Sub. S.B. 194

128th General Assembly

(As Passed by the Senate)

Sens.     Kearney, D. Miller, Fedor, Goodman, Jones, Morano, Turner, Schiavoni, Sawyer, Buehrer, Cafaro, Carey, Coughlin, Gibbs, Gillmor, Grendell, Harris, Hughes, Strahorn, Wagoner, Wilson, Patton, Seitz

BILL SUMMARY

· Permits an individual taxpayer to direct the state to deposit the taxpayer's income tax refund into a savings or retirement account.

CONTENT AND OPERATION

The bill requires the Tax Commissioner to permit an individual taxpayer, when the taxpayer files an annual return, to instruct the Department of Taxation to cause any refund of overpaid income taxes owed to the taxpayer to be deposited directly into a savings account or an individual retirement account or individual retirement annuity, as designated by the taxpayer.  Such instructions can be given to the Department regardless of whether the taxpayer files a paper return or transmits the return electronically or telephonically.  (R.C. 5747.08(L).)

According to the 2009 income tax filing instructions, taxpayers due a refund may instruct the Department to directly deposit the refund to a checking or savings account, and may do so only if they file electronically or by telephone; no direct deposit refund option is available for paper-filed returns.

HISTORY

ACTION	DATE
Introduced	10-27-09
Reported, S. Finance & Financial Institutions	01-27-10
Passed Senate (30-0)	02-17-10

S0194-PS-128.docx/jc