Bill Text: OH HB284 | 2009-2010 | 128th General Assembly | Introduced


Bill Title: To increase the marginal income tax rate applicable to income in excess of $200,000 to its pre-2005 rate.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-09-23 - To Ways & Means [HB284 Detail]

Download: Ohio-2009-HB284-Introduced.html
As Introduced

128th General Assembly
Regular Session
2009-2010
H. B. No. 284


Representative Hagan 



A BILL
To amend section 5747.02 of the Revised Code to 1
increase the marginal income tax rate applicable 2
to income in excess of $200,000 to its pre-2005 3
rate.4


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 5747.02 of the Revised Code be 5
amended to read as follows:6

       Sec. 5747.02.  (A) For the purpose of providing revenue for 7
the support of schools and local government functions, to provide 8
relief to property taxpayers, to provide revenue for the general 9
revenue fund, and to meet the expenses of administering the tax 10
levied by this chapter, there is hereby levied on every 11
individual, trust, and estate residing in or earning or receiving 12
income in this state, on every individual, trust, and estate 13
earning or receiving lottery winnings, prizes, or awards pursuant 14
to Chapter 3770. of the Revised Code, and on every individual, 15
trust, and estate otherwise having nexus with or in this state 16
under the Constitution of the United States, an annual tax 17
measured in the case of individuals by Ohio adjusted gross income 18
less an exemption for the taxpayer, the taxpayer's spouse, and 19
each dependent as provided in section 5747.025 of the Revised 20
Code; measured in the case of trusts by modified Ohio taxable 21
income under division (D) of this section; and measured in the 22
case of estates by Ohio taxable income. The tax imposed by this 23
section on the balance thus obtained is hereby levied as follows: 24

       (1) For taxable years beginning in 2004: 25

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 26
OR 27
MODIFIED OHIO 28
TAXABLE INCOME (TRUSTS) 29
OR 30
OHIO TAXABLE INCOME (ESTATES) TAX 31

$5,000 or less .743% 32
More than $5,000 but not more than $10,000 $37.15 plus 1.486% of the amount in excess of $5,000 33
More than $10,000 but not more than $15,000 $111.45 plus 2.972% of the amount in excess of $10,000 34
More than $15,000 but not more than $20,000 $260.05 plus 3.715% of the amount in excess of $15,000 35
More than $20,000 but not more than $40,000 $445.80 plus 4.457% of the amount in excess of $20,000 36
More than $40,000 but not more than $80,000 $1,337.20 plus 5.201% of the amount in excess of $40,000 37
More than $80,000 but not more than $100,000 $3,417.60 plus 5.943% of the amount in excess of $80,000 38
More than $100,000 but not more than $200,000 $4,606.20 plus 6.9% of the amount in excess of $100,000 39
More than $200,000 $11,506.20 plus 7.5% of the amount in excess of $200,000 40

       (2) For taxable years beginning in 2005: 41

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 42
OR 43
MODIFIED OHIO 44
TAXABLE INCOME (TRUSTS) 45
OR 46
OHIO TAXABLE INCOME (ESTATES) TAX 47

$5,000 or less .712% 48
More than $5,000 but not more than $10,000 $35.60 plus 1.424% of the amount in excess of $5,000 49
More than $10,000 but not more than $15,000 $106.80 plus 2.847% of the amount in excess of $10,000 50
More than $15,000 but not more than $20,000 $249.15 plus 3.559% of the amount in excess of $15,000 51
More than $20,000 but not more than $40,000 $427.10 plus 4.27% of the amount in excess of $20,000 52
More than $40,000 but not more than $80,000 $1,281.10 plus 4.983% of the amount in excess of $40,000 53
More than $80,000 but not more than $100,000 $3,274.30 plus 5.693% of the amount in excess of $80,000 54
More than $100,000 but not more than $200,000 $4,412.90 plus 6.61% of the amount in excess of $100,000 55
More than $200,000 $11,022.90 plus 7.185% of the amount in excess of $200,000 56

       (3) For taxable years beginning in 2006: 57

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 58
OR 59
MODIFIED OHIO 60
TAXABLE INCOME (TRUSTS) 61
OR 62
OHIO TAXABLE INCOME (ESTATES) TAX 63

$5,000 or less .681% 64
More than $5,000 but not more than $10,000 $34.05 plus 1.361% of the amount in excess of $5,000 65
More than $10,000 but not more than $15,000 $102.10 plus 2.722% of the amount in excess of $10,000 66
More than $15,000 but not more than $20,000 $238.20 plus 3.403% of the amount in excess of $15,000 67
More than $20,000 but not more than $40,000 $408.35 plus 4.083% of the amount in excess of $20,000 68
More than $40,000 but not more than $80,000 $1,224.95 plus 4.764% of the amount in excess of $40,000 69
More than $80,000 but not more than $100,000 $3,130.55 plus 5.444% of the amount in excess of $80,000 70
More than $100,000 but not more than $200,000 $4,219.35 plus 6.32% of the amount in excess of $100,000 71
More than $200,000 $10,539.35 plus 6.87% of the amount in excess of $200,000 72

       (4) For taxable years beginning in 2007: 73

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 74
OR 75
MODIFIED OHIO 76
TAXABLE INCOME (TRUSTS) 77
OR 78
OHIO TAXABLE INCOME (ESTATES) TAX 79

$5,000 or less .649% 80
More than $5,000 but not more than $10,000 $32.45 plus 1.299% of the amount in excess of $5,000 81
More than $10,000 but not more than $15,000 $97.40 plus 2.598% of the amount in excess of $10,000 82
More than $15,000 but not more than $20,000 $227.30 plus 3.247% of the amount in excess of $15,000 83
More than $20,000 but not more than $40,000 $389.65 plus 3.895% of the amount in excess of $20,000 84
More than $40,000 but not more than $80,000 $1,168.65 plus 4.546% of the amount in excess of $40,000 85
More than $80,000 but not more than $100,000 $2,987.05 plus 5.194% of the amount in excess of $80,000 86
More than $100,000 but not more than $200,000 $4,025.85 plus 6.031% of the amount in excess of $100,000 87
More than $200,000 $10,056.85 plus 6.555% of the amount in excess of $200,000 88

       (5) For taxable years beginning in 2008: 89

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 90
OR 91
MODIFIED OHIO 92
TAXABLE INCOME (TRUSTS) 93
OR 94
OHIO TAXABLE INCOME (ESTATES) TAX 95

$5,000 or less .618% 96
More than $5,000 but not more than $10,000 $30.90 plus 1.236% of the amount in excess of $5,000 97
More than $10,000 but not more than $15,000 $92.70 plus 2.473% of the amount in excess of $10,000 98
More than $15,000 but not more than $20,000 $216.35 plus 3.091% of the amount in excess of $15,000 99
More than $20,000 but not more than $40,000 $370.90 plus 3.708% of the amount in excess of $20,000 100
More than $40,000 but not more than $80,000 $1,112.50 plus 4.327% of the amount in excess of $40,000 101
More than $80,000 but not more than $100,000 $2,843.30 plus 4.945% of the amount in excess of $80,000 102
More than $100,000 but not more than $200,000 $3,832.30 plus 5.741% of the amount in excess of $100,000 103
More than $200,000 $9,573.30 plus 6.24% of the amount in excess of $200,000 104

       (6) For taxable years beginning in 2009 or thereafter: 105

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 106
OR 107
MODIFIED OHIO 108
TAXABLE INCOME (TRUSTS) 109
OR 110
OHIO TAXABLE INCOME (ESTATES) TAX 111

$5,000 or less .587% 112
More than $5,000 but not more than $10,000 $29.35 plus 1.174% of the amount in excess of $5,000 113
More than $10,000 but not more than $15,000 $88.05 plus 2.348% of the amount in excess of $10,000 114
More than $15,000 but not more than $20,000 $205.45 plus 2.935% of the amount in excess of $15,000 115
More than $20,000 but not more than $40,000 $352.20 plus 3.521% of the amount in excess of $20,000 116
More than $40,000 but not more than $80,000 $1,056.40 plus 4.109% of the amount in excess of $40,000 117
More than $80,000 but not more than $100,000 $2,700.00 plus 4.695% of the amount in excess of $80,000 118
More than $100,000 but not more than $200,000 $3,639.00 plus 5.451% of the amount in excess of $100,000 119
More than $200,000 $9,090.00 plus 5.925% 7.5% of the amount in excess of $200,000 120

       In July of each year, beginning in 2010, the tax commissioner 121
shall adjust the income amounts prescribed in this division by 122
multiplying the percentage increase in the gross domestic product 123
deflator computed that year under section 5747.025 of the Revised 124
Code by each of the income amounts resulting from the adjustment 125
under this division in the preceding year, adding the resulting 126
product to the corresponding income amount resulting from the 127
adjustment in the preceding year, and rounding the resulting sum 128
to the nearest multiple of fifty dollars. The tax commissioner 129
also shall recompute each of the tax dollar amounts to the extent 130
necessary to reflect the adjustment of the income amounts. The 131
rates of taxation shall not be adjusted. 132

       The adjusted amounts apply to taxable years beginning in the 133
calendar year in which the adjustments are made. The tax 134
commissioner shall not make such adjustments in any year in which 135
the amount resulting from the adjustment would be less than the 136
amount resulting from the adjustment in the preceding year. 137

       (B) If the director of budget and management makes a 138
certification to the tax commissioner under division (B) of 139
section 131.44 of the Revised Code, the amount of tax as 140
determined under division (A) of this section shall be reduced by 141
the percentage prescribed in that certification for taxable years 142
beginning in the calendar year in which that certification is 143
made. 144

       (C) The levy of this tax on income does not prevent a 145
municipal corporation, a joint economic development zone created 146
under section 715.691, or a joint economic development district 147
created under section 715.70 or 715.71 or sections 715.72 to 148
715.81 of the Revised Code from levying a tax on income. 149

       (D) This division applies only to taxable years of a trust 150
beginning in 2002 or thereafter. 151

       (1) The tax imposed by this section on a trust shall be 152
computed by multiplying the Ohio modified taxable income of the 153
trust by the rates prescribed by division (A) of this section. 154

       (2) A nonresident trust may claim a credit against the tax 155
computed under division (D) of this section equal to the lesser 156
of (1) the tax paid to another state or the District of Columbia 157
on the nonresident trust's modified nonbusiness income, other 158
than the portion of the nonresident trust's nonbusiness income 159
that is qualifying investment income as defined in section 160
5747.012 of the Revised Code, or (2) the effective tax rate, based 161
on modified Ohio taxable income, multiplied by the nonresident 162
trust's modified nonbusiness income other than the portion of the 163
nonresident trust's nonbusiness income that is qualifying 164
investment income. The credit applies before any other applicable 165
credits. 166

       (3) The credits enumerated in divisions (A)(1) to (13) of 167
section 5747.98 of the Revised Code do not apply to a trust 168
subject to division (D) of this section. Any credits enumerated 169
in other divisions of section 5747.98 of the Revised Code apply 170
to a trust subject to division (D) of this section. To the extent 171
that the trust distributes income for the taxable year for which 172
a credit is available to the trust, the credit shall be shared by 173
the trust and its beneficiaries. The tax commissioner and the 174
trust shall be guided by applicable regulations of the United 175
States treasury regarding the sharing of credits. 176

       (E) For the purposes of this section, "trust" means any trust 177
described in Subchapter J of Chapter 1 of the Internal Revenue 178
Code, excluding trusts that are not irrevocable as defined in 179
division (I)(3)(b) of section 5747.01 of the Revised Code and that 180
have no modified Ohio taxable income for the taxable year, 181
charitable remainder trusts, qualified funeral trusts and preneed 182
funeral contract trusts established pursuant to sections 4717.31 183
to 4717.38 of the Revised Code that are not qualified funeral 184
trusts, endowment and perpetual care trusts, qualified 185
settlement trusts and funds, designated settlement trusts and 186
funds, and trusts exempted from taxation under section 501(a) 187
of the Internal Revenue Code. 188

       Section 2. That existing section 5747.02 of the Revised Code 189
is hereby repealed.190

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