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.
|
H. B. No. 188 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
| |
Cosponsors:
Representatives Butler, Brenner, Buchy, Adams, J., Young, Hood, Roegner, Maag, Terhar, Retherford, Reece
A BILL
To amend section 5747.05 of the Revised Code to
change the computation of the income tax joint
filer credit so that the credit results in joint
filers paying the same amount of combined tax on a
joint return as they would on separate returns.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5747.05 of the Revised Code be
amended to read as follows:
Sec. 5747.05. As used in this section, "income tax" includes
both a tax on net income and a tax measured by net income.
The following credits shall be allowed against the income tax
imposed by section 5747.02 of the Revised Code on individuals and
estates:
(A)(1) The amount of tax otherwise due under section 5747.02
of the Revised Code on such portion of the adjusted gross income
of any nonresident taxpayer that is not allocable to this state
pursuant to sections 5747.20 to 5747.23 of the Revised Code;
(2) The credit provided under this division shall not exceed
the portion of the total tax due under section 5747.02 of the
Revised Code that the amount of the nonresident taxpayer's
adjusted gross income not allocated to this state pursuant to
sections 5747.20 to 5747.23 of the Revised Code bears to the total
adjusted gross income of the nonresident taxpayer derived from all
sources everywhere.
(3) The tax commissioner may enter into an agreement with the
taxing authorities of any state or of the District of Columbia
that imposes an income tax to provide that compensation paid in
this state to a nonresident taxpayer shall not be subject to the
tax levied in section 5747.02 of the Revised Code so long as
compensation paid in such other state or in the District of
Columbia to a resident taxpayer shall likewise not be subject to
the income tax of such other state or of the District of Columbia.
(B) The lesser of division (B)(1) or (2) of this section:
(1) The amount of tax otherwise due under section 5747.02 of
the Revised Code on such portion of the adjusted gross income of a
resident taxpayer that in another state or in the District of
Columbia is subjected to an income tax. The credit provided under
division (B)(1) of this section shall not exceed the portion of
the total tax due under section 5747.02 of the Revised Code that
the amount of the resident taxpayer's adjusted gross income
subjected to an income tax in the other state or in the District
of Columbia bears to the total adjusted gross income of the
resident taxpayer derived from all sources everywhere.
(2) The amount of income tax liability to another state or
the District of Columbia on the portion of the adjusted gross
income of a resident taxpayer that in another state or in the
District of Columbia is subjected to an income tax. The credit
provided under division (B)(2) of this section shall not exceed
the amount of tax otherwise due under section 5747.02 of the
Revised Code.
(3) If the credit provided under division (B) of this section
is affected by a change in either the portion of adjusted gross
income of a resident taxpayer subjected to an income tax in
another state or the District of Columbia or the amount of income
tax liability that has been paid to another state or the District
of Columbia, the taxpayer shall report the change to the tax
commissioner within sixty days of the change in such form as the
commissioner requires.
(a) In the case of an underpayment, the report shall be
accompanied by payment of any additional tax due as a result of
the reduction in credit together with interest on the additional
tax and is a return subject to assessment under section 5747.13 of
the Revised Code solely for the purpose of assessing any
additional tax due under this division, together with any
applicable penalty and interest. It shall not reopen the
computation of the taxpayer's tax liability under this chapter
from a previously filed return no longer subject to assessment
except to the extent that such liability is affected by an
adjustment to the credit allowed by division (B) of this section.
(b) In the case of an overpayment, an application for refund
may be filed under this division within the sixty-day period
prescribed for filing the report even if it is beyond the period
prescribed in section 5747.11 of the Revised Code if it otherwise
conforms to the requirements of such section. An application filed
under this division shall only claim refund of overpayments
resulting from an adjustment to the credit allowed by division (B)
of this section unless it is also filed within the time prescribed
in section 5747.11 of the Revised Code. It shall not reopen the
computation of the taxpayer's tax liability except to the extent
that such liability is affected by an adjustment to the credit
allowed by division (B) of this section.
(4) No credit shall be allowed under division (B) of this
section for income tax paid or accrued to another state or to the
District of Columbia if the taxpayer, when computing federal
adjusted gross income, has directly or indirectly deducted, or was
required to directly or indirectly deduct, the amount of that
income tax.
(C) For a taxpayer sixty-five years of age or older during
the taxable year, a credit for such year equal to fifty dollars
for each return required to be filed under section 5747.08 of the
Revised Code.
(D) A taxpayer sixty-five years of age or older during the
taxable year who has received a lump-sum distribution from a
pension, retirement, or profit-sharing plan in the taxable year
may elect to receive a credit under this division in lieu of the
credit to which the taxpayer is entitled under division (C) of
this section. A taxpayer making such election shall receive a
credit for the taxable year equal to fifty dollars times the
taxpayer's expected remaining life as shown by annuity tables
issued under the provisions of the Internal Revenue Code and in
effect for the calendar year which includes the last day of the
taxable year. A taxpayer making an election under this division is
not entitled to the credit authorized under division (C) of this
section in subsequent taxable years except that if such election
was made prior to July 1, 1983, the taxpayer is entitled to
one-half the credit authorized under such division in subsequent
taxable years but may not make another election under this
division.
(E) A taxpayer who is not sixty-five years of age or older
during the taxable year who has received a lump-sum distribution
from a pension, retirement, or profit-sharing plan in a taxable
year ending on or before July 31, 1991, may elect to take a credit
against the tax otherwise due under this chapter for such year
equal to fifty dollars times the expected remaining life of a
taxpayer sixty-five years of age as shown by annuity tables issued
under the provisions of the Internal Revenue Code and in effect
for the calendar year which includes the last day of the taxable
year. A taxpayer making an election under this division is not
entitled to a credit under division (C) or (D) of this section in
any subsequent year except that if such election was made prior to
July 1, 1983, the taxpayer is entitled to one-half the credit
authorized under division (C) of this section in subsequent years
but may not make another election under this division. No taxpayer
may make an election under this division for a taxable year ending
on or after August 1, 1991.
(F) A taxpayer making an election under either division (D)
or (E) of this section may make only one such election in the
taxpayer's lifetime.
(G)(1) On a joint return filed by a husband and wife, each of
whom had adjusted gross income of at least five hundred dollars,
exclusive of interest, dividends and distributions, royalties,
rent, and capital gains, a nonrefundable credit equal to the
percentage shown in the table contained in this division of the
amount of tax due difference of the amount of tax shown to be due
on the joint return minus the husband's and wife's minimum
combined amount of tax, after allowing for any other credit that
precedes the credit under this division in the order required
under section 5747.98 of the Revised Code.
(2) The credit to which a taxpayer is entitled under this
division in any taxable year is the percentage shown in column B
that corresponds with the taxpayer's adjusted gross income, less
exemptions for the taxable year:
IF THE ADJUSTED GROSS INCOME, LESS EXEMPTIONS, FOR THE TAX YEAR IS: |
|
THE CREDIT FOR THE TAXABLE YEAR IS: |
|
|
$25,000 or less |
|
20% |
|
|
More than $25,000 but not more than $50,000 |
|
15% |
|
|
More than $50,000 but not more than $75,000 |
|
10% |
|
|
More than $75,000 |
|
5% |
|
|
(3) The credit allowed under this division shall not exceed
six hundred fifty dollars in any taxable year As used in this
division:
(a) "Minimum combined amount of tax" means the sum of the tax
that would be due on the husband's and wife's returns if the
husband and wife filed separate returns, notwithstanding division
(E) of section 5747.08 of the Revised Code, if the husband and
wife made all adjustments and claimed all credits to which the
husband and wife would be required or allowed to make or claim on
each separate return. For the purpose of calculating "minimum
combined amount of tax," adjustments or credits that could be
taken or claimed by either the husband or wife on the husband's or
wife's separate return shall be claimed by each spouse in a manner
that would result in the least combined tax due.
(b) "Adjustment" means a deduction taken on a federal income
tax return that is included in the computation of the husband's or
the wife's federal adjusted gross income or an addition or
deduction described in division (A) of section 5747.01 of the
Revised Code and allowed to the husband or wife.
(c) "Credit" means any credit described in section 5747.98 of
the Revised Code.
(H) No claim for credit under this section shall be allowed
unless the claimant furnishes such supporting information as the
tax commissioner prescribes by rules. Each credit under this
section shall be claimed in the order required under section
5747.98 of the Revised Code.
(I) An individual who is a resident for part of a taxable
year and a nonresident for the remainder of the taxable year is
allowed the credits under divisions (A) and (B) of this section in
accordance with rules prescribed by the tax commissioner. In no
event shall the same income be subject to both credits.
(J) The credit allowed under division (A) of this section
shall be calculated based upon the amount of tax due under section
5747.02 of the Revised Code after subtracting any other credits
that precede the credit under that division in the order required
under section 5747.98 of the Revised Code. The credit allowed
under division (B) of this section shall be calculated based upon
the amount of tax due under section 5747.02 of the Revised Code
after subtracting any other credits that precede the credit under
that division in the order required under section 5747.98 of the
Revised Code.
(K) No credit shall be allowed under division (B) of this
section unless the taxpayer furnishes such proof as the tax
commissioner shall require that the income tax liability has been
paid to another state or the District of Columbia.
(L) No credit shall be allowed under division (B) of this
section for compensation that is not subject to the income tax of
another state or the District of Columbia as the result of an
agreement entered into by the tax commissioner under division
(A)(3) of this section.
Section 2. That existing section 5747.05 of the Revised Code
is hereby repealed.
Section 3. The amendment by this act of section 5747.05 of
the Revised Code applies to taxable years beginning on or after
January 1, 2013.
|
|