Bill Text: OH HB496 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To assert the state's claim of sovereignty pursuant to the Tenth Amendment to the United States Constitution, to require Ohio residents to remit federal taxes to the Treasurer of State, to require that those taxes be retained by the state for its own use to the extent the General Assembly finds that the federal government penalized the state for failing to comply with a federal mandate determined by the General Assembly to be unconstitutional or to the extent directed by a statewide ballot initiative, and to declare an emergency.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2010-04-19 - To Finance & Appropriations [HB496 Detail]

Download: Ohio-2009-HB496-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 496

Representative Jordan 

Cosponsors: Representatives Adams, J., Boose, Combs 

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A BILL

To enact sections 131.70 and 131.71 of the Revised

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Code to assert the state's claim of sovereignty

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pursuant to the Tenth Amendment to the United

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States Constitution, to require Ohio residents to

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remit federal taxes to the Treasurer of State, to

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require that those taxes be retained by the state

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for its own use to the extent the General Assembly

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finds that the federal government penalized the

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state for failing to comply with a federal mandate

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determined by the General Assembly to be

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unconstitutional or to the extent directed by a

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statewide ballot initiative, and to declare an

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emergency.

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

Section 1. That sections 131.70 and 131.71 of the Revised	14
Code be enacted to read as follows:	15

Sec. 131.70.  (A) The general assembly finds and declares as	16
follows:	17

(1) The Tenth Amendment to the United States Constitution	18
states as follows: "The powers not delegated to the United States	19
by the Constitution, nor prohibited by it to the States, are	20
reserved to the States respectively, or to the people." The	21
general assembly finds that the Tenth Amendment to the United	22
States Constitution defines the total scope of the federal	23
government's power as being that specifically stated in the United	24
States Constitution and no more.	25

(2) The congress of the United States has the power to lay	26
and collect taxes pursuant only to Clause 1 of Section 8 of	27
Article I of the United States Constitution; Clause 4 of Section 9	28
of Article I of the United States Constitution; and the Sixteenth	29
Amendment to the United States Constitution.	30

(3) The federal government does not have the power to	31
withhold from the states the benefits of those taxes by use of	32
federal mandates that are outside the scope of the powers	33
enumerated in the United States Constitution.	34

(B) In light of the continuing unconstitutional federal	35
mandates that withhold the benefits of those taxes, the state of	36
Ohio hereby reasserts its claim of sovereignty pursuant to the	37
Tenth Amendment to the United States Constitution.	38

Sec. 131.71.  (A) As used in this section:

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(1) "Person" has the same meaning as in section 5701.01 of	40
the Revised Code.	41

(2) "Ohio resident" means all of the following:

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(a) A resident, as defined in section 5747.01 of the Revised	43
Code;	44

(b) An employer located in Ohio required to withhold federal	45
income tax under Subtitle C of Title 26, United States Code;	46

(c) A person whose primary place of business is located in	47
Ohio and that is required to pay a tax imposed by Title 26, United	48
States Code;	49

(d) Any other person located in Ohio required under Title 26,	50
United States Code, to withhold or collect a tax and remit it to	51
the internal revenue service.	52

(B) An Ohio resident that is liable for a tax imposed under	53
Title 26, United States Code, shall remit the tax to the treasurer	54
of state on or before the last day on which payment may be made	55
without penalty under federal law and shall include with the	56
payment the person's federal taxpayer identification number. An	57
Ohio resident who fails to comply with this section may be subject	58
to applicable penalties assessed pursuant to federal or state law.	59
Upon receipt of a payment made pursuant to this section, the	60
treasurer of state shall deposit the payment to the credit of the	61
federal tax fund, which is hereby created in the state treasury,	62
and shall report to the internal revenue service the name and tax	63
identification number of the person from whom the payment was	64
received and the payment amount. The treasurer of state shall	65
prescribe the manner in which such remittances shall be made.	66

(C) Except as otherwise provided in this division, on the	67
last day of each quarter of each fiscal year, the director of	68
budget and management shall disburse to the internal revenue	69
service the amount in the federal tax fund. Before disbursement,	70
the director shall make the following transfers, as appropriate:	71

(1) From the federal tax fund to the general revenue fund for	72
use for any purpose for which general revenue fund money may be	73
used, the amount of interest earned on money in the federal tax	74
fund;	75

(2) From the federal tax fund to the general revenue fund for	76
use for any purpose for which general revenue fund money may be	77
used, the amount stated in a concurrent resolution, adopted during	78
the fiscal quarter, in which the general assembly makes both of	79
the following determinations:	80

(a) The federal government has imposed a financial penalty	81
on, withheld an amount from, or denied matching funds or grants to	82
this state as a result of the state's failure to enact legislation	83
or take any other action mandated by federal law; and	84

(b) The federal law mandating the legislation or other action	85
exceeds the authority granted to the federal government by the	86
United States Constitution.	87

(3) From the federal tax fund to the general revenue fund for	88
use for any purpose for which general revenue fund money may be	89
used, the amount certified to the director of budget and	90
management pursuant to division (G) of this section;	91

(4) From the general revenue fund to the federal tax fund the	92
amount stated in a concurrent resolution, adopted during the	93
fiscal quarter, in which the general assembly finds that some or	94
all of an amount stated in a resolution adopted under division	95
(C)(2) of this section is no longer imposed, withheld, or denied;	96

(5) To be effective, a concurrent resolution adopted under	97
division (C)(2) or (4) of this section shall be adopted by	98
affirmative vote of three-fifths of the membership of each house,	99
shall state the amount imposed, withheld, or denied, or the amount	100
no longer imposed, withheld, or denied, and shall be spread upon	101
the journal of each house. Upon adoption of the resolution, the	102
clerk of the house in which the resolution was first introduced	103
shall deliver a copy of the resolution to the director of budget	104
and management. If a resolution is adopted under division (C)(2)	105
of this section or an amount is certified to the director of	106
budget and management under division (G) of this section and the	107
amount required to be transferred or paid from the federal tax	108
fund is greater than the amount in the federal tax fund, the	109
deficiency shall be carried forward and applied against future	110
credits to the fund until fully satisfied.	111

(D) If an event described in division (C)(2)(a) of this	112
section occurs while the general assembly is not in regular	113
session, the general assembly shall convene in special session	114
pursuant to Section 8 of Article I, Ohio Constitution, to consider	115
the constitutional issue.	116

(E) By the power of initiative reserved to them under	117
Sections 1a and 1b of Article II, Ohio Constitution, qualified	118
electors of this state, pursuant to Chapter 3519. of the Revised	119
Code, may propose by initiative petition a law requiring the	120
director of budget and management to transfer from the federal tax	121
fund to the general revenue fund, in any fiscal year, an amount to	122
be stated in the proposed law, or requiring the director of budget	123
and management to transfer from the federal tax fund to the	124
general revenue fund, in any fiscal year, an amount to be stated	125
in the proposed law. If the law is enacted and the amount required	126
to be transferred from the federal tax fund is greater than the	127
amount in the fund, the deficiency shall be carried forward and	128
applied against future credits to the fund until fully satisfied.	129

(F) The provisions of this section shall be implemented	130
regardless of any sanctions, threats, court action, or other	131
pressure brought to bear by federal authorities.	132

(G) The state shall defend all civil and criminal actions	133
brought against an Ohio resident by the federal government for	134
compliance with this section, shall indemnify the Ohio resident	135
for any tax, civil or criminal penalty or restitution, or interest	136
the Ohio resident is forced to pay, and shall compensate the Ohio	137
resident for any economic damages caused by the action. Any cost	138
incurred or amount paid by the state pursuant to this section	139
shall be certified to the director of budget and management.	140

Section 2.  This act is hereby declared to be an emergency	141
measure necessary for the immediate preservation of the public	142
peace, health, and safety. The reason for such necessity is that	143
the federal government, by repeatedly acting outside its	144
constitutional limitations, is causing irreparable damage to the	145
peace, health, and safety of the people of the state of Ohio.	146
Therefore, this act shall go into immediate effect.	147