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(123rd General Assembly)(Amended Substitute Senate Bill Number 287)
AN ACT
To amend sections 9.66, 718.011, 718.09, 718.10, 718.14, 3318.035, 3709.28,
4141.21, 4933.33, 5703.052, 5717.02, 5727.11, 5727.111, 5727.33, 5727.80 to
5727.95, 5733.053, 5733.06, 5733.40, 5733.42, 5745.01, 5745.02, 5745.03,
5745.04, 5745.05, 5745.07, 5745.08, 5745.09, 5745.11, 5745.13, 5747.15,
5747.24, and 5747.98 and to enact sections 5725.31, 5727.811, 5729.07,
5747.221, and 5747.39 of the Revised Code, and to amend Sections 3, 4, and 16
of Am.
Sub. S.B. 3 of the 123rd General Assembly, Section 174 of H.B. 283 of the
123rd General Assembly, and Sections 3, 4, and 5 of H.B. 483 of the 123rd
General Assembly to levy an excise tax on the distribution of natural gas and
to modify laws governing taxation, including the law governing the
kilowatt-hour tax, corporation franchise tax, personal income tax, the
taxation of individuals, corporations, and electric companies by municipal
corporations, the computation of taxable value under the school facilities
assistance program, and to declare an emergency.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1 . That sections 9.66, 718.011, 718.09, 718.10, 718.14, 3318.053,
3709.28, 4141.21, 4933.33, 5703.052, 5717.02, 5727.11, 5727.111, 5727.33,
5727.80, 5727.81, 5727.82, 5727.83,
5727.84, 5727.85, 5727.86, 5727.87, 5727.88, 5727.89, 5727.90,
5727.91, 5727.92, 5727.93, 5727.94, 5727.95, 5733.053, 5733.06, 5733.40,
5733.42, 5745.01, 5745.02, 5745.03, 5745.04, 5745.05, 5745.07, 5745.08,
5745.09, 5745.11, 5745.13, 5747.15, 5747.24, and 5747.98 be amended and
sections 5725.31, 5727.811, 5729.07, 5747.221, and 5745.39 of the Revised Code
be enacted to read as follows:
Sec. 9.66. (A) As used in this section: (1) "Economic development assistance" means all of the
following: (a) The programs and assistance provided or administered by the department of
development under
Chapters 122. and 166. of the Revised Code and any other section of the
Revised Code under which the department provides or administers economic
development assistance; (b) The programs and assistance provided or administered by a political
subdivision under Chapters 725. and 1728. and sections 3735.67 to 3735.70,
5709.40 to 5709.43, 5709.61 to 5709.69, 5709.73 to 5709.75, and 5709.77 to
5709.81 of the Revised Code and any other section of the Revised Code under
which a political subdivision provides economic development assistance; (c) Assistance provided under any
other section of the Revised Code under which the state or a
state agency provides or administers economic development
assistance; (d) The tax credit authorized by section 5725.31, 5729.07,
5733.42, or 5747.39 of the Revised Code. (2) "Liability" means any of the following: (a) Any delinquent tax owed the state or a political subdivision of the
state; (b) Any moneys owed the state or a state agency for the administration or
enforcement of the environmental laws of the state; (c) Any other moneys owed the state, a state agency, or a political
subdivision of the state that are
past due. "Liability" includes any item described in division (A)(2) of this section
that is being contested in a court of law. (3) "Political subdivision" means any county, municipal
corporation, or township of the state. (4) "State agency" means every organized body, office, or
agency established by the laws of the state for the exercise of
any function of state government. (B) A person who applies
to the state, a state agency, or a political subdivision for
economic development assistance shall indicate on the
application for assistance whether the person has any
outstanding liabilities owed to the state, a state agency, or a
political subdivision. Such a person also shall authorize the
state, state agency, or political subdivision to inspect the
personal or corporate financial statements of the applicant, including
tax records and other similar information not open to public
inspection. (C)(1) Whoever knowingly makes a false statement under division (B) of this
section concerning an application for economic development assistance or who
fails to provide any information required by that division is ineligible for
the assistance applied for and is ineligible for any future economic
development assistance from the state, a state agency, or a political
subdivision. (2) Whoever knowingly makes a false statement under division (B) of this
section concerning an application for economic development assistance or who
fails to provide any information required by that division shall return any
moneys received from the state, a state agency, or a political subdivision in
connection with that application. Sec. 718.011. On and after January 1, 2001, a municipal
corporation shall not tax the compensation of an paid to a
nonresident individual if all for personal services performed by
the individual in the municipal corporation on twelve or fewer days in a
calendar year unless one of the
following apply applies: (A) The individual does not reside in that municipal
corporation. (B) The compensation is paid for personal services performed by
the individual in that municipal corporation on twelve or fewer days in
the calendar year.
(C) In the case of an individual who is an employee,
of another person; the
principal place of business of the individual's employer is located outside
that in another municipal corporation in this state that imposes
a tax applying to compensation paid to the individual for services performed
on those days;
and the individual pays is not liable to that other municipal
corporation for
tax on the compensation described in division (B) of this section
to the municipal corporation, if any, in which the employer's principal place
of business is
located, and no portion of that tax is refunded to the individual paid
for such services.
(D)(B) The individual is not a professional
entertainer or
professional athlete, the promoter of a professional entertainment or sports
event, or an employee of such a promoter, all as
may be reasonably defined by the municipal corporation.
Sec. 718.09. (A) This section applies to either of the following: (1) A municipal corporation that shares the same territory as a city, local,
or exempted village school district, to the extent that not more
than five per cent of the territory of the municipal
corporation is located outside the school district and not more than
five per cent of the territory of the school district is
located outside the municipal corporation; (2) A municipal corporation that shares the same territory as a city, local,
or exempted village
school district, to the extent that not more than five per cent
of the territory of the municipal corporation is located outside
the school district, more than five per cent but not more than ten per cent of
the territory of the school district is located outside the municipal
corporation, and that portion of the territory of the school
district that is located outside the municipal corporation is
located entirely within another municipal corporation having a
population of four hundred thousand or more according to the
federal decennial census most recently completed before the
agreement is entered into under division
(B) of this section. (B) The Before January 1, 2001, the legislative
authority of a municipal corporation
to which this section applies may propose to the electors an
income tax, one of the purposes of which shall be to provide
financial assistance to the school district through payment to
the district of not less than twenty-five per cent of the revenue
generated by the tax. Prior to proposing the tax, the
legislative authority shall negotiate and enter into a written
agreement with the board of education of the school district
specifying the tax rate, the percentage of tax revenue to be paid
to the school district, the purpose for which the school district
will use the money, the first year the tax will be levied, the
date of the special election on the question of the tax, and the
method and schedule by which the municipal corporation will make
payments to the school district. The special election shall be
held before January 1, 2001, on a day specified in
division (D) of section 3501.01 of the
Revised Code, except that the special election may not be held on
the day for holding a primary election as authorized by the
municipal corporation's charter unless the municipal corporation
is to have a primary election on that day. After the legislative authority and board of education have
entered into the agreement, the legislative authority shall
provide for levying the tax by ordinance. The ordinance shall
state the tax rate, the percentage of tax revenue to be paid to
the school district, the purpose for which the municipal
corporation will use its share of the tax revenue, the first year
the tax will be levied, and that the question of the income tax
will be submitted to the electors of the municipal corporation.
The legislative authority also shall adopt a resolution
specifying the regular or special election date the election will
be held and directing the board of elections to conduct the
election. At least seventy-five days before the date of the
election, the legislative authority shall file certified copies
of the ordinance and resolution with the board of elections. (C) The board of elections shall make the necessary
arrangements for the submission of the question to the electors
of the municipal corporation, and shall conduct the election in
the same manner as any other municipal income tax election.
Notice of the election shall be published in a newspaper of
general circulation in the municipal corporation once a week for
four consecutive weeks prior to the election, and shall include
statements of the rate and municipal corporation and school
district purposes of the income tax, the percentage of tax
revenue that will be paid to the school district, and the first
year the tax will be levied. The ballot shall be in the
following form: "Shall the ordinance providing for a ..... per cent levy on
income for (brief description of the municipal corporation and
school district purposes of the levy, including a statement of
the percentage of tax revenue that will be paid to the school
district) be passed?
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(D) If the question is approved by a majority of the
electors, the municipal corporation shall impose the income tax
beginning in the year specified in the ordinance. The proceeds
of the levy may be used only for the specified purposes,
including payment of the specified percentage to the school
district. Sec. 718.10. (A) This section applies to a group of two
or more municipal corporations that, taken together, share the
same territory as a single city, local, or exempted village
school district, to the extent that not more than five per cent
of the territory of the municipal corporations as a group is
located outside the school district and not more than five per
cent of the territory of the school district is located outside
the municipal corporations as a group. (B) The Before January 1, 2001, the legislative
authorities of the municipal
corporations in a group of municipal corporations to which this
section applies each may propose to the electors an income tax,
to be levied in concert with income taxes in the other municipal
corporations of the group. One of the purposes of such a tax
shall be to provide financial assistance to the school district
through payment to the district of not less than twenty-five per
cent of the revenue generated by the tax. Prior to proposing the
taxes, the legislative authorities shall negotiate and enter into
a written agreement with each other and with the board of
education of the school district specifying the tax rate, the
percentage of the tax revenue to be paid to the school district,
the first year the tax will be levied, and the date of the
election on the question of the tax, all of which shall be the
same for each municipal corporation. The agreement also shall
state the purpose for which the school district will use the
money, and specify the method and schedule by which each
municipal corporation will make payments to the school district.
The special election shall be held before January 1,
2001, on a day specified in division
(D) of section 3501.01 of the Revised Code, including a day on
which all of the municipal corporations are to have a primary
election. After the legislative authorities and board of education
have entered into the agreement, each legislative authority shall
provide for levying its tax by ordinance. Each ordinance shall
state the rate of the tax, the percentage of tax revenue to be
paid to the school district, the purpose for which the municipal
corporation will use its share of the tax revenue, and the first
year the tax will be levied. Each ordinance also shall state
that the question of the income tax will be submitted to the
electors of the municipal corporation on the same date as the
submission of questions of an identical tax to the electors of
each of the other municipal corporations in the group, and that
unless the electors of all of the municipal corporations in the
group approve the tax in their respective municipal corporations,
none of the municipal corporations in the group shall levy the
tax. Each legislative authority also shall adopt a resolution
specifying the regular or special election date the election will
be held and directing the board of elections to conduct the
election. At least seventy-five days before the date of the
election, each legislative authority shall file certified copies
of the ordinance and resolution with the board of elections. (C) For each of the municipal corporations, the board of
elections shall make the necessary arrangements for the
submission of the question to the electors, and shall conduct the
election in the same manner as any other municipal income tax
election. For each of the municipal corporations, notice of the
election shall be published in a newspaper of general circulation
in the municipal corporation once a week for four consecutive
weeks prior to the election. The notice shall include a
statement of the rate and municipal corporation and school
district purposes of the income tax, the percentage of tax
revenue that will be paid to the school district, and the first
year the tax will be levied, and an explanation that the tax will
not be levied unless an identical tax is approved by the electors
of each of the other municipal corporations in the group. The
ballot shall be in the following form: "Shall the ordinance providing for a ... per cent levy on
income for (brief description of the municipal corporation and
school district purposes of the levy, including a statement of
the percentage of income tax revenue that will be paid to the
school district) be passed? In order for the income tax to be
levied, the voters of (the other municipal corporations in the
group), which are also in the (name of the school district)
school district, must approve an identical income tax and agree
to pay the same percentage of the tax revenue to the school
district. ________________________________ For the income tax ________________________________ Against the income tax ________________________________ "
(D) If the question is approved by a majority of the
electors and identical taxes are approved by a majority of the
electors in each of the other municipal corporations in the
group, the municipal corporation shall impose the tax beginning
in the year specified in the ordinance. The proceeds of the
levy may be used only for the specified purposes, including
payment of the specified percentage to the school district. Sec. 718.14. (A) As used in this section: (1) "S corporation" means a corporation that has made an election
under subchapter S of Chapter 1 of Subtitle
A of the Internal Revenue Code for its
taxable year. (2) "Limited liability company" means a limited liability company
formed under Chapter 1705. of the Revised Code or under the laws
of another state. (3) "Pass-through entity" means a partnership, S corporation,
limited liability company, or any other class of entity the income or profits
from
which are given pass-through treatment under the Internal
Revenue Code. (4) "Income from a pass-through entity" means partnership income
of partners, distributive shares of shareholders of an s
corporation, membership interests of members of a limited liability company,
or other distributive or proportionate ownership shares
of other pass-through entities. (5) "Owner" means a partner of a partnership, a shareholder of an
S corporation, a member of a limited liability company, or other
person with an ownership interest in a pass-through entity. (6) "Owner's proportionate share," with respect to each owner of
a pass-through entity, means the
ratio of (a) the owner's income from the pass-through entity
that is subject to taxation by the municipal corporation, to (b)
the total income from that entity of all owners
whose income from the entity is subject to taxation
by that municipal corporation. (B) On and after January 1, 2003, any municipal
corporation that
imposes imposing a tax that applies to income from a pass-through
entity shall grant a
credit to taxpayers that are each owner who is domiciled in the
municipal corporation
for
taxes paid to another municipal corporation by a pass-through entity that does
not conduct business
in the municipal corporation. The amount of the credit shall
equal the lesser of the following amounts, subject to division (C)
of this section: (1) The owner's proportionate share of the amount, if any, of tax paid
by the pass-through entity to
another municipal corporation in this state, apportioned ratably
according to the ownership interest of the taxpayer in proportion to the
ownership interest of all owners of the entity; (2) The owner's proportionate share of the amount of tax that would be
imposed on the pass-through
entity by the municipal corporation in which the taxpayer is
domiciled if the pass-through entity conducted business in the municipal
corporation, apportioned ratably according to the ownership
interest of the taxpayer in proportion to the ownership interest
of all owners of the entity. (C) If a municipal corporation grants a credit for a percentage,
less than one hundred per cent, of the amount of income taxes paid on
compensation by an
individual who resides or is domiciled in the municipal corporation to
another municipal corporation, the amount of credit otherwise
required by division (B) of this section shall be multiplied by
that percentage. (D) On and after January 1, 2003, any municipal
corporation that
imposes a tax on income of or from a pass-through entity
shall specify by ordinance or rule
whether the tax applies to income of the pass-through entity
in the hands of the
entity or to income from the pass-through entity in the hands of
the owners of the entity. A municipal corporation may specify a
different ordinance or rule under this division for each of the classes
of pass-through entity enumerated in division (A)(3) of this
section. Sec. 3318.035. (A) This section applies only if there is a
change in the assessment rates on gas pipelines imposed under state
law. (B) If at any time division (A) of this section applies and if
the change in assessment rates described in that division affects a
school district's valuation as determined under division
(P) of section 3318.01 of the
Revised Code by greater than ten
per cent and if the Ohio school facilities commission had
determined the state and school district portion of the basic project cost of
such a district's project under section 3318.36 or 3318.37 of
the Revised Code prior to
that change in valuation, the commission shall adjust the state and school
district portions of the basic project cost of the school district's project
using the valuation altered by the change in assessment rates described in
division (A) of this section. Sec. 3709.28. The board of health of a general health
district shall, annually, on or before the first Monday of April,
adopt an itemized appropriation measure. Such appropriation
measure shall set forth the amounts for the current expenses of
such district for the fiscal year beginning on the first day of
January next ensuing. The appropriation measure, together with
an estimate in itemized form, of the several sources of revenue
available to the district, including the amount due from the
state for the next fiscal year as provided in section 3709.32 of
the Revised Code and the amount which the board anticipates will
be collected in fees during the next ensuing fiscal year, shall
be certified to the county auditor and by him the county auditor
submitted to the county budget commission which may reduce any item in such
appropriation measure but may not increase any item or the
aggregate of all items. The aggregate appropriation, as fixed by the commission,
less the amounts available to the general health district from
the several sources of revenue, including the estimated balance
from the previous appropriation, shall be apportioned, by the
auditor among the townships and municipal corporations composing
the health district on the basis of taxable valuations in such
townships and municipal corporations. The auditor, when making
his the auditor's semiannual apportionment of funds, shall
retain at each
semiannual apportionment one-half of the amount apportioned to
each township and municipal corporation. Such moneys and all
other sources of revenue shall be placed in a separate fund, to
be known as the "district health fund." When a general health
district is composed of townships and municipal corporations in
two or more counties, the auditor making the original
apportionment shall certify to the auditor of each county
concerned the amount apportioned to each township and municipal
corporation in such county. Each auditor shall withhold from the
semiannual apportionment to each such township or municipal
corporation the amount certified, and shall pay the amounts
withheld to the custodian of the funds of the health district
concerned, to be credited to the district health fund. In making the
apportionment under this paragraph for each year from 2002 through 2016, the
county auditor shall add to the taxable valuation of each township and
municipal corporation the tax value loss determined for each township and
municipal corporation under divisions (D) and (E) of
section 5727.84 of the Revised Code multiplied by the
percentage used for that year in determining replacement payments under
division (A)(1) of section 5727.86 of the Revised
Code. The tax commissioner shall certify to the county auditor the
tax value loss for each township and municipal corporation for which the
auditor must make an apportionment. Subject to the aggregate amount as has been apportioned
among the townships and municipalities and as may become
available from the several sources of revenue, the board of
health may, by resolution, transfer funds from one item in their
appropriation to another item, reduce or increase any item,
create new items, and make additional appropriations or reduce
the total appropriation. Any such action shall forthwith be
certified by the secretary of the board of health to the auditor
for submission to and approval by the budget commission. When any general health district has been united with or
has contracted with a city health district located therein, the
chief executive of the city shall, annually, on or before the
first day of June, certify to the county auditor the total amount
due for the ensuing fiscal year from the municipal corporations
and townships in the district as provided in the contract between
such city and the district advisory council of the original
general health district. After approval by the county budget
commission, the county auditor shall thereupon apportion the
amount certified to the townships and municipal corporations, and
shall withhold the sums apportioned as provided in this section. Sec. 4141.21. Except as provided in section 4141.162 of the Revised
Code, and
subject to
section 4141.43 of the Revised Code, the
information maintained by the
director of job and family
services or furnished to the director by employers
or employees
pursuant to this
chapter is for the exclusive use and information of the
department of
job and family services in the discharge of its
duties and shall not
be open to the public or be used in any court in any action or
proceeding pending therein, or be admissible in evidence in any
action, other than one arising under this
chapter or section 5733.42 of the Revised Code. All
of the information and records necessary or useful in the determination
of any particular claim for benefits or necessary in verifying
any charge to an employer's account under sections 4141.23 to
4141.26 of the Revised Code shall be available for examination
and use by the employer and the employee involved or their
authorized representatives in the hearing of such cases, and
that information may be tabulated and published in statistical form
for the use and information of the state departments and the
public. Sec. 4933.33. (A) Annually, each electric distribution
company, as defined in section 5727.80 of the Revised Code,
shall
cause to appear state on each customer bill, or shall distribute
to
each of its customers, the following statement: "Under state law, the amount you are being billed includes: (1) Kilowatt-hour taxes that have been in effect
since 2001 and are currently at $.........
(The current dollar figure of the
kilowatt-hour taxes levied by section 5727.81 of the
Revised Code
shall be placed in the blank); and (2) Assessments to assist in the support of the operations
of the PUCO and the office of the consumers' counsel that have
been in effect since 1912 and 1977, respectively." (B) Annually, each natural gas distribution company, as defined
in section 5727.80 of the Revised Code, shall state on each
customer bill, or shall distribute to each of its customers, the
following statement: "Under state law, the amount you are being billed includes: (1) Natural gas distribution taxes that have been in effect since
2001 and are currently at $ ......... (The current dollar figure of the
natural gas distribution excise taxes levied by section 5727.811 of the
Revised Code shall be placed in the blank); and (2) Assessments to assist in the support of the operations of the
PUCO and the office of the consumers' counsel that have been in
effect since 1912 and 1977, respectively." (C) The
notice required under
division (A) or (B) of this section does not apply to an
electric
distribution company or a natural gas distribution company that is not
subject to assessments to support the operations of the
PUCO or the office of the consumers' counsel. (D) Nothing in this section shall be construed to mean
that an electric distribution company or a natural gas distribution
company subject to this
section may not cause such appearance or distribute such
statement on a more frequent basis. Sec. 5703.052. There is hereby created in the state
treasury the tax refund fund, from which refunds shall be paid
for taxes illegally or erroneously assessed or collected, or for
any other reason overpaid, that are levied by Chapter 4301.,
4305., 5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747.,
5748., 5749., or 5753., and sections 3737.71, 3905.35, 3905.36,
4303.33, 5707.03, 5725.18, 5727.28, and 5727.38, and
5727.81, and 5727.811 of the
Revised
Code. Refunds for fees illegally or erroneously assessed or
collected, or for any other reason overpaid, that are levied by
sections 3734.90 to 3734.9014 of the Revised Code also shall be
paid from the fund. However, refunds for taxes levied under
section 5739.101 of the Revised Code shall not be paid from the
tax refund fund, but shall be paid as provided in section
5739.104 of the Revised Code. Upon certification by the tax commissioner to the treasurer
of state of a tax refund, fee refund, or tax credit due, or by
the superintendent of insurance of a domestic or foreign
insurance tax refund, the treasurer of state may place the amount
certified to the credit of the fund. The certified amount
transferred shall be derived from current receipts of the same
tax or the fee for which the refund arose or, in the case of a
tax credit refund, from the current receipts of the taxes levied
by sections 5739.02 and 5741.02 of the Revised Code. If the tax refund arises from a tax payable to the general
revenue fund, and current receipts from that source are
inadequate to make the transfer of the amount so certified, the
treasurer of state may transfer such certified amount from
current receipts of the sales tax levied by section 5739.02 of
the Revised Code. Sec. 5717.02. Except as otherwise provided by law, appeals
from final determinations by the tax commissioner of any
preliminary, amended, or final tax assessments, reassessments,
valuations, determinations, findings, computations, or orders
made by the commissioner may be taken to the board of tax appeals
by the taxpayer, by the person to whom notice of the tax
assessment, reassessment, valuation, determination, finding,
computation, or order by the commissioner is required by law to
be given, by the director of budget and management if the
revenues affected by such decision would accrue primarily to the
state treasury, or by the county auditors of the counties to the
undivided general tax funds of which the revenues affected by
such decision would primarily accrue. Appeals from the
redetermination by the director of development under division (B)
of section 5709.64 or division (A) of section 5709.66 of the Revised Code may
be taken to the board
of tax appeals by the enterprise to which notice of the
redetermination is required by law to be given. Appeals from a
decision of the tax commissioner concerning an application for a
property tax exemption may be taken to the board of tax appeals
by a school district that filed a statement concerning such
application under division (C) of section 5715.27 of the Revised
Code. Appeals from a redetermination by the director of job and family
services under section 5733.42 of the Revised Code may be taken by the person to which the
notice of the redetermination is required by law to be given under that
section. Such appeals shall be taken by the filing of a notice of
appeal with the board, and with the tax commissioner if the tax
commissioner's action is the subject of the appeal or, with the
director of
development if the that director's action is the subject of the
appeal, or with the director of job and family services if that director's
action is the subject of the appeal. The notice of appeal shall be filed
within sixty days after service of the
notice of the tax
assessment, reassessment,
valuation, determination, finding, computation, or order by the
commissioner or redetermination by the director has been given as provided in
section 5703.37, 5709.64, 5709.66, or 5733.42
of the Revised Code. The notice of such
appeal is filed by may be filed in person or by certified mail,
express mail, or authorized delivery service. If the
notice of such appeal is filed by certified mail, express mail, or
authorized delivery service as provided in section 5703.056 of the Revised
Code, the date of the United States postmark placed on the sender's receipt by
the postal service of the date of receipt recorded by the authorized delivery
service shall be treated as the date of filing. The notice of appeal shall
have attached thereto and incorporated therein by reference a
true copy of the notice sent by the commissioner or director to
the taxpayer or, enterprise, or other person of
the final determination or redetermination complained of, and shall also
specify the errors therein complained of, but failure to attach a copy of such
notice and incorporate it by reference in the notice of appeal
does not invalidate the appeal. Upon the filing of a notice of appeal, the tax commissioner
or the director, as appropriate, shall certify to the board a
transcript of the record of the proceedings before the
commissioner or director, together with all evidence considered by
the commissioner or director in connection therewith. Such
appeals or applications may be heard by the board at its office in Columbus or
in the county where the appellant resides, or it may cause its examiners to
conduct such hearings and to
report to it their findings for affirmation or rejection. The
board may order the appeal to be heard upon the record and the
evidence certified to it by the commissioner or director, but
upon the application of any interested party the board shall
order the hearing of additional evidence, and it may make such
investigation concerning the appeal as it considers proper. Sec. 5725.31. (A) As used in this section: (1) "Eligible employee" and "eligible training costs" have the
same meanings as in section 5733.42 of the Revised Code. (2) "Tax assessed under this chapter" means,
in the case of a dealer in
intangibles, the tax assessed under sections 5725.13 to 5725.17 of the Revised Code and, in
the case of a domestic insurance
company, the taxes assessed under sections 5725.18 to 5725.26 of the Revised Code. (3) "Taxpayer" means a dealer in
intangibles or a domestic insurance company subject to a tax assessed
under this chapter. (4) "Credit period" means,
in the case of
a dealer in intangibles, the calendar year ending on the thirty-first day
of December next preceding the day the report is required
to be returned under section 5725.14 of the Revised Code and, in
the case of a domestic insurance company, the calendar year ending on the
thirty-first day of December next preceding the day the
annual statement is required to be returned under section 5725.18 or
5725.181 of the Revised Code. (B) There is hereby allowed a nonrefundable credit against the
tax imposed under this chapter for a taxpayer for which a tax credit
certificate is issued under section 5733.42 of the Revised Code.
The credit may be claimed for credit periods
beginning
on or after January 1, 2001, and ending on or before
December 31,
2003. The amount of the credit shall equal one-half of the average of the
eligible training costs paid
or incurred by the taxpayer during the three calendar years immediately
preceding the credit period for which the credit is claimed,
not to exceed one thousand dollars for each eligible employee on account of
whom
eligible training costs were paid or incurred by the taxpayer. The credit
claimed by a taxpayer each credit period shall not
exceed one hundred thousand dollars. A taxpayer shall apply to the director of job and family services
for a tax credit certificate in the manner prescribed by division
(C) of section 5733.42 of the Revised Code. Divisions (C)
to (H) of that section govern the tax credit allowed by this
section, except that "credit period" shall be substituted for "tax year with
respect to a calendar
year" wherever that phrase appears in those divisions and that a taxpayer
under this section shall be considered a taxpayer for the purposes of that
section. A taxpayer may carry forward the credit allowed under this section
to the extent that the credit exceeds the taxpayer's tax due for the
credit period. The taxpayer may carry the excess credit forward for
three credit periods following the credit period for which the
credit is first claimed under this section. The credit allowed by this
section is in addition to any credit allowed under section
5729.031 of the Revised Code. Sec. 5727.11. (A) Except as otherwise provided in this section, the true
value of all taxable property required
by division (A)(2) or (3) of section 5727.06 of the Revised Code to be
assessed by the tax commissioner shall be determined by a method
of valuation using cost as capitalized on the public utility's
books and records less composite annual allowances as prescribed
by the commissioner. If the commissioner finds that application
of this method will not result in the determination of true value
of the public utility's taxable property, the commissioner
may use another method of valuation. (B) The (1) Except as provided in division
(B)(2)
of this section, the true value of current gas stored underground is
the cost of that gas shown on the books and records of the public
utility on the thirty-first day of December of the preceding
year. (2) For tax year 2001 and thereafter, the true value of current
gas stored
underground is the
quotient
obtained by dividing (a) the average value of the
current gas
stored underground, which shall be determined by adding the value of the gas
on hand at the end of
each calendar month in the calendar year preceding the tax year, or, if
applicable, the last day of business of each month for a partial
month, divided by (b) the total number of months the natural
gas
company was in business during the calendar year prior to the beginning of the
tax
year. with the approval of the tax commissioner, a natural gas company may
use a date
other than the end of a calendar month to value its current gas
stored underground. (C) The true value of noncurrent gas stored underground is
thirty-five per cent of the cost of that gas shown on the books
and records of the public utility on the thirty-first day of
December of the preceding year. (D)(1) Except as provided in division
(D)(2) of this section, the true value of the production
equipment of an
electric company and the true value of all taxable property of a
rural electric company is the equipment's or property's cost as
capitalized on the company's books and records less fifty per
cent of that cost as an allowance for depreciation and
obsolescence. (2) The true value of the production equipment of an
electric company or rural electric company purchased, transferred, or placed
into service
after the effective date of this
amendment is the purchase price of the equipment as capitalized on
the company's books and records less composite annual allowances
as prescribed by the tax commissioner. (E) The true value of taxable property described in
division (A)(2) or (3) of section 5727.06 of the Revised Code shall not
include the allowance for funds used during construction or
interest during construction that has been capitalized on
the
public utility's books and records as part of the total cost of
the taxable property. This division shall not apply to the taxable
property of an electric company or a rural electric company, excluding
transmission and distribution property, first placed into service after
December 31, 2000, or to the taxable property a person purchases,
which includes transfers, if that property was used in business by the seller
prior to the purchase. (F) The true value of watercraft owned or operated by a
water transportation
company shall be determined by multiplying the true value of the watercraft as
determined under division (A) of this section by a
fraction, the numerator of
which is the number of revenue-earning miles traveled by the watercraft in the
waters of this state and the denominator of which is the number of
revenue-earning miles traveled by the watercraft in all waters. (G) The cost of property subject to a sale and leaseback
transaction is the cost of the property as capitalized on the books and
records of the public utility owning the
property immediately prior to the sale and leaseback transaction. (H) The cost as capitalized on the books and records of a public
utility includes amounts capitalized that represent regulatory assets, if such
amounts previously were included on the company's books and records as
capitalized costs of taxable personal property. (I) Any change in the composite annual allowances as prescribed
by the commissioner on a prospective basis shall not be admissible in any
judicial or administrative action or proceeding as evidence of value with
regard to prior years' taxes. Information about the business, property, or
transactions of any taxpayer obtained by the commissioner for the purpose of
adopting or modifying the composite annual allowances shall not be subject to
discovery or disclosure. Sec. 5727.111. The taxable property of each public
utility, except a railroad company, and of each interexchange
telecommunications company shall be assessed at the following
percentages of true value: (A)(1) Except as provided in division
(A)(2) of this section, fifty per cent in the case of a rural
electric company; (2) For tax year 2001 and thereafter, fifty per cent in the case of
the taxable transmission and
distribution property of a rural electric
company, and twenty-five per cent for all its other taxable
property; (B) In the case of a telephone or telegraph company, twenty-five
per cent for taxable property first subject to taxation in this state for tax
year 1995 or thereafter, and eighty-eight per cent for all other taxable
property; (C) Eighty-eight (1) Except as provided in division
(C)(2) of this section, eighty-eight per cent in the case of a
natural gas or pipe-line company; (2) For tax year 2001 and thereafter, twenty-five per cent in the
case of a natural gas company. (D) Eighty-eight per cent in the case of a pipe-line,
water-works, or heating company; (E)(1) Except as provided in division
(E)(2) or (3) of this section, one hundred per cent in the
case of the taxable production equipment of an electric company and
eighty-eight per cent for all its other taxable property; (2) For tax year 2001 and thereafter, eighty-eight per cent in
the
case of
the taxable transmission and distribution property of an
electric company, and twenty-five per cent for all its
other taxable
property; (3) Property listed and assessed under divisions (B)(1)
and (2) of section 5711.22 of the Revised Code and leased to an electric
company shall
continue to be assessed at one hundred per cent for production equipment and
eighty-eight per cent for all such other taxable property until January
1, 2002. (F) Twenty-five per cent in the case of an
interexchange telecommunications company; (G) Twenty-five per cent in the case of a water
transportation company. Sec. 5727.33. (A) For the purpose of computing the excise tax imposed by
section 5727.24 or 5727.30 of the Revised Code, the entire gross receipts
actually received from all
sources for business done within this state are taxable gross receipts,
excluding the receipts described in divisions (B), (C),
(D), and (E) of this section. The gross receipts for the
tax year of
each
telegraph and telephone company shall be computed for the period of the
first day of July prior to the
tax year to the thirtieth day of June of the tax year.
The gross receipts of each natural gas company, including a combined
company's
taxable gross receipts attributed to a natural gas company activity, shall be
computed in the manner required by section
5727.25 of the Revised Code. The gross
receipts for the tax year of any other
public utility subject to section 5727.30 of the Revised
Code
shall be computed for the period of the first
day of May prior to the tax year to the
thirtieth day of April of
the tax year. (B) In ascertaining and determining the gross receipts of
each public utility subject to this
section, the following gross receipts are excluded: (1) All receipts derived wholly from interstate business; (2) All receipts derived wholly from business done for or
with the federal government; (3)
All receipts derived wholly from the transmission or delivery of
electricity to or for a rural electric company, provided that the
electricity that has been so transmitted or delivered is for resale by
the rural electric company. This division does not apply to tax years
2002 and thereafter. (4) All receipts from the sale of merchandise; (5) All receipts from sales to other public utilities,
except railroad, telegraph, and telephone companies, for resale,
provided the other public utility is subject to the tax levied by
section
5727.24 or 5727.30 of the Revised Code. (C) In ascertaining and determining the gross receipts of a
telephone company, the following gross receipts are excluded: (1) Receipts of amounts billed on behalf of other
entities; (2) Receipts from sales to other telephone companies for
resale, as defined in division (A)(7) of section 5727.32 of
the
Revised Code; (3) Receipts from incoming or outgoing wide area
transmission
service or wide area transmission type service, including eight
hundred or eight-hundred-type service; (4) Receipts from private communications service as
described
in division (AA)(2) of section 5739.01 of the Revised Code; (5) Receipts from sales to providers of
telecommunications
service for resale, as defined in division (A)(7) of
section 5727.32
of the Revised Code. (D) In ascertaining and determining the gross receipts of an electric
company, receipts derived from the provision of electricity and other
services to a qualified former owner of the production facilities
that generated the electricity from which those receipts were
derived are excluded. This division does not apply to tax years
2002 and thereafter. As used in this division, a "qualified
former owner" means a person who meets both of the following
conditions: (1) On or before October 11, 1991, the person had sold to an
electric company part of the production facility at which the electricity is
generated, and, for at least twenty years prior to
that sale, the facility was used to generate electricity, but it
was not owned in whole or part during that period by an electric
company. (2) At the time the electric company provided the electricity or
other services for which the exclusion is claimed, the person, or a
successor or assign of the person, owned not less than a twenty per cent
ownership of the production facility and the rights to not less
than twenty per cent of the production of that facility. (E) In ascertaining and determining the gross receipts of a
natural gas company, receipts of amounts billed
on behalf of other entities
are excluded. Transportation
The tax imposed by section 5729.811 of the Revised Code, along with transportation and
billing and collection fees charged to other entities,
shall be included in the gross receipts of a natural gas company. (F) In ascertaining and determining the gross receipts of
a combined company subject to the tax imposed by
section
5727.30 of the Revised Code,
all receipts derived from operating as a natural gas company that are
subject to the tax imposed by section 5727.24 of the
Revised Code are excluded. (G) Except as provided in division (H)
of this section, the amount ascertained by the commissioner under this
section, less a deduction of twenty-five thousand dollars, shall
be the taxable gross receipts of such companies for business done
within
this state for that year. (H) The amount ascertained under this
section, less the following deduction, shall be the taxable gross
receipts of a
natural gas company or combined company subject to the tax imposed by section
5727.24 of the
Revised Code for business done within this state: (1) For a natural gas company that files quarterly returns of the
tax imposed by section 5727.24 of the Revised Code, six
thousand
two hundred fifty dollars for each quarterly return; (2) For a natural gas company that files an annual return of the
tax imposed by section 5727.24 of the Revised Code,
twenty-five
thousand dollars for each annual return; (3) For a combined company, twenty-five thousand
dollars on the annual statement filed under section 5727.31 of the
Revised Code. A combined company shall
not be entitled to a deduction in computing gross receipts subject to the
tax imposed by section 5727.24 of the Revised Code. Sec. 5727.80. As used in sections 5727.80 to 5727.95 of
the Revised
Code: (A) "Electric
distribution company" means either of the following: (1) A person who distributes electricity through a meter
of an end user in this state or to an unmetered location in this state; (2) The end user of electricity in this state,
if the end user obtains
electricity that is not distributed or transmitted to the end
user by an electric distribution company that is required to
remit the tax imposed by section 5727.81 of the
Revised
Code. "Electric distribution company" does not include the end user
of electricity in this state who self-generates electricity that is used
directly by that end user on the same site that the electricity is
generated. (B) "Kilowatt hour" means one thousand watt hours of
electricity. (C) "Meter For an electric distribution company, "meter of an
end
user in this state" means the last meter used to measure the kilowatt hours
distributed by an electric distribution company to
a location in this state, or the last meter located outside of this
state
that is used to measure the kilowatt hours consumed at a location in this
state, or, if no meter is used, the estimated
kilowatt hours distributed to an unmetered location in this state. (D) "Person" has the same meaning as in section 5701.01 of the
Revised Code, but also includes a political subdivision of
the state. (E) "Municipal electric
utility" means a municipal corporation that owns or operates a
system for the distribution of electricity. (F) "Qualified end user" means an end user of electricity that
uses more than three million
kilowatt hours of electricity at one manufacturing location in this state for
a calendar day for use in a qualifying manufacturing process that
features. (G) "qualified regeneration" means a process to convert
electricity to a form of stored energy by means such as using
electricity to compress air for storage or to pump water to an elevated
storage reservoir, if such stored energy is subsequently used to
generate electricity for sale to others primarily during periods
when there is peak demand for electricity. (H) "qualified regeneration meter" means the last meter used to
measure electricity used in a qualified regeneration process. (I) "qualifying manufacturing process" means the performance
of an electrochemical reaction in
which electrons from direct current electricity remain a part of
the product being manufactured. (G)(J) "Self-assessing purchaser" means a purchaser that
meets all
the requirements of, and pays the excise tax in accordance with, division
(C) of section 5727.81 of the Revised Code.
(H) "Six month revenue differential for self-assessing
purchasers" means thirty-one million six hundred fifty thousand
dollars less the amount paid under division (C)(1)(a) of section
5727.81 of the Revised Code by all self-assessing purchasers for
the six-month period ending in the month prior to the date of the
calculations required under divisions (C)(1)(b) and (c) of section
5727.81 of the Revised Code.
(I) "Twelve month revenue differential for self-assessing
purchasers" means sixty-three million three hundred thousand
dollars less the amount paid under division (C)(1)(a) of section
5727.81 of the Revised Code by all self-assessing purchasers for
the twelve-month period ending in the month prior to the date of
the calculation required under division (C)(1)(d) of section
5727.81 of the Revised Code.
(K) "Natural gas distribution company" means a
natural gas company or a combined company, as defined in section 5727.01 of the Revised Code,
that is subject to the
excise tax imposed by section 5727.24 of the Revised Code and that distributes
natural gas through a meter of an end user in this state or to an unmetered
location in this state. (L) "MCF" means one thousand cubic feet. (M) For a natural gas distribution company, "meter of an end user
in this state" means the last meter used to measure the MCF of
natural gas distributed by a natural gas distribution company to a location in
this state, or the last
meter located outside of this state that is used to measure the
natural gas consumed at a location in this state. (N) "Flex customer" means an industrial or a commercial facility
that has consumed more than one billion cubic feet of natural gas a year at a
single location during any of the previous five years, or an industrial or
a commercial end user of
natural gas that purchases natural gas distribution services from a natural
gas distribution company at discounted
rates or charges established in any of the following: (1) A special arrangement subject to review and regulation by the
public utilities commission under section 4905.31 of the Revised
Code; (2) A special arrangement with a natural gas distribution company
pursuant to a municipal ordinance; (3) A variable rate schedule that permits rates to vary between
defined amounts, provided that the schedule is on file with the public
utilities commission. An end user that meets this definition on January 1, 2000, or
thereafter is a "flex customer" for purposes of determining the rate of
taxation under division (D) of section 5727.811 of the
Revised Code. Sec. 5727.81. (A) For
the purpose of raising revenue for public education and state
and local government operations, an excise tax is hereby levied
and imposed on an electric distribution company for all electricity
distributed by such company beginning with the measurement period that
has includes May 1, 2001, as part of its
measurement period, at the following rates
per kilowatt hour of electricity distributed in a thirty-day period by
the company through a meter of an end user in this state:
| KILOWATT HOURS DISTRIBUTED TO | | RATE PER |
| AN END USER | | KILOWATT HOUR |
| For the first 2,000 | | $.00465 |
| For the next 2,001 to 15,000 | | $.00419 |
| For 15,001 and above | | $.00363 |
If no meter is used to measure the kilowatt hours of electricity
distributed by the company, the rates shall apply to the estimated kilowatt
hours of electricity distributed to an unmetered location in this state. The electric distribution company shall base the monthly tax on the
kilowatt hours of electricity distributed to an end user
through the meter of the end user that is not measured for a thirty-day period
by dividing the days
in the measurement period into the total kilowatt hours measured during
the measurement period to obtain a daily average usage. The tax shall
be determined by obtaining the sum of divisions (A)(1), (2), and
(3) of this section and multiplying that amount by the number of days in
the measurement period: (1) Multiplying $0.00465 per kilowatt hour for the first
sixty-seven kilowatt hours distributed using a daily average; (2) Multiplying $0.00419 for the next sixty-eight to five hundred
kilowatt hours distributed using a daily average; (3) Multiplying $0.00363 for the remaining kilowatt hours
distributed using a daily average. Except as provided in division (C) of this section, the
electric distribution company shall pay the tax to the treasurer of
state in accordance with section 5727.82 of the Revised
Code. Only the distribution of electricity through
a meter of an end user in
this state shall be used by the electric distribution company to
compute the amount or estimated amount of tax due. In the event a meter is
not actually read for a measurement period, the estimated kilowatt hours
distributed by an electric distribution company to collect bill
for its distribution charges may shall be used. (B) Except as provided in division (C) of this section,
each electric distribution company shall pay the tax imposed by this
section in all of the following circumstances: (1) The electricity is distributed by the company through
a meter of an end user in this state; (2) The company is distributing electricity through a
meter located in another state, but the electricity is consumed
in this state in the manner prescribed by the tax
commissioner; (3) The company is distributing electricity in this state
without the use of a meter, but the electricity is consumed in
this state as estimated and in the manner prescribed by
the tax commissioner. (C)(1)(a) A As used in division (C) of this section: (a) "Total price of electricity" means the aggregate value in
money of anything paid or transferred, or promised to be paid or transferred,
to obtain electricity or electric
service, including but not limited to the value paid or promised
to be paid for the transmission or distribution of electricity and
for transition costs as described in Chapter 4928. of the Revised Code. (b) "Package" means the provision or the acquisition, at a
combined price, of electricity with other services or products, or any
combination thereof, such as natural gas or other fuels; energy
management products, software, and services; machinery and
equipment acquisition; and financing agreements. (c) "single location" means a facility located on contiguous
property separated only by a roadway, railway, or waterway. (2) Division (C) of this section applies to any
commercial or industrial
purchaser that receives purchaser's receipt of electricity
through a meter of an end user in this
state and consumes, over the course of the previous calendar year, more
than
one hundred twenty or through more than one meter at a single location
in this state in a quantity that exceeds forty-five million kilowatt hours
of electricity
over the course of the
preceding calendar year, or any commercial or industrial purchaser will
consume more than forty-five
million kilowatt hours of electricity over the course of the
succeeding twelve months as estimated by the tax commissioner.
The tax commissioner shall make such an estimate upon the written
request by an applicant for registration as a self-assessing
purchaser under this division. Such a purchaser
may elect to self-assess the excise tax imposed by this section at the
rate of $.00075 per kilowatt hour on not more than five hundred four
million kilowatt hours, and four per cent of the total price of
electricity delivered distributed to that meter or location. A
qualified end user that receives electricity through a meter of an end
user in this state
or through more than one meter at a
single location in this state and that consumes, over the
course of the previous calendar year, more than forty-five million
kilowatt hours in other than its qualifying manufacturing process, may
elect to self-assess the tax as allowed by this division
with respect to the electricity used in other than its qualifying
manufacturing process. Payment of the tax
shall be made directly to the treasurer of state in accordance
with divisions (A)(3)(4) and (4)(5) of section
5727.82 of the
Revised Code or, if. If the electric
distribution company serving the self-assessing purchaser is a
municipal electric utility and the purchaser is within the
municipal corporation's corporate limits, payment shall be made to such
municipal
corporation's general fund and reports shall be filed in accordance
with division divisions
(A)(2)(4) and (5) of
section 5727.82 of the Revised Code, and upon paying in this
manner, the
except that "municipal corporation" shall be substituted for
"treasurer of state" and "tax commissioner." A
self-assessing purchaser that pays the excise tax as provided in this
division shall not be required to pay the excise tax to
the electric distribution company from which its
electricity is delivered distributed.
If a self-assessing purchaser's receipt of electricity is not subject to the
tax as measured under this division, the tax on the receipt of such
electricity shall be measured and paid as provided in division (A)
of this section. (b) On or before December 10, 2001, the tax commissioner shall
calculate the six month revenue differential for self-assessing
purchasers. If the six month revenue differential is greater than
five hundred thousand dollars, the tax commissioner shall increase
the percentage of total price tax rate to be charged for the
six-month period beginning in the month following that in which
the calculation is done. The new tax rate shall be the rate in
effect during the current period multiplied by the sum of one plus
the product of (i) a fraction, the numerator of which is the six
month revenue differential multiplied by two and the denominator
of which is the amount paid during the period by all
self-assessing purchasers on the percentage of total price basis
and (ii) a fraction, the numerator of which is total kilowatt
hours consumed during the period by self-assessing purchasers and
the denominator of which is eleven billion twenty-five million.
If the six month revenue differential is less than negative five
hundred thousand dollars, the tax commissioner shall decrease the
percentage of total price tax rate to be charged for the six month
period beginning in the month following that in which the
calculation is made. The new tax rate shall be the rate in effect
during the current period multiplied by the sum of one plus the
product of (i) a fraction, the numerator of which is the six month
revenue differential multiplied by two and the denominator of
which is the amount paid during the period by all self-assessing
purchasers on the percentage of total price basis and (ii) a
fraction, the numerator of which is eleven billion twenty-five
million and the denominator of which is total kilowatt hours
consumed during the period by self-assessing purchasers.
(c) On or before June 10, 2002, the tax commissioner shall
calculate the six month revenue differential for self-assessing
purchasers. If the six month revenue differential is greater than
five hundred thousand dollars, the tax commissioner shall increase
the percentage of total price tax rate to be charged for the
twelve month period beginning in the month following that in which
the calculation is made. The new tax rate shall be the rate in
effect during the current period multiplied by the sum of one plus
the product of (i) a fraction, the numerator of which is the six
month revenue differential and the denominator of which is the
amount paid during the period by all self-assessing purchasers on
the percentage of total price basis and (ii) a fraction, the
numerator of which is total kilowatt hours consumed during the
period by self-assessing purchasers and the denominator of which
is eleven billion twenty-five million.
If the six month revenue deferential is less than negative five
hundred thousand dollars, the tax commissioner shall decrease the
percentage of total price tax rate to be charged for the twelve month
period beginning in the month following that in which the
calculation is made. The new tax rate shall be the rate in effect
during the current period multiplied by the sum of one plus the
product of (i) a fraction, the numerator of which is the six month
revenue differential and the denominator of which is the amount
paid during the period by all self-assessing purchasers on the
percentage of total price basis and (ii) a fraction, the numerator
of which is eleven billion twenty-five million and the denominator
of which is total kilowatt hours consumed during the period by
self-assessing purchasers.
(d) On or before June 10, 2003, 2004, 2005, 2006, and 2007, the
tax commissioner shall calculate the twelve month revenue
differential for self-assessing purchasers. If the twelve month
revenue differential is greater than one million dollars, the tax
commissioner shall increase the percentage of total price tax rate
to be charged for the twelve month period beginning in the month
following that in which the calculation is made, except that the
rate calculated in 2007 shall become the permanent tax rate. In
each year, the new tax rate shall be the rate in effect during the
current period multiplied by the sum of one plus a fraction, the
numerator of which is the twelve month revenue differential and
the denominator of which is the amount paid during the period by
all self-assessing purchasers on the percentage of total price
basis.
If the revenue differential is less than negative one million
dollars, the tax commissioner shall decrease the percentage of
total price tax rate to be charged for the twelve month period
beginning in the month following that in which the calculation is
made, except that the rate calculated in 2007 shall become the
permanent tax rate. In each year, the new tax rate shall be the
rate in effect during the current period multiplied by the sum of
one plus a fraction, the numerator of which is the twelve month
revenue differential and the denominator of which is the amount
paid during the period by all self-assessing purchasers on the
percentage of price basis.
(2)(3) In the case of
the acquisition of a package, unless the elements of the
package are separately
stated isolating the total price of electricity from the price of the
remaining elements of the
package, the tax imposed under this section applies to the entire
price of the package. if the elements of the package are
separately stated, the tax imposed under this section applies to
the total price of the electricity.
(4) Any electric supplier that sells electricity as part of a
package shall separately state to the purchaser the total price of the
electricity and, upon request by the tax commissioner, the total price
of each of the other elements of the package. (5) The tax commissioner may adopt rules relating to the
computation of the total PRICE of electricity with respect to
self-assessing purchasers, which may include rules to establish
the total price of electricity purchased as part of a package. (6) Application for registration as a self-assessing purchaser
shall be made for each qualifying meter or location, on a form
prescribed by the tax commissioner.
In the case of an applicant
applying on the basis of an estimated consumption of forty-five
million kilowatt hours over the course of the succeeding twelve
months, the applicant shall provide such information as the tax
commissioner considers to be necessary to estimate such
consumption. At the time of making the
application and by the first day of May of each year, excluding
May 1, 2000, a self-assessing purchaser shall pay a fee of five
hundred dollars to the treasurer of state for each qualifying meter or
location. The treasurer of state shall deposit to such fees
into the
kilowatt hour excise tax administration fund, which is hereby
created in the state treasury. Money in the fund shall be used to
defray the tax commissioner's cost in administering the tax owed
under section 5727.81 of the Revised Code by self-assessing
purchasers. After the application is approved by the tax
commissioner, the
registration shall remain in effect until canceled by the
registrant upon written notification to the commissioner of the
election to pay the tax in accordance with division (A) of this
section, or by the tax commissioner for not paying the tax or fee under
division (C) of this section, or meeting the qualifications in
division (C)(1)(2) of this section. The tax commissioner
shall give
written notice to the electric
distribution company from which
electricity is delivered to a self-assessing purchaser of the purchaser's
self-assessing status, and the electric
distribution company is relieved of the obligation
to pay the tax imposed by division (A) of this section for
electricity distributed to that self-assessing purchaser
until it is notified by
the tax commissioner that the self-assessing purchaser's
registration is canceled. Within fifteen days of notification of
the canceled registration, the electric distribution company shall
be responsible for payment of the tax imposed by division (A) of
this section on electricity distributed to a purchaser that is no longer
registered as a
self-assessing purchaser. A self-assessing purchaser with a canceled
registration must file a
report and remit the tax imposed by division (A) of this section
on all electricity it receives for any measurement period prior to the tax
being reported and paid
by the electric distribution company. A self-assessing purchaser
whose registration is canceled by the tax commissioner is not eligible to
register as a self-assessing purchaser for two years after the registration is
canceled. (7) If the tax commissioner cancels the self-assessing
registration of a purchaser registered on the basis of its
estimated consumption because the purchaser does not consume at
least forty-five million kilowatt hours of electricity over the
course of the twelve-month period for which the estimate was made,
the tax commissioner shall assess and collect from the purchaser
the difference between (a) the amount of tax that would have
been
payable under division (A) of this section on the electricity
distributed to the purchaser during that period and (b) the
amount
of tax paid by the purchaser on such electricity pursuant to
division (C)(2)(a) of this section. The assessment shall be
paid
within sixty days after the tax commissioner issues it, regardless
of whether the purchaser files a petition for reassessment under
section 5727.89 of the Revised Code covering that period. If the
purchaser does not pay the assessment within the time prescribed,
the amount assessed is subject to the additional charge and the
interest prescribed by divisions (B) and (C) of section
5727.82 of the Revised Code, and is subject to assessment under section
5727.89 of the Revised Code. If the purchaser is a qualified end
user, division (C)(7) of this section applies only to electricity
it consumes in other than its qualifying manufacturing process. (D) The tax imposed by
this section does not apply to the distribution of any kilowatt hours
of electricity to the federal government, to an end user located at a federal
facility that uses electricity for the enrichment of uranium, to a
qualified regeneration meter, or to an end
user for any day the end
user is a qualified end user. The exemption under this division for a
qualified end user only applies to the manufacturing location where the
qualified end user uses more than three million kilowatt hours per day in a
qualifying manufacturing process. Sec. 5727.811. (A) For the purpose of raising revenue for public
education and state and local government operations, an excise tax is hereby
levied on every natural
gas distribution company for all natural gas volumes billed by, or on behalf
of, the company on and after July 1, 2001. Except as provided in
divisions (C) or (D) of this section, the tax shall be
levied at the
following
rates per MCF of natural gas distributed by the
company through a meter of an end user in this state:
| MCF DISTRIBUTED TO AN END USER | RATE PER MCF |
| For the first 100 MCF per month | $.1593 |
| For the next 101 to 2000 MCF per
month | $.0877 |
| For 2001 and above MCF per month | $.0411 |
If no meter is used to measure the MCF of natural gas
distributed
by the company, the rates shall apply to the estimated mcf of
natural gas distributed to an unmetered location in this state. (B) A natural gas distribution company shall base the tax on
the MCF of natural gas distributed to an end user through the
meter of the end user in this state that is estimated to be consumed by the
end user as reflected on the end user's
customer statement from the natural gas distribution company. The
natural gas distribution company shall pay the tax levied by this
section to the treasurer of state in accordance with section
5727.82 of the Revised Code. (C)
A natural gas distribution company with fifty thousand customers
or less may elect to apply the rates specified in division (A) of
this section to the aggregate of the natural gas distributed by the company
through the meter of all its customers in this
state, and upon such election, this method shall be used to determine the
amount of tax to be paid by such company. (D)
A natural gas distribution company shall pay the tax imposed
by this section at the rate of $.02 per MCF of natural gas
distributed by the company through the meter of
a flex customer. The natural gas distribution company correspondingly shall
reduce the per MCF rate that it charges the flex customer for
natural gas distribution services by $.02 per MCF of natural gas
distributed to the flex customer. (E) Except as provided in division (F) of this section,
each natural gas distribution company shall pay the tax imposed by this
section in all of the following circumstances: (1) The natural gas is distributed by the company through a meter
of an end user in this state; (2) The natural gas distribution company is distributing natural
gas through a meter located in another state, but the natural gas is
consumed in this state in the manner prescribed by the tax
commissioner; (3) The natural gas distribution company is distributing natural
gas in this state without the use of a meter, but the natural gas is
consumed in this state as estimated and in the manner prescribed by the
tax commissioner. (F) The tax levied by this section does not apply to the
distribution of natural gas to the federal government,
or natural gas produced by an end user in this state that is consumed
by that end user or its affiliates and is not distributed through
the facilities of a natural gas company. Sec. 5727.82. (A)(1) Except as provided in divisions
(A)(2)(3) and (D) of this section, by the
twentieth day of each month, each electric distribution company
required to pay the tax imposed by section 5727.81 of the
Revised
Code shall file with the
treasurer of state a return as prescribed by the tax
commissioner and shall make payment of the full amount of tax
due for the preceding month. The first payment of this tax shall be made on
or before June 20, 2001. (2) By the twentieth day of May, August,
November, and February, each natural gas distribution
company required to pay the tax imposed by section 5727.811 of the
Revised Code shall file with the treasurer of state a return
as prescribed by the tax commissioner and shall make payment of the full
amount of tax due for the preceding quarter. The first payment of this tax
shall be made on or before November 20, 2001, for the quarter ending
September 30, 2001. (3) If the electric distribution company required to pay
the tax imposed by section 5727.81 of the
Revised
Code is a municipal electric
utility, it may retain in its general fund that portion
of the tax on the kilowatt hours distributed to end users
located within the boundaries of the municipal corporation.
However, the municipal electric utility shall make payment in
accordance with division (A)(1)
of this section of the tax due on the kilowatt hours distributed
to end users located outside the boundaries of the municipal
corporation. (3)(4) By the twentieth day of each
month, each self-assessing purchaser that under division (C) of
section 5727.81 of the Revised Code pays directly to the
treasurer
of state the tax imposed by section 5727.81 of the Revised
Code
shall file with the treasurer of state a return as prescribed by the tax
commissioner and shall make payment of the full amount of
the tax due for the preceding month.
(4)(5) As prescribed by the tax commissioner, the
a return shall be signed by
the company or self-assessing purchaser required to
file it, or an authorized employee, officer, or agent of the
company or purchaser. The treasurer of state shall mark on the return the
date it was received and indicate payment or nonpayment of the tax shown to
be due on the return. The treasurer of state immediately shall transmit
all returns to the tax commissioner. The return shall be deemed
filed when received by the treasurer of state.
(B) Any natural gas distribution company, electric distribution
company, or self-assessing purchaser
required by this section to file a return
who fails to file it and pay the tax within the period prescribed shall pay an
additional charge of fifty dollars or ten per cent of the tax
required to be paid for the reporting period, whichever is
greater. The tax commissioner may collect the additional charge
by assessment pursuant to section 5727.89 of the
Revised
Code. The commissioner may
abate all or a portion of the additional charge and may adopt
rules governing such abatements. (C) If any tax due is
not paid timely in accordance with this section, the natural gas
distribution company, electric
distribution company, or self-assessing purchaser liable for the tax
shall pay
interest, calculated at the rate per annum prescribed by section 5703.47
of the Revised
Code, from the date the tax
payment was due to the date of payment or to the date an
assessment is issued, whichever occurs first. Interest shall be
paid in the same manner as the tax, and the commissioner may
collect the interest by assessment pursuant to section 5727.89
of the Revised Code. (D) Not later than the tenth day of each month, a qualified end
user not making the election to
self-assess under division (c) of section 5727.81 of the Revised Code
shall report in writing to the electric distribution company
that distributes electricity to the end user the kilowatt hours
that were consumed as a qualified end user in a qualifying manufacturing
process for the prior month and
the number of days, if any, on which the end user was not a
qualified end user.
For each calendar day during
that month, a qualified end user shall report the kilowatt hours that
were not used in a qualifying manufacturing process.
For each calendar day the end user was not a
qualified end user, the end user shall report in writing to the
electric distribution company the total number of kilowatt hours used
on
that day, and the electric distribution company shall pay the tax
imposed under section 5727.81 of the Revised Code on each
kilowatt hour that was not distributed to a qualified end user in a
qualifying manufacturing process.
The electric distribution company may rely in good faith on a
qualified end user's report filed under this division. If it
is determined that the end user was not a qualified end user for
any calendar day or the quantity of electricity used by the
qualified end user in a qualifying manufacturing process was
overstated, the tax commissioner shall
assess and collect any tax imposed under section 5727.81 of the
Revised Code directly from the
qualified end user. As requested by the commissioner, each end user
reporting to an electric distribution company that it is a
qualified end user shall provide documentation to the commissioner that
establishes
the volume of electricity consumed daily by the qualified end
user and the total number of kilowatt hours consumed in a qualifying
manufacturing process. Sec. 5727.83. (A) An A natural gas distribution company, an
electric distribution company, or
a self-assessing purchaser
shall remit each monthly tax payment by
electronic funds transfer as
prescribed by divisions (B) and (C) of this section. The tax commissioner shall notify each natural gas distribution
company, electric distribution company,
and self-assessing purchaser of the obligation to
remit taxes by electronic funds transfer,
shall maintain an updated list of those companies and purchasers, and
shall timely
certify to the treasurer of state the list and any additions
thereto or deletions therefrom. Failure by the tax
commissioner to notify a company or self-assessing purchaser subject to
this section to remit taxes by electronic funds transfer does not
relieve the company or self-assessing purchaser of its obligation to remit
taxes in that manner. (B) An A natural gas distribution company, an electric
distribution company, or a self-assessing purchaser
required by this section to
remit
payments by electronic funds transfer shall remit
such payments to the treasurer of state in the manner prescribed by
rules adopted by the treasurer of state under section 113.061 of the Revised Code, and on or
before the dates specified under section 5727.82 of the Revised Code. The payment of taxes
by electronic
funds transfer does not affect a company's or self-assessing purchaser's
obligation to file the monthly a return as required under
section 5727.82 of the Revised Code. (C) An A natural gas distribution company, an electric
distribution company, or a self-assessing purchaser
required by this section to remit taxes by electronic funds transfer may apply
to the treasurer of state in
the manner prescribed by the treasurer of state to be excused from that
requirement. The treasurer of state may excuse the company or self-assessing
purchaser from
remittance by electronic funds transfer for good cause shown for
the period of time requested by the company or self-assessing purchaser or for
a portion of that period. The treasurer of state shall notify the tax
commissioner and
the company or self-assessing purchaser of the treasurer of state's decision
as soon as is practicable. (D) If an a natural gas distribution company, an electric
distribution company, or a self-assessing
purchaser required by this section
to remit taxes by
electronic funds transfer remits those taxes by some means other
than by electronic funds transfer as prescribed by this section
and the rules adopted by the treasurer of state, and the
treasurer of state determines that such failure was not due to reasonable
cause or was due to willful neglect, the treasurer of state shall notify
the tax commissioner of the failure to remit by electronic funds
transfer and shall provide the commissioner with any information
used in making that determination. The tax commissioner may
collect an additional charge by assessment in the manner
prescribed by section 5727.89 of the Revised Code. The
additional charge shall equal five per cent of the amount of the
taxes required to be paid by electronic funds transfer, but shall
not exceed five thousand dollars. Any additional charge assessed
under this section is in addition to any other penalty or charge
imposed under this chapter, and shall be considered as revenue
arising from the tax imposed under this chapter. The tax
commissioner may abate all or a portion of such a charge and may
adopt rules governing such abatements. No additional charge shall be assessed under this division
against a natural gas distribution company, an electric
distribution company, or a self-assessing purchaser that has
been notified of its
obligation
to remit taxes under this section and that remits its first two tax
payments after such notification by some means other than
electronic funds transfer. The additional charge may be assessed
upon the remittance of any subsequent tax payment that the company or
purchaser remits by
dome means other than electronic funds transfer. Sec. 5727.84. (A) As used in this section and sections 5727.85,
5727.86, and
5727.87 of the Revised Code: (1) "School district" means a city, local, or exempted village
school district. (2) "Joint vocational school district" means a joint vocational
school district created under section 3311.16 of the Revised
Code,
and includes a cooperative education school district created under
section 3311.52 or 3311.521 of the Revised Code and a county
school financing district created under section 3311.50 of the
Revised Code. (3) "Local taxing unit" means a subdivision or taxing unit, as defined in
section 5705.01 of the Revised Code, a park district
created under Chapter 1545. of the Revised Code, or
a township park district established under section 511.23 of the Revised Code,
but excludes
school districts
and joint vocational school districts. (4) "State education aid" means the sum of the state basic aid
and state special education aid amounts computed for a school district
under divisions (A) and (C) of section 3317.022 of the
Revised
Code. (5) "State education aid offset" means the amount certified for
each school district under division (A)(1) of section 5727.85 of
the Revised Code. (6) "Adjusted total taxable value" has the same meaning as in
section 3317.02 of the Revised Code. (7) "Electric company tax value loss" means the amount determined
under division (D) of this section. (8) "Natural gas company tax value loss" means the amount determined under
division (E) of this section. (9) "Tax value loss" means the amount determined under division
(C) of this section sum of the electric company tax value loss and the
natural gas company tax value loss. (8)(10) "Fixed-rate levy" means any tax levied on property
other than
a fixed-sum levy.
(9)(11) "Fixed-rate levy loss" means the amount determined
under
division (D)(G) of this section.
(10)(12) "Fixed-sum levy" means a tax levied on property at
whatever
rate is required to produce a specified amount of tax money or to pay
debt charges, and includes school district emergency levies imposed
pursuant to section 5705.194 of the Revised Code.
(11)(13) "Fixed-sum levy loss" means the amount determined
under
division (E)(H) of this section.
(12)(14) "Consumer price index" means the consumer price
index (all
items, all urban consumers) prepared by the bureau of labor statistics
of the United States department of labor.
(B) All money arising from the tax imposed by section 5727.81 of
the Revised Code shall be credited as follows: (1) Fifty-nine and nine hundred seventy-six one-thousandths per
cent, plus an amount equal to seventy per cent of the total
state education aid offset, shall be
credited to the general revenue fund. (2) Two and six hundred forty-six one-thousandths per cent shall
be credited to the local government fund, for distribution in accordance
with section 5747.50 of the Revised Code. (3) Three hundred seventy-eight one-thousandths per cent shall be
credited to the local government revenue assistance fund, for
distribution in accordance with section 5747.61 of the Revised
Code. (4) Twenty-five and nine-tenths per cent, less an amount equal to
seventy per cent of the total state education aid offset, shall
be credited to the school district
property tax replacement fund, which is hereby created in the state
treasury for the purpose of making the payments described in
section 5727.85 of the Revised Code. (5) Eleven and one-tenth per cent shall be credited to the local
government property tax replacement fund, which is hereby created in the
state treasury for the purpose of making the payments described in
section 5727.86 of the Revised Code. (6) Beginning in the fiscal year in which payments are required to be made
under sections 5727.85 and 5727.86 of the Revised Code, if the revenue arising
from the tax levied by
section 5727.81 of the Revised Code is less than five
hundred fifty-two million
dollars, the amount credited to the general revenue fund under division
(B)(1) of this section shall be reduced by the amount
necessary to credit to each of the funds in divisions
(B)(2), (3), (4), and (5) of this section the amount it would have
received if the tax did raise five hundred fifty-two million dollars for that
fiscal year. The tax commissioner shall certify to the director of budget and
management the amounts that shall be credited under this division. (C)
All money arising from the tax imposed by section 5727.811 of the
Revised Code shall be credited as follows: (1) Seventy per cent, less an amount equal to thirty per cent of
the total state education aid offset, shall be credited to the school
district property tax replacement fund for the purpose of making the
payments described in section 5727.85 of the Revised
Code. (2) Thirty per cent shall be credited to the local government
property tax replacement fund for the purpose of making the payments
described in section 5727.86 of the Revised Code. (3) An amount equal to thirty per cent of the total state
education aid offset shall be credited to the general revenue fund. (4) Beginning in the fiscal year in which payments are required
to be made under sections 5727.85 and 5727.86 of the Revised
Code,
if the revenue arising from the tax levied by section 5727.811 of the
Revised Code is less than ninety million dollars, the
amount credited to the general revenue fund under division (c)(3)
of this section shall be reduced by the amount necessary to credit to each of
the funds in
divisions (C)(1) and (2) of this section the amount that it would
have received if the tax did raise ninety million dollars for that fiscal
year. The tax
commissioner shall certify to the director of budget and
management the amounts that shall be credited under this division. (D)
Not later than January 1, 2002, the tax commissioner shall
determine for each taxing district its electric company tax value loss,
which is the sum
of the amounts described in divisions (C)(D)(1) and (2) of
this section: (1) The difference obtained by subtracting the amount described
in division (C)(D)(1)(b) from the amount described in division
(C)(D)(1)(a) of this section. (a) The value of electric company and rural electric company
tangible personal property as assessed by the tax commissioner for tax year
1998 on a preliminary
assessment, or an amended preliminary assessment if issued prior to
March 1, 1999, and as apportioned to the taxing district
for tax year 1998; (b) The value of electric company and rural electric company
tangible personal property as assessed by the tax commissioner for
tax year 1998 had the property been apportioned to the taxing
district for tax year 2001, and assessed at the rates in effect
for tax year 2001. (2) The difference obtained by subtracting the amount described
in division (C)(D)(2)(b) from the amount described in division
(C)(D)(2)(a) of this section. (a) The three-year average for tax years 1996, 1997, and 1998 of
the assessed value from nuclear fuel materials and assemblies assessed
against a person under Chapter 5711. of the Revised Code
from the leasing of them to an electric company for those respective tax
years, as reflected in the preliminary assessments; (b) The three-year average assessed value from nuclear fuel
materials and assemblies assessed under division (C)(D)(2)(a)
of this
section for tax years 1996, 1997, and 1998, as reflected in the preliminary
assessments, using an assessment rate of
twenty-five per cent. (E) Not later than January 1, 2002, the tax commissioner
shall determine for each taxing district its natural gas company tax value
loss, which
is the sum of the amounts described in divisions (E)(1) and
(2) of this section: (1) The difference obtained by subtracting the amount described
in division (E)(1)(b) from the amount described in
division
(e)(1)(a) of this section. (a) The value of all natural gas company tangible personal
property, other than property described in division (E)(2) of this
section, as assessed by the tax commissioner for tax year 1999 on a
preliminary assessment, or an
amended preliminary assessment if issued prior to March 1, 2000,
and apportioned to the taxing district for tax year 1999; (b) The value of all natural gas company tangible personal
property, other than property described in division (E)(2) of this
section, as assessed by the tax commissioner for tax year 1999 had
the property been apportioned to the taxing district for tax year
2001, and assessed at the rates in effect for tax year 2001. (2) The difference in the value of current gas obtained by
subtracting the amount described in division
(E)(2)(b) from the
amount described in division (e)(2)(a) of this
section. (a) The three-year average assessed value of current gas as
assessed by the tax commissioner for tax years 1997, 1998, and 1999 on a
preliminary assessment, or an amended
preliminary assessment if issued prior to March 1, 2001, and as
apportioned in the taxing district for those respective years; (b) The three-year average assessed value from current gas under
division (e)(2)(a) of this section for tax years
1997, 1998, and
1999, as reflected in the preliminary assessment, using an assessment
rate of twenty-five per cent. (F)
The tax commissioner may request that natural gas companies,
electric companies, and rural
electric companies file a report to help determine the tax value loss
under division (C) divisions (D) and (E) of
this section. The report shall be filed
within thirty days of the commissioner's request. A company that fails to
file the report or does not timely file the
report is subject to the penalty in section 5727.60 of the Revised
Code. The tax commissioner shall certify to the department of education the tax
value loss determined under this division for each school district and joint
vocational school district.
(D)(G) Not later than January 1, 2002, the tax commissioner
shall
determine for each school district, joint vocational school district, and
local taxing unit its fixed-rate levy loss, which is the sum of its
electric company tax value loss
multiplied by
the tax rate in effect in tax year 1998 for fixed-rate levies and its
natural gas company tax value loss multiplied by the tax rate in effect in tax
year 1999 for fixed-rate levies.
(E)(H) Not later than January 1, 2002, the tax commissioner
shall
determine for each school district, joint vocational school district, and
local taxing unit its fixed-sum levy loss, which is
the amount obtained by subtracting the amount described in
division (E)(H)(2) of this section from the amount described
in
division (E)(H)(1) of this section:
(1) The sum of the electric company tax value loss multiplied by the
tax rate in effect in
tax year 1998, and the natural gas company tax value loss multiplied
by the tax rate in effect in tax year 1999, for fixed-sum levies
for all taxing districts within
each school district, joint vocational school district, and local
taxing unit. For the years 2002 through 2006, this computation shall
include school district emergency levies that existed in 1998
in the case
of the electric company tax value loss, and 1999 in the case of the natural
gas company tax value loss, and
all other fixed-sum levies that existed in 1998 in the case of the electric
company tax value loss and 1999 in the case of the natural gas company tax
value loss
and continue to be
charged in the tax year preceding the distribution year. For the years 2007
through 2016 in the case of school district emergency levies, and for all
years after 2006 in the case of all other fixed-sum levies, this
computation shall exclude all
fixed-sum levies that
existed in 1998 in the case of the electric company tax value loss and 1999
in the case of the natural gas company tax value loss, but are no
longer in effect in the tax year
preceding the distribution year. For the purposes of this section, an
emergency levy that existed in 1998 in the case of the electric company tax
value loss, and 1999 in the case of the natural gas company tax value
loss, continues to exist in a year beginning on
or after January 1, 2007, but before January 1, 2017, if, in
that year, the board of education levies a school district emergency levy for
an annual sum at least equal to the annual sum levied by the board in tax year
1998 or 1999, respectively, less the amount of the payment
certified under
this division for 2002. (2) The total taxable value in tax year 1998 in the case of the electric
company tax value loss and 1999 in the case of the natural gas company tax
value loss in each school
district, joint vocational school district, and local taxing unit
multiplied by one-fourth of one mill. If the computation amount computed under division
(E)(H) of this section for any
school district, joint vocational school district, or local taxing unit is
greater than zero, the one-fourth of one mill that is
subtracted amount shall equal the fixed-sum levy loss reimbursed
pursuant to division (E) of section 5727.85 of the
Revised Code or division (A)(2)
of section 5727.86 of the Revised Code, and the one-fourth of one
mill that is subtracted under division (H)(2) of this section
shall be apportioned
among
all contributing fixed-sum levies in the proportion of each levy to the sum of
all fixed-sum levies within each school district,
joint vocational school district, or local taxing unit. (F)(I) Notwithstanding divisions (C), (D), and
(E), (G), and (H) of this section, in
computing the tax value loss, fixed-rate levy
loss, and fixed-sum levy loss, the tax commissioner shall use the greater of
the 1998 tax rate or the 1999 tax rate in the case of levy losses
associated with the electric company tax value loss, but the 1999 tax rate
shall not
include for this purpose any tax levy approved by the voters after
June 30, 1999, and the tax commissioner shall use the greater of the
1999 or the 2000 tax rate in the case of levy losses associated with the
natural gas company tax value loss, but the 2000 tax rate shall not include
for this purpose any tax levy approved by the voters after November
7,
2000.
(J) Not later than January 1, 2002, the tax commissioner
shall certify to the department of education the tax value loss determined
under divisions (D) and (E) of this section for each taxing
district. Sec. 5727.85. (A) By the thirty-first day of July of
each year, beginning in 2002 and
ending in 2016, the department of education shall determine the following for
each school district eligible for payment under division
(C) of this section: (1) The state education aid offset, which is the difference
obtained by subtracting the amount described in division
(A)(1)(b)
of this section from the amount described in division
(A)(1)(a) of
this section: (a) The state education aid computed for the school district for
the current fiscal year on the basis of the adjusted total taxable
value; (b) The state education aid that would be computed for the school
district for the current fiscal year if the district's adjusted total taxable value included the tax
value loss for all taxing districts in the school district. (2) The difference obtained by subtracting the state education
aid offset determined under division (A)(1) of this section from
the fixed-rate levy loss determined under division (D)(G) of
section
5727.84 of the Revised Code for all taxing districts in each
school district. The department of education shall certify the amount so
determined to the director of budget and management. (B) Not later than the thirty-first day of October of
the years 2006 through 2016, the
department of education shall determine all of the following for each
school district: (1) The amount obtained by subtracting the district's state
education aid computed for fiscal year 2002 from the district's state
education aid computed for the current fiscal year; (2) The inflation-adjusted property tax loss. The
inflation-adjusted property tax loss equals the fixed-rate levy loss
determined
under division (D)(G) of section 5727.84 of the Revised
Code for all taxing districts in each school district plus the
product obtained by multiplying that loss by the cumulative percentage
increase in the consumer price index from January 1, 2002, to the
thirtieth day of June of the current year. (3) The difference obtained by subtracting the amount computed
under division (B)(1) from the amount of the inflation-adjusted
property tax loss. If this difference is zero or a negative number, no
further payments shall be made under division (C) of this
section to the school district from the school district property tax
replacement fund. If
the difference is greater than zero, the department of education shall certify
the amount
calculated in division (A)(2) of this section to the director of
budget and management not later than the thirty-first day of December
of each year,
beginning in 2006 and ending in 2016. (C) For all taxing districts in each school district, the
director of budget and management shall pay from the school district property
tax replacement fund to the county undivided
income tax fund in the proper county treasury all of the
following: (1) In February 2002, one-half of the fixed-rate levy loss
certified under division (D)(G) of section 5727.84 of the
Revised
Code on or before the day prescribed for
the settlement under division (A) of section 321.24 of the
Revised Code. (2) From August 2002 through August 2006, one-half of
the
amount certified for that fiscal year under division (A)(2) of
this section on or before each of the days prescribed for the settlements
under divisions (A) and (C) of section 321.24 of the
Revised Code. (3) From February 2007 through August 2016, one-half of
the
amount certified for that calendar year under division (B)(3) of
this section on or before each of the days prescribed for the settlements
under divisions (A) and (C) of section 321.24 of the
Revised Code. The county treasurer shall distribute amounts paid under divisions
(C)(1), (2), and (3) of this section to the proper school district
as if they had been levied and collected as taxes, and the school district
shall apportion the amounts so received among
its funds in the same proportions as if those amounts had been
levied and collected as taxes. (D) Not later than January 1, 2002, for all taxing
districts in
each joint vocational school district, the tax commissioner shall certify to
the director of budget and management the fixed-rate levy loss determined
under
division (D)(G) of section 5727.84 of the Revised
Code. From
February 2002 to August 2016, the director shall pay from
the school district property tax replacement fund to the county
undivided income tax fund in the proper county treasury, one-half
of the fixed-rate levy loss so certified for each year on or
before each of the days prescribed for the settlements under
divisions (A) and (C) of section 321.24 of the
Revised Code. The
county treasurer shall distribute such amounts to the proper joint vocational school district as if they had been levied and collected as taxes, and the joint vocational school district shall
apportion the amounts so received among its funds in the same
proportions as if those amounts had been levied and collected as
taxes. (E)(1) Not later than January 1, 2002, for each fixed-sum levy levied
by each school district
or joint vocational school district and for each year for
which a certification determination is made under division
(E)(H) of section 5727.84
of the Revised Code that a fixed-sum levy loss is to be reimbursed, the
tax commissioner shall certify to the director of
budget and
management the fixed-sum levy loss determined under
that division. The
certification shall cover a time period sufficient to include all fixed-sum
levies in effect in 1998 to June 30, 1999,
for which the tax commissioner made such a
determination. The director shall pay from the
school district property tax replacement fund to the county
undivided income tax fund in the proper county treasury one-half
of the fixed-sum levy loss so certified for each year on or before
each of the days prescribed for the settlements under divisions
(A) and (C) of section 321.24 of
the Revised Code. The county treasurer shall distribute the
amounts to the proper school district or joint vocational school district as
if they had been levied and collected as taxes, and the
district shall apportion the amounts so received among its funds
in the same proportions as if those amounts had been levied and
collected as taxes. No payments shall be made under this division
once all fixed-sum levies in effect in 1998 to June 30, 1999, are no
longer in effect. (2) Beginning in 2003, by the thirty-first day of
January of each year, the tax commissioner shall review the
certification originally made
under division (E)(1) of this section. If the commissioner
determines that a fixed-sum levy that had been scheduled to be reimbursed in
the current
year has expired, a revised certification for that and all
subsequent years shall be made to the director of budget and
management. (F) By August 5, 2002, the tax commissioner shall
estimate the
amount of money in the school district property tax replacement fund in
excess of the amount necessary to make payments in that month under
divisions (C), (D), and (E) of this section.
Notwithstanding division (C) of this section, the department of
education, in consultation with the tax commissioner and from those excess
funds, may pay any
school district four and one-half times the amount certified under
division (A)(2) of this section. Payments shall be made in order
from the smallest annual loss to the largest annual loss. A payment made
under this division shall
be in lieu of the payment to be made in August 2002 under
division (C)(2) of this section. No payments shall be made in the
manner established in this division to any school district with annual losses
from permanent
improvement fixed-rate levies in excess of twenty thousand
dollars, or annual losses from any other fixed-rate levies in
excess of twenty thousand dollars. A school district receiving a
payment under this division is no longer entitled to any further
payments under division (C) of this section. (G) On the thirty-first day of July of 2003, 2004, 2005,
and 2006, and on the
thirty-first day of January and July of 2007 and each year
thereafter, if the amount credited to the school district property
tax replacement fund exceeds the amount needed to make payments
from the fund under divisions (C), (D), and (E) of
this section in
the following month, the director of budget and management shall
distribute
the excess among school districts and joint vocational school
districts. The
amount
distributed to each district shall bear the same proportion to the
excess remaining in the fund as the ADM of the district bears to
the ADM of all of the districts. For the purpose of this
division, "ADM" means the formula ADM in the case of a
school
district, and the average daily membership reported under section
3317.03
of the Revised Code in the case of a joint vocational
school district. If, in the opinion of the director of budget and management, the
excess remaining in the school district property tax replacement
fund in any year is not sufficient to warrant distribution under
this division, the excess shall remain to the credit of the fund. Amounts received by a school district or joint vocational school
district under this division shall be used exclusively for capital
improvements. (H) If the total amount in the school district property tax
replacement fund is insufficient to make all payments under
divisions (C), (D), and (E) of this section, the payments required
under division (E) of this section shall be made first in their
entirety. After all payments are made under division (E) of this
section, payments under divisions (C) and (D) of this section
shall be made from the balance of money available in the
proportion of each school district's or joint vocational school
district's payment amount to the total amount of payments under
divisions (C) and (D) of this section. (I) If all or a part of the territory of a school district or
joint vocational school district is merged with or transferred to
another district, the tax commissioner shall adjust the payments
made under this section to each of the districts in proportion to
the tax value loss apportioned to the merged or transferred
territory. (J) There is hereby created the electric public utility
property tax study
committee, effective January 1, 2011. The committee shall consist
of the following seven members: the tax commissioner, three
members of the senate appointed by the president of the senate,
and three members of the house of representatives appointed by the
speaker of the house of representatives. The appointments shall
be made not later than January 31, 2011. The tax commissioner shall be the
chairperson of the committee. The committee shall study the extent to which each school district
or joint vocational school district has been compensated, under
sections 5727.84 and 5727.85 of the Revised Code as enacted by
Substitute Senate Bill No. 3 of the 123rd general assembly and any
subsequent acts, for the property tax loss caused by the reduction
in the assessment rates for natural gas, electric, and
rural electric company
tangible personal property. Not later than June 30, 2011, the
committee shall issue a report of its findings, including any
recommendations for providing additional compensation for the
property tax loss or regarding remedial legislation, to the
president of the senate and the speaker of the house of
representatives, at which time the committee shall cease to exist. The department of taxation and department of education shall
provide such information and assistance as is required for the
committee to carry out its duties. Sec. 5727.86. (A) Not later than January 1, 2002, the tax
commissioner shall certify to the director of budget and
management, for all taxing districts in each local taxing unit,
the fixed-rate levy loss determined under division (D)(G), and
the
fixed-sum levy loss determined under division (E)(H), of
section
5727.84 of the Revised Code. Based on that certification, the
director shall compute the payments to be made to each local
taxing unit for each year according to divisions (A)(1), (2), and
(3) and division (E) of this section, and shall distribute the
payments in the manner prescribed by division (C) of this section.
The certification of the fixed-sum levy loss shall cover a period
of time period sufficient to include all fixed-sum levies in
effect in
1998 to June 30, 1999, until they are no longer in effect for which the
tax commissioner determined, pursuant to division (H) of section
5727.84 of the Revised Code, that a fixed-sum levy loss is
to be reimbursed. (1) Except as provided in division (A)(3) of this section, for
fixed-rate levy losses determined under division (D)(G) of
section
5727.84 of the Revised Code, payments shall be made in each of the
following years at the following percentage of the fixed-rate levy
loss certified under division (A) of this section:
| 2002 | | 100% |
| 2003 | | 100% |
| 2004 | | 100% |
| 2005 | | 100% |
| 2006 | | 100% |
| 2007 | | 80% |
| 2008 | | 80% |
| 2009 | | 80% |
| 2010 | | 80% |
| 2011 | | 80% |
| 2012 | | 66.7% |
| 2013 | | 53.4% |
| 2014 | | 40.1% |
| 2015 | | 26.8% |
| 2016 | | 13.5% |
| 2017 and thereafter | | 0% |
(2) For fixed-sum levy losses determined under division
(E)(H) of
section 5727.84 of the Revised Code, payments shall be made in the amount
of one hundred per cent of the
fixed-sum levy loss certified under division (A) of this section
for payments required to be made in 2002 and thereafter. (3) A local taxing unit in a county of less than two hundred
fifty square miles that receives eighty per cent or more of its
combined general fund and bond retirement fund revenues from
property taxes and rollbacks based on 1997 actual revenues as
presented in its 1999 tax budget, and in which electric companies
and rural electric companies comprise over twenty per cent of its
property valuation, shall receive one hundred per cent of its
fixed-rate levy losses from electric company tax value losses certified
under division (A) of this
section in years 2002 to 2016. (B) Beginning in 2003, by the thirty-first day of January of each
year, the tax commissioner shall review the certification
originally made under division (A) of this section of the
fixed-sum levy loss determined under division (E)(H) of
section
5727.84 of the Revised Code. If the commissioner determines that
a fixed-sum levy that had been scheduled to be reimbursed in the
current year has expired, a revised certification for that and all
subsequent years shall be made. (C) Payments to local taxing units required to be made under
divisions (A) and (E) of this section shall be paid from the local
government property tax replacement fund to the county undivided
income tax fund in the proper county treasury. One-half of the
amount certified under those divisions shall be paid on or before
each of the days prescribed for the settlements under divisions
(A) and (C) of section 321.24 of the Revised Code. The county
treasurer shall distribute amounts paid under division (A) of this
section to the proper local taxing unit as if they had been levied
and collected as taxes, and the local taxing unit shall apportion
the amounts so received among its funds in the same proportions as
if those amounts had been levied and collected as taxes. Amounts
distributed under division (E) of this section shall be credited
to the general fund of the local taxing unit that receives them. (D) By February 5, 2002, the tax commissioner shall estimate the
amount of money in the local government property tax replacement
fund in excess of the amount necessary to make payments in that
month under division (C) of this section. Notwithstanding
division (A) of this section, the tax commissioner may pay any
local taxing unit, from those excess funds, nine and four-tenths
times the amount computed for 2002 under division (A)(1) of this
section. A payment made under this division shall be in lieu of
the payment to be made in February 2002 under division (A)(1) of
this section. A local taxing unit receiving a payment under this
division will no longer be entitled to any further payments under
division (A)(1) of this section.
A payment made under this division shall be paid from the local
government property tax replacement fund to the county undivided income
tax fund in the proper county treasury. The county treasurer
shall distribute the payment to the proper local taxing unit as if
it had been levied and collected as taxes, and the local taxing
unit shall apportion the amounts so received among its funds in
the same proportions as if those amounts had been levied and
collected as taxes. (E) On the thirty-first day of July of 2002, 2003, 2004, 2005,
and 2006, and on the thirty-first day of January and July of 2007
and each year thereafter, if the amount credited to the local
government property tax replacement fund exceeds the amount needed
to be distributed from the fund under division (A) of this section
in the following month, the director of budget and management
shall distribute the excess to each county as follows: (1) One-half shall be distributed to each county in proportion to
each county's population. (2) One-half shall be distributed to each county in the
proportion that the amounts determined under divisions (D)(G)
and (E)(H)
of section 5727.84 of the Revised Code for all local taxing
districts units in
the county is of the total amounts so determined for all local taxing
districts units in the state. The amounts distributed to each county under this division shall
be distributed by the county budget commission to each local
taxing unit in the county in the proportion that the unit's
current taxes charged and payable are of the total current taxes
charged and payable of all the local taxing units in the county.
As used in this division, "current taxes charged and payable"
means the taxes charged and payable as most recently determined
for local taxing units in the county. If, in the opinion of the director of budget and management, the
excess remaining in the local government property tax replacement
fund in any year is not sufficient to warrant distribution under
this division, the excess shall remain to the credit of the fund. (F) If the total amount in the local government property tax
replacement fund is insufficient to make all payments under
division (C) of this section, the payments required under division
(A)(2) of this section shall be made first in their entirety.
After all such payments are made, payments under divisions (A)(1)
and (3) of this section shall be made from the balance of money
available in the proportion of each local taxing unit's payment
amount to the total amount of all payments to be made under
divisions (A)(1) and (3) of this section. (G) If all or a part of the territories of two or more local
taxing units are merged, or unincorporated territory of a township
is annexed by a municipal corporation, the tax commissioner shall
adjust the payments made under this section to each of the local
taxing units in proportion to the tax value loss apportioned to
the merged or annexed territory, or as otherwise provided by a
written agreement between the legislative authorities of the local
taxing units certified to the tax commissioner not later than the
first day of June of the calendar year in which the payment is to
be made. Sec. 5727.87. (A) As used in this section: (1) "Administrative fees" means the dollar percentages allowed by
the county auditor for services or by the county treasurer as
fees, or paid to the credit of the real estate assessment fund,
under divisions (A) and (B) of section 319.54 and division (A) of
section 321.26 of the Revised Code. (2) "Administrative fee loss" means a county's loss of
administrative fees due to its tax value loss, determined as
follows: (a) For purposes of the determination made under division (B) of
this section in the years 2002 through 2006, the administrative
fee loss shall be computed by multiplying the amounts determined
for all taxing districts in the county under divisions (D)(G)
and (E)(H)
of section 5727.84 of the Revised Code by nine thousand six
hundred fifty-nine ten-thousandths of a per cent, if total taxes
collected in the county in tax year 1998 exceeded one hundred
fifty million dollars, or one and one thousand one hundred
fifty-nine ten-thousandths of a per cent, if total taxes collected
in the county in tax year 1998 were one hundred fifty million
dollars or less; (b) For purposes of the determination under division (B) of this
section in the years 2007 through 2011, the administrative fee
loss shall be determined by subtracting from the dollar amount of
administrative fees collected in the county in tax year 1998, the
dollar amount of administrative fees collected in the county in
the current calendar year. (B) Not later than the first day of June of 2002 through 2011,
the county auditor shall determine the administrative fee loss for
the county and certify it to the county budget commission.
Notwithstanding divisions (C), (D), and (E) of section 5727.85 and
division (C) of section 5727.86 of the Revised Code, prior to
distribution by the county treasurer of the payments provided
under those divisions, the county budget commission shall deduct
from those payments the amount of the administrative fee loss
certified by the county auditor, as follows: (1) Seventy per cent of the administrative fee loss shall be
deducted from the payments provided under divisions (C), (D), and
(E) of section 5727.85 of the Revised Code. (2) Thirty per cent of the administrative fee loss shall be
deducted from the payments provided under division (C) of section
5727.86 of the Revised Code. (C) On or before each of the days prescribed for the settlements
under divisions (A) and (C) of section 321.24 of the Revised Code
in the years 2002 through 2011, the county budget commission shall
pay one-half of the amount of the administrative fee loss to the
county auditor, county treasurer, or real estate assessment fund
as if the amount had been allowed as administrative fees, and
shall deposit the amount in the same funds as if allowed as
administrative fees. After payment of the administrative fee loss on or before August
10, 2011, all payments under this section shall cease. Sec. 5727.88. The tax commissioner shall administer
sections 5727.80 to 5727.95 of the
Revised
Code and may adopt such rules
as are necessary to administer those sections.
Upon request of the tax commissioner, the public utilities commission
shall assist the tax commissioner by providing information
regarding any natural gas distribution company or electric distribution
company that is subject to
regulation by the commission. Sec. 5727.89. (A) The tax commissioner may make
an assessment, based on any information in the commissioner's
possession, against any natural gas distribution company,
electric distribution company, self-assessing
purchaser, or qualified end user
that fails
to file a return or pay any tax, interest, or additional charge
as required by sections 5727.80 to 5727.95 of the
Revised Code. When information in the possession of the tax commissioner
indicates that a person liable for the
tax imposed by section 5727.81 or 5727.811 of the
Revised Code has not paid the full
amount of tax due, the commissioner may audit a representative
sample of the person's business and may issue an assessment
based on the audit. The commissioner shall give the person
assessed written notice of the assessment by personal service or
certified mail. The tax commissioner may issue an assessment for which the tax
imposed by section 5727.81 or 5727.811 of the Revised Code was
due and unpaid on the date the person was informed by an agent of the tax
commissioner of an investigation or audit of the person. Any
payment of the tax for the period covered by the assessment, after
the person is so informed, shall be credited against the
assessment. A penalty of fifteen per cent may be added to all
amounts assessed under this section. The commissioner may adopt
rules providing for the imposition and remission of penalties. (B) Unless the party
assessed files with the tax commissioner within sixty
days
after service of the notice of assessment, either personally or
by certified mail, a written petition for reassessment signed by
the party assessed or the party's authorized agent having
knowledge of the facts, the assessment is final and the amount
of the assessment is due and payable from the party assessed to
the treasurer of state. The petition shall indicate the
objections of the party assessed, but additional objections may
be raised in writing prior to the date shown on the final
determination of the tax commissioner. The commissioner shall
grant the petitioner a hearing on the petition, unless waived by
the petitioner. (C) The commissioner may
make any correction to the assessment that the commissioner
finds proper and shall issue a final determination thereon. The
commissioner shall serve a copy of the final determination on
the petitioner either by personal service or by certified mail as provided
in section 5703.37 of the Revised Code,
and the commissioner's decision in the matter is final, subject
to appeal under section 5717.02 of the
Revised Code. (D) After an assessment
becomes final, if any portion of the assessment, including
accrued interest, remains unpaid, a certified copy of the
commissioner's entry making the assessment final may be filed in
the office of the clerk of the court of common pleas in the
county in which the party assessed resides or in which the
party's business is conducted. If the party assessed maintains
no place of business in this state and is not
a resident of this state, the certified copy of the entry
may be filed in the office of the clerk of the court of common
pleas of Franklin
county. The clerk, immediately upon the filing of the entry, shall
enter a judgment for the state against the person assessed in
the amount shown on the entry. The judgment may be filed by the
clerk in a loose-leaf book entitled "special judgments for the
kilowatt-hour tax distribution excise taxes," and shall have the
same effect as other
judgments. Execution shall issue upon the judgment at the request
of the tax commissioner, and all laws applicable to sales on
execution shall apply to sales made under the judgment. The portion of the assessment not paid within sixty days
after the day the assessment was issued shall bear interest at
the rate per annum prescribed by section 5703.47 of the
Revised
Code from the day the tax
commissioner issues the assessment until the day the assessment
is paid. Interest shall be paid in the same manner as the tax
and may be collected by the issuance of an assessment under this
section. (E) If the tax
commissioner believes that collection of the tax imposed by
section 5727.81 or 5727.811 of the Revised
Code will be jeopardized unless
proceedings to collect or secure collection of the tax are
instituted without delay, the commissioner may issue a jeopardy
assessment against the electric distribution company, self-assessing
purchaser, or qualified end user person
liable for
the tax. Upon issuance of the jeopardy assessment, the
commissioner immediately shall file an entry with the clerk of
the court of common pleas in the manner prescribed by division
(D) of this section. Notice of
the jeopardy assessment shall be served on the party assessed or
the party's legal representative within five days of the filing
of the entry with the clerk. The total amount assessed is
immediately due and payable, unless the party assessed files a
petition for reassessment in accordance with division
(B) of this section and
provides security in a form satisfactory to the commissioner and
in an amount sufficient to satisfy the unpaid balance of the
assessment. Full or partial payment of the assessment does not
prejudice the commissioner's consideration of the petition for
reassessment. (F) All money collected
by the tax commissioner under this section shall be paid to the
treasurer of state, and when paid shall be considered as revenue
arising from the tax taxes imposed by section
sections 5727.81 and 5727.811 of the Revised Code. Sec. 5727.90. No assessment of the tax imposed by section
5727.81 or 5727.811 of the Revised
Code shall be made by the tax
commissioner more than four years after the date on which the
return for the period assessed was due or filed, whichever date
is later. This section does not bar an assessment when any of
the following occur: (A) The party assessed
failed to file a return as required by section 5727.82 of the
Revised Code; (B) The party assessed
knowingly filed a false or fraudulent return; (C) The party assessed
and the tax commissioner waived in writing the time
limitation. Sec. 5727.91. (A) The
treasurer of state shall refund the amount of tax paid under
section 5727.81 or 5727.811 of the Revised
Code that was paid illegally or
erroneously, or paid on an illegal or erroneous assessment. An
A natural gas distribution company, an electric distribution
company, or
a self-assessing purchaser shall file an
application for a refund with the tax commissioner on a form prescribed by the
commissioner, within four years of the illegal or erroneous
payment of the tax. Upon the filing of the application, the commissioner shall
determine the amount of refund due and certify that amount to
the director of budget and management and the treasurer of state
for payment from the tax refund fund under section 5703.052 of
the Revised Code. If the application for
refund is for taxes paid on an illegal or erroneous assessment,
the tax commissioner shall include in the certified amount
interest calculated at the rate per annum under section 5703.47
of the Revised Code from the date of
overpayment to the date of the commissioner's
certification. (B) If a natural gas distribution company or an electric
distribution company entitled to a refund of taxes under this
section is indebted to the state for any tax or fee administered
by the tax commissioner that is paid to the state
or any charge, penalty,
or interest arising from such a tax or fee, the amount
refundable may be applied in satisfaction of the debt. If the
amount refundable is less than the amount of the debt, it may be
applied in partial satisfaction of the debt. If the amount
refundable is greater than the amount of the debt, the amount
remaining after satisfaction of the debt shall be refunded. If
the natural gas distribution company or electric distribution company
has more than one such debt,
any debt subject to section 5739.33 or division
(G) of section 5747.07 of the
Revised Code shall be satisfied first.
This section applies only to debts that have become
final. (C)(1) Any electric
distribution company that can substantiate to the tax
commissioner that the tax imposed by section 5727.81 of the
Revised Code was paid on electricity distributed via wires and consumed at a
location outside of this state may
claim a refund in the manner and within the time period
prescribed in division (A) of
this section. (2) Any natural gas distribution company that can substantiate to
the tax commissioner that the tax imposed by section 5727.811 of the Revised Code was paid on
natural gas distributed via its facilities and consumed at a location outside
of this state may claim a refund in the manner and within the time period
prescribed in division (A) of this section. (D) Before a refund is issued under this section, a natural gas company
or an electric
distribution company shall certify, as prescribed by the tax commissioner,
that it either did not include the tax imposed by section 5727.81 of the
Revised Code in the case of an electric distribution company, or the tax
imposed by section 5727.811 of the Revised Code in the case of a natural gas distribution
company, in its distribution charge to an electric
its customer upon which a refund of the tax is claimed, or it has
refunded or
credited to the electric customer the excess distribution charge
related to
the tax that was erroneously included in the electric customer's
distribution
charge. Sec. 5727.92. Every person liable
for the tax imposed by section 5727.81 or 5727.811 of the
Revised
Code shall keep complete and
accurate records of all electric and natural gas distributions and
other records as required by the tax commissioner. The records shall
be preserved for four years after the return for the taxes to
which the records pertain is due or filed, whichever is later.
The records shall be available for inspection by
the tax commissioner or the commissioner's authorized agent,
upon request of the commissioner or such agent. Sec. 5727.93. (A) No
person shall distribute electricity or natural gas to a meter of an end
user in
this state who or to an unmetered location in this state if that
person is not registered with the tax commissioner as an
electric distribution company or a natural gas distribution company. (B) Each person required
to register under division (A)
of this section shall register prior to distributing electricity or natural
gas
to a meter of an end user in this state or to an unmetered location in this
state. The tax commissioner
shall prescribe the form of the registration application. The
commissioner shall assign an identification number to each
registration and notify the registrant of that number. The
registration shall remain in effect until canceled in writing by
the registrant upon the cessation of distributing electricity or natural
gas to
a meter of an end user in this state or to an unmetered location in this
state, or until such registration
is denied, revoked, or canceled by the commissioner. A
registration may be revoked or canceled by the tax commissioner
as provided by Chapter 119. of
the Revised
Code, for failure of an
electric distribution company to pay the tax imposed by section
5727.81 of the Revised Code, failure of a natural gas distribution
company to pay the tax imposed by section 5727.811 of the Revised Code, or
failure of an electric distribution company or a natural gas distribution
company to
comply with sections
5727.80 and 5727.82 to 5727.95 of the Revised
Code. An electric distribution A
company whose registration is denied may petition for a hearing,
in accordance with the procedures set forth in divisions
(B) and (C) of section 5727.89 of the
Revised Code, not later than thirty
days after receiving the denial, and the final determination is
subject to appeal under section 5717.02 of the Revised
Code. (C) The tax commissioner
shall maintain a list of the electric distribution companies
registered under this section. The list shall contain the name
and address of each company registered by the commissioner. The
list and subsequent updates of it shall be open to public inspection. Sec. 5727.94. Each electric distribution company required
to pay the tax imposed by section 5727.81 of the Revised
Code and each natural gas distribution company required to pay the tax
imposed by section 5727.811 of the Revised Code shall provide to its
customers in this state the statement required by section
4933.33 of the Revised
Code. Sec. 5727.95. (A) No natural gas distribution company,
electric distribution company, or
self-assessing purchaser shall fail to file any return or
report required to be filed pursuant to section 5727.82 of the
Revised
Code, or file or cause to be
filed any incomplete, false, or fraudulent return, report, or
statement, or aid or abet another in the filing of any false or
fraudulent return, report, or statement. (B) No person shall
distribute natural gas or electricity to a meter of an end user in this
state or to an unmetered location in this state
without holding a valid registration issued under section
5727.93 of the Revised Code. Sec. 5729.07. As used in this section: (A) "Eligible employee" and "eligible training costs" have the
same meanings as in section 5733.42 of the Revised Code. (B) "Credit period" means the calendar year ending on the
thirty-first day of December next preceding the day the annual
statement is required to be returned under section 5729.02 of the Revised Code. There is hereby allowed a nonrefundable credit against the tax
imposed under this chapter for a foreign insurance company for which a
tax credit certificate is issued under section 5733.42 of the Revised Code. The credit may
be
claimed for credit periods beginning on or after January 1, 2001,
and ending on or before December 31, 2003. The amount of the
credit shall equal one-half of the average of the eligible training costs paid
or incurred by the company
during the three calendar years immediately preceding the credit
period for which the credit is claimed, not to exceed one thousand dollars for
each
eligible employee on account of whom eligible training costs were
paid or incurred by the company. The credit claimed
by a company for each credit period shall not exceed one hundred thousand
dollars. A foreign insurance company shall apply to the director of job and family
services for a tax credit certificate in the manner prescribed by
division (C) of section 5733.42 of the Revised Code. Divisions
(C) to (H) of that section
govern the tax credit allowed by this section, except that "credit period"
shall be substituted for
"tax year with respect to a calendar year" wherever that phrase
appears in those divisions and that the company shall be considered a
taxpayer for the purposes of those divisions. A foreign insurance company may carry forward the credit allowed
under this section to the extent that the credit exceeds the company's
tax due for the credit period. The company may carry the excess credit
forward for three credit periods following the credit period for
which the credit is first claimed under this section. The credit
allowed by this section is in addition to any credit allowed under
section 5729.031 of the Revised Code. The reduction in the tax due under this chapter to the extent of
the credit allowed by this section does not increase the amount of the
tax otherwise due under section 5729.06 of the Revised Code. Sec. 5733.053. (A) As used in this section: (1) "Transfer" means a transaction or series of related
transactions in which a corporation directly or indirectly
transfers or distributes substantially all of its assets or equity to
another
corporation. (2) "Transferor" means a corporation that has made a
transfer if on the completion of the transfer the corporation no
longer does business in this state or owns or uses any capital or
property in this state. (3) "Transferee" means a corporation that received substantially
all of the assets or equity of a transferor in a transfer. (B) A taxpayer is subject to this section only if all of
the following apply: (1) It received the assets or equity of a transferor in a
transfer;
(2) The transferor is not subject to the tax imposed by
section 5733.06 of the Revised Code for the tax year;
(3) The taxpayer would have met the ownership or control
requirements of division (A) of section 5733.052 of the Revised
Code for a combined report with the transferor if both had been
in existence on the first day of January immediately before and
after the transfer and if the transfer had not been made.
(C) For purposes of valuing its issued and outstanding
shares of stock under division (B) of section 5733.05 of the
Revised Code, a taxpayer subject to this section transferee
shall add to its
net income allocated or apportioned to this state, its
transferor's net income allocated or apportioned to this state.
The taxpayer transferee shall add such income in computing its
tax for the
same tax year or years that such income would have been reported
by the transferor if the transfer had not been made and the
transferor had remained subject to the tax imposed by section 5733.06
of the Revised Code on the first day of January of the tax
year. the transferee shall add such income only to the extent the
income
is not required to be reported by the transferor for the purposes of the tax
imposed by divisions (A) and (B) of section 5733.06 of the Revised Code.
(D)(C) The following shall be determined in the same manner
as if the transfer had not been made and the transferor remained
subject to the tax imposed by section 5733.06 of the Revised Code
on the first day of January of the tax year:
(1) The transferor's net income allocated or apportioned
to this state for the tax year under divisions (B)(1) and (2) of
section 5733.05 of the Revised Code; (2) The transferor's requirements for the combination of
net income under section 5733.052 of the Revised Code; (3) Any other determination regarding the transferor that
is necessary to avoid an absurd or unreasonable result in the
application of this chapter. (E)(D) A taxpayer transferee shall be allowed
the following credits and
deductions shall make the following adjustments in the same
manner that they would have been available
to its the transferor:
(1) The credit allowed by credits enumerated in section
5733.061 5733.98 of the Revised
Code with regard to property acquired from its transferor; (2) The deduction under division (I)(1) of section 5733.04
of the Revised Code for net operating losses incurred by its
transferor, subject to the limitations set forth in sections 381
and 382 of the Internal Revenue Code concerning net operating
loss carryovers; (3) The deductions allowed by divisions (C)(2), (D)(2),
(E)(2), (F)(2), (G)(2), and (H) of section 5733.041 of the
Revised Code for prior depreciation addbacks of its transferor; (4) The credit allowed under section 5733.069 of the
Revised Code, and any Any other deduction from or
credit addition to net income under this
chapter involving the transferor the disallowance of which would
be absurd or unreasonable. The allowance of such a deduction or
credit such adjustments to net income and allowance of credits
shall be subject to the limitations set forth in sections
381 and 382 of the Internal Revenue Code and regulations
prescribed thereunder concerning an acquiring corporation's
taking into account the credits of a transferor corporation.
(F)(E) If a taxpayer transferee subject to this
section subsequently
becomes a transferor, any net income that the taxpayer
transferee would have
been required to add under division (C)(B) of this section
shall be
included in its income as a transferor and any credits or
deductions that adjustments to which the taxpayer
transferee would have been entitled to under
division (E)(D) of this section shall be available to it as a
transferor.
Sec. 5733.06. The tax hereby charged each corporation subject to this
chapter shall be the greater of the sum of divisions (A) and (B) of
this section, after the reduction, if any, provided by division
(J) of this section,
or division (C) of this section, after the
reduction, if any, provided by division (J) of this section,
except
that the tax hereby charged each financial institution subject to this
chapter shall be the amount computed under division (D) of this
section: (A) Except as set forth in division (F) of this section,
five and one-tenth per cent upon the first fifty thousand dollars
of the value of the taxpayer's issued and outstanding shares of
stock as determined under division (B) of section 5733.05 of the
Revised Code; (B) Except as set forth in division (F) of this section,
eight and one-half per cent upon the value so
determined in
excess of fifty thousand dollars; or (C) Except as otherwise provided
under division (G) of this section, four mills times that portion
of the value of the issued and outstanding shares of stock as determined under
division (C) of section 5733.05 of the Revised Code. For the purposes of
division (C) of this section, division
(C)(2) of section 5733.065, and division (C) of section 5733.066 of the
Revised Code, the value of the issued and outstanding shares of stock of a
qualified holding company is zero. (D) The tax charged each financial institution subject to
this chapter shall be that portion of the value of the issued and
outstanding shares of stock as determined under division (A) of
section 5733.05 of the Revised Code, multiplied by the
following amounts: (1) For tax years prior to the 1999 tax year, fifteen
mills; (2) For the 1999 tax year, fourteen mills; (3) For tax year 2000 and thereafter, thirteen mills. (E) No tax shall be charged from any corporation that has
been adjudicated bankrupt, or for which a receiver has been
appointed, or that has made a general assignment for the
benefit
of creditors, except for the portion of the then current tax year
during which the tax commissioner finds such corporation had the
power to exercise its corporate franchise unimpaired by such
proceedings or act. The minimum payment for all corporations
shall be fifty dollars. The tax charged to corporations under this chapter for the
privilege of engaging in business in this state, which is an
excise tax levied on the value of the issued and outstanding
shares of stock, shall in no manner be construed as prohibiting
or otherwise limiting the powers of municipal corporations, joint
economic development zones created under section 715.691 of the Revised Code,
and joint economic development districts created under section 715.70 or
715.71 or sections 715.72 to 715.81 of the Revised Code in this state to
impose an income tax on the income of such corporations. (F) If two or more taxpayers satisfy the ownership or control requirements of
division (A) of section 5733.052 of the Revised Code, each such taxpayer shall
substitute "the taxpayer's pro-rata amount" for "fifty thousand dollars" in
divisions (A) and (B) of this section. For purposes of this division, "the
taxpayer's pro-rata amount" is an amount that, when added to the other such
taxpayers' pro-rata amounts, does not exceed fifty thousand dollars. For the
purpose of making that computation, the taxpayer's pro-rata amount shall not
be less than zero. Nothing in this division derogates from or eliminates the
requirement to make the alternative computation of tax under division (C) of
this section. (G) The tax liability of any corporation under division (C) of this section
shall not exceed one hundred fifty thousand dollars. (H)(1) For the purposes of division (H) of this section, "exiting
corporation" means a corporation that satisfies all of the following
conditions: (a) The corporation had nexus with or in this state under the Constitution
of the United States during any portion of a calendar year; (b) The corporation was not a taxpayer corporation described in
division (A) of section 5733.01 of the Revised Code on the first day of January
immediately following that calendar year; (c) The corporation was not a financial institution on the first day of
January immediately following that calendar year; (d) The If the corporation was not a transferor as
defined in section 5733.053 of
the Revised Code during any portion of that calendar year,
the corporation's transferee was not required to add to the transferee's
net income the income of the transferor pursuant to division (B) of
that section; (e) During any portion of that calendar year, or any portion of the
immediately preceding calendar year, the corporation had net income that was
not included in a report filed by the corporation or its transferee
pursuant to section 5733.02, 5733.021, 5733.03,
or 5733.031, or 5733.053 of the Revised Code; (f) The corporation would have been subject to the tax computed under
divisions (A), (B), (C), (F), and (G) of this section if the corporation is
assumed to have had nexus with or in this state under the Constitution of
the
United States be a corporation described in division (A) of
section 5733.01 of the Revised Code on the first day of January immediately following the
calendar
year referred to in which division (H)(1)(a) of this
section refers. (2) For the purposes of division (H) of this section, "unreported net income"
means net income that was not previously included in a report filed pursuant
to section 5733.02, 5733.021, 5733.03, or 5733.031, or
5733.053 of the Revised Code and
that was realized or recognized during the calendar year referred to
in which
division (H)(1) of this section refers or the immediately preceding
calendar year. (3) Each exiting corporation shall pay a tax computed by first allocating and
apportioning the unreported net income pursuant to division (B) of section
5733.05 and section 5733.051 and, if applicable,
section 5733.052 of the
Revised Code. The exiting corporation then shall compute the tax due on its
unreported net income allocated and apportioned to this state by applying
divisions (A), (B), and (F) of this section to that income. (4) Divisions (C) and (G) of this section, division (D)(2) of section
5733.065, and division (C) of section 5733.066 of the Revised Code do not
apply to an exiting corporation, but exiting corporations are subject to every
other provision of this chapter. (5) Notwithstanding division (B) of section 5733.01 or
sections 5733.02, 5733.021, and 5733.03 of the Revised
Code to the contrary, each exiting corporation shall report and pay the tax
due under division (H) of this section on or before the thirty-first day of
May immediately following the calendar year referred to in
which
division (H)(1)(a) of this section refers. The exiting corporation
shall file that
report on the form most recently prescribed by the tax commissioner for the
purposes of complying with sections 5733.02 and 5733.03 of the Revised Code.
Upon request by the corporation, the tax commissioner may extend the date for
filing the report. (6) If, on account of the application of section 5733.053 of the Revised Code, net income
is subject to the tax imposed by divisions (A) and (B) of
this section, such income shall not be subject to the tax imposed by division
(H)(3) of this section. (7) The tax commissioner may adopt rules governing division (H) of
this
section. (I) Any reference in the Revised Code to "the tax imposed by section 5733.06
of the Revised Code" or "the tax due under section 5733.06 of the Revised
Code" includes the taxes imposed under sections 5733.065 and 5733.066 of the
Revised Code. (J)(1) Division (J)
of this section applies solely to a combined company. Section 5733.057 of the
Revised Code shall apply when calculating the adjustments
required by division
(J)
of this section. (2) Subject to division
(J)(4)
of this section, the total tax calculated in divisions
(A) and (B) of this section shall be reduced by an amount
calculated by
multiplying such tax by a fraction, the numerator of which is the
total taxable gross receipts attributed to providing public
utility activity other than as an electric company under section 5727.03 of
the Revised Code for the year upon which the taxable gross
receipts are measured immediately preceding the tax year, and the denominator
of which is the total gross receipts from all sources for the year upon which
the taxable gross receipts are measured immediately preceding the tax year.
Nothing herein shall be construed to
exclude from the denominator any item of income described in
section 5733.051 of the
Revised
Code. (3) Subject to division
(J)(4)
of this section, the total tax calculated in division
(C)
of this section shall be reduced by an amount calculated by
multiplying such tax by the fraction described in division
(J)(2) of this section. (4) In no event shall the reduction provided by
division (J)(2) or (J)(3)
of this section exceed the amount of the excise tax paid in
accordance with section 5727.38 of the Revised Code,
for the year upon which the taxable gross receipts are measured
immediately preceding the tax year. Sec. 5733.40. As used in sections 5733.40 and 5733.41 and Chapter
5747. of the Revised Code: (A)(1) "Adjusted qualifying amount" means either of the following: (a) The net sum of a qualifying investor's distributive share of the
income, gain, expense, or loss of a qualifying pass-through
entity for the qualifying taxable year of the qualifying pass-through
entity multiplied by the apportionment fraction defined in
division (B) of this section, subject to section 5733.401 of
the Revised Code and
divisions (A)(2) to (6) of this
section; (b) The sum of a qualifying beneficiary's share of the qualifying net income
and qualifying net gain distributed by a qualifying trust for the qualifying
taxable year of the qualifying trust multiplied by the apportionment
fraction defined in division (B) of this section, subject to section
5733.401 of the Revised Code and divisions (A)(2)
to (5) of this section. (2) The sum shall exclude any amount which, pursuant to the Constitution of
the United States, the Constitution of Ohio, or any federal law is not subject
to a tax on or measured by net income. (3) The sum shall be increased by all amounts representing expenses other
than amounts described in division
(A)(6) of this section that the taxpayer paid to or incurred with
respect to direct or indirect transactions with one or more
related members, excluding the cost of goods sold calculated in
accordance with section 263A of the Internal Revenue Code and
United States department of the treasury regulations issued thereunder.
Nothing in division (A)(3) of this section shall be construed to limit solely
to this chapter the application of section 263A of the Internal Revenue Code
and United States department of the treasury regulations issued thereunder. (4) The sum shall be increased by all recognized losses,
other than losses from sales of inventory the cost of which is calculated in
accordance with section 263A of the Internal Revenue Code and United States
department of the treasury regulations issued thereunder, with respect to all
direct or indirect transactions with one or more related members. Losses from
the sales of such inventory shall be calculated in accordance with section 482
of the Internal Revenue Code and United States department of the treasury
regulations issued thereunder. Nothing in division (A)(4) of this section
shall be construed to limit solely to this section the application of section
236A 263A and section 482 of the Internal Revenue Code and
United States department
of the treasury regulations issued thereunder. (5) The sum shall be computed without regard to section 5733.051 or division
(D) of section 5733.052 of the Revised Code. (6) For the purposes of Chapters 5733. and 5747. of the Revised Code,
guaranteed payments made by a partnership or by a limited liability company
that is not subject to the tax imposed by section 5733.06 of the
Revised Code, and compensation paid by an S corporation to its shareholders,
shall be considered a distributive share of income
of the partnership, limited liability company, or S corporation. Division
(A)(6) of this section applies only to such payments or such compensation made
or paid to a qualifying an investor who is a related member
to or at any time during the qualifying entity's taxable year holds at
least a twenty per cent direct or indirect interest in the profits or
capital of the
qualifying entity. (B) "Apportionment fraction" means: (1) With respect to a qualifying pass-through entity
other than a financial institution, the fraction calculated
pursuant to division (B)(2) of section 5733.05 of the Revised Code
as if the qualifying pass-through entity were a corporation
subject to the tax imposed by section 5733.06 of the Revised Code; (2) With respect to a qualifying pass-through entity that is a financial
institution, the fraction calculated pursuant to division (C)
of section 5733.056 of the
Revised Code as if the qualifying pass-through entity were a financial
institution subject to the tax imposed by section 5733.06 of the Revised Code. (3) With respect to a qualifying trust, the fraction
calculated pursuant to division (B)(2) of section 5733.05 of the Revised Code
as if the qualifying trust were a corporation subject to the tax imposed by
section 5733.06 of the Revised Code, except that the property, payroll, and
sales fractions shall be
calculated by including in the numerator and denominator of the
fractions only the property, payroll, and sales, respectively,
directly related to the production of income or gain from acquisition,
ownership, use, maintenance, management, or disposition of
tangible personal property located in this state at any time
during the qualifying trust's qualifying taxable year or of real property
located in this state. (C) "Qualifying beneficiary" means any individual that, during
the qualifying taxable year of a qualifying trust, is a beneficiary of that
trust, but does not include an individual who is a resident taxpayer for the
purposes of Chapter 5747. of the Revised Code for the entire qualifying
taxable year of the qualifying trust. (D) "Fiscal year" means an accounting period ending on any day
other than the thirty-first day of December. (E) "Individual" means a natural person. (F) "Month" means a calendar month. (G) "Partnership" has the same meaning as in section 5747.01
of the Revised Code. (H) "Investor" means any person that, during any portion of a
taxable year of a qualifying pass-through entity, is a partner,
member, shareholder, or investor in that qualifying pass-through entity. (I) Except as otherwise provided in section 5733.402 or
5747.401 of the Revised Code, "qualifying investor" means any investor except
those described in divisions (I)(1) to (9) of this section. (1) An investor satisfying one of the descriptions under section
501(a) or (c) of
the Internal Revenue Code, an electing small business trust, a partnership
with equity securities registered with the United States
securities and exchange commission under section 12 of the
"Securities Exchange Act of 1934," as amended, or
an investor described in division (F) of section 3334.01, or division (A)
or (C) of section 5733.09 of the Revised Code for the entire qualifying
taxable
year of the qualifying pass-through entity. (2) An investor who is either an individual or an estate and
is a resident taxpayer for the purposes
of section 5747.01 of the Revised Code for the entire qualifying taxable year
of the qualifying pass-through entity. (3) An investor who is an individual for whom the qualifying pass-through
entity makes a good faith and reasonable
effort to comply fully and timely with the filing and payment
requirements set forth in division (D) of section 5747.08 of the Revised Code
and section 5747.09 of the Revised Code with respect to the individual's
adjusted qualifying amount for the entire
qualifying taxable year of the qualifying pass-through entity. (4) An investor that is another qualifying pass-through entity having only
investors described in division (I)(1),
(2), (3), or (6) of this section during the three-year period
beginning twelve months prior to the first day of the qualifying
taxable year of the qualifying pass-through entity. (5) An investor that is
another pass-through entity having no investors other than
individuals and estates during the qualifying taxable year of
the qualifying pass-through entity in which it is an investor,
and that makes a good faith and reasonable effort to comply fully and timely
with the filing and payment requirements set forth in division (D) of
section 5747.08
of the Revised Code and section 5747.09 of the Revised Code
with respect to investors that are not resident taxpayers of this state
for the purposes of Chapter 5747. of the Revised Code
for the entire qualifying taxable year of the qualifying
pass-through entity in which it is an
investor. (6) An investor that is a financial institution required to calculate the tax
in accordance with division (D) of section 5733.06 of the Revised Code on the
first day of January of the calendar year immediately following the last day
of the
financial institution's calendar or fiscal year in which ends the taxpayer's
taxable year. (7) An investor other than an individual that satisfies all the
following: (a) The investor submits a written statement to the qualifying
pass-through entity stating that the investor
irrevocably agrees that the investor has nexus with this state under the
Constitution of the United
States and is subject to and liable for the tax calculated under division (B)
of section 5733.06 of the Revised Code
with respect to the investor's adjusted qualifying
amount for the entire qualifying taxable year of the qualifying
pass-through entity. The statement is subject to the penalties
of perjury, shall be retained by the qualifying pass-through
entity for no fewer than seven years, and shall be delivered to
the tax commissioner upon request. (b) The investor makes a good faith and reasonable effort to comply timely
and fully with all the reporting and payment requirements set forth in Chapter
5733. of the Revised Code with respect to the investor's adjusted qualifying
amount for the entire qualifying taxable year of the qualifying
pass-through entity. (c) Neither the investor nor the qualifying pass-through entity
in which it is an investor, before, during, or after the qualifying
pass-through entity's qualifying taxable year,
carries out any transaction or transactions with one or more related members
of the investor or the qualifying pass-through entity resulting in a
reduction or deferral of tax imposed by Chapter 5733. of the Revised Code
with respect to all or any portion of the investor's
adjusted qualifying amount for the qualifying pass-through
entity's taxable year, or that
constitute a sham, lack economic reality, or are part of a
series of transactions the form of which constitutes a step transaction or
transactions or does not reflect the substance of those transactions. (8) Any other investor that the tax commissioner may
designate by rule. The tax commissioner may adopt rules
including a rule defining "qualifying investor" or "qualifying beneficiary"
and governing
the imposition of the withholding tax imposed by section 5747.41 of the
Revised Code with respect to an individual who is a resident taxpayer for the
purposes of Chapter 5747. of the Revised Code
for only a portion of the qualifying taxable year of the
qualifying entity. (9) An investor that is a trust or fund the beneficiaries of which, during
the qualifying taxable year of the qualifying pass-through entity, are limited
to the following: (a) A person that is or may be the beneficiary of a trust subject to
Subchapter D of Chapter 1 of Subtitle A of the Internal Revenue Code. (b) A person that is or may be the
beneficiary of or the recipient of payments from a trust or fund
that is a nuclear decommissioning reserve fund, a designated
settlement fund, or any other trust or fund established to
resolve and satisfy claims that may otherwise be asserted by the
beneficiary or a member of the beneficiary's family. Sections
267(c)(4), 468A(e), and 468B(d)(2) of the Internal Revenue Code apply to the
determination of whether such a person satisfies division (I)(9) of this
section. (c) A person who is or may be the beneficiary of a trust that, under its
governing instrument, is not required to distribute all of its income
currently. Division (I)(9)(c) of this section applies only if the trust,
prior to the due date for filing the qualifying pass-through entity's return
for taxes imposed by section 5733.41 and sections 5747.41 to 5747.453 of
the Revised Code, irrevocably agrees in writing that for the taxable year
during or for which the trust distributes any of its income to any of its
beneficiaries, the trust is a qualifying trust and will pay the estimated tax,
and will withhold and pay the withheld tax, as required under
sections 5747.40 to 5747.453 of the Revised Code. For the purposes of division (I)(9) of
this section, a trust or fund shall be considered to have a
beneficiary other than persons described under divisions
(I)(9)(a) to (c) of this section if a beneficiary would
not qualify under those divisions under the doctrines of
"economic reality," "sham transaction," "step doctrine," or
"substance over form." A trust or fund described in division
(I)(9) of this section bears the burden of establishing by a preponderance of
the evidence that any transaction giving rise to the tax benefits provided
under division (I)(9) of this section does not have as a principal purpose a
claim of those tax benefits. Nothing in this section shall be construed to
limit solely to this section the application of the doctrines
referred to in this paragraph. (J) "Qualifying net gain" means any recognized net gain with
respect to the acquisition, ownership, use, maintenance, management, or
disposition of tangible personal property located in this state at any time
during a trust's qualifying taxable year or real property located in
this state. (K) "Qualifying net income" means any recognized income, net of
related deductible expenses, other than distributions deductions
with respect to the acquisition, ownership,
use, maintenance, management, or disposition of tangible personal property
located in
this state at any time during the trust's qualifying taxable year or
real property located in this state. (L) "Qualifying entity" means a qualifying pass-through entity
or a qualifying trust. (M) "Qualifying trust" means a trust subject to subchapter J of the Internal
Revenue Code
that, during any portion of the trust's qualifying taxable year, has income
or gain from the acquisition, management, ownership, use,
or disposition of tangible personal property located in this
state at any time during the trust's qualifying taxable year or real
property located in this state. "Qualifying trust" does not
include a person described in section 501(c) of the Internal Revenue Code
or a person described in division (C) of section 5733.09 of the Revised Code. (N) "Qualifying pass-through entity" means a pass-through entity
as defined in section 5733.04 of the Revised Code, excluding a person
described in section 501(c)
of the Internal Revenue Code, a partnership with equity securities registered
with the United States securities and exchange commission under
section 12 of the Securities Exchange Act of 1934, as amended, or a person
described in division (C) of section 5733.09 of the Revised Code. (O) "Quarter" means the first three months, the second three
months, the third three months, or the last three months of
a qualifying entity's qualifying taxable year. (P) "Related member" has the same meaning as in division (A)(6) of section
5733.042 of the Revised Code without regard to division (B) of that section.
However, for the purposes of divisions (A)(3) and (4) of this section only,
"related member" has the same
meaning as in division (A)(6) of section 5733.042 of the Revised Code without
regard to division (B) of that section, but shall be applied by substituting
"forty per cent" for "twenty per cent" wherever "twenty per cent" appears in
division (A) of that section. (Q) "Return" or "report" means the notifications and reports
required to be filed pursuant to sections 5747.42 to 5747.45 of the Revised
Code for the purpose of reporting the tax imposed under section 5733.41 or
5747.41 of the Revised Code, and included declarations of estimated tax when
so required. (R) "Qualifying taxable year" means the calendar year or the qualifying
entity's fiscal year ending during the calendar year, or fractional part
thereof, for which the adjusted qualifying amount is calculated pursuant to
sections 5733.40 and 5733.41 or sections 5747.40 to 5747.453 of the Revised
Code. Sec. 5733.42. (A) As used in this section: (1) "Eligible training program" means a program to provide job
skills to eligible employees who are unable effectively to
function on the job due to skill deficiencies or who would
otherwise be displaced because of their skill deficiencies or
inability to use new technology, or to provide job skills to
eligible employees that enable them to perform other job duties for the
taxpayer. Eligible training programs do
not include executive, management, career development, or personal
enrichment training programs, or training programs intended
exclusively for personal career development. (2) "Eligible employee" means an individual who is employed
in this state by a taxpayer and has been so employed by the same
taxpayer for at least one
hundred eighty consecutive days and on the same job for at least
ninety consecutive days working at least twenty-four hours
per week before the day an application for the credit is filed under
this section. "Eligible employee" does not include
any employee for which a credit is claimed pursuant to division
(A)(5) of section
5709.65 of the Revised Code for all or any part of the same year, an
employee who is not a full-time employee, or executive or
managerial personnel except for the immediate supervisors of
nonexecutive, nonmanagerial personnel. (3) "Eligible training costs" means: (a) Direct instructional costs, such as instructor
salaries,
materials and supplies, textbooks and manuals, videotapes, and other
instructional media and training equipment
used exclusively for the purpose of training eligible employees; (b) Wages paid to eligible employees for time devoted exclusively
to an eligible training
program during normal paid working hours. (4) "Full-time employee" means an individual who is employed for
consideration for at least thirty-five hours per week, or who renders any
other standard of service generally accepted by custom or specified by
contract as full-time employment. (5) "Partnership" includes a limited liability company formed under
Chapter 1705. of the Revised Code or under the laws of another state, provided that
the company is not classified for federal income tax purposes as an
association taxable as a corporation. (B) There is hereby allowed
a nonrefundable credit against the tax imposed
by section 5733.06 of the Revised Code
for taxpayers for which a tax credit certificate is issued under
division (C) of this section.
The credit shall be claimed for the
tax year immediately following the calendar year in which the
taxpayer pays or incurs the eligible training costs for which the credit
is being claimed. The credit may not be claimed for any tax year after
tax year 2004, except for amounts carried forward to subsequent tax years to
the extent allowed under division (J) of this section .
The amount of the credit for each tax year shall equal one-half of the
average of
the excess of
(1) eligible training costs
paid or incurred by the taxpayer during the three calendar
year years immediately
preceding the tax year
for which the credit is claimed, over (2) the taxpayer's average annual
eligible training costs for the three preceding calendar years.
The credit allowed shall not to exceed five hundred
one thousand dollars
times the number
of for each eligible employees employee on account of
whom eligible training costs were paid or
incurred by the taxpayer during the those calendar
year
immediately preceding the tax year for which
the credit is claimed,
and shall not exceed the lesser of one
hundred thousand dollars or one-half of the taxpayer's tax
liability under section 5733.06 of the Revised Code for the
preceding tax year years. The credit claimed by a
taxpayer each tax
year
shall not exceed one hundred thousand dollars. (C) A taxpayer who proposes to conduct an eligible training
program may apply to the director of job and family services
for a tax credit certificate under this section.
The taxpayer may apply for such a certificate for each tax year
with respect to a calendar year in which the taxpayer paid or incurred
eligible training costs, subject to division (L) of this section.
The director shall prescribe the form of
the application, which shall require a detailed description of the
proposed training program.
The director may require applicants to remit an application fee
with each application filed with the director. The fee shall not exceed
the reasonable and necessary expenses incurred by the director in
receiving, reviewing, and approving such applications and issuing tax credit
certificates. Proceeds
from fees shall be used solely for the purpose of receiving,
reviewing, and approving such applications and issuing such certificates. After receipt of an application, the
director shall authorize a credit under this section
by issuing a tax credit
certificate, in the form prescribed by the director, if
the director determines all of the following: (1) The taxpayer's primary business activity falls within one of
the following classifications in the
standard industrial classification manual (1987)
published by the United States office of management and
budget in the executive office of the president:
| (a) Division D | Manufacturing |
| (b) Division H | Finance, insurance, and real estate |
| (c) Major group 73 | Business services |
| (d) Major group 81 | Legal services |
| (e) Major group 87 | Engineering, accounting, research,
management, and related services |
(2) The proposed training program is an eligible training program
under this section;
(3)(2) The proposed training program is economically sound
and will
benefit the people of this state by improving workforce skills and
strengthening the economy of this state;
(4)(3) Receiving the tax credit is a major factor in the
taxpayer's
decision to go forward with the training program;
(5)(4) Authorization of the credit is consistent with
division (H)
of this section.
The credit also is allowed for a taxpayer that is a partner in a
partnership that pays or incurs eligible training costs. Such a taxpayer
shall determine the taxpayer's credit amount in the manner prescribed by
division (K) of this section. (D) If the director of job and family services denies an application for a
tax credit certificate, the director shall send notice of the denial and the
reason for denial to the applicant by certified mail, return receipt
requested. If the director determines that an
authorized
training program, as actually conducted, fails to meet the requirements of
this section or to comply with any condition set forth in the
authorization, the director may reduce the amount of the
tax credit previously granted.
If the director reduces a
tax credit, the director shall send notice of the reduction and the reason
for the reduction to the taxpayer by certified mail, return receipt requested,
and shall certify the reduction to the tax
commissioner, and the or, in the case of the reduction of a credit
claimed by an insurance company, the superintendent of insurance. The tax
commissioner or superintendent of insurance shall reduce the credit
that may be claimed by the taxpayer accordingly. Within sixty days after
receiving a notice of denial or notice of reduction of the tax credit, an
applicant or taxpayer may request, in writing, a hearing before the director
to review the denial or reduction. Within sixty days after receiving a
request that is filed within the prescribed time, the director shall hold such
a hearing at a location to be determined by the director. Within thirty days
after the hearing is adjourned, the director shall issue a redetermination
affirming, reversing, or modifying the denial or reduction of the tax credit
and send notice of the redetermination to the applicant or taxpayer by
certified mail, return receipt requested, and shall issue a notice of the
redetermination to the tax commissioner or superintendent of insurance. If an
applicant or taxpayer is aggrieved by the director's redetermination, the
applicant or taxpayer may appeal the redetermination to the board of tax
appeals in the manner prescribed by section 5717.02 of the Revised Code. (E) Financial A taxpayer to which a tax credit certificate is
issued shall retain records indicating the eligible training costs it pays or
incurs for the eligible training program for which the certificate is issued
for four years following the end of the tax year
for which the credit is claimed. Such records shall be open to inspection by
the
director of
job and family services upon the director's request during business hours. Financial statements and other information submitted
by an applicant to the director of job and family services
for a tax credit under this
section, and any information taken for any purpose from such
statements or information, are not public records subject to
section 149.43 of the Revised Code. However, the director
of job and family services or, the tax
commissioner, or superintendent of insurance
may make use of the statements and other information for purposes of issuing
public reports or in connection with court proceedings
concerning tax credits allowed under this section and sections 5725.31,
5729.07, and 5747.39 of the Revised Code. (F) The director of job and family services, in
accordance with Chapter
119. of the Revised Code, shall adopt rules necessary to
implement
this section and sections 5725.31, 5729.07, and 5747.39 of the Revised Code. The
rules shall be adopted after consultation with the tax
commissioner and the superintendent of insurance. At the
time the director gives public notice under
division (A) of section 119.03 of the
Revised Code of the adoption of the
rules, the director shall submit copies of the proposed rules to the
chairpersons and ranking minority members of the standing committees in
the senate and the house of representatives to which legislation on economic
development matters are customarily referred. (G) On or before the thirtieth day of September of 2001,
2002, 2003, and 2004, the director of job and family services
shall submit a report to the governor, the president
of the senate, and the speaker of the house of representatives on
the tax credit program under this section and sections 5725.31, 5729.07,
and 5747.39 of the Revised Code. The report shall
include information on the number of training programs that were
authorized under this section those sections during the
preceding calendar year,
a description of each authorized training program, the dollar
amounts of the credits granted, and an estimate of the impact of
the credits on the economy of this state. (H) The aggregate amount of credits authorized under the this
section and sections 5725.31, 5729.07, and 5747.39 of the Revised Code
shall not exceed twenty million dollars per calendar year. No more than ten
million dollars in credits per calendar year shall
be authorized for corporations persons engaged primarily in
manufacturing.
No less than five million dollars in credits per calendar year
shall be set aside for corporations persons engaged primarily
in
activities other than manufacturing and having fewer than five
hundred employees. Subject to such limits, credits shall be
authorized for applicants meeting the requirements of this section
in the order in which they submit complete and accurate
applications. (I) A nonrefundable credit allowed under
this section shall be claimed in the order required under section 5733.98
of the Revised Code. (J) The taxpayer may carry forward any credit amount in excess of
its tax due after allowing for any other credits that precede the
credit under this section in the order required under section
5733.98 of the Revised Code. The excess
credit may be carried forward
for three years following the tax year for which it is
first claimed under this section. (K) In the case of a qualifying controlled group, the credit allowed
under this section to taxpayers in the qualifying controlled group shall
be computed as if all corporations in the qualifying controlled group
were a consolidated, single taxpayer. The credit shall be
allocated to such taxpayers in any amount elected for the taxable
year by the qualifying controlled group. The election shall be
revocable and amendable during the period prescribed by division
(B) of section 5733.12 of the Revised Code. A taxpayer that is a
partner in a partnership on the last day of the third calendar year of the
three-year period during which the
partnership pays or incurs eligible training costs may claim a credit under
this section for the tax year immediately following that calendar year. The
amount of a partner's credit
equals the partner's interest in the partnership on the last day of such
calendar year multiplied by the credit available to the partnership as
computed by the partnership. (L) The director of job and family services
shall not authorize any credits under this
section and sections 5725.31, 5729.07, and 5747.39 of the Revised Code for eligible
training costs paid or incurred after December
31, 2003. Sec. 5745.01. As used in this chapter: (A) "Electric company" and "combined company" have the same
meanings as in section 5727.01 of the Revised Code. (B) "Electric light company" has the same meaning as in section
4928.01 of the Revised Code, and includes the activities of a
combined company as an electric company, but excludes nonprofit companies
and municipal corporations. (C) "Taxpayer" means an electric light company subject to
taxation by a municipal corporation in this state for a taxable year,
excluding an
electric light company that is not an electric
company or a combined company and for which an election made under
section 5745.031 of the Revised Code is not in effect with respect to the taxable
year. If such a company is a qualified subchapter S subsidiary as
defined in section 1361 of the Internal Revenue
Code or a
disregarded entity, the company's parent S corporation or owner is
the taxpayer for the purposes of this chapter and is hereby deemed to have
nexus with this state under the Constitution of the United
States for the purposes of this chapter. (D) "Disregarded entity" means an entity that, for its taxable
year, is by default, or has elected to be, disregarded as an entity
separate from its owner pursuant to 26 C.F.R.
301.7701-3. (E) "Taxable year" of a taxpayer is the taxpayer's taxable year
for federal income tax purposes. (F) "Federal taxable income" means taxable income, before
operating loss deduction and special deductions, as required to be reported
for the taxpayer's taxable year under the Internal Revenue
Code. (G) "Adjusted federal taxable income" means federal taxable
income adjusted as follows: (1) Deduct intangible income as defined in section 718.01 of the Revised Code to the
extent
included in federal taxable income; (2) Add expenses incurred in the production of such intangible
income; (3) If the taxpayer is a, with respect to a qualifying
taxpayer and a qualifying asset there
occurs a qualifying taxable event, the
qualifying taxpayer under section
5733.0510 of the Revised Code, deduct the amount by which the
taxpayer reduced its net income to the extent that amount is
included in federal taxable income, or add the amount by which the
taxpayer increased its net income, for the taxable year under
division (B)(1) of that section,
shall reduce its federal taxable income by the amount of the
book-tax differential for that qualifying asset if the book-tax
differential is greater than zero, and shall increase its federal
taxable income by the absolute value of the amount of the book-tax
differential for that qualifying asset if the book-tax
differential is less than zero. the adjustments provided in
division (G)(3) of this section are
subject to divisions (B)(3), (4),
and (5) of that section 5733.0510 of the Revised Code to the extent
those divisions apply to the
adjustments in division (B)(1) of that section for the
taxable year. A taxpayer shall not deduct or add any amount under division
(G)(3) of this section
with respect to a qualifying asset the sale, exchange, or other
disposition of which resulted in the recognition of a gain or loss
that the taxpayer deducted or added, respectively, under
division (G)(1) or (2) of this section. For the purposes of division (G)(3) of this section, "net income"
has the same meaning as in section 5733.04 of the Revised Code,
and "book-tax differential," "qualifying taxpayer,"
"qualifying
asset," and "qualifying taxable event" have the same meanings as in
section 5733.0510 of the Revised Code. (H) "Internal Revenue Code" means the
"Internal Revenue Code of 1986," 100 Stat.
2085, 26 U.S.C.A. 1, as amended. (I) "Ohio net income" means the amount determined under division
(B) of section 5745.02 of the Revised Code. Sec. 5745.02. (A) The annual report filed under section 5745.03
of the Revised Code determines a taxpayer's Ohio net income and
the portion of Ohio net income to be apportioned to a municipal
corporation. (B) A taxpayer's Ohio net income is determined by
multiplying the
taxpayer's adjusted
federal taxable income by the sum of the property factor multiplied
by one-third, the payroll factor multiplied by one-third, and the sales factor
multiplied by one-third.
If the denominator of one of the factors is zero, the remaining two factors
each shall be multiplied by one-half instead of one-third; if the denominator
of two of the factors is zero, the remaining factor shall be multiplied by
one.
The property, payroll, and sales factors shall be determined in the manner
prescribed by divisions (B)(1), (2), and (3) of this section. (1) The property factor is a fraction the numerator of
which is the average value of the taxpayer's real and tangible
personal property owned or rented, and used in
business in this state during the taxable year, and the
denominator of which is the average value of all the
taxpayer's real and tangible personal property owned or
rented, and used in business everywhere during such
year.
Property owned by the taxpayer is valued at its
original cost. Property rented by the taxpayer is valued at
eight times the net annual rental rate. "Net annual rental rate"
means the annual rental rate paid by the taxpayer less any
annual rental rate received by the taxpayer from subrentals.
The average value of property shall be determined by
averaging the values at the beginning and the end of the taxable
year, but the tax commissioner may require the averaging of
monthly values during the taxable year, if reasonably required to
reflect properly the average value of the taxpayer's property. (2) The payroll factor is a fraction the numerator of
which is the total amount paid in this state during the taxable
year by the taxpayer for compensation, and the denominator of
which is the total compensation paid everywhere by the
taxpayer during such year. Compensation means any form of remuneration paid
to an
employee for personal services. Compensation is paid in this state if:
(a) the
recipient's service is performed entirely within this state, (b)
the recipient's service is performed both within and without this
state, but the service performed without this state is incidental
to the recipient's service within this state, or (c) some of the
service is performed within this state and either the base of
operations, or if there is no base of operations, the place from
which the service is directed or controlled is within this state,
or the base of operations or the place from which the service is
directed or controlled is not in any state in which some part of
the service is performed, but the recipient's residence is in
this state. (3)(a) Sales of electricity shall be sitused in this state as
provided in section 5733.059 of the Revised Code. (b) For all other sales, the The sales factor is a fraction the
numerator of which
is the total sales in this state by the taxpayer during the
taxable year, and the denominator of which is the total sales by
the taxpayer everywhere during such year.
Sales of electricity shall be sitused to this state in the manner
provided under section 5733.059 of the Revised Code.
In determining the
numerator and denominator of the sales factor, receipts from the
sale or other disposal of a capital asset or an asset described
in section 1231 of the Internal Revenue Code shall
be eliminated.
Also, in determining the numerator and denominator of the sales
factor, in the case of a reporting taxpayer owning at least
eighty per cent of the issued and outstanding common stock of one
or more insurance companies or public utilities, except an electric company,
or owning at
least twenty-five per cent of the issued and outstanding common
stock of one or more financial institutions, receipts received by
the reporting taxpayer from such utilities, insurance
companies, and financial institutions shall be eliminated.
For the purpose of division (B)(3)(b) of this
section, sales of tangible personal property are in this
state where such property is received in this state by the
purchaser. In the case of delivery of tangible personal property
by common carrier or by other means of transportation, the place
at which such property is ultimately received after all
transportation has been completed shall be considered as the
place at which such property is received by the purchaser.
Direct delivery in this state, other than for purposes of
transportation, to a person or firm designated by a purchaser
constitutes delivery to the purchaser in this state, and direct
delivery outside this state to a person or firm designated by a
purchaser does not constitute delivery to the purchaser in this
state, regardless of where title passes or other conditions of
sale. Sales other than sales of electricity or tangible personal property are
in this state if either
the income-producing activity is performed solely in this
state, or
the income-producing activity is performed both
within and without this state and a greater proportion of the
income-producing activity is
performed within this state than in
any other state, based on costs of performance. (C) The portion of a taxpayer's Ohio net income taxable
by each
municipal corporation imposing an income tax shall be determined by
multiplying the taxpayer's Ohio net income by the sum of the
municipal
property factor multiplied by one-third, the municipal payroll factor
multiplied by
one-third, and the municipal sales factor multiplied by one-third,
and subtracting from the product so obtained any "municipal net
operating loss carryforward from prior taxable years."
If the denominator of one of the factors is zero, the remaining two factors
each shall be multiplied by one-half instead of one-third; if the denominator
of two of the factors is zero, the remaining factor shall be multiplied by one.
In calculating the "municipal net operating loss carryforward from prior
taxable years" for each municipal corporation, net operating losses are
apportioned in and out of a municipal corporation for the taxable year in which
the net operating loss occurs in the same manner that positive net income would
have been so apportioned. Any net operating loss for a municipal corporation
may be applied to subsequent net income in that municipal corporation to reduce
that income to zero or until the net operating loss has been fully used as a
deduction. The unused portion of net operating losses for each taxable year
apportioned to a municipal corporation may only be applied against the income
apportioned to that municipal corporation for five subsequent taxable years.
Net operating losses occurring in taxable years ending before 2002 may not be
subtracted under this section. A taxpayer's municipal property, municipal payroll, and municipal
sales factors for a municipal corporation shall be determined as provided in
divisions (C)(1), (2), and (3) of this section. (1) The municipal property factor is the quotient obtained by
dividing (a) the average value of real and tangible personal
property owned or rented by the taxpayer and used in business in the municipal
corporation during the taxable
year by (b) the average value of all of the taxpayer's real
and
tangible personal property owned or rented and used in business during that
taxable year in this
state. The
value and average value of such property shall be determined in the same
manner provided in
division (B)(1) of this section. (2) The municipal payroll factor is the quotient obtained by
dividing (a) the total amount of compensation paid earned in the
municipal corporation by the
taxpayer to its taxpayer's employees during the
taxable year for services performed for the taxpayer and that is
subject to income tax
withholding by the
municipal corporation by
(b) the total amount of compensation paid in this state by the
taxpayer to its employees in this state during the taxable year.
Compensation has the same meaning as in division (B)(2) of this section. (3) The municipal sales
factor is a fraction the numerator of which
is the taxpayer's total sales in a municipal corporation during the
taxable year, and the denominator of which is the taxpayer's total sales
in this state during such year. For the purpose of division (C)(3) of this section, sales of
tangible personal property are in the municipal corporation
where such property is received in the municipal corporation by the
purchaser. Sales of electricity directly to the consumer, as defined in
section 5733.059 of the Revised Code, shall be considered sales of tangible
personal property. In the case of the delivery of tangible personal property
by common carrier or by other means of transportation, the place at which such
property ultimately is received after all transportation has been completed
shall be considered as the place at which the property is received by the
purchaser. Direct delivery in the municipal corporation, other than
for purposes of
transportation, to a person or firm designated by a purchaser
constitutes delivery to the purchaser in that municipal corporation, and
direct
delivery outside the municipal corporation to a person or firm designated by a
purchaser does not constitute delivery to the purchaser in that municipal
corporation, regardless of where title passes or other conditions of
sale. Sales, other than sales of tangible personal property, are
in the municipal corporation if either: (a) The income-producing activity is performed solely in
the municipal corporation; (b) The income-producing activity is performed both
within and without the municipal corporation and a greater proportion of the
income-producing activity is
performed within that municipal corporation than
any other location in this state, based on costs of performance. (D) If a taxpayer is a combined company as defined in section
5727.01 of the Revised Code, the municipal property, payroll, and sales
factors under
division (C) of this section shall be adjusted as follows: (1) The numerator of the municipal property factor shall include only the
value, as determined under division (C)(1) of this
section, of the company's real and tangible property in the municipal
corporation attributed to
the company's activity as an electric company using the same
methodology prescribed under section 5727.03 of the Revised Code
for taxable tangible personal property. (2) The numerator of the municipal payroll factor shall include only
compensation paid in the municipal corporation by the company to its employees
for
personal services rendered in the company's activity as an
electric company. (3) The numerator of the municipal sales factor shall include only the
sales of tangible personal property and services, as determined under division
(C)(3) of this section, made in the municipal corporation in the
course of the company's activity as an electric company. (E)(1) If the provisions for apportioning adjusted federal
taxable income or Ohio net income under division (B),
(C), and (D) of this section do not fairly represent
business activity in this state or among municipal corporations, the tax
commissioner may adopt rules for apportioning such income by an alternative
method that fairly represents business activity in this state or among
municipal corporations. (2) If any of the factors determined under division (B),
(C), or (D) of this
section does not fairly represent the extent of a taxpayer's business
activity in this state or among municipal corporations, the taxpayer may
request, or the
tax commissioner may require,
that the taxpayer's adjusted federal taxable income or Ohio net
income
be determined by an alternative method, including
any of the alternative methods enumerated in division
(B)(2)(d) of section 5733.05 of the Revised Code.
A taxpayer requesting an alternative
method shall make the request in
writing to the tax commissioner either with the annual report, a
timely filed amended report, or a timely filed petition for
reassessment. When the tax commissioner requires or permits an
alternative method under division (E)(2) of this section, the tax
commissioner shall cause a written
notice to that effect to be delivered to any municipal corporation
that would be affected by application of the alternative method.
Nothing in this division shall be construed to extend any statute
of limitations under this chapter. (F)(1) The tax commissioner may adopt rules providing for the combination of
adjusted
federal taxable incomes of taxpayers satisfying the ownership or control
requirements of section 5733.052 of the Revised Code if the tax commissioner
finds that such
combinations are necessary to properly reflect adjusted federal taxable
income,
Ohio net income, or the portion of Ohio net income to be
taxable by municipal corporations. (2) A taxpayer satisfying the ownership or control requirements
of section 5733.052 of the Revised Code with respect to one or
more other taxpayers may not combine their adjusted federal taxable incomes
for the purposes of
this section unless rules are adopted under division (F)(1) of this
section allowing such a combination or the tax commissioner finds
that such a
combination is necessary to properly reflect the taxpayers' adjusted federal
taxable incomes, Ohio
net incomes, or the portion of Ohio net incomes to be subject to
taxation within a municipal corporation. Sec. 5745.03. (A) For each taxable year, each taxpayer shall
file an
annual report with the treasurer of state not later than the
fifteenth day of the fourth month after the end of the taxpayer's
taxable year, and shall remit with that report the amount of tax
due as shown on the report less the amount paid for the year
under section 5745.04 of the Revised Code. The remittance shall
be made in the form prescribed by the treasurer of state, including electronic
funds transfer if the amount payable with the report
exceeds one thousand dollars. The treasurer of state shall credit
ninety-eight and one-half per cent of such remittances to the
municipal income tax fund, which is hereby created in the state
treasury, and credit the remainder to the municipal income tax
administrative fund, which is hereby created in the state
treasury. The treasurer of state shall indicate on the report the
date it was filed and the amount remitted, and immediately shall
transmit the report to the tax commissioner. (B) Any taxpayer that has been granted an extension for filing a
federal income tax return may request an extension for filing the
return required under this section by filing with the tax
commissioner a copy of the taxpayer's request for the federal
filing extension. The request shall be filed not later than the
last day for filing the return as required under division (A) of
this section. If such a request is properly and timely filed, the tax
commissioner shall extend
the last day for filing the return required under this section for the same
period for which the
federal filing extension was granted. The tax commissioner may
deny the filing extension request only if the taxpayer fails to
timely file the request, fails to file a copy of the federal
extension request, owes past due taxes, interest, or penalty under
this chapter, or has failed to file a required report or other
document for a prior taxable year. The granting of an extension under
this section does not extend the last day for paying taxes without
penalty pursuant to this chapter unless the tax commissioner
extends the payment date. (C) The annual report
shall include statements of the following facts as of the last
day of the taxpayer's taxable year: (1) The name of the taxpayer; (2) The name of the state or country under the laws of
which it is incorporated; (3) The location of its principal office in this state
and, in the case of a taxpayer organized under the
laws of another state, the principal place of business in this
state and the name and address of the officer or agent of the
taxpayer in charge of the business conducted in this
state; (4) The names of the president, secretary, treasurer, and
statutory agent in this state, with the post-office address of
each; (5) The date on which the taxpayer's taxable year begins and ends; (6) The taxpayer's federal taxable income during the
taxpayer's taxable year; (7) Any other information the tax commissioner requires
for the proper administration of this chapter. (D) The tax commissioner may require any reports required under
this chapter to be filed in an
electronic format. (E) A municipal corporation may not require a taxpayer required
to file a report under this section to file a report of the taxpayer's income,
but a municipal corporation may require a
taxpayer to report to the municipal corporation the value of the
taxpayer's real and tangible personal property situated in the
municipal corporation, compensation paid by the taxpayer to its
employees in the municipal
corporation to employees by the taxpayer, and sales made in the
municipal corporation by the taxpayer, to the extent necessary for
the municipal corporation to compute the taxpayer's municipal
property, payroll, and sales factors for the municipal
corporation. (F) On or before the thirty-first
day of January each year, each
municipal corporation imposing a tax on income shall certify to the tax
commissioner the rate of the tax in effect on the first day of
January of that year. If any municipal corporation
fails to
certify its income tax rate as required by this division, the tax
commissioner shall notify the director of budget and management,
who, upon receiving such notification, shall withhold from each
payment made to the municipal corporation under section 5745.05 of the Revised Code fifty per
cent of the amount of the payment
otherwise due the municipal corporation under that section as computed on the
basis of the tax rate most recently certified until
the municipal corporation certifies the tax rate in effect on the first day of
January of that year. The tax rate used to determine the tax payable to a municipal corporation
under this section for a taxpayer's taxable year shall be the tax rate in
effect in a municipal corporation on the first day of January in that
taxable year. If a taxpayer's taxable year is for a period less than twelve
months that does not include the first day of January, the tax rate
used to determine the tax payable to a municipal corporation under this section
for the taxpayer's taxable year shall be the tax rate in effect in a municipal
corporation on the first day of January in the preceding taxable year. Sec. 5745.04. (A) As used in this section, "combined tax
liability" means the total of a taxpayer's income tax liabilities to all
municipal corporations in this state for a taxable year. (B) Beginning with its taxable year beginning in 2003, each taxpayer
shall file a declaration of
estimated tax report with, and remit estimated taxes to, the treasurer of
state at the times and in the amounts prescribed in
divisions (B)(1) to (4) of this section, except as provided in
division (C) of this section:. this division also
applies to a taxpayer having a taxable year
consisting of fewer than twelve months, at least one of which is in 2002,
that ends before january 1, 2003. (1) Not less than twenty-five per cent of the combined tax liability
for the preceding taxable year or twenty per cent of the
combined tax liability for the current taxable year shall have been remitted
not later than the fifteenth day of the fourth month after the end
of the preceding taxable year;. (2) Not less than fifty per cent of the combined tax liability
for the preceding taxable year or forty per cent of the combined
tax liability for the current taxable year shall have been remitted not
later than the fifteenth day of the sixth month after the end of
the preceding taxable year;. (3) Not less than seventy-five per cent of the combined tax liability
for the preceding taxable year or sixty per cent of the
combined tax liability for the current taxable year shall have been
remitted not later than the fifteenth day of the ninth month after
the end of the preceding taxable year;. (4) Not less than one hundred per cent of the combined tax liability
for the preceding taxable year or eighty per cent of the
combined tax liability for the current taxable year shall have been remitted
not later than the fifteenth day of the twelfth month after the
end of the preceding taxable year. (C) Each taxpayer shall report on the declaration of estimated
tax report the portion of the remittance that the taxpayer estimates that it
owes to each municipal corporation for the taxable year. (D) Upon receiving a declaration of estimated tax report and
remittance of estimated taxes under this section, the treasurer of state shall
credit ninety-eight and one-half per cent of the
remittance to the municipal income tax fund and credit the
remainder to the municipal income tax administrative fund, and
shall transmit the report to the tax commissioner. (E) If any remittance of estimated taxes is for one thousand
dollars or more, the taxpayer shall make the remittance by electronic
funds transfer as prescribed by section 5745.04 of the Revised Code. (F) Notwithstanding section 5745.08 or 5745.09 of the Revised Code, no
penalty or
interest shall be imposed on a taxpayer if the declaration of estimated tax
report is properly filed, and the estimated tax is remitted,
within the time prescribed by
division (B) of this section. Sec. 5745.05. (A) Prior to the first day of March,
June,
September, and December, the tax
commissioner shall certify to the director of budget and management the amount
to be paid to each
municipal corporation, as indicated on the declaration of estimated tax
reports and annual reports received under sections 5745.03 and 5745.04 of the
Revised Code, less any amounts previously distributed for the taxable
year and net of any audit adjustments made by the tax
commissioner. Not later
than the first day of March, June, September, and
December, the
director of budget and management shall provide for payment of the amount
certified to each municipal corporation from the municipal income tax fund,
plus a pro rata share of any investment earnings
accruing to the fund since the previous payment under this section
apportioned among municipal corporations entitled to such payments
in proportion to the amount certified by the tax commissioner. (B) If the tax commissioner determines that the amount of tax
paid by a taxpayer and distributed to a municipal corporation under this
section for a taxable year exceeds the amount payable to that municipal
corporation under this chapter after accounting for amounts remitted with the
annual report and as estimated taxes, the tax commissioner shall permit the
taxpayer to credit
the excess against the taxpayer's payments to the
municipal corporation of estimated taxes remitted for an ensuing taxable year
under section
5745.04 of the Revised Code. If, upon the written request of the taxpayer,
the tax commissioner determines
that the excess to be so credited is likely to exceed the amount
of estimated taxes payable by the taxpayer to the
municipal corporation during the ensuing twelve months, the tax
commissioner shall so notify the municipal corporation and the
municipal corporation shall issue a refund of the excess to the
taxpayer within ninety days after receiving such a notice.
Interest shall accrue on the amount to be
refunded and is payable to the taxpayer at the rate per annum
prescribed by section 5703.47 of the Revised Code from the
ninety-first day after the notice is received by the municipal corporation
until the day the refund is
paid. Sec. 5745.07. If the tax required to be paid under this
chapter, or any portion of that tax, whether determined by the tax
commissioner or the taxpayer, is not paid on or before the date
prescribed for its payment, interest shall be assessed,
collected, and paid, in the same manner as the tax, upon such
unpaid amount at the rate per annum prescribed by section 5703.47
of the Revised Code from the date prescribed for its payment
until it is paid or until the day an assessment is issued under section
5745.12 of the Revised Code, whichever occurs first. Sec. 5745.08. (A) The
following penalties shall apply under the circumstances indicated: (1) If a taxpayer
required to file a report or remit tax as
required by this chapter fails to
make and file the report within the time prescribed, including
any extensions of time granted by the tax commissioner, the tax commissioner
may impose a penalty
not exceeding the greater of fifty dollars per month
or fraction of a month, not to exceed five hundred dollars, or
five per cent per month or fraction of a month, not to exceed
fifty per cent, of the tax required to be shown on the report,
for each month or fraction of a month elapsing between the due
date, including extensions of the due date, and the day on which the report is
filed. (2) If a taxpayer fails
to pay any amount of estimated tax
required to be paid under division (B) of section
5745.04 of the Revised Code
by
the dates prescribed for payment, the tax commissioner may impose a penalty
not
to exceed twice the interest charged under section
5745.09 of the Revised Code for the delinquent payment. (3) If a taxpayer files what purports to be a report
required by this chapter that does not contain information
upon
which the substantial correctness of the report may be judged or
contains information that on its face indicates that the report
is substantially incorrect, and the filing of the report in that
manner is due to a position that is frivolous or a desire that is
apparent from the report to delay or impede the administration of
this chapter, a penalty of up to five hundred dollars
may be imposed. (4) If a taxpayer makes a fraudulent attempt to evade
the
reporting or payment of the tax required to be shown on any
report required under this chapter, a penalty may be
imposed
not exceeding the greater of one thousand dollars or one hundred per
cent of the tax required to be shown on the report. (5) If any person makes a false or fraudulent claim for a
refund under section 5745.11 of the Revised Code, a penalty may be imposed not exceeding
the greater of one thousand dollars or one hundred per cent of
the claim. Any penalty imposed under division (A)(5) of this
section, any refund issued on the claim, and interest on any
refund from the date of the refund, may be assessed under section
5745.12 of the Revised Code without regard to any time
limitation for the assessment
imposed by division (A) of that section. (B) For the purposes of this section, the tax required to be
shown on the report shall be reduced by the amount of any part of
the tax paid on or before the date, including extensions of the
date, prescribed for filing the report. (C) Each penalty imposed under this section shall be in
addition to any other penalty provided in this section. All or
part of any penalty imposed under this section may be abated by
the commissioner. The tax commissioner may adopt rules governing the
imposition and abatement of such penalties. (D) All amounts collected under this section from a taxpayer
shall be considered
as taxes collected under this chapter and shall be credited
and distributed to municipal corporations in the same proportions as the
taxpayer's taxes are distributed
for the reporting period under section 5745.05 of the Revised Code
or, if the taxpayer has filed the annual report for the year under
section 5745.03 of the Revised Code,
in the amounts found to be due such municipal corporations
on the basis of the annual report. Sec. 5745.09. (A) In case of any underpayment of the
estimated tax under
section 5745.04 of the Revised Code,
there shall be added to the tax an amount
determined at the rate per annum prescribed by section 5703.47 of
the Revised Code upon the amount of underpayment for the
period
of underpayment. (B) The amount of the underpayment shall be the excess of
division (B)(1) over division (B)(2) of this section: (1) The amount of the estimated tax payment that would be
required to be paid for the taxable year if the total estimated tax were equal
to the
total tax shown to be due on the annual report, or
if no report was filed, the tax for such year; (2) The amount, if any, of the estimated tax paid on or
before the last day prescribed for such payment. (C) The period of the underpayment shall run from the date
the estimated tax payment was required to be made to the date on
which such payment is made. For purposes of this section, a
payment of estimated tax on any payment date shall be considered
a payment of any previous underpayment only to the extent such
payment exceeds the amount of the payment presently due. (D) All amounts collected under this section shall be considered
as taxes collected under this chapter and shall be credited
and distributed to municipal corporations in the same proportions as the
taxpayer's taxes are distributed for the reporting period under section
5745.05 of the Revised Code
or, if the taxpayer has filed the annual report for the year
under section 5745.03 of the Revised Code, in the amounts found to
be due to such municipal corporations on the basis of the annual
report. Sec. 5745.11. An application to refund to a taxpayer
the amount of taxes paid
on any illegal, erroneous, or
excessive assessment, with interest on that amount as provided
by section 5745.07 of the
Revised Code
payment of tax under this chapter, including assessments, shall be
filed with the
tax commissioner within three years after the date of the
illegal, erroneous, or excessive payment of the tax, or within
any additional period allowed by division
(A) of section 5745.12 of the
Revised Code. The application shall be
filed in the form prescribed by the tax commissioner. Upon the filing of a refund application, the tax
commissioner shall determine the amount of refund due and
certify the amount of the refund to
each municipal corporation to which the overpayment was made. The
municipal corporation shall issue a refund to the taxpayer, or, upon the
taxpayer's written request, shall credit the amount of the refund
against the taxpayer's estimated tax payments to the municipal
corporation for an ensuing taxable year. Any portion of the
refund not issued within ninety days after the tax commissioner's
notice is received by the municipal corporation shall bear
interest at the rate per annum prescribed by section 5703.47 of the Revised
Code from the
ninetieth day after such notice is
received by the municipal corporation until the day the refund is paid or
credited.
On an illegal or erroneous assessment, interest shall be paid at
that rate from the date of payment on the illegal or erroneous
assessment until the day
the refund is paid or credited. Sec. 5745.13. If, upon examination of any books, records,
reports, or other documents of a taxpayer, the tax commissioner
determines that an adjustment shall be made in the portion of the taxpayer's
income that is to be apportioned to a municipal corporation, the tax
commissioner shall notify the taxpayer and, if the adjustment causes
an adjustment in the taxpayer's tax of
more than five hundred dollars, shall notify
each affected municipal corporation to that the
taxpayer's income tax has been adjusted. Any municipal corporation to which such a notice is issued may
request a review and redetermination of the taxpayer's federal taxable
income, Ohio net income, or the portion of Ohio net income
apportioned to the municipal corporation by filing a petition with the tax
commissioner not later than sixty days after the tax commissioner issues the
notice. The petition shall be filed either personally or by
certified mail, and shall indicate the objections of the municipal
corporation. Upon receiving such a petition, if a hearing is requested the tax
commissioner shall assign
a time and place for a hearing on the petition and shall notify the
petitioner of the time and place of the hearing by ordinary mail. The
tax commissioner may continue the hearing from time to time as
necessary. The tax commissioner shall make any correction to the
taxpayer's federal taxable income, Ohio net income, or apportionment
of Ohio net income that the commissioner finds proper,
and issue notice of any correction
by ordinary mail
to the petitioner, to each other municipal corporation affected by
the correction of the apportionment, and to the taxpayer. The tax
commissioner's decision on the matter is final, and is not subject to further
appeal. Sec. 5747.15. (A) In addition to any other penalty
imposed by this chapter or Chapter 5703. of the Revised Code, the
following penalties shall apply: (1) If a taxpayer, qualifying entity, or employer required to file any report
or return, including an informational notice, report, or return,
under this chapter
fails to make and file the report or return within the time prescribed,
including any extensions of time granted by the tax commissioner,
a penalty may be imposed not
exceeding the greater of fifty dollars
per month or fraction of a month, not to exceed five hundred
dollars, or five per cent per month or fraction of a month, not
to exceed fifty per cent, of the sum of the taxes required to be
shown on the report or return, for each month or fraction of a month
elapsing between the due date, including extensions of the due
date, and the date on which filed. (2) If a taxpayer fails to pay any amount of tax required
to be paid under section 5733.41 or 5747.41 or Chapter
Chapters 5747. or 5748. of the Revised
Code, except estimated tax under section 5747.09 or 5747.43 of
the Revised Code, by the dates prescribed for payment, a penalty
may be
imposed not exceeding twice the applicable interest
charged under division
(G) of section 5747.08 of the Revised Code for the delinquent payment. (3)(a) If an employer fails to pay any amount of tax imposed by
section 5747.02 of the Revised Code and required to be paid under this chapter
by the dates prescribed for payment, a penalty may be
imposed not exceeding the
sum of ten per cent of the delinquent payment plus twice the interest charged
under division (F)(5) of section 5747.07 of the Revised Code for
the delinquent payment. (b) If a qualifying entity fails to pay any amount of tax imposed
by section 5733.41 or 5747.41 of the Revised Code
and required to be paid under this chapter by the dates
prescribed for payment, a penalty may be imposed not exceeding
the
sum of ten per cent of the delinquent payment plus twice the
applicable interest charged under division
(G) of section 5747.08 of the Revised
Code for the delinquent payment. (4)(a) If an employer withholds from employees the
tax imposed by section 5747.02 of the Revised Code and fails to remit the tax withheld to
the state as required by this
chapter on or before the dates prescribed for payment, a penalty
may be imposed not exceeding fifty
per cent of the delinquent
payment. (b) If a qualifying entity withholds any amount of tax imposed
under section 5747.41 of the Revised Code
from an individual's qualifying amount and fails to remit that
amount to the state as required by sections 5747.42 to 5747.453
of the Revised Code on or before the dates prescribed for payment, a penalty
may be imposed not exceeding fifty
per cent of the delinquent payment. (5) If a taxpayer, qualifying entity, or employer files what purports to be a
return required by this chapter that does not contain information
upon which the substantial correctness of the return may be
judged or contains information that on its face indicates that
the return is substantially incorrect, and the filing of the
return in that manner is due to a position that is frivolous or a
desire that is apparent from the return to delay or impede the
administration of the tax levied by section 5733.41,
5747.02, or 5747.41, or Chapter 5748.
of the Revised Code, a penalty of up to five hundred dollars
may be imposed. (6) If a taxpayer or qualifying entity makes a fraudulent attempt to
evade the reporting or payment of the tax required to be shown on any
return required under this chapter, a penalty may be
imposed
not exceeding the greater of one thousand dollars or
one hundred per
cent of the tax required to be shown on the return. (7) If any person makes a false or fraudulent claim for a
refund under this chapter, a penalty may be imposed
not exceeding
the greater of one thousand dollars or one hundred per cent of
the claim. The penalty imposed under division (A)(7) of this
section, any refund issued on the claim, and interest on any
refund from the date of the refund, may be assessed under section
5747.13 of the Revised Code as tax, penalty, or interest imposed
under section 5733.41, 5747.02, or 5747.41 of the Revised Code,
without regard to whether the person making
the claim is otherwise subject to the provisions of this chapter or
Chapter 5733. of the Revised Code,
and without regard to any time limitation for the assessment
imposed by division (A) of section 5747.13 of the Revised Code. (B) For purposes of this section, the taxes required to be
shown on the return shall be reduced by the amount of any part of
the taxes paid on or before the date, including any extensions of
the date, prescribed for filing the return. (C) Any penalty imposed under this section shall be in
addition to all other penalties imposed under this section. All
or part of any penalty imposed under this section may be abated
by the commissioner. All or part of any penalty imposed under
this section may be abated by the commissioner if the taxpayer,
qualifying entity, or employer shows that the failure to comply with
the provisions of this
chapter is due to reasonable cause and not willful neglect. Sec. 5747.221. For the purposes of sections 5747.20, 5747.21, and
5747.22 of the Revised Code, no item of income or deduction shall
be allocated or apportioned to this state to the extent that such item
represents or relates to the portion of an adjusted qualifying amount for
which the
withholding tax is not imposed under section 5747.41 of the Revised Code by reason of
division (C) of section 5733.401 of the Revised Code. This
section shall be applied without regard to division (I) of section
5733.40 of the Revised Code. Sec. 5747.24. This section is to be used solely for the
purposes of Chapters 5747. and 5748. of the Revised Code. (A)(1) As used in this section and section 5747.25 of the
Revised Code: (1) An (a) Except as otherwise provided in division
(A)(2) of this section, an individual "has one contact period in
this state"
if the individual is away overnight from his the individual's
abode located outside this state and while away overnight from that abode
spends at least some portion, however minimal, of each of two
consecutive days in this state.
(2)(b) An individual is considered to be "away overnight from
his the individual's abode located outside this state" if the
individual is away from his the individual's abode located
outside this state for a continuous period
of time, however minimal, beginning at any time on one day and
ending at any time on the next day.
(c) "Medical hardship" includes circumstances under which the
individual or a member of the individual's immediate or extended family is
admitted as a patient into a hospital located in this state, examined in this
state by a medical professional, admitted into a nursing home in this state,
receiving nursing care in this state while staying in a dwelling located in
this state, or otherwise receiving ongoing, necessary medical care in this
state. "Medical hardship" includes receiving treatment or care for acute or
chronic illness or obstetric treatment or care. (d) "Medical professional" means a person licensed under
Chapter
4715., 4723., 4725., 4729., 4730., 4731., 4732., 4734., 4753., 4755.,
4757., 4759., 4760., 4761., 4762., or 4773. of the Revised Code. (e) "Immediate or extended family" of an individual means
the
individual's spouse, children, grandchildren, parents, grandparents, siblings,
in-laws, or any of the individual's
dependents. (2) Up to thirty periods that would otherwise constitute contact
periods under division (A)(1)(a) of this section
shall not be considered contact
periods during a taxable year If the individual spends any
portion of either day of each such contact period for one or more
of the following purposes: (a) To provide services for no consideration or to raise funds
for an organization described in section 501(c)(3) of the
Internal
Revenue Code. "Consideration" does not include any
reimbursement
of the individual's actual expenses directly or indirectly related to
such activity. (b) To attend to a medical hardship involving the
individual or a member of the individual's immediate or extended
family or to attend a funeral involving a member of the individual's immediate
or extended family. (B) An individual who during a taxable year has no more
than one hundred twenty contact periods in this state, which need
not be consecutive, and who during the entire taxable year has at
least one abode outside this state, is presumed to be not
domiciled in this state during the taxable year. The tax
commissioner, in writing and by personal service or certified
mail, return receipt requested, may request a statement from an
individual verifying that the individual was not domiciled in
this state under this division during the taxable year. The
commissioner shall not make such a request after the expiration
of the period, if any, within which the commissioner may make an
assessment under section 5747.13 of the Revised Code against the
individual for the taxable year. Within sixty days after
receiving the commissioner's request, the individual shall submit
a written statement to the commissioner stating both of the
following: (1) During the entire taxable year, the individual was not
domiciled in this state; (2) During the entire taxable year, the individual had at
least one abode outside this state. The presumption that the individual was not domiciled in
this state is irrebuttable unless the individual fails to submit
the statement as required. If the individual fails to submit the
statement as required, he the individual is presumed under
division (C) of this
section to have been domiciled in this state the entire taxable
year. In the case of an individual who dies, the personal
representative of the estate of the deceased individual may
comply with this division by making to the best of the
representative's knowledge and belief the statement under this
division with respect to the deceased individual, and submitting
the statement to the commissioner within sixty days after
receiving the commissioner's request for it. An individual or personal representative of an estate who
knowingly makes a false statement under this division is guilty
of perjury under section 2921.11 of the Revised Code. (C) An individual who during a taxable year has less than
one hundred eighty-three contact periods in this state, which
need not be consecutive, and who is not irrebuttably presumed
under division (B) of this section to be not domiciled in this
state with respect to that taxable year, is presumed to be
domiciled in this state for the entire taxable year. An
individual can rebut this presumption for any portion of the
taxable year only with a preponderance of the evidence to the
contrary. An individual who rebuts the presumption under this
division for any portion of the taxable year is presumed to be
domiciled in this state for the remainder of the taxable year for
which he the individual does not provide a preponderance of the
evidence to the contrary. (D) An individual who during a taxable year has at least
one hundred eighty-three contact periods in this state, which
need not be consecutive, is presumed to be domiciled in this
state for the entire taxable year. An individual can rebut this
presumption for any portion of the taxable year only with clear
and convincing evidence to the contrary. An individual who
rebuts the presumption under this division for any portion of the
taxable year is presumed to be domiciled in this state for the
remainder of the taxable year for which he the individual does
not provide clear and convincing evidence to the contrary. (E) If the tax commissioner challenges the number of
contact periods an individual claims to have in this state during
a taxable year, the individual bears the burden of proof to
verify such number, by a preponderance of the evidence. An
individual challenged by the commissioner is presumed to have a
contact period in this state for any period for which he does not
prove by a preponderance of the evidence that he the individual
had no such contact period. Sec. 5747.39. As used in this section, "eligible employee" and
"eligible training costs" have the same meanings as in section 5733.42
of the Revised Code, and "pass-through entity" includes a sole
proprietorship. For taxable years beginning after December 31, 2000 there is
hereby allowed a nonrefundable credit against the tax
imposed by section 5747.02 of the Revised Code for a taxpayer that is an investor in a
pass-through
entity for which a tax credit certificate is issued under section 5733.42
of the Revised Code. The amount
of eligible training costs for which a credit may be claimed by all taxpayers
that are investors in an entity shall equal one-half of the average of the
eligible training costs incurred by the entity during the three
calendar years that end in the taxable year for which the credit is claimed,
but shall not exceed one
thousand dollars for each
eligible employee on account of whom such costs were paid or incurred by the
entity, and the total amount of credits that may be claimed by all such
taxpayers shall not exceed one hundred thousand dollars each year. Each
taxpayer's credit shall be claimed for the taxpayer's taxable year that
includes the last day of the third calendar year of the three-year period
during which
eligible training costs are paid or
incurred by the entity. The credit may be claimed for
eligible training costs paid or incurred on
or before December 31, 2003. The amount of a taxpayer's credit shall
equal the taxpayer's interest in the entity on the last day of the third
calendar
year of the three-year period ending in or with the last day of the taxpayer's
taxable year, multiplied
by the credit available to the entity as computed by the entity. The credit shall be claimed in the order prescribed by section 5747.98
of the Revised Code. A taxpayer may carry forward the credit to the
extent that the taxpayer's credit exceeds the
taxpayer's tax due after allowing for any other credits that
precede the credit allowed by this section in the order prescribed
by section 5747.98 of the Revised Code. The taxpayer may carry
the excess credit forward for three taxable years following the taxable
year for which the taxpayer first claims the credit under this section. A pass-through entity shall apply to the director of job and family
services
for a tax credit certificate in the manner prescribed by
division (C) of section 5733.42 of the Revised Code. divisions
(C) to (H) of that section
govern the tax credit allowed by this section, except that "taxable year"
shall be substituted for
"tax year" wherever that phrase appears in
those divisions, and
that "pass-through entity" shall be substituted for "taxpayer" wherever
"taxpayer" appears in those divisions. Sec. 5747.98. (A) To provide a uniform procedure for
calculating the amount of tax due under section 5747.02 of the
Revised Code, a taxpayer shall claim any credits to which the
taxpayer is
entitled in the following order: (1) The retirement income credit under division (B) of
section 5747.055 of the Revised Code; (2) The senior citizen credit under division (C) of
section 5747.05 of the Revised Code; (3) The lump sum distribution credit under division (D) of
section 5747.05 of the Revised Code; (4) The dependent care credit under section 5747.054 of
the Revised Code; (5) The lump sum retirement income credit under division
(C) of section 5747.055 of the Revised Code; (6) The lump sum retirement income credit under division
(D) of section 5747.055 of the Revised Code; (7) The lump sum retirement income credit under division
(E) of section 5747.055 of the Revised Code; (8) The credit for displaced workers who pay for job
training under section 5747.27 of the Revised Code; (9) The campaign contribution credit under section
5747.29
of
the Revised Code; (10) The twenty-dollar personal exemption credit under
section 5747.022 of the Revised Code; (11) The joint filing credit under division (G) of
section 5747.05 of the Revised Code; (12) The nonresident credit under division (A) of
section 5747.05 of the Revised Code; (13) The credit for a resident's out-of-state income
under division (B) of section 5747.05 of the Revised Code; (14) The credit for employers that enter
into agreements with child day-care centers under section 5747.34 of the
Revised Code; (15) The credit for employers that reimburse employee
child day-care
expenses under section 5747.36 of the Revised Code; (16) The credit for adoption of a minor child under section
5747.37 of the Revised Code; (17) The credit for purchases of lights and reflectors under section
5747.38 of the Revised Code; (18) The credit for manufacturing investments under
section 5747.051 of the Revised Code; (19) The credit for purchases of new manufacturing
machinery and equipment
under section 5747.26 or section 5747.261 of the Revised Code; (20) The second credit for purchases of new manufacturing
machinery and
equipment and the credit for using Ohio coal under section 5747.31 of the
Revised Code; (21) The job training credit under section 5747.39 of the Revised Code; (22) The enterprise zone credit under section 5709.66 of
the Revised Code; (22)(23) The credit for the eligible costs associated with a
voluntary action
under section 5747.32 of the Revised Code;
(23)(24) The credit
for employers that establish on-site child day-care centers under section
5747.35 of the Revised Code;
(24)(25) The credit for purchases of qualifying grape
production property under section 5747.28 of the Revised Code;
(25)(26) The export sales credit under section 5747.057 of
the Revised Code;
(26)(27) The credit for research and development and
technology transfer investors under section 5747.33 of the Revised Code;
(27)(28) The enterprise zone credits under
section 5709.65 of the Revised Code;
(28)(29) The refundable jobs creation credit
under section 5747.058 of the Revised Code;
(29)(30) The refundable credit for taxes paid by a qualifying
entity granted under section 5747.059 of the Revised Code;
(30)(31) The refundable credits for taxes paid by a
qualifying
pass-through
entity granted under division (J) of section 5747.08 of the Revised Code.
(B) For any credit, except the refundable credits enumerated in
divisions
(A)(28), (29), and (30), and (31) of this
section and the credit granted under division
(I) of section
5747.08 of the Revised Code, the amount of the credit
for a taxable year shall not
exceed the tax due after allowing for any other credit that
precedes it in the order required under this section. Any excess
amount of a particular credit may be carried forward if
authorized under the section creating that credit. Nothing in this chapter
shall be construed to allow a taxpayer to claim, directly or indirectly, a
credit more than once for a taxable year. SECTION 2 . That existing sections 9.66, 718.011, 718.09, 718.10, 718.14,
3318.035, 3709.28, 4141.21, 4933.33, 5703.052,
5727.11, 5727.111, 5727.33, 5727.80, 5727.81, 5727.82,
5727.83, 5727.84, 5727.85, 5727.86, 5727.87, 5727.88, 5727.89,
5727.90, 5727.91, 5727.92, 5727.93, 5727.94, 5727.95, 5733.053, 5733.06,
5733.40, 5733.42, 5745.01, 5745.02, 5745.03, 5745.04, 5745.05, 5745.07,
5745.08, 5745.09, 5745.11, 5745.13, 5747.15, 5747.24, and 5747.98 of the
Revised Code are hereby repealed.
SECTION 3 . That Sections 3, 4, and 16 of Am. Sub. S.B. 3 of the 123rd
General Assembly be amended to read as follows:
"Sec. 3. Sections 5727.111 and Section 5727.15 of the Revised
Code, as amended by
this act Am. Sub. S.B. 3 of the
123rd General Assembly, shall first
apply to tax year 2001. Sec. 4. Sections 4933.33, 5727.30, and 5727.32, and 5727.33 of
the
Revised Code, as amended by this act Am. Sub.
S.B. 3 of the 123rd General
Assembly, shall first apply to the excise tax
assessed by the Tax Commissioner for tax year 2002. Sec. 16. The Director of Development
shall study and report to the General Assembly concerning the
desirability of implementing a tax credit program for the creation
of new jobs in Ohio to manufacture or assemble generating
equipment and components for global use. The director shall
determine and recommend how the tax credit should be structured to
encourage investments in facilities, equipment, and services
related to the manufacture, assembly, shipping preparation, and
transportation of generation equipment or components for global
use, and to create new jobs as a result of such investments. On or before December 31, 2000 June 30, 2001,
the
Director of Development shall
issue a report of its findings to the Senate and House of
Representatives in accordance with division (B) of section 101.68
of the Revised Code." SECTION 4 . That existing Sections 3, 4, and 16 of Am. Sub. S.B. 3 of
the 123rd General Assembly are hereby repealed.
SECTION 5 . That Section 174 of Am. Sub. H.B. 283 of the 123rd
General Assembly be amended to read as follows:
"Sec. 174. Sections 122.15, 122.152, 129.55, 129.63, 129.73,
718.01, 1555.12, 5528.36, 5703.052, 5703.053, 5727.01, 5727.30,
5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 5727.42, 5727.48,
5727.50, 5727.60, and 5733.16 of the Revised Code, as amended by
this act Am. Sub. H.B. 283 of
the 123rd General Assembly, first
apply to the excise tax year beginning May 1, 2000. Sections
5727.24, 5727.25, 5727.26, 5727.27, 5727.28, and 5727.29 of the Revised Code,
as enacted by this act Am. Sub.
H.B. 283 of the 123rd General
Assembly, first apply to gross receipts derived from taxable
activities that occur after April 30, 2000. Natural gas
companies and combined
electric and gas companies must file an annual statement pursuant
to section 5727.31 of the Revised Code on or before August 1,
2000, and the Tax Commissioner shall issue an assessment pursuant
to section 5727.38 of the Revised Code on or before the first
Monday in November for the period ending April 30, 2000. Such
companies shall have made and shall make payments of the excise tax on gross
receipts
imposed by section 5727.30 of the Revised Code on or before
October 15, 1999, March 1, 2000, and June 1, 2000, in accordance
with section 5727.31 of the Revised Code. Division (D) of section 5727.42 of
the Revised Code does not apply to the portion of any assessment issued by the
Tax Commissioner for the period ending April 30, 2000, that reflects the
excise tax owed on those gross receipts from operating as a natural gas
company that would have been subject to the tax under section 5727.24 of the
Revised Code, as enacted by this act Am. Sub.
h.B. 283 of the 123rd General
Assembly." SECTION 6 . That existing Section 174 of Am. Sub. H.B. 283 of the
123rd General Assembly is hereby repealed.
SECTION 7 . That Sections 3, 4, and 5 of
Sub. H.B. 483 of the 123rd General Assembly be amended to read as
follows:
"Sec. 3. Sections 113.061, 718.01, 718.011, 718.02, 718.08, 5703.053,
5703.19,
5703.21, and 5745.01 to 5745.16 of the Revised Code, as amended or enacted by
this act Sub. H.B. 483 of the
123rd General Assembly, take effect January
1, 2002 2001, or the earliest date thereafter permitted by
law. Sec. 4. Notwithstanding division (B) of section 5745.04 of the
Revised Code as enacted by this act:
Any term used in this section has the same meaning as in section
5745.01 of the Revised Code. (A) A taxpayer is first subject to the tax reporting and payment
requirements of Chapter 5745. of the Revised Code for its taxable year
that includes January 1, 2002, subject to division (c) of
this section in the case of an
electric light company that is not an electric company or combined
company.
An electric
company or a combined company having a taxable year that includes
days in both calendar year 2001 and calendar year 2002 shall
adjust its adjusted federal taxable income for that taxable year
to include only that income attributable to calendar year 2002.
The adjustment shall be effected by multiplying the company's
adjusted federal taxable income by a fraction, the numerator of which is
the number of days of the company's taxable year that are in 2002,
and the denominator of which is the total number of days in that taxable
year. (A)(B) Each electric company and combined company, as
defined
in section 5727.01 of the Revised Code, shall file a declaration of
estimated tax report and remit 20% of the combined tax
liability for its taxable year ending in 2002 on or before the
fifteenth day of the fourth,
sixth, ninth, and twelfth month of that
taxable year. The, unless the company's taxable year begins
before September 1, 2001. If the company's taxable year begins
before that date, the company's first report and remittance shall be made on
the fifteenth day of the fourth, sixth, ninth, or twelfth month of its
taxable year, whichever such day occurs first on or after January 15,
2002. The first
remittance shall equal 20% of the combined tax liability multiplied by the
number of such estimated reporting and payment days
occurring on or before January 15, 2002.
The company shall indicate on the
report the portion of the remittance that is payable to each
municipal corporation to which the company estimates its Ohio net income will
be apportioned for that taxable year under section 5745.02 of the Revised Code
as enacted by this act Sub. H.B. 483 of
the 123rd General Assembly No penalty
or interest shall be imposed on such a company if the
estimated tax remitted under division (B) of this section is
remitted within the time prescribed by that this division and
the total of the estimated taxes remitted equals at least 80% of the
combined tax liability for the taxable year. (B)(C)(1) Except as otherwise provided in division
(B)(C)(2) of this section, each electric light company that is
not an electric company or combined company as defined in section 5727.01
of
the Revised Code and that paid a municipal corporation's income tax in
2001
the taxable year prior to the taxable year that
begins on or after January 1, 2002,
shall file a declaration of estimated tax report and remit
25% of the company's combined tax liability for 2001, in lieu of
the estimated combined tax liability for 2002, on
the prior taxable year on or before the
fifteenth day of the fourth, sixth, ninth, and twelfth month after
the end of the company's prior taxable year ending in 2001 The
company
shall indicate on the report the portion of the remittance that is
payable to each municipal corporation to which the company estimates its Ohio
net income will be apportioned for that taxable year under section 5745.02 of
the Revised Code as enacted by this act
Sub. H.B. 483 of
the 123rd General Assembly No penalty
or interest shall be imposed on such a
company if the total of the estimated taxes remitted equals at
least 80% 100% of the combined tax liability for
the prior taxable year ending in 2001 or 100% of the combined tax
liability for the
taxable year ending in 2000.
(2) Division (B)(C)(1) of this section applies only to an
electric
light company described in that division that makes an election
under section 5745.031 of the Revised Code that is in effect for
tax its taxable year that includes December
31, 2002, or its taxable year beginning on or after
January 1, 2002, but ending before December 31, 2002, if the
company's taxable year is less than twelve months An electric light
company may not
elect to be a taxpayer under that section for
any taxable year that begins before January 1, 2002. Sec. 5. Notwithstanding sections 5745.03 and 5745.04 of the
Revised Code, as enacted by this act
Sub. H.B. 483 of
the 123rd General Assembly, the
Treasurer of State
shall credit to the Municipal Income Tax Administrative Fund, from remittances
received under those sections for taxable
years ending in 2002 and 2003, the amount certified by
the Tax Commissioner as the amount
necessary to defray the Tax Commissioner's expenses of
administering Chapter 5745. of the Revised Code for 2002
and 2003, respectively. The amount shall not exceed 5%
of the remittances received for the respective year. The Tax
Commissioner shall certify that amount to the Treasurer of State
not later than January 31, 2002, and January 31, 2003,
respectively." SECTION 8 . That existing Sections 3, 4, and 5 of Sub. H.B. 483 of
the 123rd General Assembly are hereby repealed.
SECTION 9 . That sections 718.01, 718.011, 718.02, and 718.08 of the Revised
Code as amended or enacted by Sub. H.B. 483 of the 123rd General Assembly
shall take effect on the effective date of this section.
This section is intended to accelerate the effective date of sections 718.01,
718.011, 718.02, and 718.08 of the Revised Code from January 1,
2002, to the earliest time permitted by law upon the enactment of this act.
The effective date of those sections was delayed unintentionally to correspond
with delayed effective dates contained in Sub. S.B. 3 of the 123rd General
Assembly (January 1, 2002), but the delay inadvertently postpones the effect
of
other amendments and enactments made by Sub. H.B. 477 of the 123rd General
Assembly. SECTION 10 . The excise tax imposed by section 5727.811 of the
Revised Code shall first apply to natural gas distributed on and
after July 1, 2001. Before that date, a natural gas distribution
company shall register with the Tax Commissioner in accordance
with section 5727.93 of the Revised Code, as amended by this act.
SECTION 11 . (A) Not later than 90 days after the effective date of
this act, each natural gas distribution company in this state having more than
50,000 customers, and each natural gas distribution company in this state with
50,000 customers or less that does not make an election under division (C) of
section 5727.811 of the Revised Code, as enacted by this act, shall file with
the Public Utilities Commission revised schedules that do both of
the following:
(1) For all customers, reduce natural gas MCF rates,
effective April 1, 2001, in
an amount equal to the amount included in rates in each company's
last base rate case for the differential resulting from the reduction in
the personal property tax assessment rate to 25% of true value as
provided by section 5727.111 of
the Revised Code, as amended by this act; (2) Establish a rider that provides for the collection, beginning July 1,
2001, of the
excise tax imposed by section 5727.811 of the Revised Code, as
enacted by this act.
The Commission shall approve a revised schedule filed under this
section within 60 days after it is filed. (B) To the extent possible, the rate reduction provided by
division (A)(1) of this section and the tax rider provided by
division (A)(2) of this section shall be designed to avoid revenue
responsibility shifts among the natural gas distribution company's
customer rate schedules or between the natural gas distribution
company's commodity sales service and distribution service. SECTION 12 . The Department of Taxation, in conjunction with the Public
Utilities Commission, shall study the effects, fairness,
and structure of the kilowatt-hour tax imposed by section 5727.81
of the Revised Code, as amended by this act, with respect to
commercial and industrial purchasers of electricity.
Not later than September 30, 2007, the Department shall issue a
report of its findings to the President of the Senate, the Speaker
of the House of Representatives, the majority leaders of the
Senate and the House of Representatives, the minority leaders of
the Senate and the House of Representatives, and the chairpersons
of the standing committee of the House of Representatives and the
Senate that primarily considers tax legislation. SECTION 13 . The amendment or enactment by this act of
sections 5733.053, 5733.06, 5733.40, 5747.221, and 5747.24 of the Revised Code
first
applies to tax year 2002.
SECTION 14 . As used in this section,
"Appalachian region" has the same meaning as in section 107.21 of
the Revised Code.
There is hereby created the Appalachian Energy Grant Authority.
The purpose of the Authority is to make grants to eligible
applicants to enhance and maintain the economic welfare of the
Appalachian region through the support of manufacturing in the
region, which is hereby declared to be a public purpose. The
Authority shall consist of the Director of Development and the
Director of Budget and Management, or their respective designees,
and the Deputy Director of the Governor's Office of Appalachian
Ohio created under section 107.21 of the Revised Code. The
Authority shall conduct its first meeting not later than July 1,
2001, and shall designate a chairperson from among its members.
Thereafter, the Authority shall meet at the call of the
chairperson. The Authority may make grants to any business enterprise
satisfying all of the following: (A) The enterprise is engaged in manufacturing in the Appalachian
region. (B) During 1999, the enterprise consumed at least 550 million
kilowatt hours of electricity. (C) The average cost per kilowatt hour of electricity consumed by
the enterprise during 1999 was less than $0.025. (D) The imposition of the tax under section 5727.81 of the
Revised Code significantly increases the enterprise's
per-kilowatt-hour cost of electricity, including the tax, compared
to the enterprise's per-kilowatt-hour cost before the tax was
imposed. (E) The awarding of the grant to the enterprise is likely, in the
opinion of the Authority, to enhance or maintain the economic
welfare of the Appalachian region. To receive a grant under this section, an enterprise shall apply
to the Authority in the manner and within the time prescribed by
the Authority. The Authority may require the applicant to provide
such information as the Authority considers necessary to determine
the applicant's eligibility for the grant. The employees of the
Department of Development, Office of Budget and Management, and
the Governor's Office of Appalachian Ohio shall provide any staff
assistance necessary to carry out this section, as directed by the
Authority. Grants may be made under this section beginning July 1, 2001, and
before July 1, 2004, from money appropriated for that purpose by
the General Assembly. The Authority shall cease to exist on July
1, 2004. The Authority is not an agency subject to section 101.82
and 101.84 of the Revised Code. This section is hereby repealed, effective July 1, 2004. SECTION 15 . The amendment by this act of section 5733.42 of the Revised Code
first applies to credits claimed by a taxpayer, as defined in section 5733.04
of the Revised Code, for tax year 2002. Section 16 . Section 5703.052 of the Revised Code is
presented in this act
as a composite of the section as amended by both
Am. Sub. H.B. 283 and Am. Sub. S.B. 3 of the 123rd General Assembly,
with the new language of neither of the acts shown in capital letters.
This is in recognition of the principle stated in division (B) of section
1.52 of the Revised Code that such amendments are to be
harmonized where not substantively irreconcilable and constitutes
a legislative finding that such is the resulting version in
effect prior to the effective date of this act. SECTION 17 . This act is hereby declared to be an emergency
measure necessary for the immediate preservation of the public
peace, health, and safety. The reason for such necessity is to
provide, at the earliest possible time, for equitable taxation of
participants in the natural gas markets. Therefore, this act
shall go into immediate effect.
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