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The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
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S. B. No. 384 As IntroducedAs Introduced
| 129th General Assembly | | Regular Session | | 2011-2012 |
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Cosponsor:
Senator Schaffer
A BILL
To amend section 5747.02 and to enact section 101.88
of the Revised Code to establish a Joint Committee
on Government Efficiency that, on or before August
1, 2014, must issue a report recommending the
elimination or consolidation of state agencies and
proposing an income tax rate reduction
corresponding to the savings projected from its
recommendations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5747.02 be amended and section
101.88 of the Revised Code be enacted to read as follows:
Sec. 101.88. (A) There is hereby created in the general
assembly the joint committee on government efficiency. The
committee shall review the functions and duties of state agencies,
departments, commissions, councils, boards, and similar public
bodies established pursuant to state statute for the exercise of
any function of state government. Upon such review, the committee
shall issue recommendations for the elimination or consolidation
of such bodies.
(B) The committee shall be composed of six members. The
president of the senate shall appoint three members of the senate
to the committee. The speaker of the house of representatives
shall appoint three members of the house of representatives to the
committee. Not more than two members from each house shall be of
the same political party. Members shall be appointed within
fifteen days after the commencement of the first regular session
of the 130th general assembly and shall serve for a term ending on
December 31, 2014. A vacancy on the committee shall be filled in
the same manner as the original appointment.
(C) The committee shall meet at least once in January 2013
and once each month thereafter until the committee issues the
report required under division (D) of this section. The president
of the senate shall designate one member of the committee to serve
as chairperson for the purposes of the first meeting of the
committee. At the first meeting, the committee members shall
select one member to serve as chairperson and one member to serve
as vice-chairperson. Four members of the committee shall
constitute a quorum for the conduct of committee business, except
that the committee may hear testimony as a subcommittee with a
minimum of one member present.
(D) The committee shall issue a written report, not later
than August 1, 2014, to the speaker and minority leader of the
house of representatives, to the president and minority leader of
the senate, and to the clerks of the senate and of the house of
representatives. The report shall include all of the following:
(1) Recommendations for the elimination or consolidation of
reviewed state agencies, departments, commissions, councils,
boards, or other public bodies;
(2) An estimate of the expected annual savings that would
result from the adoption of the committee's recommendations;
(3) Draft legislation that implements the committee's
recommendations and that proposes a reduction in the rates of the
tax levied under section 5747.02 of the Revised Code equal to the
percentage that the estimated annual savings reported under
division (D)(2) of this section is of the total revenue received
from that tax in fiscal year 2014.
The clerk of the senate, immediately upon receiving the
report, shall certify a copy of the report to the tax
commissioner, together with a certification by the clerk that the
clerk received the report not later than August 1, 2014, and the
commissioner shall thereupon enter the fact of the receipt of the
copy of the report and certification in the commissioner's
journal.
The committee may request the assistance of the office of
budget and management in calculating the estimates and proposed
tax rate reductions reported under divisions (D)(2) and (3) of
this section.
Any report issued under this section shall have received the
approval of a majority of the members of the committee. If the
committee fails to issue a report on or before August 1, 2014, the
tax rate reductions described in division (B)(2) of section
5747.02 of the Revised Code shall take effect on January 1, 2015.
(E) Members of the committee shall receive no compensation
and shall not be reimbursed for their expenses incurred in the
performance of their official duties. Any expenses of the
committee shall be paid from the funds appropriated for the
payment of expenses of legislative committees.
Sec. 5747.02. (A) For the purpose of providing revenue for
the support of schools and local government functions, to provide
relief to property taxpayers, to provide revenue for the general
revenue fund, and to meet the expenses of administering the tax
levied by this chapter, there is hereby levied on every
individual, trust, and estate residing in or earning or receiving
income in this state, on every individual, trust, and estate
earning or receiving lottery winnings, prizes, or awards pursuant
to Chapter 3770. of the Revised Code, on every individual, trust,
and estate earning or receiving winnings on casino gaming, and on
every individual, trust, and estate otherwise having nexus with or
in this state under the Constitution of the United States, an
annual tax measured in the case of individuals by Ohio adjusted
gross income less an exemption for the taxpayer, the taxpayer's
spouse, and each dependent as provided in section 5747.025 of the
Revised Code; measured in the case of trusts by modified Ohio
taxable income under division (D) of this section; and measured in
the case of estates by Ohio taxable income. The tax imposed by
this section on the balance thus obtained is hereby levied as
follows:
(1) For taxable years beginning in 2004:
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
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| OR |
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| MODIFIED OHIO |
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| TAXABLE INCOME (TRUSTS) |
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| OR |
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| OHIO TAXABLE INCOME (ESTATES) |
TAX |
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| $5,000 or less |
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.743% |
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| More than $5,000 but not more than $10,000 |
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$37.15 plus 1.486% of the amount in excess of $5,000 |
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| More than $10,000 but not more than $15,000 |
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$111.45 plus 2.972% of the amount in excess of $10,000 |
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| More than $15,000 but not more than $20,000 |
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$260.05 plus 3.715% of the amount in excess of $15,000 |
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| More than $20,000 but not more than $40,000 |
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$445.80 plus 4.457% of the amount in excess of $20,000 |
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| More than $40,000 but not more than $80,000 |
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$1,337.20 plus 5.201% of the amount in excess of $40,000 |
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| More than $80,000 but not more than $100,000 |
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$3,417.60 plus 5.943% of the amount in excess of $80,000 |
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| More than $100,000 but not more than $200,000 |
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$4,606.20 plus 6.9% of the amount in excess of $100,000 |
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| More than $200,000 |
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$11,506.20 plus 7.5% of the amount in excess of $200,000 |
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(2) For taxable years beginning in 2005:
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
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| OR |
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| MODIFIED OHIO |
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| TAXABLE INCOME (TRUSTS) |
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| OR |
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| OHIO TAXABLE INCOME (ESTATES) |
TAX |
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| $5,000 or less |
|
.712% |
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| More than $5,000 but not more than $10,000 |
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$35.60 plus 1.424% of the amount in excess of $5,000 |
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| More than $10,000 but not more than $15,000 |
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$106.80 plus 2.847% of the amount in excess of $10,000 |
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| More than $15,000 but not more than $20,000 |
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$249.15 plus 3.559% of the amount in excess of $15,000 |
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| More than $20,000 but not more than $40,000 |
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$427.10 plus 4.27% of the amount in excess of $20,000 |
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| More than $40,000 but not more than $80,000 |
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$1,281.10 plus 4.983% of the amount in excess of $40,000 |
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| More than $80,000 but not more than $100,000 |
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$3,274.30 plus 5.693% of the amount in excess of $80,000 |
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| More than $100,000 but not more than $200,000 |
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$4,412.90 plus 6.61% of the amount in excess of $100,000 |
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| More than $200,000 |
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$11,022.90 plus 7.185% of the amount in excess of $200,000 |
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(3) For taxable years beginning in 2006:
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
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| OR |
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| MODIFIED OHIO |
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| TAXABLE INCOME (TRUSTS) |
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| OR |
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| OHIO TAXABLE INCOME (ESTATES) |
TAX |
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| $5,000 or less |
|
.681% |
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| More than $5,000 but not more than $10,000 |
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$34.05 plus 1.361% of the amount in excess of $5,000 |
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| More than $10,000 but not more than $15,000 |
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$102.10 plus 2.722% of the amount in excess of $10,000 |
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| More than $15,000 but not more than $20,000 |
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$238.20 plus 3.403% of the amount in excess of $15,000 |
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| More than $20,000 but not more than $40,000 |
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$408.35 plus 4.083% of the amount in excess of $20,000 |
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| More than $40,000 but not more than $80,000 |
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$1,224.95 plus 4.764% of the amount in excess of $40,000 |
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| More than $80,000 but not more than $100,000 |
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$3,130.55 plus 5.444% of the amount in excess of $80,000 |
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| More than $100,000 but not more than $200,000 |
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$4,219.35 plus 6.32% of the amount in excess of $100,000 |
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| More than $200,000 |
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$10,539.35 plus 6.87% of the amount in excess of $200,000 |
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(4) For taxable years beginning in 2007:
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
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| OR |
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| MODIFIED OHIO |
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| TAXABLE INCOME (TRUSTS) |
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| OR |
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| OHIO TAXABLE INCOME (ESTATES) |
TAX |
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| $5,000 or less |
|
.649% |
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| More than $5,000 but not more than $10,000 |
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$32.45 plus 1.299% of the amount in excess of $5,000 |
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| More than $10,000 but not more than $15,000 |
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$97.40 plus 2.598% of the amount in excess of $10,000 |
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| More than $15,000 but not more than $20,000 |
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$227.30 plus 3.247% of the amount in excess of $15,000 |
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| More than $20,000 but not more than $40,000 |
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$389.65 plus 3.895% of the amount in excess of $20,000 |
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| More than $40,000 but not more than $80,000 |
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$1,168.65 plus 4.546% of the amount in excess of $40,000 |
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| More than $80,000 but not more than $100,000 |
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$2,987.05 plus 5.194% of the amount in excess of $80,000 |
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| More than $100,000 but not more than $200,000 |
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$4,025.85 plus 6.031% of the amount in excess of $100,000 |
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| More than $200,000 |
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$10,056.85 plus 6.555% of the amount in excess of $200,000 |
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(5) For taxable years beginning in 2008, 2009, or 2010:
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
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| OR |
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| MODIFIED OHIO |
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|
|
| TAXABLE INCOME (TRUSTS) |
|
|
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| OR |
|
|
|
| OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
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| $5,000 or less |
|
.618% |
|
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| More than $5,000 but not more than $10,000 |
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$30.90 plus 1.236% of the amount in excess of $5,000 |
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| More than $10,000 but not more than $15,000 |
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$92.70 plus 2.473% of the amount in excess of $10,000 |
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| More than $15,000 but not more than $20,000 |
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$216.35 plus 3.091% of the amount in excess of $15,000 |
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| More than $20,000 but not more than $40,000 |
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$370.90 plus 3.708% of the amount in excess of $20,000 |
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| More than $40,000 but not more than $80,000 |
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$1,112.50 plus 4.327% of the amount in excess of $40,000 |
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| More than $80,000 but not more than $100,000 |
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$2,843.30 plus 4.945% of the amount in excess of $80,000 |
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| More than $100,000 but not more than $200,000 |
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$3,832.30 plus 5.741% of the amount in excess of $100,000 |
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| More than $200,000 |
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$9,573.30 plus 6.24% of the amount in excess of $200,000 |
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(6) For taxable years beginning in 2011 or thereafter:
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
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| OR |
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| MODIFIED OHIO |
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|
| TAXABLE INCOME (TRUSTS) |
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| OR |
|
|
|
| OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
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| $5,000 or less |
|
.587% |
|
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| More than $5,000 but not more than $10,000 |
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$29.35 plus 1.174% of the amount in excess of $5,000 |
|
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| More than $10,000 but not more than $15,000 |
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$88.05 plus 2.348% of the amount in excess of $10,000 |
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| More than $15,000 but not more than $20,000 |
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$205.45 plus 2.935% of the amount in excess of $15,000 |
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| More than $20,000 but not more than $40,000 |
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$352.20 plus 3.521% of the amount in excess of $20,000 |
|
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| More than $40,000 but not more than $80,000 |
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$1,056.40 plus 4.109% of the amount in excess of $40,000 |
|
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| More than $80,000 but not more than $100,000 |
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$2,700.00 plus 4.695% of the amount in excess of $80,000 |
|
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| More than $100,000 but not more than $200,000 |
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$3,639.00 plus 5.451% of the amount in excess of $100,000 |
|
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| More than $200,000 |
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$9,090.00 plus 5.925% of the amount in excess of $200,000 |
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In July of each year, beginning in 2010, the tax commissioner
shall adjust the income amounts prescribed in this division by
multiplying the percentage increase in the gross domestic product
deflator computed that year under section 5747.025 of the Revised
Code by each of the income amounts resulting from the adjustment
under this division in the preceding year, adding the resulting
product to the corresponding income amount resulting from the
adjustment in the preceding year, and rounding the resulting sum
to the nearest multiple of fifty dollars. The tax commissioner
also shall recompute each of the tax dollar amounts to the extent
necessary to reflect the adjustment of the income amounts. The
rates of taxation shall not be adjusted.
The adjusted amounts apply to taxable years beginning in the
calendar year in which the adjustments are made. The tax
commissioner shall not make such adjustments in any year in which
the amount resulting from the adjustment would be less than the
amount resulting from the adjustment in the preceding year.
(B)(1) If the director of budget and management makes a
certification to the tax commissioner under division (B) of
section 131.44 of the Revised Code, the amount of tax as
determined under division (A) of this section shall be reduced by
the percentage prescribed in that certification for taxable years
beginning in the calendar year in which that certification is
made, in addition to any reduction required under division (B)(2)
of this section.
(2) If the joint committee on government efficiency fails to
issue the report described in division (D) of section 101.88 of
the Revised Code on or before August 1, 2014, as evidenced by the
tax commissioner's receipt of a copy of the report and the
certification as provided in that division, the amount of tax as
determined under division (A) of this section shall be reduced by
five per cent for taxable years beginning on or after January 1,
2015, in addition to any reduction under division (B)(1) of this
section. The resulting rates shall be rounded to the nearest one
thousandth of one per cent.
(C) The levy of this tax on income does not prevent a
municipal corporation, a joint economic development zone created
under section 715.691, or a joint economic development district
created under section 715.70 or 715.71 or sections 715.72 to
715.81 of the Revised Code from levying a tax on income.
(D) This division applies only to taxable years of a trust
beginning in 2002 or thereafter.
(1) The tax imposed by this section on a trust shall be
computed by multiplying the Ohio modified taxable income of the
trust by the rates prescribed by division (A) of this section.
(2) A resident trust may claim a credit against the tax
computed under division (D) of this section equal to the lesser of
(1) the tax paid to another state or the District of Columbia on
the resident trust's modified nonbusiness income, other than the
portion of the resident trust's nonbusiness income that is
qualifying investment income as defined in section 5747.012 of the
Revised Code, or (2) the effective tax rate, based on modified
Ohio taxable income, multiplied by the resident trust's modified
nonbusiness income other than the portion of the resident trust's
nonbusiness income that is qualifying investment income. The
credit applies before any other applicable credits.
(3) The credits enumerated in divisions (A)(1) to (13) of
section 5747.98 of the Revised Code do not apply to a trust
subject to division (D) of this section. Any credits enumerated in
other divisions of section 5747.98 of the Revised Code apply to a
trust subject to division (D) of this section. To the extent that
the trust distributes income for the taxable year for which a
credit is available to the trust, the credit shall be shared by
the trust and its beneficiaries. The tax commissioner and the
trust shall be guided by applicable regulations of the United
States treasury regarding the sharing of credits.
(E) For the purposes of this section, "trust" means any trust
described in Subchapter J of Chapter 1 of the Internal Revenue
Code, excluding trusts that are not irrevocable as defined in
division (I)(3)(b) of section 5747.01 of the Revised Code and that
have no modified Ohio taxable income for the taxable year,
charitable remainder trusts, qualified funeral trusts and preneed
funeral contract trusts established pursuant to sections 4717.31
to 4717.38 of the Revised Code that are not qualified funeral
trusts, endowment and perpetual care trusts, qualified settlement
trusts and funds, designated settlement trusts and funds, and
trusts exempted from taxation under section 501(a) of the Internal
Revenue Code.
Section 2. That existing section 5747.02 of the Revised Code
is hereby repealed.
Section 3. That section 101.88 of the Revised Code is hereby
repealed, effective December 31, 2014.
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