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(124th General Assembly)(Amended Substitute Senate Bill Number 180)
AN ACT
To amend sections 122.171, 149.43, 718.01, 718.14,
5703.21,
5733.98, 5747.98,
and 6111.31 and to
enact
sections
150.01,
150.02,
150.03, 150.04,
150.05,
150.06,
150.07, 150.08,
150.09,
150.10, 5709.211,
5725.19,
5729.08,
5733.49, 5747.80, and 6111.311 of
the
Revised Code
to
create
the Ohio
Venture
Capital
Program to
provide
for the
direction of moneys
of a
private
investment fund
into venture capital
investments
that
are
secured by
program
revenues or
tax
credits; to modify eligibility for and other
terms of the job retention tax credit; to
prohibit
municipal corporations from taxing S
corporation
shareholders' distributive shares of
net profits;
to
require state and
county tax
officials to notify
local taxing
authorities of
pending pollution
control tax
exemption
applications; to adjust the
debt service formula allocation of Youngstown State
University; and to repeal
Section 4 of
this act
six
months after its
effective date.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 122.171, 149.43, 718.01, 718.14,
5703.21,
5733.98, 5747.98,
and 6111.31 be
amended and
sections
150.01,
150.02, 150.03,
150.04, 150.05,
150.06,
150.07,
150.08,
150.09,
150.10, 5709.211,
5725.19, 5729.08, 5733.49, 5747.80, and
6111.311
of
the Revised
Code
be
enacted to read as follows:
Sec. 122.171. (A) As used in this section: (1) "Capital investment project" means a plan of investment
at a project site for the acquisition, construction, renovation,
or repair of
buildings, machinery, or equipment,
or for
capitalized costs of basic research and new product development
determined in accordance with generally accepted accounting
principles, but does not
include
any of the following: (a) Payments made for the acquisition of personal property
through
operating leases; (b) Project costs paid before January 1, 2002, or after
December 31, 2006; (c) Payments made to a related member as defined in section
5733.042 of the Revised Code. (2) "Eligible business" means a business with Ohio
operations
that
satisfying all of the following: (a) Employed an average of at least one thousand employees
in full-time employment positions at a project site during each of
the
twelve months preceding the application for a tax credit under
this section; and (b) On or after January 1, 2002, has made payments for the
capital investment project of
at
either of the following:
(i) At least two hundred million dollars
in the aggregate
at the project
site during a period of three consecutive calendar
years
that
includes
including the calendar year that includes a
day of the
taxpayer's taxable year with respect to which the
credit is
granted;
(ii) If the average wage of all full-time employment
positions at the
project site is greater than four hundred per
cent of the federal
minimum wage, at least one hundred million
dollars in the aggregate at the project
site during a period of
three consecutive calendar years including
the calendar year that
includes a day of the taxpayer's taxable
year with respect to
which the credit is granted. (c)
Is engaged at the project site primarily as a
manufacturer or is providing significant corporate administrative
functions;
(d) Has had a capital investment project reviewed and
approved by the tax credit
authority as provided in divisions (C),
(D), and (E) of this
section. (3) "Full-time employment position" means a position of
employment for consideration for at least thirty-five hours a
week, or any other standard of service generally accepted by
custom as full-time employment within the industry, that has been
filled for at least
one hundred eighty days immediately preceding
the filing of an
application under this section, and for at least
one hundred eighty days during each taxable year with respect to
which the credit is
granted. (4)
"Manufacturer" has the same meaning as in section
5739.011 of the Revised Code.
(5) "Project site" means an integrated complex
of facilities
in this state, as specified
by the tax credit authority under this
section, within a
five-mile
fifteen-mile radius where a taxpayer
in this state is primarily operating as
a
manufacturer
as defined
in section 5739.011 of the Revised Code
an eligible business. (B) The tax credit authority created under section 122.17 of
the Revised Code may grant tax credits under this section for the
purpose of fostering job retention in this state. Upon
application by an eligible business and upon consideration of the
recommendation of the director of budget and management, tax
commissioner, and director of development under division (C) of
this section, the tax credit authority may grant to an eligible
business a nonrefundable credit against the tax imposed by section
5733.06 or 5747.02 of the Revised Code for a period up to ten
taxable years. The credit shall be in an
amount not exceeding
seventy-five per cent of the Ohio income tax withheld
from the
employees of the eligible business occupying full-time employment
positions at the
project site during the calendar year that
includes the last day of such business' taxable year
with respect
to which the
credit is granted. The amount of the credit shall
not be based on
the Ohio income tax withheld from full-time
employees for a
calendar year prior to the calendar year in which
the
two hundred
million dollar minimum investment
requirement
referred to in
division
(A)(2)(b) of this section is completed.
The
credit shall
be
claimed only for the taxable years specified
in the
eligible
business' agreement with the tax credit authority
under division
(E) of this section, but in no event shall the
credit be claimed
for a taxable year terminating before the date
specified in the
agreement. Any unused portion of a tax credit may be carried forward
for
not more than three additional years after the year for which
the
credit is granted.
(C) A taxpayer
who
that proposes a capital investment
project to
retain jobs in this state may apply to the tax credit
authority to
enter into an agreement for a tax credit under this
section. The
director of development shall prescribe the form of
the
application. After receipt of an application, the authority
shall
forward copies of the application to the director of budget
and
management, the tax commissioner, and the director of
development,
each of whom shall review the application to
determine the
economic impact the proposed project would have on
the state and
the affected political subdivisions and shall submit
a summary of
their determinations and recommendations to the
authority. The
authority shall make no agreements under this
section after June
30, 2007. (D) Upon review of the determinations and recommendations
described in division (C) of this section, the tax credit
authority may enter into an agreement with the taxpayer for a
credit under this section if
it
the authority determines all of
the following: (1) The taxpayer's capital investment project will result in
the retention of full-time employment positions in this state. (2) The taxpayer is economically sound and has the ability
to complete the proposed capital investment project. (3) The taxpayer intends to and has the ability to maintain
operations at the project site for at least twice the term of the
credit. (4) Receiving the credit is a major factor in the taxpayer's
decision to begin, continue with, or complete the project. (5) The political subdivisions in which the project is
located have agreed to provide substantial financial support to
the project. (E) An agreement under this section shall include all of the
following: (1) A detailed description of the project that is the
subject of the agreement, including the amount of the investment,
the period over which the investment has been or is being made,
and the number of full-time employment positions at the project
site;. (2) The method of calculating the number of full-time
employment positions as specified in division (A)(3) of this
section;. (3) The term and percentage of the tax credit,
and the
first
year for which the credit may be claimed;. (4) A requirement that the taxpayer maintain
operations at
the project site for at least twice the number
of years as the
term of the credit;. (5) A requirement that the taxpayer retain a specified
number of full-time employment positions at the project site and
within this state for the term of the credit, including a
requirement that the taxpayer continue to employ at least one
thousand employees in full-time employment positions at the
project
site during the entire term of any agreement, subject to
division (E)(7)
of this section;. (6) A requirement that the taxpayer annually report to the
director of development the number of full-time employment
positions subject to the credit, the amount of tax withheld from
employees in those positions, the amount of the payments made for
the capital investment project, and any other information the
director needs to perform the director's duties under this
section;. (7) A requirement that the director of development annually
review the annual reports of the taxpayer to verify the
information reported under division (E)(6) of this section and
compliance with the agreement. Upon verification, the director
shall issue a certificate to the taxpayer stating that the
information has been verified and identifying the amount of the
credit for the taxable year. The director shall not issue a
certificate for any year in which the total number of filled
full-time employment positions for each day of the calendar year
divided by three hundred sixty-five is less than ninety per cent
of the full-time employment positions specified in division (E)(5)
of this section. In determining the number of full-time
employment positions, no position shall be counted that is filled
by an employee who is included in the calculation of a tax credit
under section 122.17 of the Revised Code. (8)(a) A provision requiring that the taxpayer, except as
otherwise provided in division (E)(8)(b) of this section, shall
not relocate employment positions from elsewhere in this state to
the project site that is the subject of the agreement for the
lesser of five years from the date the agreement is entered into
or the number of years the taxpayer is entitled to claim the
credit. (b) The taxpayer may relocate employment positions from
elsewhere in this state to the project site that is the subject of
the agreement if the director of development determines both of
the following: (i) That the site from which the employment positions would
be relocated is inadequate to meet market and industry conditions,
expansion plans, consolidation plans, or other business
considerations affecting the taxpayer; (ii) That the legislative authority of the county, township,
or municipal corporation from which the employment positions would
be relocated has been notified of the relocation. For purposes of
this section, the movement of an employment
position from one
political subdivision to another political
subdivision shall be
considered a relocation of an employment
position unless the movement is confined to the project site.
The
transfer of an individual employee from one
political
subdivision
to another political subdivision shall not
be
considered a
relocation of an employment position as long as
the
individual's
employment position in the first political
subdivision is
refilled. (9) A waiver by the taxpayer of any limitations periods
relating to assessments or adjustments resulting from the
taxpayer's failure to comply with the agreement. (F) If a taxpayer fails to meet or comply with any condition
or requirement set forth in a tax credit agreement, the tax credit
authority may amend the agreement to reduce the percentage or term
of the credit. The reduction of the percentage or term shall take
effect in the taxable year immediately following the taxable year
in which the authority amends the agreement. If the taxpayer
relocates employment positions in violation of the provision
required under division (D)(8)(a) of this section, the taxpayer
shall not claim the tax credit under section 5733.0610 of the
Revised Code for any tax years following the calendar year in
which the relocation occurs, or shall not claim the tax credit
under section 5747.058 of the Revised Code for the taxable year in
which the relocation occurs and any subsequent taxable years. (G) Financial statements and other information submitted to
the department of development or the tax credit authority by an
applicant for or recipient of 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 chairperson of the authority may
make use of the statements and other information for purposes of
issuing public reports or in connection with court proceedings
concerning tax credit agreements under this section. Upon the
request of the tax commissioner, the chairperson of the authority
shall provide to the commissioner any statement or other
information submitted by an applicant for or recipient of a tax
credit in connection with the credit. The commissioner shall
preserve the confidentiality of the statement or other
information. (H) A taxpayer claiming a tax credit under this section
shall submit to the tax commissioner a copy of the director of
development's certificate of verification under division (E)(7) of
this section for the taxable year. However, failure to submit a
copy of the certificate does not invalidate a claim for a credit. (I) For the purposes of this section, a taxpayer may include
a partnership, a corporation that has made an election under
subchapter S of chapter one of subtitle A of the Internal Revenue
Code, or any other business entity through which income flows as a
distributive share to its owners. A tax credit received under
this section by a partnership, S-corporation, or other such
business entity shall be apportioned among the persons to whom the
income or profit of the partnership, S-corporation, or other
entity is distributed, in the same proportions as those in which
the income or profit is distributed. (J) If the director of development determines that a
taxpayer
who has
that received a tax credit under this section is
not
complying with the requirement under division (E)(4) of this
section
or reduces the number of employees agreed to under
division (E)(5) of this section by more than ten per cent, the
director shall notify the tax credit authority of the
noncompliance. After receiving such a notice, and after giving
the taxpayer an opportunity to explain the noncompliance, the
authority may terminate the agreement and require the taxpayer to
refund to the state all or a portion of the credit claimed in
previous years, as follows:
(1) If the taxpayer maintained operations at the project
site for less than the term of the credit, the amount required to
be refunded shall not exceed the amount of any tax credits
previously allowed and received under this section.
(2) If the taxpayer maintained operations at the project
site longer than the term of the credit but less than one and
one-half times the term of the credit, the amount required to be
refunded shall not exceed fifty per cent of the sum of any tax
credits previously allowed and received under this section.
(3) If the taxpayer maintained operations at the project
site for at least one and one-half times the term of the credit
but less than twice the term of the credit, the amount required to
be refunded shall not exceed twenty-five per cent of the sum of
any tax credits previously allowed and received under this
section. In determining the portion of the credit to be refunded to
this state, the authority shall consider the effect of market
conditions on the taxpayer's project and whether the taxpayer
continues to maintain other operations in this state. After
making the determination, the authority shall certify the amount
to be refunded to the tax commissioner. The commissioner shall
make an assessment for that amount against the taxpayer under
Chapter 5733. or 5747. of the Revised Code. The time limitations
on assessments under Chapter 5733. or 5747. of the Revised Code do
not apply to an assessment under this division, but the
commissioner shall make the assessment within one year after the
date the authority certifies to the commissioner the amount to be
refunded.
If the director of development determines that a taxpayer
that received a tax credit under this section has reduced the
number of employees agreed to under division (E)(5) of this
section by more than ten per cent, the director shall notify the
tax credit authority of the noncompliance. After receiving such
notice, and after providing the taxpayer an opportunity to explain
the noncompliance, the authority may amend the agreement to reduce
the percentage or term of the tax credit. The reduction in the
percentage or term shall take effect in the taxable year in which
the authority amends the agreement. (K) The director of development, after consultation with the
tax commissioner and in accordance with Chapter 119. of the
Revised Code, shall adopt rules necessary to implement this
section. The rules may provide for recipients of tax credits
under this section to be charged fees to cover administrative
costs of the tax credit program. 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 of the standing
committees on economic development in the senate and the house of
representatives. (L) On or before the thirty-first day of March of each year,
the director of development 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. The
report shall include information on the number of agreements that
were entered into under this section during the preceding calendar
year, a description of the project that is the subject of each
such agreement, and an update on the status of projects under
agreements entered into before the preceding calendar year. Sec. 149.43. (A) As used in this section: (1) "Public record" means
records kept by
any
public
office, including, but not limited to, state, county,
city,
village, township, and school district units,
and records
pertaining to the delivery of educational
services by an
alternative
school in Ohio kept by a nonprofit or
for profit
entity operating such
alternative school pursuant to
section
3313.533 of the Revised
Code. "Public record" does not
mean any of
the following: (a) Medical records; (b) Records pertaining to probation and parole proceedings; (c) Records pertaining to actions under section 2151.85 and
division
(C) of section 2919.121 of
the Revised Code and to
appeals of actions arising under
those sections; (d) Records pertaining to adoption proceedings, including
the
contents of an adoption file maintained by the department of
health under
section 3705.12 of the Revised Code; (e) Information in a record contained in the putative father
registry
established by section 3107.062 of the Revised Code,
regardless of whether the
information is held by the department of
job and family
services or, pursuant to
section 3111.69 of the
Revised Code, the
office of child support in the
department or a
child support enforcement agency; (f) Records listed in division (A) of section 3107.42 of the
Revised Code or
specified in division (A) of section 3107.52 of
the Revised Code; (g) Trial preparation records; (h) Confidential law enforcement investigatory records; (i) Records containing information that is confidential
under
section 2317.023 or 4112.05 of the Revised Code; (j) DNA records stored in the DNA database
pursuant to
section 109.573 of the Revised Code; (k) Inmate records released by the department of
rehabilitation and
correction to
the department of youth services
or a court of record pursuant to division (E)
of section 5120.21
of the Revised Code; (l) Records maintained by the department of youth services
pertaining to
children in its custody released by the department
of youth services to the
department of rehabilitation and
correction pursuant to section 5139.05 of the
Revised Code; (m) Intellectual property records; (n) Donor profile records; (o) Records maintained by the department of job and
family
services pursuant to
section 3121.894 of the Revised Code; (p) Peace officer residential and familial information; (q) In the case of a county hospital operated
pursuant to
Chapter
339. of the Revised Code, information that constitutes a
trade secret,
as defined in section 1333.61 of the Revised Code; (r) Information pertaining to the recreational activities of
a person under
the age of eighteen; (s) Records provided to, statements made by review board
members
during meetings of, and all work products of a child
fatality review
board acting under sections 307.621 to 307.629 of
the Revised Code, other than
the report
prepared pursuant to
section 307.626
of the Revised Code; (t) Records provided to and statements made by the
executive
director of a public children services agency or a prosecuting
attorney acting
pursuant to section
5153.171 of the Revised Code
other than the information
released
under that section; (u) Test materials, examinations, or evaluation tools used
in an
examination for licensure as a nursing home administrator
that the board of
examiners of nursing home administrators
administers under section 4751.04 of
the Revised Code or contracts
under that section with a
private or government entity to
administer; (v) Records the release of which is prohibited by state or
federal law; (w) Proprietary information of or relating to any person
that is submitted to or compiled by the Ohio venture capital
authority created under section 150.01 of the Revised Code. (2) "Confidential law enforcement investigatory record"
means any record that pertains to a law enforcement matter of a
criminal, quasi-criminal, civil, or administrative nature, but
only to the extent that the release of the record would create a
high probability of disclosure of any of the following: (a) The identity of a suspect who has not been charged
with
the offense to which the record pertains, or of an
information
source or witness to whom confidentiality has been
reasonably
promised; (b) Information provided by an information source or
witness
to whom confidentiality has been reasonably promised,
which
information would reasonably tend to disclose the source's or
witness's
identity; (c) Specific confidential investigatory techniques or
procedures or specific investigatory work product; (d) Information that would endanger the life or physical
safety of law enforcement personnel, a crime victim, a witness,
or
a confidential information source. (3) "Medical record" means any document or combination of
documents, except births, deaths, and the fact of admission to or
discharge from a hospital, that pertains to the medical history,
diagnosis, prognosis, or medical condition of a patient and that
is generated and maintained in the process of medical treatment. (4) "Trial preparation record" means any record that
contains information that is specifically compiled in reasonable
anticipation of, or in defense of, a civil or criminal action or
proceeding, including the independent thought processes and
personal trial preparation of an attorney. (5) "Intellectual property record" means a record,
other
than a financial or administrative record, that is produced or
collected
by or for faculty or staff of a state institution of
higher learning in the
conduct of or as a result of study or
research on an educational, commercial,
scientific, artistic,
technical, or scholarly issue, regardless of whether the
study or
research was sponsored by the institution alone or in conjunction
with
a governmental body or private concern, and that has not been
publicly
released, published, or patented. (6) "Donor profile record" means all records about donors or
potential
donors to a public institution of higher education
except the names and
reported addresses of the actual donors and
the date, amount, and conditions
of the actual donation. (7) "Peace officer residential and familial information"
means
either of the following: (a) Any information maintained in a personnel record of a
peace officer that
discloses any of the following: (i) The address of the actual personal residence of a peace
officer, except for the state or political subdivision in which
the peace
officer resides; (ii) Information compiled from referral to or participation
in an
employee assistance program; (iii) The social security number, the residential telephone
number,
any bank account, debit card, charge card, or credit card
number, or the
emergency telephone number of, or any medical
information pertaining to, a peace officer; (iv) The name of any beneficiary of employment benefits,
including,
but not limited to, life insurance benefits, provided
to a peace officer by
the peace officer's employer; (v) The identity and amount of any charitable or employment
benefit deduction made by the peace officer's employer from the
peace
officer's compensation unless the amount of the deduction is
required by state
or federal law; (vi) The name, the residential address, the name of the
employer,
the address of the employer, the social security number,
the residential
telephone number, any bank account, debit card,
charge card, or credit card
number, or the emergency telephone
number
of the spouse, a former spouse, or any child of a peace
officer. (b) Any record that identifies a person's occupation as a
peace
officer other than statements required to include the
disclosure of that fact
under the campaign
finance law. As used in divisions (A)(7) and (B)(5) of this section,
"peace officer"
has the same meaning as in section 109.71 of the
Revised Code
and also includes the superintendent and troopers of
the state highway patrol;
it does not include the
sheriff of a
county or a supervisory employee who, in the absence of the
sheriff, is authorized to stand in for, exercise the authority of,
and perform
the duties of the sheriff. (8) "Information pertaining to the recreational activities
of a
person under the age of eighteen"
means information that is
kept in the ordinary course of business by a public
office, that
pertains to the recreational activities of a person under the age
of eighteen years, and that
discloses any of the following: (a) The address or telephone number of a person under the
age of
eighteen or the address or telephone number of that
person's parent, guardian,
custodian, or emergency contact person; (b) The social security number, birth date, or photographic
image
of a person under the age of eighteen; (c) Any medical record, history, or information pertaining
to a
person under the age of eighteen; (d) Any additional information sought or required about a
person
under the age of eighteen for the purpose of allowing that
person to
participate in any recreational activity conducted or
sponsored by a public
office or to use or
obtain admission
privileges to any recreational facility owned or operated by
a
public office. (B)(1) Subject to division (B)(4) of this section, all
public records shall
be promptly prepared and made
available for
inspection to any person at all reasonable times
during regular
business hours. Subject to division (B)(4) of this section,
upon
request, a public office or person
responsible for public records
shall make copies available at
cost, within a reasonable period of
time. In order to facilitate
broader access to public records,
public offices shall
maintain public records in a manner that they
can be made
available for inspection in accordance with this
division. (2) If any person chooses to obtain a copy of a public
record in
accordance with division (B)(1) of this section,
the
public office or person responsible for the public record shall
permit
that person to
choose to have the public record duplicated
upon paper, upon the same medium
upon which the public office or
person responsible for the public record keeps
it, or upon
any
other medium upon which the public office or person responsible
for the
public record determines
that it reasonably can be
duplicated
as an integral part of the normal operations of the
public office or person
responsible for the public record. When
the person
seeking the copy makes a choice under this division,
the public office or
person responsible for the public record
shall provide a copy of it in
accordance
with the choice made by
the person seeking the copy. (3) Upon a request made in accordance with division (B)(1)
of
this section, a public office or person responsible for public
records
shall transmit a copy of a public record to any person by
United
States mail within a reasonable period of time after
receiving the
request for the
copy. The public office or person
responsible for the public record may
require the person making
the request to pay in advance the cost of postage and other
supplies used in
the mailing. Any public office
may adopt a policy and procedures that it
will follow in
transmitting, within a reasonable period of time
after receiving
a request, copies of public records by
United
States mail pursuant to this
division. A public office that
adopts a policy and procedures
under this division shall comply
with them in performing its
duties under this division. In any policy and procedures adopted under this division, a
public office may limit the number of records requested by a
person that
the office will transmit by United States mail to ten
per
month, unless the person certifies to the office in writing
that the person
does not intend to use or forward the requested
records, or the information
contained
in them, for commercial
purposes. For purposes of this division, "commercial"
shall be
narrowly construed and does not include reporting or gathering
news,
reporting or gathering information to assist citizen
oversight or
understanding of the operation or activities of
government, or nonprofit
educational research. (4) A public office or person responsible for public records
is
not required to permit a person who is incarcerated pursuant to
a
criminal conviction or a juvenile adjudication to inspect or to
obtain a copy of any public record concerning a criminal
investigation or prosecution or concerning what would be a
criminal investigation or prosecution if the subject of the
investigation or prosecution were an adult, unless the request to
inspect or to obtain a copy of the record is for the purpose of
acquiring information that is subject to release as a public
record under this section and the judge who imposed the sentence
or made the adjudication with respect to the person, or the
judge's successor in office, finds that the information sought in
the public record is necessary to support what appears to be a
justiciable claim of the person. (5) Upon written request made and signed by a journalist on
or after
December 16,
1999, a
public office, or person responsible
for public records, having custody of
the records of the agency
employing a specified peace officer shall disclose
to the
journalist the address of the actual personal residence of the
peace
officer and, if the peace officer's spouse, former spouse,
or
child is employed by a public office, the name and address of
the
employer of the peace officer's spouse, former spouse, or
child.
The request shall include the journalist's name and title
and the
name and address of the journalist's employer and shall
state
that disclosure of the information sought would be in the
public
interest. As used in division (B)(5) of this section, "journalist"
means a
person engaged in, connected with, or employed by any news
medium, including a
newspaper, magazine, press association, news
agency, or wire service, a radio or television station, or a
similar medium, for the purpose of gathering, processing,
transmitting, compiling, editing, or disseminating information for
the
general public. (C) If a person allegedly is aggrieved by the failure of a
public office to promptly prepare a public record and to make
it
available to the person for inspection in accordance with
division
(B) of this section, or if a person who has requested a copy of a
public record allegedly is aggrieved by the failure of a public
office or the
person
responsible for the public record to make a
copy available to
the person allegedly aggrieved in accordance
with division (B) of this section, the person allegedly aggrieved
may commence a mandamus action to obtain a judgment that orders
the public office or the person responsible for the public
record
to comply with division (B) of this section and that
awards
reasonable attorney's fees to the person that instituted
the
mandamus action. The mandamus action may be commenced in the
court of common pleas of the county in which division (B) of this
section allegedly was not complied with, in the supreme court
pursuant to its original jurisdiction under Section 2 of Article
IV, Ohio Constitution, or in the court of appeals for the
appellate district in which division (B) of this section
allegedly
was not complied with pursuant to its original
jurisdiction under
Section 3 of Article IV, Ohio Constitution. (D) Chapter 1347. of the Revised Code does not limit the
provisions of this section. (E)(1) The bureau of motor vehicles may adopt rules pursuant
to
Chapter 119. of the Revised Code to reasonably
limit the number
of bulk commercial special extraction requests made by a
person
for the same records or for updated records during a calendar
year.
The rules may include provisions for charges to be made for
bulk commercial
special
extraction requests for the actual cost of
the bureau, plus special extraction
costs, plus ten per cent. The
bureau may charge for
expenses for redacting information, the
release of which is prohibited by
law. (2) As used in divisions (B)(3) and (E)(1) of this section: (a) "Actual cost" means the cost of depleted supplies,
records
storage media costs, actual mailing and alternative
delivery costs, or other
transmitting costs, and any direct
equipment operating and maintenance costs,
including actual costs
paid to private contractors for
copying services. (b) "Bulk commercial special extraction request" means a
request
for copies of a record for information in a format other
than the format
already available, or information that cannot be
extracted without examination
of all items in a records series,
class of records, or data base by a person
who intends to use or
forward the copies for surveys, marketing, solicitation, or resale
for
commercial purposes. "Bulk commercial special extraction
request" does not
include a request by a person who gives
assurance to the bureau that the
person making the request does
not intend to use or forward the requested
copies for surveys,
marketing,
solicitation, or resale for commercial purposes. (c) "Commercial" means profit-seeking production, buying, or
selling of any good, service, or other product. (d) "Special extraction costs" means the cost of the time
spent
by the lowest paid employee competent to perform the task,
the actual amount
paid to outside private contractors employed by
the bureau, or the actual cost
incurred to create computer
programs to make the special extraction. "Special
extraction
costs" include any charges paid to a public agency for computer or
records services. (3) For purposes of divisions (E)(1)
and (2) of this
section, "commercial surveys, marketing, solicitation, or
resale"
shall be narrowly construed and does not include reporting or
gathering
news, reporting or gathering information to assist
citizen oversight or
understanding of the operation or activities
of government, or nonprofit
educational research.
Sec. 150.01. (A) As used in this chapter: (1) "Authority" means the Ohio venture capital authority
created under section 150.02 of the Revised Code.
(2) "Lender" means any person that lends money to the
program fund as provided in this chapter.
(3) "Loss" means a loss incurred with respect to a lender's
loan to the program fund. Such a loss is incurred only if and to
the extent a program administrator fails to satisfy its
obligations to the lender to make timely payments of principal
or
interest as provided in the loan agreement
between
the lender and
the program administrator. "Loss" does not
include
either of the
following: (a) Any loss incurred by the program fund, including a loss
attributable to any investment made by a program
administrator; (b) Any loss of the capital required to be provided by a
program administrator, or income accruing to that capital, under
the agreement entered into under division (B) of section 150.05 of
the Revised Code. (4)
"Ohio-based business enterprise" means a person that is
engaged
in business, that employs at least one individual on a
full-time or part-time basis at a place of business in this
state,
including a person engaged in business if that person is a
self-employed individual, and that is in the seed or early stage
of business development requiring initial or early stage funding
or is an
established business enterprise developing new methods or
technologies. (5) "Ohio-based venture capital fund" means a venture
capital fund having its principal office in this state, where the
majority of the fund's staff are employed and where at least one
investment professional is employed who has at least five years of
experience in venture capital investment. (6) "Program fund" means the fund created under section
150.03 of the Revised Code. (B)
The general assembly declares that its purpose in
enacting Chapter 150. of the Revised Code is to increase the
amount of private investment capital available in this state for
Ohio-based business
enterprises in the seed or early stages of
business development
and
requiring initial or early stage funding,
as well as established Ohio-based business
enterprises developing
new methods or technologies, thereby
increasing
employment,
creating
additional wealth, and otherwise
benefiting
the economic
welfare
of the people of this state.
Accordingly, it
is the
intention of
the general assembly that the
Ohio venture
capital
authority focus
its
investment policy
principally on venture
capital funds investing in such Ohio-based business
enterprises. Sec. 150.02. (A)
There is hereby created the
Ohio venture
capital authority, which shall exercise the powers
and perform the
duties prescribed by
this
chapter. The exercise by
the authority
of its powers and duties is hereby
declared
to be an
essential
state governmental function.
The
authority is subject
to all laws
generally applicable to state
agencies and public
officials,
including, but not limited to, Chapter 119. and sections 121.22
and 149.43 of the Revised Code, to the extent those laws do not
conflict with this chapter. (B) The
authority shall consist of nine members. Seven of
the
members shall be appointed by the governor, with the advice
and
consent of the senate, from among the general public. All
appointed members shall
have
experience in
the field of banking,
investments,
commercial law,
or industry
relevant to the purpose
of the
Ohio venture
capital
program as stated in section 150.01 of
the Revised Code. The
director of development
and
tax
commissioner or their designees shall be ex officio,
nonvoting
members. Initial gubernatorial appointees to the
authority shall serve
staggered terms, with one term expiring on
January 31, 2004, two
terms expiring on
January 31, 2005, two terms expiring on
January
31,
2006, and two terms expiring on January 31, 2007. Thereafter,
terms of
office for all
appointees shall be for four years, with
each term ending on the same day of the same month as did the term
that it succeeds. A
vacancy on
the authority shall be filled in
the
same manner as the
original
appointment, except that a person
appointed to fill a
vacancy
shall be appointed to the remainder
of
the unexpired term.
Any
appointed member of the authority is
eligible
for
reappointment. A member of the authority may be removed by
the member's
appointing authority for misfeasance, malfeasance,
willful
neglect of duty, or other cause, after notice and
a public
hearing, unless the notice and hearing are waived in
writing by
the member. (C) Members
of the authority shall serve without
compensation, but shall
receive their reasonable and necessary
expenses incurred in the
conduct of authority business. The
governor shall
designate a member of the authority to serve as
chairperson. A majority
of the voting members of the
authority
constitutes a
quorum, and the
affirmative vote of a
majority of
the voting members
present is
necessary for any
action taken by
the authority.
A vacancy in
the voting membership
of the authority
does not impair the right
of a quorum
to exercise all
rights and
perform all duties of the
authority. (D) The
department of development shall provide the
authority with
office space and such technical assistance as the
authority
requires. Sec. 150.03. Within
ninety days after the effective date of
this section, the
authority shall establish,
and subsequently may
modify as it considers necessary, a written investment
policy
governing the investment of money from the
program fund, which is
hereby created. The program fund shall consist of the proceeds of
loans acquired by a program administrator. The authority is
subject to
Chapter
119. of the
Revised
Code
with respect to the
establishment or modification of
the policy. The policy
shall
meet all the following
requirements: (A)
It is consistent with the
purpose of the program stated
in section 150.01 of the
Revised
Code. (B) Subject to divisions (C), (D), and (E) of this section,
it
permits the investment of money from the program fund in
private,
for-profit venture capital funds, including funds of
funds, that
invest in enterprises in the
seed or early stage of
business
development or established
business enterprises
developing new
methods or technologies, and
that demonstrate
potential to
generate high levels of successful
investment
performance.
(C) It specifies that a program administrator or fund
manager employed by the program administrator shall invest not
less than seventy-five per cent of program fund money under its
investment authority in Ohio-based venture capital funds.
(D) It specifies that not less than an amount equal to
fifty per cent of program fund money invested in any venture
capital fund be invested by the venture capital fund in Ohio-based
business enterprises.
(E) It specifies that a program administrator or fund
manager employed by the program administrator shall not invest
money from the program fund in a venture capital fund to the
extent that the total amount of program fund money invested in the
venture capital fund, when combined with any program fund money
invested in a venture capital fund under the same management as
that venture capital fund,
exceeds the lesser of the following:
(1) Ten million dollars;
(2)(a) In the case of an Ohio-based venture capital fund,
fifty per cent of the total amount of capital committed to the
fund from all sources, after accounting for capital committed from
the program fund;
(b) In the case of any other venture capital fund, twenty
per cent of the total amount of capital committed to the fund from
all sources, after accounting for capital committed from the
program fund. (F) It specifies that a program administrator or fund
manager employed by the program administrator shall not commit
capital from the program fund to a venture capital fund until the
venture capital fund receives commitment of at least the same
amount from other investors in the fund. (G)
It specifies the general
conditions a private,
for-profit
investment fund must meet to be
selected as a program
administrator under
section 150.05 of the
Revised
Code, including,
as a significant selection standard, direct experience managing
external or nonproprietary capital in private equity fund of funds
formats. (H)
It specifies the criteria the authority must consider
when making a determination under division (B)(1) of section
150.04
of the Revised Code.
(I)
It includes investment standards and general
limitations
on allowable investments that the authority
considers reasonable
and
necessary to achieve the purposes of this
chapter as stated in
division (B) of section 150.01 of the Revised
Code,
minimize the
need for the authority to grant tax credits
under
section 150.07
of the
Revised
Code,
ensure compliance of the
program
administrators with
all applicable laws
of this state and
the
United
States,
and
ensure the safety and soundness of investments
of money from the program fund. (J) It prohibits the investment of money from the
program
fund directly in persons other than venture capital
funds, except
for temporary investment in investment grade debt securities or
temporary deposit in interest-bearing accounts or funds pending
permanent investment in venture capital funds. Sec. 150.04. (A)
The investment policy
established
or
modified under section 150.03 of the
Revised
Code
shall
specify
the terms and conditions under which the
authority
may grant tax
credits under section 150.07 of the Revised Code,
subject to
that
section and division
(B)
of this section, to
provide security
against
lenders' losses. (B) Nothing in this chapter
authorizes the providing of
security against losses
on any
bases other than the following: (1)
The application first of moneys
of the
Ohio
venture
capital fund, created under section 150.08 of the
Revised
Code,
that the authority, under the criteria in its investment policy,
determines may be expended without adversely
affecting the ability
of the authority to continue fulfilling the
purpose of this
chapter as stated in section 150.01 of the Revised
Code; and then (2)
The granting of tax credits pursuant to section 150.07 of
the Revised Code, but only
to the extent moneys under division
(B)(1) of
this section are insufficient. Sec. 150.05. (A)
The
authority shall
select, as program
administrators, not more than two private,
for-profit
investment
funds to
acquire loans for the program fund and to invest money in
the program fund as prescribed
in the investment
policy
established or modified by the authority
in accordance with
sections 150.03
and 150.04 of the Revised
Code. To be eligible
for selection, an investment fund must be incorporated or
organized
under
Chapter
1701.,
1705., 1775., 1782., or 1783. of
the Revised
Code, must have an established business presence in
this state, and must be capitalized in accordance with any state
and federal laws applicable to the issuance or sale of securities. The authority shall select program administrators only
after
soliciting and evaluating requests for proposals as
prescribed in
this section. The authority shall publish a notice
of a request
for proposals in newspapers of general circulation in
this state
once each week for two consecutive weeks before a date
specified
by the authority as the date on which it will begin
accepting
proposals. The notices shall contain a general
description of the
subject of the proposed agreement and the
location where the
request for proposals may be obtained. The
request for proposals
shall include all the following: (1) Instructions and information to respondents concerning
the submission of proposals, including the name and address of the
office where proposals are to be submitted; (2) Instructions regarding the manner in which respondents
may communicate with the authority, including the names, titles,
and telephone numbers of the individuals to whom such
communications shall be directed; (3) Description of the performance criteria that will be
used to evaluate whether a respondent selected by the authority is
satisfying the authority's investment policy; (4) Description of the factors and criteria to be considered
in evaluating respondents' proposals, the relative importance of
each factor or criterion, and description of the authority's
evaluation procedure; (5) Description of any documents that may be incorporated by
reference into the
request for proposals, provided that the
request specifies where
such documents may be obtained and such
documents are readily
available to all interested parties. After the date specified for receiving proposals, the
authority shall evaluate submitted proposals. The authority may
discuss a respondent's proposal with that respondent to clarify or
revise a
proposal or the terms of the agreement. The authority shall choose for review proposals from at least
three respondents the authority considers qualified to operate the
program in the best interests of the investment policy
adopted by
the authority. If three or fewer proposals are
submitted, the
authority shall review each proposal. The
authority may cancel a
request for proposals at any time before
entering into an
agreement with a respondent. The authority
shall
provide
respondents fair and equal opportunity for such
discussions. The
authority may terminate discussions with any
respondent upon
written notice to the respondent. (B) After reviewing the chosen proposals, the authority may
select not more than two such respondents and enter into a written
agreement with each of the selected respondents, provided that at
no time shall there be agreements with more than two persons. The
agreement shall do all of the following: (1)
Specify that borrowing and investing by the program
administrator will be budgeted to guarantee that no tax credits
will be granted during the first four years of the Ohio venture
capital program, and will be structured to ensure that payments of
principal, interest, or interest equivalent due in any fiscal
year, when added to such payments due from any other program
administrator, does not exceed twenty million dollars; (2) Require investment by the program
administrator or the
fund manager employed by the program
administrator to be in
compliance with
the investment policy
established or modified in
accordance with
sections 150.03 and 150.04 of the
Revised
Code
that is in effect
at the time the investment
is made,
and prohibit
the program administrator or fund manager from engaging in
any
investment activities other than activities
to
carry
out
that
policy; (3)
Require periodic
financial reporting by the
program
administrator to the authority, which
reporting shall
include an
annual audit by an independent
auditor and such other
financial
reporting as is specified in
the agreement or otherwise
required
by the authority for the
purpose of ensuring that the
program
administrator
is carrying out the
investment
policy; (4)
Specify any like
standards or general
limitations in
addition to or
in furtherance of investment standards or
limitations that apply pursuant to
division
(H)
of section 150.03
of the
Revised
Code; (5)
Require the program administrator to apply program fund
revenue first to the payment of principal borrowed by the program
administrator for investment under the program, then to interest
related to that principal, and then to amounts necessary to cover
the program administrator's pro rata share required under division
(B) (9) of this section; and require the program administrator to
pay the authority not less than ninety per cent of the amount by
which program fund revenue attributable to investments under the
program administrator's investment authority exceeds amounts so
applied; (6)
Specify the
procedures by which the program
administrator
shall certify
immediately to the authority the
necessity for
the
authority to issue tax
credit certificates
pursuant to contracts
entered into under section 150.07
of the
Revised
Code; (7)
Specify any general
limitations regarding the
employment
of a fund manager by the
program administrator, in
addition to
an
express limitation that the fund
manager be a
person with
demonstrated, substantial, successful
experience in
the design and
management of seed
and venture
capital investment
programs and in
capital
formation. The fund manager may be, but
need not be, an
equity owner or affiliate of the program
administrator. (8)
Specify the terms and
conditions under which
the
authority or the program administrator may
terminate the
agreement, including in the circumstance that the program
administrator or fund manager violates the investment
policy; (9)
Require the program administrator or fund manager
employed by the program administrator to provide
capital
in the
form of a loan equal to one per cent of the
amount of
outstanding
loans by lenders to the program fund. The loan from the program
administrator or fund manager shall be on the same terms and
conditions as loans from other lenders, except that the loan from
the program administrator or fund manager shall not be secured by
the Ohio venture capital fund or tax credits available to other
lenders under division (B) of section 150.04 of the Revised Code.
Such
capital shall be placed at the same risk as the
proceeds from
such
loans. The program administrator shall receive
a pro rata
share
of the net income, including net loss, from the
investment
of
money from the program fund, but is not
entitled to the
security
against losses provided under section
150.04 of the
Revised Code. Sec. 150.06.
(A) The authority is
not
an agency as defined
in section 101.82 of the Revised Code for
purposes of
divisions
(A) and (B) of section 101.83 of the Revised
Code. (B)
The
selection of a program administrator and the
entering
into
an agreement under section 150.05 of the
Revised
Code
do
not constitute a purchase of services under
Chapter 125.
of
the
Revised
Code. (C) Notwithstanding
section 121.22 of the
Revised
Code,
the
authority may hold an executive session for either of the
following purposes, but only after a majority of a quorum of the
authority determines, by a roll call vote, to hold the session,
and
only at a regular or special meeting:
(1)
Presenting, reviewing, or
discussing proprietary
information relating to any person unless that person has
consented in writing to disclosure of such information by the
authority; (2)
Preparing for, conducting, or
reviewing negotiating
sessions with any private, for-profit investment fund for the
purpose of selecting a
program administrator and entering into
an
agreement under section 150.05
of the
Revised
Code. Sec. 150.07.
(A) For the purpose stated in section 150.01
of the Revised Code, the authority may authorize a lender to claim
one of
the tax credits allowed under section
5725.19, 5729.08,
5733.49,
or 5747.80 of the Revised Code. The
credits shall be
authorized by a written contract with the lender.
The contract
shall specify the terms under which the lender may
claim the
credit, including the amount of loss, if any, the lender
must
incur before the lender may claim the credit; specify that
the
credit
shall not exceed
the amount of the loss; and specify
that
the lender may claim the
credit only for a loss certified by
a
program
administrator to the
authority under the procedures
prescribed
under division (B)(6) of
section 150.05 of the Revised
Code. (B) Tax credits may be authorized at any time after the
authority establishes the investment policy under section 150.03
of the Revised Code, but a tax credit so authorized may not be
claimed until the beginning of the fifth year after the authority
establishes the investment policy. A tax credit may not be
claimed after June 30, 2026.
(C) Upon receiving certification of a lender's loss from
a
program administrator pursuant to the procedures in the
investment
policy, the authority shall issue a tax credit
certificate to the
lender, except as otherwise provided in
division (D) of this
section. The authority shall not issue a certificate until the
lender, in the manner prescribed by the authority, elects to
receive a refundable or nonrefundable tax credit. The election,
once made, is irrevocable. The certificate shall state
the
amount
of the credit, whether the credit is refundable or nonrefundable,
and
the calendar year,
under
section 5725.19
or 5729.08, the tax
year,
under
section
5733.49,
or the taxable
year under
section
5747.80
of the Revised
Code, for
which the
credit may be
claimed.
The
authority, in
conjunction
with the tax
commissioner,
shall
develop
a system for
issuing tax credit
certificates
for the
purpose of
verifying
that any
credit claimed
is
a credit
issued
under this
section and
is
properly taken in
the
year specified in
the
certificate and in
compliance with
division
(B)
of
this
section. (D) The authority shall not, in any fiscal year, issue tax
credit certificates in a total amount exceeding twenty million
dollars. Sec. 150.08. (A)
There
is hereby created in the state
treasury the
Ohio
venture capital fund, to which shall be credited
all payments
received by the
authority pursuant
to division
(B)(5) of
section 150.05 of the
Revised
Code
and all interest
earned on
moneys of the fund. (B)
Except as provided in division (C) of this section, money
in the
Ohio
venture capital fund shall be used
exclusively to
provide security against losses as authorized under
this chapter. (C) If the amount in the venture capital fund exceeds the
amount reasonably necessary to provide security against such
losses, the excess may be used, upon appropriation by the general
assembly, to provide scholarships or other financial assistance to
students enrolled in a course of study in the fields of physical
or natural sciences, mathematics, or engineering at an institution
of higher education in this state. Sec. 150.09.
The
state, the governor, or a member
of the
authority is not liable in damages to any person in a
civil
action
for
any loss incurred as a result
of any investment
made
by
a
program administrator or fund manager employed by the program
administrator. Sec. 150.10. (A)
On
the first day of January
of the second
year after the date of entering into an agreement
under section
150.05 of the
Revised
Code
and of each ensuing year, the
authority
shall file with the clerk
of the house
of
representatives, the
clerk of the senate, and
the chairpersons
of
the house and senate
standing committees
predominantly
concerned
with economic
development a written
report on the
Ohio
venture
capital program.
The report shall include all the following: (1)
A
description of the details of the
investment policy
established or modified in accordance with
sections 150.03
and
150.04 of the Revised Code; (2)
The
authority's assessment of the program's achievement
of its
purpose stated in section 150.01 of the Revised Code; (3)
The
value of tax credit certificates issued by the
authority
under
section 150.07 of the Revised Code in each fiscal
year ending on or before the preceding thirtieth day of June; (4) The
amount of tax credits claimed pursuant to section
5725.19, 5729.08, 5733.49, or 5747.80 of the Revised Code, as to
the respective taxes
involved; (5) The
financial status of the
Ohio
venture capital fund; (6) The names of venture capital funds in which money from
the program fund has been invested and the
locations of their
principal offices, and the names of
the enterprises in which each
of those venture capital
funds has invested such money and the
locations of those
enterprises' principal offices; (7) Any
recommendations for modifying the program to better
achieve the
purpose stated in section 150.01 of the
Revised
Code. (B) During each year that a report is issued under division
(A) of this section, the chairperson of the authority, or
another
member of the authority designated
by the
chairperson
as the
authority's representative, shall
be
required to appear in
person
before the standing committees of the
house and
senate
predominantly concerned
with economic development
to give
testimony concerning the status of the
Ohio venture
capital
program.
Sec. 718.01. (A) As used in this chapter: (1)
"Internal Revenue Code" means the Internal Revenue Code
of
1986, 100
Stat. 2085, 26 U.S.C. 1, as amended. (2)
"Schedule C" means internal revenue service schedule C
filed by a
taxpayer pursuant to the Internal Revenue Code. (3)
"Form 2106" means internal revenue service form 2106
filed by a taxpayer
pursuant to the Internal Revenue Code. (4)
"Intangible income" means income of any of the following
types: income
yield, interest, dividends, or other income arising
from the ownership, sale,
exchange, or other disposition of
intangible property including, but not
limited to, investments,
deposits, money, or credits as those terms are
defined in Chapter
5701. of the Revised Code. (5) "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. (B) No municipal corporation with respect to that income
that it may tax
shall tax such income at other than a uniform
rate. (C) No municipal corporation shall levy a tax on income at a
rate in excess
of one per cent without having obtained the
approval of the excess by a
majority of the electors of the
municipality voting on the question at a
general, primary, or
special election. The legislative authority of the
municipal
corporation shall file with the board of elections at least
seventy-five days before the day of the election a copy of the
ordinance
together with a resolution specifying the date the
election is to be held and
directing the board of elections to
conduct the election. The ballot shall be
in the following form:
"Shall the Ordinance providing for a ... per cent levy
on income
for (Brief description of the purpose of the proposed levy) be
passed? FOR THE INCOME TAX AGAINST THE INCOME TAX" In the event of an affirmative vote, the proceeds of the
levy
may be used only for the specified purpose. (D)(1) Except as otherwise provided in division (D)(2)
or
(F)(9) of
this section, no
municipal corporation shall exempt from
a tax on
income, compensation for
personal services of individuals
over
eighteen years of age or the net profit
from a business or
profession. (2) The legislative authority of a municipal corporation
may, by ordinance or
resolution, exempt from a tax on income any
compensation arising from the
grant, sale, exchange, or other
disposition of a stock option; the exercise of
a stock option; or
the sale, exchange, or other disposition of stock purchased
under
a stock option. (E) Nothing in this section shall prevent a municipal
corporation from
permitting lawful deductions as prescribed by
ordinance. If a taxpayer's
taxable income includes income against
which the taxpayer has taken a
deduction for federal income tax
purposes as reportable on the taxpayer's form
2106, and against
which a like deduction has not been allowed by the municipal
corporation, the municipal corporation shall deduct from the
taxpayer's
taxable income an amount equal to the deduction shown
on such form allowable
against such income, to the extent not
otherwise so allowed as a deduction by
the municipal corporation.
In the case of a taxpayer who has a net profit
from a business or
profession that is operated as a sole proprietorship, no
municipal
corporation may tax or use as the base for determining the amount
of
the net profit that shall be considered as having a taxable
situs in the
municipal corporation, a greater amount than the net
profit reported by the
taxpayer on schedule C filed in reference
to the year in question as taxable
income from such sole
proprietorship, except as otherwise specifically
provided by
ordinance or regulation. (F) A municipal corporation shall not tax any of the
following: (1) The military pay or allowances of members of the armed
forces of the
United States and of members of their reserve
components, including the Ohio
national guard; (2) The income of religious, fraternal, charitable,
scientific, literary, or
educational institutions to the extent
that such income is derived from
tax-exempt real estate,
tax-exempt tangible or intangible property, or
tax-exempt
activities; (3) Except as otherwise provided in division (G) of this
section, intangible
income; (4) Compensation paid under section 3501.28 or 3501.36 of
the Revised Code to
a person serving as a precinct election
official, to the extent that such
compensation does not exceed one
thousand dollars annually. Such compensation
in excess of one
thousand dollars may be subjected to taxation by a municipal
corporation. A municipal corporation shall not require the payer
of such
compensation to withhold any tax from that compensation. (5) Compensation paid to an employee of a transit authority,
regional transit
authority, or regional transit commission created
under Chapter 306. of the
Revised Code for operating a transit bus
or other motor vehicle for the
authority or commission in or
through the municipal corporation, unless the
bus or vehicle is
operated on a regularly scheduled route, the operator is
subject
to such a tax by reason of residence or domicile in the municipal
corporation, or the headquarters of the authority or commission is
located
within the municipal corporation; (6) The income of a public utility when that public utility
is
subject to the tax levied under section 5727.24 or 5727.30 of
the Revised
Code, except starting January 1, 2002, the income of
an
electric company or combined company, as defined in section
5727.01 of the
Revised Code, may
be taxed by a municipal
corporation, subject to
Chapter 5745. of the
Revised Code. (7) On and after January 1, 2003, items excluded from
federal gross income pursuant to section 107 of the Internal
Revenue Code; (8) On and after January 1, 2001, compensation paid to a
nonresident
individual to the extent prohibited under
section
718.011 of the Revised Code; (9) Except as provided in division (H) of this section, an S
corporation
shareholder's distributive share of net
profits of the
S
corporation, other than any part of the
distributive share of
net
profits that represents
wages as defined in section 3121(a) of
the Internal Revenue Code or net earnings from self-employment as
defined in section 1402(a) of the Internal Revenue Code, to the
extent such distributive share would not be allocated or
apportioned to this state under division (B)(1) and (2) of section
5733.05 of the Revised Code if the S corporation were a
corporation subject to the taxes imposed under Chapter 5733. of
the Revised Code. (G) Any municipal corporation that taxes any type of
intangible income on
March 29, 1988, pursuant to Section 3 of
Amended Substitute Senate Bill No.
238 of the 116th general
assembly, may continue to tax that type of income
after 1988 if a
majority of the electors of the municipal corporation voting
on
the question of whether to permit the taxation of that type of
intangible
income after 1988 vote in favor thereof at an election
held on November 8,
1988. (H)
Any municipal corporation that, on December 6, 2002,
taxes an S corporation shareholder's distributive share of net
profits of the S corporation to any greater extent than that
permitted under division (F)(9) of this section may continue after
2002 to tax such distributive shares to such greater extent only
if a majority of the electors of the municipal corporation voting
on the question of such continuation vote in favor thereof at an
election held on November 4, 2003. If a majority of electors vote
in favor of that question, then, for purposes of section 718.14 of
the Revised Code, "pass-through entity" includes S corporations,
"income from a pass-through entity" includes distributive shares
from an S corporation, and "owner" includes a shareholder of an S
corporation, notwithstanding that section to the contrary. (I) Nothing in this section or section 718.02 of the Revised
Code
shall authorize the levy of any tax on income that a
municipal
corporation is not
authorized to levy under existing
laws or shall require a municipal
corporation to allow a deduction
from taxable income for losses incurred from
a sole proprietorship
or partnership.
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)(2)
"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, excluding an S
corporation.
(4)(3)
"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
income from other pass-through entities.
(5)(4)
"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)(5)
"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
imposing a tax that applies to income from a pass-through
entity
shall grant a
credit to 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; (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. (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)(2) of this
section.
Sec. 5703.21. (A) Except as provided in divisions (B) and
(C) of this section, no agent
of the department of taxation,
except in the agent's report to the department or when called on
to
testify in any court or proceeding, shall divulge any
information
acquired by the agent as to the transactions,
property, or business
of any person while acting or claiming to
act under orders of the
department. Whoever violates this
provision shall thereafter be
disqualified from acting as an
officer or employee or in any
other capacity under appointment or
employment of the department. (B)(1) For purposes of an audit pursuant to section 117.15
of the Revised Code, or an audit of the department pursuant to
Chapter 117. of the Revised Code, or an audit, pursuant to that
chapter, the objective of which is to express an opinion on a
financial report or statement prepared or issued pursuant to
division (A)(7) or (9) of section
126.21 of
the Revised Code, the
officers and employees of the auditor of state charged with
conducting the audit shall have access to and the right to
examine
any state tax returns and state tax return information in
the
possession of the department to the extent that the
access
and
examination are necessary for purposes of the audit. Any
information acquired as the result of that access and
examination
shall not be divulged for any purpose other than as required for
the audit or unless the officers and employees are required
to
testify in a court or proceeding under compulsion of legal
process. Whoever violates this provision shall thereafter be
disqualified from acting as an officer or employee or in any
other
capacity under appointment or employment of the auditor of
state. (2) As provided by section 6103(d)(2) of the Internal
Revenue Code, any federal tax returns or federal tax information
that the department has acquired from the internal revenue
service, through federal and state statutory authority, may be
disclosed to the auditor of state solely for purposes of an audit
of the department. (C) Division (A) of this section does not prohibit
any of
the following: (1) Divulging information contained in applications,
complaints, and
related documents filed with the department under
section 5715.27
of the Revised Code or in applications filed with
the department
under section 5715.39 of the Revised Code; (2) Providing
information to the office of child support
within the department of job and family services pursuant to
section 3125.43 of the Revised
Code; (3) Disclosing to the board of
motor vehicle collision
repair registration any information
in the possession of the
department that is necessary for the
board to
verify the existence
of an applicant's valid vendor's license and
current state tax
identification number under section 4775.07 of the
Revised Code; (4) Providing information to the administrator
of workers'
compensation pursuant
to section 4123.591 of the Revised Code; (5) Providing to the attorney general
information the
department obtains
under division (J) of section 1346.01 of the
Revised Code; (6) Permitting properly authorized officers, employees, or
agents of a
municipal corporation from inspecting reports or
information pursuant to
rules adopted under section 5745.16 of the
Revised Code; (7) Providing information regarding the name, account
number, or business
address of a holder of a vendor's
license
issued pursuant to section 5739.17 of the Revised Code, a holder
of a
direct payment permit issued pursuant to section 5739.031 of
the
Revised Code, or a seller having a use tax account maintained
pursuant to
section 5741.17 of the Revised Code, or information
regarding the active or inactive status of a vendor's license,
direct payment permit, or seller's use tax account; (8) Releasing invoices or invoice information furnished under
section 4301.433 of
the Revised Code pursuant to
that section;
(9) Providing to a county auditor notices or documents
concerning or affecting the taxable value of property in the
county auditor's county. Unless authorized by law to disclose
documents so provided, the county auditor shall not disclose such
documents.
Sec. 5709.211. As used in this section: (A) "Facility" means
an air pollution control facility, noise pollution control
facility, energy conversion facility, thermal efficiency
improvement facility, or solid waste energy conversion facility as
defined in section 5709.20 or 5709.45 of the Revised Code.
(B) "Tax exemption certificate" means a certificate issued
under section 5709.21 or 5709.46 of the Revised Code.
As soon as is practicable after receiving an
application for
a tax exemption certificate, the
tax commissioner shall provide a
copy of the application and of any accompanying documentation to
the county auditor of the county in which the facility is located.
The copy shall be accompanied by a statement showing an estimate
of what the assessed value of the facility would be, based on the
appropriate assessment percentage, if the facility were to be
taxable, and an estimate of the taxes that would be chargeable
against the facility computed on the basis of the rate of taxation
in the taxing district in the year in which the application is
received. Within sixty days
after receiving such a statement, the
county auditor shall issue a
notice to the taxing authority of
each taxing unit in which the
facility is or is to be located.
The
notice shall state that an
application for a tax exemption
certificate has
been filed for the facility; the
estimated
assessed value of the facility shown on the statement;
the annual
amount of taxes that would be charged and payable on
that value at
the current rate of taxation in effect in the taxing
unit; and
that, if approved, the application entitles the facility
to
exemption from taxation and the taxing unit may be required to
refund any taxes on the facility accruing after the certificate
becomes effective. The tax commissioner shall issue an amended
statement if, after the original statement is issued, the estimate
of such assessed value increases or decreases by more than ten per
cent of the
estimated value shown on the most recently issued
statement or
amended statement, and the county auditor shall issue
an amended
notice reflecting such change.
The tax commissioner's statement and the county auditor's
notice are issued exclusively for the purpose of notifying taxing
authorities of the potential for a refund of taxes paid on a
facility before a tax exemption
certificate is issued. The
statement and notice are not
appealable by any person and do not
constitute an assessment that
is subject to a petition for
reassessment by the taxpayer. The
notice issued by the county
auditor does not constitute a notice
required by law to be given
for the purpose of section 5717.02 of
the Revised Code.
Sec. 5725.19. Upon the issuance of a tax credit certificate
by the Ohio
venture
capital authority under section 150.07 of the
Revised Code, a credit
may be
claimed against the
tax imposed on
a domestic insurance
company
under section 5725.18
of the Revised
Code. The credit
shall be
claimed in the calendar
year specified
in the certificate
issued
by the authority. If the company
elected a refundable credit under section 150.07 of the Revised
Code, and the amount of the credit shown on the certificate
exceeds the tax otherwise due under section 5725.18 of the Revised
Code, the company may receive a refund equal to seventy-five per
cent of such excess. If the company elected a nonrefundable
credit, the amount of the credit shown on the certificate shall
not exceed the aount of tax otherwise due.
Sec. 5729.08. Upon the issuance of a tax credit certificate
by the Ohio
venture
capital authority under section 150.07 of the
Revised Code, a credit
may be
claimed against the
tax imposed on
a foreign insurance
company
under section 5729.03
of the Revised
Code. The credit
shall be
claimed in the calendar
year specified
in the certificate
issued
by the authority. If the company elected
a refundable credit under section 150.07 of the Revised Code, and
the amount of the credit shown on the certificate exceeds the tax
otherwise due under section 5729.03 of the Revised Code, the
company may receive a refund equal to seventy-five per cent of
such excess. If the company elected a nonrefundable credit, the
amount of the credit shown on the certificate shall not exceed the
amount of tax otherwise due.
Sec. 5733.49. Upon the issuance of a tax credit certificate
by the Ohio
venture capital authority under section 150.07
of the
Revised Code, a credit
may be claimed against the
tax imposed by
section 5733.06 of the
Revised Code. The credit
shall be claimed
for the tax year
specified in the certificate
issued by the
authority and in the
order required under section
5733.98 of the
Revised Code. If the taxpayer elected a refundable credit under
section 150.07 of the Revised Code, and the amount of the credit
shown on the certificate exceeds the tax otherwise due under
sections 5733.06, 5733.065, and 5733.066 of the Revised Code after
all credits, including the credit allowed under this section, are
deducted in that order, the taxpayer shall receive a refund equal
to seventy-five per cent of that excess. If the taxpayer elected
a nonrefundable credit, the amount of the credit, claimed in that
order, shall not exceed the tax otherwise due under those sections
after all the taxpayer's credits are deducted in that order.
Sec. 5733.98. (A) To provide a uniform procedure for
calculating the amount of tax imposed by section 5733.06 of the
Revised Code
that is due under this chapter, a taxpayer
shall
claim any credits to which it is entitled in the following order,
except as otherwise provided in section 5733.058 of the Revised
Code: (1) The credit for taxes paid by a qualifying pass-through
entity allowed
under section 5733.0611 of the Revised Code; (2) The credit allowed for financial institutions under
section 5733.45 of the Revised Code;
(3) The credit for qualifying affiliated groups under
section
5733.068 of the Revised Code; (4) The subsidiary corporation credit under section
5733.067
of the Revised Code; (5) The savings and loan assessment credit under section
5733.063 of the Revised Code; (6) The credit for recycling and litter prevention
donations
under section
5733.064 of the Revised Code; (7) The credit for employers that enter into
agreements with
child day-care centers under section 5733.36 of the
Revised Code; (8) The credit for employers that reimburse employee child
day-care
expenses under section 5733.38 of the Revised
Code; (9) The credit for maintaining railroad active grade
crossing
warning
devices under section 5733.43 of the Revised
Code; (10) The credit for purchases of lights and reflectors under
section
5733.44 of the Revised Code; (11) The job retention credit under division (B) of section
5733.0610 of the Revised Code; (12) The credit for
manufacturing investments under section
5733.061
losses on loans made under the Ohio venture capital
program under sections 150.01 to 150.10 of th Revised Code if the
taxpayer elected a nonrefundable credit under section 150.07 of
the Revised Code; (13) The credit for purchases of new manufacturing
machinery
and equipment under section 5733.31 or section 5733.311
of the
Revised Code; (14) The second credit for purchases of new
manufacturing
machinery and equipment under
section 5733.33 of the
Revised Code; (15) The job training credit under section 5733.42 of
the
Revised
Code; (16) The credit for qualified research expenses under
section 5733.351 of
the Revised Code; (17) The enterprise zone credit under section 5709.66 of
the
Revised Code; (18) The credit for the eligible costs associated with a
voluntary action under section 5733.34
of the Revised Code; (19) The credit for employers that establish on-site
child
day-care under section 5733.37 of the Revised
Code; (20)
The ethanol plant investment credit under section
5733.46 of the Revised Code; (21) The credit for purchases of qualifying grape
production
property under section 5733.32 of the Revised Code; (22) The export sales credit under section 5733.069 of
the
Revised Code; (23) The credit for research and development and
technology
transfer investors under section 5733.35 of the Revised
Code; (24) The enterprise zone credits under section 5709.65
of
the
Revised Code; (25) The credit for using Ohio coal under section
5733.39
of
the
Revised Code; (26)
The refundable jobs creation credit under
division
(A)
of section
5733.0610 of the Revised Code; (27) The refundable credit for tax withheld under
division
(B)(2) of section 5747.062 of the Revised Code; (28) The credit for losses on loans made to the Ohio venture
capital program under sections 150.01 to 150.10 of the Revised
Code if the taxpayer elected a refundable credit under section
150.07 of the Revised Code. (B) For any credit except the
refundable
credits enumerated
in divisions (A)(26), (27), and (28) of this section, the amount
of the
credit for a tax 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.
Sec. 5747.80. Upon the issuance of a tax credit certificate
by the
Ohio venture
capital authority under section 150.07 of the
Revised
Code, a credit may be
claimed against the
tax imposed by
section 5747.02 of
the Revised
Code. The credit
shall be claimed
for the taxable year
specified
in the certificate
issued by the
authority and in the
order
required under section
5747.98 of the
Revised Code. If the taxpayer elected a refundable credit under
section 150.07 of the Revised Code, and the amount of the credit
shown on the certificate exceeds the tax otherwise due under
section 5747.02 of the Revised Code after all credits, including
the credit allowed under this section, are deducted in that order,
the taxpayer shall receive a refund equal to seventy-five per cent
of that excess. If the taxpayer elected a nonrefundable credit,
the amount of the credit, claimed in that order, shall not exceed
the tax otherwise due after all the taxpayer's credits are
deducted in that order.
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 job retention credit under division (B) of section
5747.058 of the Revised Code; (19) The credit for
manufacturing investments under
section
5747.051 losses on loans made under the Ohio venture capital
program under sections 150.01 to 150.10 of the Revised Code if the
taxpayer elected a nonrefundable credit under section 150.07 of
the Revised Code; (20) The credit for purchases of new manufacturing
machinery
and equipment
under section 5747.26 or section 5747.261
of the
Revised Code; (21) 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; (22) The job training credit under section 5747.39 of
the
Revised Code;
(23) The enterprise zone credit under section 5709.66 of
the
Revised Code; (24) The credit for the eligible costs associated with a
voluntary action
under section 5747.32 of the Revised Code; (25) The credit
for employers that establish on-site
child
day-care centers under section
5747.35 of the Revised Code; (26)
The ethanol plant investment credit under section
5747.75 of the Revised Code; (27) The credit for purchases of qualifying grape
production
property under section 5747.28 of the Revised Code; (28) The export sales credit under section 5747.057 of
the
Revised Code; (29) The credit for research and development and
technology
transfer investors under section 5747.33 of the Revised
Code; (30)
The enterprise zone credits under
section 5709.65
of
the
Revised Code; (31) The refundable jobs creation credit
under
division
(A)
of section
5747.058 of the Revised Code; (32) The refundable credit for taxes paid by a
qualifying
entity granted under section 5747.059 of the Revised
Code; (33) The refundable credits for taxes paid by a
qualifying
pass-through
entity granted under division (J) of
section 5747.08
of the Revised Code; (34) The refundable credit for tax withheld under
division
(B)(1) of section 5747.062 of the Revised Code; (35) The credit for losses on loans made to the Ohio venture
capital program under sections 150.01 to 150.10 of the Revised
Code if the taxpayer elected a refundable credit under section
150.07 of the Revised Code. (B) For any credit, except the
refundable credits enumerated
in
divisions (A)(31) to (35) 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.
Sec. 6111.31. Appliances, equipment, machinery, and
structures comprising all or a part of an industrial water
pollution control facility as defined in section 6111.01 of the
Revised Code, and installed pursuant to the approval of the
environmental protection agency or any other governmental agency
having authority to approve the installation of industrial or
other water pollution abatement or control facilities, and which
is initially placed in operation, or is initially capable of
operation on or after December 31, 1965, shall be excepted from
personal property taxes, franchise taxes and sales and use taxes,
as provided in this section. Application for an industrial water
pollution control certificate shall be filed with the director of
environmental protection in such manner and in such form as may
be
prescribed by regulations adopted and promulgated by the
director
and shall contain plans and specifications of the
structure or
structures, including all materials to be
incorporated therein,
and a descriptive list of all appliances,
equipment, and machinery
to be used as an industrial water
pollution control facility.
Within thirty days after receiving such an application, the
director shall forward a copy of the application to the tax
commissioner. The director shall promptly
determine whether such
application should be allowed or
disallowed, in whole or in part,
and shall give notice of such
determination by mail to the
applicant, the tax commissioner, and
the auditor of the county or
counties in which the structure or
items described in the
application will be located. Within fifteen days after the date of the mailing of such
notice the applicant, the tax commissioner, or such county
auditor
may apply in writing for a reconsideration of the
director's
determination and request the director to hold a
hearing on such
application. Upon receipt of such application
for reconsideration
and request for hearing, the director shall
set a date for such
hearing and send notice thereof by mail to
all persons notified of
the filing of such application. Such
hearing shall be held not
less than fifteen nor more than thirty
days from the date of the
mailing of the notice thereof. If no application for reconsideration and request for
hearing
is filed within such period of fifteen days, the
director's
determination shall be final. If such application and
request is
filed, the director, after such hearing, shall finally
determine
whether the application for an industrial water
pollution control
certificate should be allowed or disallowed, in
whole or in part,
and shall send notice thereof by mail to all
persons notified of
the application for reconsideration. If any determination of the director which has become final
contains a finding that any of the structures or items enumerated
in the application for a certificate will be an industrial water
pollution control facility, the director shall issue an
industrial
water pollution control certificate to that effect. The effective date of such certificate shall be the date
when
the item or items described therein are acquired or when
title to
or possession of such item or items is first transferred
to the
applicant or when construction of any structure or
structures
enumerated therein begins, whichever is earlier,
provided such
application shall not relate to facilities placed
in operation or
capable of operation prior to December 31, 1965,
and shall remain
in force and effect until revoked or modified as
provided by
section 6111.32 or 6111.33 of the Revised Code. Upon the issuance of a certificate the director shall send,
by certified mail, such certificate to the applicant and a
certified copy thereof to the tax commissioner and to the county
auditor of the county or counties in which any property to which
the certificate relates is located. The county auditor shall
file
such certified copy of the certificate of record in
his
the
auditor's office.
Sec. 6111.311. As soon as is practicable after receiving a
copy of an
application for an industrial water pollution control
certificate from the director of environmental protection under
section 6111.31 of the Revised Code, the
tax commissioner shall
provide a copy of the application and of any accompanying
documentation to the county auditor of the county in which the
facility is located. The copy shall be accompanied by a statement
showing an estimate of what the assessed value of the facility
would be, based on the appropriate assessment percentage, if the
facility were to be taxable, and an estimate of the taxes that
would be chargeable against the facility computed on the basis of
the rate of taxation in the taxing district in the year in which
the application is received. The tax commissioner is not
required
to provide the copy or statement if, before doing so,
the tax
commissioner receives notice of the director's
determination
allowing or disallowing the application. Within
sixty days
after
receiving such a statement, the county auditor
shall issue a
notice to the taxing authority of each taxing unit
in which the
facility is or is to be located, unless the county
auditor has,
within that period, received notice of the director's
determination allowing or
disallowing the application. The notice
shall state that an
application for an industrial water pollution
control facility has
been filed for the facility; the
estimated
assessed value of the
facility shown on the statement;
the annual
amount of taxes that
would be charged and payable on
that value at
the current rate of
taxation in effect in the taxing
unit; and
that, if approved, the
application entitles the facility
to
exemption from taxation and
the taxing unit may be required to
refund any taxes on the
facility accruing after the certificate
becomes effective.
The
tax commissioner shall issue an amended
statement if, after
the
original statement is issued, the estimate
of such assessed
value
increases or decreases by more than ten per
cent of the
estimated
value shown on the most recently issued
statement or
amended
statement, and the county auditor shall issue
an amended
notice
reflecting such change.
The tax commissioner's statement and the county auditor's
notice are issued exclusively for the purpose of notifying taxing
authorities of the potential for a refund of taxes paid on an
industrial water pollution control facility before a pollution
control
certificate is issued. The statement and notice are not
appealable by any person and do not constitute an assessment that
is subject to a petition for reassessment by the taxpayer. The
notice issued by the county auditor does not constitute a notice
required by law to be given for the purpose of section 5717.02 of
the Revised Code.
SECTION 2. That existing sections 122.171, 149.43, 718.01,
718.14,
5703.21, 5733.98,
5747.98, and 6111.31 of the
Revised Code
are
hereby repealed.
SECTION 3. The enactment by this act of sections 5709.211 and
6111.311 of the Revised Code applies to applications for air and
noise pollution control certificates and to applications for
industrial water pollution control certificates filed on or after
the effective date of this act. The enactment of those sections also applies to such
applications filed before the effective date of this act if such a
certificate has not been issued before January 1, 2004. With
respect to such applications, the Tax Commissioner shall issue the
statements required by those sections as soon as is practicable
after that effective date, and county auditors shall issue the
notices required by those sections within sixty days after such a
statement is received by the county auditor.
SECTION 4. (A) As used in this section, "qualifying
taxpayer" means a person satisfying all of the following: (1) The person disputes the valuation or assessment of one
or more parcels of real property classified according to use as
commercial real property; (2) The person filed an original complaint against the
valuation or
assessment of such property under section 5715.13 or
5715.19 of
the Revised Code that was dismissed by a county board
of revision,
the Board of Tax Appeals, or a court for lack of
jurisdictional validity upon
finding the filing of the complaint
was the unauthorized practice
of law; (3) The person has not paid in full the taxes, assessments,
or charges due on the valuation or assessment of such property for
the tax years to which those complaints relate. (B) A qualifying taxpayer or a
qualifying taxpayer's
attorney may file, with the Board of Tax Appeals, a
complaint with
respect to property described
in division (A) of
this section and
with respect to any tax years
to which the
original complaints
related and occurring within one
sexennial
reappraisal period
within the ten years preceding the
effective
date of this section.
The complaint shall be filed on or with any forms, prescribed by
the Tax Commissioner under section 5715.30 of the Revised Code or
otherwise, for the filing of a complaint under section 5715.13 or
5715.19 of the Revised Code, and such a form shall constitute a
proper form for filing a complaint with the Board of Tax Appeals
under this section if the filing otherwise complies with this
section. At the same time as the complaint is filed, the
qualifying taxpayer shall file a notice of the complaint with the
county board of revision with which the original complaint was
filed. The complaint and the notice of complaint shall be filed
not
later than
six months after the effective date of this
section.
The board of revision, upon receiving notice of the
complaint, shall notify, by certified mail, any person that was a
party to any proceeding on the original complaint conducted by the
board of revision, and file proof of such notice with the Board of
Tax Appeals. Notwithstanding sections 5703.02, 5715.13, 5715.19,
and 5717.01 of the Revised Code, the Board of Tax Appeals is
hereby vested with original jurisdiction to hear and determine
such complaints.
Upon the
proper and timely filing of a complaint under this
section, the
Board of Tax Appeals shall proceed as otherwise
prescribed in section 5717.01 of the Revised Code to hear the
complaint on the basis of the evidence offered to the Board of Tax
Appeals, or to cause its examiners to hear the complaint on such
evidence and report their findings to the Board. The Board of Tax
Appeals shall certify
its action to the
county auditor.
Notwithstanding section 5715.22
of the Revised
Code, if the Board
of Tax Appeals finds that the
amount of taxes,
assessments, and
charges paid for the tax years
to which the
complaint relates
exceeds the amount due for those
years, the
county auditor shall
not draw a warrant for the refund
of the
overpayment or any
portion thereof, and shall not credit
the
overpayment or any
portion thereof against the amount of any
taxes, assessments, or
charges that may be due in the future from
the qualifying
taxpayer. The county auditor shall adjust the
amount of taxes,
assessments, and charges shown to be due on the
current tax list
from the years to which the complaint relates in
accordance with
the Board's finding, and shall certify such
adjustment to the
county treasurer, who shall adjust the tax
duplicate accordingly.
The finding of the Board of Tax Appeals under this section may be
appealed by the parties and in the manner prescribed under section
5717.04 of the Revised Code for the institution of appeals from
decisions of the Board of Tax Appeals determining appeals from
decisions of county boards of revision. (C) It is the intent of the
General Assembly to exercise its
authority under Ohio
Constitution, Article II, Section 28, to pass
a general law
authorizing courts to carry into effect, upon such
terms as are
just and equitable, the manifest intention of
parties, and
officers, by curing omissions, defects, and errors in
instruments
and proceedings arising out of their want of
conformity with the
laws of this state. This section is remedial
legislation and does not affect pending or past complaints where
jurisdiction over a complainant absolutely vested with a county
board of revision. It is the intent of the General
Assembly that
if a board of revision never had jurisdiction over a complainant
because the complainant's previous complaint failed to vest
jurisdictional validity because of an unauthorized practice of law
violation, then no rights have vested with respect to the
determination of the total valuation or assessment of a commercial
parcel owned by the complainant, and, as such, there is not a
reasonable expectation of finality with regard to said
determination. Further, it is the intent of the General Assembly
that this section merely modifies the existing right of a property
owner, granted under sections 5715.13 and 5715.19 of the Revised
Code, to file a complaint against a determination of the total
valuation or assessment of a commercial parcel owned by the
complainant, by expanding the statute of limitations under which a
complaint can be filed.
SECTION 5. Section 4 of this act is hereby repealed on the
first day of the seventh month beginning after the effective date
of this section.
SECTION 6. Instead of the $8,459,014 amount applying to
Youngstown State University in Section 19.47, Debt Service Formula
Allocation, of H.B. 675 of the 124th General Assembly, $6,959,014
applies to Youngstown State University for purposes of that
section, notwithstanding the order in which H.B. 675 and this act
are enacted.
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