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S. B. No. 365 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Senators Turner, Sawyer, Tavares
A BILL
To amend sections 126.35 and 5747.11 and to enact
section 5747.114 of the Revised Code to require
the Department of Taxation to provide taxpayers
the option of receiving their income tax refund in
the form of a prepaid debit card.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 126.35 and 5747.11 be amended and
section 5747.114 of the Revised Code be enacted to read as
follows:
Sec. 126.35. (A) The director of budget and management shall
draw warrants against the treasurer of state pursuant to all
requests for payment that the director has approved under section
126.07 of the Revised Code.
(B) Unless a cash assistance payment is to be made by
electronic benefit transfer, payment by the director of budget and
management to a participant in the Ohio works first program
pursuant to Chapter 5107. of the Revised Code, a recipient of
disability financial assistance pursuant to Chapter 5115. of the
Revised Code, or a recipient of cash assistance provided under the
refugee assistance program established under section 5101.49 of
the Revised Code shall be made by direct deposit to the account of
the participant or recipient in the financial institution
designated under section 329.03 of the Revised Code. Payment by
the director of budget and management to a recipient of benefits
distributed through the medium of electronic benefit transfer
pursuant to section 5101.33 of the Revised Code shall be by
electronic benefit transfer. Payment by the director of budget and
management as compensation to an employee of the state who has,
pursuant to section 124.151 of the Revised Code, designated a
financial institution and account for the direct deposit of such
payments shall be made by direct deposit to the account of the
employee. Payment to any other payee who has designated a
financial institution and account for the direct deposit of such
payment may be made by direct deposit to the account of the payee
in the financial institution as provided in section 9.37 of the
Revised Code. Accounts maintained by the director of budget and
management or the director's agent in a financial institution for
the purpose of effectuating payment by direct deposit or
electronic benefit transfer shall be maintained in accordance with
section 135.18 of the Revised Code.
(C) All Except as provided in section 5747.114 of the Revised
Code, all other payments from the state treasury shall be made by
paper warrants or by direct deposit payable to the respective
payees. The director of budget and management may mail the paper
warrants to the respective payees or distribute them through other
state agencies, whichever the director determines to be the better
procedure.
(D) If the average per transaction cost the director of
budget and management incurs in making direct deposits for a state
agency exceeds the average per transaction cost the director
incurs in drawing paper warrants for all public offices during the
same period of time, the director may certify the difference in
cost and the number of direct deposits for the agency to the
director of administrative services. The director of
administrative services shall reimburse the director of budget and
management for such additional costs and add the amount to the
processing charge assessed upon the state agency.
Sec. 5747.11. (A) The tax commissioner shall refund to
employers, qualifying entities, or taxpayers, with respect to any
tax imposed under section 5733.41, 5747.02, or 5747.41, or Chapter
5748. of the Revised Code:
(1) Overpayments of more than one dollar;
(2) Amounts in excess of one dollar paid illegally or
erroneously;
(3) Amounts in excess of one dollar paid on an illegal,
erroneous, or excessive assessment.
(B) Except as otherwise provided under divisions (D) and (E)
of this section, applications for refund shall be filed with the
tax commissioner, on the form prescribed by the commissioner,
within four years from the date of the illegal, erroneous, or
excessive payment of the tax, or within any additional period
allowed by division (B)(3)(b) of section 5747.05, division (B) of
section 5747.10, division (A) of section 5747.13, or division (C)
of section 5747.45 of the Revised Code.
On filing of the refund application, the commissioner shall
determine the amount of refund due and certify such amount to the
director of budget and management and treasurer of state for
payment from the tax refund fund created by section 5703.052 of
the Revised Code. Payment shall be made as provided in section
5747.114 or division (C) of section 126.35 of the Revised Code.
(C)(1) Interest shall be allowed and paid upon any illegal or
erroneous assessment in excess of one dollar in respect of the tax
imposed under section 5747.02 or Chapter 5748. of the Revised Code
at the rate per annum prescribed by section 5703.47 of the Revised
Code from the date of the payment of the illegal or erroneous
assessment until the date the refund of such amount is paid. If
such refund results from the filing of a return or report, or the
payment accompanying such return or report, by an employer or
taxpayer, rather than from an assessment by the commissioner, such
interest shall run from a period ninety days after the final
filing date of the annual return until the date the refund is
paid.
(2) Interest shall be allowed and paid at the rate per annum
prescribed by section 5703.47 of the Revised Code upon any
overpayment in excess of one dollar in respect of the tax imposed
under section 5747.02 or Chapter 5748. of the Revised Code from
the date of the overpayment until the date of the refund of the
overpayment, except that if any overpayment is refunded within
ninety days after the final filing date of the annual return or
ninety days after the return is filed, whichever is later, no
interest shall be allowed on such overpayment. If the overpayment
results from the carryback of a net operating loss or net capital
loss to a previous taxable year, the overpayment is deemed not to
have been made prior to the filing date, including any extension
thereof, for the taxable year in which the net operating loss or
net capital loss arises. For purposes of the payment of interest
on overpayments, no amount of tax, for any taxable year, shall be
treated as having been paid before the date on which the tax
return for that year was due without regard to any extension of
time for filing such return.
(3) Interest shall be allowed at the rate per annum
prescribed by section 5703.47 of the Revised Code on amounts
refunded with respect to the taxes imposed under sections 5733.41
and 5747.41 of the Revised Code. The interest shall run from
whichever of the following days is the latest until the day the
refund is paid: the day the illegal, erroneous, or excessive
payment was made; the ninetieth day after the final day the annual
report was required to be filed under section 5747.42 of the
Revised Code; or the ninetieth day after the day that report was
filed.
(D) "Ninety days" shall be substituted for "four years" in
division (B) of this section if the taxpayer satisfies both of the
following conditions:
(1) The taxpayer has applied for a refund based in whole or
in part upon section 5747.059 of the Revised Code;
(2) The taxpayer asserts that either the imposition or
collection of the tax imposed or charged by this chapter or any
portion of such tax violates the Constitution of the United States
or the Constitution of Ohio.
(E)(1) Division (E)(2) of this section applies only if all of
the following conditions are satisfied:
(a) A qualifying entity pays an amount of the tax imposed by
section 5733.41 or 5747.41 of the Revised Code;
(b) The taxpayer is a qualifying investor as to that
qualifying entity;
(c) The taxpayer did not claim the credit provided for in
section 5747.059 of the Revised Code as to the tax described in
division (E)(1)(a) of this section;
(d) The four-year period described in division (B) of this
section has ended as to the taxable year for which the taxpayer
otherwise would have claimed that credit.
(2) A taxpayer shall file an application for refund pursuant
to division (E) of this section within one year after the date the
payment described in division (E)(1)(a) of this section is made.
An application filed under division (E)(2) of this section shall
claim refund only of overpayments resulting from the taxpayer's
failure to claim the credit described in division (E)(1)(c) of
this section. Nothing in division (E) of this section shall be
construed to relieve a taxpayer from complying with division
(A)(16) of section 5747.01 of the Revised Code.
Sec. 5747.114. The tax commissioner shall establish a
program for the payment of income tax refunds by prepaid debit
card. Under the program, the commissioner shall provide a space on
the income tax return form in which a taxpayer may elect to
receive a tax refund in the form of a prepaid debit card. The form
shall also state the other refund payment options available to the
taxpayer. The commissioner shall describe in the instructions
accompanying the income tax return the features of the prepaid
debit card program, including any fee or fees which may be charged
to the taxpayer in accessing the taxpayer's refund.
The commissioner shall enter into agreements with one or more
prepaid debit card issuers whereby the issuer agrees to supply
prepaid debit cards for taxpayers and to credit prepaid debit
cards with the refund amounts specified by the commissioner. Each
such agreement shall specify that any fees associated with the use
of a prepaid debit card shall be incurred by the taxpayer.
Section 2. That existing sections 126.35 and 5747.11 of the
Revised Code are hereby repealed.
Section 3. The amendment or enactment by this act of sections
126.35, 5747.11, and 5747.114 of the Revised Code applies to
taxable years beginning on or after January 1, 2012.
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