporation in accordance with this chapter on the corporation, an	2604
affiliated group of which the corporation is a member for any	2605
portion of the taxable year, or any one or more members of such an	2606
affiliated group.	2607

(H) Corporations and their affiliates that made an election	2608
or entered into an agreement with a municipal corporation before	2609
January 1, 2016, to file a consolidated or combined tax return	2610
with such municipal corporation may continue to file consolidated	2611
or combined tax returns in accordance with such election or	2612
agreement for taxable years beginning on and after January 1,	2613
2016.	2614

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

2615

(1) "Estimated taxes" means the amount that the taxpayer	2616
reasonably estimates to be the taxpayer's tax liability for a	2617
municipal corporation's income tax for the current taxable year.	2618

(2) "Tax liability" means the total taxes due to a municipal	2619
corporation for the taxable year, after allowing any credit to	2620
which the taxpayer is entitled, and after applying any estimated	2621
tax payment, withholding payment, or credit from another taxable	2622
year.	2623

(B)(1) Except as provided in division (F) of this section,	2624
every taxpayer shall make a declaration of estimated taxes for the	2625
current taxable year, on the form prescribed by the tax	2626
administrator, if the amount payable as estimated taxes is at	2627
least two hundred dollars. For the purposes of this section:	2628

(a) Taxes withheld from qualifying wages shall be considered	2629
as paid to the municipal corporation for which the taxes were	2630
withheld in equal amounts on each payment date unless the taxpayer	2631
establishes the dates on which all amounts were actually withheld,	2632
in which case the amounts withheld shall be considered as paid on	2633
the dates on which the amounts were actually withheld.	2634

(b) An overpayment of tax applied as a credit to a subsequent	2635
taxable year is deemed to be paid on the date of the postmark	2636
stamped on the cover in which the payment is mailed or, if the	2637
payment is made by electronic funds transfer, the date the payment	2638
is submitted. As used in this division, "date of the postmark"	2639
means, in the event there is more than one date on the cover, the	2640
earliest date imprinted on the cover by the postal service.	2641

(c) Taxes withheld by a casino operator or by a lottery sales	2642
agent under section 718.031 of the Revised Code are deemed to be	2643
paid to the municipal corporation for which the taxes were	2644
withheld on the date the taxes are withheld from the taxpayer's	2645
winnings.	2646

(2) Except as provided in division (F) of this section,	2647
taxpayers filing joint returns shall file joint declarations of	2648
estimated taxes. A taxpayer may amend a declaration under rules	2649
prescribed by the tax administrator. Except as provided in	2650
division (F) of this section, a taxpayer having a taxable year of	2651
less than twelve months shall make a declaration under rules	2652
prescribed by the tax administrator.	2653

(3) The declaration of estimated taxes shall be filed on or	2654
before the date prescribed for the filing of municipal income tax	2655
returns under division (G) of section 718.05 of the Revised Code	2656
or on or before the fifteenth day of the fourth month after the	2657
taxpayer becomes subject to tax for the first time.	2658

(4) Taxpayers reporting on a fiscal year basis shall file a	2659
declaration on or before the fifteenth day of the fourth month	2660
after the beginning of each fiscal year or period.	2661

(5) The original declaration or any subsequent amendment may	2662
be increased or decreased on or before any subsequent quarterly	2663
payment day as provided in this section.	2664

(C)(1) The required portion of the tax liability for the	2665
taxable year that shall be paid through estimated taxes made	2666
payable to the municipal corporation or tax administrator,	2667
including the application of tax refunds to estimated taxes and	2668
withholding on or before the applicable payment date, shall be as	2669
follows:	2670

(a) On or before the fifteenth day of the fourth month after	2671
the beginning of the taxable year, twenty-two and one-half per	2672
cent of the tax liability for the taxable year;	2673

(b) On or before the fifteenth day of the sixth month after	2674
the beginning of the taxable year, forty-five per cent of the tax	2675
liability for the taxable year;	2676

(c) On or before the fifteenth day of the ninth month after	2677
the beginning of the taxable year, sixty-seven and one-half per	2678
cent of the tax liability for the taxable year;	2679

(d) On or before the fifteenth day of the twelfth month of	2680
the taxable year, ninety per cent of the tax liability for the	2681
taxable year.	2682

(2) When an amended declaration has been filed, the unpaid	2683
balance shown due on the amended declaration shall be paid in	2684
equal installments on or before the remaining payment dates.	2685

(3) On or before the fifteenth day of the fourth month of the	2686
year following that for which the declaration or amended	2687
declaration was filed, an annual return shall be filed and any	2688
balance which may be due shall be paid with the return in	2689
accordance with section 718.05 of the Revised Code.	2690

(D)(1) In the case of any underpayment of any portion of a	2691
tax liability, penalty and interest may be imposed pursuant to	2692
section 718.27 of the Revised Code upon the amount of underpayment	2693
for the period of underpayment, unless the underpayment is due to	2694
reasonable cause as described in division (E) of this section. The	2695
amount of the underpayment shall be determined as follows:	2696

(a) For the first payment of estimated taxes each year,	2697
twenty-two and one-half per cent of the tax liability, less the	2698
amount of taxes paid by the date prescribed for that payment;	2699

(b) For the second payment of estimated taxes each year,	2700
forty-five per cent of the tax liability, less the amount of taxes	2701
paid by the date prescribed for that payment;	2702

(c) For the third payment of estimated taxes each year,	2703
sixty-seven and one-half per cent of the tax liability, less the	2704
amount of taxes paid by the date prescribed for that payment;	2705

(d) For the fourth payment of estimated taxes each year,	2706
ninety per cent of the tax liability, less the amount of taxes	2707
paid by the date prescribed for that payment.	2708

(2) The period of the underpayment shall run from the day the	2709
estimated payment was required to be made to the date on which the	2710
payment is made. For purposes of this section, a payment of	2711
estimated taxes on or before any payment date shall be considered	2712
a payment of any previous underpayment only to the extent the	2713
payment of estimated taxes exceeds the amount of the payment	2714
presently required to be paid to avoid any penalty.	2715

(E) An underpayment of any portion of tax liability	2716
determined under division (D) of this section shall be due to	2717
reasonable cause and the penalty imposed by this section shall not	2718
be added to the taxes for the taxable year if any of the following	2719
apply:	2720

(1) The amount of estimated taxes that were paid equals at	2721
least ninety per cent of the tax liability for the current taxable	2722
year, determined by annualizing the income received during the	2723
year up to the end of the month immediately preceding the month in	2724
which the payment is due.	2725

(2) The amount of estimated taxes that were paid equals at	2726
least one hundred per cent of the tax liability shown on the	2727
return of the taxpayer for the preceding taxable year, provided	2728
that the immediately preceding taxable year reflected a period of	2729
twelve months and the taxpayer filed a return with the municipal	2730
corporation under section 718.05 of the Revised Code for that	2731
year.	2732

(3) The taxpayer is an individual who resides in the	2733
municipal corporation but was not domiciled there on the first day	2734
of January of the calendar year that includes the first day of the	2735
taxable year.	2736

(F)(1) A tax administrator may waive the requirement for	2737
filing a declaration of estimated taxes for any class of taxpayers	2738
after finding that the waiver is reasonable and proper in view of	2739
administrative costs and other factors.	2740

(2) A municipal corporation may, by ordinance or rule, waive	2741
the requirement for filing a declaration of estimated taxes for	2742
all taxpayers.	2743

Sec. 718.09.  (A) This section applies to either of the	2744
following:	2745

(1) A municipal corporation that shares the same territory as	2746
a city, local, or exempted village school district, to the extent	2747
that not more than five per cent of the territory of the municipal	2748
corporation is located outside the school district and not more	2749
than five per cent of the territory of the school district is	2750
located outside the municipal corporation;	2751

(2) A municipal corporation that shares the same territory as	2752
a city, local, or exempted village school district, to the extent	2753
that not more than five per cent of the territory of the municipal	2754
corporation is located outside the school district, more than five	2755
per cent but not more than ten per cent of the territory of the	2756
school district is located outside the municipal corporation, and	2757
that portion of the territory of the school district that is	2758
located outside the municipal corporation is located entirely	2759
within another municipal corporation having a population of four	2760
hundred thousand or more according to the federal decennial census	2761
most recently completed before the agreement is entered into under	2762
division (B) of this section.	2763

(B) The legislative authority of a municipal corporation to	2764
which this section applies may propose to the electors an income	2765
tax, one of the purposes of which shall be to provide financial	2766
assistance to the school district through payment to the district	2767
of not less than twenty-five per cent of the revenue generated by	2768
the tax, except that the legislative authority may not propose to	2769
levy the income tax on the incomes of nonresident individuals.	2770
Prior to proposing the tax, the legislative authority shall	2771
negotiate and enter into a written agreement with the board of	2772
education of the school district specifying the tax rate, the	2773
percentage of tax revenue to be paid to the school district, the	2774
purpose for which the school district will use the money, the	2775
first year the tax will be levied, which shall be the first year	2776
after the year in which the levy is approved or any later year,	2777
the date of the special election on the question of the tax, and	2778
the method and schedule by which the municipal corporation will	2779
make payments to the school district. The special election shall	2780
be held on a day specified in division (D) of section 3501.01 of	2781
the Revised Code, except that the special election may not be held	2782
on the day for holding a primary election as authorized by the	2783
municipal corporation's charter unless the municipal corporation	2784
is to have a primary election on that day.	2785

After the legislative authority and board of education have	2786
entered into the agreement, the legislative authority shall	2787
provide for levying the tax by ordinance. The ordinance shall	2788
include the provisions described in division (A) of section 718.04	2789
of the Revised Code and shall state the tax rate, the percentage	2790
of tax revenue to be paid to the school district, the purpose for	2791
which the municipal corporation will use its share of the tax	2792
revenue, the first year the tax will be levied, and that the	2793
question of the income tax will be submitted to the electors of	2794
the municipal corporation. The legislative authority also shall	2795
adopt a resolution specifying the regular or special election date	2796
the election will be held and directing the board of elections to	2797
conduct the election. At least ninety days before the date of the	2798
election, the legislative authority shall file certified copies of	2799
the ordinance and resolution with the board of elections.	2800

(C) The board of elections shall make the necessary	2801
arrangements for the submission of the question to the electors of	2802
the municipal corporation, and shall conduct the election in the	2803
same manner as any other municipal income tax election. Notice of	2804
the election shall be published in a newspaper of general	2805
circulation in the municipal corporation once a week for four	2806
consecutive weeks, or as provided in section 7.16 of the Revised	2807
Code, prior to the election, and shall include statements of the	2808
rate and municipal corporation and school district purposes of the	2809
income tax, the percentage of tax revenue that will be paid to the	2810
school district, and the first year the tax will be levied. The	2811
ballot shall be in the following form:	2812

"Shall the ordinance providing for a ..... per cent levy on	2813
income for (brief description of the municipal corporation and	2814
school district purposes of the levy, including a statement of the	2815
percentage of tax revenue that will be paid to the school	2816
district) be passed? The income tax, if approved, will not be	2817
levied on the incomes of individuals who do not reside in (the	2818
name of the municipal corporation).	2819

2820

		For the income tax			2821
		Against the income tax	"		2822

2823

(D) If the question is approved by a majority of the	2824
electors, the municipal corporation shall impose the income tax	2825
beginning inon the first day of January of the year specified in	2826
the ordinance. The proceeds of the levy may be used only for the	2827
specified purposes, including payment of the specified percentage	2828
to the school district.	2829

Sec. 718.10.  (A) This section applies to a group of two or	2830
more municipal corporations that, taken together, share the same	2831
territory as a single city, local, or exempted village school	2832
district, to the extent that not more than five per cent of the	2833
territory of the municipal corporations as a group is located	2834
outside the school district and not more than five per cent of the	2835
territory of the school district is located outside the municipal	2836
corporations as a group.	2837

(B) The legislative authorities of the municipal corporations	2838
in a group of municipal corporations to which this section applies	2839
each may propose to the electors an income tax, to be levied in	2840
concert with income taxes in the other municipal corporations of	2841
the group, except that a legislative authority may not propose to	2842
levy the income tax on the incomes of individuals who do not	2843
reside in the municipal corporation. One of the purposes of such a	2844
tax shall be to provide financial assistance to the school	2845
district through payment to the district of not less than	2846
twenty-five per cent of the revenue generated by the tax. Prior to	2847
proposing the taxes, the legislative authorities shall negotiate	2848
and enter into a written agreement with each other and with the	2849
board of education of the school district specifying the tax rate,	2850
the percentage of the tax revenue to be paid to the school	2851
district, the first year the tax will be levied, which shall be	2852
the first year after the year in which the levy is approved or any	2853
later year, and the date of the election on the question of the	2854
tax, all of which shall be the same for each municipal	2855
corporation. The agreement also shall state the purpose for which	2856
the school district will use the money, and specify the method and	2857
schedule by which each municipal corporation will make payments to	2858
the school district. The special election shall be held on a day	2859
specified in division (D) of section 3501.01 of the Revised Code,	2860
including a day on which all of the municipal corporations are to	2861
have a primary election.	2862

After the legislative authorities and board of education have	2863
entered into the agreement, each legislative authority shall	2864
provide for levying its tax by ordinance. Each ordinance shall	2865
include the provisions described in division (A) of section 718.04	2866
of the Revised Code and shall state the rate of the tax, the	2867
percentage of tax revenue to be paid to the school district, the	2868
purpose for which the municipal corporation will use its share of	2869
the tax revenue, and the first year the tax will be levied. Each	2870
ordinance also shall state that the question of the income tax	2871
will be submitted to the electors of the municipal corporation on	2872
the same date as the submission of questions of an identical tax	2873
to the electors of each of the other municipal corporations in the	2874
group, and that unless the electors of all of the municipal	2875
corporations in the group approve the tax in their respective	2876
municipal corporations, none of the municipal corporations in the	2877
group shall levy the tax. Each legislative authority also shall	2878
adopt a resolution specifying the regular or special election date	2879
the election will be held and directing the board of elections to	2880
conduct the election. At least ninety days before the date of the	2881
election, each legislative authority shall file certified copies	2882
of the ordinance and resolution with the board of elections.	2883

(C) For each of the municipal corporations, the board of	2884
elections shall make the necessary arrangements for the submission	2885
of the question to the electors, and shall conduct the election in	2886
the same manner as any other municipal income tax election. For	2887
each of the municipal corporations, notice of the election shall	2888
be published in a newspaper of general circulation in the	2889
municipal corporation once a week for four consecutive weeks, or	2890
as provided in section 7.16 of the Revised Code, prior to the	2891
election. The notice shall include a statement of the rate and	2892
municipal corporation and school district purposes of the income	2893
tax, the percentage of tax revenue that will be paid to the school	2894
district, and the first year the tax will be levied, and an	2895
explanation that the tax will not be levied unless an identical	2896
tax is approved by the electors of each of the other municipal	2897
corporations in the group. The ballot shall be in the following	2898
form:	2899

"Shall the ordinance providing for a ... per cent levy on	2900
income for (brief description of the municipal corporation and	2901
school district purposes of the levy, including a statement of the	2902
percentage of income tax revenue that will be paid to the school	2903
district) be passed? The income tax, if approved, will not be	2904
levied on the incomes of individuals who do not reside in (the	2905
name of the municipal corporation). In order for the income tax to	2906
be levied, the voters of (the other municipal corporations in the	2907
group), which are also in the (name of the school district) school	2908
district, must approve an identical income tax and agree to pay	2909
the same percentage of the tax revenue to the school district.	2910

2911

		For the income tax			2912
		Against the income tax	"		2913

2914

(D) If the question is approved by a majority of the electors	2915
and identical taxes are approved by a majority of the electors in	2916
each of the other municipal corporations in the group, the	2917
municipal corporation shall impose the tax beginning inon the	2918
first day of January of the year specified in the ordinance. The	2919
proceeds of the levy may be used only for the specified purposes,	2920
including payment of the specified percentage to the school	2921
district.	2922

Sec. 718.11. (A)(1) The legislative authority of each	2923
municipal corporation that imposes a tax on income in accordance	2924
with this chapter shall maintain a local board of tax review to	2925
hear appeals as provided in this section. The legislative	2926
authority of any municipal corporation that does not impose a tax	2927
on income on the effective date of this amendmentJune 26, 2003,	2928
but that imposes such a tax after that date, shall establish such	2929
a board by ordinance not later than one hundred eighty days after	2930
the tax takes effect.	2931

(2) The local board of tax review shall consist of three	2932
members. Two members shall be appointed by the legislative	2933
authority of the municipal corporation, but such appointees may	2934
not be employees, elected officials, or contractors with the	2935
municipal corporation at any time during their term or in the five	2936
years immediately preceding the date of appointment. One member	2937
shall be appointed by the top administrative official of the	2938
municipal corporation. This member may be an employee of the	2939
municipal corporation, but may not be the director of finance or	2940
equivalent officer, or the tax administrator or other similar	2941
official or an employee directly involved in municipal tax	2942
matters, or any direct subordinate thereof.	2943

(3) The term for members of the local board of tax review	2944
appointed by the legislative authority of the municipal	2945
corporation shall be two years. There is no limit on the number of	2946
terms that a member may serve if the member is reappointed by the	2947
legislative authority. The board member appointed by the top	2948
administrative official of the municipal corporation shall serve	2949
at the discretion of the administrative official.	2950

(4) Members of the board of tax review appointed by the	2951
legislative authority may be removed by the legislative authority	2952
by majority vote for malfeasance, misfeasance, or nonfeasance in	2953
office. To remove such a member, the legislative authority must	2954
give the member a copy of the charges against the member and	2955
afford the member an opportunity to be publicly heard in person or	2956
by counsel in the member's own defense upon not less than ten	2957
days' notice. The decision by the legislative authority on the	2958
charges is final and not appealable.	2959

(5) A member of the board who, for any reason, ceases to meet	2960
the qualifications for the position prescribed by this section	2961
shall resign immediately by operation of law.	2962

(6) A vacancy in an unexpired term shall be filled in the	2963
same manner as the original appointment within sixty days of when	2964
the vacancy was created. Any member appointed to fill a vacancy	2965
occurring prior to the expiration of the term for which the	2966
member's predecessor was appointed shall hold office for the	2967
remainder of such term. No vacancy on the board shall impair the	2968
power and authority of the remaining members to exercise all the	2969
powers of the board.	2970

(7) If a member is temporarily unable to serve on the board	2971
due to a conflict of interest, illness, absence, or similar	2972
reason, the legislative authority or top administrative official	2973
that appointed the member shall appoint another individual to	2974
temporarily serve on the board in the member's place. The	2975
appointment of such an individual shall be subject to the same	2976
requirements and limitations as are applicable to the appointment	2977
of the member temporarily unable to serve.	2978

(B) Whenever a tax administrator issues a decisionan	2979
assessment regarding aan underpayment of municipal income tax	2980
obligation that is subject to appeal as provided in this section	2981
or in an ordinance or regulation of the municipal corporationor	2982
denies a refund claim, the tax administrator shall notify the	2983
taxpayer in writing at the same time of the taxpayer's right to	2984
appeal the decision and ofassessment or denial, the manner in	2985
which the taxpayer may appeal the decisionassessment or denial,	2986
and the address to which the appeal should be directed.	2987

(C) Any person who is aggrieved by a decision by the tax	2988
administrator and who has filed with the municipal corporation the	2989
required returns or other documents pertaining to the municipal	2990
income tax obligation at issue in the decisionhas been issued an	2991
assessment may appeal the decisionassessment to the board created	2992
pursuant to this section by filing a request with the board. The	2993
request shall be in writing, shall statespecify the reason or	2994
reasons why the decisionassessment should be deemed incorrect or	2995
unlawful, and shall be filed within thirtysixty days after the	2996
tax administrator issuestaxpayer receives the decision	2997
complained ofassessment.	2998

(D) The local board of tax review shall schedule a hearing to	2999
be held within forty-fivesixty days after receiving the request	3000
an appeal of an assessment under division (C) of this section,	3001
unless the taxpayer requests additional time to prepare or waives	3002
a hearing. If the taxpayer does not waive the hearing, the	3003
taxpayer may appear before the board and may be represented by an	3004
attorney at law, certified public accountant, or other	3005
representative. The board may allow a hearing to be continued as	3006
jointly agreed to by the parties. In such a case, the hearing must	3007
be completed within one hundred twenty days after the first day of	3008
the hearing unless the parties agree otherwise.	3009

(E) The board may affirm, reverse, or modify the tax	3010
administrator's decisionassessment or any part of that decision	3011
assessment. The board shall issue a final decisiondetermination	3012
on the appeal within ninety days after the board's final hearing	3013
on the appeal, and send a copy of its final decision	3014
determination by ordinary mail to all of the parties to the appeal	3015
within fifteen days after issuing the decisionfinal	3016
determination. The taxpayer or the tax administrator may appeal	3017
the board's decisionfinal determination as provided in section	3018
5717.011 of the Revised Code.	3019

Each(F) The local board of appealtax review created	3020
pursuant to this section shall adopt rules governing its	3021
procedures and shall keep a record of its transactions. Such	3022
records are not public records available for inspection under	3023
section 149.43 of the Revised Code. Hearings requested by a	3024
taxpayer before a local board of appealtax review created	3025
pursuant to this section are not meetings of a public body subject	3026
to section 121.22 of the Revised Code.	3027

Sec. 718.12.  (A)(1)(a) Civil actions to recover municipal	3028
income taxes and penalties and interest on municipal income taxes	3029
shall be brought within the later of:	3030

(i) Three years after the tax was due or the return was	3031
filed, whichever is later; or	3032

(ii) One year after the conclusion of the qualifying deferral	3033
period, if any.	3034

(b) The time limit described in division (A)(1)(a) of this	3035
section may be extended at any time if both the tax administrator	3036
and the employer, agent of the employer, other payer, or taxpayer	3037
consent in writing to the extension. Any extension shall also	3038
extend for the same period of time the time limit described in	3039
division (C) of this section.	3040

(2) As used in this section, "qualifying deferral period"	3041
means a period of time beginning and ending as follows:	3042

(a) Beginning on the date a person who is aggrieved by an	3043
assessment files with a local board of tax review the request	3044
described in section 718.11 of the Revised Code. That date shall	3045
not be affected by any subsequent decision, finding, or holding by	3046
any administrative body or court that the local board of tax	3047
review with which the aggrieved person filed the request did not	3048
have jurisdiction to affirm, reverse, or modify the assessment or	3049
any part of that assessment.	3050

(b) Ending the later of the sixtieth day after the date on	3051
which the final determination of the local board of tax review	3052
becomes final or, if any party appeals from the determination of	3053
the local board of tax review, the sixtieth day after the date on	3054
which the final determination of the local board of tax review is	3055
either ultimately affirmed in whole or in part or ultimately	3056
reversed and no further appeal of either that affirmation, in	3057
whole or in part, or that reversal is available or taken.	3058

(B) Prosecutions for an offense made punishable under a	3059
resolution or ordinance imposing an income tax shall be commenced	3060
within three years after the commission of the offense, provided	3061
that in the case of fraud, failure to file a return, or the	3062
omission of twenty-five per cent or more of income required to be	3063
reported, prosecutions may be commenced within six years after the	3064
commission of the offense.	3065

(C) A claim for a refund of municipal income taxes shall be	3066
brought within the time limitation provided in section 718.19 of	3067
the Revised Code.	3068

(D) Interest shall be allowed and paid on any overpayment by	3069
a taxpayer of any municipal income tax obligation from the date of	3070
the overpayment until the date of the refund of the overpayment,	3071
except that if any overpayment is refunded within ninety days	3072
after the final filing date of the annual return or ninety days	3073
after the completed return is filed, whichever is later, no	3074
interest shall be allowed on the refund. For the purpose of	3075
computing the payment of interest on amounts overpaid, no amount	3076
of tax for any taxable year shall be considered to have been paid	3077
before the date on which the return on which the tax is reported	3078
is due, without regard to any extension of time for filing that	3079
return. Interest shall be paid at the interest rate described in	3080
division (A)(5) of section 718.27 of the Revised Code.	3081

(E) Within sixty days after the final determination of any	3082
federal or state tax liability affecting the taxpayer's municipal	3083
tax liability, that taxpayer shall make and file an amended	3084
municipal return showing income subject to the municipal income	3085
tax based upon such final determination of federal or state tax	3086
liability, and pay any additional municipal income tax shown due	3087
thereon or make a claim for refund of any overpayment, unless the	3088
tax or overpayment is less than ten dollars.	3089

(F)(1) Notwithstanding the fact that an appeal is pending,	3090
the petitioner may pay all or a portion of the assessment that is	3091
the subject of the appeal. The acceptance of a payment by the	3092
municipal corporation does not prejudice any claim for refund upon	3093
final determination of the appeal.	3094

(2) If upon final determination of the appeal an error in the	3095
assessment is corrected by the tax administrator, upon an appeal	3096
so filed or pursuant to a final determination of the local board	3097
of tax review created under section 718.11 of the Revised Code, of	3098
the Ohio board of tax appeals, or any court to which the decision	3099
of the Ohio board of tax appeals has been appealed, so that the	3100
amount due from the party assessed under the corrected assessment	3101
is less than the amount paid, there shall be issued to the	3102
appellant or to the appellant's assigns or legal representative a	3103
refund in the amount of the overpayment as provided by section	3104
718.19 of the Revised Code, with interest on that amount as	3105
provided by division (D) of this section.	3106

(G) No civil action to recover municipal income tax or	3107
related penalties or interest shall be brought during either of	3108
the following time periods:	3109

(1) The period during which a taxpayer has a right to appeal	3110
the imposition of that tax or interest or those penalties;	3111

(2) The period during which an appeal related to the	3112
imposition of that tax or interest or those penalties is pending.	3113

Sec. 718.121. (A) Except as provided in division (B) of this	3114
section, if tax or withholding is paid to a municipal corporation	3115
on income or wages, and if a second municipal corporation imposes	3116
or assesses a tax on that income or wages after the time period	3117
allowed for a refund of the tax or withholding paid to the first	3118
municipal corporation, the second municipal corporation shall	3119
allow a nonrefundable credit, against the tax or withholding the	3120
second municipality claims is due with respect to such income or	3121
wages, equal to the tax or withholding paid to the first municipal	3122
corporation with respect to such income or wages.	3123

(B) If the tax rate in the second municipal corporation is	3124
less than the tax rate in the first municipal corporation, then	3125
the credit described in division (A) of this section shall be	3126
calculated using the tax rate in effect in the second municipal	3127
corporation.	3128

(C) If the tax rate in the second municipal corporation is	3129
greater than the tax rate in the first municipal corporation, the	3130
tax due in excess of the credit afforded is to be paid to the	3131
second municipal corporation, along with any penalty and interest	3132
accruing thereto during the period of nonpayment.	3133

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

3134

Sec. 718.13.  (A) Any information gained as a result of	3135
returns, investigations, hearings, or verifications required or	3136
authorized by this chapter or by a charter or ordinance of a	3137
municipal corporation levying an income tax pursuant to this	3138
chapter is confidential, and no person shall access or disclose	3139
such information except in accordance with a proper judicial order	3140
or in connection with the performance of that person's official	3141
duties or the official business of the municipal corporation as	3142
authorized by this chapter or the charter or ordinance authorizing	3143
the levy. The tax administrator of the municipal corporation or a	3144
designee thereof may furnish copies of returns filed or otherwise	3145
received under this chapter and other related tax information to	3146
the internal revenue service and to, the tax commissioner, and tax	3147
administrators of other municipal corporations.	3148

(B) This section does not prohibit the legislative authority	3149
of a municipal corporation, by ordinance or resolution, from	3150
authorizing the tax administrator to publishpublishing or	3151
disclosing statistics in a form that does not disclose information	3152
with respect to particular taxpayers.	3153

Sec. 718.18. (A)(1) Subject to division (B) of this section,	3154
a copy of each assessment shall be served upon the person affected	3155
thereby either by personal service, by certified mail, or by a	3156
delivery service authorized under section 5703.056 of the Revised	3157
Code.	3158

(2) With the permission of the person affected by an	3159
assessment, the tax administrator may deliver the assessment	3160
through alternative means as provided in this section, including,	3161
but not limited to, delivery by secure electronic mail. Delivery	3162
by such means satisfies the requirements for delivery under this	3163
section.	3164

(B)(1)(a) If certified mail is returned because of an	3165
undeliverable address, a tax administrator shall utilize	3166
reasonable means to ascertain a new last known address, including	3167
the use of a change of address service offered by the postal	3168
service or an authorized delivery service under section 5703.056	3169
of the Revised Code. If, after using reasonable means, the tax	3170
administrator is unable to ascertain a new last known address, the	3171
assessment shall be sent by ordinary mail and considered served.	3172
If the ordinary mail is subsequently returned because of an	3173
undeliverable address, the assessment remains appealable within	3174
sixty days after the assessment's postmark.	3175

(b) Once the tax administrator or other municipal official,	3176
or the designee of either, serves an assessment on the person to	3177
whom the assessment is directed, the person may protest the ruling	3178
of that assessment by filing an appeal with the local board of tax	3179
review within sixty days after the receipt of service. The	3180
delivery of an assessment of the tax administrator under division	3181
(B)(1)(a) of this section is prima facie evidence that delivery is	3182
complete and that the assessment is served.	3183

(2) If mailing of an assessment by a tax administrator by	3184
certified mail is returned for some cause other than an	3185
undeliverable address, the tax administrator shall resend the	3186
assessment by ordinary mail. The assessment shall show the date	3187
the tax administrator sends the assessment and include the	3188
following statement:	3189

"This assessment is deemed to be served on the addressee	3190
under applicable law ten days from the date this assessment was	3191
mailed by the tax administrator as shown on the assessment, and	3192
all periods within which an appeal may be filed apply from and	3193
after that date."	3194

Unless the mailing is returned because of an undeliverable	3195
address, the mailing of that information is prima facie evidence	3196
that delivery of the assessment was completed ten days after the	3197
tax administrator sent the assessment by ordinary mail and that	3198
the assessment was served.	3199

If the ordinary mail is subsequently returned because of an	3200
undeliverable address, the tax administrator shall proceed under	3201
division (B)(1)(a) of this section. A person may challenge the	3202
presumption of delivery and service under this division in	3203
accordance with division (C) of this section.	3204

(C)(1) A person disputing the presumption of delivery and	3205
service under division (B) of this section bears the burden of	3206
proving by a preponderance of the evidence that the address to	3207
which the assessment was sent was not an address with which the	3208
person was associated at the time the tax administrator originally	3209
mailed the assessment by certified mail. For the purposes of this	3210
section, a person is associated with an address at the time the	3211
tax administrator originally mailed the assessment if, at that	3212
time, the person was residing, receiving legal documents, or	3213
conducting business at the address; or if, before that time, the	3214
person had conducted business at the address and, when the	3215
assessment was mailed, the person's agent or the person's	3216
affiliate was conducting business at the address. For the purposes	3217
of this section, a person's affiliate is any other person that, at	3218
the time the assessment was mailed, owned or controlled at least	3219
twenty per cent, as determined by voting rights, of the	3220
addressee's business.	3221

(2) If a person elects to appeal an assessment on the basis	3222
described in division (C)(1) of this section, and if that	3223
assessment is subject to collection and is not otherwise	3224
appealable, the person must do so within sixty days after the	3225
initial contact by the tax administrator or other municipal	3226
official, or the designee of either, with the person. Nothing in	3227
this division prevents the tax administrator or other official	3228
from entering into a compromise with the person if the person does	3229
not actually file such an appeal with the local board of tax	3230
review.	3231

(D) Nothing in this section prohibits the tax administrator	3232
or the tax administrator's designee from delivering an assessment	3233
by a tax administrator by personal service.	3234

(E) Collection actions taken upon any assessment being	3235
appealed under division (B)(1)(b) of this section shall be stayed	3236
upon the pendency of an appeal under this section. If an appeal is	3237
filed pursuant to this section on a claim that has been delivered	3238
for collection, the collection activities with respect to the	3239
assessment shall be stayed.	3240

(F) As used in this section:

3241

(1) "Last known address" means the address the tax	3242
administrator has at the time a document is originally sent by	3243
certified mail, or any address the tax administrator can ascertain	3244
using reasonable means such as the use of a change of address	3245
service offered by the postal service or an authorized delivery	3246
service under section 5703.056 of the Revised Code.	3247

(2) "Undeliverable address" means an address to which the	3248
postal service or an authorized delivery service under section	3249
5703.056 of the Revised Code is not able to deliver an assessment	3250
of the tax administrator, except when the reason for nondelivery	3251
is because the addressee fails to acknowledge or accept the	3252
assessment.	3253

Sec. 718.19. (A) Upon receipt of a request for a refund, the	3254
tax administrator of a municipal corporation, in accordance with	3255
this section, shall refund to employers, agents of employers,	3256
other payers, or taxpayers, with respect to any income or	3257
withholding tax levied by the municipal corporation:	3258

(1) Overpayments of more than ten dollars;

3259

(2) Amounts paid erroneously if the refund requested exceeds	3260
ten dollars.	3261

(B)(1) Except as otherwise provided in this chapter, requests	3262
for refund shall be filed with the tax administrator, on the form	3263
prescribed by the tax administrator within three years after the	3264
tax was due or paid, whichever is later. The tax administrator may	3265
require the requestor to file with the request any documentation	3266
that substantiates the requestor's claim for a refund.	3267

(2) On filing of the refund request, the tax administrator	3268
shall determine the amount of refund due and certify such amount	3269
to the appropriate municipal corporation official for payment.	3270
Except as provided in division (B)(3) of this section, the	3271
administrator shall issue an assessment to any taxpayer whose	3272
request for refund is fully or partially denied. The assessment	3273
shall state the amount of the refund that was denied, the reasons	3274
for the denial, and instructions for appealing the assessment.	3275

(3) If a tax administrator denies in whole or in part a	3276
refund request included within the taxpayer's originally filed	3277
annual income tax return, the tax administrator shall notify the	3278
taxpayer, in writing, of the amount of the refund that was denied,	3279
the reasons for the denial, and instructions for requesting an	3280
assessment that may be appealed under section 718.11 of the	3281
Revised Code.	3282

(C) A request for a refund that is received after the last	3283
day for filing specified in division (B) of this section shall be	3284
considered to have been filed in a timely manner if any of the	3285
following situations exist:	3286

(1) The request is delivered by the postal service, and the	3287
earliest postal service postmark on the cover in which the request	3288
is enclosed is not later than the last day for filing the request.	3289

(2) The request is delivered by the postal service, the only	3290
postmark on the cover in which the request is enclosed was affixed	3291
by a private postal meter, the date of that postmark is not later	3292
than the last day for filing the request, and the request is	3293
received within seven days of such last day.	3294

(3) The request is delivered by the postal service, no	3295
postmark date was affixed to the cover in which the request is	3296
enclosed or the date of the postmark so affixed is not legible,	3297
and the request is received within seven days of the last day for	3298
making the request.	3299

(D) As used in this section, "withholding tax" has the same	3300
meaning as in section 718.27 of the Revised Code.	3301

Sec. 718.23. (A) A tax administrator, or any authorized agent	3302
or employee thereof may examine the books, papers, records, and	3303
federal and state income tax returns of any employer, taxpayer, or	3304
other person that is subject to, or that the tax administrator	3305
believes is subject to, the provisions of this chapter for the	3306
purpose of verifying the accuracy of any return made or, if no	3307
return was filed, to ascertain the tax due under this chapter.	3308
Upon written request by the tax administrator or a duly authorized	3309
agent or employee thereof, every employer, taxpayer, or other	3310
person subject to this section is required to furnish the	3311
opportunity for the tax administrator, authorized agent, or	3312
employee to investigate and examine such books, papers, records,	3313
and federal and state income tax returns at a reasonable time and	3314
place designated in the request.	3315

(B) The records and other documents of any taxpayer,	3316
employer, or other person that is subject to, or that a tax	3317
administrator believes is subject to, the provisions of this	3318
chapter shall be open to the tax administrator's inspection during	3319
business hours and shall be preserved for a period of six years	3320
following the end of the taxable year to which the records or	3321
documents relate, unless the tax administrator, in writing,	3322
consents to their destruction within that period, or by order	3323
requires that they be kept longer. The tax administrator of a	3324
municipal corporation may require any person, by notice served on	3325
that person, to keep such records as the tax administrator	3326
determines necessary to show whether or not that person is liable,	3327
and the extent of such liability, for the income tax levied by the	3328
municipal corporation or for the withholding of such tax.	3329

(C) The tax administrator may examine under oath any person	3330
that the tax administrator reasonably believes has knowledge	3331
concerning any income that was or would have been returned for	3332
taxation or any transaction tending to affect such income. The tax	3333
administrator may, for this purpose, compel any such person to	3334
attend a hearing or examination and to produce any books, papers,	3335
records, and federal income tax returns in such person's	3336
possession or control. The person may be assisted or represented	3337
by an attorney, accountant, bookkeeper, or other tax practitioner	3338
at any such hearing or examination. This division does not	3339
authorize the practice of law by a person who is not an attorney.	3340

(D) No person issued written notice by the tax administrator	3341
compelling attendance at a hearing or examination or the	3342
production of books, papers, records, or federal income tax	3343
returns under this section shall fail to comply.	3344

Sec. 718.24.  Nothing in this chapter shall limit the	3345
authority of a tax administrator to perform any of the following	3346
duties or functions, unless the performance of such duties or	3347
functions is expressly limited by a provision of the Revised Code	3348
or the charter or ordinances of the municipal corporation:	3349

(A) Exercise all powers whatsoever of an inquisitorial nature	3350
as provided by law, including, the right to inspect books,	3351
accounts, records, memorandums, and federal and state income tax	3352
returns, to examine persons under oath, to issue orders or	3353
subpoenas for the production of books, accounts, papers, records,	3354
documents, and testimony, to take depositions, to apply to a court	3355
for attachment proceedings as for contempt, to approve vouchers	3356
for the fees of officers and witnesses, and to administer oaths;	3357
provided that the powers referred to in this division of this	3358
section shall be exercised by the tax administrator only in	3359
connection with the performance of the duties respectively	3360
assigned to the tax administrator under a municipal corporation	3361
income tax ordinance or resolution adopted in accordance with this	3362
chapter;	3363

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

3364

(C) Confer and meet with officers of other municipal	3365
corporations and states and officers of the United States on any	3366
matters pertaining to their respective official duties as provided	3367
by law;	3368

(D) Exercise the authority provided by law, including orders	3369
from bankruptcy courts, relative to remitting or refunding taxes,	3370
including penalties and interest thereon, illegally or erroneously	3371
imposed or collected, or for any other reason overpaid, and, in	3372
addition, the tax administrator may investigate any claim of	3373
overpayment and make a written statement of the tax	3374
administrator's findings, and, if the tax administrator finds that	3375
there has been an overpayment, approve and issue a refund payable	3376
to the taxpayer, the taxpayer's assigns, or legal representative	3377
as provided in this chapter;	3378

(E) Exercise the authority provided by law relative to	3379
consenting to the compromise and settlement of tax claims;	3380

(F) Exercise the authority provided by law relative to the	3381
use of alternative apportionment methods by taxpayers in	3382
accordance with section 718.02 of the Revised Code;	3383

(G) Make all tax findings, determinations, computations, and	3384
orders the tax administrator is by law authorized and required to	3385
make and, pursuant to time limitations provided by law, on the tax	3386
administrator's own motion, review, redetermine, or correct any	3387
tax findings, determinations, computations, or orders the tax	3388
administrator has made, but the tax administrator shall not	3389
review, redetermine, or correct any tax finding, determination,	3390
computation, or order which the tax administrator has made as to	3391
which an appeal has been filed with the local board of tax review	3392
or other appropriate tribunal, unless such appeal or application	3393
is withdrawn by the appellant or applicant, is dismissed, or is	3394
otherwise final;	3395

(H) Destroy any or all returns or other tax documents in the	3396
manner authorized by law;	3397

(I) Enter into an agreement with a taxpayer to simplify the	3398
withholding obligations described in section 718.03 of the Revised	3399
Code.	3400

Sec. 718.25.  A person may round to the nearest whole dollar	3401
all amounts the person is required to enter on any return, report,	3402
voucher, or other document required under this chapter. Any	3403
fractional part of a dollar that equals or exceeds fifty cents	3404
shall be rounded to the next whole dollar, and any fractional part	3405
of a dollar that is less than fifty cents shall be dropped. If a	3406
person chooses to round amounts entered on a document, the person	3407
shall round all amounts entered on the document.	3408

Sec. 718.26.  (A) Nothing in this chapter prohibits a tax	3409
administrator from requiring any person filing a tax document with	3410
the tax administrator to provide identifying information, which	3411
may include the person's social security number, federal employer	3412
identification number, or other identification number requested by	3413
the tax administrator. A person required by the tax administrator	3414
to provide identifying information that has experienced any change	3415
with respect to that information shall notify the tax	3416
administrator of the change before, or upon, filing the next tax	3417
document requiring the identifying information.	3418

(B) When transmitting or otherwise making use of a tax	3419
document that contains a person's social security number, the tax	3420
administrator shall take all reasonable measures necessary to	3421
ensure that the number is not capable of being viewed by the	3422
general public, including, when necessary, masking the number so	3423
that it is not readily discernible by the general public. The tax	3424
administrator shall not put a person's social security number on	3425
the outside of any material mailed to the person.	3426

(C)(1) If the tax administrator makes a request for	3427
identifying information and the tax administrator does not receive	3428
valid identifying information within thirty days of making the	3429
request, nothing in this chapter prohibits the tax administrator	3430
from imposing a penalty upon the person to whom the request was	3431
directed pursuant to section 718.27 of the Revised Code, in	3432
addition to any applicable penalty described in section 718.99 of	3433
the Revised Code.	3434

(2) If a person required by the tax administrator to provide	3435
identifying information does not notify the tax administrator of a	3436
change with respect to that information as required under division	3437
(A) of this section within thirty days after filing the next tax	3438
document requiring such identifying information, nothing in this	3439
chapter prohibits the tax administrator from imposing a penalty	3440
pursuant to section 718.27 of the Revised Code.	3441

(3) The penalties provided for under divisions (C)(1) and (2)	3442
of this section may be billed and imposed in the same manner as	3443
the tax or fee with respect to which the identifying information	3444
is sought and are in addition to any applicable criminal penalties	3445
described in section 718.99 of the Revised Code for a violation of	3446
section 718.35 of the Revised Code and any other penalties that	3447
may be imposed by the tax administrator by law.	3448

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

3449

(1) "Applicable law" means this chapter, the resolutions,	3450
ordinances, codes, directives, instructions, and rules adopted by	3451
a municipal corporation provided such resolutions, ordinances,	3452
codes, directives, instructions, and rules impose or directly or	3453
indirectly address the levy, payment, remittance, or filing	3454
requirements of a municipal income tax.	3455

(2) "Income tax," "estimated income tax," and "withholding	3456
tax" means any income tax, estimated income tax, and withholding	3457
tax imposed by a municipal corporation pursuant to applicable law,	3458
including at any time before January 1, 2016.	3459

(3) A "return" includes any tax return, report,	3460
reconciliation, schedule, and other document required to be filed	3461
with a tax administrator or municipal corporation by a taxpayer,	3462
employer, any agent of the employer, or any other payer pursuant	3463
to applicable law, including at any time before January 1, 2016.	3464

(4) "Federal short-term rate" means the rate of the average	3465
market yield on outstanding marketable obligations of the United	3466
States with remaining periods to maturity of three years or less,	3467
as determined under section 1274 of the Internal Revenue Code, for	3468
July of the current year.	3469

(5) "Interest rate as described in division (A) of this	3470
section" means the federal short-term rate, rounded to the nearest	3471
whole number per cent, plus five per cent. The rate shall apply	3472
for the calendar year next following the July of the year in which	3473
the federal short-term rate is determined in accordance with	3474
division (A)(4) of this section.	3475

(6) "Unpaid estimated income tax" means estimated income tax	3476
due but not paid by the date the tax is required to be paid under	3477
applicable law.	3478

(7) "Unpaid income tax" means income tax due but not paid by	3479
the date the income tax is required to be paid under applicable	3480
law.	3481

(8) "Unpaid withholding tax" means withholding tax due but	3482
not paid by the date the withholding tax is required to be paid	3483
under applicable law.	3484

(9) "Withholding tax" includes amounts an employer, any agent	3485
of an employer, or any other payer did not withhold in whole or in	3486
part from an employee's qualifying wages, but that, under	3487
applicable law, the employer, agent, or other payer is required to	3488
withhold from an employee's qualifying wages.	3489

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

3490

(a) Any return required to be filed under applicable law for	3491
taxable years beginning on or after January 1, 2016;	3492

(b) Income tax, estimated income tax, and withholding tax	3493
required to be paid or remitted to the municipal corporation on or	3494
after January 1, 2016.	3495

(2) This section does not apply to returns required to be	3496
filed or payments required to be made before January 1, 2016,	3497
regardless of the filing or payment date. Returns required to be	3498
filed or payments required to be made before January 1, 2016, but	3499
filed or paid after that date shall be subject to the ordinances	3500
or rules, as adopted before January 1, 2016, of the municipal	3501
corporation to which the return is to be filed or the payment is	3502
to be made.	3503

(C) Each municipal corporation levying a tax on income may	3504
impose on a taxpayer, employer, any agent of the employer, and any	3505
other payer, and must attempt to collect, the interest amounts and	3506
penalties prescribed under division (C) of this section when the	3507
taxpayer, employer, any agent of the employer, or any other payer	3508
for any reason fails, in whole or in part, to make to the	3509
municipal corporation timely and full payment or remittance of	3510
income tax, estimated income tax, or withholding tax or to file	3511
timely with the municipal corporation any return required to be	3512
filed.	3513

(1) Interest shall be imposed at the rate described in	3514
division (A) of this section, per annum, on all unpaid income tax,	3515
unpaid estimated income tax, and unpaid withholding tax.	3516

(2)(a) With respect to unpaid income tax and unpaid estimated	3517
income tax, a municipal corporation may impose a penalty equal to	3518
fifteen per cent of the amount not timely paid.	3519

(b) With respect to any unpaid withholding tax, a municipal	3520
corporation may impose a penalty equal to fifty per cent of the	3521
amount not timely paid.	3522

(3) With respect to returns other than estimated income tax	3523
returns, a municipal corporation may impose a penalty of	3524
twenty-five dollars for each failure to timely file each return,	3525
regardless of the liability shown thereon for each month, or any	3526
fraction thereof, during which the return remains unfiled	3527
regardless of the liability shown thereon. The penalty shall not	3528
exceed one hundred fifty dollars for each failure.	3529

(D)(1) With respect to the income taxes, estimated income	3530
taxes, withholding taxes, and returns, no municipal corporation	3531
shall impose, seek to collect, or collect any penalty, amount of	3532
interest, charges, or additional fees not described in this	3533
section.	3534

(2) With respect to the income taxes, estimated income taxes,	3535
withholding taxes, and returns not described in division (A) of	3536
this section, nothing in this section requires a municipal	3537
corporation to refund or credit any penalty, amount of interest,	3538
charges, or additional fees that the municipal corporation has	3539
properly imposed or collected before January 1, 2016.	3540

(E) Nothing in this section limits the authority of a	3541
municipal corporation to abate or partially abate penalties or	3542
interest imposed under this section when the tax administrator	3543
determines, in the tax administrator's sole discretion, that such	3544
abatement is appropriate.	3545

(F) By the thirty-first day of October of each year the	3546
municipal corporation shall publish the rate described in division	3547
(A) of this section applicable to the next succeeding calendar	3548
year.	3549

(G) The municipal corporation may impose on the taxpayer,	3550
employer, any agent of the employer, or any other payer the	3551
municipal corporation's post-judgment collection costs and fees,	3552
including attorney's fees.	3553

Sec. 718.28.  (A) As used in this section, "claim" means a	3554
claim for an amount payable to a municipal corporation that arises	3555
pursuant to the municipal income tax imposed in accordance with	3556
this chapter.	3557

(B) Nothing in this chapter prohibits a tax administrator	3558
from doing either of the following if such action is in the best	3559
interests of the municipal corporation:	3560

(1) Compromise a claim;

3561

(2) Extend for a reasonable period the time for payment of a	3562
claim by agreeing to accept monthly or other periodic payments.	3563

(C) The tax administrator may consider the following	3564
standards when ascertaining with respect to a claim whether a	3565
compromise or payment-over-time agreement is in the best interests	3566
of the municipal corporation:	3567

(1) There exists a doubt as to whether the claim can be	3568
collected.	3569

(2) There exists a substantial probability that, upon payment	3570
of the claim and submission of a timely request for refund with	3571
respect to that payment, the tax administrator would refund an	3572
amount that was illegally or erroneously paid.	3573

(3) There exists an economic hardship such that a compromise	3574
or agreement would facilitate effective tax administration.	3575

(4) There exists a joint liability among spouses, one of whom	3576
is an innocent spouse, provided that any relief under this	3577
standard shall only affect the claim as to the innocent spouse. A	3578
spouse granted relief under section 6015 of the Internal Revenue	3579
Code with regard to any income item is rebuttably presumed to be	3580
an innocent spouse with regard to that income item to the extent	3581
that income item is included in or otherwise affects the	3582
computation of a municipal income tax or any penalty or interest	3583
on that tax.	3584

(5) Any other reasonable standard that the tax administrator	3585
establishes.	3586

(D) The tax administrator's rejection of a compromise or	3587
payment-over-time agreement proposed by a person with respect to a	3588
claim shall not be appealable.	3589

(E) A compromise or payment-over-time agreement with respect	3590
to a claim shall be binding upon and shall inure to the benefit of	3591
only the parties to the compromise or agreement, and shall not	3592
extinguish or otherwise affect the liability of any other person.	3593

(F) A compromise or payment-over-time agreement with respect	3594
to a claim shall be void if the taxpayer defaults under the	3595
compromise or agreement or if the compromise or agreement was	3596
obtained by fraud or by misrepresentation of a material fact. Any	3597
amount that was due before the compromise or agreement and that is	3598
unpaid shall remain due, and any penalties or interest that would	3599
have accrued in the absence of the compromise or agreement shall	3600
continue to accrue and be due.	3601

Sec. 718.30.  Nothing in this chapter prohibits the	3602
legislative authority of a municipal corporation, or a tax	3603
administrator pursuant to authority granted to the administrator	3604
by resolution or ordinance, to adopt rules to administer an income	3605
tax imposed by the municipal corporation in accordance with this	3606
chapter. Such rules shall not conflict with or be inconsistent	3607
with any provision of this chapter. All rules adopted under this	3608
section shall be published and posted on the internet as described	3609
in section 718.07 of the Revised Code.	3610

Sec. 718.31. No person hired or retained by a tax	3611
administrator to examine or inspect a taxpayer's books shall be	3612
paid on a contingency basis.	3613

Sec. 718.35.  No person shall knowingly make, present, aid,	3614
or assist in the preparation or presentation of a false or	3615
fraudulent report, return, schedule, statement, claim, or document	3616
authorized or required by municipal corporation ordinance or state	3617
law to be filed with a tax administrator, or knowingly procure,	3618
counsel, or advise the preparation or presentation of such report,	3619
return, schedule, statement, claim, or document, or knowingly	3620
change, alter, or amend, or knowingly procure, counsel or advise	3621
such change, alteration, or amendment of the records upon which	3622
such report, return, schedule, statement, claim, or document is	3623
based with intent to defraud the municipal corporation or a tax	3624
administrator.	3625

Sec. 718.36.  (A) At or before the commencement of an audit,	3626
the tax administrator shall provide to the taxpayer a written	3627
description of the roles of the tax administrator and of the	3628
taxpayer during an audit and a statement of the taxpayer's rights,	3629
including any right to obtain a refund of an overpayment of a tax.	3630
At or before the commencement of an audit, the tax administrator	3631
shall inform the taxpayer when the audit is considered to have	3632
commenced.	3633

(B) Except in cases involving suspected criminal activity,	3634
the tax administrator shall conduct an audit of a taxpayer during	3635
regular business hours and after providing reasonable notice to	3636
the taxpayer. A taxpayer who is unable to comply with a proposed	3637
time for an audit on the grounds that the proposed time would	3638
cause inconvenience or hardship must offer reasonable alternative	3639
dates for the audit.	3640

(C) At all stages of an audit by the tax administrator, a	3641
taxpayer is entitled to be assisted or represented by an attorney,	3642
accountant, bookkeeper, or other tax practitioner. The tax	3643
administrator shall prescribe a form by which a taxpayer may	3644
designate such a person to assist or represent the taxpayer in the	3645
conduct of any proceedings resulting from actions by the tax	3646
administrator. If a taxpayer has not submitted such a form, the	3647
tax administrator may accept other evidence, as the tax	3648
administrator considers appropriate, that a person is the	3649
authorized representative of a taxpayer.	3650

A taxpayer may refuse to answer any questions asked by the	3651
person conducting an audit until the taxpayer has an opportunity	3652
to consult with the taxpayer's attorney, accountant, bookkeeper,	3653
or other tax practitioner. This division does not authorize the	3654
practice of law by a person who is not an attorney.	3655

(D) A taxpayer may record, electronically or otherwise, the	3656
audit examination.	3657

(E) The failure of the tax administrator to comply with a	3658
provision of this section shall neither excuse a taxpayer from	3659
payment of any taxes owed by the taxpayer nor cure any procedural	3660
defect in a taxpayer's case.	3661

(F) If the tax administrator fails to substantially comply	3662
with the provisions of this section, the tax administrator, upon	3663
application by the taxpayer, shall excuse the taxpayer from	3664
penalties and interest arising from the audit.	3665

Sec. 718.37.  (A) A taxpayer aggrieved by an action or	3666
omission of a tax administrator, a tax administrator's employee,	3667
or an employee of the municipal corporation may bring an action	3668
against the tax administrator, against the municipal corporation,	3669
or against both, for damages in the court of common pleas of the	3670
county in which the municipal corporation is located, if all of	3671
the following apply:	3672

(1) In the action or omission the tax administrator, the tax	3673
administrator's employee, or the employee of the municipal	3674
corporation frivolously disregards a provision of this chapter or	3675
a rule or instruction of the tax administrator;	3676

(2) The action or omission occurred with respect to an audit	3677
or an assessment and the review and collection proceedings	3678
connected with the audit or assessment;	3679

(3) The tax administrator, the tax administrator's employee,	3680
or the employee of the municipal corporation did not act	3681
manifestly outside the scope of employment and did not act with	3682
malicious purpose, in bad faith, or in a wanton or reckless	3683
manner.	3684

(B) In any action brought under division (A) of this section,	3685
upon a finding of liability on the part of the tax administrator	3686
or the municipal corporation, the tax administrator or the	3687
municipal corporation shall be liable to the taxpayer in an amount	3688
equal to the sum of the following:	3689

(1) Compensatory damages sustained by the taxpayer as a	3690
result of the action or omission by the tax administrator, the tax	3691
administrator's employee, or the employee of the municipal	3692
corporation;	3693

(2) Reasonable costs of litigation and attorneys' fees	3694
sustained by the taxpayer.	3695

(C) In the awarding of damages under division (B) of this	3696
section, the court shall take into account the negligent actions	3697
or omissions, if any, on the part of the taxpayer that contributed	3698
to the damages, but shall not be bound by the provisions of	3699
sections 2315.32 to 2315.36 of the Revised Code.	3700

(D) Whenever it appears to the court that a taxpayer's	3701
conduct in the proceedings brought under division (A) of this	3702
section is frivolous, the court may impose a penalty against the	3703
taxpayer in an amount not to exceed ten thousand dollars which	3704
shall be paid to the general fund of the municipal corporation.	3705

(E) Division (A) of this section does not apply to opinions	3706
of the tax administrator or other information functions of the tax	3707
administrator.	3708

(F) As used in this section, "frivolous" means that the	3709
conduct of the tax administrator, an employee of the municipal	3710
corporation or the tax administrator, the taxpayer, or the	3711
taxpayer's counsel of record satisfies either of the following:	3712

(1) It obviously serves merely to harass or maliciously	3713
injure the tax administrator, the municipal corporation, or	3714
employees thereof if referring to the conduct of a taxpayer or the	3715
taxpayer's counsel of record, or to harass or maliciously injure	3716
the taxpayer if referring to the conduct of the tax administrator,	3717
the municipal corporation, or employees thereof;	3718

(2) It is not warranted under existing law and cannot be	3719
supported by a good faith argument for an extension, modification,	3720
or reversal of existing law.	3721

Sec. 718.38.  (A) An "opinion of the tax administrator" means	3722
an opinion issued under this section with respect to prospective	3723
municipal income tax liability. It does not include ordinary	3724
correspondence of the tax administrator.	3725

(B) A taxpayer may submit a written request for an opinion of	3726
the tax administrator as to whether or how certain income, source	3727
of income, or a certain activity or transaction will be taxed. The	3728
written response of the tax administrator shall be an "opinion of	3729
the tax administrator" and shall bind the tax administrator, in	3730
accordance with divisions (C), (G), and (H) of this section,	3731
provided all of the following conditions are satisfied:	3732

(1) The taxpayer's request fully and accurately describes the	3733
specific facts or circumstances relevant to a determination of the	3734
taxability of the income, source of income, activity, or	3735
transaction, and, if an activity or transaction, all parties	3736
involved in the activity or transaction are clearly identified by	3737
name, location, or other pertinent facts.	3738

(2) The request relates to a tax imposed by the municipal	3739
corporation in accordance with this chapter.	3740

(3) The tax administrator's response is signed by the tax	3741
administrator and designated as an "opinion of the tax	3742
administrator."	3743

(C) An opinion of the tax administrator shall remain in	3744
effect and shall protect the taxpayer for whom the opinion was	3745
prepared and who reasonably relies on it from liability for any	3746
taxes, penalty, or interest otherwise chargeable on the activity	3747
or transaction specifically held by the tax administrator's	3748
opinion to be taxable in a particular manner or not to be subject	3749
to taxation for any taxable years that may be specified in the	3750
opinion, or until the earliest of the following dates:	3751

(1) The effective date of a written revocation by the tax	3752
administrator sent to the taxpayer by certified mail, return	3753
receipt requested. The effective date of the revocation shall be	3754
the taxpayer's date of receipt or one year after the issuance of	3755
the opinion, whichever is later;	3756

(2) The effective date of any amendment or enactment of a	3757
relevant section of the Revised Code, uncodified state law, or the	3758
municipal corporation's income tax ordinance that would	3759
substantially change the analysis and conclusion of the opinion of	3760
the tax administrator;	3761

(3) The date on which a court issues an opinion establishing	3762
or changing relevant case law with respect to the Revised Code,	3763
uncodified state law, or the municipal corporation's income tax	3764
ordinance;	3765

(4) If the opinion of the tax administrator was based on the	3766
interpretation of federal law, the effective date of any change in	3767
the relevant federal statutes or regulations, or the date on which	3768
a court issues an opinion establishing or changing relevant case	3769
law with respect to federal statutes or regulations;	3770

(5) The effective date of any change in the taxpayer's	3771
material facts or circumstances;	3772

(6) The effective date of the expiration of the opinion, if	3773
specified in the opinion.	3774

(D) A taxpayer is not relieved of tax liability for any	3775
activity or transaction related to a request for an opinion that	3776
contained any misrepresentation or omission of one or more	3777
material facts.	3778

(E) If a tax administrator provides written advice under this	3779
section, the opinion shall include a statement that:	3780

(1) The tax consequences stated in the opinion may be subject	3781
to change for any of the reasons stated in division (C) of this	3782
section;	3783

(2) It is the duty of the taxpayer to be aware of such	3784
changes.	3785

(F) A tax administrator may refuse to offer an opinion on any	3786
request received under this section.	3787

(G) This section binds a tax administrator only with respect	3788
to opinions of the tax administrator issued on or after January 1,	3789
2016.	3790

(H) An opinion of a tax administrator binds that tax	3791
administrator only with respect to the taxpayer for whom the	3792
opinion was prepared and does not bind the tax administrator of	3793
any other municipal corporation.	3794

(I) A tax administrator shall make available the text of all	3795
opinions issued under this section, except those opinions prepared	3796
for a taxpayer who has requested that the text of the opinion	3797
remain confidential. In no event shall the text of an opinion be	3798
made available until the tax administrator has removed all	3799
information that identifies the taxpayer and any other parties	3800
involved in the activity or transaction.	3801

(J) An opinion of the tax administrator issued under this	3802
section may not be appealed.	3803

Sec. 718.39. If the municipal corporation imposing a tax in	3804
accordance with this chapter has a population greater than thirty	3805
thousand according to the most recent decennial census or if the	3806
tax administrator charged with the administration of the tax is	3807
described in either division (U)(2) or (3) of section 718.01 of	3808
the Revised Code, all of the tax administrator's written	3809
correspondence to a taxpayer or other person shall include the	3810
name and contact information of an individual designated to	3811
receive inquiries regarding the correspondence. The individual may	3812
be the tax administrator or an employee of the tax administrator.	3813

Sec. 718.41.  (A) A taxpayer shall file an amended return	3814
with the tax administrator in such form as the tax administrator	3815
requires if any of the facts, figures, computations, or	3816
attachments required in the taxpayer's annual return to determine	3817
the tax due levied by the municipal corporation in accordance with	3818
this chapter must be altered as the result of an adjustment to the	3819
taxpayer's federal income tax return, whether initiated by the	3820
taxpayer or the internal revenue service, and such alteration	3821
affects the taxpayer's tax liability under this chapter. If a	3822
taxpayer intends to file an amended consolidated municipal income	3823
tax return, or to amend its type of return from a separate return	3824
to a consolidated return, based on the taxpayer's consolidated	3825
federal income tax return, the taxpayer shall notify the tax	3826
administrator before filing the amended return.	3827

(B)(1) In the case of an underpayment, the amended return	3828
shall be accompanied by payment of any combined additional tax due	3829
together with any penalty and interest thereon. If the combined	3830
tax shown to be due is ten dollars or less, such amount need not	3831
accompany the amended return. Except as provided under division	3832
(B)(2) of this section, the amended return shall not reopen those	3833
facts, figures, computations, or attachments from a previously	3834
filed return that are not affected, either directly or indirectly,	3835
by the adjustment to the taxpayer's federal or state income tax	3836
return unless the applicable statute of limitations for civil	3837
actions or prosecutions under section 718.12 of the Revised Code	3838
has not expired for a previously filed return.	3839

(2) The additional tax to be paid shall not exceed the amount	3840
of tax that would be due if all facts, figures, computations, and	3841
attachments were reopened.	3842

(C)(1) In the case of an overpayment, a request for refund	3843
may be filed under this division within the period prescribed by	3844
division (E) of section 718.12 of the Revised Code for filing the	3845
amended return even if it is filed beyond the period prescribed in	3846
that division if it otherwise conforms to the requirements of that	3847
division. If the amount of the refund is ten dollars or less, no	3848
refund need be paid by the municipal corporation to the taxpayer.	3849
Except as set forth in division (C)(2) of this section, a request	3850
filed under this division shall claim refund of overpayments	3851
resulting from alterations to only those facts, figures,	3852
computations, or attachments required in the taxpayer's annual	3853
return that are affected, either directly or indirectly, by the	3854
adjustment to the taxpayer's federal or state income tax return	3855
unless it is also filed within the time prescribed in section	3856
718.19 of the Revised Code. Except as set forth in division (C)(2)	3857
of this section, the request shall not reopen those facts,	3858
figures, computations, or attachments that are not affected,	3859
either directly or indirectly, by the adjustment to the taxpayer's	3860
federal or state income tax return.	3861

(2) The amount to be refunded shall not exceed the amount of	3862
refund that would be due if all facts, figures, computations, and	3863
attachments were reopened.	3864

Sec. 718.04.        Sec. 718.50.  (A) No municipal corporation other than	3865
the municipal corporation of residence shall levy a tax on the	3866
income of any member or employee of the Ohio general assembly	3867
including the lieutenant governor which income is received as a	3868
result of services rendered as such member or employee and is paid	3869
from appropriated funds of this state.	3870

(B) No municipal corporation other than the municipal	3871
corporation of residence and the city of Columbus shall levy a tax	3872
on the income of the chief justice or a justice of the supreme	3873
court received as a result of services rendered as the chief	3874
justice or justice. No municipal corporation other than the	3875
municipal corporation of residence shall levy a tax on the income	3876
of a judge sitting by assignment of the chief justice or on the	3877
income of a district court of appeals judge sitting in multiple	3878
locations within the district, received as a result of services	3879
rendered as a judge.	3880

Sec. 718.99.  (A) Except as provided in division (B) of this	3881
section, whoever violates section 718.35 of the Revised Code,	3882
division (A) of section 718.13 of the Revised Code, or section	3883
718.03 of the Revised Code by failing to remit municipal income	3884
taxes deducted and withheld from an employee, shall be guilty of a	3885
misdemeanor of the first degree and shall be subject to a fine of	3886
not more than one thousand dollars or imprisonment for a term of	3887
up to six months, or both, unless the violation is punishable by a	3888
municipal ordinance or resolution imposing a greater penalty or	3889
requiring dismissal from office or discharge from employment, or	3890
both, in which case the municipal ordinance or resolution shall	3891
govern.	3892

(B) Any person who discloses information received from the	3893
Internal Revenue Service in violation of division (A) of section	3894
718.13 of the Revised Code shall be guilty of a felony of the	3895
fifth degree and shall be subject to a fine of not more than five	3896
thousand dollars plus the costs of prosecution, or imprisonment	3897
for a term not exceeding five years, or both, unless the violation	3898
is punishable by a municipal ordinance imposing a greater penalty	3899
or requiring dismissal from office or discharge from employment,	3900
or both, in which case the municipal ordinance shall govern.	3901

(C) Each instance of access or disclosure in violation of	3902
division (A) of section 718.13 of the Revised Code constitutes a	3903
separate offense.	3904

(D) Nothing in this chapter prohibits a municipal corporation	3905
from prosecuting offenses which are made punishable under a	3906
municipal ordinance or resolution levying an income tax and for	3907
which no other penalty is provided under this section.	3908

Sec. 5703.02.  There is hereby created the board of tax	3909
appeals, which shall exercise the following powers and perform the	3910
following duties:	3911

(A) Exercise the authority provided by law to hear and	3912
determine all appeals of questions of law and fact arising under	3913
the tax laws of this state in appeals from decisions, orders,	3914
determinations, or actions of any tax administrative agency	3915
established by the law of this state, including but not limited to	3916
appeals from:	3917

(1) Actions of county budget commissions;

3918

(2) Decisions of county boards of revision;

3919

(3) Actions of any assessing officer or other public official	3920
under the tax laws of this state;	3921

(4) Final determinations by the tax commissioner of any	3922
preliminary, amended, or final tax assessments, reassessments,	3923
valuations, determinations, findings, computations, or orders made	3924
by the tax commissioner;	3925

(5) Adoption and promulgation of rules of the tax	3926
commissioner.	3927

(B) Appoint a secretary of the board of tax appeals, who	3928
shall serve in the unclassified civil service at the pleasure of	3929
the board, and any other employees as are necessary in the	3930
exercise of the powers and the performance of the duties and	3931
functions that the board is by law authorized and required to	3932
exercise, and prescribe the duties of all employees, and to fix	3933
their compensation as provided by law;	3934

(C) Maintain a journal, which shall be open to public	3935
inspection and in which the secretary shall keep a record of all	3936
of the proceedings and the vote of each of its members upon every	3937
action taken by it;	3938

(D) Adopt and promulgate, in the manner provided by section	3939
5703.14 of the Revised Code, and enforce all rules relating to the	3940
procedure of the board in hearing appeals it has the authority or	3941
duty to hear, and to the procedure of officers or employees whom	3942
the board may appoint; provided that section 5703.13 of the	3943
Revised Code shall apply to and govern the procedure of the board.	3944
Such rules shall include, but need not be limited to, the	3945
following:	3946

(1) Rules governing the creation and implementation of a	3947
mediation program, including procedures for requesting, requiring	3948
participation in, objecting to, and conducting a mediation;	3949

(2) Rules requiring the tax commissioner, county boards of	3950
revision, and municipallocal boards of appealtax review created	3951
under section 718.11 of the Revised Code to electronically file	3952
any transcript required to be filed with the board of tax appeals,	3953
and instructions and procedures for the electronic filing of such	3954
transcripts.	3955

(3) Rules establishing procedures to control and manage	3956
appeals filed with the board. The procedures shall include, but	3957
not be limited to, the establishment of a case management schedule	3958
that shall include expected dates related to discovery deadlines,	3959
disclosure of evidence, pre-hearing motions, and the hearing, and	3960
other case management issues considered appropriate.	3961

Sec. 5703.059. (A) The tax commissioner may adopt rules	3962
requiring returns, including any accompanying schedule or	3963
statement, for any tax or fee administered by the commissioner to	3964
be filed electronically using the Ohio business gateway as defined	3965
in section 718.051718.01 of the Revised Code, filed	3966
telephonically using the system known as the Ohio telefile system,	3967
or filed by any other electronic means prescribed by the	3968
commissioner.	3969

(B) The commissioner may adopt rules requiring any payment of	3970
tax shown on such a return to be due to be made electronically in	3971
a manner approved by the commissioner.	3972

(C) A rule adopted under this section does not apply to	3973
returns or reports filed or payments made before the effective	3974
date of the rule. The commissioner shall publicize any new	3975
electronic filing requirement on the department's web site. The	3976
commissioner shall educate the public of the requirement through	3977
seminars, workshops, conferences, or other outreach activities.	3978

(D) Any person required to file returns and make payments	3979
electronically under rules adopted under this section may apply to	3980
the commissioner, on a form prescribed by the commissioner, to be	3981
excused from that requirement. For good cause shown, the	3982
commissioner may excuse the applicant from the requirement and	3983
permit the applicant to file the returns or reports or make the	3984
payments required under this section by nonelectronic means.	3985

Sec. 5703.57. (A) As used in this section, "Ohio business	3986
gateway" has the same meaning as in section 718.051718.01 of the	3987
Revised Code.	3988

(B) There is hereby created the Ohio business gateway	3989
steering committee to direct the continuing development of the	3990
Ohio business gateway and to oversee its operations. The committee	3991
shall provide general oversight regarding operation of the Ohio	3992
business gateway and shall recommend to the department of	3993
administrative services enhancements that will improve the Ohio	3994
business gateway. The committee shall consider all banking,	3995
technological, administrative, and other issues associated with	3996
the Ohio business gateway and shall make recommendations regarding	3997
the type of reporting forms or other tax documents to be filed	3998
through the Ohio business gateway.	3999

(C) The committee shall consist of:

4000

(1) The following members, appointed by the governor with the	4001
advice and consent of the senate:	4002

(a) Not more than four representatives of the business	4003
community;	4004

(b) Not more than one representativethree representatives of	4005
municipal tax administrators selected from a list of candidates	4006
provided by the Ohio municipal league; and	4007

(c) Not more than two tax practitioners.

4008

(2) The following ex officio members:

4009

(a) The director or other highest officer of each state	4010
agency that has tax reporting forms or other tax documents filed	4011
with it through the Ohio business gateway or the director's	4012
designee;	4013

(b) The secretary of state or the secretary of state's	4014
designee;	4015

(c) The treasurer of state or the treasurer of state's	4016
designee;	4017

(d) The director of budget and management or the director's	4018
designee;	4019

(e) The state chief information officer or the officer's	4020
designee;	4021

(f) The tax commissioner or the tax commissioner's designee;	4022
and	4023

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

4024

An appointed member shall serve until the member resigns or	4025
is removed by the governor. Vacancies shall be filled in the same	4026
manner as original appointments.	4027

(D) A vacancy on the committee does not impair the right of	4028
the other members to exercise all the functions of the committee.	4029
The presence of a majority of the members of the committee	4030
constitutes a quorum for the conduct of business of the committee.	4031
The concurrence of at least a majority of the members of the	4032
committee is necessary for any action to be taken by the	4033
committee. On request, each member of the committee shall be	4034
reimbursed for the actual and necessary expenses incurred in the	4035
discharge of the member's duties.	4036

(E) The committee is a part of the department of taxation for	4037
administrative purposes.	4038

(F) Each year, the governor shall select a member of the	4039
committee to serve as chairperson. The chairperson shall appoint	4040
an official or employee of the department of taxation to act as	4041
the committee's secretary. The secretary shall keep minutes of the	4042
committee's meetings and a journal of all meetings, proceedings,	4043
findings, and determinations of the committee.	4044

(G) The committee may hire professional, technical, and	4045
clerical staff needed to support its activities.	4046

(H) The committee shall meet as often as necessary to perform	4047
its duties.	4048

Sec. 5717.011.  (A) As used in this chapter, "tax	4049
administrator" has the same meaning as in section 718.01 of the	4050
Revised Code.	4051

(B) Appeals from a municipalfinal determination of a local	4052
board of appealtax review created under section 718.11 of the	4053
Revised Code may be taken by the taxpayer or the tax administrator	4054
to the board of tax appeals or may be taken by the taxpayer or the	4055
tax administrator to a court of common pleas as otherwise provided	4056
by law. If the taxpayer or the tax administrator elects to make an	4057
appeal to the board of tax appeals or court of common pleas, and	4058
subject to section 5703.021 of the Revised Code with respect to	4059
appeals assigned to the small claims docket, the appeal shall be	4060
taken by the filing of a notice of appeal with the board of tax	4061
appeals or court of common pleas, the municipallocal board of	4062
appealtax review, and the opposing party. The notice of appeal	4063
shall be filed within sixty days after the day the appellant	4064
receives notice of the decisionfinal determination issued under	4065
section 718.11 of the Revised Code. An appeal filed with a court	4066
of common pleas is governed by the Rules of Civil Procedure and	4067
other rules of practice and procedure applicable to civil actions.	4068
For an appeal filed with the board of tax appeals, the notice of	4069
appeal may be filed in person or by certified mail, express mail,	4070
facsimile transmission, electronic transmission, or by authorized	4071
delivery service as provided in section 5703.056 of the Revised	4072
Code. If the notice of appeal is filed by certified mail, express	4073
mail, or authorized delivery service as provided in section	4074
5703.056 of the Revised Code, the date of the United States	4075
postmark placed on the sender's receipt by the postal service or	4076
the date of receipt recorded by the authorized delivery service	4077
shall be treated as the date of filing with the board. If notice	4078
of appeal is filed by facsimile transmission or electronic	4079
transmission, the date and time the notice is received by the	4080
board shall be the date and time reflected on a timestamp provided	4081
by the board's electronic system, and the appeal shall be	4082
considered filed with the board on the date reflected on that	4083
timestamp. Any timestamp provided by another computer system or	4084
electronic submission device shall not affect the time and date	4085
the notice is received by the board. The notice of appeal shall	4086
have attached thereto and incorporated therein by reference a true	4087
copy of the decisionfinal determination issued under section	4088
718.11 of the Revised Code, but failure to attach a copy of such	4089
notice and incorporate it by reference in the notice of appeal	4090
does not invalidate the appeal.	4091

(C) A notice of appeal for an appeal filed with the board of	4092
tax appeals shall contain a short and plain statement of the	4093
claimed errors in the decisionfinal determination of the	4094
municipallocal board of appealtax review showing that the	4095
appellant is entitled to relief and a demand for the relief to	4096
which the appellant claims to be entitled. An appellant may amend	4097
the notice of appeal once as a matter of course within sixty days	4098
after the certification of the transcript. Otherwise, an appellant	4099
may amend the notice of appeal only after receiving leave of the	4100
board or the written consent of each adverse party. Leave of the	4101
board shall be freely given when justice so requires.	4102

(D) Upon the filing of a notice of appeal with the board of	4103
tax appeals, the municipallocal board of appealtax review shall	4104
certify to the board of tax appeals a transcript of the record of	4105
the proceedings before it, together with all evidence considered	4106
by it in connection therewith. Such appeals may be heard by the	4107
board at its office in Columbus or in the county where the	4108
appellant resides, or it may cause its examiners to conduct such	4109
hearings and to report to it their findings for affirmation or	4110
rejection. The board may order the appeal to be heard upon the	4111
record and the evidence certified to it by the tax administrator,	4112
but upon the application of any interested party the board shall	4113
order the hearing of additional evidence, and the board may make	4114
such investigation concerning the appeal as it considers proper.	4115
An appeal may proceed pursuant to section 5703.021 of the Revised	4116
Code on the small claims docket if the appeals qualifies under	4117
that section.	4118

(E) If an issue being appealed under this section is	4119
addressed in a municipal corporation's ordinance or regulation,	4120
the tax administrator, upon the request of the board of tax	4121
appeals, shall provide a copy of the ordinance or regulation to	4122
the board of tax appeals.	4123

Sec. 5717.03. (A) A decision of the board of tax appeals on	4124
an appeal filed with it pursuant to section 5717.01, 5717.011, or	4125
5717.02 of the Revised Code shall be entered of record on the	4126
journal together with the date when the order is filed with the	4127
secretary for journalization.	4128

(B) In case of an appeal from a decision of a county board of	4129
revision, the board of tax appeals shall determine the taxable	4130
value of the property whose valuation or assessment by the county	4131
board of revision is complained of, or in the event the complaint	4132
and appeal is against a discriminatory valuation, shall determine	4133
a valuation which shall correct such discrimination, and shall	4134
determine the liability of the property for taxation, if that	4135
question is in issue, and the board of tax appeals' decision and	4136
the date when it was filed with the secretary for journalization	4137
shall be sent by the board to all persons who were parties to the	4138
appeal before the board, to the person in whose name the property	4139
is listed, or sought to be listed, if such person is not a party	4140
to the appeal, to the county auditor of the county in which the	4141
property involved in the appeal is located, and to the tax	4142
commissioner.	4143

In correcting a discriminatory valuation, the board of tax	4144
appeals shall increase or decrease the value of the property whose	4145
valuation or assessment by the county board of revision is	4146
complained of by a per cent or amount which will cause such	4147
property to be listed and valued for taxation by an equal and	4148
uniform rule.	4149

(C) In the case of an appeal from a review, redetermination,	4150
or correction of a tax assessment, valuation, determination,	4151
finding, computation, or order of the tax commissioner, the order	4152
of the board of tax appeals and the date of the entry thereof upon	4153
its journal shall be sent by the board to all persons who were	4154
parties to the appeal before the board, the person in whose name	4155
the property is listed or sought to be listed, if the decision	4156
determines the valuation or liability of property for taxation and	4157
if such person is not a party to the appeal, the taxpayer or other	4158
person to whom notice of the tax assessment, valuation,	4159
determination, finding, computation, or order, or correction or	4160
redetermination thereof, by the tax commissioner was by law	4161
required to be given, the director of budget and management, if	4162
the revenues affected by such decision would accrue primarily to	4163
the state treasury, and the county auditors of the counties to the	4164
undivided general tax funds of which the revenues affected by such	4165
decision would primarily accrue.	4166

(D) In the case of an appeal from a municipalfinal	4167
determination of a local board of appealtax review created under	4168
section 718.11 of the Revised Code, the order of the board of tax	4169
appeals and the date of the entry thereof upon the board's journal	4170
shall be sent by the board to all persons who were parties to the	4171
appeal before the board.	4172

(E) In the case of all other appeals or applications filed	4173
with and determined by the board, the board's order and the date	4174
when the order was filed by the secretary for journalization shall	4175
be sent by the board to the person who is a party to such appeal	4176
or application, to such persons as the law requires, and to such	4177
other persons as the board deems proper.	4178

(F) The orders of the board may affirm, reverse, vacate,	4179
modify, or remand the tax assessments, valuations, determinations,	4180
findings, computations, or orders complained of in the appeals	4181
determined by the board, and the board's decision shall become	4182
final and conclusive for the current year unless reversed,	4183
vacated, or modified as provided in section 5717.04 of the Revised	4184
Code. When an order of the board becomes final the tax	4185
commissioner and all officers to whom such decision has been sent	4186
shall make the changes in their tax lists or other records which	4187
the decision requires.	4188

(G) If the board finds that issues not raised on the appeal	4189
are important to a determination of a controversy, the board may	4190
remand the cause for an administrative determination and the	4191
issuance of a new tax assessment, valuation, determination,	4192
finding, computation, or order, unless the parties stipulate to	4193
the determination of such other issues without remand. An order	4194
remanding the cause is a final order. If the order relates to any	4195
issue other than a municipal income tax matter appealed under	4196
sections 718.11 and 5717.011 of the Revised Code, the order may be	4197
appealed to the court of appeals in Franklin county. If the order	4198
relates to a municipal income tax matter appealed under sections	4199
718.11 and 5717.011 of the Revised Code, the order may be appealed	4200
to the court of appeals for the county in which the municipal	4201
corporation in which the dispute arose is primarily situated.	4202

(H) At the request of any person that filed an appeal subject	4203
to this section, the decision or order of the board of tax appeals	4204
issued pursuant to division (B), (C), (D), or (E) of this section	4205
shall be sent by certified mail at the requestor's expense.	4206

Sec. 5726.03. (A)(1) Annually, on or before the fifteenth day	4207
of October, the reporting person for each taxpayer shall make a	4208
report in writing to the tax commissioner, in such form as the	4209
commissioner prescribes, and shall remit to the commissioner the	4210
amount of tax shown to be due on the report. The remittance shall	4211
be made payable to the treasurer of state. The commissioner shall	4212
make available, on the official internet web site of the	4213
department of taxation, copies of the forms prescribed by the	4214
commissioner for the purpose of making the annual report.	4215

(2) An annual report shall be signed by the president,	4216
vice-president, secretary, treasurer, general manager,	4217
superintendent, or managing agent in this state of the reporting	4218
person.	4219

(3) An annual report shall contain the facts, figures,	4220
computations, and attachments that result in the determination of	4221
the amount of tax due from a taxpayer under this chapter.	4222

(B)(1) In the case of a financial institution described in	4223
division (H)(1) of section 5726.01 of the Revised Code, the annual	4224
report filed for a taxable year shall list, and include	4225
information related to, each person includable in an FR Y-9 filed	4226
by the reporting person for that taxable year.	4227

(2) In the case of a financial institution described in	4228
division (H)(2) or (3) of section 5726.01 of the Revised Code, the	4229
annual report for a taxable year shall list, and include	4230
information related to, each person includable in a call report	4231
filed by the reporting person for that taxable year.	4232

(C)(1) The reporting person for a taxpayer shall remit each	4233
tax payment and, if required by the commissioner, file each annual	4234
or estimated tax report electronically. The commissioner may	4235
require reporting persons to use the Ohio business gateway as	4236
defined in section 718.051718.01 of the Revised Code to file	4237
reports and remit the tax, or may provide another means for	4238
reporting persons to file and remit the tax electronically.	4239

(2) The payment of taxes as provided in division (C) of this	4240
section shall not affect a taxpayer's obligation to file an annual	4241
report required under division (A) of this section.	4242

(3) The reporting person for a taxpayer that is required to	4243
remit tax payments electronically under this section may apply to	4244
the tax commissioner, in the manner prescribed by the	4245
commissioner, to be excused from that requirement. The	4246
commissioner may excuse the taxpayer from the requirements of	4247
division (C) of this section for good cause.	4248

(4) If the reporting person for a taxpayer that is required	4249
to remit tax payments or file reports electronically under this	4250
section fails to do so, the commissioner may impose a penalty not	4251
to exceed the following:	4252

(a) For either of the first two reports the person so fails,	4253
five per cent of the amount of the payment that was required to be	4254
remitted;	4255

(b) For the third and any subsequent reports the person so	4256
fails, ten per cent of the amount of the payment that was required	4257
to be remitted.	4258

The penalty imposed under this section is in addition to any	4259
other penalty or charge imposed under this chapter and shall be	4260
considered as revenue arising from the tax levied under this	4261
chapter. A penalty may be collected by assessment in the manner	4262
prescribed by section 5726.20 of the Revised Code. The tax	4263
commissioner may abate all or a portion of such a penalty and may	4264
adopt rules governing such abatements.	4265

Sec. 5736.04.  (A) Not later than the tenth day of the second	4266
month after the end of each calendar quarter, every taxpayer shall	4267
file with the tax commissioner a tax return in such form as the	4268
commissioner prescribes. The return shall include, but is not	4269
limited to, the amount of the taxpayer's calculated gross receipts	4270
for the calendar quarter and shall indicate the amount of tax due	4271
under section 5736.02 of the Revised Code for the calendar	4272
quarter. The taxpayer shall indicate on each return the portion of	4273
the taxpayer's gross receipts attributable to motor fuel used for	4274
propelling vehicles on public highways and waterways and the	4275
portion of such receipts attributable to motor fuel used for other	4276
purposes. For this purpose, the sale of gasoline and of diesel	4277
fuel that is not dyed diesel fuel shall be rebuttably presumed to	4278
be distributed or sold for use or used to propel vehicles on	4279
public highways or waterways. All other sales of motor fuel shall	4280
be rebuttably presumed not to be distributed or sold for use or	4281
used to propel vehicles on public highways or waterways.	4282

(B)(1) The taxpayer shall remit the tax shown to be due on	4283
the return, and, if required by the tax commissioner, file the	4284
return, electronically. The commissioner may require taxpayers to	4285
use the Ohio business gateway as defined in section 718.051718.01	4286
of the Revised Code to file return returns and remit the tax, or	4287
may provide another means for taxpayers to file and remit the tax	4288
electronically.	4289

(2) A person required by this section to remit taxes or file	4290
returns electronically may apply to the commissioner, on the form	4291
prescribed by the commissioner, to be excused from that	4292
requirement. The commissioner may excuse a person from such	4293
requirement for good cause.	4294

(C) The tax rate with respect to calculated gross receipts	4295
for a calendar quarter is not fixed until the end of the	4296
measurement period for each calendar quarter. The total amount of	4297
calculated gross receipts reported for a given calendar quarter	4298
shall be subject to the tax rate in effect in that quarter.	4299

Sec. 5739.12. (A)(1) Each person who has or is required to	4300
have a vendor's license, on or before the twenty-third day of each	4301
month, shall make and file a return for the preceding month in the	4302
form prescribed by the tax commissioner, and shall pay the tax	4303
shown on the return to be due. The return shall be filed	4304
electronically using the Ohio business gateway, as defined in	4305
section 718.051718.01 of the Revised Code, the Ohio telefile	4306
system, or any other electronic means prescribed by the	4307
commissioner. Payment of the tax shown on the return to be due	4308
shall be made electronically in a manner approved by the	4309
commissioner. The commissioner may require a vendor that operates	4310
from multiple locations or has multiple vendor's licenses to	4311
report all tax liabilities on one consolidated return. The return	4312
shall show the amount of tax due from the vendor to the state for	4313
the period covered by the return and such other information as the	4314
commissioner deems necessary for the proper administration of this	4315
chapter. The commissioner may extend the time for making and	4316
filing returns and paying the tax, and may require that the return	4317
for the last month of any annual or semiannual period, as	4318
determined by the commissioner, be a reconciliation return	4319
detailing the vendor's sales activity for the preceding annual or	4320
semiannual period. The reconciliation return shall be filed by the	4321
last day of the month following the last month of the annual or	4322
semiannual period. The commissioner may remit all or any part of	4323
amounts or penalties that may become due under this chapter and	4324
may adopt rules relating thereto. Such return shall be filed	4325
electronically as directed by the tax commissioner, and payment of	4326
the amount of tax shown to be due thereon, after deduction of any	4327
discount provided for under this section, shall be made	4328
electronically in a manner approved by the tax commissioner.	4329

(2) Any person required to file returns and make payments	4330
electronically under division (A)(1) of this section may apply to	4331
the tax commissioner on a form prescribed by the commissioner to	4332
be excused from that requirement. For good cause shown, the	4333
commissioner may excuse the person from that requirement and may	4334
permit the person to file the returns and make the payments	4335
required by this section by nonelectronic means.	4336

(B)(1) If the return is filed and the amount of tax shown	4337
thereon to be due is paid on or before the date such return is	4338
required to be filed, the vendor shall be entitled to a discount	4339
of three-fourths of one per cent of the amount shown to be due on	4340
the return.	4341

(2) A vendor that has selected a certified service provider	4342
as its agent shall not be entitled to the discount if the	4343
certified service provider receives a monetary allowance pursuant	4344
to section 5739.06 of the Revised Code for performing the vendor's	4345
sales and use tax functions in this state. Amounts paid to the	4346
clerk of courts pursuant to section 4505.06 of the Revised Code	4347
shall be subject to the applicable discount. The discount shall be	4348
in consideration for prompt payment to the clerk of courts and for	4349
other services performed by the vendor in the collection of the	4350
tax.	4351

(C)(1) Upon application to the tax commissioner, a vendor who	4352
is required to file monthly returns may be relieved of the	4353
requirement to report and pay the actual tax due, provided that	4354
the vendor agrees to remit to the commissioner payment of not less	4355
than an amount determined by the commissioner to be the average	4356
monthly tax liability of the vendor, based upon a review of the	4357
returns or other information pertaining to such vendor for a	4358
period of not less than six months nor more than two years	4359
immediately preceding the filing of the application. Vendors who	4360
agree to the above conditions shall make and file an annual or	4361
semiannual reconciliation return, as prescribed by the	4362
commissioner. The reconciliation return shall be filed	4363
electronically as directed by the tax commissioner, and payment of	4364
the amount of tax shown to be due thereon, after deduction of any	4365
discount provided in this section, shall be made electronically in	4366
a manner approved by the commissioner. Failure of a vendor to	4367
comply with any of the above conditions may result in immediate	4368
reinstatement of the requirement of reporting and paying the	4369
actual tax liability on each monthly return, and the commissioner	4370
may at the commissioner's discretion deny the vendor the right to	4371
report and pay based upon the average monthly liability for a	4372
period not to exceed two years. The amount ascertained by the	4373
commissioner to be the average monthly tax liability of a vendor	4374
may be adjusted, based upon a review of the returns or other	4375
information pertaining to the vendor for a period of not less than	4376
six months nor more than two years preceding such adjustment.	4377

(2) The commissioner may authorize vendors whose tax	4378
liability is not such as to merit monthly returns, as ascertained	4379
by the commissioner upon the basis of administrative costs to the	4380
state, to make and file returns at less frequent intervals. When	4381
returns are filed at less frequent intervals in accordance with	4382
such authorization, the vendor shall be allowed the discount	4383
provided in this section in consideration for prompt payment with	4384
the return, provided the return is filed and payment is made of	4385
the amount of tax shown to be due thereon, at the time specified	4386
by the commissioner, but a vendor that has selected a certified	4387
service provider as its agent shall not be entitled to the	4388
discount.	4389

(D) Any vendor who fails to file a return or to pay the full	4390
amount of the tax shown on the return to be due in the manner	4391
prescribed under this section and the rules of the commissioner	4392
may, for each such return, be required to forfeit and pay into the	4393
state treasury an additional charge not exceeding fifty dollars or	4394
ten per cent of the tax required to be paid for the reporting	4395
period, whichever is greater, as revenue arising from the tax	4396
imposed by this chapter, and such sum may be collected by	4397
assessment in the manner provided in section 5739.13 of the	4398
Revised Code. The commissioner may remit all or a portion of the	4399
additional charge and may adopt rules relating to the imposition	4400
and remission of the additional charge.	4401

(E) If the amount required to be collected by a vendor from	4402
consumers is in excess of the applicable percentage of the	4403
vendor's receipts from sales that are taxable under section	4404
5739.02 of the Revised Code, or in the case of sales subject to a	4405
tax levied pursuant to section 5739.021, 5739.023, or 5739.026 of	4406
the Revised Code, in excess of the percentage equal to the	4407
aggregate rate of such taxes and the tax levied by section 5739.02	4408
of the Revised Code, such excess shall be remitted along with the	4409
remittance of the amount of tax due under section 5739.10 of the	4410
Revised Code.	4411

(F) The commissioner, if the commissioner deems it necessary	4412
in order to insure the payment of the tax imposed by this chapter,	4413
may require returns and payments to be made for other than monthly	4414
periods.	4415

(G) Any vendor required to file a return and pay the tax	4416
under this section whose total payment for a year equals or	4417
exceeds the amount shown in division (A) of section 5739.122 of	4418
the Revised Code is subject to the accelerated tax payment	4419
requirements in divisions (B) and (C) of that section. For a	4420
vendor that operates from multiple locations or has multiple	4421
vendor's licenses, in determining whether the vendor's total	4422
payment equals or exceeds the amount shown in division (A) of that	4423
section, the vendor's total payment amount shall be the amount of	4424
the vendor's total tax liability for the previous calendar year	4425
for all of the vendor's locations or licenses.	4426

Sec. 5739.124.  (A) If required by the tax commissioner, a	4427
permit holder required to make payments under section 5739.032 of	4428
the Revised Code shall file all returns and reports	4429
electronically. The commissioner may require the permit holder to	4430
use the Ohio business gateway, as defined in section 718.051	4431
718.01 of the Revised Code, or any other electronic means approved	4432
by the commissioner, to file the returns and reports, or to remit	4433
the tax, in lieu of the manner prescribed under section 5739.032	4434
of the Revised Code.	4435

(B) A person required under this section to file reports and	4436
returns electronically may apply to the tax commissioner to be	4437
excused from that requirement. Applications shall be made on a	4438
form prescribed by the commissioner. The commissioner may approve	4439
the application for good cause.	4440

(C)(1) If a person required to file a report or return	4441
electronically under this section fails to do so, the tax	4442
commissioner may impose an additional charge not to exceed the	4443
following:	4444

(a) For each of the first two failures, five per cent of the	4445
amount required to be reported on the report or return;	4446

(b) For the third and any subsequent failure, ten per cent of	4447
the amount required to be reported on the report or return.	4448

(2) The charges authorized under division (C)(1) of this	4449
section are in addition to any other charge or penalty authorized	4450
under this chapter, and shall be considered as revenue arising	4451
from taxes imposed under this chapter. An additional charge may be	4452
collected by assessment in the manner prescribed by section	4453
5739.13 of the Revised Code. The commissioner may waive all or a	4454
portion of such a charge and may adopt rules governing such	4455
waiver.	4456

Sec. 5741.122.  (A) If required by the tax commissioner, a	4457
person required to make payments under section 5741.121 of the	4458
Revised Code shall file all returns and reports electronically.	4459
The commissioner may require the person to use the Ohio business	4460
gateway, as defined in section 718.051718.01 of the Revised Code,	4461
or any other electronic means approved by the commissioner, to	4462
file the returns and reports, or to remit the tax, in lieu of the	4463
manner prescribed under section 5741.121 of the Revised Code.	4464

(B) A person required under this section to file reports and	4465
returns electronically may apply to the tax commissioner to be	4466
excused from that requirement. Applications shall be made on a	4467
form prescribed by the commissioner. The commissioner may approve	4468
the application for good cause.	4469

(C)(1) If a person required to file a report or return	4470
electronically under this section fails to do so, the tax	4471
commissioner may impose an additional charge not to exceed the	4472
following:	4473

(a) For each of the first two failures, five per cent of the	4474
amount required to be reported on the report or return;	4475

(b) For the third and any subsequent failure, ten per cent of	4476
the amount required to be reported on the report or return.	4477

(2) The charges authorized under division (C)(1) of this	4478
section are in addition to any other charge or penalty authorized	4479
under this chapter, and shall be considered as revenue arising	4480
from taxes imposed under this chapter. An additional charge may be	4481
collected by assessment in the manner prescribed by section	4482
5741.13 of the Revised Code. The commissioner may waive all or a	4483
portion of such a charge and may adopt rules governing such	4484
waiver.	4485

Sec. 5747.063. The requirements imposed under this section	4486
are in addition to the municipal income tax withholding	4487
requirements under section 718.031 of the Revised Code.	4488

(A)(1) If a person's winnings at a casino facility are an	4489
amount for which reporting to the internal revenue service of the	4490
amount is required by section 6041 of the Internal Revenue Code,	4491
as amended, the casino operator shall deduct and withhold Ohio	4492
income tax from the person's winnings at a rate of four per cent	4493
of the amount won and shall deduct and withhold municipal income	4494
tax from the person's winnings at the rate of tax of the municipal	4495
corporation in which the casino facility is located. A person's	4496
amount of winnings shall be determined each time the person	4497
exchanges amounts won in tokens, chips, casino credit, or other	4498
prepaid representations of value for cash or a cash equivalent.	4499
The casino operator shall issue, to a person from whose winnings	4500
an amount has been deducted and withheld, a receipt for the amount	4501
deducted and withheld, and also shall obtain from the person	4502
additional information that will be necessary for the casino	4503
operator to prepare the returns required by this section.	4504

(2) If a person's winnings at a casino facility require	4505
reporting to the internal revenue service under division (A)(1) of	4506
this section, the casino operator also shall require the person to	4507
state in writing, under penalty of falsification, whether the	4508
person is in default under a support order.	4509

(B) Amounts deducted and withheld by a casino operator are	4510
held in trust for the benefit of the state and municipal	4511
corporations, as applicable.	4512

(1) On or before the tenth day of each month, the casino	4513
operator shall file a return electronically with the tax	4514
commissioner and the tax administrator of the municipal	4515
corporation, as applicable, identifying the persons from whose	4516
winnings amounts were deducted and withheld, the amount of each	4517
such deduction and withholding during the preceding calendar	4518
month, the amount of the winnings from which each such amount was	4519
withheld, the type of casino gaming that resulted in such	4520
winnings, and any other information required by the tax	4521
commissioner. With the return, the casino operator shall remit	4522
electronically to the commissioner and the tax administrator of	4523
the municipal corporation, as applicable, all the amounts deducted	4524
and withheld during the preceding month.	4525

(2)(a) A casino operator shall maintain a record of each	4526
written statement provided under division (A)(2) of this section	4527
in which a person admits to being in default under a support	4528
order. The casino operator shall make these records available to	4529
the director of job and family services upon request.	4530

(b) A casino operator shall maintain copies of receipts	4531
issued under division (A)(1) of this section and of written	4532
statements provided under division (A)(2) of this section and	4533
shall make these copies available to the tax commissioner upon	4534
request.	4535

(c) A casino operator shall maintain the information	4536
described in divisions (B)(2)(a) and (b) of this section in	4537
accordance with section 5747.17 of the Revised Code and any rules	4538
adopted pursuant thereto.	4539

(3) Annually, on or before the thirty-first day of January, a	4540
casino operator shall file an annual return electronically with	4541
the tax commissioner and the tax administrator of the municipal	4542
corporation, as applicable, indicating the total amount deducted	4543
and withheld during the preceding calendar year. The casino	4544
operator shall remit electronically with the annual return any	4545
amount that was deducted and withheld and that was not previously	4546
remitted. If the identity of a person and the amount deducted and	4547
withheld with respect to that person were omitted on a monthly	4548
return, that information shall be indicated on the annual return.	4549

(4)(a) A casino operator who fails to file a return and remit	4550
the amounts deducted and withheld is personally liable for the	4551
amount deducted and withheld and not remitted. The commissioner	4552
and the tax administrator of the municipal corporation, as	4553
applicable, may impose a penalty up to one thousand dollars if a	4554
return is filed late, if amounts deducted and withheld are	4555
remitted late, if a return is not filed, or if amounts deducted	4556
and withheld are not remitted. Interest accrues on past due	4557
amounts deducted and withheld at the rate prescribed in section	4558
5703.47 of the Revised Code. The commissioner and the tax	4559
administrator of the municipal corporation, as applicable, may	4560
collect past due amounts deducted and withheld and penalties and	4561
interest thereon by assessment under section 5747.13 of the	4562
Revised Code as if they were income taxes collected by an	4563
employer.	4564

(b) If a casino operator sells the casino facility or	4565
otherwise quits the casino business, the amounts deducted and	4566
withheld and any penalties and interest thereon are immediately	4567
due and payable. The successor shall withhold an amount of the	4568
purchase money that is sufficient to cover the amounts deducted	4569
and withheld and penalties and interest thereon until the	4570
predecessor casino operator produces either a receipt from the	4571
commissioner and the tax administrator of the municipal	4572
corporation, as applicable, showing that the amounts deducted and	4573
withheld and penalties and interest thereon have been paid or a	4574
certificate from the commissioner and the tax administrator of the	4575
municipal corporation, as applicable, indicating that no amounts	4576
deducted and withheld or penalties and interest thereon are due.	4577
If the successor fails to withhold purchase money, the successor	4578
is personally liable for payment of the amounts deducted and	4579
withheld and penalties and interest thereon, up to the amount of	4580
the purchase money.	4581

(C)(1) Annually, on or before the thirty-first day of	4582
January, a casino operator shall issue an information return to	4583
each person with respect to whom an amount has been deducted and	4584
withheld during the preceding calendar year. The information	4585
return shall show the total amount deducted from the person's	4586
winnings by the casino operator during the preceding calendar	4587
year.	4588

(2) Annually, on or before the thirty-first day of January, a	4589
casino operator shall provide to the commissioner a copy of each	4590
information return issued under division (C)(1) of this section	4591
for the preceding calendar year. The commissioner may require that	4592
the copies be transmitted electronically.	4593

(D) Amounts deducted and withheld shall be allowed as a	4594
credit against payment of the tax imposed by section 5747.02 of	4595
the Revised Code and shall be treated as taxes paid for purposes	4596
of section 5747.09 of the Revised Code. This division applies only	4597
to the person for whom the amount is deducted and withheld.	4598

(E) The failure of a casino operator to deduct and withhold	4599
the required amount from a person's winnings does not relieve the	4600
person from liability for the tax imposed by section 5747.02 of	4601
the Revised Code with respect to those winnings. And compliance	4602
with this section does not relieve a casino operator or a person	4603
who has winnings at a casino facility from compliance with	4604
relevant provisions of federal tax laws.	4605

(F) The commissioner and the tax administrator of the	4606
municipal corporation, as applicable, shall prescribe the form of	4607
the receipt and returns required by this section. The director of	4608
job and family services shall prescribe the form of the statement	4609
required by this section.	4610

(G) The commissioner may adopt rules that are necessary to	4611
administer this section.	4612

Sec. 5747.064. The requirements imposed under this section	4613
are in addition to the municipal income tax withholding	4614
requirements under section 718.031 of the Revised Code.	4615

(A) As used in this section, "video lottery terminal" has the	4616
same meaning as in section 3770.21 of the Revised Code.	4617

(B) If a person's prize award from a video lottery terminal	4618
is an amount for which reporting to the internal revenue service	4619
of the amount is required by section 6041 of the Internal Revenue	4620
Code, as amended, the lottery sales agent shall deduct and	4621
withhold Ohio income tax from the person's prize award at a rate	4622
of four per cent of the amount won and shall deduct and withhold	4623
municipal income tax from the person's winnings at the rate of tax	4624
of the municipal corporation in which the video lottery terminal	4625
facility is located. The lottery sales agent shall issue, to a	4626
person from whose prize award an amount has been deducted or	4627
withheld, a receipt for the amount deducted and withheld, and also	4628
shall obtain from the person additional information that will be	4629
necessary for the lottery sales agent to prepare the returns	4630
required by this section.	4631

(C) Amounts deducted and withheld by a lottery sales agent	4632
are held in trust for the benefit of the state and municipal	4633
corporations, as applicable.	4634

(1) On or before the tenth day of each month, the lottery	4635
sales agent shall file a return electronically with the tax	4636
commissioner and the tax administrator of the municipal	4637
corporation, as applicable, identifying the persons from whose	4638
prize awards amounts were deducted and withheld, the amount of	4639
each such deduction and withholding during the preceding month,	4640
the amount of the prize award from which each such amount was	4641
withheld, and any other information required by the commissioner	4642
and the tax administrator of the municipal corporation, as	4643
applicable. With the return, the lottery sales agent shall remit	4644
electronically to the commissioner and the tax administrator of	4645
the municipal corporation, as applicable, all the amounts deducted	4646
and withheld during the preceding month.	4647

(2) A lottery sales agent shall maintain a record of all	4648
receipts issued under division (B) of this section and shall make	4649
those records available to the commissioner and the tax	4650
administrator of the municipal corporation, as applicable, upon	4651
request. Such records shall be maintained in accordance with	4652
section 5747.17 of the Revised Code and any rules adopted pursuant	4653
thereto.	4654

(3) Annually, on or before the thirty-first day of January, a	4655
lottery sales agent shall file an annual return electronically	4656
with the tax commissioner and the tax administrator of the	4657
municipal corporation, as applicable, indicating the total amount	4658
deducted and withheld during the preceding calendar year. The	4659
lottery sales agent shall remit electronically with the annual	4660
return any amount that was deducted and withheld and that was not	4661
previously remitted. If the identity of a person and the amount	4662
deducted and withheld with respect to that person were omitted on	4663
a monthly return, that information shall be indicated on the	4664
annual return.	4665

(4)(a) A lottery sales agent who fails to file a return and	4666
remit the amounts deducted and withheld is personally liable for	4667
the amount deducted and withheld and not remitted. The	4668
commissioner and the tax administrator of the municipal	4669
corporation, as applicable, may impose a penalty of up to one	4670
thousand dollars if a return is filed late, if amounts deducted	4671
and withheld are remitted late, if a return is not filed, or if	4672
amounts deducted and withheld are not remitted. Interest accrues	4673
on past due amounts deducted and withheld at the rate prescribed	4674
in section 5703.47 of the Revised Code. The commissioner and the	4675
tax administrator of the municipal corporation, as applicable, may	4676
collect past due amounts deducted and withheld and penalties and	4677
interest thereon by assessment under section 5747.13 of the	4678
Revised Code as if they were income taxes collected by an	4679
employer.	4680

(b) If a lottery sales agent ceases to operate video lottery	4681
terminals, the amounts deducted and withheld and any penalties and	4682
interest thereon are immediately due and payable. A successor of	4683
the lottery sales agent that purchases the video lottery terminals	4684
from the agent shall withhold an amount of the purchase money that	4685
is sufficient to cover the amounts deducted and withheld and	4686
penalties and interest thereon until the predecessor lottery sales	4687
agent produces either a receipt from the tax commissioner and the	4688
tax administrator of the municipal corporation, as applicable,	4689
showing that the amounts deducted and withheld and penalties and	4690
interest thereon have been paid or a certificate from the	4691
commissioner and the tax administrator of the municipal	4692
corporation, as applicable, indicating that no amounts deducted	4693
and withheld or penalties and interest thereon are due. If the	4694
successor fails to withhold purchase money, the successor is	4695
personally liable for payment of the amounts deducted and withheld	4696
and penalties and interest thereon, up to the amount of the	4697
purchase money.	4698

(D)(1) Annually, on or before the thirty-first day of	4699
January, a lottery sales agent shall issue an information return	4700
to each person with respect to whom an amount has been deducted	4701
and withheld during the preceding calendar year. The information	4702
return shall show the total amount deducted from the person's	4703
prize award by the lottery sales agent during the preceding year.	4704

(2) Annually, on or before the thirty-first day of January, a	4705
lottery sales agent shall provide to the tax commissioner and the	4706
tax administrator of the municipal corporation, as applicable, a	4707
copy of each information return issued under division (D)(1) of	4708
this section for the preceding calendar year. The commissioner and	4709
the tax administrator of the municipal corporation, as applicable,	4710
may require that such copies be transmitted electronically.	4711

(E) Amounts deducted and withheld shall be allowed as a	4712
credit against payment of the tax imposed by section 5747.02 of	4713
the Revised Code and shall be treated as taxes paid for purposes	4714
of section 5747.09 of the Revised Code. This division applies only	4715
to the person for whom the amount is deducted and withheld.	4716

(F) The failure of a lottery sales agent to deduct and	4717
withhold the required amount from a person's prize award does not	4718
relieve the person from liability for the tax imposed by section	4719
5747.02 of the Revised Code with respect to that income.	4720
Compliance with this section does not relieve a lottery sales	4721
agent or a person who has a prize award from compliance with	4722
relevant provisions of federal tax laws.	4723

(G) The commissioner and the tax administrator of the	4724
municipal corporation, as applicable, shall prescribe the form of	4725
the receipt and returns required by this section and the	4726
commissioner may promulgate any rules necessary to administer the	4727
section.	4728

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

4729

(1) "County's proportionate share of the calendar year 2007	4730
LGF and LGRAF distributions" means the percentage computed for the	4731
county under division (B)(1)(a) of section 5747.501 of the Revised	4732
Code.	4733

(2) "County's proportionate share of the total amount of the	4734
local government fund additional revenue formula" means each	4735
county's proportionate share of the state's population as	4736
determined for and certified to the county for distributions to be	4737
made during the current calendar year under division (B)(2)(a) of	4738
section 5747.501 of the Revised Code. If prior to the first day of	4739
January of the current calendar year the federal government has	4740
issued a revision to the population figures reflected in the	4741
estimate produced pursuant to division (B)(2)(a) of section	4742
5747.501 of the Revised Code, such revised population figures	4743
shall be used for making the distributions during the current	4744
calendar year.	4745

(3) "2007 LGF and LGRAF county distribution base available in	4746
that month" means the lesser of the amounts described in division	4747
(A)(3)(a) and (b) of this section, provided that the amount shall	4748
not be less than zero:	4749

(a) The total amount available for distribution to counties	4750
from the local government fund during the current month.	4751

(b) The total amount distributed to counties from the local	4752
government fund and the local government revenue assistance fund	4753
to counties in calendar year 2007 less the total amount	4754
distributed to counties under division (B)(1) of this section	4755
during previous months of the current calendar year.	4756

(4) "Local government fund additional revenue distribution	4757
base available during that month" means the total amount available	4758
for distribution to counties during the month from the local	4759
government fund, less any amounts to be distributed in that month	4760
from the local government fund under division (B)(1) of this	4761
section, provided that the local government fund additional	4762
revenue distribution base available during that month shall not be	4763
less than zero.	4764

(5) "Total amount available for distribution to counties"	4765
means the total amount available for distribution from the local	4766
government fund during the current month less the total amount	4767
available for distribution to municipal corporations during the	4768
current month under division (C) of this section.	4769

(B) On or before the tenth day of each month, the tax	4770
commissioner shall provide for payment to each county an amount	4771
equal to the sum of:	4772

(1) The county's proportionate share of the calendar year	4773
2007 LGF and LGRAF distributions multiplied by the 2007 LGF and	4774
LGRAF county distribution base available in that month, provided	4775
that if the 2007 LGF and LGRAF county distribution base available	4776
in that month is zero, no payment shall be made under division	4777
(B)(1) of this section for the month or the remainder of the	4778
calendar year; and	4779

(2) The county's proportionate share of the total amount of	4780
the local government fund additional revenue formula multiplied by	4781
the local government fund additional revenue distribution base	4782
available during that month.	4783

Money received into the treasury of a county under this	4784
division shall be credited to the undivided local government fund	4785
in the treasury of the county on or before the fifteenth day of	4786
each month. On or before the twentieth day of each month, the	4787
county auditor shall issue warrants against all of the undivided	4788
local government fund in the county treasury in the respective	4789
amounts allowed as provided in section 5747.51 of the Revised	4790
Code, and the treasurer shall distribute and pay such sums to the	4791
subdivision therein.	4792

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

4793

(a) "Total amount available for distribution to	4794
municipalities during the current month" means the product	4795
obtained by multiplying the total amount available for	4796
distribution from the local government fund during the current	4797
month by the aggregate municipal share.	4798

(b) "Aggregate municipal share" means the quotient obtained	4799
by dividing the total amount distributed directly from the local	4800
government fund to municipal corporations during calendar year	4801
2007 by the total distributions from the local government fund and	4802
local government revenue assistance fund during calendar year	4803
2007.	4804

(2) On or before the tenth day of each month, the tax	4805
commissioner shall provide for payment from the local government	4806
fund to each municipal corporation an amount equal to the product	4807
derived by multiplying the municipal corporation's percentage of	4808
the total amount distributed to all such municipal corporations	4809
under this division during calendar year 2007 by the total amount	4810
available for distribution to municipal corporations during the	4811
current month.	4812

(3) Payments received by a municipal corporation under this	4813
division shall be paid into its general fund and may be used for	4814
any lawful purpose.	4815

(4) The amount distributed to municipal corporations under	4816
this division during any calendar year shall not exceed the amount	4817
distributed directly from the local government fund to municipal	4818
corporations during calendar year 2007. If that maximum amount is	4819
reached during any month, distributions to municipal corporations	4820
in that month shall be as provided in divisions (C)(1) and (2) of	4821
this section, but no further distributions shall be made to	4822
municipal corporations under division (C) of this section during	4823
the remainder of the calendar year.	4824

(5) Upon being informed of a municipal corporation's	4825
dissolution, the tax commissioner shall cease providing for	4826
payments to that municipal corporation under division (C) of this	4827
section. The proportionate shares of the total amount available	4828
for distribution to each of the remaining municipal corporations	4829
under this division shall be increased on a pro rata basis.	4830

(D) Each municipal corporation which has in effect a tax	4831
imposed under Chapter 718. of the Revised Code shall, no later	4832
than the thirty-first day of August of each year, certify to the	4833
tax commissioner, on a form prescribed by the commissioner, the	4834
total amount of income taxestax revenue collected and refunded by	4835
such municipal corporation pursuant to such chapter during the	4836
preceding calendar year, arranged, when possible, by the type of	4837
income from which the revenue was collected or the refund was	4838
issued. The municipal corporation shall also report the amount of	4839
income tax revenue collected and refunded on behalf of a joint	4840
economic development district or a joint economic development zone	4841
that levies an income tax administered by the municipal	4842
corporation and the amount of such revenue distributed to	4843
contracting parties during the preceding calendar year. The tax	4844
commissioner may withhold payment of local government fund moneys	4845
pursuant to division (C) of this section from any municipal	4846
corporation for failure to comply with this reporting requirement.	4847

Sec. 5749.06.  (A)(1) Each severer liable for the tax imposed	4848
by section 5749.02 of the Revised Code and each severer or owner	4849
liable for the amounts due under section 1509.50 of the Revised	4850
Code shall make and file returns with the tax commissioner in the	4851
prescribed form and as of the prescribed times, computing and	4852
reflecting therein the tax as required by this chapter and amounts	4853
due under section 1509.50 of the Revised Code.	4854

(2) The returns shall be filed for every quarterly period,	4855
which periods shall end on the thirty-first day of March, the	4856
thirtieth day of June, the thirtieth day of September, and the	4857
thirty-first day of December of each year, as required by this	4858
section, unless a different return period is prescribed for a	4859
taxpayer by the commissioner.	4860

(B)(1) A separate return shall be filed for each calendar	4861
quarterly period, or other period, or any part thereof, during	4862
which the severer holds a license as provided by section 5749.04	4863
of the Revised Code, or is required to hold the license, or during	4864
which an owner is required to file a return. The return shall be	4865
filed within forty-five days after the last day of each such	4866
calendar month, or other period, or any part thereof, for which	4867
the return is required. The tax due is payable along with the	4868
return. All such returns shall contain such information as the	4869
commissioner may require to fairly administer the tax.	4870

(2) All returns shall be signed by the severer or owner, as	4871
applicable, shall contain the full and complete information	4872
requested, and shall be made under penalty of perjury.	4873

(C) If the commissioner believes that quarterly payments of	4874
tax would result in a delay that might jeopardize the collection	4875
of such tax payments, the commissioner may order that such	4876
payments be made weekly, or more frequently if necessary, such	4877
payments to be made not later than seven days following the close	4878
of the period for which the jeopardy payment is required. Such an	4879
order shall be delivered to the taxpayer personally or by	4880
certified mail and shall remain in effect until the commissioner	4881
notifies the taxpayer to the contrary.	4882

(D) Upon good cause the commissioner may extend for thirty	4883
days the period for filing any notice or return required to be	4884
filed under this section, and may remit all or a part of penalties	4885
that may become due under this chapter.	4886

(E) Any tax and any amount due under section 1509.50 of the	4887
Revised Code not paid by the day the tax or amount is due shall	4888
bear interest computed at the rate per annum prescribed by section	4889
5703.47 of the Revised Code on that amount due from the day that	4890
the amount was originally required to be paid to the day of actual	4891
payment or to the day an assessment was issued under section	4892
5749.07 or 5749.10 of the Revised Code, whichever occurs first.	4893

(F) A severer or owner, as applicable, that fails to file a	4894
complete return or pay the full amount due under this chapter	4895
within the time prescribed, including any extensions of time	4896
granted by the commissioner, shall be subject to a penalty not to	4897
exceed the greater of fifty dollars or ten per cent of the amount	4898
due for the period.	4899

(G)(1) A severer or owner, as applicable, shall remit	4900
payments electronically and, if required by the commissioner, file	4901
each return electronically. The commissioner may require that the	4902
severer or owner use the Ohio business gateway, as defined in	4903
section 718.051718.01 of the Revised Code, or another electronic	4904
means to file returns and remit payments electronically.	4905

(2) A severer or owner that is required to remit payments	4906
electronically under this section may apply to the commissioner,	4907
in the manner prescribed by the commissioner, to be excused from	4908
that requirement. The commissioner may excuse a severer or owner	4909
from the requirements of division (G) of this section for good	4910
cause.	4911

(3) If a severer or owner that is required to remit payments	4912
or file returns electronically under this section fails to do so,	4913
the commissioner may impose a penalty on the severer or owner not	4914
to exceed the following:	4915

(a) For the first or second payment or return the severer or	4916
owner fails to remit or file electronically, the greater of five	4917
per cent of the amount of the payment that was required to be	4918
remitted or twenty-five dollars;	4919

(b) For every payment or return after the second that the	4920
severer or owner fails to remit or file electronically, the	4921
greater of ten per cent of the amount of the payment that was	4922
required to be remitted or fifty dollars.	4923

(H)(1) All amounts that the commissioner receives under this	4924
section shall be deemed to be revenue from taxes imposed under	4925
this chapter or from the amount due under section 1509.50 of the	4926
Revised Code, as applicable, and shall be deposited in the	4927
severance tax receipts fund, which is hereby created in the state	4928
treasury.	4929

(2) The director of budget and management shall transfer from	4930
the severance tax receipts fund to the tax refund fund amounts	4931
equal to the refunds certified by the commissioner under section	4932
5749.08 of the Revised Code. Any amount transferred under division	4933
(H)(2) of this section shall be derived from receipts of the same	4934
tax or other amount from which the refund arose.	4935

(3) After the director of budget and management makes any	4936
transfer required by division (H)(2) of this section, but not	4937
later than the fifteenth day of the month following the end of	4938
each calendar quarter, the commissioner shall certify to the	4939
director the total amount remaining in the severance tax receipts	4940
fund organized according to the amount attributable to each	4941
natural resource and according to the amount attributable to a tax	4942
imposed by this chapter and the amounts due under section 1509.50	4943
of the Revised Code.	4944

(I) Penalties imposed under this section are in addition to	4945
any other penalty imposed under this chapter and shall be	4946
considered as revenue arising from the tax levied under this	4947
chapter or the amount due under section 1509.50 of the Revised	4948
Code, as applicable. The commissioner may collect any penalty or	4949
interest imposed under this section in the same manner as provided	4950
for the making of an assessment in section 5749.07 of the Revised	4951
Code. The commissioner may abate all or a portion of such interest	4952
or penalties and may adopt rules governing such abatements.	4953

Sec. 5751.07.  (A) Any person required to file returns under	4954
this chapter shall remit each tax payment, and, if required by the	4955
tax commissioner, file the tax return or the annual report,	4956
electronically. The commissioner may require taxpayers to use the	4957
Ohio business gateway as defined in section 718.051718.01 of the	4958
Revised Code to file returns and remit the tax, or may provide	4959
another means for taxpayers to file and remit the tax	4960
electronically.	4961

(B) A person required by this section to remit taxes or file	4962
returns electronically may apply to the tax commissioner, on the	4963
form prescribed by the commissioner, to be excused from that	4964
requirement. The commissioner may excuse a person from the	4965
requirements of this division for good cause.	4966

(C)(1) If a person required to remit taxes or file a return	4967
electronically under this section fails to do so, the commissioner	4968
may impose a penalty not to exceed the following:	4969

(a) For either of the first two tax periods the person so	4970
fails, the greater of twenty-five dollars or five per cent of the	4971
amount of the payment that was required to be remitted;	4972

(b) For the third and any subsequent tax periods the person	4973
so fails, the greater of fifty dollars or ten per cent of the	4974
amount of the payment that was required to be remitted.	4975

(2) The penalty imposed under division (C)(1) of this section	4976
is in addition to any other penalty imposed under this chapter and	4977
shall be considered as revenue arising from the tax imposed under	4978
this chapter. A penalty may be collected by assessment in the	4979
manner prescribed by section 5751.09 of the Revised Code. The tax	4980
commissioner may abate all or a portion of such a penalty.	4981

(D) The tax commissioner may adopt rules necessary to	4982
administer this section.	4983

Section 2.  That existing sections 128.46, 709.023, 715.013,	4984
718.02, 718.03, 718.04, 718.051, 718.07, 718.09, 718.10, 718.11,	4985
718.121, 718.13, 5703.02, 5703.059, 5703.57, 5717.011, 5717.03,	4986
5726.03, 5736.04, 5739.12, 5739.124, 5741.122, 5747.063, 5747.064,	4987
5747.50, 5749.06, and 5751.07 and sections 718.01, 718.011,	4988
718.041, 718.05, 718.06, 718.08, 718.12, and 718.14 of the	4989
Revised Code are hereby repealed.	4990

Section 3.  This act applies to municipal taxable years	4991
beginning on or after January 1, 2016. For municipal taxable years	4992
beginning before January 1, 2016, tax administrators may continue	4993
to administer, audit, and enforce the income tax of a municipal	4994
corporation under Chapter 718. and ordinances and resolutions of	4995
the municipal corporation as that chapter and those ordinances and	4996
resolutions existed before January 1, 2016.	4997

Section 4.  (A) There is hereby created the Municipal Income	4998
Tax Net Operating Loss Review Committee for the purpose of	4999
evaluating and quantifying the potential fiscal impact to	5000
municipal corporations levying an income tax requiring such	5001
municipal corporations to allow taxpayers to carry forward net	5002
operating losses for five years. The Committee is a public body	5003
for the purposes of section 121.22 of the Revised Code.	5004

(B) The Committee shall be composed of the following members:

5005

(1) Two members of the House of Representatives who are not	5006
of the same political party, appointed by the Speaker of the House	5007
of Representatives;	5008

(2) Two members of the Senate who are not of the same	5009
political party, appointed by the President of the Senate;	5010

(3) Three members representing municipal income taxpayers,	5011
appointed by the Speaker of the House of Representatives;	5012

(4) Three members representing municipal corporations that	5013
levy an income tax in calendar year 2016, appointed by the	5014
President of the Senate. At least two of the members appointed	5015
under division (B)(4) of this section shall represent municipal	5016
corporations that do not allow taxpayers to carry forward net	5017
operating losses to future taxable years.	5018

(5) One member appointed by the Governor, who shall serve as	5019
the chairperson of the Committee.	5020

The appointing authorities shall appoint members of the	5021
Committee not later than March 1, 2015. An appointed member shall	5022
serve until the member resigns or is removed by the member's	5023
appointing authority. Vacancies shall be filled in the same manner	5024
as original appointments. A vacancy on the committee does not	5025
impair the right of the other members to exercise all the	5026
functions of the Committee.	5027

The Committee shall meet for the first time on or before May	5028
31, 2015. Thereafter, the Committee shall meet at the call of the	5029
chairperson. The presence of a majority of the members of the	5030
Committee constitutes a quorum for the conduct of business of the	5031
Committee. The concurrence of at least a majority of the members	5032
of the Committee is necessary to approve the report issued by the	5033
Committee under division (E) of this section. Members of the	5034
Committee shall not be compensated or reimbursed for members'	5035
expenses.	5036

(C) On or before November 30, 2015, the Committee shall	5037
prescribe a method that municipal corporations shall use to	5038
estimate the difference between the municipal corporation's actual	5039
or projected municipal income tax revenue in 2012, 2013, 2014,	5040
2015, 2016, 2017, and 2018 and the actual or projected municipal	5041
income tax revenue that would have resulted in each of those years	5042
if the municipal corporation allowed net operating loss to be	5043
carried forward for five years for losses incurred in 2011, 2012,	5044
and 2013.	5045

(D) On or before September 30, 2016, each municipal	5046
corporation that levies an income tax in 2011, 2012, or 2013 shall	5047
report to the Municipal Income Tax Net Operating Loss Review	5048
Committee the difference between the municipal corporation's	5049
actual or projected municipal income tax revenue in 2012, 2013,	5050
2014, 2015, 2016, 2017, and 2018 and the actual or projected	5051
municipal income tax revenue that would have resulted in each of	5052
those years if the municipal corporation allowed net operating	5053
loss to be carried forward for five years for losses incurred in	5054
2011, 2012, and 2013, as estimated by the method prescribed by the	5055
Committee under division (C) of this section.	5056

(E) If the Municipal Income Tax Net Operating Loss Review	5057
Committee receives reports from a representative sample, then the	5058
Committee shall review the information reported by municipal	5059
corporations under division (D) of this section and calculate the	5060
total of the revenue effects reported by such municipal	5061
corporations. On or before May 1, 2017, the Committee shall issue	5062
a written report to the Speaker and Minority Leader of the House	5063
of Representatives and the President and Minority Leader of the	5064
Senate reporting the Committee's findings and estimated revenue	5065
impact of requiring municipal corporations levying an income tax	5066
to allow net operating loss to be carried forward for five years.	5067
The report shall contain recommendations to address revenue	5068
shortfalls, which may include, but which shall not be limited to,	5069
the use of supplemental funds from the Local Government Fund to	5070
mitigate those shortfalls.	5071

(F) Nothing in this section delays or otherwise affects the	5072
taxable years to which division (E)(8) of section 718.01 of the	5073
Revised Code, as enacted by this act, apply as prescribed in that	5074
division.	5075

(G) The Municipal Income Tax Net Operating Loss Review	5076
Committee shall cease to exist on May 1, 2017.	5077

(H) As used in this section, "representative sample" includes	5078
at least three cities with a population of more than two hundred	5079
fifty thousand, five cities or villages with a higher ratio of	5080
business taxpayers to resident individual taxpayers relative to	5081
the state average, and five cities or villages with a higher ratio	5082
of resident individual taxpayers to business taxpayers relative to	5083
the state average.	5084

Section 5.  (A) There is hereby created the Municipal Income	5085
Tax Revenue Reporting Study Committee. The Committee shall study	5086
the feasibility of requiring municipal corporations to separately	5087
report the portion of the municipal corporation's income tax	5088
revenue that is derived from taxes paid by resident individuals	5089
and the portion of such revenue that is derived from taxes paid by	5090
nonresident individuals. The Committee is a public body for the	5091
purposes of section 121.22 of the Revised Code.	5092

(B) The Committee shall be composed of the following members:

5093

(1) Three members of the Senate, two of whom shall be	5094
appointed by the President of the Senate and one of whom shall be	5095
appointed by the Minority Leader of the Senate;	5096

(2) Three members of the House of Representatives, two of	5097
whom shall be appointed by the Speaker of the House of	5098
Representatives and one of whom shall be appointed by the Minority	5099
Leader of the House of Representatives;	5100

(3) Six members representing business interests or municipal	5101
corporations that levy an income tax, two of whom shall be	5102
appointed by the President of the Senate, two of whom shall be	5103
appointed by the Speaker of the House of Representatives, one of	5104
whom shall be appointed by the Minority Leader of the Senate, and	5105
one of whom shall be appointed by the Minority Leader of the House	5106
of Representatives.	5107

The appointments shall be made within thirty days after the	5108
effective date of this section. An appointed member shall serve	5109
until the member resigns or is removed by the member's appointing	5110
authority. Vacancies shall be filled in the same manner as	5111
original appointments.	5112

Members of the Committee shall not be compensated or	5113
reimbursed for members' expenses.	5114

(C) The Committee shall study the costs and benefits of, and	5115
challenges involved in, requiring that municipal corporations	5116
separately report the portion of the municipal corporation's	5117
income tax revenue that is derived from taxes paid by resident	5118
individuals and the portion of such revenue that is derived from	5119
taxes paid by nonresident individuals. On or before May 1, 2015,	5120
the Committee shall issue a report of its findings and	5121
recommendations with respect to the reporting requirement. The	5122
Committee shall provide copies of the report to the Governor, the	5123
President and Minority Leader of the Senate, and the Speaker and	5124
Minority Leader of the House of Representatives.	5125

(D) The Committee shall cease to exist on May 1, 2015.

5126

(E) It is the intent of the General Assembly to provide	5127
transparency with regards to the source of municipal income tax	5128
receipts beginning on and after January 1, 2015, but not to impose	5129
a significant burden upon municipal corporations.	5130

Section 6. Section 6 of Article XIII, Ohio Constitution,	5131
grants the General Assembly authority to restrict the power of	5132
municipal corporations to levy taxes so as to prevent the abuse of	5133
such power. Section 13 of Article XVIII, Ohio Constitution, also	5134
authorizes the General Assembly to limit the power of municipal	5135
corporations to levy taxes. In order to ensure a fair, stable, and	5136
efficient system of local taxation, and to prevent any abuse of	5137
power by municipal corporations, the General Assembly hereby	5138
exercises its authority under those Articles to restrict the	5139
taxing powers of municipal corporations by requiring that any	5140
income tax or withholding tax levied by a municipal corporation	5141
must be levied in accordance with this act and any provisions of	5142
Chapter 718. of the Revised Code that remain unchanged by this	5143
act. No municipal corporation is required, as a result of this	5144
act, to modify, reenact, or repeal any ordinance or resolution	5145
that levies an income tax and that was in effect prior to January	5146
1, 2016, except to the extent that the ordinance or resolution	5147
conflicts with the provisions of this act.	5148