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Sub. H. B. No. 2 As Reported by the House State Government CommitteeAs Reported by the House State Government Committee
126th General Assembly | Regular Session | 2005-2006 |
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Representatives Widowfield, Buehrer, Flowers, Walcher, Hartnett, Mitchell, Uecker, Carmichael, Book, D. Stewart
A BILL
To amend sections 5101.184, 5747.026, 5747.08, and 5747.113 and to enact section 5903.21 of the Revised Code to grant to all members of the National Guard and reserve components of the United States armed forces who have been called to active duty an extension of time in which to file income tax returns and pay income taxes, to increase the number of authorized participants in the Ohio National Guard Scholarship Program for the 2005 summer term, to allow taxpayers to donate a portion of their Ohio income tax refund to injured military personnel, and to declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5101.184, 5747.026, 5747.08 and 5747.113 be amended and section 5903.21 of the Revised Code be enacted to read as follows:
Sec. 5101.184. (A) The director of job and family services
shall
work with the tax commissioner to collect overpayments of
assistance under Chapter 5107., 5111., or 5115., former Chapter
5113., or
section 5101.54
of the Revised Code
from refunds of
state income taxes for taxable year 1992 and
thereafter that are
payable to the recipients of such
overpayments. Any overpayment of assistance, whether obtained by fraud or
misrepresentation, as the result of an error by the recipient or
by the agency making the payment, or in any other manner, may be
collected under this section. Any reduction under section
5747.12
or 5747.121 of the Revised Code to an income tax refund
shall be
made before a reduction under this section. No
reduction shall be
made under this section if the amount of the
refund is less than
twenty-five dollars after any reduction under
section 5747.12 of
the Revised Code. A reduction under this
section shall be made
before any part of the refund is
contributed under section
5747.113 of the Revised Code to the
natural areas and preserves
fund or the nongame and endangered
wildlife fund, or is credited
under section 5747.12 of the
Revised Code against tax due in any
subsequent year. The director and the tax commissioner, by rules adopted in
accordance with Chapter 119. of the Revised Code, shall establish
procedures to implement this division. The procedures shall
provide for notice to a recipient of assistance and an
opportunity
for the recipient to be heard before
the recipient's income tax
refund is
reduced. (B) The director of job and family services may enter
into
agreements with the federal government to collect overpayments of
assistance from refunds of federal income taxes that are payable
to recipients of the overpayments. Sec. 5747.026. (A) For taxable years beginning on or after January 1, 2002, a each member of the national guard or a and each member of a reserve component of the armed forces of the United States called to active or other duty under operation Iraqi freedom pursuant to an executive order issued by the president of the United States or an act of the congress of the United States may apply to the tax commissioner for both an extension for filing of the return and an extension of time for payment of taxes required under this chapter and under Chapter 5748. of the Revised Code during the period of the member's duty service and for sixty days thereafter. The application shall be filed on or before the sixtieth day after the member's duty terminates. An applicant shall provide such evidence as the tax commissioner considers necessary to demonstrate eligibility for the extension.
(B)(1) If the tax commissioner determines ascertains that an applicant is qualified for an extension under this section, the tax commissioner shall enter into a contract with the applicant for the payment of the tax in installments that begin on the sixty-first day after the applicant's active duty under operation Iraqi freedom terminates. Except as provided in division (B)(3) of this section, the tax commissioner may prescribe such contract terms as the tax commissioner considers appropriate.
(2) If the tax commissioner determines ascertains that an applicant is qualified for an extension under this section, the applicant shall not neither be required to file any return, report, or other tax document nor be required to pay any tax otherwise due under this chapter and Chapter 5748. of the Revised Code before the sixty-first day after the applicant's active duty under operation Iraqi freedom terminates.
(3) Taxes paid pursuant to a contract entered into under division (B)(1) of this section are not delinquent. The tax commissioner shall not require any payments of penalties, interest penalties, or interest in connection with such those taxes for the extension period.
(C)(1) Divisions (A) and (B) of this section do not apply to any taxable year for which a taxpayer receives an extension of time in which to file a federal income tax return or pay federal income tax under the Internal Revenue Code Nothing in this division denies to any person described in this division the application of divisions (A) and (B) of this section.
(2)(a) A qualifying taxpayer who is eligible for an extension under the Internal Revenue Code shall receive both an extension of time in which to file any return, report, or other tax document described in this chapter and an extension of time in which to make any payment of taxes required under this chapter or and Chapter 5748. of the Revised Code. The length of any extension granted under division (C)(2)(a) of this section shall be equal to the length of the corresponding extension that the taxpayer receives under the Internal Revenue Code. As used in this section, "qualifying taxpayer" means a member of the national guard, or a member of the reserve component of the armed forces of the United States, who is called to active duty pursuant to either an executive order issued by the president of the United States or an act of the congress of the United States.
(b) Taxes paid whose payment is extended in accordance with division (C)(2)(a) of this section are not delinquent during the extension period. The tax commissioner shall not require any payment of penalties, interest penalties, or interest in connection with such those taxes for the extension period. The tax commissioner shall not include any period of extension granted under division (C)(2)(a) of this section in calculating the penalty, interest penalty, or interest due on any unpaid tax.
(D) For each taxable year to which division (A), (B), or (C) of this section applies to a taxpayer, the provisions of divisions (B)(2) and (3) or (C) of this section, as applicable, apply to the spouse of that taxpayer if the filing status of the spouse and the taxpayer is married filing jointly for that year. (E) The tax commissioner shall may adopt rules necessary to administer this section, including rules establishing the following:
(1) Forms and procedures by which applicants may apply for extensions;
(2) Criteria for eligibility;
(3) A schedule for repayment of deferred taxes.
Sec. 5747.08. An annual return with respect to the tax
imposed by section 5747.02 of the Revised Code and each tax
imposed under Chapter 5748. of the Revised Code shall be made by
every taxpayer for any taxable year for which the taxpayer is
liable for the tax imposed by that section or under that chapter,
unless the total credits allowed under divisions (E), (F), and
(G)
of section 5747.05 of the Revised Code for the year are equal
to
or exceed the tax imposed by section 5747.02 of the Revised
Code,
in which case no return shall be required unless the
taxpayer is
liable for a tax imposed pursuant to Chapter 5748. of
the Revised
Code. (A) If an individual is deceased, any return or notice
required of that individual under this chapter shall be made and
filed by that decedent's executor, administrator, or other
person
charged with the property of that decedent. (B) If an individual is unable to make a return or notice
required by this chapter, the return or notice required of that
individual
shall be made and filed by the individual's duly
authorized agent,
guardian, conservator, fiduciary, or other
person charged with
the care of the person or property of that
individual. (C) Returns or notices required of an estate or a trust
shall be made and filed by the fiduciary of the estate or trust. (D)(1)(a) Except as otherwise provided in
division (D)(1)(b)
of this section, any
pass-through entity
may file a single return
on behalf of
one or more of the entity's investors other than an
investor that is a
person subject
to the tax imposed under section
5733.06 of the Revised Code. The single
return shall set forth
the name, address, and social security number
or other identifying
number of each
of those
pass-through entity investors
and shall
indicate the distributive
share of each of those
pass-through
entity investor's income
taxable in this state
in accordance with
sections 5747.20 to
5747.231 of the
Revised
Code. Such
pass-through entity investors
for whom the pass-through entity
elects to file a single return
are not entitled to the exemption
or credit provided for by
sections 5747.02 and 5747.022 of the
Revised
Code; shall calculate
the tax
before business credits at
the highest rate of tax set
forth in
section 5747.02 of the
Revised
Code for the taxable year
for
which the return is filed;
and are entitled to only their
distributive share of the business
credits as defined in
division
(D)(2) of this
section. A single
check drawn by the pass-through
entity shall
accompany
the return
in full payment of the tax due, as shown on the single return,
for
such investors, other than investors who are persons
subject to
the tax imposed under section 5733.06 of the
Revised Code. (b)(i) A pass-through entity shall not
include in such a
single return any investor that is a trust to
the extent that any
direct or indirect current, future, or
contingent beneficiary of
the trust is a person subject to the
tax imposed under section
5733.06 of the
Revised Code. (ii) A pass-through entity shall
not include in such a
single return any investor that is itself
a pass-through entity to
the extent that any direct or indirect
investor in the second
pass-through entity is a person subject
to the tax imposed under
section 5733.06 of the
Revised Code. (c) Nothing in division
(D) of this section precludes
the
tax commissioner from requiring such investors to file the
return
and make the payment of taxes and related interest,
penalty, and
interest penalty required by this section or
section 5747.02,
5747.09, or 5747.15 of the
Revised Code. Nothing in division
(D)
of this section shall be
construed to provide to such an investor
or pass-through entity
any additional deduction or credit, other
than the credit
provided by division (J) of
this section, solely
on account of the entity's filing a return
in accordance with this
section. Such a pass-through entity also
shall make the filing
and payment of estimated taxes on behalf of the pass-through
entity
investors other than an
investor that is a person subject
to the tax imposed under section 5733.06
of the Revised Code. (2) For the purposes of
this section,
"business credits"
means the credits
listed in section 5747.98 of the
Revised
Code
excluding the following
credits: (a) The retirement credit under division (B) of section
5747.055 of
the Revised Code; (b) The senior citizen credit under
division (C) of section
5747.05 of the Revised Code; (c) The lump sum distribution credit
under division (D) of
section
5747.05 of the Revised
Code; (d) The dependent care credit under
section 5747.054 of the
Revised
Code; (e) The lump sum retirement income
credit under division (C)
of
section 5747.055 of the Revised
Code; (f) The lump sum retirement income
credit under division (D)
of
section 5747.055 of the Revised
Code; (g) The lump sum retirement income
credit under division (E)
of
section 5747.055 of the Revised
Code; (h) The credit for displaced workers
who pay for job
training under section 5747.27 of the
Revised
Code; (i) The twenty-dollar personal
exemption credit under
section 5747.022 of the
Revised
Code; (j) The joint filing credit under
division (G) of section
5747.05
of the Revised
Code; (k) The nonresident credit under
division (A) of section
5747.05
of the Revised
Code; (l) The credit for a resident's
out-of-state income under
division
(B) of section 5747.05 of the
Revised
Code. (3) The election provided for under division
(D) of this
section applies
only to the taxable year for which the election is
made by the
pass-through entity. Unless the tax commissioner
provides
otherwise, this election, once made, is binding and
irrevocable
for the taxable year for which the election is made.
Nothing in
this division shall be construed to provide for any
deduction or
credit that would not be allowable if a nonresident
pass-through
entity investor were to file an annual return. (4) If a pass-through entity makes the election provided
for
under division (D) of this
section, the pass-through entity shall
be liable for any
additional taxes, interest, interest penalty, or
penalties imposed by this
chapter
if the tax
commissioner
finds that
the single return does
not reflect the
correct tax
due by
the
pass-through
entity investors
covered by that
return. Nothing in
this
division shall be
construed to limit or
alter the liability,
if
any, imposed on
pass-through entity
investors for unpaid or
underpaid taxes,
interest, interest
penalty, or penalties as a
result of the
pass-through entity's
making the election provided
for under
division (D) of this
section.
For the purposes of
division
(D) of
this section,
"correct tax due" means the tax that
would have been
paid by the
pass-through entity had the single
return been filed
in a manner
reflecting
the tax
commissioner's
findings. Nothing
in
division (D) of this section
shall be
construed to make or hold
a
pass-through entity liable
for tax
attributable to a
pass-through
entity investor's
income
from a
source other than the
pass-through
entity electing
to file
the
single return. (E) If a husband and wife file a joint federal income tax
return for a taxable year, they shall file a joint return under
this section for that taxable year, and their liabilities are
joint and several, but, if the federal income tax liability of
either spouse is determined on a separate federal income tax
return, they shall file separate returns under this section. If either spouse is not required to file a federal income
tax
return and either or both are required to file a return
pursuant
to this chapter, they may elect to file separate or
joint returns,
and, pursuant to that election, their liabilities are
separate or
joint and several. If a husband and wife file
separate returns
pursuant to this chapter, each must claim the taxpayer's
own
exemption, but not both, as authorized under
section
5747.02 of
the Revised Code on the taxpayer's own
return. (F) Each return or notice required to be filed under this
section shall contain the signature of the taxpayer
or the
taxpayer's duly authorized
agent and of the person who prepared
the return for the
taxpayer, and shall include the taxpayer's
social security
number. Each return shall be verified by a
declaration
under the penalties of perjury. The tax commissioner
shall prescribe the
form that the signature and declaration shall
take. (G) Each return or notice required to be filed under this
section shall be made and filed as required by section 5747.04 of
the Revised Code, on or before the fifteenth day of April of each
year, on forms that the tax commissioner shall prescribe,
together
with remittance made payable to the treasurer of state
in the
combined amount of the state and all school district
income taxes
shown to be due on the form, unless the combined amount
shown to
be due is one dollar or less, in which case that amount
need not
be remitted.
Upon good cause shown, the tax commissioner may extend the
period
for filing any notice or return required to be filed under
this
section and may adopt rules relating to extensions. If the
extension results in an extension of time for the payment of any
state or school district income tax liability with respect to
which the return is filed, the taxpayer shall pay at the time the
tax liability is paid an amount of interest computed at the rate
per annum prescribed by section 5703.47 of the Revised Code on
that liability from the time that payment is due without
extension
to the time of actual payment. Except as
provided in section
5747.132 of the Revised Code, in
addition to all
other interest
charges and penalties, all taxes imposed under this chapter
or
Chapter 5748. of the
Revised
Code and remaining
unpaid after they
become due, except combined amounts due of one
dollar or less,
bear interest at the rate per annum prescribed by
section 5703.47
of the Revised Code until paid or until the day an
assessment is
issued under section 5747.13 of the Revised Code, whichever
occurs
first.
If the tax commissioner
considers it necessary in order to ensure
the payment of the tax imposed by
section 5747.02 of the Revised
Code or any tax imposed under
Chapter 5748. of the Revised Code,
the tax commissioner may require
returns and payments to be made
otherwise than as provided in
this section.
To the extent that any provision in this division conflicts with any provision in section 5747.026 of the Revised Code, the provision in that section prevails. (H) If any report, claim, statement, or other document
required to be filed, or any payment required to be made, within
a
prescribed period or on or before a prescribed date under this
chapter is delivered after that period or that date by United
States mail to the agency, officer, or office with which the
report, claim,
statement, or other document is required to be
filed, or to which the payment is required to be made, the date
of
the postmark stamped on the cover in which the report, claim,
statement, or other document, or payment is mailed shall be
deemed
to be the date of delivery or the date of payment. If a payment is required to be made by electronic funds
transfer pursuant to section 5747.072 of the Revised Code, the
payment is considered to be made when the payment is received by
the treasurer of state or credited to an account designated by
the
treasurer of state for the receipt of tax payments. "The date of the postmark" means, in the event there
is more
than one date on the cover, the earliest date imprinted
on the
cover by the United States postal service. (I) The amounts withheld by the employer pursuant to
section
5747.06 of the Revised Code shall be allowed to the
recipient of
the compensation as credits against payment of the
appropriate
taxes imposed on the recipient by section
5747.02 and under
Chapter 5748. of the Revised Code. (J) If, in accordance
with division (D) of this
section, a
pass-through entity elects to file a single return
and if any
investor is required to file the return and make the
payment of
taxes required by this chapter on account of the
investor's other
income that is not included in a single return
filed by a
pass-through entity, the investor is entitled to a
refundable
credit equal to the investor's proportionate share of
the tax paid
by the pass-through entity on behalf of the
investor. The
investor shall claim the credit for the
investor's taxable year in
which or with which ends the taxable
year of the pass-through
entity. Nothing in this chapter shall
be construed to allow any
credit provided in this chapter to be
claimed more than once. For
the purposes of computing any
interest, penalty, or interest
penalty, the investor shall be
deemed to have paid the refundable
credit provided by this
division on the day that the pass-through
entity paid the
estimated tax or the tax giving rise to the
credit.
Sec. 5747.113. (A) Any taxpayer claiming a refund under
section
5747.11 of the Revised Code for taxable years ending on
or after
October 14, 1983, who wishes to contribute any part of
his
the
taxpayer's refund to the natural areas and preserves
fund created
in
section 1517.11 of the Revised Code, the nongame and endangered
wildlife fund created in section 1531.26 of the Revised Code, the military injury relief fund created in section 5903.21 of the Revised Code, or
both, all or any combination of those funds may designate on
his
the taxpayer's income tax return the
amount that
he
the taxpayer wishes to contribute to the fund
or
funds. A designated
contribution is irrevocable upon the filing
of the return and
shall be made in the full amount designated if
the refund found
due the taxpayer upon the initial processing of
his
the
taxpayer's return, after any deductions including those
required by
section 5747.12 of the Revised Code, is greater than
or equal to the
designated
contribution. If the refund due as
initially determined is less
than the designated contribution, the
contribution shall be made
in the full amount of the refund. The
tax commissioner shall
subtract the amount of the contribution
from the amount of the
refund initially found due the taxpayer and
shall certify the
difference to the director of budget and
management and treasurer
of state for payment to the taxpayer in
accordance with section
5747.11 of the Revised Code. For the
purpose of any subsequent
determination of the taxpayer's net tax
payment, the contribution
shall be considered a part of the refund
paid to the taxpayer. (B) The tax commissioner shall provide a space on the income
tax
return form in which a taxpayer may indicate that
he
the
taxpayer
wishes to make a donation in accordance with this section. The
tax
commissioner shall also print in the instructions accompanying
the income tax return form a description of the purposes for
which
the natural areas and preserves fund and, the nongame and
endangered wildlife fund, and the military injury relief fund were created and the use of moneys from
the income tax refund contribution system established in this
section. No person shall designate on
his
the person's income
tax
return any
part of a refund claimed under section 5747.11 of the
Revised
Code as a contribution to any fund other than the natural
areas
and preserves fund, the nongame and endangered wildlife
fund, the military injury relief fund, or
both all or any combination of those funds. (C) The money collected under the income tax refund
contribution
system established in this section shall be
deposited by the tax
commissioner into the natural areas and
preserves fund and, the
nongame and endangered wildlife fund, and the military injury relief fund in
the amounts designated on
the tax returns. (D) No later than the thirtieth day of September each year, the
tax commissioner shall determine the total amount contributed to
each fund under this section during the preceding eight months,
any adjustments to prior months, and the cost to the department
of
taxation of administering the income tax refund contribution
system during that eight-month period. The commissioner shall
make an additional determination no later than the thirty-first
day of January of each year of the total amount contributed to
each fund under this section during the preceding four calendar
months, any adjustments to prior years made during that
four-month
period, and the cost to the department of taxation of
administering the income tax contribution system during that
period. The cost of administering the income tax contribution
system shall be certified by the tax commissioner to the director
of budget and management, who shall transfer an amount equal to
one-half one-third of such administrative costs from the natural areas and
preserves fund and one-half, one-third of such costs from the nongame and
endangered wildlife fund, and one-third of such costs from the military injury relief fund to the litter control and natural
resource tax administration fund, which is hereby created,
provided that the moneys that the department receives to pay the
cost of administering the income tax refund contribution system
in
any year shall not exceed two and one-half per cent of the
total
amount contributed under that system during that year. (E) The director of natural resources, in January of every
odd-numbered year, shall report to the general assembly on the
effectiveness of the income tax refund contribution system as it pertains to the natural areas and preserves fund and the nongame and endangered wildlife fund. The
report shall include the amount of money contributed to the
natural areas and preserves fund and the nongame and endangered
wildlife fund each fund in each of the previous five years, the amount of
money contributed directly to each fund in addition to or
independently of the income tax refund contribution system in
each
of the previous five years, and the purposes for which the
money
was expended.
Sec. 5903.21. (A) There is hereby created in the state treasury the military injury relief fund, which shall consist of money contributed to it under section 5747.113 of the Revised Code and of contributions made directly to it. Any person may contribute directly to the fund in addition to or independently of the income tax refund contribution system established in section 5747.113 of the Revised Code. Money in the fund shall be used to make grants to individuals injured while in active service as a member of the armed forces of the United States and while serving under operation Iraqi freedom or operation enduring freedom. An individual who receives a grant under this section is not precluded from receiving one or more additional grants under this section and is not precluded from being considered for or receiving assistance offered by the governor's office of veterans affairs.
(B) Rules shall be adopted under Chapter 119. of the Revised Code establishing all of the following:
(1) Forms and procedures by which individuals may apply for a grant under this section;
(2) Criteria for reviewing, evaluating, and ranking grant applications;
(3) Criteria for determining the amount of grants awarded under this section;
(4) Other matters necessary to administer the grant program established in this section.
Section 2. That existing sections 5101.184, 5747.026, 5747.08, and 5747.113 of the Revised Code are hereby repealed.
Section 3. Notwithstanding division (B)(1) of section 5919.34 of the Revised Code, the number of participants in the Ohio national guard scholarship program for the summer term occurring in the year 2005 is limited to the equivalent of one thousand full-time participants. Section 4. Sections 5747.026 and 5747.08 of the Revised Code, as amended by this act, shall apply to all years beginning on and after January 1, 2002. Section 5. This act is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, health, and safety. The reason for such necessity lies in the fact that immediate action is necessary to alleviate the income tax filing and payment burdens currently faced by members of the National Guard and reserve components of the United States armed forces who have been called to active duty. Therefore, this act shall go into immediate effect.
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