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H. B. No. 206 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Representatives Ashford, Milkovich, O'Brien, Reece, Yuko
A BILL
To amend sections 5747.08, 5747.113, and 5747.98 and
to enact sections 5502.53 and 5747.65 of the
Revised Code to allow taxpayers to contribute a
portion of their income tax refunds to community
policing efforts and to grant a nonrefundable
income tax credit for taxpayers who donate to
community safety programs.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5747.08, 5747.113, and 5747.98 be
amended and sections 5502.53 and 5747.65 of the Revised Code be
enacted to read as follows:
Sec. 5502.53. (A) There is hereby created in the state
treasury the community policing 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 or entity 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.
(B) Upon application, the director of public safety shall
grant money in the fund to community safety programs.
(C) The director shall adopt rules under Chapter 119. of the
Revised Code establishing all of the following:
(1) Forms and procedures by which programs may apply for a
grant under this section and to apply for approval to receive
contributions for which an income tax credit may be claimed under
section 5747.65 of the Revised Code;
(2) Criteria for reviewing, evaluating, and approving or
denying grant applications;
(3) Criteria for determining the amount of grants awarded
under this section;
(4) Definitions and standards applicable to determining
whether a program meets the requirements established in division
(B) of this section for the purpose of receiving a grant under
this section or being approved to receive contributions for which
an income tax credit may be claimed under section 5747.65 of the
Revised Code;
(5) The process for appealing eligibility determinations;
(6) Any other rules necessary to administer the grant program
established in this section.
(D) An eligibility determination, a grant approval, or a
grant denial made under this section may not be appealed under
Chapter 119. or any other provision of the Revised Code.
(E) The director shall compile and post on the department's
web site a list of community safety programs that qualify for the
grants under this section and are approved for the purpose of
determining a taxpayer's eligibility for the community safety
program income tax credit under section 5747.65 of the Revised
Code.
(F) As used in this section, "community safety program" means
a law enforcement volunteer program formed to observe activities
within a neighborhood, to report the volunteers' observations to a
law enforcement agency, and to take other actions intended to
reduce crime or other violations of state law or municipal
ordinances and resolutions in the neighborhood. "Law enforcement
agency" has the same meaning as in section 109.573 of the Revised
Code and also includes the office of any village marshal, any
police force of a metropolitan housing authority, any state
university law enforcement officer department, the office of any
township constable, and any other state agency or municipal,
township, or county department that enforces laws or regulations.
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 community safety program contribution credit under
section 5747.65 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.
(K) The tax commissioner shall ensure that each return
required to be filed under this section includes a box that the
taxpayer may check to authorize a paid tax preparer who prepared
the return to communicate with the department of taxation about
matters pertaining to the return. The return or instructions
accompanying the return shall indicate that by checking the box
the taxpayer authorizes the department of taxation to contact the
preparer concerning questions that arise during the processing of
the return and authorizes the preparer only to provide the
department with information that is missing from the return, to
contact the department for information about the processing of the
return or the status of the taxpayer's refund or payments, and to
respond to notices about mathematical errors, offsets, or return
preparation that the taxpayer has received from the department and
has shown to the preparer.
(L) The tax commissioner shall permit individual taxpayers to
instruct the department of taxation to cause any refund of
overpaid taxes to be deposited directly into a checking account,
savings account, or an individual retirement account or individual
retirement annuity, or preexisting college savings plan or program
account offered by the Ohio tuition trust authority under Chapter
3334. of the Revised Code, as designated by the taxpayer, when the
taxpayer files the annual return required by this section
electronically.
(M) The tax commissioner may adopt rules to administer this
section.
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 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 5101.98 of the
Revised Code, the community policing fund created in section
5502.53 of the Revised Code, or all of those funds, may designate
on the taxpayer's income tax return the amount that 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 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 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, the nongame and endangered
wildlife fund, and the military injury relief fund, and the
community policing fund were created and the use of moneys from
the income tax refund contribution system established in this
section. No person shall designate on 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 all of those funds the
community policing fund.
(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,
the nongame and endangered wildlife fund, and the military injury
relief fund, and the community policing 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-third
one-fourth of such administrative costs from the natural areas and
preserves fund, one-third one-fourth of such costs from the
nongame and endangered wildlife fund, and one-third one-fourth of
such costs from the military injury relief fund, and one-fourth of
such costs from the community policing 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)(1) 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 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.
(2) The director of job and family services and the director
of public safety, in January of every odd-numbered year, each
shall report to the general assembly on the effectiveness of the
income tax refund contribution system as it pertains to the
military injury relief fund and the community policing fund,
respectively. The report shall include the amount of money
contributed to the fund in each of the previous five years, the
amount of money contributed directly to the 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. 5747.65. A nonrefundable credit is allowed against the
tax imposed by section 5747.02 of the Revised Code for
contributions of money to a community safety program that has been
approved by the director of public safety under section 5502.53 of
the Revised Code. The amount of the credit for a taxable year
equals the lesser of the amount contributed by the taxpayer or, if
the taxpayer is a married individual, the taxpayer's spouse,
during the taxable year or fifty dollars in the case of an
individual return, or one hundred dollars in the case of a joint
return. In addition to contributions to such approved community
safety programs, any contribution to the community policing fund
created under section 5502.53 of the Revised Code, either directly
or through the voluntary tax refund donation program in section
5747.113 of the Revised Code, qualify for the credit under this
section.
The taxpayer shall claim the credit in the order required
under section 5747.98 of the Revised Code. The credit for a
taxable year shall not exceed the tax otherwise due for that year
after allowing for any other credits that precede the credit under
this section in that order.
As used in this section, "community safety program" has the
same meaning as in section 5502.53 of the Revised Code.
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 nonrefundable job retention credit under division
(B) of section 5747.058 of the Revised Code;
(20) The community safety program contribution credit under
section 5747.65 of the Revised Code.
(21) The credit for selling alternative fuel under section
5747.77 of the Revised Code;
(21)(22) 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)(23) The job training credit under section 5747.39 of the
Revised Code;
(23)(24) The enterprise zone credit under section 5709.66 of
the Revised Code;
(24)(25) The credit for the eligible costs associated with a
voluntary action under section 5747.32 of the Revised Code;
(25)(26) The credit for employers that establish on-site
child day-care centers under section 5747.35 of the Revised Code;
(26)(27) The ethanol plant investment credit under section
5747.75 of the Revised Code;
(27)(28) The credit for purchases of qualifying grape
production property under section 5747.28 of the Revised Code;
(28)(29) The export sales credit under section 5747.057 of
the Revised Code;
(29)(30) The credit for research and development and
technology transfer investors under section 5747.33 of the Revised
Code;
(30)(31) The enterprise zone credits under section 5709.65 of
the Revised Code;
(31)(32) The research and development credit under section
5747.331 of the Revised Code;
(32)(33) The credit for rehabilitating a historic building
under section 5747.76 of the Revised Code;
(33)(34) The refundable credit for rehabilitating a historic
building under section 5747.76 of the Revised Code;
(34)(35) The refundable jobs creation credit or job retention
credit under division (A) of section 5747.058 of the Revised Code;
(35)(36) The refundable credit for taxes paid by a qualifying
entity granted under section 5747.059 of the Revised Code;
(36)(37) The refundable credits for taxes paid by a
qualifying pass-through entity granted under division (J) of
section 5747.08 of the Revised Code;
(37)(38) The refundable credit for tax withheld under
division (B)(1) of section 5747.062 of the Revised Code;
(38)(39) The refundable credit for tax withheld under section
5747.063 of the Revised Code;
(39)(40) 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;
(40)(41) The refundable motion picture production credit
under section 5747.66 of the Revised Code.
(B) For any credit, except the refundable credits enumerated
in 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, 5747.113, and
5747.98 of the Revised Code are hereby repealed.
Section 3. The amendment or enactment by this act of sections
5747.08, 5747.113, 5747.65, and 5747.98 of the Revised Code
applies to taxable years beginning on or after January 1, 2011.
Section 4. Section 5747.08 of the Revised Code is presented
in this act as a composite of the section as amended by both Sub.
S.B. 155 and Am. Sub. S.B. 194 of the 128th General Assembly. The
General Assembly, applying the principle stated in division (B) of
section 1.52 of the Revised Code that amendments are to be
harmonized if reasonably capable of simultaneous operation, finds
that the composite is the resulting version of the section in
effect prior to the effective date of the section as presented in
this act.
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