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(125th General Assembly)
(Substitute House Bill Number 127)
AN ACT
To amend sections 321.45, 323.152, 323.25, 718.01, 4503.065, 5705.19, 5709.61, 5709.62, 5709.63, 5709.631, 5709.633, 5709.85, 5709.883, 5721.25, 5722.01, 5722.02, 5733.05, 5733.33, 5735.01, 5747.01, and 5747.03 and to enact sections 5722.21 and 5747.013 of the Revised Code and to amend Sections 3.18 and 89.07 of Am. Sub. H.B. 95 of the 125th General Assembly to permit counties, municipal corporations, and townships to acquire tax-delinquent land for redevelopment free from liens for the unpaid taxes, to revise municipal taxation of S corporation income, to change the inflation adjustment rounding for homestead exemption tax reductions, to revise the method of computing the sales factor and situsing property to this state under the corporation franchise tax law, to clarify that the sales tax does not apply to public transit buses that seat 10 or fewer persons, to permit persons operating such buses with that seating capacity to apply for motor fuel tax refunds, to extend from 2005 to 2015 the tax credit on the purchase of new manufacturing machinery and equipment, to revise the land reutilization program, to update enterprise zone city and population eligibility criteria, to revise the requirements for redeeming delinquent land after a foreclosure proceeding has been instituted, to permit excess General Revenue Fund moneys to be used to support economic development projects, to require that interest earned on the School District Income Tax Fund be credited to the fund, to make changes to the law regarding the prepayment of real property or manufactured or mobile home taxes, to revise the manner in which the homestead exemption is adjusted for inflation, to limit the Tax Commissioner's authority to enforce certain components of enterprise zone agreements, to revise the information that is required to be in an enterprise zone agreement, to authorize tax incentive review councils to request information from owners of property exempted under urban renewal and community urban redevelopment projects, community reinvestment area programs, enterprise zone agreements, or tax increment financing ordinances or resolutions, to permit subdivisions to specify that revenue from a property tax levied for various police purposes may also be used to pay for police department buildings, to revise the method for computing the property, payroll, and sales factors used in calculating a trust's modified Ohio taxable income, to delay the effective date of new sales tax situsing provisions, to change the recipients of earmarked appropriations to the Air Force Institute of Technology, and to make an appropriation.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 321.45, 323.152, 323.25, 718.01, 4503.065, 5705.19, 5709.61, 5709.62, 5709.63, 5709.631, 5709.633, 5709.85, 5709.883, 5721.25, 5722.01, 5722.02, 5733.05, 5733.33, 5735.01, 5747.01, and 5747.03 be amended and sections 5722.21 and 5747.013 of the Revised Code be enacted to read as follows:
Sec. 321.45. (A) As used in this section: (1) "Taxpayer" means any person in whose name a parcel of
property or manufactured or mobile home is listed on the tax duplicate or a
vendee of such property under a purchase agreement or land
contract. (2) "Prepayment" means any amount given to the county
treasurer by a taxpayer under this section for the treasurer to
apply as payment of the taxpayer's total taxes due in accordance
with this section. (3) In the case of a parcel of property or a manufactured or
mobile home listed on the real property tax list, "taxes," "delinquent
taxes," and "current taxes" have
the same meanings as in section 323.01 of the Revised Code. In the case of
a manufactured or mobile home listed on the manufactured home tax list,
"taxes" means manufactured home taxes levied pursuant to section 4503.06 of
the Revised Code. (4) "Duplicate" means the treasurer's duplicate of real
and public utility property and the manufactured home tax list. (B)(1)(a) A county treasurer may enter into a written
agreement with any taxpayer for the payment of current taxes, upon
mutually agreed on terms
and
conditions, under which both of the following occur: (i) The taxpayer agrees to tender prepayments of taxes on
a parcel of property or a manufactured or mobile home listed on
the tax duplicate in the name of the taxpayer; (ii) The treasurer agrees to accept the prepayments and
hold them either in an escrow fund or a separate depository
account until the last day that an installment of current taxes
may be paid without penalty, at which time the treasurer
further agrees to
apply, toward the payment of the current
taxes due on the
parcel or the manufactured or mobile home, the amount
of the prepayments collected on
the parcel or the
manufactured or mobile home.
If a discount is not given under division
(B)(2) of this section, any
earnings on prepayments in an escrow fund or depository account
shall be paid to the credit of a special interest account to be
used by the treasurer only for the payment of the expenses
incurred in establishing and administering the system for
collecting prepayments under division
(B)(1) of this section. (b) A county treasurer and a taxpayer may enter into both a
written agreement
for the payment of current taxes under division
(B)(1)(a)
of this section and a written contract for the payment of delinquent taxes
under section 323.31 of the Revised Code. (2) In addition to providing for the items enumerated in
division (B)(1) of this section, the agreement may provide for
the treasurer to invest prepayments held in the escrow fund or
depository account, subject to Chapter 135. of the Revised Code,
and apply the investment earnings thereon, after deducting an
amount to pay the expenses incurred by the treasurer in
establishing and administering the prepayment system, as a
discount against the total taxes due of each taxpayer entering
into such an agreement. The balance applied to the discounts
shall be apportioned among taxpayers in such a manner that the
discount credited to a taxpayer for each parcel of property or manufactured
or mobile home for which taxes are
prepaid is commensurate with
the amount of current taxes due and, the length of time current
taxes are held in escrow, and the expenses incurred by the treasurer to process the prepayments. Discounts accruing to prepayments made
for a tax year shall be applied against total taxes due for the
ensuing tax year. No discount shall be apportioned to a taxpayer
who fails to pay the total taxes due or fails to make prepayments
pursuant to the terms of the agreement. (C) A prepayment accepted by a treasurer under an
agreement under division (B) of this section does not constitute
a payment of taxes until it is applied toward the payment of
taxes as provided in this section. A separate prepayment
agreement is required for each parcel of property or manufactured or mobile
home, except that a taxpayer who makes prepayments on more than one
parcel or manufactured or mobile home may enter into a single agreement
covering all of the
parcels or manufactured or mobile homes. The single agreement shall
specify the manner in which
each prepayment shall be apportioned among the parcels or manufactured or
mobile homes. The
treasurer shall keep either a separate record for each parcel or manufactured or
mobile home showing
the date and amount of each prepayment or a single record for all of the parcels or manufactured or mobile homes owned by a taxpayer showing the date and amount of each prepayment. (D) No treasurer shall fail to apply prepayments toward
the payment of taxes as required pursuant to an agreement entered
into under division (B) of this section. (E) The treasurer shall give each person who makes a tax
prepayment in person at the office of the county treasurer a
receipt in the form that the prepayment agreement requires. The
treasurer shall give a receipt to a person who makes a tax
prepayment to the treasurer by mail only if the taxpayer encloses
with the prepayment an addressed envelope with sufficient
postage, in which case the treasurer shall insert a receipt for
the prepayment in that envelope and deposit it in the mail. The
treasurer may refund any amount tendered as a prepayment, if the
taxpayer so requests and files with the treasurer an affidavit
and the supporting documents the treasurer requires providing
that the taxpayer no longer owns the property. The request for
the refund shall be made prior to the date of the mailing of a
tax bill and escrow statement to the taxpayer. If a taxpayer who
has entered into a prepayment agreement pursuant to this section
dies before the last day on which an installment of current taxes
may be paid without penalty, the treasurer may refund the amount
of any prepayments made by that taxpayer to the executor or
administrator of the taxpayer's estate. (F) If the treasurer has received any prepayments from a
taxpayer, the treasurer shall add to the tax bill required by
section 323.13 of the Revised Code a tax escrow statement that
shall specify the total amount of prepayments received by the
treasurer on or before the date the statement was prepared, the
balance of total taxes due for which no prepayment has been
received, the amount of any discount to be applied to total taxes
due, and the date the statement was prepared. (G) If the total amount of a taxpayer's prepayments to the
treasurer made on or before the final date an installment of
taxes may be paid without penalty do not equal or exceed the
current taxes due on that date, any
late penalty or interest due pursuant to section
323.121 of the Revised Code shall be assessed on the balance due after the
treasurer has applied the prepayments. If the treasurer fails to apply
prepayments received by the treasurer's office in accordance
with the terms
of an agreement and the total amount of the taxpayer's
prepayments equals or exceeds the total taxes due, the taxpayer
is relieved of any late penalty or interest imposed under section
323.121 of the Revised Code. (H) The office of the county treasurer shall bear all of
the costs of establishing and administering a system for
collecting prepayments as permitted by this section. (I) Before the county treasurer commences a prepayment
system, the tax commissioner shall approve all procedures and
forms to be used in the system. (J) The treasurer may enter into any agreements necessary
to enable the taxpayer to make prepayments of taxes to the office
of the treasurer through the electronic transfer of funds from an
account in the name of the taxpayer at a financial institution, or by credit card.
Sec. 323.152. In addition to the reduction in taxes
required
under section 319.302 of the Revised Code, taxes shall
be reduced
as provided in divisions (A) and
(B) of this section. (A)(1) Division (A) of this
section applies to any of the
following: (a) A person who is permanently and totally disabled; (b) A person who is sixty-five years of age or older; (c) A person who is the surviving spouse of a deceased
person who was permanently and totally disabled or sixty-five
years of age or older and who applied and qualified for a
reduction in taxes under this division in the year of death,
provided the
surviving spouse is at least fifty-nine but not
sixty-five or more years of
age on the date the deceased spouse
dies. (2) Real property taxes on a homestead owned and occupied,
or a
homestead in a housing cooperative occupied, by a
person to
whom division (A) of this section
applies shall be reduced for
each year for which the owner obtains a certificate of reduction
from the county auditor under section 323.154 of the Revised
Code
or for which the occupant obtains a certificate of reduction in
accordance with
section 323.159 of the Revised Code. The
reduction
shall equal the amount obtained by
multiplying the tax
rate for the tax year for which the
certificate is issued by the
reduction in taxable value shown in
the following schedule:
| | Reduce Taxable Value |
Total Income | | by the Lesser of: |
$11,900 or less | | $5,000 or seventy-five per cent |
More than $11,900 but not more than $17,500 | | $3,000 or sixty per cent |
More than $17,500 but not more than $23,000 | | $1,000 or twenty-five per cent |
More than $23,000 | | -0- |
(3) Each calendar year, the tax
commissioner shall adjust
the foregoing schedule
by completing the
following
calculations
in September of each year: (a) Determine the percentage increase in the gross
domestic
product deflator determined by the bureau of economic
analysis of
the United
States department of commerce
from the first day of
January of
the preceding calendar year to the last day of
December of the
preceding calendar
year; (b) Multiply that percentage increase by each of
the total
income amounts, and by each dollar amount by which taxable value
is
reduced, for the current tax year; (c) Add the resulting product to each of the total
income
amounts, and to each of the dollar amounts by which taxable value
is
reduced, for the current tax year; (d) Round (i) Except as provided in division (A)(3)(d)(ii) of this section, round the resulting sum to the nearest
multiple of one
hundred dollars; (ii) If rounding the resulting sum to the nearest multiple of one hundred dollars under division (A)(3)(d)(i) of this section does not increase the dollar amounts by which taxable value is reduced, the resulting sum instead shall be rounded to the nearest multiple of ten dollars. The commissioner shall certify the amounts resulting from
the
adjustment to each county auditor not later than the first
day of
December each year. The
certified amounts apply to the following
tax year. The
commissioner shall not make the adjustment in any
calendar year
in which the amounts resulting from the adjustment
would be less
than the total income amounts, or less than the
dollar amounts by which
taxable value is reduced, for the current
tax year. (B) Real property taxes on any homestead, and manufactured
home
taxes on any manufactured or mobile home on which a
manufactured home tax is
assessed pursuant to division (D)(2) of
section 4503.06 of the
Revised Code, shall be reduced for each
year for
which the owner obtains a certificate of
reduction from
the county auditor under section 323.154 of the
Revised Code. The
amount of the reduction shall equal one-fourth
of the amount by
which the taxes charged and payable on the
homestead or the
manufactured or mobile home are reduced for such year
under
section 319.302 of the
Revised Code. (C) The reductions granted by this section do not apply to
special assessments or respread of assessments levied against the
homestead, and if there is a transfer of ownership subsequent to
the filing of an application for a reduction in taxes, such
reductions are not forfeited for such year by virtue of such
transfer. (D) The reductions in taxable value referred to in this
section
shall be applied solely as a factor for the purpose of
computing
the reduction of taxes under this section and shall not
affect
the total value of property in any subdivision or taxing
district
as listed and assessed for taxation on the tax lists and
duplicates, or any direct or indirect limitations on indebtedness
of a subdivision or taxing district. If after application of
sections 5705.31 and 5705.32 of the Revised Code, including the
allocation of all levies within the ten-mill limitation to debt
charges to the extent therein provided, there would be
insufficient funds for payment of debt charges not provided for
by
levies in excess of the ten-mill limitation, the reduction of
taxes provided for in sections 323.151 to 323.159 of
the Revised
Code shall be proportionately adjusted to the extent necessary
to
provide such funds from levies within the ten-mill limitation. (E) No reduction shall be made on the taxes due on the
homestead of any person convicted of violating division (C) or
(D)
of section 323.153 of the Revised Code for a period of three
years
following the conviction.
Sec. 323.25. When taxes charged against an entry on the
tax duplicate, or any part of such taxes, are not paid within
sixty days after delivery of the delinquent land duplicate to the
county treasurer as prescribed by section 5721.011 of the Revised Code,
the county treasurer shall enforce the lien for such taxes by
civil action in the treasurer's official capacity as
treasurer, for the sale of such
premises, in the court of common pleas of the county in the same
way mortgage liens are enforced. If
After the civil action has been instituted, but before the filing of an entry of confirmation of sale pursuant to the action, any person entitled to redeem the land may do so by tendering to the county treasurer an amount sufficient, as determined by the court, to pay the taxes, assessments, penalties, interest, and charges then due and unpaid, and the costs incurred in the civil action, and by demonstrating that the property is in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes. If the delinquent land duplicate lists minerals or rights to minerals
listed pursuant to sections 5713.04, 5713.05, and 5713.06 of the
Revised Code,
the county treasurer may enforce the lien for taxes against such minerals or
rights to minerals by civil action, in the treasurer's official capacity as
treasurer, in the manner prescribed by this section, or proceed as provided
under section 5721.46 of the
Revised Code. If service by publication is
necessary, such publication shall be made once a week for three
consecutive weeks instead of as provided by the Rules of Civil
Procedure, and the service shall be complete at the expiration of
three weeks after the date of the first publication. If the
prosecuting attorney determines that service upon a defendant may
be obtained ultimately only by publication, the prosecuting
attorney may cause service
to be made simultaneously by certified mail, return receipt
requested, ordinary
mail, and publication. The county treasurer
shall not
enforce the lien for taxes against real property to which any
of the following applies: (A) The real property is the
subject of an application for exemption from taxation under
section 5715.27 of the Revised Code and does not appear on
the delinquent land duplicate; (B) The real property is the subject of a valid
delinquent tax contract under
section 323.31 of the Revised Code for which the county treasurer has not made
certification
to the county auditor that the delinquent tax
contract
has become void in accordance with
that section; (C) A tax certificate respecting that property has been sold
under section 5721.32 or 5721.33 of the Revised Code; provided, however, that
nothing in
this division shall prohibit the
county treasurer or the county prosecuting attorney from enforcing the lien of
the state and its political subdivisions for taxes against a certificate
parcel with respect to any or all of such taxes that at the time of
enforcement of such lien are not the subject of a tax certificate. Upon application of the plaintiff, the court shall advance
such cause on the docket, so that it may be first heard.
Sec. 718.01. (A) As used in this chapter: (1) "Adjusted federal taxable income" means a C corporation's federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, adjusted as follows: (a) Deduct intangible income to the extent included in federal taxable income. The deduction shall be allowed regardless of whether the intangible income relates to assets used in a trade or business or assets held for the production of income.
(b) Add an amount equal to five per cent of intangible income deducted under division (A)(1)(a) of this section, but excluding that portion of intangible income directly related to the sale, exchange, or other disposition of property described in section 1221 of the Internal Revenue Code;
(c) Add any losses allowed as a deduction in the computation of federal taxable income if the losses directly relate to the sale, exchange, or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code; (d)(i) Except as provided in division (A)(1)(d)(ii) of this section, deduct income and gain included in federal taxable income to the extent the income and gain directly relate to the sale, exchange, or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code;
(ii) Division (A)(1)(d)(i) of this section does not apply to the extent the income or gain is income or gain described in section 1245 or 1250 of the Internal Revenue Code.
(e) Add taxes on or measured by net income allowed as a deduction in the computation of federal taxable income;
(f) In the case of a real estate investment trust and regulated investment company, add all amounts with respect to dividends to, distributions to, or amounts set aside for or credited to the benefit of investors and allowed as a deduction in the computation of federal taxable income;
(g) If the taxpayer is not a C corporation and is not an individual, the taxpayer shall compute adjusted federal taxable income as if the taxpayer were a C corporation, except:
(i) Guaranteed payments and other similar amounts paid or accrued to a partner, former partner, member, or former member shall not be allowed as a deductible expense; and
(ii) Amounts paid or accrued to a qualified self-employed retirement plan with respect to an owner or owner-employee of the taxpayer, amounts paid or accrued to or for health insurance for an owner or owner-employee, and amounts paid or accrued to or for life insurance for an owner or owner-employee shall not be allowed as a deduction.
Nothing in division (A)(1) of this section shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.
Nothing in this chapter shall be construed as limiting or removing the ability of any municipal corporation to administer, audit, and enforce the provisions of its municipal income tax.
(2)
"Internal Revenue Code" means the Internal Revenue Code
of
1986, 100
Stat. 2085, 26 U.S.C. 1, as amended. (3)
"Schedule C" means internal revenue service schedule C
filed by a
taxpayer pursuant to the Internal Revenue Code. (4)
"Form 2106" means internal revenue service form 2106
filed by a taxpayer
pursuant to the Internal Revenue Code. (5)
"Intangible income" means income of any of the following
types: income
yield, interest, capital gains, 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, and patents, copyrights, trademarks, tradenames, investments in real estate investment trusts, investments in regulated investment companies, and appreciation on deferred compensation. "Intangible income" does not include prizes, awards, or other income associated with any lottery winnings or other similar games of chance. (6) "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. (7) For taxable years beginning on or after January 1, 2004, "net profit" for a taxpayer other than an individual means adjusted federal taxable income and "net profit" for a taxpayer who is an individual means the individual's profit, other than amounts described in division (F) of this section, required to be reported on schedule C, schedule E, or schedule F. (8) "Taxpayer" means a person subject to a tax on income levied by a municipal corporation. "Taxpayer" does not include any person that is a disregarded entity or a qualifying subchapter S subsidiary for federal income tax purposes, but "taxpayer" includes any other person who owns the disregarded entity or qualifying subchapter S subsidiary. (9) "Taxable year" means the corresponding tax reporting period as prescribed for the taxpayer under the Internal Revenue Code. (10) "Tax administrator" means the individual charged with direct responsibility for administration of a tax on income levied by a municipal corporation and includes:
(a) The central collection agency and the regional income tax agency and their successors in interest, and other entities organized to perform functions similar to those performed by the central collection agency and the regional income tax agency;
(b) A municipal corporation acting as the agent of another municipal corporation; and
(c) Persons retained by a municipal corporation to administer a tax levied by the municipal corporation, but only if the municipal corporation does not compensate the person in whole or in part on a contingency basis.
(11) "Person" includes individuals, firms, companies, business trusts, estates, trusts, partnerships, limited liability companies, associations, corporations, governmental entities, and any other entity.
(12) "Schedule E" means internal revenue service schedule E filed by a taxpayer pursuant to the Internal Revenue Code.
(13) "Schedule F" means internal revenue service schedule F filed by a taxpayer pursuant to the Internal Revenue Code. (B) No municipal corporation
shall tax 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 provided in division (E) or (F) 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)(a) For taxable years beginning on or after January 1, 2004, no municipal corporation shall tax the net profit from a business or profession using any base other than the taxpayer's adjusted federal taxable income. (b) Division (D)(2)(a) of this section does not apply to any taxpayer required to file a return under section 5745.03 of the Revised Code or to the net profit from a sole proprietorship. (E) The legislative authority of a municipal corporation may, by ordinance or resolution, exempt from withholding and from a tax on income the following:
(1) Compensation arising from the 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; or
(2) Compensation attributable to a nonqualified deferred compensation plan or program described in section 3121(v)(2)(C) of the Internal Revenue Code.
If
an individual'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, an amount other than the net profit required to be reported by the taxpayer on schedule C or F from such sole proprietorship for the taxable year.
In the case of a taxpayer who has a net profit from rental activity required to be reported on schedule E, 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, an amount other than the net profit from rental activities required to be reported by the taxpayer on schedule E for the taxable year. (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 a municipal
corporation may tax the following, subject to
Chapter 5745. of the
Revised Code: (a) Beginning January 1, 2002, the income of an electric
company or combined company;
(b) Beginning January 1, 2004, the income of a telephone
company. As used in division (F)(6) of this section, "combined company," "electric
company," and "telephone company" have
the same meanings as in section 5727.01 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)(a) Except as provided in division (H)(F)(9)(b) and (c) 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;.
(b) If, pursuant to division (H) of former section 718.01 of the Revised Code as it existed before the effective date of the amendment of that section by H.B. 127 of the 125th General Assembly, a majority of the electors of a municipal corporation voted in favor of the question at an election held on November 4, 2003, the municipal corporation may continue after 2002 to tax an S corporation shareholder's distributive share of net profits of an S corporation.
(c) If, on December 6, 2002, a municipal corporation was imposing, assessing, and collecting a tax on an S corporation shareholder's distributive share of net profits of the S corporation to the extent the distributive share would be allocated or apportioned to this state under divisions (B)(1) and (2) of section 5733.05 of the Revised Code if the S corporation were a corporation subject to taxes imposed under Chapter 5733. of the Revised Code, the municipal corporation may continue to impose the tax on such distributive shares to the extent such shares would be so allocated or apportioned to this state only until December 31, 2004, unless a majority of the electors of the municipal corporation voting on the question of continuing to tax such shares after that date vote in favor of that question at an election held November 2, 2004. If a majority of those electors vote in favor of the question, the municipal corporation may continue after December 31, 2004, to impose the tax on such distributive shares only to the extent such shares would be so allocated or apportioned to this state. (d) For the purposes of division (D) of section 718.14 of the Revised Code, a municipal corporation shall be deemed to have elected to tax S corporation shareholders' distributive shares of net profits of the S corporation in the hands of the shareholders if a majority of the electors of a municipal corporation vote in favor of a question at an election held under division (F)(9)(b) or (c) of this section. The municipal corporation shall specify by ordinance or rule that the tax applies to the distributive share of a shareholder of an S corporation in the hands of the shareholder of the S corporation. (10) Employee compensation that is not "qualifying wages" as defined in section 718.03 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.
(I)(H) 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.
(J)(I)(1) Nothing in this chapter prohibits a municipal corporation from allowing, by resolution or ordinance, a net operating loss carryforward.
(2) Nothing in this chapter requires a municipal corporation to allow a net operating loss carryforward.
Sec. 4503.065. (A) This section applies to any of the
following: (1) An individual who is permanently and totally disabled; (2) An individual who is sixty-five years of age or older; (3) An individual who is the surviving spouse of a
deceased
person who was permanently and totally disabled or
sixty-five
years of age or older and who applied and qualified
for a
reduction in assessable value under this section in the
year of
death, provided the surviving spouse is at least
fifty-nine but
not sixty-five or more years of age on the date
the deceased
spouse dies. (B)(1) The manufactured home tax on a manufactured
or mobile
home that is paid pursuant to division (C) of
section 4503.06 of
the Revised Code and that is owned
and occupied as a home by an
individual whose domicile is in this
state and to whom this
section applies, shall be reduced
for any tax year for which the
owner obtains a certificate of reduction from the county auditor
under section 4503.067 of the Revised Code, provided the
individual did not acquire ownership from a person, other than
the
individual's spouse, related by consanguinity or
affinity for the
purpose
of qualifying for the reduction in assessable value. An
owner
includes a settlor of a revocable inter vivos trust holding
the
title to a manufactured or mobile home occupied by the settlor
as of
right under the trust. The reduction shall equal the amount
obtained by
multiplying the tax rate for the tax year for which
the
certificate is issued by the reduction in assessable value
shown
in the following schedule.
| | Reduce Assessable Value |
Total Income | | by the Lesser of: |
| | Column A | Column B |
$11,900 or less | | $5,000 or seventy-five per cent |
More than $11,900 but not more than $17,500 | | $3,000 or sixty per cent |
More than $17,500 but not more than $23,000 | | $1,000 or twenty-five per cent
|
More than $23,000 | | -0- |
(2) Each calendar year, the tax
commissioner shall adjust
the foregoing schedule by completing
the
following
calculations
in September of each year: (a) Determine the percentage increase in the gross
domestic
product deflator determined by the bureau of economic
analysis of
the United
States department of commerce
from the first day of
January of
the preceding calendar year to the last day of
December of the
preceding calendar
year; (b) Multiply that percentage increase by each of
the total
income amounts, and by each dollar amount by which assessable
value
is reduced, for the ensuing tax year; (c) Add the resulting product to each of the total
income
amounts, and to each of the dollar amounts by which assessable
value is
reduced, for the ensuing tax year; (d) Round (i) Except as provided in division (B)(2)(d)(ii) of this section, round the resulting sum to the nearest
multiple of one
hundred dollars; (ii) If rounding the resulting sum to the nearest multiple of one hundred dollars under division (B)(2)(d)(i) of this section does not increase the dollar amounts by which assessable value is reduced, the resulting sum instead shall be rounded to the nearest multiple of ten dollars. The commissioner shall certify the amounts resulting from
the
adjustment to each county auditor not later than the first
day of
December each year. The
certified amounts apply to the second
ensuing tax year. The
commissioner shall not make the adjustment
in any calendar year
in which the amounts resulting from the
adjustment would be less
than the total income amounts, or less
than the dollar amounts by which
assessable value is reduced, for
the ensuing tax year. (C) If the owner or the spouse of the owner of a
manufactured or
mobile
home is eligible for a homestead exemption
on the land upon which
the home is located, the reduction in
assessable
value to which the owner or spouse is entitled under
this
section shall not exceed
the difference between the reduction
in assessable value
to which the owner or spouse is entitled under
column A of the above schedule
and the amount of the reduction in
taxable value that was used to compute the
homestead exemption. (D) No reduction shall be made on the assessable value of
the
home of any person convicted of violating division
(C) or (D)
of section 4503.066 of the Revised Code for a period
of three
years following the conviction.
Sec. 5705.19. This section does not apply to school
districts or county school financing districts. The taxing authority of any subdivision at any time and in
any year, by vote of two-thirds of all the members of the taxing
authority, may declare by resolution and certify the resolution
to
the board of elections not less than seventy-five days before
the
election upon which it will be voted that the amount of taxes
that
may be raised within the ten-mill limitation will be
insufficient
to provide for the necessary requirements of the
subdivision and
that it is necessary to levy a tax in excess of
that limitation
for any of the following purposes: (A) For current expenses of the subdivision, except that
the
total levy for current expenses of a detention facility
district
or district organized under section 2151.65 of the Revised Code
shall not exceed two mills and that the total levy for current
expenses of a combined district organized under sections
2152.41 2151.65
and 2151.65 2152.41 of the Revised Code shall not exceed four mills; (B) For the payment of debt charges on certain described
bonds, notes, or certificates of indebtedness of the subdivision
issued subsequent to January 1, 1925; (C) For the debt charges on all bonds, notes, and
certificates of indebtedness issued and authorized to be issued
prior to January 1, 1925; (D) For a public library of, or supported by, the
subdivision under whatever law organized or authorized to be
supported; (E) For a municipal university, not to exceed two mills
over
the limitation of one mill prescribed in section 3349.13 of
the
Revised Code; (F) For the construction or acquisition of any specific
permanent improvement or class of improvements that the taxing
authority of the subdivision may include in a single bond issue; (G) For the general construction, reconstruction,
resurfacing, and repair of streets, roads, and bridges in
municipal corporations, counties, or townships; (H) For
parks and recreational purposes; (I) For the purpose of providing and maintaining fire
apparatus, appliances, buildings, or sites therefor, or sources
of
water supply and materials therefor, or the establishment and
maintenance of lines of fire alarm telegraph, or the payment of
permanent, part-time, or volunteer firefighters or
firefighting
companies to operate the same, including the payment of the
firefighter employers'
contribution required under section
742.34
of
the Revised Code, or the purchase of ambulance
equipment, or
the provision of ambulance, paramedic, or other emergency
medical
services
operated by a fire department or firefighting
company; (J) For the purpose of providing and maintaining motor
vehicles, communications, and other equipment, buildings, and sites for such buildings used directly in
the
operation of a police department, or the payment of salaries
of
permanent police personnel, including the payment of the
police
officer employers' contribution
required under section 742.33
of
the Revised Code, or the payment of the costs incurred by
townships as a result of contracts made with other political
subdivisions in order to obtain police protection, or the
provision of ambulance or emergency medical services operated by a
police
department; (K) For the maintenance and operation of a county home or
detention
facility; (L) For community mental retardation and developmental
disabilities programs and services pursuant to Chapter 5126. of
the Revised Code, except that the procedure for such levies shall
be as provided in section 5705.222 of the Revised Code; (M) For regional planning; (N) For a county's share of the cost of maintaining and
operating schools, district detention facilities, forestry
camps,
or
other facilities, or any combination thereof, established under
section 2152.41 2151.65 or 2151.65 2152.41 of the Revised Code or both
of those
sections; (O) For providing for flood defense, providing and
maintaining a flood wall or pumps, and other purposes to prevent
floods; (P) For maintaining and operating sewage disposal plants
and
facilities; (Q) For the purpose of purchasing, acquiring,
constructing,
enlarging, improving, equipping, repairing,
maintaining, or
operating, or any combination of the foregoing, a
county transit
system pursuant to sections 306.01 to 306.13 of
the Revised Code,
or of making any payment to a board of
county commissioners
operating a transit system or a county transit
board pursuant to
section 306.06 of the Revised Code; (R) For the subdivision's share of the cost of acquiring
or
constructing any schools, forestry camps, detention
facilities,
or
other facilities, or any combination thereof, under section
2152.41 2151.65 or 2151.65 2152.41 of the Revised Code or both of
those sections; (S) For the prevention, control, and abatement of air
pollution; (T) For maintaining and operating cemeteries; (U) For providing ambulance service, emergency medical
service, or both; (V) For providing for the collection and disposal of
garbage
or refuse, including yard waste; (W) For the payment of the police officer
employers'
contribution or the firefighter
employers' contribution
required
under sections 742.33 and 742.34 of the Revised Code; (X) For the construction and maintenance of a drainage
improvement pursuant to section 6131.52 of the Revised Code; (Y) For providing or maintaining senior citizens services
or
facilities as authorized by section 307.694, 307.85, 505.70, or
505.706 or division (EE) of section 717.01 of the Revised Code; (Z) For the provision and maintenance of zoological park
services and facilities as authorized under section 307.76 of the
Revised Code; (AA) For the maintenance and operation of a free public
museum of art, science, or history; (BB) For the establishment and operation of a 9-1-1
system,
as defined in section 4931.40 of the Revised Code; (CC) For the purpose of acquiring, rehabilitating, or
developing rail property or rail service. As used in this
division, "rail property" and "rail service" have the same
meanings as in section 4981.01 of the Revised Code. This
division
applies only to a county, township, or municipal
corporation. (DD) For the purpose of acquiring property for,
constructing, operating, and maintaining community centers as
provided for in section 755.16 of the Revised Code; (EE) For the creation and operation of an office or joint
office of economic development, for any economic development
purpose of the office, and to otherwise provide for the
establishment and operation of a program of economic development
pursuant to sections 307.07 and 307.64 of the Revised Code; (FF) For the purpose of acquiring, establishing,
constructing, improving, equipping, maintaining, or operating, or
any combination of the foregoing, a township airport, landing
field, or other air navigation facility pursuant to section
505.15
of the Revised Code; (GG) For the payment of costs incurred by a township as a
result of a contract made with a county pursuant to section
505.263 of the Revised Code in order to pay all or any part of
the
cost of constructing, maintaining, repairing, or operating a
water
supply improvement; (HH) For a board of township trustees to acquire, other
than
by appropriation, an ownership interest in land, water, or
wetlands, or to restore or maintain land, water, or wetlands in
which the board has an ownership interest, not for purposes
of
recreation, but for the purposes of protecting and preserving the
natural, scenic, open, or wooded condition of the land, water, or
wetlands against modification or encroachment resulting from
occupation, development, or other use, which may be styled as
protecting or preserving "greenspace" in the resolution, notice of
election,
or ballot form; (II) For the support by a county of a crime victim
assistance program that is provided and maintained by a county
agency or a private, nonprofit corporation or association under
section 307.62 of the Revised Code; (JJ) For any or all of the purposes set forth in divisions
(I) and (J) of this section. This division applies only to a
township. (KK) For a countywide public safety communications system
under section 307.63 of the Revised Code. This division applies
only to counties. (LL) For the support by a county of criminal justice
services under section 307.45 of the Revised Code; (MM) For the purpose of maintaining and operating a jail
or
other detention facility as defined in section 2921.01 of the
Revised Code; (NN) For purchasing, maintaining, or improving, or any
combination of the foregoing, real estate on which to hold
agricultural
fairs. This division applies only to a county. (OO) For constructing, rehabilitating, repairing, or
maintaining
sidewalks, walkways, trails, bicycle pathways, or
similar improvements, or
acquiring ownership interests in land
necessary for the foregoing
improvements; (PP) For both of the purposes set forth in divisions (G)
and
(OO) of this section.
(QQ) For both of the purposes set forth in divisions (H) and
(HH) of this section. This division applies only to a township. (RR) For the legislative authority of a municipal
corporation, board of county commissioners of a county, or board
of township trustees of a township to acquire agricultural
easements, as defined in section 5301.67 of the
Revised Code, and
to supervise and
enforce the easements. (SS) For both of the purposes set forth in divisions (BB)
and (KK) of this section. This division applies only to a county. The resolution shall be confined to the
purpose or purposes
described in one division of this section, to which the revenue
derived therefrom shall be applied. The existence in any other
division of this section of authority to levy a tax for any part
or all of the same purpose or purposes does not preclude the use
of such revenues for any part of the purpose or purposes of the
division under which the resolution is adopted. The resolution shall specify the amount of the increase in
rate that it is necessary to levy, the purpose of that
increase in
rate, and the
number of years during which the increase in rate
shall be in
effect, which may or may not include a levy upon the
duplicate of
the current year. The number of years may be any
number not
exceeding five, except as follows: (1) When the additional rate is for the payment of debt
charges, the increased rate shall be for the life of the
indebtedness. (2) When the additional rate is for any of the following,
the
increased rate shall be for a continuing period of time: (a) For the current expenses for a detention facility
district, a district organized under section 2151.65 of the
Revised Code, or a combined district organized under sections
2152.41 2151.65 and 2151.65 2152.41 of the Revised Code; (b) For providing a county's share of the cost of
maintaining and operating schools, district detention
facilities,
forestry camps, or other facilities, or any combination
thereof,
established under section 2152.41 2151.65 or 2151.65 2152.41 of the
Revised Code
or under both of those sections. (3) When the additional rate is for
either of the
following,
the increased rate may be for a continuing period of
time: (a) For the purposes set forth in division (I), (J), (U),
or
(KK) of this section; (b) For the maintenance and operation of a joint
recreation
district. (4) When the increase is for the purpose
or purposes set
forth in
division (D), (G),
(H), (CC), or (PP) of this section,
the
tax
levy
may be for any
specified number of
years or for a
continuing
period of time, as
set forth in the
resolution. (5) When the additional rate is for the purpose described
in
division (Z) of this section, the increased rate shall be for
any
number of years not exceeding ten. A levy for
one of the purposes set forth in division
(G),
(I), (J), or
(U) of this section may be
reduced
pursuant to
section 5705.261 or 5705.31 of the Revised
Code. A
levy for
one
of the purposes set forth in division
(G),
(I), (J), or
(U) of
this section may
also be
terminated
or permanently reduced by the
taxing authority
if it
adopts a
resolution stating that the
continuance of the levy
is
unnecessary
and the levy shall be
terminated or that the
millage
is excessive
and the levy shall be
decreased by a
designated
amount. A resolution of a detention facility district, a district
organized under section 2151.65 of the Revised Code, or a
combined
district organized under both sections
2152.41 2151.65 and 2151.65 2152.41 of the
Revised Code may include both current
expenses and
other purposes,
provided that the resolution shall apportion the
annual rate of
levy between the current expenses and the other
purpose or
purposes. The apportionment need not be the same for
each year of
the levy, but the respective portions of the rate
actually levied
each year for the current expenses and the other
purpose or
purposes shall be limited by the apportionment. Whenever a board of county commissioners, acting either as
the taxing authority of its county or as the taxing authority of
a
sewer district or subdistrict created under Chapter 6117. of
the
Revised Code, by resolution declares it necessary to levy a
tax in
excess of the ten-mill limitation for the purpose of
constructing,
improving, or extending sewage disposal plants or
sewage systems,
the tax may be in effect for any number of years
not exceeding
twenty, and the proceeds of the tax,
notwithstanding
the general
provisions of this section, may be used to pay debt
charges on any
obligations issued and outstanding on behalf of
the subdivision
for the purposes enumerated in this paragraph,
provided that any
such obligations have been specifically
described in the
resolution. The resolution shall go into immediate effect upon its
passage, and no publication of the resolution is necessary other
than that provided for in the notice of election. When the electors of a subdivision have approved a tax levy
under this section, the taxing authority of the subdivision may
anticipate a fraction of the proceeds of the levy and issue
anticipation notes in accordance with section 5705.191 or
5705.193
of the Revised Code.
Sec. 5709.61. As used in sections 5709.61 to 5709.69 of
the
Revised Code: (A) "Enterprise zone" or "zone" means any of the
following: (1) An area with a single continuous boundary designated
in
the manner set forth in section 5709.62 or 5709.63 of the
Revised
Code and certified by the director of development as
having a
population of at least four thousand according to the
best and
most recent data available to the director and having at
least two
of the following characteristics: (a) It is located in a municipal corporation defined by
the
United States office of management and budget as a central principal
city of
a metropolitan statistical area or in a city designated as an urban cluster in a rural statistical area; (b) It is located in a county designated as being in the
"Appalachian region" under the "Appalachian Regional Development
Act of 1965," 79 Stat. 5, 40 App. U.S.C.A. 403, as amended; (c) Its average rate of unemployment, during the most
recent
twelve-month period for which data are available, is equal
to at
least one hundred twenty-five per cent of the average rate
of
unemployment for the state of Ohio for the same period; (d) There is a prevalence of commercial or industrial
structures in the area that are vacant or demolished, or are
vacant and the taxes charged thereon are delinquent, and
certification of the area as an enterprise zone would likely
result in the reduction of the rate of vacant or demolished
structures or the rate of tax delinquency in the area; (e) The population of all census tracts in the area,
according to the federal census of 1990 2000, decreased by at least
ten
per cent between the years 1970 1980 and 1990 2000; (f) At least fifty-one per cent of the residents of the
area
have incomes of less than eighty per cent of the median
income of
residents of the municipal corporation or municipal
corporations
in which the area is located, as determined in the
same manner
specified under section 119(b) of the "Housing and
Community
Development Act of 1974," 88 Stat. 633, 42 U.S.C. 5318,
as
amended; (g) The area contains structures previously used for
industrial purposes, but currently not so used due to age,
obsolescence, deterioration, relocation of the former occupant's
operations, or cessation of operations resulting from unfavorable
economic conditions either generally or in a specific economic
sector; (h) It is located within one or more adjacent city,
local,
or exempted village school districts, the income-weighted
tax
capacity of each of which is less than seventy per cent of
the
average of the income-weighted tax capacity of all city,
local, or
exempted village school districts in the state
according to the
most recent data available to the director from
the department of
taxation. The director of development shall adopt rules in accordance
with Chapter 119. of the Revised Code establishing conditions
constituting the characteristics described in divisions
(A)(1)(d),
(g), and (h) of this section. If an area could not be certified as an enterprise zone
unless it satisfied division (A)(1)(g) of this section, the
legislative authority may enter into agreements in that zone
under
section 5709.62, 5709.63, or 5709.632 of the Revised Code
only if
such agreements result in the development of the
facilities
described in that division, the parcel of land on
which such
facilities are situated, or adjacent parcels. The
director of
development annually shall review all agreements in
such zones to
determine whether the agreements have resulted in
such
development; if the director determines that the agreements
have
not resulted in such development, the director immediately
shall
revoke certification of the zone and notify the legislative
authority of such revocation. Any agreements entered into prior
to revocation under this paragraph shall continue in effect for
the period provided in the agreement. (2) An area with a single continuous boundary designated
in
the manner set forth in section 5709.63 of the Revised Code
and
certified by the director of development as: (a) Being located within a county that contains a
population
of three hundred thousand or less; (b) Having a population of at least one thousand according
to the best and most recent data available to the director; (c) Having at least two of the characteristics described
in
divisions (A)(1)(b) to (h) of this section. (3) An area with a single continuous boundary designated
in
the manner set forth under division (A)(1) of section 5709.632
of
the Revised Code and certified by the director of development
as
having a population of at least four thousand, or under
division
(A)(2) of that section and certified as having a
population of at
least one thousand, according to the best and
most recent data
available to the director. (B) "Enterprise" means any form of business organization
including, but not limited to, any partnership, sole
proprietorship, or corporation, including an S corporation as
defined in section 1361 of the Internal Revenue Code and any
corporation that is majority work-owned either directly through
the ownership of stock or indirectly through participation in an
employee stock ownership plan. (C) "Facility" means an enterprise's place of business in
a
zone, including land, buildings, machinery, equipment, and
other
materials, except inventory, used in business. "Facility"
includes land, buildings, machinery, production and station
equipment,
other equipment, and other materials, except inventory,
used in business to
generate electricity, provided that, for
purposes of sections
5709.61 to 5709.69 of the Revised Code, the
value of the
property
at such a facility shall be reduced by the
value, if any, that is
not apportioned under section 5727.15 of
the Revised Code to
the taxing district in which the facility is
physically located. In the case of such a facility that is
physically located in two adjacent taxing districts, the property
located in
each taxing district constitutes a separate facility. "Facility" does not include any portion of an enterprise's
place
of business
used primarily for making retail sales, unless
the place of
business is located in an impacted city as defined in
section
1728.01 of the Revised Code. (D) "Vacant facility" means a facility that has been
vacant
for at least ninety days immediately preceding the date on
which
an agreement is entered into under section 5709.62 or 5709.63 of
the Revised Code. (E) "Expand" means to make expenditures to add land,
buildings, machinery, equipment, or other materials, except
inventory, to a facility that equal at least ten per cent of the
market value of the facility prior to such expenditures, as
determined for the purposes of local property taxation. (F) "Renovate" means to make expenditures to alter or
repair
a facility that equal at least fifty per cent of the
market value
of the facility prior to such expenditures, as
determined for the
purposes of local property taxation. (G) "Occupy" means to make expenditures to alter or repair
a
vacant facility equal to at least twenty per cent of the market
value of the facility prior to such expenditures, as determined
for the purposes of local property taxation. (H) "Project site" means all or any part of a facility
that
is newly constructed, expanded, renovated, or occupied by an
enterprise. (I) "Project" means any undertaking by an enterprise to
establish a facility or to improve a project site by expansion,
renovation, or occupancy. (J) "Position" means the position of one full-time
employee
performing a particular set of tasks and duties. (K) "Full-time employee" means an individual who is
employed
for consideration by an enterprise for at least
thirty-five hours
a week, or who renders any other standard of
service generally
accepted by custom or specified by contract as
full-time
employment. (L) "New employee" means a full-time employee first
employed
by an enterprise at a facility that is a project site
after the
enterprise enters an agreement under section 5709.62 or
5709.63 of
the Revised Code. "New employee" does not include an
employee if,
immediately prior to being employed by the
enterprise, the
employee was employed by an enterprise that is a
related member or
predecessor enterprise of that enterprise. (M) "Unemployed person" means any person who is totally
unemployed in this state, as that term is defined in division (M)
of section 4141.01 of the Revised Code, for at least ten
consecutive weeks immediately preceding that person's
employment
at a
facility that is a project site, or who is so unemployed for
at
least twenty-six of the fifty-two weeks immediately preceding
that person's
employment at such a facility. (N) "JTPA eligible employee" means any individual who is
eligible for employment or training under the "Job Training
Partnership Act," 96 Stat. 1324 (1982), 29 U.S.C. 1501, as
amended. (O) "First used in business" means that the property
referred to has not been used in business in this state by the
enterprise that owns it, or by an enterprise that is a related
member or predecessor enterprise of such an enterprise, other
than
as inventory, prior to being used in business at a facility
as the
result of a project. (P) "Training program" means any noncredit training
program
or course of study that is offered by any state college
or
university; university branch district; community college;
technical college; nonprofit college or university certified
under
section 1713.02 of the Revised Code; school district; joint
vocational school district; school registered and authorized to
offer programs under section 3332.05 of the Revised Code; an
entity administering any federal, state, or local adult education
and training program; or any enterprise; and that meets all of
the
following requirements: (1) It is approved by the director of development; (2) It is established or operated to satisfy the need of a
particular industry or enterprise for skilled or semi-skilled
employees; (3) An individual is required to complete the course or
program before filling a position at a project site. (Q) "Development" means to engage in the process of
clearing
and grading land, making, installing, or constructing
water
distribution systems, sewers, sewage collection systems,
steam,
gas, and electric lines, roads, curbs, gutters, sidewalks,
storm
drainage facilities, and construction of other facilities
or
buildings equal to at least fifty per cent of the market value
of
the facility prior to the expenditures, as determined for the
purposes of local property taxation. (R) "Large manufacturing facility" means a single Ohio
facility that employed an average of at least one thousand
individuals during the five calendar years preceding an
agreement
authorized under division (C)(3) of section 5709.62 or
division
(B)(2) of section 5709.63 of the Revised Code. For purposes of
this
division, both of the following apply: (1) A single Ohio
manufacturing facility employed an average
of at least one
thousand individuals during the five calendar
years preceding
entering into such an agreement if one-fifth of
the sum of the
number of employees employed on the highest
employment day
during each of the five calendar years equals or
exceeds one
thousand. (2) The highest employment day is the day or days during
a
calendar year on which the number of employees employed at a
single Ohio manufacturing facility was
greater than on any other
day during the calendar year. (S) "Business cycle" means the cycle of business activity
usually regarded as passing through alternating stages of
prosperity and depression. (T) "Making retail sales" means the effecting of
point-of-final-purchase transactions
at a facility open to the
consuming public, wherein one party is obligated to pay the price
and
the other party is obligated to provide a service or to
transfer
title to or possession of the item sold. (U) "Environmentally contaminated" means that hazardous
substances exist at a facility under conditions that have caused
or would cause the facility to be identified as contaminated by
the state or federal environmental protection agency. These may
include facilities located at sites identified in the master
sites
list or similar database maintained by the state
environmental
protection agency if the sites have been
investigated by the
agency and found to be contaminated. (V) "Remediate" means to make expenditures to clean up an
environmentally contaminated facility so that it is no longer
environmentally contaminated that equal at least ten per cent of
the real property market value of the facility prior to such
expenditures as determined for the purposes of property taxation. (W) "Related member" has the same meaning as defined in
section 5733.042 of the Revised Code without regard to division
(B) of that section, except that it is used with respect to an
enterprise rather than a taxpayer. (X) "Predecessor enterprise" means an enterprise from
which
the assets or equity of another enterprise has been
transferred,
which transfer resulted in the full or partial
nonrecognition of
gain or loss, or resulted in a carryover basis,
both as determined
by rule adopted by the tax commissioner. (Y) "Successor enterprise" means an enterprise to which
the
assets or equity of another enterprise has been transferred,
which
transfer resulted in the full or partial nonrecognition of
gain or
loss, or resulted in a carryover basis, both as
determined by rule
adopted by the tax commissioner.
Sec. 5709.62. (A) In any municipal corporation that is
defined by the United States office of management and budget as a
central city of a metropolitan statistical area, or in a city designated as an urban cluster in a rural statistical area, the legislative
authority of the municipal corporation may designate one or more
areas within its municipal corporation as proposed enterprise
zones. Upon designating an area, the legislative authority shall
petition the director of development for certification of the
area as having the characteristics set forth in division (A)(1)
of section 5709.61 of the Revised Code as amended by Substitute
Senate Bill No. 19 of the 120th general assembly. Except as
otherwise provided in division (E) of this section, on and after
July 1, 1994, legislative authorities shall not enter into
agreements under this section unless the legislative authority
has petitioned the director and the director has certified the
zone under this section as amended by that act; however, all
agreements entered into under this section as it existed prior to
July 1, 1994, and the incentives granted under those agreements
shall remain in effect for the period agreed to under those
agreements. Within sixty days after receiving such a petition,
the director shall determine whether the area has the
characteristics set forth in division (A)(1) of section 5709.61
of the Revised Code, and shall forward the findings to
the
legislative authority of the municipal corporation. If the
director certifies the area as having those characteristics, and
thereby certifies it as a zone, the legislative authority may
enter into an agreement with an enterprise under division (C) of
this section. (B) Any enterprise that wishes to enter into an agreement
with a municipal corporation under division (C) of this section
shall submit a proposal to the legislative authority of the
municipal corporation on a form prescribed by the director of
development, together with the application fee established under
section 5709.68 of the Revised Code. The form shall require the
following information: (1) An estimate of the number of new employees whom the
enterprise intends to hire, or of the number of employees whom
the enterprise intends to retain, within the zone at a facility
that is a project site, and an estimate of the amount of payroll
of the enterprise attributable to these employees; (2) An estimate of the amount to be invested by the
enterprise to establish, expand, renovate, or occupy a facility,
including investment in new buildings, additions or improvements
to existing buildings, machinery, equipment, furniture, fixtures,
and inventory; (3) A listing of the enterprise's current investment, if
any, in a facility as of the date of the proposal's submission. The enterprise shall review and update the listings
required under this division to reflect material changes, and any
agreement entered into under division (C) of this section shall
set forth final estimates and listings as of the time the
agreement is entered into. The legislative authority may, on a
separate form and at any time, require any additional information
necessary to determine whether an enterprise is in compliance
with an agreement and to collect the information required to be
reported under section 5709.68 of the Revised Code. (C) Upon receipt and investigation of a proposal under
division (B) of this section, if the legislative authority finds
that the enterprise submitting the proposal is qualified by
financial responsibility and business experience to create and
preserve employment opportunities in the zone and improve the
economic climate of the municipal corporation, the legislative
authority, on or before
October 15, 2009, may do one
of the following: (1) Enter into an agreement with the enterprise under
which the enterprise agrees to establish, expand, renovate, or
occupy a facility and hire new employees, or preserve employment
opportunities for existing employees, in return for one or more
of the following incentives: (a) Exemption for a specified number of years, not to
exceed ten, of a specified portion, up to seventy-five per cent,
of the assessed value of tangible personal property first used in
business at the project site as a result of the agreement. An
If an exemption for inventory is specifically granted in the agreement pursuant to this division, the exemption applies to inventory
required to be listed pursuant to sections 5711.15 and 5711.16 of
the Revised Code, except that, in the instance of an expansion or
other situations in which an enterprise was in business at the
facility prior to the establishment of the zone, the inventory
that is exempt is that amount or value of inventory in excess of
the amount or value of inventory required to be listed in the
personal property tax return of the enterprise in the return for
the tax year in which the agreement is entered into. (b) Exemption for a specified number of years, not to
exceed ten, of a specified portion, up to seventy-five per cent,
of the increase in the assessed valuation of real property
constituting the project site subsequent to formal approval of
the agreement by the legislative authority; (c) Provision for a specified number of years, not to
exceed ten, of any optional services or assistance that the
municipal corporation is authorized to provide with regard to the
project site. (2) Enter into an agreement under which the enterprise agrees to
remediate an environmentally contaminated facility, to spend an
amount equal to at least two hundred fifty per cent of the true
value in money of the real property of the facility prior to
remediation as determined for the purposes of property taxation
to establish, expand, renovate, or occupy the remediated
facility, and to hire new employees or preserve employment
opportunities for existing employees at the remediated facility,
in return for one or more of the following incentives: (a) Exemption for a specified number of years, not to
exceed ten, of a specified portion, not to exceed fifty per cent,
of the assessed valuation of the real property of the facility
prior to remediation; (b) Exemption for a specified number of years, not to
exceed ten, of a specified portion, not to exceed one hundred per
cent, of the increase in the assessed valuation of the real
property of the facility during or after remediation; (c) The incentive under division (C)(1)(a) of this
section, except that the percentage of the assessed value of such
property exempted from taxation shall not exceed one hundred per
cent; (d) The incentive under division (C)(1)(c) of this
section. (3) Enter into an agreement with an enterprise that plans
to purchase and operate a large manufacturing facility that has
ceased operation or announced its intention to cease operation,
in return for exemption for a specified number of years, not to
exceed ten, of a specified portion, up to one hundred per cent,
of the assessed value of tangible personal property used in
business at the project site as a result of the agreement, or of
the assessed valuation of real property constituting the project
site, or both. (D)(1) Notwithstanding divisions (C)(1)(a) and (b) of this
section, the portion of the assessed value of tangible personal
property or of the increase in the assessed valuation of real
property exempted from taxation under those divisions may exceed
seventy-five per cent in any year for which that portion is
exempted if the average percentage exempted for all years in
which the agreement is in effect does not exceed sixty per cent,
or if the board of education of the city, local, or exempted
village school district within the territory of which the
property is or will be located approves a percentage in excess of
seventy-five per cent. For the purpose of obtaining such
approval, the legislative authority shall deliver to the board of
education a notice not later than forty-five days prior to
approving the agreement, excluding Saturdays, Sundays, and
legal holidays as defined in section 1.14 of the Revised Code. The notice shall state
the percentage to be exempted, an
estimate of the true value of the property to be exempted, and
the number of years the property is to be exempted. The board of
education, by resolution adopted by a majority of the board,
shall approve or disapprove the agreement and certify a copy of
the resolution to the legislative authority not later than
fourteen days prior to the date stipulated by the legislative
authority as the date upon which approval of the agreement is to
be formally considered by the legislative authority. The board
of education may include in the resolution conditions under which
the board would approve the agreement, including the execution of
an agreement to compensate the school district under division (B)
of section 5709.82 of the Revised Code. The legislative
authority may approve the agreement at any time after the board
of education certifies its resolution approving the agreement to
the legislative authority, or, if the board approves the
agreement conditionally, at any time after the conditions are
agreed to by the board and the legislative authority. If a board of education has adopted a resolution waiving
its right to approve agreements and the resolution
remains in effect, approval of an agreement by the
board is not required under this division. If a board of
education has adopted a resolution allowing a legislative
authority to deliver the notice required under this division
fewer than forty-five business days prior to the legislative
authority's approval of the agreement, the legislative
authority shall deliver the notice to the board not later than
the number of days prior to such approval as prescribed by the
board in its resolution. If a board of education adopts a
resolution waiving its right to approve agreements or shortening
the notification period, the board shall certify a copy of the
resolution to the legislative authority. If the board of
education rescinds such a resolution, it shall certify notice of
the rescission to the legislative authority. (2) The legislative authority shall comply with section
5709.83 of the Revised
Code unless the board of
education has adopted a resolution under that section waiving
its right to receive such notice. (E) This division applies to zones certified by the
director of development under this section prior to July
22,
1994. On or before October 15, 2009,
the legislative authority
that designated a zone to which this division applies may enter
into an agreement with an enterprise if the legislative authority
makes the finding required under that division and determines
that the enterprise satisfies one of the criteria described in
divisions (E)(1) to (5) of this section: (1) The enterprise currently has no operations in this
state and, subject to approval of the agreement, intends to
establish operations in the zone; (2) The enterprise currently has operations in this state
and, subject to approval of the agreement, intends to establish
operations at a new location in the zone that would not result in
a reduction in the number of employee positions at any of the
enterprise's other locations in this state; (3) The enterprise, subject to approval of the agreement,
intends to relocate operations, currently located in another
state, to the zone; (4) The enterprise, subject to approval of the agreement,
intends to expand operations at an existing site in the zone that
the enterprise currently operates; (5) The enterprise, subject to approval of the agreement,
intends to relocate operations, currently located in this state,
to the zone, and the director of development has issued a waiver
for the enterprise under division (B) of section 5709.633 of the
Revised Code. The agreement shall require the enterprise to agree to
establish, expand, renovate, or occupy a facility in the zone and
hire new employees, or preserve employment opportunities for
existing employees, in return for one or more of the incentives
described in division (C) of this section. (F) All agreements entered into under this section shall
be in the form prescribed under section 5709.631 of the Revised
Code. After an agreement is entered into under this division, if
the legislative authority revokes its designation of a zone, or
if the director of development revokes the zone's certification,
any entitlements granted under the agreement shall continue for
the number of years specified in the agreement. (G) Except as otherwise provided in this division, an
agreement entered into under this section shall require that the
enterprise pay an annual fee equal to the greater of one per cent
of the dollar value of incentives offered under the agreement or
five hundred dollars; provided, however, that if the value of the
incentives exceeds two hundred fifty thousand dollars, the fee
shall not exceed two thousand five hundred dollars. The fee
shall be payable to the legislative authority once per year for
each year the agreement is effective on the days and in the form
specified in the agreement. Fees paid shall be deposited in a
special fund created for such purpose by the legislative
authority and shall be used by the legislative authority
exclusively for the purpose of complying with section 5709.68 of
the Revised Code and by the tax incentive review council created
under section 5709.85 of the Revised Code exclusively for the
purposes of performing the duties prescribed under that section.
The legislative authority may waive or reduce the amount of the
fee charged against an enterprise, but such a waiver or reduction
does not affect the obligations of the legislative authority or
the tax incentive review council to comply with section 5709.68
or 5709.85 of the Revised Code. (H) When an agreement is entered into pursuant to this
section, the legislative authority authorizing the agreement
shall forward a copy of the agreement to the director of
development and to the tax commissioner within fifteen days after
the agreement is entered into. If any agreement includes terms not
provided for in section 5709.631 of the Revised Code
affecting the revenue of a city, local, or exempted
village school district or causing revenue to be foregone by the district,
including any compensation to be paid to the school district pursuant to
section
5709.82 of the Revised Code, those terms also shall be forwarded
in writing to the director of development along with the copy of the
agreement forwarded under this division. (I) After an agreement is entered into, the enterprise
shall file
with each personal property tax return required to be
filed, or annual report required to be filed under section 5727.08 of the
Revised Code, while the agreement is in effect, an informational return,
on a form prescribed by the tax commissioner for that purpose,
setting forth separately the property, and related costs and
values, exempted from taxation under the agreement. (J) Enterprises may agree to give preference to residents
of the zone within which the agreement applies relative to
residents of this state who do not reside in the zone when hiring
new employees under the agreement. (K) An agreement entered into under this section may
include a provision requiring the enterprise to create one or
more temporary internship positions for students enrolled in a
course of study at a school or other educational institution in
the vicinity, and to create a scholarship or provide another form
of educational financial assistance for students holding such a
position in exchange for the student's commitment to work for the
enterprise at the completion of the internship.
(L) The tax commissioner's authority in determining the accuracy of any exemption granted by an agreement entered into under this section is limited to divisions (C)(1)(a) and (b), (C)(2)(a), (b), and (c), (C)(3), (D), and (I) of this section and divisions (B)(1) to (10) of section 5709.631 of the Revised Code and, as authorized by law, to enforcing any modification to, or revocation of, that agreement by the municipal corporation or director of development.
Sec. 5709.63. (A) With the consent of the legislative
authority of each affected municipal corporation or of a board of
township trustees, a board of county commissioners may, in the
manner set forth in section 5709.62 of the Revised Code,
designate one or more areas in one or more municipal corporations
or in unincorporated areas of the county as proposed
enterprise zones. A board of county commissioners
may designate no more than one area within a township, or within
adjacent townships, as a proposed enterprise zone. The board shall
petition the director of development for certification of the
area as having the characteristics set forth in division (A)(1) or (2) of
section 5709.61 of the Revised Code as amended by Substitute Senate Bill No.
19 of the 120th general assembly. Except as otherwise provided in division
(D) of this section, on and after July 1, 1994, boards of county commissioners
shall not enter into agreements under this section unless the board has
petitioned the director and the director has certified the zone under this
section as amended by that act; however, all agreements entered into under
this section as it existed prior to July 1, 1994, and the incentives granted
under those agreements shall remain in effect for the period agreed to under
those agreements. The director shall make the
determination in the manner provided under section 5709.62 of the
Revised Code. Any enterprise wishing to enter into an agreement
with the board under division (B) or (D) of this section shall submit a
proposal to the
board on the form and accompanied by the application fee prescribed under
division (B) of section
5709.62 of the Revised Code. The enterprise shall review and update the
estimates and listings required by the form in the manner
required under that division. The board may, on a separate form
and at any time, require any additional information necessary to
determine whether an enterprise is in compliance with an
agreement and to collect the information required to be reported under section
5709.68 of the Revised Code. (B) If the board of county commissioners finds that an
enterprise submitting a proposal is qualified by financial
responsibility and business experience to create and preserve
employment opportunities in the zone and to improve the economic
climate of the municipal corporation or municipal corporations or
the unincorporated areas in which the zone is located and to
which the proposal applies, the board, on or before
October 15, 2009, and with the consent of the
legislative authority
of each
affected municipal corporation or of the board of township
trustees may do either of the following: (1) Enter into an agreement with the enterprise under
which the enterprise agrees to establish, expand, renovate, or
occupy a facility in the zone and hire new employees, or preserve
employment opportunities for existing employees, in return for
the following incentives: (a) When the facility is located in a municipal
corporation, the board may enter into an agreement for one or
more of the incentives provided in division (C) of section
5709.62 of the Revised Code, subject to division (D) of that section; (b) When the facility is located in an unincorporated
area, the board may enter into an agreement for one or more of
the following incentives: (i) Exemption for a specified number of years, not to
exceed ten, of a specified portion, up to sixty per cent,
of the assessed value of tangible personal property first used in business at
a project
site as a result of the agreement. An If an exemption for inventory is specifically granted in the agreement pursuant
to this division, the exemption applies to inventory required to be listed
pursuant to sections 5711.15 and 5711.16 of the Revised Code,
except, in the instance of an expansion or other situations in
which an enterprise was in business at the facility prior to the
establishment of the zone, the inventory that is exempt is that
amount or value of inventory in excess of the amount or value of
inventory required to be listed in the personal property tax
return of the enterprise in the return for the tax year in which
the agreement is entered into. (ii) Exemption for a specified number of years, not to
exceed ten, of a specified portion, up to sixty per cent,
of the increase in the assessed valuation of real property constituting the
project site subsequent to formal approval of the agreement by the board; (iii) Provision for a specified number of years, not to
exceed ten, of any optional services or assistance the board is
authorized to provide with regard to the project site; (iv) The incentive described in division (C)(2) of section 5709.62 of the
Revised Code. (2) Enter into an agreement with an enterprise that plans
to purchase and operate a large manufacturing facility that has
ceased operation or has announced its intention to cease
operation, in return for exemption for a specified number of
years, not to exceed ten, of a specified portion, up to one
hundred per cent, of tangible personal property used in business
at the project site as a result of the agreement, or of real
property constituting the project site, or both. (C)(1) Notwithstanding divisions (B)(1)(b)(i) and (ii) of this
section,
the
portion of the assessed value of tangible personal property or of the increase
in the assessed valuation of real property exempted from taxation under those
divisions may exceed sixty per cent in any year for which that portion is
exempted if the average percentage exempted for all years in which the
agreement is in effect does not exceed fifty per cent, or if the board of
education of the city, local, or exempted village school district within the
territory of which the property is or will be located approves a percentage in
excess of sixty per cent. For the purpose of obtaining such approval, the
board of commissioners shall deliver to the board of education a notice
not later than forty-five days prior to approving
the
agreement, excluding Saturdays,
Sundays, and legal holidays as defined in
section 1.14 of the Revised
Code. The notice shall
state the
percentage to be exempted, an estimate of the true value of the property to be
exempted, and the number of years the property is to be exempted. The board
of education, by resolution adopted by a majority of the board, shall approve
or disapprove the agreement and certify a copy of the resolution to the board
of commissioners not later than fourteen days prior to the date stipulated by
the board of commissioners as the date upon which approval of the agreement is
to be formally considered by the board of commissioners. The board of
education may include in the resolution conditions under which the board would
approve the agreement, including the execution of an agreement to compensate
the school district under division (B) of section 5709.82 of the Revised Code.
The board of
county commissioners may approve the agreement at any time after
the board of education certifies its resolution approving the
agreement to the board of county commissioners, or, if the board
of education approves the agreement conditionally, at any time
after the conditions are agreed to by the board of education and
the board of county commissioners. If a board of education has adopted a resolution waiving
its right to approve agreements and the resolution
remains in effect, approval of an agreement by the
board of education is not required under division (C) of this
section. If a board of
education has adopted a resolution allowing a board of county commissioners to
deliver the notice required under this division
fewer than forty-five business days prior to approval
of the agreement by the board of county commissioners, the board of county
commissioners shall deliver the notice to the board of education not later
than
the number of days prior to such approval as prescribed by the
board of education in its resolution. If a board of education adopts a
resolution waiving its right to approve agreements or shortening
the notification period, the board of education shall certify a copy of the
resolution to the board of county commissioners. If the board of
education rescinds such a resolution, it shall certify notice of
the rescission to the board of county commissioners. (2) The board of county commissioners shall comply with section
5709.83 of the Revised
Code unless the board of
education has adopted a resolution under that section waiving
its right to receive such notice. (D) This division applies to zones certified by the director of development
under this section prior to
July 22, 1994. On or before
October 15, 2009, and with the consent of
the legislative
authority of each affected municipal corporation or board of township trustees
of each affected township, the board of commissioners that designated a zone
to which this division applies may enter into an agreement with an enterprise
if the board makes the finding required under that division and determines
that the enterprise satisfies one of the criteria described in divisions
(D)(1) to (5) of this section: (1) The enterprise currently has no operations in this state and, subject to
approval of the agreement, intends to establish operations in the zone; (2) The enterprise currently has operations in this state and, subject to
approval of the agreement, intends to establish operations at a new location
in the zone that would not result in a reduction in the number of employee
positions at any of the enterprise's other locations in this state; (3) The enterprise, subject to approval of the agreement, intends to relocate
operations, currently located in another state, to the zone; (4) The enterprise, subject to approval of the agreement, intends to expand
operations at an existing site in the zone that the enterprise currently
operates; (5) The enterprise, subject to approval of the agreement, intends to relocate
operations, currently located in this state, to the zone, and the director of
development has issued a waiver for the enterprise under division (B) of
section 5709.633 of the Revised Code. The agreement shall require the enterprise to agree to establish, expand,
renovate, or occupy a facility in the zone and hire new employees, or preserve
employment opportunities for existing employees, in return for one or more of
the incentives described in division (B) of this section. (E) All agreements entered into under this section shall be in the form
prescribed under section 5709.631 of the Revised Code. After an agreement
under this section is entered into, if the board of county commissioners
revokes its designation of the zone, or if the director of development revokes
the zone's certification, any entitlements granted under the agreement shall
continue for the number of years specified in the agreement. (F) Except as otherwise provided in this paragraph, an agreement entered into
under this section shall require that the enterprise pay an annual fee equal
to the greater of one per cent of the dollar value of incentives offered under
the agreement or five hundred dollars; provided, however, that if the value of
the incentives exceeds two hundred fifty thousand dollars, the fee shall not
exceed two thousand five hundred dollars. The fee shall be payable to the
board of commissioners once per year for each year the agreement is effective
on the days and in the form specified in the agreement. Fees paid shall be
deposited in a special fund created for such purpose by the board and shall be
used by the board exclusively for the purpose of complying with section
5709.68 of the Revised Code and by the tax incentive review council created
under section 5709.85 of the Revised Code exclusively for the purposes of
performing the duties prescribed under that section. The board may waive or
reduce the amount of the fee charged against an enterprise, but such waiver or
reduction does not affect the obligations of the board or the tax incentive
review council to comply with section 5709.68 or 5709.85 of the Revised Code,
respectively. (G) With the approval of the legislative authority of a municipal corporation
or the board of township trustees of a township in which a zone is designated
under division (A) of this section, the board of county commissioners may
delegate to that legislative authority or board any powers and duties of the
board to negotiate and administer agreements with regard to that zone under
this section. (H) When an agreement is entered into pursuant to this section, the
legislative authority authorizing the agreement shall forward a copy of the
agreement to the director of development and to the tax commissioner within
fifteen days after the agreement is entered into. If any agreement
includes terms not provided for in section 5709.631 of the Revised Code
affecting the revenue of a city, local, or exempted
village school district or causing revenue to be foregone by the district,
including any compensation to be paid to the school district pursuant to
section
5709.82 of the Revised Code, those terms also shall be forwarded
in writing to the director of development along with the copy of the
agreement forwarded under this division. (I) After an agreement is entered into, the enterprise shall file with each
personal property tax return required to be filed, or annual report that is
required to be filed under section 5727.08 of the Revised Code, while the
agreement is in
effect, an informational return, on a form prescribed by the tax commissioner
for that purpose, setting forth separately the property, and related costs and
values, exempted from taxation under the agreement. (J) Enterprises may agree to give preference to residents of the zone within
which the agreement applies relative to residents of this state who do not
reside in the zone when hiring new employees under the agreement. (K) An agreement entered into under this section may include a provision
requiring the enterprise to create one or more temporary internship positions
for students enrolled in a course of study at a school or other educational
institution in the vicinity, and to create a scholarship or provide another
form of educational financial assistance for students holding such a position
in exchange for the student's commitment to work for the enterprise at the
completion of the internship.
(L) The tax commissioner's authority in determining the accuracy of any exemption granted by an agreement entered into under this section is limited to divisions (B)(1)(b)(i) and (ii), (B)(2), (C), and (I) of this section, division (B)(1)(b)(iv) of this section as it pertains to divisions (C)(2)(a), (b), and (c) of section 5709.62 of the Revised Code, and divisions (B)(1) to (10) of section 5709.631 of the Revised Code and, as authorized by law, to enforcing any modification to, or revocation of, that agreement by the board of county commissioners or the director of development or, if the board's powers and duties are delegated under division (G) of this section, by the legislative authority of a municipal corporation or board of township trustees.
Sec. 5709.631. Each agreement entered into under sections
5709.62, 5709.63, and 5709.632 of the Revised Code on or after
April 1, 1994, shall be in writing and shall include all of the
information and statements prescribed by this section.
Agreements may include terms not prescribed by this section, but
such terms shall in no way derogate from the information and
statements prescribed by this section. (A) Each agreement shall include the following
information: (1) The names of all parties to the agreement; (2) A description of the investments to be made by the
applicant enterprise or by another party at the facility whether
or not the investments are exempted from taxation, including
existing or new building size and cost thereof; the value of
machinery, equipment, furniture, and fixtures, including an
itemization of the value of machinery, equipment, furniture, and
fixtures used at another location in this state prior to the
agreement and relocated or to be relocated from that location to
the facility and the value of machinery, equipment, furniture,
and fixtures at the facility prior to the execution of the
agreement that will not be exempted from taxation; the value of
inventory at the facility, including an itemization of the value
of inventory held at another location in this state prior to the
agreement and relocated or to be relocated from that location to
the facility, and the value of inventory held at the facility
prior to the execution of the agreement that will not be exempted
from taxation; (3) The scheduled starting and completion dates of
investments made in building, machinery, equipment, furniture,
fixtures, and inventory; (4) Estimates of the number of employee positions to be
created each year of the agreement and of the number of employee
positions retained by the applicant enterprise due to the
project, itemized as to the number of full-time, part-time,
permanent, and temporary positions; (5) Estimates of the dollar amount of payroll attributable
to the positions set forth in division (A)(4) of this section,
similarly itemized; (6) The number of employee positions, if any, at the
project site and at any other location in the state at the time
the agreement is executed, itemized as to the number of
full-time, part-time, permanent, and temporary positions. (B) Each agreement shall set forth the following
information and incorporate the following statements: (1) A description of real property to be exempted from
taxation under the agreement, the percentage of the assessed
valuation of the real property exempted from taxation, and the
period for which the exemption is granted, accompanied by the
statement: "The exemption commences the first year for which the
real property would first be taxable were that property not
exempted from taxation. No exemption shall commence after
.......... (insert date) nor extend beyond .......... (insert
date)." The tax commissioner shall adopt rules prescribing the
form the description of such property shall assume to
ensure that the property to be exempted from taxation under the
agreement is distinguishable from property that is not to be
exempted under that agreement. (2) A description of tangible personal property to be
exempted from taxation under the agreement, the percentage of the
assessed value of the tangible personal property exempted from
taxation, and the period for which the exemption is granted,
accompanied by the statement: "The minimum investment for tangible personal property to qualify for the exemption is $.......... (insert dollar amount) to purchase machinery and equipment first used in business at the facility as a result of the project, $.......... (insert dollar amount) for furniture and fixtures and other noninventory personal property first used in business at the facility as a result of the project, and $.......... (insert dollar amount) for new inventory. The maximum investment for tangible personal property to qualify for the exemption is $.......... (insert dollar amount) to purchase machinery and equipment first used in business at the facility as a result of the project, $.......... (insert dollar amount) for furniture and fixtures and other noninventory personal property first used in business at the facility as a result of the project, and $.......... (insert dollar amount) for new inventory. The exemption commences the first
year for which the tangible personal property would first be
taxable were that property not exempted from taxation. No
exemption shall commence after tax return year .......... (insert date year) nor
extend beyond tax return year .......... (insert date year). In no instance shall any tangible personal property be exempted from taxation for more than ten return years unless the project that is part of the agreement involves the enrichment and commercialization of uranium or uranium products or the research and development activities related to that enrichment or commercialization, in which case the tangible personal property may be exempted from taxation for up to fifteen return years." No exemption shall be allowed for any type of tangible personal property if the total investment is less than the minimum dollar amount specified for that type of property. If, for a type of tangible personal property, there are no minimum or maximum investment dollar amounts specified in the statement or the dollar amounts are designated in the statement as not applicable, the exemption shall apply to the total cost of that type of tangible personal property first used in business at the facility as a result of the project. The tax commissioner
shall adopt rules prescribing the form the description of such
property shall assume to ensure that the property to be
exempted from taxation under the agreement is distinguishable
from property that is not to be exempted under that agreement. (3) ".......... (insert name of enterprise) shall pay such
real and tangible personal property taxes as are not exempted
under this agreement and are charged against such property and
shall file all tax reports and returns as required by law. If
.......... (insert name of enterprise) fails to pay such taxes or
file such returns and reports, all incentives granted under this
agreement are rescinded beginning with the year for which such
taxes are charged or such reports or returns are required to be
filed and thereafter." (4) ".......... (insert name of enterprise) hereby
certifies that at the time this agreement is executed, ..........
(insert name of enterprise) does not owe any delinquent real or
tangible personal property taxes to any taxing authority of the
State of Ohio, and does not owe delinquent taxes for which
.......... (insert name of enterprise) is liable under Chapter 5727.,
5733., 5735., 5739., 5741., 5743., 5747., or 5753. of the Revised
Code, or, if such delinquent taxes are owed, .......... (insert
name of enterprise) currently is paying the delinquent taxes
pursuant to a delinquent tax contract enforceable
by the State of Ohio or an
agent or instrumentality thereof, has filed a petition in
bankruptcy under 11 U.S.C.A. 101, et seq., or such a petition has
been filed against .......... (insert name of enterprise). For
the purposes of the certification, delinquent taxes are taxes
that remain unpaid on the latest day prescribed for payment
without penalty under the chapter of the Revised Code governing
payment of those taxes." (5) ".......... (insert name of municipal corporation or
county) shall perform such acts as are reasonably necessary or
appropriate to effect, claim, reserve, and maintain exemptions
from taxation granted under this agreement including, without
limitation, joining in the execution of all documentation and
providing any necessary certificates required in connection with
such exemptions." (6) "If for any reason the enterprise zone designation
expires, the Director of the Ohio Department of Development
revokes certification of the zone, or .......... (insert name of
municipal corporation or county) revokes the designation of the
zone, entitlements granted under this agreement shall continue
for the number of years specified under this agreement, unless
.......... (insert name of enterprise) materially fails to
fulfill its obligations under this agreement and ..........
(insert name of municipal corporation or county) terminates or
modifies the exemptions from taxation granted under this
agreement." (7) "If .......... (insert name of enterprise) materially
fails to fulfill its obligations under this agreement, or if
.......... (insert name of municipal corporation or county)
determines that the certification as to delinquent taxes required
by this agreement is fraudulent, .......... (insert name of
municipal corporation or county) may terminate or modify the
exemptions from taxation granted under this agreement." (8) ".......... (insert name of enterprise) shall provide
to the proper tax incentive review council any information
reasonably required by the council to evaluate the enterprise's
compliance with the agreement, including returns or annual reports
filed pursuant
to section 5711.02 or 5727.08 of the Ohio Revised Code if
requested by the
council." (9) ".......... (insert name of enterprise) and ..........
(insert name of municipal corporation or county) acknowledge that
this agreement must be approved by formal action of the
legislative authority of .......... (insert name of municipal
corporation or county) as a condition for the agreement to take
effect. This agreement takes effect upon such approval." (10) "This agreement is not transferable or assignable
without the express, written approval of .......... (insert name
of municipal corporation or county)." (11) "Exemptions from taxation granted under this
agreement shall be revoked if it is determined that
............... (insert name of enterprise), any successor
enterprise, or any related member (as those terms are defined in
section 5709.61 of the Ohio Revised Code) has violated the
prohibition against entering into this agreement under division
(E) of section 3735.671 or section 5709.62, 5709.63, or 5709.632
of the Ohio Revised Code prior to the time prescribed by that
division or either of those sections." The statement described in division (B)(7) of this section
may include the following statement, appended at the end of the
statement: "and may require the repayment of the amount of taxes
that would have been payable had the property not been exempted
from taxation under this agreement." (C) If the director of development had to issue a waiver
under section 5709.633 of the Revised Code as a condition for the
agreement to be executed, the agreement shall include the
following statement: "Continuation of this agreement is subject to the validity
of the circumstance upon which .......... (insert name of
enterprise) applied for, and the Director of the Ohio Department
of Development issued, the waiver pursuant to section 5709.633 of
the Ohio Revised Code. If, after formal approval of this
agreement by .......... (insert name of municipal corporation or
county), the Director or ............. (insert name of municipal
corporation or county) discovers that such a circumstance did not
exist, ........... (insert name of enterprise) shall be deemed to
have materially failed to comply with this agreement." If the director issued a waiver on the basis of the
circumstance described in division (B)(3) of section 5709.633 of
the Ohio Revised Code, the conditions enumerated in divisions
(B)(3)(a)(i) and (ii) or divisions (B)(3)(b)(i) and (ii) of that
section shall be incorporated in the information described in
divisions (A)(2), (3), and (4) of this section.
Sec. 5709.633. (A)(1) Except as otherwise provided in
division (B) of this section, no legislative authority or board
of county commissioners shall enter into an agreement with an
enterprise under division (E) of section 5709.62, division (D) of
section 5709.63, or section 5709.632 of the Revised Code if that
enterprise or a successor enterprise currently has operations at
another location in this state and those operations will be
relocated to an enterprise zone upon or as a result of that
agreement. (2) Except as otherwise provided in division (B) of this
section, if an enterprise subject to an agreement granting an
exemption from taxation under section 5709.62, 5709.63, or
5709.632 of the Revised Code expands its operations or relocates its operations to another location in this state that results in a reduction of its operations at any Ohio location, or discontinues operations at the
project site to which that exemption applies prior to the
expiration of the term of the agreement, no legislative authority
shall enter into an agreement with such an enterprise, a related
member, or a successor enterprise under section 5709.62, 5709.63,
or 5709.632 of the Revised Code prior to five years after the
such expansion, relocation, or discontinuation of operations. The director of development shall
review all agreements entered into under those sections to
determine whether there has been a violation of this paragraph and whether the requirements to be a facility have been met.
If the director discovers there has been a violation of this
paragraph or the requirements to be a facility have not been met, the agreement is void, and all incentives granted
under the agreement shall cease immediately. The director shall
certify to the legislative authority and to the board of
education of the city, local, or exempted village school district
to which operations were relocated that the agreement is void. (B) Divisions (A)(1) and (2) of this section do not apply
if the director of development waives application of those
divisions. The director may waive application of division (A)(1)
of this section if the enterprise or successor enterprise
demonstrates, by documentation satisfactory to the director, that
the relocation was necessitated by or results from one of the
circumstances described in divisions (B)(1) to (3) of this
section, and the director determines that under the circumstance
claimed and in light of the possible relocation issuance of a waiver is absolutely necessary to attract
or retain employment opportunities in this state. The director
may waive application of division (A)(2) of this section, except for the provision that the requirements to be a facility must be met, if the
enterprise, related member, or successor enterprise demonstrates,
by documentation satisfactory to the director, that the
discontinuation of operations was necessitated by or resulted
from one of the circumstances described in divisions (B)(1) to
(3) of this section, and the director determines that under the
circumstance claimed and in light of the possible relocation issuance of a waiver is absolutely necessary
to attract or retain employment opportunities in this state. The circumstance that may be claimed shall be one of the
following: (1) The project site at which operations are or will be
discontinued cannot accommodate expansion plans of the enterprise
due to inadequate land suitable for such expansion. (2) Conditions in the markets in which the enterprise
participates require that the enterprise relocate operations in
order for the enterprise to become or remain competitive in that
market. These conditions include, but are not limited to, any of
the following: (a) New or modified contracts with customers or suppliers,
such as "just-in-time" supply or similar arrangements; (b) Changes in the enterprise's production methods; (c) Loss or impending loss of an existing contract
requires expansion into another market in order to maintain
production levels; (d) Changes in ownership or other changes in control of
the enterprise, or of a controlled group of corporations of which
the enterprise is a subsidiary, that result from a decision on
the part of owners or officers located outside this state. (3) The enterprise currently is subject to a consolidation
of its operations, or such a consolidation is imminent. For
purposes of division (B)(3) of this section, "consolidation"
means an enterprise combines the operations of two or more
existing facilities and one of the following conditions is
satisfied: (a) At least one of the facilities currently is not
located in this state, and the relocation of the operations of
that facility would result in both of the following during the
term of the agreement: (i) The number of employees employed by the enterprise at
its existing facilities in this state to which operations are
relocated increases by not less than twenty-five per cent after
the date the agreement is formally approved by the legislative
authority; (ii) The assessed value of tangible personal property
first used in business at the project site, or the assessed value
of real property constituting the project site, increases by not
less than twenty-five per cent after the date the agreement is
formally approved by the legislative authority. (b) All of the facilities currently are in this state, and
the relocation of the operations of any of those facilities would
result in both of the following during the term of the agreement: (i) The number of employees employed by the enterprise at
its existing facilities in this state to which operations are
relocated increases by not less than twenty-five per cent after
the date the agreement is formally approved by the legislative
authority; (ii) The assessed value of tangible personal property
first used in business at the project site, or the assessed value
of real property constituting the project site, increases by not
less than fifty per cent over the assessed value, determined at
the time of relocation, of tangible personal property located at,
and of real property constituting, the facilities in this state
from which operations would be relocated. For purposes of divisions (B)(3)(a) and (b) of this
section, "assessed value of tangible personal property" and
"assessed value of real property" mean the value of such property
as assessed for purposes of property taxation and entered on the
tax lists and duplicates of the county. (C) To apply for a waiver under division (B) of this
section, the enterprise and the legislative authority intending
to enter into an agreement under section 5709.62, 5709.63, or
5709.632 of the Revised Code shall petition the director of
development in a form acceptable to the director. The petition
shall be accompanied by documentation demonstrating one or more
of the circumstances described in divisions (B)(1), (2), or (3)
of this section. Not later than thirty days after receiving such
a petition, the director shall investigate the petition and
accompanying documentation to determine the validity of the
circumstance claimed therein, and shall issue to the enterprise
and to the legislative authority his the determination, in
writing,
waiving, or refusing to waive application of division (A) of this section.
Sec. 5709.85. (A) The legislative authority of a county,
township, or municipal corporation that grants an exemption from
taxation under Chapter 725. or 1728. or under section 3735.67,
5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73, or 5709.78
of the Revised Code shall create a tax incentive review council.
The council shall consist of the following members: (1) In the case of a municipal corporation eligible to
designate a zone under section 5709.62 of the Revised Code, the
chief executive officer or his that officer's
designee; a member of the
legislative authority of the municipal corporation, appointed by
the president of the legislative authority or, if the chief
executive officer of the municipal corporation is the president,
appointed by the president pro tempore of the legislative
authority; the county auditor or his the county auditor's
designee; the chief
financial officer of the municipal corporation or his that officer's designee; an individual appointed by the board of
education of each city, local, exempted village, and joint vocational school
district to
which the instrument granting the exemption applies; and two
members of the public appointed by the chief executive officer of
the municipal corporation with the concurrence of the legislative
authority. At least four members of the council shall be
residents of the municipal corporation, and at least one of the
two public members appointed by the chief executive officer shall
be a minority. As used in division (A)(1) of this section, a
"minority" is an individual who is African-American, Hispanic, or
Native American. (2) In the case of a county or a municipal corporation
that is not eligible to designate a zone under section 5709.62 or
5709.632 of the Revised Code, three members appointed by the
board of county commissioners; two members from each municipal
corporation to which the instrument granting the tax exemption
applies, appointed by the chief executive officer with the
concurrence of the legislative authority of the respective
municipal corporations; two members of each township to which the
instrument granting the tax exemption applies, appointed by the
board of township trustees of the respective townships; the
county auditor or his the county auditor's designee; and an
individual appointed by
the board of education of each city, local, exempted village, and
joint vocational school district to which the instrument granting
the tax exemption applies. At least two members of the council
shall be residents of the municipal corporations or townships to
which the instrument granting the tax exemption applies. (3) In the case of a township in which improvements are
declared a public purpose under section 5709.73 of the Revised
Code, the board of township trustees; the county auditor or his the
county auditor's designee; and an individual appointed by the board of
education
of each city, local, exempted village, and joint vocational
school district to which the instrument granting the exemption
applies. (B) The legislative authority shall call the first meeting
county auditor or the county auditor's designee shall serve as the chairperson of the council, and at that meeting the council shall select a
chairman and vice-chairman. Thereafter, the. The council shall meet
at the call of the chairman chairperson. At the first meeting of the council, the council shall select a vice-chairperson. Attendance by a
majority of the
members of the council constitutes a quorum to conduct the
business of the council. (C)(1) Annually, the tax incentive review council shall
review all agreements granting exemptions from property taxation
under Chapter 725. or 1728. or under section 3735.671, 5709.62,
5709.63, or 5709.632 of the Revised Code, and any performance or
audit reports required to be submitted pursuant to those
agreements. The review shall include agreements granting such exemptions that were entered into prior to July 22, 1994, that continue to be in force and applicable to the current year's property taxes. With respect to each agreement, the council shall
determine whether the owner of the exempted property has complied
with the agreement, taking and may take into consideration any fluctuations in
the business cycle unique to the owner's business, and, on. On the
basis of such determinations that determination, on or before the first day of September of each year, the council shall submit to the legislative authority
written recommendations for continuation, modification, or
cancellation of the each agreement. (2) Annually, the tax incentive review council shall
review all exemptions from property taxation resulting from the
declaration of public purpose improvements pursuant to section
5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code. The review shall include such exemptions that were granted prior to July 22, 1994, that continue to be in force and applicable to the current year's property taxes. With
respect to each improvement for which an exemption is granted,
the council shall determine the increase in the true value of
parcels of real property on which improvements have been
undertaken as a result of the exemption; the value of
improvements exempted from taxation as a result of the exemption;
and the number of new employees or employees retained on the site
of the improvement as a result of the exemption. Upon the request of a tax incentive review council, the
county auditor, the housing officer appointed pursuant to section
3735.66 of the Revised Code, the owner of a new or remodeled
structure or improvement, and the legislative authority of the
county, township, or municipal corporation granting the exemption
shall supply the council with any information reasonably
necessary for the council to make the determinations required
under division (C) of this section, including returns or reports filed
pursuant to section sections 5711.02, 5711.13, and 5727.08 of the Revised Code. (D) Annually, the tax incentive review council shall
review the compliance of each recipient of a tax exemption under
Chapter 725. or 1728. or section 3735.67, 5709.40, 5709.41,
5709.62, 5709.63, 5709.632, 5709.73, or 5709.78 of the Revised
Code with the nondiscriminatory hiring policies developed by the
county, township, or municipal corporation under section 5709.832
of the Revised Code. Upon the request of the council, the
recipient shall provide the council any information necessary to
perform its review. On the basis of its review, the council may
submit to the legislative authority written recommendations for
enhancing compliance with the nondiscriminatory hiring policies.
(E) A legislative authority that receives from a tax incentive review council written recommendations under division (C)(1) or (D) of this section shall, within sixty days after receipt, hold a meeting and vote to accept, reject, or modify all or any portion of the recommendations. (F) A tax incentive review council may request from the recipient of a tax exemption under Chapter 725. or 1728., or section 3735.67, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73, or 5709.78 of the Revised Code any information reasonably necessary for the council to perform its review under this section. The request shall be in writing and shall be sent to the recipient by certified mail. Within ten days after receipt of the request, the recipient shall provide to the council the information requested.
Sec. 5709.883. (A) The legislative authority of a county
or municipal corporation that grants an exemption from taxation
under section 5709.88 of the Revised Code shall create a tax
incentive review council unless the county has created such a
council under section 5709.85 of the Revised Code. If a council
has been created under that section, that council shall perform
the functions prescribed by this section. The A council created under this section shall
consist of the following members: (1) In the case of For a municipal corporation, the chief
executive officer or his that officer's designee;
a member of the legislative
authority of the municipal corporation, appointed by the
president of the legislative authority or, if the chief executive
officer of the municipal corporation is the president, appointed
by the president pro tempore of the legislative authority; the
county auditor or his the county auditor's designee; the chief
financial officer of
the municipal corporation or his that officer's
designee; an individual
appointed by the board of education of each city, local, exempted
village, and joint vocational school district to which the
instrument granting the exemption applies; and two members of the
public appointed by the chief executive officer of the municipal
corporation with the concurrence of the legislative authority.
At least four members of the council shall be residents of the
municipal corporation. (2) In the case For unincorporated areas of a county, three members appointed by
the board of county commissioners; two members of each township
to which the instrument granting the tax exemption applies,
appointed by the board of township trustees of the respective
townships; the county auditor or his the county auditor's
designee; and an individual
appointed by the board of education of each city, local, exempted
village, and joint vocational school district to which the
instrument granting the tax exemption applies. (B) The legislative authority shall call the first meeting
county auditor or the county auditor's designee shall serve as the chairperson of the council, and at that meeting the council shall select a
chairman and vice-chairman. Thereafter, the. The council shall meet
at the call of the chairman chairperson. At the first meeting of the council, the council shall select a vice-chairperson. Attendance by a
majority of the
members of the council constitutes a quorum to conduct the
business of the council. (C) Annually, the tax incentive review council shall
review all agreements granting exemptions from property taxation
under section 5709.88 of the Revised Code and any performance or
audit reports required to be submitted pursuant to those
agreements. With respect to each agreement, the council shall
determine whether the owner of the exempted property has complied
with the agreement, taking and may take into consideration any fluctuations in
the business cycle unique to the owner's business, and, on. On the
basis of those determinations that determination, on or before the first day of September of each year, the council shall submit to the legislative
authority written recommendations for continuation, modification,
or cancellation of the agreement. Upon the request of a tax incentive review council, the
county auditor and the legislative authority of the county or
municipal corporation granting the exemption shall supply the
council with any information reasonably necessary for the council
to make the determinations required under this division,
including returns or reports filed pursuant to section sections 5711.02, 5711.13, and 5727.08 of the
Revised Code. (D) A legislative authority that receives from a tax incentive review council written recommendations under division (C) of this section shall, within sixty days after receipt, hold a meeting and vote to accept, reject, or modify all or any portion of the recommendations.
(E) A tax incentive review council may request from the recipient of a tax exemption under this section any information reasonably necessary for the council to perform its review under this section. The request shall be in writing and shall be sent to the recipient by certified mail. Within ten days after receipt of the request, the recipient shall provide to the council the information requested.
Sec. 5721.25. All delinquent land upon which the taxes,
assessments, penalties, interest, or charges have become
delinquent may be redeemed before foreclosure proceedings have
been instituted or, if proceedings have been instituted, before
the filing
of an entry of confirmation of sale pursuant to such
proceedings,
by tendering to the county treasurer an amount
sufficient, as determined by the court, to pay the taxes, assessments, penalties, interest,
and
charges then due and unpaid, and the costs incurred in any
proceeding instituted against such land under section
5721.18
Chapter 323. or this chapter of
the Revised Code as determined by the court. After a foreclosure proceeding has been instituted but before a judgment
of
foreclosure has been rendered under Chapter 323. or this chapter of the Revised Code with
respect to delinquent land,
but before the filing of an entry of confirmation of sale pursuant to the proceeding, any person entitled to redeem the land may do so by tendering to the county treasurer an amount sufficient, as determined by the court, to pay the taxes, assessments, penalties, interest, and charges then due and unpaid, and the costs incurred in any proceeding instituted against such land under Chapter 323. or this chapter of the Revised Code, and by demonstrating that the property is in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes. In addition, after a foreclosure proceeding has been instituted, but before the filing of an entry of confirmation of sale pursuant to the proceeding, any person entitled to redeem the land who has not
previously
defaulted on a delinquent tax contract under
section 323.31 of the
Revised Code with respect to that
delinquent land may enter into a
delinquent
tax contract
with the county treasurer
for the payment
of the taxes, assessments, penalties, interest,
and charges found
to be due and unpaid on such land, together with
the costs
incurred in the
proceeding as determined by the court, upon demonstrating that the property is in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes. The
execution of a delinquent tax
contract shall not stop the
prosecution of a proceeding to judgment. The
delinquent tax
contract shall be paid as prescribed
by
section
323.31 of the
Revised Code over a period not to exceed five years after the
date
of the first payment made under the
contract. The delinquent tax contract may be terminated if the court determines that the property is not in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes during the term of the contract. The court shall
retain jurisdiction over the delinquent land until the total
amount set forth in the delinquent tax
contract is paid,
notwithstanding any conveyance of the land to another owner
during
the period that the delinquent tax
contract is outstanding. If any payment under a delinquent tax contract is not
paid
when due, or if the contract is terminated because the property is not in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes, the county treasurer shall, at the time the
payment is
due and unpaid or the contract is terminated, advise the court rendering the
judgment of
foreclosure, and the court shall order such land sold
for the
amount of taxes, assessments, penalties, interest, and
charges
then due and owing on such land in the manner provided in
section
5721.19 of the Revised Code. Upon the receipt of each
payment pursuant to any
delinquent
tax contract, the county
treasurer shall
enter the amount
of such
payment on the tax duplicate,
and, upon request,
shall
give a receipt for the amount paid to the person
paying it. The receipt shall be in
the form prescribed by the
tax commissioner. The portion of the amount tendered under this section
representing taxes,
and penalties and interest thereon, shall
be
apportioned among the several taxing districts in the same
proportion
that the amount of taxes levied by each district
against the delinquent
property in the preceding tax year bears to
the taxes levied by all such
districts against the property in the
preceding tax year. The portion of the
payment representing
assessments and other charges shall be credited to those
items in
the order in which they became due.
Sec. 5722.01. As used in this chapter: (A) "Electing subdivision" means a municipal corporation
that has enacted an ordinance or a township or county that has
adopted a resolution pursuant to section 5722.02 of the Revised
Code for purposes of adopting and implementing the procedures set
forth in this chapter sections 5722.02 to 5722.15 of the Revised Code. (B) "Delinquent lands" and "delinquent vacant lands" have has
the same meanings meaning as in section 5721.01 of the Revised Code, and "delinquent vacant lands" are delinquent lands that are unimproved by any dwelling. (C) "Land reutilization program" means the procedures and
activities concerning the acquisition, management, and
disposition of affected delinquent lands set forth in this
chapter sections 5722.02 to 5722.15 of the Revised Code. (D) "Minimum bid," in the case of a sale of property
foreclosed pursuant to section 323.25 or 5721.18 or foreclosed
and forfeited pursuant to section 5721.14 of the Revised Code,
means a bid in an amount equal to the sum of the taxes,
assessments, charges, penalties, and interest due and payable on
the parcel subsequent to the delivery to the county prosecuting
attorney of the delinquent land or delinquent vacant land tax
certificate or master list of delinquent or delinquent vacant
tracts containing the parcel, and prior to the transfer of the
deed of the parcel to the purchaser following confirmation of
sale, plus the costs of foreclosure or foreclosure and forfeiture
proceedings against the property. (E) "Nonproductive land" means any parcel of delinquent
vacant land with respect to which a foreclosure proceeding
pursuant to section 323.25, a foreclosure proceeding pursuant to
division (A) or (B) of section 5721.18, or a foreclosure and
forfeiture proceeding pursuant to section 5721.14 of the Revised
Code has been instituted; and any parcel of delinquent land with
respect to which a foreclosure proceeding pursuant to section
323.25 or division (A) or (B) of section 5721.18 of the Revised
Code has been instituted, and upon which there are no buildings
or other structures, or upon which there are either: (1) Buildings or other structures that are not in the
occupancy of any person and as to which the township or municipal
corporation within whose boundaries the parcel is situated has
instituted proceedings under section 505.86 or 715.26 of the
Revised Code, or Section 3 of Article XVIII, Ohio Constitution,
for the removal or demolition of such buildings or other
structures by the township or municipal corporation because of
their insecure, unsafe, or structurally defective condition; (2) Buildings or structures that are not in the occupancy
of any person at the time the foreclosure proceeding is initiated
and whose acquisition the municipal corporation, county, or
township determines to be necessary for the implementation of an
effective land reutilization program. (F) "Occupancy" means the actual, continuous, and
exclusive use and possession of a parcel by a person having a
lawful right to such use and possession. (G) "Land within an electing subdivision's boundaries"
does not include land within the boundaries of a municipal
corporation, unless the electing subdivision is the municipal
corporation or the municipal corporation adopts an ordinance that gives consent to the electing subdivision to include such land.
Sec. 5722.02. Any municipal corporation, county, or
township may elect to adopt and implement the procedures set
forth in this chapter sections 5722.02 to 5722.15 of the Revised Code to facilitate the effective reutilization
of nonproductive land situated within its boundaries. Such
election shall be made by ordinance in the case of a municipal
corporation, and by resolution in the case of a county or
township. The ordinance or resolution shall state that the
existence of nonproductive land within its boundaries is such as
to necessitate the implementation of a land reutilization program
to foster either the return of such nonproductive land to tax
revenue generating status or the devotion thereof to public use. An electing subdivision shall promptly deliver certified
copies of such ordinance or resolution to the auditor, treasurer,
and the prosecutor of each county in which the electing
subdivision is situated. On and after the effective date of such
ordinance or resolution, the foreclosure, sale, management, and
disposition of all nonproductive land situated within the
electing subdivision's boundaries shall be governed by the
procedures set forth in this chapter sections 5722.02 to 5722.15 of the Revised Code.
Sec. 5722.21. (A) As used in this section: (1) "Eligible delinquent land" means delinquent land or delinquent vacant land, as defined in section 5721.01 of the Revised Code, included in a delinquent tax list or delinquent vacant land tax list that has been certified delinquent within the meaning of section 5721.03 of the Revised Code, excluding any certificate parcel as defined in section 5721.30 of the Revised Code. (2) "Delinquent taxes" means the cumulative amount of unpaid taxes, assessments, recoupment charges, penalties, and interest charged against eligible delinquent land that became delinquent before transfer of title to a county, municipal corporation, or township under this section. (3) "Foreclosure costs" means the sum of all costs or other charges of publication, service of notice, prosecution, or other proceedings against the land under sections 323.25 to 323.28 or Chapter 5721. of the Revised Code as may pertain to delinquent land or be fairly apportioned to it by the county treasurer. (4) "Tax foreclosure sale" means a sale of delinquent land pursuant to foreclosure proceedings under sections 323.25 to 323.28 or section 5721.14 or 5721.18 of the Revised Code. (5) "Taxing authority" means the legislative authority of any taxing unit, as defined in section 5705.01 of the Revised Code, in which is located a parcel of eligible delinquent land acquired or to be acquired by a county, municipal corporation, or township in which a declaration under division (B) of this section is in effect. (B) The legislative authority of a municipal corporation may declare by ordinance, or a board of county commissioners or board of township trustees may declare by resolution, that it is in the public interest for the county, municipal corporation, or township to acquire tax-delinquent real property within the county, municipal corporation, or township for the public purpose of redeveloping the property or otherwise rendering it suitable for productive, tax-paying use. In any county, municipal corporation, or township in which such a declaration is in effect, the county, municipal corporation, or township may purchase or otherwise acquire title to eligible delinquent land, other than by appropriation, and the title shall pass free and clear of the lien for delinquent taxes as provided in division (D) of this section. The authority granted by this section is supplemental to the authority granted under sections 5722.01 to 5722.15 of the Revised Code. (C) With respect to any parcel of eligible delinquent land purchased or acquired by a county, municipal corporation, or township in which a declaration is in effect under this section, the county, municipal corporation, or township may obtain the consent of each taxing authority for release of any claim on the delinquent taxes and associated costs attaching to that property at the time of conveyance to the county, municipal corporation, or township. Consent shall be obtained in writing, and shall be certified by the taxing authority granting consent or by the fiscal officer or other person authorized by the taxing authority to provide such consent. Consent may be obtained before or after title to the eligible delinquent land is transferred to the county, municipal corporation, or township. The taxing authority of a taxing unit and a county, municipal corporation, or township in which a declaration is in effect under this section may enter into an agreement whereby the taxing authority consents in advance to release of the taxing authority's claim on delinquent taxes and associated costs with respect to all or a specified number of parcels of eligible delinquent land that may be purchased or acquired by the county, municipal corporation, or township for the purposes of this section. The agreement shall provide for any terms and conditions on the release of such claim as are mutually agreeable to the taxing authority and county, municipal corporation, or township, including any notice to be provided by the county, municipal corporation, or township to the taxing authority of the purchase or acquisition of eligible delinquent land situated in the taxing unit; any option vesting in the taxing authority to revoke its release with respect to any parcel of eligible delinquent land before the release becomes effective; and the manner in which notice of such revocation shall be effected. Nothing in this section or in such an agreement shall be construed to bar a taxing authority from revoking its advance consent with respect to any parcels of eligible delinquent land purchased or acquired by the county, municipal corporation, or township before the county, municipal corporation, or township enters into a purchase or other agreement for acquisition of the parcels. (D) The lien for the delinquent taxes and associated costs for which all of the taxing authorities have consented to release their claims under this section is hereby extinguished, and the transfer of title to such delinquent land to the county, municipal corporation, or township shall be transferred free and clear of the lien for such taxes and costs. If a taxing authority does not consent to the release of its claim on delinquent taxes and associated costs, the entire amount of the lien for such taxes and costs shall continue as otherwise provided by law until paid or otherwise discharged according to law. (E) All eligible delinquent land acquired by a county, municipal corporation, or township under this section is real property held for a public purpose and is exempted from taxation until the county, municipal corporation, or township sells or otherwise disposes of property. (F) If a county, municipal corporation, or township sells or otherwise disposes of delinquent land it purchased or acquired and for which all or a portion of a taxing authority's claim for delinquent taxes was released under this section, the net proceeds from such sale or disposition shall be used for such redevelopment purposes the board of county commissioners, the legislative authority of the municipal corporation, or the board of township trustees considers necessary or appropriate.
Sec. 5733.05. As used in this section,
"qualified
research"
means laboratory research, experimental research, and
other
similar types of research; research in developing or
improving a
product; or research in developing or improving the
means of
producing a product. It does not include market
research,
consumer surveys, efficiency surveys, management
studies, ordinary
testing or inspection of materials or products
for quality
control, historical research, or literary research.
"Product" as
used in this paragraph does not include services or
intangible
property. The annual report determines the value of the
issued and
outstanding shares of stock of the taxpayer, which
under division
(A) or divisions (B) and (C) of this
section is the base or
measure
of the franchise tax liability. Such determination shall
be made
as of the date shown by the report to have been the
beginning of
the corporation's annual accounting period that
includes the
first day of January of the tax year. For the
purposes
of this
chapter, the value of the issued and outstanding
shares
of stock
of any corporation that is a financial institution
shall be
deemed to be the value as
calculated in accordance with
division (A) of this
section.
For the purposes of this chapter,
the value of the issued
and outstanding shares of stock of any
corporation that is not a
financial institution shall be deemed to
be the values as
calculated in accordance with divisions
(B) and
(C) of this section.
Except as otherwise required by this section
or section 5733.056 of the Revised Code, the value of a taxpayer's
issued and outstanding shares of stock under division (A) or (C)
of this section does not include any amount
that is treated as a
liability under generally accepted accounting
principles. (A) The total value, as shown by the books of the financial
institution,
of its capital, surplus, whether earned or unearned,
undivided
profits, and reserves
shall be determined as prescribed
by
section 5733.056 of the Revised Code for tax years 1998 and
thereafter. (B) The sum of the corporation's net income during the
corporation's taxable year, allocated or apportioned to
this state
as
prescribed in divisions (B)(1) and (2) of this
section, and
subject to sections 5733.052, 5733.053,
5733.057, 5733.058,
5733.059, and 5733.0510 of the Revised Code: (1) The net nonbusiness income allocated or apportioned to this state as provided by
section 5733.051 of the Revised Code. (2) The amount of Ohio apportioned net business income, which shall be calculated by multiplying the corporation's
net business income by a fraction. The numerator of
the fraction is the
sum of the following
products:
the property
factor multiplied by
twenty, the payroll factor
multiplied by twenty, and the sales
factor
multiplied by sixty. The denominator of
the fraction is
one hundred, provided
that
the denominator shall be reduced by
twenty if the property factor has a denominator of zero,
by twenty
if the payroll factor has a denominator of zero, and
by sixty if
the sales factor has a denominator of zero. The property, payroll, and sales factors shall be determined
as follows, but the numerator and the denominator of the factors shall not include the portion of any property, payroll, and sales otherwise includible in the factors to the extent that the portion relates to, or is used in connection, with, the production of nonbusiness income allocated under section 5733.051 of the Revised Code: (a) The property factor is a fraction computed as follows: The numerator of
the fraction
is the average value of the corporation's real and tangible
personal property owned or rented, and used in the trade or
business in this state during the taxable year, and the
denominator of the fraction is the average value of all the
corporation's
real and tangible personal property owned or
rented, and used in
the trade or business everywhere during such
year. Real and tangible personal property used in the trade or business includes, but is not limited to, real and tangible personal property that the corporation rents, subrents, leases, or subleases to others if the income or loss from such rentals, subrentals, leases, or subleases is business income. There shall be
excluded from the numerator and denominator
of the fraction
the original cost of all of the following
property within Ohio:
property with respect to which a
"pollution control facility"
certificate has been issued pursuant
to section 5709.21 of the
Revised Code; property with respect to
which an
"industrial water
pollution control certificate" has
been issued pursuant to that section or former section
6111.31 of the Revised Code; and
property used exclusively during
the taxable year for qualified
research. (i) Property owned by the corporation is valued at its
original cost. Property rented by the corporation is valued at
eight times the net annual rental rate.
"Net annual rental rate"
means the annual rental rate paid by the corporation less any
annual rental rate received by the corporation from subrentals. (ii) The average value of property shall be determined by
averaging the values at the beginning and the end of the taxable
year, but the tax commissioner may require the averaging of
monthly values during the taxable year, if reasonably required to
reflect properly the average value of the corporation's property. (b) The payroll factor is a fraction computed as follows: The numerator of
the fraction
is the total amount paid in this state during the taxable
year by
the corporation for compensation, and the denominator of
the fraction is
the total compensation paid everywhere by the
corporation during
such year. There shall be excluded from the
numerator and the
denominator of the payroll factor the total
compensation paid in
this state to employees who are primarily
engaged in qualified
research. (i) Compensation means any form of remuneration paid to an
employee for personal services. (ii) Compensation is paid in this state if: (1)(I) the
recipient's service is performed entirely within this state, (2)(II)
the recipient's service is performed both within and without this
state, but the service performed without this state is incidental
to the recipient's service within this state, (3)(III) some of the
service is performed within this state and either the base of
operations, or if there is no base of operations, the place from
which the service is directed or controlled is within this state,
or the base of operations or the place from which the service is
directed or controlled is not in any state in which some part of
the service is performed, but the recipient's residence is in
this
state. (iii) Compensation is paid in this state to any employee
of
a common or contract motor carrier corporation, who performs
the
employee's regularly assigned duties on a motor vehicle
in more
than one
state, in the same ratio by which the mileage traveled by
such
employee within the state bears to the total mileage traveled
by
such employee everywhere during the taxable year. (c) Except as provided in section 5733.059 of the Revised
Code, the The sales
factor is a fraction computed as follows: The Except as provided in this section, the numerator of the fraction
is the
total sales in this state by the corporation during the
taxable
year or part thereof, and the denominator of the fraction is the total sales by
the
corporation everywhere during such year or part thereof. In determining computing the
numerator and denominator of the fraction, the following shall be eliminated from the fraction: receipts and any related gains or losses from the
sale or other disposal of a capital asset or an asset described
in
section 1231 of the Internal Revenue Code shall be eliminated excluded assets; dividends or distributions; and interest or other similar amounts received for the use of, or for the forbearance of the use of, money.
Also, in determining computing the numerator and denominator of the sales
factor, in the case of a reporting corporation owning at least
eighty per cent of the issued and outstanding common stock of one
or more insurance companies or public utilities, except an
electric company and a combined company, and, for tax years 2005 and thereafter, a telephone company,
or owning at
least twenty-five per cent of the
issued and outstanding common
stock of one or more financial
institutions, receipts received by
the reporting corporation from
such utilities, insurance
companies, and financial institutions
shall be eliminated. As used in this division, "excluded assets" means property that is either: intangible property, other than trademarks, trade names, patents, copyrights, and similar intellectual property; or tangible personal property or real property where that property is a capital asset or an asset described in section 1231 of the Internal Revenue Code, without regard to the holding period specified therein.
(i) For the purpose of this section and section 5733.03 of the
Revised Code, sales receipts not eliminated or excluded from the fraction shall be sitused as follows:
Receipts from rents and royalties from real property located in this state shall be sitused to this state.
Receipts from rents and royalties of tangible personal property, to the extent the tangible personal property is used in this state, shall be sitused to this state.
Receipts from the sale of electricity and of electric transmission and distribution services shall be sitused to this state in the manner provided under section 5733.059 of the Revised Code.
Receipts from the sale of real property located in this state shall be sitused to this state.
Receipts from the sale of tangible personal property are in shall be sitused to this
state where if such property is received in this state by the
purchaser. In the case of delivery of tangible personal property
by common carrier or by other means of transportation, the place
at which such property is ultimately received after all
transportation has been completed shall be considered as the
place
at which such property is received by the purchaser.
Direct
delivery in this state, other than for purposes of
transportation,
to a person or firm designated by a purchaser
constitutes delivery
to the purchaser in this state, and direct
delivery outside this
state to a person or firm designated by a
purchaser does not
constitute delivery to the purchaser in this
state, regardless of
where title passes or other conditions of
sale. Except as provided in section 5733.059 of the Revised Code,
sales, (ii) Receipts from all other than sales of tangible personal property, are
in this
state if either:
(i) The income-producing activity is performed solely in
this
state;
(ii) The income-producing activity is performed both
within
and without this state and a greater proportion of the seller's
income-producing activity is
performed within this state than in
any other state, based on costs of performance not eliminated or excluded from the fraction shall be sitused to this state as follows:
Receipts from the sale, exchange, disposition, or other grant of the right to use trademarks, trade names, patents, copyrights, and similar intellectual property shall be sitused to this state to the extent that the receipts are based on the amount of use of that property in this state. If the receipts are not based on the amount of use of that property, but rather on the right to use the property and the payor has the right to use the property in this state, then the receipts from the sale, exchange, disposition, or other grant of the right to use such property shall be sitused to this state to the extent the receipts are based on the right to use the property in this state.
Receipts from the sale of services, and receipts from any other sales not eliminated or excluded from the sales factor and not otherwise sitused under division (B)(2)(c) of this section, shall be sitused to this state in the proportion to the purchaser's benefit, with respect to the sale, in this state to the purchaser's benefit, with respect to the sale, everywhere. The physical location where the purchaser ultimately uses or receives the benefit of what was purchased shall be paramount in determining the proportion of the benefit in this state to the benefit everywhere.
(iii) Income from receipts eliminated or excluded from the sales factor under division (B)(2)(c) of this section shall not be presumed to be nonbusiness income. (d) If the allocation and apportionment provisions of
division (B) of this section do not fairly represent
the extent
of
the taxpayer's business activity in this state, the taxpayer
may
request, which request must be in writing and must accompany
the
report, a timely filed petition for reassessment, or a timely filed
amended report, or the tax commissioner may require, in
respect to
all or any part of the taxpayer's allocated or apportioned base,
if reasonable, any one or more of the following: (i) Separate accounting; (ii) The exclusion of any one or more of the factors; (iii) The inclusion of one or more additional factors
that
will fairly represent the taxpayer's allocated or
apportioned base
in this state. An alternative method will be effective only with approval
by
the tax commissioner. Nothing in this section shall be construed to extend any
statute of limitations set forth in this chapter. (e) The tax commissioner may adopt rules providing for alternative allocation and apportionment methods, and alternative calculations of a corporation's base, that apply to corporations engaged in telecommunications. (C)(1) The total value, as shown on the books of each
corporation that is
not a qualified holding company, of the net
book value of the
corporation's assets less the net carrying
value of its
liabilities, and excluding from the corporation's
assets land
devoted exclusively to agricultural use as of the first
Monday of
June in the corporation's taxable year as
determined by the county
auditor of the county in which the land is located
pursuant to
section 5713.31 of the Revised Code, and making any adjustment required by division (D) of this section. For the purposes of
determining that
total value, any reserves shown on the
corporation's books
shall be considered liabilities or contra
assets, as the case may be, except for any reserves that
are deemed appropriations of
retained earnings under generally
accepted accounting principles. (2) The base upon which the tax is levied under division (C) of section 5733.06 of the Revised Code shall be computed by multiplying the amount determined under division (C)(1) of this section by the fraction determined under divisions (B)(2)(a) to (c) of this section and, if applicable, divisions (B)(2)(d)(ii) and (iii) of this section, and with without regard to section 5733.052 of the Revised Code, but substituting "net worth" for "net income" wherever "net income" appears in division (B)(2)(c) in this section. For purposes of division (C)(2) of this section, the numerator and denominator of each of the fractions shall include the portion of any real and tangible personal property, payroll, and sales, respectively, relating to, or used in connection with the production of, net nonbusiness income allocated under section 5733.051 of the Revised Code. Nothing in this division shall allow any amount to be included in the numerator or denominator more than once. (D)(1) If, on the last day of the taxpayer's
taxable year
preceding the tax year, the taxpayer is a related
member to a
corporation that elects to be a qualifying holding
company for the
tax year beginning after the last day of
the taxpayer's taxable
year, or if, on the last day of the taxpayer's
taxable year
preceding the tax year, a corporation that elects to
be a
qualifying holding company for the tax year
beginning after the
last day of the taxpayer's taxable year is a
related member to the
taxpayer, then the taxpayer's total
value for the purposes of division (C) of this section shall be adjusted by the
qualifying amount. Except as
otherwise provided under division
(D)(2) of this section,
"qualifying amount" means the
amount
that, when added to the
taxpayer's total value, and when
subtracted from the net carrying value of the
taxpayer's
liabilities
computed without regard to division
(C)(2) of this
section,
or when subtracted
from the taxpayer's total value and
when added to the net
carrying value of the taxpayer's liabilities
computed without
regard to division (D) of
this section,
results
in the taxpayer's debt-to-equity ratio equaling the
debt-to-equity ratio of the qualifying controlled group on the
last day of the taxable year ending prior to the first day of
the
tax year
computed on a consolidated basis in accordance with
general
accepted accounting principles. For the purposes of
division
(D)(1) of this section, the corporation's total value,
after the
adjustment required by that division, shall not exceed
the net
book value of the corporation's assets. (2)(a) The amount
added to the taxpayer's total value and
subtracted from
the net carrying value of the taxpayer's
liabilities shall
not exceed the amount of the net carrying value
of the
taxpayer's liabilities owed to the
taxpayer's related
members. (b) A liability owed to the taxpayer's related members
includes,
but
is not limited to, any amount that the corporation
owes to a
person that is not a related member if the corporation's
related member or related members in whole or in part guarantee
any portion or all of that amount, or pledge, hypothecate,
mortgage, or carry out any similar transactions to secure any
portion or all of that amount. (3) The base upon which the tax is levied under division (C)
of
section
5733.06 of the Revised Code shall be computed by
multiplying the amount determined under divisions
(C) and (D)
of this section but without regard to
section 5733.052 of the
Revised Code. (4) For purposes of division
(D) of this section,
"related
member" has the same meaning as in section
5733.042 of the Revised Code.
Sec. 5733.33. (A) As used in this section: (1) "Manufacturing machinery and equipment" means engines
and machinery, and tools and implements, of every kind used, or
designed to be used, in refining and manufacturing.
"Manufacturing machinery and equipment" does not include property
acquired after December 31, 1999, that is used: (a) For the transmission and distribution of electricity; (b) For the generation of electricity, if fifty per cent or more
of the electricity that the property generates is consumed, during the
one-hundred-twenty-month period
commencing with the date the property is placed in service, by
persons that are not related members to the person who generates
the electricity. (2) "New manufacturing machinery and equipment" means
manufacturing machinery and equipment, the
original use in this
state of which commences with the taxpayer or with a partnership
of which the taxpayer is a partner.
"New manufacturing machinery and equipment" does not include
property acquired after December 31, 1999, that is used: (a) For the transmission and distribution of electricity; (b) For the generation of electricity, if fifty per cent or more
of the electricity that the property generates is consumed, during the
one-hundred-twenty-month period
commencing with the date the property is placed in service, by
persons that are not related members to the person who generates
the electricity. (3)(a) "Purchase" has the same meaning as in section
179(d)(2)
of the Internal Revenue Code. (b) For purposes of this section, any
property that is not manufactured or assembled primarily by the taxpayer
is considered purchased at the time the agreement to
acquire the
property becomes binding. Any property that is
manufactured or assembled primarily by the taxpayer is considered purchased at
the time the taxpayer places the property in service in the county for which
the taxpayer will calculate the county excess amount. (c) Notwithstanding section 179(d) of the Internal Revenue
Code, a taxpayer's direct or indirect acquisition of new
manufacturing machinery and equipment is not purchased on or after
July 1, 1995, if the taxpayer, or a person whose relationship to the taxpayer
is described in subparagraphs (A), (B), or (C) of section 179(d)(2) of the
Internal Revenue Code, had directly or
indirectly entered into a binding agreement to acquire the
property at any time prior to July 1, 1995. (4) "Qualifying period" means the period that begins July 1,
1995, and ends December 31, 2005 2015. (5) "County average new manufacturing machinery and
equipment investment" means either of the following: (a) The average annual cost of new
manufacturing machinery and equipment purchased for use in the
county during baseline years, in the case
of a taxpayer that was in existence for more than one
year
during baseline years. (b) Zero, in the case of a taxpayer that was not
in existence for more than one year during baseline
years. (6) "Partnership" includes a limited
liability company formed under Chapter
1705. of the Revised
Code or under the laws of any
other state, provided that the company is not classified for
federal income tax purposes as an association taxable as a
corporation. (7) "Partner" includes a member of a limited liability company formed
under Chapter 1705. of the Revised
Code or under the laws of any
other state, provided that the company is not classified for
federal income tax purposes as an association taxable as a
corporation. (8) "Distressed area" means either a municipal corporation
that has a population of at least fifty thousand or a county
that meets two of the following criteria of economic
distress, or a municipal corporation the majority of the population of which
is situated in such a county: (a) Its average rate of unemployment, during the
most recent five-year period for which data are available, is
equal to at least one hundred twenty-five per cent of the
average rate of unemployment for the United States for the same period; (b) It has a per capita income equal to or below
eighty per cent of the median county per capita income of the
United States as determined by the
most recently available figures from the United
States census bureau; (c)(i) In the
case of a municipal corporation, at least twenty per cent of the
residents have a total income for the most recent census year
that is below the official poverty line; (ii) In the case of a county, in intercensal
years, the county has a ratio of transfer payment income to
total county income equal to or greater than twenty-five
per cent. (9) "Eligible area" means a distressed area, a labor
surplus area, an inner city area, or a situational distress
area. (10) "Inner city area" means, in a municipal corporation
that has a population of at least one hundred thousand and does
not meet the criteria of a labor surplus area or a distressed area, targeted
investment areas established by the municipal corporation within
its boundaries that are comprised of the most recent census
block tracts that individually have at least twenty per cent of
their population at or below the state poverty level
or other census block tracts contiguous to such census block tracts. (11) "Labor surplus area" means an area designated as a
labor surplus area by the United States department of
labor. (12) "Official poverty line" has the same meaning as in
division (A) of section 3923.51 of the Revised Code. (13) "Situational distress area" means a county or a
municipal corporation that has experienced or is experiencing a
closing or downsizing of a major employer, that will adversely
affect the county's or municipal corporation's economy. In
order to be designated as a situational distress area for a
period not to exceed thirty-six months, the county or municipal
corporation may petition the director of
development. The petition shall include written
documentation that demonstrates all of the following adverse effects on the
local economy: (a) The number of jobs lost by the closing or downsizing; (b) The impact that the job loss has on the
county's or municipal corporation's unemployment rate as
measured by the state director of
job and family services; (c) The annual payroll associated with the job loss; (d) The amount of state and local taxes associated with the job loss; (e) The impact that the closing or downsizing has on the suppliers located in
the county or municipal corporation. (14) "Cost" has the same meaning and limitation as in section
179(d)(3) of the Internal Revenue Code. (15) "Baseline years" means: (a) Calendar years 1992, 1993, and 1994, with regard to a credit
claimed for the purchase during calendar year 1995, 1996, 1997, or 1998 of new
manufacturing machinery and equipment; (b) Calendar years 1993, 1994, and 1995, with regard to a credit
claimed for the purchase during calendar year 1999 of new manufacturing
machinery and equipment; (c) Calendar years 1994, 1995, and 1996, with regard to a credit
claimed for the purchase during calendar year 2000 of new manufacturing
machinery and equipment; (d) Calendar years 1995, 1996, and 1997, with regard to a credit
claimed for the purchase during calendar year 2001 of new manufacturing
machinery and equipment; (e) Calendar years 1996, 1997, and 1998, with regard to a credit
claimed for the purchase during calendar year 2002 of new manufacturing
machinery and equipment; (f) Calendar years 1997, 1998, and 1999, with regard to a credit
claimed for the purchase during calendar year 2003 of new manufacturing
machinery and equipment; (g) Calendar years 1998, 1999, and 2000, with regard to a credit
claimed for the purchase during calendar year 2004 of new manufacturing
machinery and equipment; (h) Calendar years 1999, 2000, and 2001, with regard to a credit
claimed for the purchase during calendar year 2005 of new manufacturing
machinery and equipment;
(i) Calendar years 2000, 2001, and 2002, with regard to a credit claimed for the purchase during calendar year 2006 of new manufacturing machinery and equipment;
(j) Calendar years 2001, 2002, and 2003, with regard to a credit claimed for the purchase during calendar year 2007 of new manufacturing machinery and equipment;
(k) Calendar years 2002, 2003, and 2004, with regard to a credit claimed for the purchase during calendar year 2008 of new manufacturing machinery and equipment;
(l) Calendar years 2003, 2004, and 2005, with regard to a credit claimed for the purchase during calendar year 2009 of new manufacturing machinery and equipment;
(m) Calendar years 2004, 2005, and 2006, with regard to a credit claimed for the purchase during calendar year 2010 of new manufacturing machinery and equipment;
(n) Calendar years 2005, 2006, and 2007, with regard to a credit claimed for the purchase during calendar year 2011 of new manufacturing machinery and equipment;
(o) Calendar years 2006, 2007, and 2008, with regard to a credit claimed for the purchase during calendar year 2012 of new manufacturing machinery and equipment;
(p) Calendar years 2007, 2008, and 2009, with regard to a credit claimed for the purchase during calendar year 2013 of new manufacturing machinery and equipment;
(q) Calendar years 2008, 2009, and 2010, with regard to a credit claimed for the purchase during calendar year 2014 of new manufacturing machinery and equipment;
(r) Calendar years 2009, 2010, and 2011, with regard to a credit claimed for the purchase during calendar year 2015 of new manufacturing machinery and equipment. (16) "Related member" has the same meaning as in section
5733.042 of the Revised Code. (B)(1) Subject to division (I) of this section, a
nonrefundable credit is allowed against
the tax imposed by section 5733.06 of the Revised Code for a
taxpayer that purchases
new manufacturing machinery and equipment during the qualifying
period, provided that the new manufacturing machinery and
equipment are installed in this state no later than
December 31, 2006 2016. (2)(a) Except as otherwise provided in division
(B)(2)(b)
of this section, a credit may be claimed under this section in excess of one
million dollars only if the cost of all manufacturing machinery
and equipment owned in this state by the taxpayer claiming the
credit on the last day of the calendar year exceeds the cost of
all manufacturing machinery and equipment owned in this state by
the taxpayer on the first day of that calendar year. As used in division (B)(2)(a) of this
section, "calendar year" means the calendar year in which the machinery and
equipment for which the credit is claimed was purchased. (b) Division (B)(2)(a)
of this section does not apply if the taxpayer claiming the
credit applies for and is issued a waiver of the requirement of
that division. A taxpayer may apply to the director of development for such a
waiver in the manner
prescribed by the director, and the director may issue such a
waiver if the director determines that granting the credit is
necessary to increase or retain employees
in this state, and that the credit
has not caused relocation of manufacturing machinery and
equipment among counties within this state for the primary purpose of
qualifying for the credit. (C)(1) Except as otherwise provided in division (C)(2)
and division (I) of this section, the credit amount
is equal to seven and one-half per cent of the excess of the cost of the new
manufacturing machinery and equipment
purchased during the calendar year for use in a county over the county
average new manufacturing machinery and equipment investment for
that county. (2) Subject to division (I) of this section, as
used in division (C)(2) of
this section "county excess" means the taxpayer's excess cost
for a county as
computed under division (C)(1) of this section. Subject to division (I) of this section, a
taxpayer with a county excess, whose purchases included purchases
for use in any eligible area in the county, the
credit amount is equal to thirteen and one-half per cent of the
cost of the new manufacturing machinery and
equipment purchased during the calendar year for use in the
eligible areas in the county,
provided that the cost subject to the thirteen and one-half per cent rate
shall not exceed the county excess. If the county excess is greater than the
cost of the new manufacturing
machinery and equipment purchased during the calendar
year for use in eligible areas in the county, the credit amount
also shall include an amount equal
to seven and one-half per cent of the amount of the difference. (3) If a taxpayer is allowed a credit for purchases of new manufacturing
machinery and equipment in more than one county or eligible area, it shall
aggregate the amount of those credits each year. (4) The taxpayer shall claim one-seventh of the credit
amount for the tax year immediately following the calendar year
in which the new manufacturing machinery and equipment is
purchased for use in the county by the
taxpayer or partnership. One-seventh of the
taxpayer credit amount is allowed for each of the six ensuing
tax years. Except for carried-forward amounts, the taxpayer is not allowed
any credit amount remaining if the
new manufacturing machinery and equipment is sold by the
taxpayer or partnership or is transferred by the taxpayer or
partnership out of the county before the end of the seven-year
period unless, at the time of the sale or transfer, the new manufacturing
machinery and equipment has been fully depreciated for federal income tax
purposes. (5)(a) A taxpayer that acquires manufacturing machinery
and equipment as a result of a merger with the
taxpayer with whom commenced the original use in this state of
the manufacturing machinery and equipment, or with a taxpayer
that was a partner in a partnership with whom commenced the
original use in this state of the manufacturing machinery and
equipment, is entitled to any remaining or carried-forward
credit amounts to which the taxpayer was entitled. (b) A taxpayer that enters into an agreement under division
(C)(3) of section 5709.62 of the Revised Code and that acquires manufacturing
machinery or equipment as a
result of purchasing a large manufacturing facility, as defined in section
5709.61 of the Revised Code, from another taxpayer with whom commenced the
original use in this
state of the manufacturing machinery or equipment, and that operates the large
manufacturing facility so purchased, is entitled to any remaining or
carried-forward credit amounts to which the other taxpayer who sold the
facility would have been
entitled under this section had the other taxpayer not sold the manufacturing
facility or equipment. (c) New manufacturing machinery and equipment is
not considered sold if a pass-through entity transfers to
another pass-through entity substantially all of its assets as
part of a plan of reorganization under which substantially all
gain and loss is not recognized by the pass-through entity that
is transferring the new manufacturing machinery and equipment to
the transferee and under which the transferee's basis in the new
manufacturing machinery and equipment is determined, in whole or
in part, by reference to the basis of the pass-through entity
which transferred the new manufacturing machinery and equipment
to the transferee. (d) Division (C)(5) of this section shall apply only if
the acquiring taxpayer or transferee does not sell
the new manufacturing machinery and equipment or transfer the
new manufacturing machinery and equipment out of the county
before the end of the seven-year period to which division
(C)(4) of this section refers. (e) Division (C)(5)(b)
of this section applies only to the extent that the taxpayer that sold the
manufacturing machinery or equipment, upon request, timely
provides to the tax commissioner any information that the tax
commissioner considers to be necessary to ascertain any
remaining or carried-forward amounts to which the taxpayer that
sold the facility would have been entitled under this section
had the taxpayer not sold the manufacturing machinery or
equipment. Nothing in division (C)(5)(b)
or (e) of this section shall be construed to allow
a taxpayer to claim any credit amount with respect to the
acquired manufacturing machinery or equipment that is greater
than the amount that would have been available to the other
taxpayer that sold the manufacturing machinery or equipment had
the other taxpayer not sold the manufacturing machinery or
equipment. (D) The taxpayer shall claim the
credit in the order required under section 5733.98 of the
Revised Code. Each year, any credit
amount in excess of the tax due under section 5733.06
of the Revised Code after
allowing for any other credits that precede the credit under
this section in that order may be carried forward for three
tax years. (E) A taxpayer purchasing new
manufacturing machinery and equipment and intending to claim the
credit shall file, with the department of development, a notice
of intent to claim the credit on a form prescribed by the
department of development. The department of development shall
inform the tax commissioner of the notice of intent to claim the
credit. (F) The director of development shall annually
certify, by the first day of January of each
year during the qualifying period, the eligible areas for the
tax credit for the calendar year that includes that first day of
January. The director shall
send a copy of the certification to the tax commissioner. (G) New manufacturing machinery and equipment for which a
taxpayer claims the credit under
section 5733.31, 5733.311, 5747.26,
or 5747.261 of the Revised Code shall
not be considered new manufacturing machinery and equipment for purposes of
the credit under this section. (H)(1) Notwithstanding sections 5733.11 and 5747.13 of
the Revised Code, but subject to division (H)(2) of
this section,
the tax commissioner may issue an assessment against a person with respect to
a credit claimed under this section for new manufacturing machinery and
equipment described in division (A)(1)(b) or
(2)(b) of this section, if
the machinery or equipment subsequently does
not qualify for the credit. (2) Division (H)(1) of this section shall not apply after
the
twenty-fourth month following the last day of the period described in
divisions (A)(1)(b) and (2)(b) of
this
section. (I) Notwithstanding any other provision of this
section to the contrary, in the case of a qualifying controlled
group, the credit available under this
section to a taxpayer or taxpayers in the
qualifying controlled group shall be computed as if all
corporations in the group
were a
single corporation. The credit shall be allocated to
such a taxpayer or
taxpayers in the group in any amount elected for the
taxable year by the group. Such election shall be revocable and amendable
during the
period
described in division (B) of section 5733.12 of the Revised Code. This division applies to all purchases of new manufacturing
machinery and equipment made on or after January 1, 2001, and to
all baseline years used to compute any credit attributable to such
purchases; provided, that this division may be applied solely at
the election of the qualifying controlled group with respect to
all purchases of new manufacturing machinery and equipment made
before that date, and to all baseline years used to compute any
credit attributable to such purchases. The qualifying controlled
group at any time may elect to apply this division to purchases
made prior to January 1, 2001, subject to the following: (1) The election is irrevocable; (2) The election need not accompany a timely filed report, but
the election may accompany a subsequently filed but timely application
for refund, a subsequently filed but timely amended report, or a
subsequently filed but timely petition for reassessment.
Sec. 5735.01. As used in this chapter: (A) "Motor vehicles" includes all vehicles, vessels,
watercraft, engines, machines, or mechanical contrivances which
are powered by internal combustion engines or motors. (B) "Motor fuel" means gasoline, diesel fuel, K-1
kerosene, or any other liquid motor fuel, including, but not limited to,
liquid petroleum gas or liquid natural gas, but excluding substances
prepackaged and sold in containers of five gallons or less. (C) "K-1 Kerosene" means fuel that conforms to the
chemical
and physical standards for kerosene no. 1-K as set forth in
the
american society for testing and materials (ASTM) designated
D-3699 "standard for specification for kerosene," as that standard
may be modified from time to time.
For purposes of inspection and testing, laboratory analysis
shall be conducted using methods recognized by the ASTM
designation D-3699. (D) "Diesel fuel" means
any liquid fuel capable of use in discrete form or as a blend
component in the operation of engines of the diesel type, including
transmix when mixed with diesel fuel. (E) "Gasoline" means any
of the following: (1) All products, commonly or commercially known or sold
as gasoline; (2) Any blend stocks or additives, including
alcohol,
that are sold for blending with gasoline, other than products
typically sold in containers of five gallons or less; (3) Transmix when mixed with gasoline, unless certified, as required
by the
tax commissioner, for withdrawal from terminals for reprocessing at
refineries; (4) Alcohol that is offered for sale or sold for use as, or
commonly and commercially used as, a fuel for internal
combustion engines. Gasoline does not include diesel fuel, commercial or
industrial napthas or solvents manufactured, imported, received,
stored, distributed, sold, or used exclusively for purposes
other than as a motor fuel for a motor vehicle or vessel. The
blending of any of the products listed in the preceding
sentence, regardless of name or characteristics, is conclusively presumed to
have been done to produce gasoline,
unless the product obtained by the blending is entirely
incapable for use as fuel to operate a motor vehicle. An
additive, blend stock, or alcohol is presumed to be sold for
blending unless a certification is obtained as required by the
tax commissioner. (F) "Public highways" means lands and lots over which the
public, either as user or owner, generally has a right to pass,
even though the same are closed temporarily by the authorities
for the purpose of construction, reconstruction, maintenance, or
repair. (G) "Waters within the boundaries of this state" means all
streams, lakes, ponds, marshes, water courses, and all other
bodies of surface water, natural or artificial, which are
situated wholly or partially within this state or within its
jurisdiction, except private impounded bodies of water. (H) "Person" includes
individuals, partnerships,
firms, associations, corporations, receivers, trustees in
bankruptcy, estates, joint-stock companies, joint ventures, the state and its
political subdivisions, and any combination of persons of any form. (I)(1) "Motor fuel
dealer" means any person who satisfies any of the following: (a) The person imports from another state or foreign country or
acquires motor fuel by any means into a terminal in this state; (b) The person imports motor fuel from another state or foreign
country in bulk lot vehicles for subsequent sale and
distribution in this state from bulk lot vehicles; (c) The person refines motor fuel in this state; (d) The person acquires motor fuel from a motor fuel dealer for
subsequent sale and distribution by that person in this state
from bulk lot vehicles; (e) The person possesses an unrevoked permissive motor fuel
dealer's license. (2) Any person who obtains dyed diesel fuel for use other than the
operation of motor vehicles upon the public highways or upon
waters within the boundaries of this state, but later uses that
motor fuel for the operation of motor vehicles upon the public
highways or upon waters within the boundaries of this state, is deemed a motor
fuel dealer as regards any unpaid motor fuel taxes levied
on the motor fuel so used. (J) As used in sections
5735.05, 5735.25, 5735.29, and 5735.30 of the
Revised
Code only: (1) With respect to gasoline, "received" or "receipt" shall be construed
as follows: (a) Gasoline produced at a refinery in this state or delivered to
a terminal in this state is deemed received when it is disbursed through a
loading rack at that refinery or terminal; (b) Except as provided in division
(J)(1)(a) of this section, gasoline imported into
this state or purchased or
otherwise acquired in this state by any person is deemed
received within this state by that person when the gasoline is
withdrawn from the container in which it was transported; (c) Gasoline delivered or disbursed by any means from a terminal
directly to another terminal is not deemed received. (2) With respect to motor fuel other than gasoline,
"received" or "receipt" means distributed or sold for use or used to generate
power for the operation of motor vehicles upon the public highways or upon
waters within the boundaries of this state. All diesel fuel that is not dyed
diesel fuel, regardless of its use, shall be considered as used to generate
power for the operation of motor vehicles upon the public highways or upon
waters within the boundaries of this state when the fuel is sold or
distributed to a person other than a licensed motor fuel dealer or to a person
licensed under section 5735.026 of the Revised Code. (K) Motor fuel used for the
operation of licensed
motor vehicles employed in the maintenance, construction, or
repair of public highways is deemed to be used for the
operation of motor vehicles upon the public highways. (L) "Licensed motor fuel dealer"
means any dealer possessing an
unrevoked motor fuel dealer's license issued by the tax commissioner as
provided in
section 5735.02 of the Revised Code. (M) "Licensed retail dealer" means any retail dealer
possessing an unrevoked retail dealer's license issued by the tax commissioner
as provided in section 5735.022 of the Revised Code. (N) "Cents per gallon rate" means the amount computed
by
the tax commissioner under section 5735.011 of the Revised Code
that is used to determine that portion of the tax levied by
section 5735.05 of the Revised Code that is computed in the
manner prescribed by division (B)(2) of section 5735.06 of the
Revised Code and that is applicable for the period that begins on
the first day of July following the date on which the
commissioner makes the computation. (O) "Retail dealer"
means any person that sells or distributes
motor fuel at a retail service station located in
this state. (P) "Retail service station" means a location from
which motor fuel is sold to the general public and is dispensed or pumped
directly into motor vehicle fuel tanks for consumption. (Q) "Transit bus" means a motor vehicle having a seating
capacity of more than ten persons which that is operated for public
transit or paratransit service on a regular and continuing basis
within the state by or for a county, a municipal corporation, a
county transit board pursuant to sections 306.01 to 306.13 of the
Revised Code, a regional transit authority pursuant to sections
306.30 to 306.54 of the Revised Code, or a regional transit
commission pursuant to sections 306.80 to 306.90 of the Revised
Code. Public transit or paratransit service may include fixed
route, demand-responsive, or subscription bus service
transportation, but does not include shared-ride taxi service,
carpools, vanpools, jitney service, school bus transportation, or
charter or sightseeing services. (R) "Export" means motor
fuel delivered outside this state. Motor fuel delivered outside this state
by or for the seller constitutes an export by the seller. Motor
fuel delivered outside this state by or for the purchaser constitutes
an export by the purchaser. (S) "Import" means motor
fuel delivered into this state from outside this state. Motor fuel
delivered into this state from outside this state by or for the seller
constitutes an import by the seller. Motor fuel delivered into
this state from outside this state by or for the purchaser constitutes
an import by the purchaser. (T) "Terminal" means a
motor fuel storage or distribution facility that is supplied by
pipeline or marine vessel. (U) "Consumer" means a
buyer of motor fuel for purposes other than resale in any form. (V) "Bulk lot vehicle"
means railroad tank cars, transport tank trucks and tank wagons
with a capacity of at least 1,400 gallons. (W) "Licensed permissive
motor fuel dealer" means any person possessing an unrevoked
permissive motor fuel dealer's license issued by the
tax commissioner under section 5735.021 of the
Revised Code. (X) "Licensed terminal operator" means
any person possessing an unrevoked terminal operator's license
issued by the tax commissioner under section 5735.026 of the
Revised Code. (Y) "Licensed exporter" means any
person possessing an unrevoked exporter's license issued by the
tax commissioner under section 5735.026 of the
Revised Code. (Z) "Dyed diesel fuel" means any diesel fuel dyed
pursuant to regulations issued by the internal revenue service
or a rule promulgated by the tax commissioner. (AA) "Gross gallons" means U.S. gallons without
temperature or barometric adjustments. (BB) "Net gallons" means U.S. gallons with a
temperature adjustment to sixty degrees fahrenheit.
Sec. 5747.01. Except as otherwise expressly provided or
clearly appearing from the context, any term used in this chapter
has the same meaning as when used in a comparable context in the
Internal Revenue Code, and all other statutes of the United
States
relating to federal income taxes. As used in this chapter: (A) "Adjusted gross income" or "Ohio adjusted gross
income"
means
federal adjusted gross income, as defined and used in the
Internal
Revenue Code, adjusted as provided in this section: (1) Add interest or dividends on obligations or securities
of any state or of any political subdivision or authority of any
state, other than this state and its subdivisions and authorities. (2) Add interest or dividends on obligations of any
authority, commission, instrumentality, territory, or possession
of the United States
to the extent that
the interest or dividends
are exempt from federal income taxes
but
not from state income
taxes. (3) Deduct interest or dividends on obligations of the
United States and its territories and possessions or of any
authority, commission, or instrumentality of the United States to
the extent
that the interest or dividends are included in federal
adjusted gross income but exempt
from state income taxes under the
laws of the United States. (4) Deduct disability and survivor's benefits to the
extent
included in federal adjusted gross income. (5) Deduct benefits under Title II of the Social Security
Act and tier 1 railroad retirement benefits to the extent
included
in federal adjusted gross income under section 86 of the
Internal
Revenue Code. (6)
In the case of a taxpayer who is a beneficiary of
a
trust that makes an accumulation distribution as defined in
section 665 of the Internal Revenue Code,
add, for the
beneficiary's taxable years
beginning before 2002 or after 2004,
the portion, if
any, of
such distribution
that does not exceed the
undistributed
net
income of the trust for
the three taxable years
preceding the
taxable year in which the
distribution is made
to
the extent that the portion was not included in the trust's
taxable income for any of the trust's taxable years beginning in
2002, 2003, or 2004.
"Undistributed
net
income of a trust" means
the taxable income of
the trust
increased
by (a)(i) the additions
to adjusted gross
income
required under
division (A) of this
section and (ii) the
personal
exemptions
allowed to the trust
pursuant to section
642(b) of the
Internal
Revenue Code, and
decreased by (b)(i) the
deductions to
adjusted
gross income
required under division (A) of
this
section,
(ii) the
amount of
federal income taxes attributable
to
such
income, and
(iii) the
amount of taxable income that has
been
included in the
adjusted
gross income of a beneficiary by
reason
of a prior
accumulation
distribution. Any undistributed
net
income included
in the
adjusted gross income of a beneficiary
shall reduce the
undistributed net income of the trust commencing
with the earliest
years of the accumulation period. (7) Deduct the amount of wages and salaries, if any, not
otherwise allowable as a deduction but that would have been
allowable as a deduction in computing federal adjusted gross
income for the taxable year, had the targeted jobs credit allowed
and determined under sections 38, 51, and 52 of the Internal
Revenue Code not been in effect. (8) Deduct any interest or interest equivalent on public
obligations and purchase obligations to the extent
that the
interest or interest equivalent is included in
federal adjusted
gross income. (9) Add any loss or deduct any gain resulting from the
sale,
exchange, or other disposition of public obligations to the
extent
that the loss has been deducted or the gain has been
included in
computing federal adjusted gross income. (10)
Deduct or add amounts, as provided under section
5747.70 of the
Revised
Code, related to contributions to variable
college savings program
accounts made or tuition credits purchased
pursuant to Chapter
3334. of the Revised Code. (11)(a) Deduct, to the extent not otherwise allowable as a
deduction or
exclusion in computing federal or Ohio adjusted gross
income for the taxable
year, the amount the taxpayer paid during
the taxable year for medical care
insurance and qualified
long-term care insurance for the taxpayer, the
taxpayer's spouse,
and dependents. No deduction for medical care insurance
under
division (A)(11) of this section shall be allowed either to any
taxpayer
who is eligible to participate in any subsidized health
plan maintained by any
employer of the taxpayer or of the
taxpayer's spouse, or to any taxpayer who
is entitled to, or on
application would be entitled to, benefits under part A of Title
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.
301, as amended. For the purposes of division (A)(11)(a) of this
section, "subsidized health plan" means a health plan for which
the employer pays any portion of the plan's cost. The deduction
allowed under division (A)(11)(a) of this section shall be the net
of any related premium refunds, related premium reimbursements, or
related insurance premium dividends received during the taxable
year. (b) Deduct, to the extent not otherwise deducted or excluded
in
computing federal or Ohio adjusted gross income during the
taxable
year, the amount the taxpayer paid during the taxable
year, not
compensated for by any insurance or otherwise, for
medical care of
the taxpayer, the taxpayer's spouse, and
dependents, to the extent
the expenses exceed seven and one-half
per cent of the taxpayer's
federal adjusted gross income. (c) For purposes of division (A)(11) of this section,
"medical
care" has the meaning given in section 213 of the
Internal Revenue
Code, subject to the special rules, limitations,
and exclusions
set forth therein, and "qualified long-term care"
has the same
meaning given in section 7702(B)(b) of the Internal
Revenue Code. (12)(a) Deduct any amount included in federal adjusted gross
income solely because the amount represents a reimbursement or
refund of expenses that in any year the taxpayer had
deducted as
an itemized deduction pursuant to section 63 of the
Internal
Revenue Code and applicable United States
department of the
treasury regulations.
The deduction otherwise allowed under
division (A)(12)(a) of this section shall be reduced to the extent
the reimbursement is attributable to an amount the taxpayer
deducted under this section in any taxable year. (b) Add any amount not otherwise included in Ohio adjusted
gross
income for any taxable year to the extent that the amount is
attributable to the recovery during the taxable year of any amount
deducted or excluded in computing federal or Ohio adjusted gross
income in any taxable year. (13) Deduct any portion of the deduction described in
section 1341(a)(2) of the Internal Revenue Code, for repaying
previously reported income received under a claim of right, that
meets both of the following requirements: (a) It is allowable for repayment of an item that was
included in the taxpayer's adjusted gross income for a prior
taxable year and did not qualify for a credit under division (A)
or (B) of section 5747.05 of the Revised Code for that year; (b) It does not otherwise reduce the taxpayer's adjusted
gross income for the current or any other taxable year. (14) Deduct an amount equal to the deposits made to, and
net
investment earnings of, a medical savings account during the
taxable year,
in accordance with section 3924.66 of the Revised
Code. The deduction
allowed by division (A)(14) of this section
does not apply to medical
savings account deposits and earnings
otherwise deducted or excluded for the
current or any other
taxable year from the taxpayer's federal adjusted gross
income. (15)(a) Add an amount equal to the funds withdrawn from a
medical
savings account during the taxable year, and the net
investment earnings on
those funds, when the funds withdrawn were
used for any purpose other than to
reimburse an account holder
for, or to pay, eligible medical expenses, in
accordance with
section 3924.66 of the Revised Code; (b) Add the amounts distributed from a medical savings
account
under division (A)(2) of section 3924.68 of the Revised
Code during the
taxable year. (16) Add any amount claimed as a credit under section
5747.059 of the Revised
Code to the extent that such amount
satisfies either of the following: (a) The amount was deducted or excluded from the computation
of the
taxpayer's federal adjusted gross income as required to be
reported for the
taxpayer's taxable year under the Internal
Revenue Code; (b) The amount resulted in a reduction of the taxpayer's
federal adjusted
gross income as required to be reported for any
of the taxpayer's taxable
years under the Internal Revenue Code. (17) Deduct the amount contributed by the taxpayer to an
individual development account program established by a county
department of
job and family services pursuant to sections 329.11
to
329.14 of the Revised Code for
the purpose of matching funds
deposited by program participants. On request
of
the tax
commissioner, the taxpayer shall provide any information that, in
the
tax commissioner's opinion, is necessary to establish the
amount deducted
under
division (A)(17) of this section. (18) Beginning in taxable year 2001, if the taxpayer is
married
and files a joint return and the
combined federal adjusted
gross income of the taxpayer and the taxpayer's
spouse for the
taxable year does not exceed one hundred thousand dollars, or
if
the taxpayer is single and has a federal adjusted gross income for
the
taxable
year not exceeding fifty thousand dollars, deduct
amounts paid during the
taxable year for qualified tuition and
fees paid to an eligible institution
for the taxpayer, the
taxpayer's spouse, or any dependent of the taxpayer, who
is a
resident of this state and is enrolled in or attending a program
that
culminates in a degree or diploma at an eligible institution.
The deduction
may be claimed only to the extent that qualified
tuition and fees are not
otherwise deducted or excluded for any
taxable year from federal or
Ohio adjusted gross income. The
deduction
may not be claimed for educational expenses for which
the taxpayer claims a
credit under section 5747.27 of the Revised
Code. (19) Add any reimbursement received during the taxable year
of any amount
the taxpayer deducted under division (A)(18) of this
section in any
previous taxable year to the extent the amount is
not otherwise included in
Ohio adjusted gross income.
(20)(a)(i) Add five-sixths of the amount of depreciation
expense allowed by subsection (k) of section 168 of the Internal
Revenue Code, including the taxpayer's proportionate or
distributive share of the amount of depreciation expense allowed
by that subsection to a pass-through entity in which the taxpayer
has a direct or indirect ownership interest. (ii) Add five-sixths of the amount of qualifying section 179 depreciation expense, including a person's proportionate or distributive share of the amount of qualifying section 179 depreciation expense allowed to any pass-through entity in which the person has a direct or indirect ownership. For the purposes of this division, "qualifying section 179 depreciation expense" means the difference between (I) the amount of depreciation expense directly or indirectly allowed to the taxpayer under section 179 of the Internal Revenue Code, and (II) the amount of depreciation expense directly or indirectly allowed to the taxpayer under section 179 of the Internal Revenue Code as that section existed on December 31, 2002.
The tax
commissioner, under procedures established by the commissioner,
may waive the add-backs related to a pass-through entity if the
taxpayer owns, directly or indirectly, less than five per cent of
the pass-through entity. (b) Nothing in division (A)(20) of this section shall be
construed to adjust or modify the adjusted basis of any asset. (c) To the extent the add-back required under division
(A)(20)(a) of this section is attributable to property generating
nonbusiness income or loss allocated under section 5747.20 of the
Revised Code, the add-back shall be sitused to the same location
as the nonbusiness income or loss generated by the property for
the purpose of determining the credit under division (A) of
section 5747.05 of the Revised Code. Otherwise, the add-back
shall be apportioned, subject to one or more of the four
alternative methods of apportionment enumerated in section 5747.21
of the Revised Code. (d) For the purposes of division (A) of this section, net operating loss carryback and carryforward shall not include five-sixths of the allowance of any net operating loss deduction carryback or carryforward to the taxable year to the extent such loss resulted from depreciation allowed by section 168(k) of the Internal Revenue Code and by the qualifying section 179 depreciation expense amount. (21)(a) If the taxpayer was required to add an amount under
division (A)(20)(a) of this section for a taxable year, deduct
one-fifth of the amount so added for each of the five succeeding
taxable years. (b) If the amount deducted under division (A)(21)(a) of
this
section is attributable to an add-back allocated under
division
(A)(20)(c) of this section, the amount deducted shall be
sitused
to the same location. Otherwise, the add-back shall be
apportioned using the apportionment factors for the taxable year
in which the deduction is taken, subject to one or more of the
four alternative methods of apportionment enumerated in section
5747.21 of the Revised Code. (c) No deduction is available under division (A)(21)(a) of this section with regard to any depreciation allowed by section 168(k) of the Internal Revenue Code and by the qualifying section 179 depreciation expense amount to the extent that such depreciation resulted in or increased a federal net operating loss carryback or carryforward to a taxable year to which division (A)(20)(d) of this section does not apply. (B) "Business income" means income, including gain or loss,
arising from
transactions, activities, and sources in the regular
course of a
trade or business and includes income, gain, or loss
from
real property, tangible
property, and
intangible
property if
the acquisition, rental,
management, and
disposition
of the
property constitute integral
parts of the
regular course of
a
trade or business operation.
"Business income"
includes income,
including gain or loss, from a
partial or
complete liquidation of
a business, including, but not
limited to,
gain or loss from the
sale or other disposition of
goodwill. (C) "Nonbusiness income" means all income other than
business income and may include, but is not limited to,
compensation, rents and royalties from real or tangible personal
property, capital gains, interest, dividends and distributions,
patent or copyright royalties, or lottery winnings, prizes, and
awards. (D) "Compensation" means any form of remuneration paid to
an
employee for personal services. (E) "Fiduciary" means a guardian, trustee, executor,
administrator, receiver, conservator, or any other person acting
in any fiduciary capacity for any individual, trust, or estate. (F) "Fiscal year" means an accounting period of twelve
months ending on the last day of any month other than December. (G) "Individual" means any natural person. (H) "Internal Revenue Code" means the "Internal Revenue
Code
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. (I) "Resident" means
any of the following, provided that
division (I)(3) of this section applies only to taxable years of a
trust beginning in 2002, 2003, or 2004: (1) An individual who is domiciled in this state, subject
to
section 5747.24 of the Revised Code; (2) The estate of a decedent who at the time of death
was
domiciled in this state. The domicile tests of section
5747.24 of
the Revised Code and any election under section
5747.25 of the
Revised Code are not controlling for purposes of
division (I)(2)
of this section.
(3)
A
trust that, in whole or part, resides in this state.
If
only part of a trust resides in this state, the trust is a
resident only with respect to that part. For the purposes of
division (I)(3) of this section: (a) A trust resides in this state
for the trust's current
taxable year to
the extent, as described in division (I)(3)(d) of
this section, that
the trust consists directly or indirectly,
in whole or
in part,
of assets, net of any related
liabilities, that were
transferred, or caused to be transferred,
directly or indirectly,
to the trust by any of the following:
(i) A person, a court, or a governmental
entity or instrumentality on account of the death of a decedent, but only if the trust is described in division (I)(3)(e)(i)
or (ii) of this section; (ii) A person who
was domiciled in this state
for the purposes of
this chapter when the person directly or indirectly transferred
assets to an irrevocable trust, but only if at least one of the
trust's qualifying beneficiaries is domiciled in this state for
the purposes of this chapter during all or some portion of the
trust's current taxable year; (iii) A person who was domiciled in this state
for the
purposes of this chapter when the trust
document or instrument
or
part of the trust
document or instrument became irrevocable, but
only if at least
one
of
the trust's qualifying beneficiaries is a resident domiciled in
this state for the purposes of
this chapter
during all or some
portion of the trust's current taxable year.
(b) A trust is
irrevocable to
the extent that the transferor is not
considered to
be the owner
of the net assets of the trust under sections 671 to
678 of the
Internal
Revenue Code. (c) With respect to a trust other than a charitable lead
trust, "qualifying beneficiary" has the same meaning as "potential
current beneficiary" as defined in section 1361(e)(2) of the
Internal Revenue Code, and with respect to a charitable lead trust
"qualifying beneficiary" is any current, future, or contingent
beneficiary, but with respect to any trust "qualifying
beneficiary" excludes a person or a governmental entity or
instrumentality to any of which a contribution would qualify for
the charitable deduction under section 170 of the Internal Revenue
Code.
(d) For the purposes of division (I)(3)(a) of this section,
the extent to which a trust consists directly or indirectly, in
whole or in part, of assets, net of any related liabilities, that
were transferred directly or indirectly, in whole or part, to the
trust by any of the sources enumerated in that division shall be
ascertained by multiplying the fair market value of the trust's
assets, net of related liabilities, by the qualifying ratio, which
shall be computed as follows:
(i) The first time the trust receives assets, the numerator
of the qualifying ratio is the fair market value of those assets
at that time, net of any related liabilities, from sources
enumerated in division (I)(3)(a) of this section. The denominator
of the qualifying ratio is the fair market value of all the
trust's assets at that time, net of any related liabilities.
(ii) Each subsequent time the trust receives assets, a
revised qualifying ratio shall be computed. The numerator of the
revised qualifying ratio is the sum of (1) the fair market value
of the trust's assets immediately prior to the subsequent
transfer, net of any related liabilities, multiplied by the
qualifying ratio last computed without regard to the subsequent
transfer, and (2) the fair market value of the subsequently
transferred assets at the time transferred, net of any related
liabilities, from sources enumerated in division (I)(3)(a) of this
section. The denominator of the revised qualifying ratio is the
fair market value of all the trust's assets immediately after the
subsequent transfer, net of any related liabilities.
(e) For the purposes of division (I)(3)(a)(i) of this
section:
(i) A trust is described in division (I)(3)(e)(i) of this
section if the trust is a testamentary trust and the testator of
that testamentary trust was domiciled in this state at the time of
the testator's death for purposes of the taxes levied under
Chapter 5731. of the Revised Code.
(ii) A trust is described in division (I)(3)(e)(ii) of this
section if the transfer is a qualifying transfer described in any
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an
irrevocable inter vivos trust, and at least one of the trust's
qualifying beneficiaries is domiciled in this state for purposes
of this chapter during all or some portion of the trust's current
taxable year.
(f) For the purposes of division (I)(3)(e)(ii) of this
section, a "qualifying transfer" is a transfer of assets, net of
any related liabilities, directly or indirectly to a trust, if the
transfer is described in any of the following:
(i) The transfer is made to a trust, created by the
decedent before the decedent's death and while the decedent was
domiciled in this state for the purposes of this chapter, and,
prior to the death of the decedent, the trust became irrevocable
while the decedent was domiciled in this state for the purposes of
this chapter.
(ii) The transfer is made to a trust to which the decedent,
prior to the decedent's death, had directly or indirectly
transferred assets, net of any related liabilities, while the
decedent was domiciled in this state for the purposes of this
chapter, and prior to the death of the decedent the trust became
irrevocable while the decedent was domiciled in this state for the
purposes of this chapter.
(iii) The transfer is made on account of a contractual
relationship existing directly or indirectly between the
transferor and either the decedent or the estate of the decedent
at any time prior to the date of the decedent's death, and the
decedent was domiciled in this state at the time of death for
purposes of the taxes levied under Chapter 5731. of the Revised
Code.
(iv) The transfer is made to a trust on account of a
contractual relationship existing directly or indirectly between
the transferor and another person who at the time of the
decedent's death was domiciled in this state for purposes of this
chapter.
(v) The transfer is made to a trust on account of the will
of a testator.
(vi) The transfer is made to a trust created by or caused
to be created by a court, and the trust was directly or indirectly
created in connection with or as a result of the death of an
individual who, for purposes of the taxes levied under Chapter
5731. of the Revised Code, was domiciled in this state at the time
of the individual's death. (g) The tax commissioner may adopt rules to ascertain the
part
of
a trust residing in this state. (J) "Nonresident" means an individual or estate that is
not
a resident. An individual who is a resident for only part of
a
taxable year is a nonresident for the remainder of that taxable
year. (K) "Pass-through entity" has the same meaning as in section
5733.04 of the
Revised Code. (L) "Return" means the notifications and reports required
to
be filed pursuant to this chapter for the purpose of reporting
the
tax due and includes declarations of estimated tax when so
required. (M) "Taxable year" means the calendar year or the
taxpayer's
fiscal year ending during the calendar year, or
fractional part
thereof, upon which the adjusted gross income is
calculated
pursuant to this chapter. (N) "Taxpayer" means any person subject to the tax imposed
by section 5747.02 of the Revised Code or any pass-through entity
that
makes the election under division (D) of section 5747.08 of
the Revised Code. (O) "Dependents" means dependents as defined in the
Internal
Revenue Code and as claimed in the taxpayer's federal
income tax
return for the taxable year or which the taxpayer
would have been
permitted to claim had the taxpayer filed a
federal income
tax
return. (P) "Principal county of employment" means, in the case of
a
nonresident, the county within the state in which a taxpayer
performs services for an employer or, if those services are
performed in more than one county, the county in which the major
portion of the services are performed. (Q) As used in sections 5747.50 to 5747.55 of the Revised
Code: (1) "Subdivision" means any county, municipal corporation,
park district, or township. (2) "Essential local government purposes" includes all
functions that any subdivision is required by general law to
exercise, including like functions that are exercised under a
charter adopted pursuant to the Ohio Constitution. (R) "Overpayment" means any amount already paid that
exceeds
the figure determined to be the correct amount of the
tax. (S) "Taxable income"
or "Ohio taxable income" applies
only
to estates
and
trusts,
and means
federal
taxable income, as
defined and used in the
Internal
Revenue Code,
adjusted as
follows: (1) Add interest or dividends, net of ordinary, necessary,
and reasonable expenses not deducted in computing federal taxable
income, on obligations or securities
of any state or of any
political subdivision or authority of any
state, other than this
state and its subdivisions and
authorities, but only to the
extent that such net amount is not otherwise includible in Ohio
taxable income and is described in either division (S)(1)(a) or
(b) of this section:
(a) The net amount is not attributable to the S portion of
an electing small business trust and has not been distributed to
beneficiaries for the taxable year;
(b) The net amount is attributable to the S portion of an
electing small business trust for the taxable year. (2) Add interest or dividends, net of ordinary, necessary,
and reasonable expenses not deducted in computing federal taxable
income, on obligations of any
authority, commission,
instrumentality, territory, or possession
of the United States
to
the extent that
the interest or dividends are exempt from federal
income taxes
but
not from state income taxes, but only to the
extent that such net amount is not otherwise includible in Ohio
taxable income and is described in either division (S)(1)(a) or
(b) of this section; (3) Add the amount of personal exemption allowed to the
estate pursuant to section 642(b) of the Internal Revenue Code; (4) Deduct interest or dividends, net of related expenses
deducted in computing federal taxable income, on obligations of
the
United States and its territories and possessions or of any
authority, commission, or instrumentality of the United States
to
the extent
that
the interest or dividends are exempt from state
taxes under the laws of the United
States, but only to the extent
that such amount is included in federal taxable income and is
described in either division (S)(1)(a) or (b) of this section; (5) Deduct the amount of wages and salaries, if any, not
otherwise allowable as a deduction but that would have been
allowable as a deduction in computing federal taxable income for
the taxable year, had the targeted jobs credit allowed under
sections 38, 51, and 52 of the Internal Revenue Code not been in
effect, but only to the extent such amount relates either to
income included in federal taxable income for the taxable year or
to income of the S portion of an electing small business trust for
the taxable year; (6) Deduct any interest or interest equivalent, net of
related expenses deducted in computing federal taxable income, on
public
obligations and purchase obligations, but only to the
extent
that such net amount relates either to income included in
federal taxable income
for the taxable year or to income of the S
portion of an electing small business trust for the taxable year; (7) Add any loss or deduct any gain resulting from sale,
exchange, or other disposition of public obligations to the
extent
that such loss has been deducted or such gain has been
included in
computing either federal taxable income
or income of the S portion
of an electing small business trust for the taxable year; (8) Except in the case of the final return of an estate,
add
any amount deducted by the taxpayer on both its Ohio estate
tax
return pursuant to section 5731.14 of the Revised Code, and
on its
federal income tax return in determining
federal taxable income; (9)(a) Deduct any amount included in federal taxable income
solely because the amount represents a reimbursement or refund of
expenses that in a previous year the decedent had deducted as an
itemized deduction pursuant to section 63 of the Internal Revenue
Code and applicable treasury regulations.
The deduction otherwise
allowed under division (S)(9)(a) of this section shall be reduced
to the extent the reimbursement is attributable to an amount the
taxpayer or decedent deducted under this section in any taxable
year. (b) Add any amount not otherwise included in Ohio taxable
income
for any taxable year to the extent that the amount is
attributable
to the recovery during the taxable year of any amount
deducted or
excluded in computing federal or Ohio taxable income
in any
taxable year, but only to the extent such amount has not
been distributed
to beneficiaries for the taxable year. (10) Deduct any portion of the deduction described in
section 1341(a)(2) of the Internal Revenue Code, for repaying
previously reported income received under a claim of right, that
meets both of the following requirements: (a) It is allowable for repayment of an item that was
included in the taxpayer's taxable income or the decedent's
adjusted gross income for a prior taxable year and did not
qualify
for a credit under division (A) or (B) of section 5747.05
of the
Revised Code for that year. (b) It does not otherwise reduce the taxpayer's taxable
income or the decedent's adjusted gross income for the current or
any other taxable year. (11) Add any amount claimed as a credit under section
5747.059
of the Revised Code to the extent that the amount
satisfies
either of the following: (a) The amount was deducted or excluded from the computation
of the
taxpayer's federal taxable income as required to be
reported for the
taxpayer's taxable year under the Internal
Revenue Code; (b) The amount resulted in a reduction in the taxpayer's
federal taxable
income as required to be reported for any of the
taxpayer's taxable years
under the Internal Revenue Code.
(12) Deduct any amount, net of related expenses deducted in
computing federal taxable income, that a trust is required to
report
as
farm income on its federal income tax return, but only
if the
assets of the trust include at least ten acres of land
satisfying
the definition of "land devoted exclusively to
agricultural use"
under section 5713.30 of the Revised Code,
regardless of whether
the land is valued for tax purposes as such
land under sections
5713.30 to 5713.38 of the Revised Code.
If the
trust is a
pass-though entity investor, section 5747.231 of the
Revised Code
applies in ascertaining if the trust is eligible to
claim the
deduction provided by division (S)(12) of this section
in
connection with the pass-through entity's farm income.
Except for farm income attributable to the S portion of an
electing small business trust, the deduction provided by division
(S)(12) of this section is allowed only to the extent that the
trust has not distributed such farm income.
Division (S)(12) of
this
section applies only to taxable years of a trust beginning
in
2002, 2003, or 2004. (13) Add the net amount of income described in section 641(c)
of the Internal Revenue Code to the extent that amount is not
included in federal taxable income. (14) Add or deduct the amount the taxpayer would be
required
to add or deduct under division (A)(20) or (21) of this
section if
the taxpayer's
Ohio taxable income were computed in the same
manner as
an individual's
Ohio adjusted gross income is computed
under
this
section. In the case of a trust, division (S)(14) of
this
section
applies only to any of the trust's taxable years
beginning
in
2002, 2003, or 2004. (T) "School district income" and "school district income
tax" have the same meanings as in section 5748.01 of the Revised
Code. (U) As used in divisions (A)(8), (A)(9), (S)(6), and
(S)(7)
of this section, "public obligations," "purchase
obligations," and
"interest or interest equivalent" have the same
meanings as in
section 5709.76 of the Revised Code. (V) "Limited liability company" means any limited
liability
company formed under Chapter 1705. of the Revised Code
or under
the laws of any other state. (W) "Pass-through entity investor" means any person who,
during any portion
of a taxable year of a pass-through entity, is
a partner, member, shareholder,
or
equity investor in that
pass-through
entity. (X) "Banking day" has the same meaning as in section 1304.01
of the Revised
Code. (Y) "Month" means a calendar month. (Z) "Quarter" means the first three months, the second three
months, the
third three months, or the last three months of the
taxpayer's taxable year. (AA)(1) "Eligible institution" means a state university or
state
institution of higher education as defined in section
3345.011 of the Revised Code, or a
private, nonprofit college,
university, or other post-secondary institution
located in this
state that possesses a certificate of authorization issued by
the
Ohio board of regents pursuant to Chapter 1713. of the Revised
Code or a
certificate of registration issued by the state board of
career colleges and schools under Chapter 3332. of the Revised
Code. (2) "Qualified tuition and fees" means tuition and fees
imposed by an
eligible institution as a condition of enrollment or
attendance, not exceeding
two thousand five hundred dollars in
each of the individual's first two years
of post-secondary
education. If the individual is a part-time student,
"qualified
tuition and fees" includes tuition and fees paid for the academic
equivalent of the first two years of post-secondary education
during a maximum
of five taxable years, not exceeding a total of
five thousand dollars.
"Qualified tuition and fees" does not
include: (a) Expenses for any course or activity involving sports,
games,
or hobbies unless the course or activity is part of the
individual's degree or
diploma program; (b) The cost of books, room and board, student activity
fees,
athletic fees, insurance expenses, or other expenses
unrelated to the
individual's academic course of instruction; (c) Tuition, fees, or other expenses paid or reimbursed
through
an employer, scholarship, grant in aid, or other
educational benefit program. (BB)(1) "Modified business
income" means the business income
included in a trust's
Ohio taxable
income after such taxable
income is
first reduced by the
qualifying
trust amount, if any. (2) "Qualifying
trust amount" of a trust means capital gains
and
losses from the sale, exchange, or other disposition of equity
or
ownership
interests in, or debt obligations of, a
qualifying
investee to the extent included in the trust's
Ohio
taxable income, but
only if the
following requirements are satisfied:
(a) The book value of the qualifying
investee's
physical assets in this state and everywhere, as of the last day
of the qualifying investee's fiscal or calendar year ending
immediately prior to the date on which the trust recognizes the
gain or loss, is available to the trust.
(b) The requirements of section 5747.011 of the Revised Code
are satisfied for the trust's taxable year in which the trust
recognizes the gain or loss.
Any gain or loss that is not a qualifying trust amount is
modified business income, qualifying investment income, or
modified nonbusiness income, as the
case may be.
(3) "Modified nonbusiness income" means a trust's
Ohio
taxable
income other than modified business income, other than
the
qualifying
trust amount, and other than qualifying investment
income, as defined in section 5747.012 of the Revised Code, to the
extent such qualifying investment income is not otherwise part of
modified business income.
(4) "Modified
Ohio taxable income" applies only to trusts,
and
means the sum of the
amounts described in divisions
(BB)(4)(a) to (c) of this section:
(a)
The fraction,
calculated under division (B)(2) of section 5733.05 5747.013, and applying
section 5733.057 5747.231 of the Revised Code, as if the trust were a
corporation subject to the tax imposed by section 5733.06 of the
Revised Code, multiplied by the sum of the following amounts:
(i) The trust's modified business income;
(ii) The trust's qualifying investment income, as defined
in section 5747.012 of the Revised Code, but only to the extent
the qualifying investment income does not otherwise constitute
modified business income and does not otherwise constitute a
qualifying trust amount.
(b) The qualifying
trust amount multiplied by
a
fraction, the numerator of which is the sum of the
book value of
the
qualifying investee's physical assets in this state
on the last day of the qualifying
investee's fiscal or calendar year ending immediately prior to the
day on which the trust recognizes the qualifying trust amount, and
the denominator of which is the sum of the book value of the
qualifying investee's total physical assets everywhere
on the last day of the qualifying investee's
fiscal or calendar year ending immediately prior to the day on
which the trust recognizes the qualifying trust amount.
If, for a
taxable year, the trust
recognizes a qualifying
trust amount
with
respect to more than one
qualifying investee, the amount
described
in division (BB)(4)(b)
of this section shall equal the
sum of the
products so computed
for each such qualifying
investee.
(c)(i) With respect to a trust or
portion of a trust that is a resident as ascertained in accordance
with division (I)(3)(d) of this section, its modified nonbusiness
income.
(ii) With respect to a trust or portion of a trust that is
not a resident as ascertained in accordance with division
(I)(3)(d) of this section, the amount of its modified nonbusiness
income satisfying the descriptions in divisions (B)(2) to (5) of
section 5747.20 of the Revised Code.
If the allocation and apportionment of a trust's income
under
divisions (BB)(4)(a) and (c) of this section do not fairly
represent the modified
Ohio taxable income of the trust in this
state,
the alternative methods described in division (C) of
section
5747.21 of the Revised Code may be applied in the manner
and to
the same extent provided in that section.
(5)(a) Except as set forth in division
(BB)(5)(b) of this section, "qualifying investee" means a person
in which a trust
has an equity or ownership interest, or a person
or unit of
government the debt obligations of either of which are
owned by a
trust.
For the purposes of division (BB)(2)(a) of this
section and for the purpose of computing the fraction described in
division (BB)(4)(b) of this section, all of the following apply:
(i) If the qualifying investee is a member of a qualifying
controlled group on the last day of the qualifying investee's
fiscal or calendar year ending immediately prior to the date on
which the trust recognizes the gain or loss, then "qualifying
investee" includes all persons in the qualifying controlled group
on such last day.
(ii) If the qualifying investee, or if the qualifying
investee and any members of the
qualifying controlled group of
which the qualifying investee is a
member on the last day of the
qualifying investee's fiscal or
calendar year ending immediately
prior to the date on which the
trust recognizes the gain or loss,
separately or cumulatively own,
directly or indirectly, on the
last day of the qualifying
investee's fiscal or calendar year
ending immediately prior to the
date on which the trust recognizes
the qualifying trust amount, more
than fifty per cent of the
equity of a pass-through entity, then
the qualifying investee and
the other members are deemed to own
the proportionate share of the
pass-through entity's physical
assets which the pass-through
entity directly or indirectly owns
on the last day of the
pass-through entity's calendar or fiscal
year ending within or
with the last day of the qualifying
investee's fiscal or calendar
year ending immediately prior to the
date on which the trust
recognizes the qualifying trust amount.
(iii) For the purposes of division (BB)(5)(a)(iii) of this
section, "upper level
pass-through entity" means a pass-through
entity directly or
indirectly owning any equity of another
pass-through entity, and
"lower level pass-through
entity" means
that other pass-through entity.
An upper level pass-through entity, whether or not it is
also a qualifying investee, is deemed to own, on the last day of
the upper level pass-through entity's calendar or fiscal year, the
proportionate share of the lower level pass-through entity's
physical assets that the lower level pass-through entity directly
or indirectly owns on the last day of the lower level pass-through
entity's calendar or fiscal year ending within or with the last
day of the upper level pass-through entity's fiscal or calendar
year. If the upper level pass-through entity directly and
indirectly owns less than fifty per cent of the equity of the
lower level pass-through entity on each day of the upper level
pass-through entity's calendar or fiscal year in which or with
which ends the calendar or fiscal year of the lower level
pass-through entity and if, based upon clear and convincing
evidence, complete information about the location and cost of the
physical assets of the lower pass-through entity is not available
to the upper level pass-through entity, then solely for purposes
of ascertaining if a gain or loss constitutes a qualifying trust
amount, the upper level pass-through entity shall be deemed as
owning no equity of the lower level pass-through entity for each
day during the upper level pass-through entity's calendar or
fiscal year in which or with which ends the lower level
pass-through entity's calendar or fiscal year. Nothing in
division (BB)(5)(a)(iii) of this section shall be construed to
provide for any deduction or
exclusion in computing any trust's
Ohio taxable income. (b) With respect to a trust that is not a resident for the
taxable year and with respect to a part of a trust that is not a
resident for the taxable year, "qualifying investee" for that
taxable year does not include a C corporation if both of the
following apply: (i) During the taxable year the trust or part of the trust
recognizes a gain or loss from the sale, exchange, or other
disposition of equity or ownership interests in, or debt
obligations of, the C corporation. (ii) Such gain or loss constitutes nonbusiness income.
(6) "Available" means information is such that a person
is able to learn of the information by the due date plus
extensions, if any, for filing the return for the taxable year in
which the trust recognizes the gain or loss.
(CC) "Qualifying controlled group" has the same meaning as
in section 5733.04 of the Revised Code.
(DD) "Related member" has the same meaning as in section
5733.042 of the Revised Code.
(EE) Any term used in this chapter that is not otherwise
defined in
this section and that is not used in a comparable
context in the
Internal Revenue Code and other statutes of the
United States relating to federal income taxes has the same
meaning as in section 5733.40 of the Revised Code.
Sec. 5747.013. (A) As used in this section:
(1) "Electric company," "combined company," and "telephone company" have the same meanings as in section 5727.01 of the Revised Code.
(2) "Qualified research" means laboratory research, experimental research, and other similar types of research; research in developing or improving a product; or research in developing or improving the means of producing a product. It does not include market research, consumer surveys, efficiency surveys, management studies, ordinary testing or inspection of material or products for quality control, historical research, or literary research. "Product," as used in this paragraph, does not include services or intangible property.
(B) The fraction to be used in calculating a trust's modified Ohio taxable income under division (BB)(4)(a) of section 5747.01 of the Revised Code shall be determined as follows: The numerator of the fraction is the sum of the following products: the property factor multiplied by twenty, the payroll factor multiplied by twenty, and the sales factor multiplied by sixty. The denominator of the fraction is one hundred, provided that the denominator shall be reduced by twenty if the property factor has a denominator of zero, by twenty if the payroll factor has a denominator of zero, and by sixty if the sales factor has a denominator of zero.
The property, payroll, and sales factors shall be determined as follows:
(1) The property factor is a fraction the numerator of which is the average value of the trust's real and tangible personal property owned or rented and used in the trade or business in this state during the taxable year, and the denominator of which is the average value of all the trust's real and tangible personal property owned or rented and used in the trade or business everywhere during such year. Real and tangible personal property that is owned but leased to a lessee to be used in the lessee's trade or business shall not be included in the property factor of the owner. There shall be excluded from the numerator and denominator of the fraction the original cost of all of the following property within Ohio: property with respect to which a "pollution control facility" certificate has been issued pursuant to section 5709.21 of the Revised Code; property with respect to which an "industrial water pollution control certificate" has been issued pursuant to that section or former section 6111.31 of the Revised Code; and property used exclusively during the taxable year for qualified research.
(a) Property owned by the trust is valued at its original cost. Property rented by the trust is valued at eight times the net annual rental rate. "Net annual rental rate" means the annual rental rate paid by the trust less any annual rental rate received by the trust from subrentals.
(b) The average value of property shall be determined by averaging the values at the beginning and the end of the taxable year, but the tax commissioner may require the averaging of monthly values during the taxable year, if reasonably required to reflect properly the average value of the trust's property.
(2) The payroll factor is a fraction the numerator of which is the total amount paid in this state during the taxable year by the trust for compensation, and the denominator of which is the total compensation paid everywhere by the trust during such year. There shall be excluded from the numerator and the denominator of the payroll factor the total compensation paid in this state to employees who are primarily engaged in qualified research.
(a) Compensation is paid in this state if: (i) the recipient's service is performed entirely within this state; (ii) the recipient's service is performed both within and without this state, but the service performed without this state is incidental to the recipient's service within this state; or (iii) some of the service is performed within this state and either the base of operations, or if there is no base of operations, the place from which the service is directed or controlled, is within this state, or the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the recipient's residence is in this state.
(b) Compensation is paid in this state to any employee of a common or contract motor carrier corporation, who performs the employee's regularly assigned duties on a motor vehicle in more than one state, in the same ratio by which the mileage traveled by such employee within the state bears to the total mileage traveled by such employee everywhere during the taxable year.
(3) The sales factor is a fraction the numerator of which is the total sales in this state by the trust during the taxable year, and the denominator of which is the total sales by the trust everywhere during such year. In determining the numerator and denominator of the fraction, receipts from the sale or other disposal of a capital asset or an asset described in section 1231 of the Internal Revenue Code shall be eliminated. Also, in determining the numerator and denominator of the sales factor, in the case of a trust owning at least eighty per cent of the issued and outstanding common stock of one or more insurance companies or public utilities, except an electric company and a combined company, and, for tax years 2005 and thereafter, a telephone company, or owning at least twenty-five per cent of the issued and outstanding common stock of one or more financial institutions, receipts received by the trust from such insurance companies, utilities, and financial institutions shall be eliminated.
For the purpose of this section and section 5747.08 of the Revised Code, sales of tangible personal property are in this state where such property is received in this state by the purchaser. In the case of delivery of tangible personal property by common carrier or by other means of transportation, the place at which such property is ultimately received after all transportation has been completed shall be considered as the place at which such property is received by the purchaser. Direct delivery in this state, other than for purposes of transportation, to a person or firm designated by a purchaser constitutes delivery to the purchaser in this state, and direct delivery outside this state to a person or firm designated by a purchaser does not constitute delivery to the purchaser in this state, regardless of where title passes or other conditions of sale.
Sales, other than sales of tangible personal property, are in this state if either:
(a) The income-producing activity is performed solely in this state; or
(b) The income-producing activity is performed both within and without this state and a greater proportion of the seller's income-producing activity is performed within this state than in any other state, based on costs of performance.
Sec. 5747.03. (A) All money collected under this chapter
arising from the taxes imposed by section 5747.02 or
5747.41 of the Revised
Code shall be credited to the general revenue fund, except
that
the treasurer of state shall: (1) Credit an amount equal to four and two-tenths
per cent of those taxes collected under this chapter to the local
government fund, which is hereby created in the state treasury, for
distribution in accordance with section 5747.50 of the Revised
Code; (2) Credit an amount equal to five and seven-tenths per cent of those taxes
collected under this chapter to the library and
local government support fund, which is hereby created in the
state treasury, for distribution in accordance with section
5747.47 of the Revised Code; (3) At the beginning of each calendar quarter, credit to
the Ohio political party fund, pursuant to section 3517.16 of the
Revised Code, an amount equal to the total dollar value realized
from the taxpayer exercise of the income tax checkoff option on
tax forms processed during the preceding calendar quarter; (4) Credit an amount equal to six-tenths
of one per cent of
those taxes collected under this chapter to the local
government
revenue assistance fund for distribution in accordance with
section 5747.61 of the Revised Code. (B)(1) Following the crediting of moneys pursuant to
division (A) of this section, the remainder deposited in the
general revenue fund shall be distributed pursuant to division
(F) of section 321.24 and section 323.156 of the Revised Code; to
make subsidy payments to institutions of higher education from
appropriations to the Ohio board of regents; to support
expenditures for programs and services for the mentally ill,
mentally retarded, developmentally disabled, and elderly; for
primary and secondary education; for medical assistance; and for
any other purposes authorized by law, subject to the limitation
that at least fifty per cent of the income tax collected by the
state from the tax imposed by section 5747.02 of the Revised Code
shall be returned pursuant to Section 9 of Article XII, Ohio
Constitution. (2) To ensure that such constitutional requirement is
satisfied the tax commissioner shall, on or before the thirtieth
day of June of each year, from the best information available to
the tax commissioner, determine and certify for each county
to the director of
budget and management the amount of taxes collected under this
chapter from the tax imposed under section 5747.02 of the Revised Code during the
preceding calendar year that are required to
be returned to the county by Section 9 of Article XII, Ohio
Constitution. The director shall provide for payment from the
general revenue fund to the county in the amount, if any, that
the sum of the amount so certified for that county exceeds the
sum of the following: (a) The sum of the payments from the general revenue fund
for the preceding calendar year to the credit of the county's
undivided income tax fund pursuant to division (F) of section
321.24 and section 323.156 of the Revised Code; (b) The sum of the amounts from the general revenue fund
distributed in the county during the preceding calendar year for
subsidy payments to institutions of higher education from
appropriations to the Ohio board of regents; for programs and
services for mentally ill, mentally retarded, developmentally
disabled, and elderly persons; for primary and secondary
education; and for medical assistance. (c) The amount distributed to the county during the
preceding calendar year from the local government fund; (d) The amount distributed to the county during the
preceding calendar year from the library and local government
support fund; (e) The amount distributed to the county during the
preceding calendar year from the local government revenue
assistance fund. Payments under this division shall be credited to the
county's undivided income tax fund, except that, notwithstanding
section 5705.14 of the Revised Code, such payments may be
transferred by the board of county commissioners to the county
general fund by resolution adopted with the affirmative vote of
two-thirds of the members thereof. (C) All payments received in each month from taxes imposed
under Chapter 5748. of the Revised Code and any penalties or
interest thereon shall be paid into the school district income
tax fund, which is hereby created in the state treasury, except
that an amount equal to the following portion of such
payments
shall be paid into the general school district income tax
administrative fund, which is hereby created in the state
treasury: (1) One and three-quarters of one per cent of those
received in fiscal year 1996; (2) One and one-half per cent of those received in fiscal
year 1997 and thereafter. Money in the school district income tax administrative fund
shall be used by the tax commissioner to defray costs incurred in
administering the school district's income tax, including the
cost of providing employers with information regarding the rate
of tax imposed by any school district. Any moneys remaining in
the fund after such use shall be deposited in the school district
income tax fund.
All interest earned on moneys in the school district income tax fund shall be credited to the fund. (D)(1)(a) Within thirty days of the end of each calendar
quarter ending on the last day of March, June, September, and
December, the director of budget and management shall make a
payment from the school district income tax fund to each school
district for which school district income tax revenue was
received during that quarter. The amount of the payment shall
equal the balance in the school district's account at the end of
that quarter. (b) After a school district ceases to levy an income tax, the
director of budget and management shall adjust the payments under division
(D)(1)(a) of this section to retain sufficient money in
the school district's account to pay refunds. For the calendar quarters ending
on the last day of March and December of the calendar year
following the last calendar year the tax is levied, the director shall make the
payments in the amount required under division (D)(1)(a)
of this section. For the calendar quarter ending on the last day of
June of the calendar year following the last calendar year the tax is
levied, the director shall make a payment equal to nine-tenths of the balance
in the account at the end of that quarter. For the calendar quarter ending on
the last day of September of the calendar year following the last
calendar year the tax is levied, the director shall make no payment. For the
second and succeeding calendar years following the last calendar year the tax
is levied, the director shall make one payment each year, within thirty days
of
the last day of June, in an amount equal to the balance in the
district's account on the last day of June. (2) Moneys paid to a school district under this division
shall be deposited in its school district income tax fund. All
interest earned on moneys in the school district income tax fund
shall be apportioned by the tax commissioner pro rata among the
school districts in the proportions and at the times the
districts are entitled to receive payments under this division.
SECTION 2. That existing sections 321.45, 323.152, 323.25, 718.01, 4503.065, 5705.19, 5709.61, 5709.62, 5709.63, 5709.631, 5709.633, 5709.85, 5709.883, 5721.25, 5722.01, 5722.02, 5733.05, 5733.33, 5735.01, 5747.01, and 5747.03 of the Revised Code are hereby repealed.
SECTION 3. That Section 3.18 of Am. Sub. H.B. 95 of the 125th General Assembly be amended to read as follows: Sec. 3.18. The amendments in Sections 3.16 and 3.17 of this act Am. Sub. H.B. 95 of the 125th General Assembly provide for or are essential to the implementation of a tax levy. Therefore, under Ohio Constitution, Article II, Section 1d, those Sections are not subject to the referendum and go into effect January 1, 2004 2005.
SECTION 4. That existing Section 3.18 of Am. Sub. H.B. 95 of the 125th General Assembly is hereby repealed.
SECTION 5. This section and the amendments by this act to Section 3.18 of Am. Sub. H.B. 95 of the 125th General Assembly provide for or are essential to the implementation of a tax levy. Therefore, under Ohio Constitution, Article II, Section 1d, this section and those amendments are not subject to the referendum and go into immediate effect.
SECTION 6. That Section 89.07 of Am. Sub. H.B. 95 of the 125th General Assembly be amended to read as follows: Sec. 89.07. AIR FORCE INSTITUTE OF TECHNOLOGY The foregoing appropriation item 235-508, Air Force Institute of Technology, shall be used to strengthen the research and educational linkages between the Wright Patterson Air Force Base and institutions of higher education in Ohio. Of the foregoing appropriation item 235-508, Air Force Institute of Technology, $1,317,173 in fiscal year 2004 and $1,315,929 in fiscal year 2005 shall be used for research projects that connect the Air Force Research Laboratories with university partners. The institute shall provide annual reports to the Third Frontier Commission, that discuss existing, planned, or possible collaborations between programs and funding recipients related to technology, research development, commercialization, and support for Ohio's economic development.
Of the foregoing appropriation item 235-508, Air Force Institute of Technology, $477,237 in fiscal year 2004 and $476,786 in fiscal year 2005 shall be used to match federal dollars to by the University of Dayton to establish and support a chair in Nano Technology in support of the Wright Brothers Institute. Funds shall be used by the Wright Brothers Institute to create or expand Ohio-based technology and commercial development collaborations between industry, academia, and government in areas which include carbon nano-tube materials technology, genome-based biotechnology, knowledge-creation information technology, cognitive systems modeling and engineering, or other related projects as deemed appropriate by the institute through the Miami Valley Economic Development Research Corporation. Of the foregoing appropriation item 235-508, Air Force Institute of Technology, $302,113 in fiscal year 2004 and $261,145 in fiscal year 2005 shall be used by the Miami Valley Economic Development Research Corporation to directly support collaborative research between academia, industry, and the Air Force for the Wright Brothers Institute Nanomaterials and Advanced Data Management and Analysis and related initiatives in nanomaterials and advanced data management and analysis or other technology projects as determined by the Miami Valley Economic Development Research Corporation. OHIO SUPERCOMPUTER CENTER The foregoing appropriation item 235-510, Ohio
Supercomputer
Center, shall be used by the Board of Regents
to support the
operation of the center, located at The Ohio State
University, as
a statewide resource available to
Ohio research universities both
public and private. It is also
intended that the center be made
accessible to private industry
as appropriate. Policies of the
center shall be established by a
governance committee,
representative of Ohio's research
universities and private
industry, to be appointed by the
Chancellor of the Board of
Regents and established for this
purpose. The Ohio Supercomputer Center shall report on expanding solutions-oriented, computational science services to industrial and other customers, including alignment programs and recipients, and develop a plan for a computational science initiative in collaboration with the Wright Centers of Innovation program and the Computer Science Graduate Studies Program. COOPERATIVE EXTENSION SERVICE The foregoing appropriation item 235-511, Cooperative Extension Service, shall be disbursed through the Board of Regents to The Ohio State University in monthly payments, unless otherwise determined by the Director of Budget and Management pursuant to section 126.09 of the Revised Code. Of the foregoing appropriation item 235-511, Cooperative
Extension Service, $182,842 in fiscal year 2004 and $178,271 in fiscal year 2005
shall be used for
additional staffing for county
agents for expanded 4-H activities.
Of the foregoing
appropriation item 235-511, Cooperative Extension
Service,
$182,842 in fiscal year 2004 and $178,271 in fiscal year 2005
shall be used by the
Cooperative Extension Service, through the
Enterprise Center for
Economic Development in cooperation with
other agencies, for a
public-private effort to create and operate
a small business
economic development program to enhance the
development of
alternatives to the growing of tobacco, and
implement, through
applied research and demonstration, the
production and marketing
of other high-value crops and
value-added products. Of the
foregoing appropriation item
235-511, Cooperative Extension
Service, $56,594 in fiscal year 2004 and $55,179 in fiscal year 2005 shall be used for farm labor
mediation and education
programs. Of the foregoing appropriation
item 235-511, Cooperative Extension
Service, $187,195 in fiscal year 2004 and $182,515 in fiscal year 2005 shall
be used to support the Ohio State University
Marion Enterprise Center. Of the foregoing appropriation item 235-511, Cooperative
Extension Service,
$792,750 in fiscal year 2004 and $772,931 in fiscal year 2005 shall be used to
support the Ohio Watersheds
Initiative. CENTRAL STATE SUPPLEMENT
The foregoing appropriation item 235-514, Central State
Supplement, shall be used by Central State University to keep
undergraduate fees below the statewide average, consistent with
its mission of service to many first-generation college students
from groups historically underrepresented in higher education and
from families with limited incomes. PERFORMANCE STANDARDS FOR MEDICAL EDUCATION The Board of Regents, in consultation with the
state-assisted medical
colleges, shall develop performance
standards for medical
education. Special
emphasis in the
standards shall be placed on attempting to ensure
that at least 50
per cent of the aggregate number of students
enrolled in
state-assisted medical colleges continue to enter residency as
primary care
physicians. Primary care physicians are
general
family
practice
physicians, general internal medicine
practitioners, and general
pediatric care
physicians.
The Board
of Regents shall monitor medical school
performance in relation
to their
plans for reaching the 50 per
cent systemwide standard
for primary care
physicians.
SECTION 7. That existing Section 89.07 of Am. Sub. H.B. 95 of the 125th General Assembly is hereby repealed.
SECTION 8. This section and the amendments by this act to Section 89.07 of Am. Sub. H.B. 95 of the 125th General Assembly are not subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1d and section 1.471 of the Revised Code, this section and those amendments go into immediate effect when this act becomes law. SECTION 9. If unspent and unobligated cash balances in the General Revenue Fund are sufficient, the Director of Budget and Management, upon receiving a request from the Director of Development, may increase by up to $5 million over both fiscal years of the 2004-2005 biennium appropriations in existing General Revenue Fund appropriation items for, or in new General Revenue Fund appropriation items created by the Director of Budget and Management for, the Department of Development, to support economic development projects for which appropriations otherwise would not be available. These increases are hereby appropriated.
This section is not subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1d and section 1.471 of the Revised Code, this section goes into immediate effect when this act becomes law.
SECTION 10. (A) The amendment by this act of section 323.152 of the Revised Code applies to tax year 2004 and thereafter. (B) The amendment by this act of section 4503.065 of the Revised Code applies to taxes levied in 2005 and thereafter.
SECTION 11. The amendment by this act of section 5705.19 of the Revised Code applies to resolutions adopted under that section on or after the effective date of this act.
SECTION 12. Except as otherwise specifically provided in this act, the sections of law amended or enacted in this act, and the items of law of which the sections of law amended or enacted in this act are composed, are subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1c and section 1.471 of the Revised Code, the sections of law amended or enacted by this act, and the items of law of which the sections of law as amended or enacted by this act are composed, take effect on the ninety-first day after this act is filed with the Secretary of State. If, however, a referendum petition is filed against any such section of law as amended or enacted by this act, or against any item of law of which any such section of law as amended or enacted by this act is composed, the section of law as amended or enacted, or item of law, unless rejected at the referendum, takes effect at the earliest time permitted by law.
SECTION 13. The amendment or enactment by this act of sections 5733.05, 5747.01, and 5747.013 of the Revised Code provide for or are essential to implementation of a tax levy. Therefore, under Ohio Constitution, Article II, Section 1d, the amendments and enactments, and the items of which they are composed, are not subject to the referendum and go into immediate effect when this act becomes law. This section is essential to implementation of a tax levy and, under Ohio Constitution, Article II, Section 1d, is not subject to the referendum and goes into immediate effect when this act becomes law.
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