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H. B. No. 162 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsors:
Representatives Ujvagi, Healy, Hughes, Stebelton, Domenick
A BILL
To amend sections 5747.08 and 5747.98 and to enact section 5747.71 of the Revised Code to allow a refundable credit against the personal income tax for taxpayers who teach in and reside in a big eight school district and to allow an additional credit for such teachers who teach math, science, or technology.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5747.08 and 5747.98 be amended and section 5747.71 of the Revised Code be enacted to read as follows:
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;
(m) The low-income credit under section 5747.056 of the Revised Code;
(n) The big eight school district teacher credits under section 5747.71 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. 5747.71. As used in this section, "big eight school district" has the same meaning as in section 3314.02 of the Revised Code.
(A) A refundable credit is allowed against the tax imposed by section 5747.02 of the Revised Code for a taxpayer who, for the entire period that school is open for instruction and that ends in the taxable year, excluding summer school, is employed as a teacher by a big eight school district and resides in the same district.
(B) An additional refundable credit is allowed against the tax imposed by section 5747.02 of the Revised Code for a taxpayer who qualifies for the credit allowed under division (A) of this section and who is employed to teach mathematics, science, or technology for that entire period.
(C) The amount of each credit is equal to one-half of one per cent of the taxpayer's Ohio adjusted gross income. In the case of a joint return, the amount of each credit is equal to one-half of one per cent of the taxpayer's adjusted gross income as if the taxpayer had filed an individual return.
The credits shall be claimed in the order required under section 5747.98 of the Revised Code. If the amount of the credit exceeds the amount of tax otherwise due under section 5747.02 of the Revised Code after deduction of all other credits in that order, the taxpayer is entitled to a refund of the excess.
Sec. 5747.98. (A) To provide a uniform procedure for
calculating the amount of tax due under section 5747.02 of the
Revised Code, a taxpayer shall claim any credits to which the
taxpayer is
entitled in the following order:
(1) The retirement income credit under division (B) of
section 5747.055 of the Revised Code;
(2) The senior citizen credit under division (C) of
section
5747.05 of the Revised Code;
(3) The lump sum distribution credit under division (D) of
section 5747.05 of the Revised Code;
(4) The dependent care credit under section 5747.054 of
the
Revised Code;
(5) The lump sum retirement income credit under division
(C)
of section 5747.055 of the Revised Code;
(6) The lump sum retirement income credit under division
(D)
of section 5747.055 of the Revised Code;
(7) The lump sum retirement income credit under division
(E)
of section 5747.055 of the Revised Code;
(8) The low-income credit under section 5747.056 of the Revised Code;
(9) The credit for displaced workers who pay for job
training under section 5747.27 of the Revised Code;
(10) The campaign contribution credit under section
5747.29
of
the Revised Code;
(11) The twenty-dollar personal exemption credit under
section 5747.022 of the Revised Code;
(12) The joint filing credit under division (G) of
section
5747.05 of the Revised Code;
(13) The nonresident credit under division (A) of
section
5747.05 of the Revised Code;
(14) The credit for a resident's out-of-state income
under
division (B) of section 5747.05 of the Revised Code;
(15) The credit for employers that enter
into agreements
with child day-care centers under section 5747.34 of the
Revised
Code;
(16) The credit for employers that reimburse employee
child
care expenses under section 5747.36 of the Revised Code;
(17) The credit for adoption of a minor child under section
5747.37 of the Revised Code;
(18) The credit for purchases of lights and reflectors under
section
5747.38 of the Revised Code;
(19)
The job retention credit under division (B) of section
5747.058 of the Revised Code;
(20) The credit for purchases of new manufacturing
machinery
and equipment
under section 5747.26 or section 5747.261
of the
Revised Code;
(21) The second credit for purchases of new
manufacturing
machinery and
equipment and the credit for using
Ohio coal under
section 5747.31 of the
Revised Code;
(22) The job training credit under section 5747.39 of
the
Revised Code;
(23) The enterprise zone credit under section 5709.66 of
the
Revised Code;
(24) The credit for the eligible costs associated with a
voluntary action
under section 5747.32 of the Revised Code;
(25) The credit
for employers that establish on-site
child
day-care centers under section
5747.35 of the Revised Code;
(26)
The ethanol plant investment credit under section
5747.75 of the Revised Code;
(27) The credit for purchases of qualifying grape
production
property under section 5747.28 of the Revised Code;
(28) The export sales credit under section 5747.057 of
the
Revised Code;
(29) The credit for research and development and
technology
transfer investors under section 5747.33 of the Revised
Code;
(30)
The enterprise zone credits under
section 5709.65
of
the
Revised Code;
(31) The research and development credit under section 5747.331 of the Revised Code;
(32) The refundable jobs creation credit
under
division
(A)
of section
5747.058 of the Revised Code;
(33) The refundable credit for taxes paid by a
qualifying
entity granted under section 5747.059 of the Revised
Code;
(34) The refundable credits for taxes paid by a
qualifying
pass-through
entity granted under division (J) of
section 5747.08
of the Revised Code;
(35) The refundable credit for tax withheld under
division
(B)(1) of section 5747.062 of the Revised Code;
(36) The refundable credit under section 5747.80 of the Revised Code for losses on loans made to the Ohio venture
capital program under sections 150.01 to 150.10 of the Revised
Code;
(37) The refundable big eight school district teacher credits under section 5747.71 of the Revised Code.
(B) For any credit, except the credits enumerated
in divisions (A)(32) to (36)(37) of
this
section
and
the
credit granted under division
(I) of
section
5747.08 of
the
Revised Code, the amount of the credit
for
a
taxable year
shall
not
exceed the tax due after allowing for any
other credit
that
precedes it in the order required under this
section. Any
excess
amount of a particular credit may be carried
forward if
authorized
under the section creating that credit.
Nothing in this
chapter
shall be construed to allow a taxpayer to
claim, directly
or
indirectly, a
credit more than once for a
taxable year.
Section 2. That existing sections 5747.08 and 5747.98 of the Revised Code are hereby repealed.
Section 3. The amendment or enactment by this act of sections 5747.08, 5747.71, and 5747.98 of the Revised Code apply to taxable years beginning on or after January 1, 2007.
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