Bill Text: OH HB5 | 2013-2014 | 130th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: To revise the laws governing income taxes imposed by municipal corporations.
Spectrum: Partisan Bill (Republican 30-0)
Status: (Passed) 2014-12-19 - Governor' Action [HB5 Detail]
Download: Ohio-2013-HB5-Engrossed.html
As Passed by the House
A BILL
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Bill Title: To revise the laws governing income taxes imposed by municipal corporations.
Spectrum: Partisan Bill (Republican 30-0)
Status: (Passed) 2014-12-19 - Governor' Action [HB5 Detail]
Download: Ohio-2013-HB5-Engrossed.html
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Representatives Grossman, Henne
Cosponsors:
Representatives Amstutz, Beck, Adams, J., Blair, Brenner, Buchy, DeVitis, Hagan, C., Hood, Maag, Retherford, Roegner, Ruhl, Scherer, Sears, Terhar, Thompson, Young Speaker Batchelder
To amend sections 709.023, 718.02, 718.03, 718.051, | 1 |
718.07, 718.09, 718.10, 718.11, 718.121, 718.13, | 2 |
5703.059, 5703.57, 5717.011, 5717.03, 5739.12, | 3 |
5739.124, 5741.122, 5747.063, 5747.064, 5747.50, | 4 |
and 5751.07, to amend, for the purpose of adopting | 5 |
a new section number as indicated in parentheses, | 6 |
section 718.04 (718.50), to enact new sections | 7 |
718.01, 718.011, 718.04, 718.05, 718.06, 718.08, | 8 |
and 718.12 and sections 718.012, 718.031, 718.052, | 9 |
718.18, 718.19, 718.22 to 718.28, 718.30, 718.31, | 10 |
718.35, 718.38, 718.41, and 718.99, to repeal | 11 |
sections 718.01, 718.011, 718.041, 718.05, 718.06, | 12 |
718.08, 718.12, and 718.14 of the Revised Code, | 13 |
and to amend the version of section 5703.02 of the | 14 |
Revised Code that is scheduled to take effect | 15 |
January 1, 2015, to revise the laws governing | 16 |
income taxes imposed by municipal corporations. | 17 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 709.023, 718.02, 718.03, 718.051, | 18 |
718.07, 718.09, 718.10, 718.11, 718.121, 718.13, 5703.059, | 19 |
5703.57, 5717.011, 5717.03, 5739.12, 5739.124, 5741.122, 5747.063, | 20 |
5747.064, 5747.50, and 5751.07 be amended, section 718.04 (718.50) | 21 |
be amended for the purpose of adopting a new section number as | 22 |
indicated in parentheses, and new sections 718.01, 718.011, | 23 |
718.04, 718.05, 718.06, 718.08, and 718.12 and sections 718.012, | 24 |
718.031, 718.052, 718.18, 718.19, 718.22, 718.23, 718.24, 718.25, | 25 |
718.26, 718.27, 718.28, 718.30, 718.31, 718.35, 718.38, 718.41, | 26 |
and 718.99 of the Revised Code be enacted to read as follows: | 27 |
Sec. 709.023. (A) A petition filed under section 709.021 of | 28 |
the Revised Code that requests to follow this section is for the | 29 |
special procedure of annexing land into a municipal corporation | 30 |
when, subject to division (H) of this section, the land also is | 31 |
not to be excluded from the township under section 503.07 of the | 32 |
Revised Code. The owners who sign this petition by their signature | 33 |
expressly waive their right to appeal in law or equity from the | 34 |
board of county commissioners' entry of any resolution under this | 35 |
section, waive any rights they may have to sue on any issue | 36 |
relating to a municipal corporation requiring a buffer as provided | 37 |
in this section, and waive any rights to seek a variance that | 38 |
would relieve or exempt them from that buffer requirement. | 39 |
The petition circulated to collect signatures for the special | 40 |
procedure in this section shall contain in boldface capital | 41 |
letters immediately above the heading of the place for signatures | 42 |
on each part of the petition the following: "WHOEVER SIGNS THIS | 43 |
PETITION EXPRESSLY WAIVES THEIR RIGHT TO APPEAL IN LAW OR EQUITY | 44 |
FROM THE BOARD OF COUNTY COMMISSIONERS' ENTRY OF ANY RESOLUTION | 45 |
PERTAINING TO THIS SPECIAL ANNEXATION PROCEDURE, ALTHOUGH A WRIT | 46 |
OF MANDAMUS MAY BE SOUGHT TO COMPEL THE BOARD TO PERFORM ITS | 47 |
DUTIES REQUIRED BY LAW FOR THIS SPECIAL ANNEXATION PROCEDURE." | 48 |
(B) Upon the filing of the petition in the office of the | 49 |
clerk of the board of county commissioners, the clerk shall cause | 50 |
the petition to be entered upon the board's journal at its next | 51 |
regular session. This entry shall be the first official act of the | 52 |
board on the petition. Within five days after the filing of the | 53 |
petition, the agent for the petitioners shall notify in the manner | 54 |
and form specified in this division the clerk of the legislative | 55 |
authority of the municipal corporation to which annexation is | 56 |
proposed, the fiscal officer of each township any portion of which | 57 |
is included within the territory proposed for annexation, the | 58 |
clerk of the board of county commissioners of each county in which | 59 |
the territory proposed for annexation is located other than the | 60 |
county in which the petition is filed, and the owners of property | 61 |
adjacent to the territory proposed for annexation or adjacent to a | 62 |
road that is adjacent to that territory and located directly | 63 |
across that road from that territory. The notice shall refer to | 64 |
the time and date when the petition was filed and the county in | 65 |
which it was filed and shall have attached or shall be accompanied | 66 |
by a copy of the petition and any attachments or documents | 67 |
accompanying the petition as filed. | 68 |
Notice to a property owner is sufficient if sent by regular | 69 |
United States mail to the tax mailing address listed on the county | 70 |
auditor's records. Notice to the appropriate government officer | 71 |
shall be given by certified mail, return receipt requested, or by | 72 |
causing the notice to be personally served on the officer, with | 73 |
proof of service by affidavit of the person who delivered the | 74 |
notice. Proof of service of the notice on each appropriate | 75 |
government officer shall be filed with the board of county | 76 |
commissioners with which the petition was filed. | 77 |
(C) Within twenty days after the date that the petition is | 78 |
filed, the legislative authority of the municipal corporation to | 79 |
which annexation is proposed shall adopt an ordinance or | 80 |
resolution stating what services the municipal corporation will | 81 |
provide, and an approximate date by which it will provide them, to | 82 |
the territory proposed for annexation, upon annexation. The | 83 |
municipal corporation is entitled in its sole discretion to | 84 |
provide to the territory proposed for annexation, upon annexation, | 85 |
services in addition to the services described in that ordinance | 86 |
or resolution. | 87 |
If the territory proposed for annexation is subject to zoning | 88 |
regulations adopted under either Chapter 303. or 519. of the | 89 |
Revised Code at the time the petition is filed, the legislative | 90 |
authority of the municipal corporation also shall adopt an | 91 |
ordinance or resolution stating that, if the territory is annexed | 92 |
and becomes subject to zoning by the municipal corporation and | 93 |
that municipal zoning permits uses in the annexed territory that | 94 |
the municipal corporation determines are clearly incompatible with | 95 |
the uses permitted under current county or township zoning | 96 |
regulations in the adjacent land remaining within the township | 97 |
from which the territory was annexed, the legislative authority of | 98 |
the municipal corporation will require, in the zoning ordinance | 99 |
permitting the incompatible uses, the owner of the annexed | 100 |
territory to provide a buffer separating the use of the annexed | 101 |
territory and the adjacent land remaining within the township. For | 102 |
the purposes of this section, "buffer" includes open space, | 103 |
landscaping, fences, walls, and other structured elements; streets | 104 |
and street rights-of-way; and bicycle and pedestrian paths and | 105 |
sidewalks. | 106 |
The clerk of the legislative authority of the municipal | 107 |
corporation to which annexation is proposed shall file the | 108 |
ordinances or resolutions adopted under this division with the | 109 |
board of county commissioners within twenty days following the | 110 |
date that the petition is filed. The board shall make these | 111 |
ordinances or resolutions available for public inspection. | 112 |
(D) Within twenty-five days after the date that the petition | 113 |
is filed, the legislative authority of the municipal corporation | 114 |
to which annexation is proposed and each township any portion of | 115 |
which is included within the territory proposed for annexation may | 116 |
adopt and file with the board of county commissioners an ordinance | 117 |
or resolution consenting or objecting to the proposed annexation. | 118 |
An objection to the proposed annexation shall be based solely upon | 119 |
the petition's failure to meet the conditions specified in | 120 |
division (E) of this section. | 121 |
If the municipal corporation and each of those townships | 122 |
timely files an ordinance or resolution consenting to the proposed | 123 |
annexation, the board at its next regular session shall enter upon | 124 |
its journal a resolution granting the proposed annexation. If, | 125 |
instead, the municipal corporation or any of those townships files | 126 |
an ordinance or resolution that objects to the proposed | 127 |
annexation, the board of county commissioners shall proceed as | 128 |
provided in division (E) of this section. Failure of the municipal | 129 |
corporation or any of those townships to timely file an ordinance | 130 |
or resolution consenting or objecting to the proposed annexation | 131 |
shall be deemed to constitute consent by that municipal | 132 |
corporation or township to the proposed annexation. | 133 |
(E) Unless the petition is granted under division (D) of this | 134 |
section, not less than thirty or more than forty-five days after | 135 |
the date that the petition is filed, the board of county | 136 |
commissioners shall review it to determine if each of the | 137 |
following conditions has been met: | 138 |
(1) The petition meets all the requirements set forth in, and | 139 |
was filed in the manner provided in, section 709.021 of the | 140 |
Revised Code. | 141 |
(2) The persons who signed the petition are owners of the | 142 |
real estate located in the territory proposed for annexation and | 143 |
constitute all of the owners of real estate in that territory. | 144 |
(3) The territory proposed for annexation does not exceed | 145 |
five hundred acres. | 146 |
(4) The territory proposed for annexation shares a contiguous | 147 |
boundary with the municipal corporation to which annexation is | 148 |
proposed for a continuous length of at least five per cent of the | 149 |
perimeter of the territory proposed for annexation. | 150 |
(5) The annexation will not create an unincorporated area of | 151 |
the township that is completely surrounded by the territory | 152 |
proposed for annexation. | 153 |
(6) The municipal corporation to which annexation is proposed | 154 |
has agreed to provide to the territory proposed for annexation the | 155 |
services specified in the relevant ordinance or resolution adopted | 156 |
under division (C) of this section. | 157 |
(7) If a street or highway will be divided or segmented by | 158 |
the boundary line between the township and the municipal | 159 |
corporation as to create a road maintenance problem, the municipal | 160 |
corporation to which annexation is proposed has agreed as a | 161 |
condition of the annexation to assume the maintenance of that | 162 |
street or highway or to otherwise correct the problem. As used in | 163 |
this section, "street" or "highway" has the same meaning as in | 164 |
section 4511.01 of the Revised Code. | 165 |
(F) Not less than thirty or more than forty-five days after | 166 |
the date that the petition is filed, if the petition is not | 167 |
granted under division (D) of this section, the board of county | 168 |
commissioners, if it finds that each of the conditions specified | 169 |
in division (E) of this section has been met, shall enter upon its | 170 |
journal a resolution granting the annexation. If the board of | 171 |
county commissioners finds that one or more of the conditions | 172 |
specified in division (E) of this section have not been met, it | 173 |
shall enter upon its journal a resolution that states which of | 174 |
those conditions the board finds have not been met and that denies | 175 |
the petition. | 176 |
(G) If a petition is granted under division (D) or (F) of | 177 |
this section, the clerk of the board of county commissioners shall | 178 |
proceed as provided in division (C)(1) of section 709.033 of the | 179 |
Revised Code, except that no recording or hearing exhibits would | 180 |
be involved. There is no appeal in law or equity from the board's | 181 |
entry of any resolution under this section, but any party may seek | 182 |
a writ of mandamus to compel the board of county commissioners to | 183 |
perform its duties under this section. | 184 |
(H) Notwithstanding anything to the contrary in section | 185 |
503.07 of the Revised Code, unless otherwise provided in an | 186 |
annexation agreement entered into pursuant to section 709.192 of | 187 |
the Revised Code or in a cooperative economic development | 188 |
agreement entered into pursuant to section 701.07 of the Revised | 189 |
Code, territory annexed into a municipal corporation pursuant to | 190 |
this section shall not at any time be excluded from the township | 191 |
under section 503.07 of the Revised Code and, thus, remains | 192 |
subject to the township's real property taxes. | 193 |
(I) Any owner of land that remains within a township and that | 194 |
is adjacent to territory annexed pursuant to this section who is | 195 |
directly affected by the failure of the annexing municipal | 196 |
corporation to enforce compliance with any zoning ordinance it | 197 |
adopts under division (C) of this section requiring the owner of | 198 |
the annexed territory to provide a buffer zone, may commence in | 199 |
the court of common pleas a civil action against that owner to | 200 |
enforce compliance with that buffer requirement whenever the | 201 |
required buffer is not in place before any development of the | 202 |
annexed territory begins. | 203 |
(J) Division | 204 |
Code applies to the compensation paid to persons performing | 205 |
personal services for a political subdivision on property owned by | 206 |
the political subdivision after that property is annexed to a | 207 |
municipal corporation under this section. | 208 |
Sec. 718.01. Any term used in this chapter that is not | 209 |
otherwise defined in this chapter has the same meaning as when | 210 |
used in a comparable context in laws of the United States relating | 211 |
to federal income taxation or in Title LVII of the Revised Code, | 212 |
unless a different meaning is clearly required. If a term used in | 213 |
this chapter that is not otherwise defined in this chapter is used | 214 |
in a comparable context in both the laws of the United States | 215 |
relating to federal income tax and in Title LVII of the Revised | 216 |
Code and the use is not consistent, then the use of the term in | 217 |
the laws of the United States relating to federal income tax shall | 218 |
control over the use of the term in Title LVII of the Revised | 219 |
Code. | 220 |
As used in this chapter: | 221 |
(A)(1) "Municipal taxable income" means the following: | 222 |
(a) For a person other than an individual, income reduced by | 223 |
exempt income to the extent otherwise included in income and then, | 224 |
as applicable, apportioned or sitused to the municipal corporation | 225 |
under section 718.02 of the Revised Code, and further reduced by | 226 |
any pre-2016 net operating loss carryforward available to the | 227 |
person for the municipal corporation. | 228 |
(b)(i) For an individual who is a resident of a municipal | 229 |
corporation other than a qualified municipal corporation, income | 230 |
reduced by exempt income to the extent otherwise included in | 231 |
income, then reduced as provided in division (A)(2) of this | 232 |
section, and further reduced by any pre-2016 net operating loss | 233 |
carryforward available to the individual for the municipal | 234 |
corporation. | 235 |
(ii) For an individual who is a resident of a qualified | 236 |
municipal corporation, Ohio adjusted gross income reduced by | 237 |
income exempted, and increased by deductions excluded, by the | 238 |
qualified municipal corporation from the qualified municipal | 239 |
corporation's tax on or before December 31, 2013. If a qualified | 240 |
municipal corporation, on or before December 31, 2013, exempts | 241 |
income earned by individuals who are not residents of the | 242 |
qualified municipal corporation and net profit of persons that are | 243 |
not wholly located within the qualified municipal corporation, | 244 |
such individual or person shall have no municipal taxable income | 245 |
for the purposes of the tax levied by the qualified municipal | 246 |
corporation and may be exempted by the qualified municipal | 247 |
corporation from the requirements of section 718.03 of the Revised | 248 |
Code. | 249 |
(c) For an individual who is a nonresident of a municipal | 250 |
corporation, income reduced by exempt income to the extent | 251 |
otherwise included in income and then, as applicable, apportioned | 252 |
or sitused to the municipal corporation under section 718.02 of | 253 |
the Revised Code, then reduced as provided in division (A)(2) of | 254 |
this section, and further reduced by any pre-2016 net operating | 255 |
loss carryforward available to the individual for the municipal | 256 |
corporation. | 257 |
(2) In computing the municipal taxable income of a taxpayer | 258 |
who is an individual, the taxpayer may subtract, as provided in | 259 |
division (A)(1)(b)(i) or (c) of this section, the amount of the | 260 |
individual's employee business expenses reportable on the | 261 |
individual's form 2106 that the individual deducted for federal | 262 |
income tax purposes for the taxable year, subject to the | 263 |
limitation imposed by section 67 of the Internal Revenue Code. For | 264 |
the municipal corporation in which the taxpayer is a resident, the | 265 |
taxpayer may deduct all such expenses. For a municipal corporation | 266 |
in which the taxpayer is not a resident, the taxpayer may deduct | 267 |
such expenses only to the extent the expenses are related to the | 268 |
taxpayer's performance of personal services in that nonresident | 269 |
municipal corporation. | 270 |
(B) "Income" means the following: | 271 |
(1)(a) For residents, all income, salaries, qualifying wages, | 272 |
commissions, and other compensation from whatever source earned or | 273 |
received by the resident, including the resident's distributive | 274 |
share of the net profit of pass-through entities owned directly or | 275 |
indirectly by the resident and any net profit of the resident. | 276 |
(b) For the purposes of division (B)(1)(a) of this section, | 277 |
the distributive share of any net operating loss attributable to | 278 |
an ownership interest in a pass-through entity shall be allowed as | 279 |
a deduction against any net profit of the resident generated | 280 |
during the same taxable year, and any net operating loss of the | 281 |
resident shall be allowed as a deduction against the distributive | 282 |
share of any net profit attributable to an ownership interest in a | 283 |
pass-through entity generated during the same taxable year. | 284 |
(c) Division (B)(1)(b) of this section does not apply with | 285 |
respect to any net profit or net operating loss attributable to an | 286 |
ownership interest in an S corporation unless shareholders' | 287 |
distributive shares of net profits from S corporations are subject | 288 |
to tax in the municipal corporation as provided in division | 289 |
(C)(14)(b) or (c) of this section. | 290 |
(2) In the case of nonresidents, all income, salaries, | 291 |
qualifying wages, commissions, and other compensation from | 292 |
whatever source earned or received by the nonresident for work | 293 |
done, services performed or rendered, or activities conducted in | 294 |
the municipal corporation, including any net profit of the | 295 |
nonresident, but excluding the nonresident's distributive share of | 296 |
the net profit or loss of only pass-through entities owned | 297 |
directly or indirectly by the nonresident. | 298 |
(3) For taxpayers that are not individuals, net profit of the | 299 |
taxpayer; | 300 |
(4) Lottery, sweepstakes, gambling and sports winnings, | 301 |
winnings from games of chance, and prizes and awards. If the | 302 |
taxpayer is a professional gambler for federal income tax | 303 |
purposes, the taxpayer may deduct related wagering losses and | 304 |
expenses to the extent authorized under the Internal Revenue Code | 305 |
and claimed against such winnings. | 306 |
(C) "Exempt income" means all of the following: | 307 |
(1) The military pay or allowances of members of the armed | 308 |
forces of the United States or members of their reserve | 309 |
components, including the national guard of any state; | 310 |
(2)(a) Except as provided in division (C)(2)(b) of this | 311 |
section, intangible income; | 312 |
(b) A municipal corporation that taxed any type of intangible | 313 |
income on March 29, 1988, pursuant to Section 3 of S.B. 238 of the | 314 |
116th general assembly, may continue to tax that type of income if | 315 |
a majority of the electors of the municipal corporation voting on | 316 |
the question of whether to permit the taxation of that type of | 317 |
intangible income after 1988 voted in favor thereof at an election | 318 |
held on November 8, 1988. | 319 |
(3) Social security benefits, railroad retirement benefits, | 320 |
unemployment compensation, pensions, retirement benefit payments, | 321 |
payments from annuities, and similar payments made to an employee | 322 |
or to the beneficiary of an employee under a retirement program or | 323 |
plan, disability payments received from private industry or local, | 324 |
state, or federal governments or from charitable, religious or | 325 |
educational organizations, and the proceeds of sickness, accident, | 326 |
or liability insurance policies. As used in division (C)(3) of | 327 |
this section, "unemployment compensation" does not include | 328 |
supplemental unemployment compensation described in section | 329 |
3402(o)(2) of the Internal Revenue Code. | 330 |
(4) The income of religious, fraternal, charitable, | 331 |
scientific, literary, or educational institutions to the extent | 332 |
such income is derived from tax-exempt real estate, tax-exempt | 333 |
tangible or intangible property, or tax-exempt activities. | 334 |
(5) Compensation paid under section 3501.28 or 3501.36 of the | 335 |
Revised Code to a person serving as a precinct election official | 336 |
to the extent that such compensation does not exceed one thousand | 337 |
dollars for the taxable year. Such compensation in excess of one | 338 |
thousand dollars for the taxable year may be subject to taxation | 339 |
by a municipal corporation. A municipal corporation shall not | 340 |
require the payer of such compensation to withhold any tax from | 341 |
that compensation. | 342 |
(6) Dues, contributions, and similar payments received by | 343 |
charitable, religious, educational, or literary organizations or | 344 |
labor unions, lodges, and similar organizations; | 345 |
(7) Alimony and child support received; | 346 |
(8) Compensation for personal injuries or for damages to | 347 |
property from insurance proceeds or otherwise, excluding | 348 |
compensation paid for lost salaries or wages or compensation from | 349 |
punitive damages; | 350 |
(9) Income of a public utility when that public utility is | 351 |
subject to the tax levied under section 5727.24 or 5727.30 of the | 352 |
Revised Code. Division (C)(9) of this section does not apply for | 353 |
purposes of Chapter 5745. of the Revised Code. | 354 |
(10) Gains from involuntary conversions, interest on federal | 355 |
obligations, items of income subject to a tax levied by the state | 356 |
and that a municipal corporation is specifically prohibited by law | 357 |
from taxing, and income of a decedent's estate during the period | 358 |
of administration except such income from the operation of a trade | 359 |
or business; | 360 |
(11) Compensation or allowances excluded from federal gross | 361 |
income under section 107 of the Internal Revenue Code; | 362 |
(12) Employee compensation that is not qualifying wages; | 363 |
(13) Compensation paid to a person employed within the | 364 |
boundaries of a United States air force base under the | 365 |
jurisdiction of the United States air force that is used for the | 366 |
housing of members of the United States air force and is a center | 367 |
for air force operations, unless the person is subject to taxation | 368 |
because of residence or domicile. If the compensation is subject | 369 |
to taxation because of residence or domicile, tax on such income | 370 |
shall be payable only to the municipal corporation of residence or | 371 |
domicile. | 372 |
(14)(a) Except as provided in division (C)(14)(b) or (c) of | 373 |
this section, an S corporation shareholder's distributive share of | 374 |
net profits of the S corporation, other than any part of the | 375 |
distributive share of net profits that represents wages as defined | 376 |
in section 3121(a) of the Internal Revenue Code or net earnings | 377 |
from self-employment as defined in section 1402(a) of the Internal | 378 |
Revenue Code. | 379 |
(b) If, pursuant to division (H) of former section 718.01 of | 380 |
the Revised Code as it existed before March 11, 2004, a majority | 381 |
of the electors of a municipal corporation voted in favor of the | 382 |
question at an election held on November 4, 2003, the municipal | 383 |
corporation may continue after 2002 to tax an S corporation | 384 |
shareholder's distributive share of net profits of an S | 385 |
corporation. | 386 |
(c) If, on December 6, 2002, a municipal corporation was | 387 |
imposing, assessing, and collecting a tax on an S corporation | 388 |
shareholder's distributive share of net profits of the S | 389 |
corporation to the extent the distributive share would be | 390 |
allocated or apportioned to this state under divisions (B)(1) and | 391 |
(2) of section 5733.05 of the Revised Code if the S corporation | 392 |
were a corporation subject to taxes imposed under Chapter 5733. of | 393 |
the Revised Code, the municipal corporation may continue to impose | 394 |
the tax on such distributive shares to the extent such shares | 395 |
would be so allocated or apportioned to this state only until | 396 |
December 31, 2004, unless a majority of the electors of the | 397 |
municipal corporation voting on the question of continuing to tax | 398 |
such shares after that date vote in favor of that question at an | 399 |
election held November 2, 2004. If a majority of those electors | 400 |
vote in favor of the question, the municipal corporation may | 401 |
continue after December 31, 2004, to impose the tax on such | 402 |
distributive shares only to the extent such shares would be so | 403 |
allocated or apportioned to this state. | 404 |
(d) A municipal corporation shall be deemed to have elected | 405 |
to tax S corporation shareholders' distributive shares of net | 406 |
profits of the S corporation in the hands of the shareholders if a | 407 |
majority of the electors of a municipal corporation vote in favor | 408 |
of a question at an election held under division (C)(14)(b) or (c) | 409 |
of this section. The municipal corporation shall specify by | 410 |
resolution or ordinance that the tax applies to the distributive | 411 |
share of a shareholder of an S corporation in the hands of the | 412 |
shareholder of the S corporation. | 413 |
(15) To the extent authorized under a resolution or ordinance | 414 |
adopted by a municipal corporation before January 1, 2015, all or | 415 |
a portion of the income of individuals or a class of individuals | 416 |
under eighteen years of age. | 417 |
(16)(a) Except as provided in divisions (C)(16)(b), (c), and | 418 |
(d) of this section, qualifying wages described in division (B)(1) | 419 |
or (E) of section 718.011 of the Revised Code to the extent the | 420 |
qualifying wages are not subject to withholding for the municipal | 421 |
corporation under either of those divisions. | 422 |
(b) The exemption provided in division (C)(16)(a) of this | 423 |
section does not apply with respect to the municipal corporation | 424 |
in which the employee resided at the time the employee earned the | 425 |
qualifying wages. | 426 |
(c) The exemption provided in division (C)(16)(a) of this | 427 |
section does not apply to qualifying wages that an employer elects | 428 |
to withhold under division (D)(2) of section 718.011 of the | 429 |
Revised Code. | 430 |
(d) The exemption provided in division (C)(16)(a) of this | 431 |
section does not apply to qualifying wages if both of the | 432 |
following conditions apply: | 433 |
(i) For qualifying wages described in division (B)(1) of | 434 |
section 718.011 of the Revised Code, the employee's employer | 435 |
withholds and remits tax on the qualifying wages to the municipal | 436 |
corporation in which the employee's principal place of work is | 437 |
situated, or, for qualifying wages described in division (E) of | 438 |
section 718.011 of the Revised Code, the employee's employer | 439 |
withholds and remits tax on the qualifying wages to the municipal | 440 |
corporation in which the employer's fixed location is located; | 441 |
(ii) The employee receives a refund of the tax described in | 442 |
division (C)(16)(d)(i) of this section on the basis of the | 443 |
employee not performing services in that municipal corporation. | 444 |
(17) Compensation that is not qualifying wages paid to a | 445 |
nonresident individual for personal services performed in the | 446 |
municipal corporation as a member of the board of directors of a | 447 |
corporation on not more than twenty days in a taxable year. | 448 |
(18) Compensation paid to a person for personal services | 449 |
performed for a political subdivision on property owned by the | 450 |
political subdivision, regardless of whether the compensation is | 451 |
received by an employee of the subdivision or another person | 452 |
performing services for the subdivision under a contract with the | 453 |
subdivision, if the property on which services are performed is | 454 |
annexed to a municipal corporation pursuant to section 709.023 of | 455 |
the Revised Code on or after March 27, 2013, unless the person is | 456 |
subject to such taxation because of residence. If the compensation | 457 |
is subject to taxation because of residence, municipal income tax | 458 |
shall be payable only to the municipal corporation of residence. | 459 |
(19) Income the taxation of which is prohibited by the | 460 |
constitution or laws of the United States. | 461 |
Any item of income that is exempt income of a pass-through | 462 |
entity under division (C) of this section is exempt income of each | 463 |
owner of the pass-through entity to the extent of that owner's | 464 |
distributive or proportionate share of that item of the entity's | 465 |
income. | 466 |
(D)(1) "Net profit" for a person other than an individual | 467 |
means adjusted federal taxable income. | 468 |
(2) "Net profit" for a person who is an individual means the | 469 |
individual's net profit required to be reported on schedule C, | 470 |
schedule E, or schedule F reduced by any net operating loss | 471 |
carried forward. For the purposes of division (D)(2) of this | 472 |
section, the net operating loss carried forward shall be | 473 |
calculated and deducted in the same manner as provided in division | 474 |
(E)(8) of this section. | 475 |
(3) For the purposes of this chapter, and notwithstanding | 476 |
division (D)(1) of this section, net profit of a disregarded | 477 |
entity shall not be taxable as against that disregarded entity, | 478 |
but shall instead be included in the net profit of the owner of | 479 |
the disregarded entity. | 480 |
(E) "Adjusted federal taxable income," for a person required | 481 |
to file as a C corporation means a C corporation's federal taxable | 482 |
income before net operating losses and special deductions as | 483 |
determined under the Internal Revenue Code, adjusted as follows: | 484 |
(1) Deduct intangible income to the extent included in | 485 |
federal taxable income. The deduction shall be allowed regardless | 486 |
of whether the intangible income relates to assets used in a trade | 487 |
or business or assets held for the production of income. | 488 |
(2) Add an amount equal to five per cent of intangible income | 489 |
deducted under division (E)(1) of this section, but excluding that | 490 |
portion of intangible income directly related to the sale, | 491 |
exchange, or other disposition of property described in section | 492 |
1221 of the Internal Revenue Code; | 493 |
(3) Add any losses allowed as a deduction in the computation | 494 |
of federal taxable income if the losses directly relate to the | 495 |
sale, exchange, or other disposition of an asset described in | 496 |
section 1221 or 1231 of the Internal Revenue Code; | 497 |
(4)(a) Except as provided in division (E)(4)(b) of this | 498 |
section, deduct income and gain included in federal taxable income | 499 |
to the extent the income and gain directly relate to the sale, | 500 |
exchange, or other disposition of an asset described in section | 501 |
1221 or 1231 of the Internal Revenue Code; | 502 |
(b) Division (E)(4)(a) of this section does not apply to the | 503 |
extent the income or gain is income or gain described in section | 504 |
1245 or 1250 of the Internal Revenue Code. | 505 |
(5) Add taxes on or measured by net income allowed as a | 506 |
deduction in the computation of federal taxable income; | 507 |
(6) In the case of a real estate investment trust or | 508 |
regulated investment company, add all amounts with respect to | 509 |
dividends to, distributions to, or amounts set aside for or | 510 |
credited to the benefit of investors and allowed as a deduction in | 511 |
the computation of federal taxable income; | 512 |
(7) Deduct, to the extent not otherwise deducted or excluded | 513 |
in computing federal taxable income, any income derived from a | 514 |
transfer agreement or from the enterprise transferred under that | 515 |
agreement under section 4313.02 of the Revised Code; | 516 |
(8)(a) Except as limited by divisions (E)(8)(b), (c), and (d) | 517 |
of this section, deduct the following: | 518 |
(i) For a municipal corporation that levies an income tax | 519 |
before January 1, 2015, any net operating loss incurred by the | 520 |
person in taxable years beginning after 2015. | 521 |
(ii) For a municipal corporation that does not levy an income | 522 |
tax before January 1, 2015, any net operating loss incurred by the | 523 |
person in taxable years beginning on or after the effective date | 524 |
of the income tax. | 525 |
For any municipal corporation, the amount of the net | 526 |
operating loss shall be deducted from net profit reduced by exempt | 527 |
income to the extent necessary to reduce municipal taxable income | 528 |
to zero, with any remaining unused portion of the net operating | 529 |
loss carried forward to not more than five consecutive taxable | 530 |
years following the taxable year in which the loss was incurred, | 531 |
but in no case for more years than necessary for the deduction to | 532 |
be fully utilized. | 533 |
(b) No person shall use the deduction allowed by division | 534 |
(E)(8) of this section to offset qualifying wages. | 535 |
(c)(i) For taxable years beginning in 2017, 2018, 2019, 2020, | 536 |
or 2021, a person may not deduct, for purposes of an income tax | 537 |
levied by a municipal corporation that levies an income tax before | 538 |
January 1, 2015, more than fifty per cent of the amount of the | 539 |
deduction otherwise allowed by division (E)(8)(a) of this section. | 540 |
(ii) For taxable years beginning in 2022 or thereafter, a | 541 |
person may deduct, for purposes of an income tax levied by a | 542 |
municipal corporation that levies an income tax before January 1, | 543 |
2015, the full amount allowed by division (E)(8)(a) of this | 544 |
section. | 545 |
(d) Any pre-2016 net operating loss carryforward deduction | 546 |
that is available must be utilized before a taxpayer may deduct | 547 |
any amount pursuant to division (E)(8) of this section. | 548 |
(e) Nothing in divisions (E)(8)(c)(i) and (ii) of this | 549 |
section precludes a person from carrying forward, for the period | 550 |
otherwise permitted under division (E)(8)(a) of this section, any | 551 |
amount of net operating loss that was not fully utilized by | 552 |
operation of divisions (E)(8)(c)(i) and (ii) of this section. | 553 |
(9) Deduct any net profit of a pass-through entity owned | 554 |
directly or indirectly by the taxpayer and included in the | 555 |
taxpayer's federal taxable income unless an affiliated group of | 556 |
corporations includes that net profit in the group's federal | 557 |
taxable income in accordance with division (E)(3)(b) of section | 558 |
718.06 of the Revised Code. | 559 |
(10) Add any loss incurred by a pass-through entity owned | 560 |
directly or indirectly by the taxpayer and included in the | 561 |
taxpayer's federal taxable income unless an affiliated group of | 562 |
corporations includes that loss in the group's federal taxable | 563 |
income in accordance with division (E)(3)(b) of section 718.06 of | 564 |
the Revised Code. | 565 |
If the taxpayer is not a C corporation, is not a disregarded | 566 |
entity, and is not an individual, the taxpayer shall compute | 567 |
adjusted federal taxable income under this section as if the | 568 |
taxpayer were a C corporation, except guaranteed payments and | 569 |
other similar amounts paid or accrued to a partner, former | 570 |
partner, shareholder, former shareholder, member, or former member | 571 |
shall not be allowed as a deductible expense unless such payments | 572 |
are in consideration for the use of capital and treated as payment | 573 |
of interest under section 469 of the Internal Revenue Code or | 574 |
United States treasury regulations. Amounts paid or accrued to a | 575 |
qualified self-employed retirement plan with respect to a partner, | 576 |
former partner, shareholder, former shareholder, member, or former | 577 |
member of the taxpayer, amounts paid or accrued to or for health | 578 |
insurance for a partner, former partner, shareholder, former | 579 |
shareholder, member, or former member, and amounts paid or accrued | 580 |
to or for life insurance for a partner, former partner, | 581 |
shareholder, former shareholder, member, or former member shall | 582 |
not be allowed as a deduction. | 583 |
Nothing in division (E) of this section shall be construed as | 584 |
allowing the taxpayer to add or deduct any amount more than once | 585 |
or shall be construed as allowing any taxpayer to deduct any | 586 |
amount paid to or accrued for purposes of federal self-employment | 587 |
tax. | 588 |
(F) "Schedule C" means internal revenue service schedule C | 589 |
(form 1040) filed by a taxpayer pursuant to the Internal Revenue | 590 |
Code. | 591 |
(G) "Schedule E" means internal revenue service schedule E | 592 |
(form 1040) filed by a taxpayer pursuant to the Internal Revenue | 593 |
Code. | 594 |
(H) "Schedule F" means internal revenue service schedule F | 595 |
(form 1040) filed by a taxpayer pursuant to the Internal Revenue | 596 |
Code. | 597 |
(I) "Internal Revenue Code" has the same meaning as in | 598 |
section 5747.01 of the Revised Code. | 599 |
(J) "Resident" means an individual who is domiciled in the | 600 |
municipal corporation as determined under section 718.012 of the | 601 |
Revised Code. | 602 |
(K) "Nonresident" means an individual that is not a resident. | 603 |
(L)(1) "Taxpayer" means a person subject to a tax levied on | 604 |
income by a municipal corporation in accordance with this chapter. | 605 |
"Taxpayer" does not include a grantor trust or, except as provided | 606 |
in division (L)(2)(a) of this section, a disregarded entity. | 607 |
(2)(a) A single member limited liability company that is a | 608 |
disregarded entity for federal tax purposes may be a separate | 609 |
taxpayer from its single member in all Ohio municipal corporations | 610 |
in which it either filed as a separate taxpayer or did not file | 611 |
for its taxable year ending in 2003, if all of the following | 612 |
conditions are met: | 613 |
(i) The limited liability company's single member is also a | 614 |
limited liability company. | 615 |
(ii) The limited liability company and its single member were | 616 |
formed and doing business in one or more Ohio municipal | 617 |
corporations for at least five years before January 1, 2004. | 618 |
(iii) Not later than December 31, 2004, the limited liability | 619 |
company and its single member each made an election to be treated | 620 |
as a separate taxpayer under division (L) of this section as this | 621 |
section existed on December 31, 2004. | 622 |
(iv) The limited liability company was not formed for the | 623 |
purpose of evading or reducing Ohio municipal corporation income | 624 |
tax liability of the limited liability company or its single | 625 |
member. | 626 |
(v) The Ohio municipal corporation that was the primary place | 627 |
of business of the sole member of the limited liability company | 628 |
consented to the election. | 629 |
(b) For purposes of division (L)(2)(a)(v) of this section, a | 630 |
municipal corporation was the primary place of business of a | 631 |
limited liability company if, for the limited liability company's | 632 |
taxable year ending in 2003, its income tax liability was greater | 633 |
in that municipal corporation than in any other municipal | 634 |
corporation in Ohio, and that tax liability to that municipal | 635 |
corporation for its taxable year ending in 2003 was at least four | 636 |
hundred thousand dollars. | 637 |
(M) "Person" includes individuals, firms, companies, joint | 638 |
stock companies, business trusts, estates, trusts, partnerships, | 639 |
limited liability partnerships, limited liability companies, | 640 |
associations, C corporations, S corporations, governmental | 641 |
entities, and any other entity. | 642 |
(N) "Pass-through entity" means a partnership not treated as | 643 |
an association taxable as a C corporation for federal income tax | 644 |
purposes, a limited liability company not treated as an | 645 |
association taxable as a C corporation for federal income tax | 646 |
purposes, an S corporation, or any other class of entity from | 647 |
which the income or profits of the entity are given pass-through | 648 |
treatment for federal income tax purposes. "Pass-through entity" | 649 |
does not include a trust, estate, grantor of a grantor trust, or | 650 |
disregarded entity. | 651 |
(O) "S corporation" means a person that has made an election | 652 |
under subchapter S of Chapter 1 of Subtitle A of the Internal | 653 |
Revenue Code for its taxable year. | 654 |
(P) "Single member limited liability company" means a limited | 655 |
liability company that has one direct member. | 656 |
(Q) "Limited liability company" means a limited liability | 657 |
company formed under Chapter 1705. of the Revised Code or under | 658 |
the laws of another state. | 659 |
(R) "Qualifying wages" means wages, as defined in section | 660 |
3121(a) of the Internal Revenue Code, without regard to any wage | 661 |
limitations, adjusted as follows: | 662 |
(1) Deduct the following amounts: | 663 |
(a) Any amount included in wages if the amount constitutes | 664 |
compensation attributable to a plan or program described in | 665 |
section 125 of the Internal Revenue Code. | 666 |
(b) Any amount included in wages if the amount constitutes | 667 |
payment on account of a disability related to sickness or an | 668 |
accident paid by a party unrelated to the employer, agent of an | 669 |
employer, or other payer. | 670 |
(c) Any amount attributable to a nonqualified deferred | 671 |
compensation plan or program described in section 3121(v)(2)(C) of | 672 |
the Internal Revenue Code if the compensation is included in wages | 673 |
and the municipal corporation has, by resolution or ordinance | 674 |
adopted before January 1, 2015, exempted the amount from | 675 |
withholding and tax. | 676 |
(d) Any amount included in wages if the amount arises from | 677 |
the sale, exchange, or other disposition of a stock option, the | 678 |
exercise of a stock option, or the sale, exchange, or other | 679 |
disposition of stock purchased under a stock option and the | 680 |
municipal corporation has, by resolution or ordinance adopted | 681 |
before January 1, 2015, exempted the amount from withholding and | 682 |
tax. | 683 |
(e) Any amount that is exempt income. | 684 |
(2) Add the following amounts: | 685 |
(a) Any amount not included in wages solely because the | 686 |
employee was employed by the employer before April 1, 1986. | 687 |
(b) Any amount not included in wages because the amount | 688 |
arises from the sale, exchange, or other disposition of a stock | 689 |
option, the exercise of a stock option, or the sale, exchange, or | 690 |
other disposition of stock purchased under a stock option and the | 691 |
municipal corporation has not, by resolution or ordinance, | 692 |
exempted the amount from withholding and tax adopted before | 693 |
January 1, 2015. Division (R)(2)(b) of this section applies only | 694 |
to those amounts constituting ordinary income. | 695 |
(c) Any amount not included in wages if the amount is an | 696 |
amount described in section 401(k), 403(b), or 457 of the Internal | 697 |
Revenue Code. Division (R)(2)(c) of this section applies only to | 698 |
employee contributions and employee deferrals. | 699 |
(d) Any amount that is supplemental unemployment compensation | 700 |
benefits described in section 3402(o)(2) of the Internal Revenue | 701 |
Code and not included in wages. | 702 |
(e) Any amount received that is treated as self-employment | 703 |
income for federal tax purposes in accordance with section | 704 |
1402(a)(8) of the Internal Revenue Code. | 705 |
(f) Any amount not included in wages if all of the following | 706 |
apply: | 707 |
(i) For the taxable year the amount is employee compensation | 708 |
that is included in the taxpayer's gross income for federal income | 709 |
tax purposes; | 710 |
(ii) For no preceding taxable year did the amount constitute | 711 |
wages as defined in section 3121(a) of the Internal Revenue Code; | 712 |
(iii) For no succeeding taxable year will the amount | 713 |
constitute wages; and | 714 |
(iv) For any taxable year the amount has not otherwise been | 715 |
added to wages pursuant to either division (R)(2) of this section | 716 |
or section 718.03 of the Revised Code, as that section existed | 717 |
before the effective date of H.B. 5 of the 130th general assembly. | 718 |
(S) "Intangible income" means income of any of the following | 719 |
types: income yield, interest, capital gains, dividends, or other | 720 |
income arising from the ownership, sale, exchange, or other | 721 |
disposition of intangible property including, but not limited to, | 722 |
investments, deposits, money, or credits as those terms are | 723 |
defined in Chapter 5701. of the Revised Code, and patents, | 724 |
copyrights, trademarks, tradenames, investments in real estate | 725 |
investment trusts, investments in regulated investment companies, | 726 |
and appreciation on deferred compensation. "Intangible income" | 727 |
does not include prizes, awards, or other income associated with | 728 |
any lottery winnings, gambling winnings, or other similar games of | 729 |
chance. | 730 |
(T) "Taxable year" means the corresponding tax reporting | 731 |
period as prescribed for the taxpayer under the Internal Revenue | 732 |
Code. | 733 |
(U) "Tax administrator" means the individual charged with | 734 |
direct responsibility for administration of an income tax levied | 735 |
by a municipal corporation in accordance with this chapter, and | 736 |
also includes the following: | 737 |
(1) A municipal corporation acting as the agent of another | 738 |
municipal corporation; | 739 |
(2) A person retained by a municipal corporation to | 740 |
administer a tax levied by the municipal corporation, but only if | 741 |
the municipal corporation does not compensate the person in whole | 742 |
or in part on a contingency basis; | 743 |
(3) The central collection agency or the regional income tax | 744 |
agency or their successors in interest, or another entity | 745 |
organized to perform functions similar to those performed by the | 746 |
central collection agency and the regional income tax agency. | 747 |
(V) "Employer" means a person that is an employer for federal | 748 |
income tax purposes. | 749 |
(W) "Employee" means an individual who is an employee for | 750 |
federal income tax purposes. | 751 |
(X) "Other payer" means any person, other than an | 752 |
individual's employer or the employer's agent, that pays an | 753 |
individual any amount included in the federal gross income of the | 754 |
individual. "Other payer" includes casino operators and video | 755 |
lottery terminal sales agents. | 756 |
(Y) "Calendar quarter" means the three-month period ending on | 757 |
the last day of March, June, September, or December. | 758 |
(Z) "Form 2106" means internal revenue service form 2106 | 759 |
filed by a taxpayer pursuant to the Internal Revenue Code. | 760 |
(AA) "Municipal corporation" includes a joint economic | 761 |
development district or joint economic development zone that | 762 |
levies an income tax under section 715.691, 715.70, 715.71, or | 763 |
715.74 of the Revised Code. | 764 |
(BB) "Disregarded entity" means a single member limited | 765 |
liability company, a qualifying subchapter S subsidiary, or | 766 |
another entity if the company, subsidiary, or entity is a | 767 |
disregarded entity for federal income tax purposes. | 768 |
(CC) "Generic form" means an electronic or paper form | 769 |
designed for reporting taxes withheld by an employer, agent of an | 770 |
employer, or other payer, estimated municipal income taxes, or | 771 |
annual municipal income tax liability or for filing a refund | 772 |
claim. | 773 |
(DD) "Tax return preparer" means any individual described in | 774 |
section 7701(a)(36) of the Internal Revenue Code and 26 C.F.R. | 775 |
301.7701-15. | 776 |
(EE) "Ohio business gateway" means the online computer | 777 |
network system, created under section 125.30 of the Revised Code, | 778 |
that allows persons to electronically file business reply forms | 779 |
with state agencies and includes any successor electronic filing | 780 |
and payment system. | 781 |
(FF) "Local board of tax review" and "board of tax review" | 782 |
mean the entity created under section 718.11 of the Revised Code. | 783 |
(GG) "Net operating loss" means a loss incurred by a person | 784 |
in the operation of a trade or business. "Net operating loss" does | 785 |
not include unutilized losses resulting from basis limitations, | 786 |
at-risk limitations, or passive activity loss limitations. | 787 |
(HH) "Casino operator" and "casino facility" have the same | 788 |
meanings as in section 3772.01 of the Revised Code. | 789 |
(II) "Video lottery terminal" has the same meaning as in | 790 |
section 3770.21 of the Revised Code. | 791 |
(JJ) "Video lottery terminal sales agent" means a lottery | 792 |
sales agent licensed under Chapter 3770. of the Revised Code to | 793 |
conduct video lottery terminals on behalf of the state pursuant to | 794 |
section 3770.21 of the Revised Code. | 795 |
(KK) "Postal service" means the United States postal service. | 796 |
(LL) "Certified mail," "express mail," "United States mail," | 797 |
"postal service," and similar terms include any delivery service | 798 |
authorized pursuant to section 5703.056 of the Revised Code. | 799 |
(MM) "Postmark date," "date of postmark," and similar terms | 800 |
include the date recorded and marked in the manner described in | 801 |
division (B)(3) of section 5703.056 of the Revised Code. | 802 |
(NN) "Related member" means a person that, with respect to | 803 |
the taxpayer during all or any portion of the taxable year, is | 804 |
either a related entity, a component member as defined in section | 805 |
1563(b) of the Internal Revenue Code, or a person to or from whom | 806 |
there is attribution of stock ownership in accordance with section | 807 |
1563(e) of the Internal Revenue Code except, for purposes of | 808 |
determining whether a person is a related member under this | 809 |
division, "twenty per cent" shall be substituted for "5 percent" | 810 |
wherever "5 percent" appears in section 1563(e) of the Internal | 811 |
Revenue Code. | 812 |
(OO) "Related entity" means any of the following: | 813 |
(1) An individual stockholder, or a member of the | 814 |
stockholder's family enumerated in section 318 of the Internal | 815 |
Revenue Code, if the stockholder and the members of the | 816 |
stockholder's family own directly, indirectly, beneficially, or | 817 |
constructively, in the aggregate, at least fifty per cent of the | 818 |
value of the taxpayer's outstanding stock; | 819 |
(2) A stockholder, or a stockholder's partnership, estate, | 820 |
trust, or corporation, if the stockholder and the stockholder's | 821 |
partnerships, estates, trusts, or corporations own directly, | 822 |
indirectly, beneficially, or constructively, in the aggregate, at | 823 |
least fifty per cent of the value of the taxpayer's outstanding | 824 |
stock; | 825 |
(3) A corporation, or a party related to the corporation in a | 826 |
manner that would require an attribution of stock from the | 827 |
corporation to the party or from the party to the corporation | 828 |
under division (OO)(4) of this section, provided the taxpayer owns | 829 |
directly, indirectly, beneficially, or constructively, at least | 830 |
fifty per cent of the value of the corporation's outstanding | 831 |
stock; | 832 |
(4) The attribution rules described in section 318 of the | 833 |
Internal Revenue Code apply for the purpose of determining whether | 834 |
the ownership requirements in divisions (OO)(1) to (3) of this | 835 |
section have been met. | 836 |
(PP)(1) "Written determination by the tax administrator" | 837 |
means a written ruling by a tax administrator in response to a | 838 |
written request by a taxpayer regarding the taxpayer's municipal | 839 |
income tax liability, including tax, penalty, interest, or any | 840 |
combination thereof, to the municipal corporation that commences | 841 |
the person's time limitation for making an appeal to the local | 842 |
board of tax review pursuant to section 718.11 of the Revised Code | 843 |
and that has "written determination" printed in all capital | 844 |
letters in a font size no smaller than eighteen point at the top | 845 |
of the first page of the written ruling. | 846 |
(2) "Written determination by the tax administrator" does not | 847 |
include a denial, in whole or in part, of a taxpayer's refund | 848 |
claim based on an originally filed annual tax return, a billing | 849 |
statement notifying a taxpayer of current or past-due balances | 850 |
owed to the municipal corporation, a tax administrator's request | 851 |
for additional information, a notification to the taxpayer of | 852 |
mathematical errors, or a tax administrator's other written | 853 |
correspondence to a person or taxpayer. | 854 |
(QQ) "Taxpayer rights and responsibilities" means the rights | 855 |
provided to taxpayers in sections 718.11, 718.12, 718.18, 718.19, | 856 |
718.23, 718.38, 5717.011, and 5717.03 of the Revised Code and the | 857 |
responsibilities of taxpayers to file, report, withhold, remit, | 858 |
and pay municipal income tax and otherwise comply with Chapter | 859 |
718. of the Revised Code and resolutions, ordinances, and rules | 860 |
adopted by a municipal corporation for the imposition and | 861 |
administration of a municipal income tax. | 862 |
(RR) "Qualified municipal corporation" means a municipal | 863 |
corporation that, by resolution or ordinance adopted on or before | 864 |
December 31, 2011, adopted Ohio adjusted gross income, as defined | 865 |
by section 5747.01 of the Revised Code, as the income subject to | 866 |
tax for the purposes of imposing a municipal income tax. | 867 |
(SS)(1) "Pre-2016 net operating loss carryforward" means any | 868 |
net operating loss incurred in a taxable year beginning before | 869 |
January 1, 2016, to the extent such loss was permitted, by a | 870 |
resolution or ordinance of the municipal corporation that was | 871 |
adopted by the municipal corporation before January 1, 2016, to be | 872 |
carried forward and utilized to offset income or net profit | 873 |
generated in such municipal corporation in future taxable years. | 874 |
(2) For the purpose of calculating municipal taxable income, | 875 |
any pre-2016 net operating loss carryforward may be carried | 876 |
forward to any taxable year, including taxable years beginning in | 877 |
2016 or thereafter, for the number of taxable years provided in | 878 |
the resolution or ordinance or until fully utilized, whichever is | 879 |
earlier. | 880 |
Sec. 718.011. (A) As used in this section: | 881 |
(1) "Employer" includes a person that is a related member to | 882 |
or of an employer. | 883 |
(2) "Professional athlete" means an athlete who performs | 884 |
services in a professional athletic event for wages or other | 885 |
remuneration. | 886 |
(3) "Professional entertainer" means a person who performs | 887 |
services in the professional performing arts for wages or other | 888 |
remuneration on a per-event basis. | 889 |
(4) "Public figure" means a person of prominence who performs | 890 |
services at discrete events, such as speeches, public appearances, | 891 |
or similar events, for wages or other remuneration on a per-event | 892 |
basis. | 893 |
(5) "Fixed location" means a permanent place of doing | 894 |
business in this state, such as an office, warehouse, storefront, | 895 |
or similar location owned or controlled by an employer. | 896 |
(6) "Worksite location" means a construction site or other | 897 |
temporary worksite in this state at which the employer provides | 898 |
services for more than twenty days during the calendar year. | 899 |
"Worksite location" does not include the home of an employee. | 900 |
(7) "Principal place of work" means the fixed location to | 901 |
which an employee is required to report for employment duties on a | 902 |
regular and ordinary basis. If the employee is not required to | 903 |
report for employment duties on a regular and ordinary basis to a | 904 |
fixed location, "principal place of work" means the worksite | 905 |
location to which the employee is required to report for | 906 |
employment duties on a regular and ordinary basis. If the employee | 907 |
is not required to report for employment duties on a regular and | 908 |
ordinary basis to a fixed location or worksite location, | 909 |
"principal place of work" means the location in this state at | 910 |
which the employee spends the greatest number of days in a | 911 |
calendar year performing services for or on behalf of the | 912 |
employee's employer. For the purposes of this division, the | 913 |
location at which an employee spends a particular day shall be | 914 |
determined in accordance with division (B)(2) of this section, | 915 |
except that "location" shall be substituted for "municipal | 916 |
corporation" wherever "municipal corporation" appears in that | 917 |
division. | 918 |
(B)(1) Subject to divisions (C), (E), and (F) of this | 919 |
section, an employer is not required to withhold municipal income | 920 |
tax on qualifying wages paid to an employee for the performance of | 921 |
personal services in a municipal corporation that imposes such a | 922 |
tax if the employee performed such services in the municipal | 923 |
corporation on twenty or fewer days in a calendar year, unless one | 924 |
of the following conditions applies: | 925 |
(a) The employee's principal place of work is located in the | 926 |
municipal corporation. | 927 |
(b) The employee is a resident of the municipal corporation | 928 |
and has requested that the employer withhold tax from the | 929 |
employee's qualifying wages as provided in section 718.03 of the | 930 |
Revised Code. | 931 |
(c) The employee is a professional athlete, professional | 932 |
entertainer, or public figure, and the qualifying wages are paid | 933 |
for the performance of services in the employee's capacity as a | 934 |
professional athlete, professional entertainer, or public figure. | 935 |
(2) For the purposes of division (B)(1) of this section, an | 936 |
employee shall be considered to have spent a day performing | 937 |
services in a municipal corporation only if the employee spent | 938 |
more time performing services for or on behalf of the employer in | 939 |
that municipal corporation than in any other municipal corporation | 940 |
on that day. For the purposes of determining the amount of time an | 941 |
employee spent in a particular location, the time spent performing | 942 |
one or more of the following activities shall be considered to | 943 |
have been spent at the employee's principal place of work: | 944 |
(a) Traveling to the location at which the employee will | 945 |
first perform services for the employer for the day; | 946 |
(b) Traveling from a location at which the employee was | 947 |
performing services for the employer to any other location; | 948 |
(c) Traveling from any location to another location in order | 949 |
to pick up or load, for the purpose of transportation or delivery, | 950 |
property that has been purchased, sold, assembled, fabricated, | 951 |
repaired, refurbished, processed, remanufactured, or improved by | 952 |
the employee's employer; | 953 |
(d) Transporting or delivering property described in division | 954 |
(B)(2)(c) of this section, provided that, upon delivery of the | 955 |
property, the employee does not temporarily or permanently affix | 956 |
the property to real estate owned, used, or controlled by a person | 957 |
other than the employee's employer; | 958 |
(e) Traveling from the location at which the employee makes | 959 |
the employee's final delivery or pick-up for the day to either the | 960 |
employee's principal place of work or a location at which the | 961 |
employee will not perform services for the employer. | 962 |
(C) If the principal place of work of an employee is located | 963 |
in a municipal corporation that imposes an income tax in | 964 |
accordance with this chapter, the exception from withholding | 965 |
requirements described in division (B)(1) of this section shall | 966 |
apply only if, with respect to the employee's qualifying wages | 967 |
described in that division, the employer withholds and remits tax | 968 |
on such qualifying wages to the municipal corporation in which the | 969 |
employee's principal place of work is located. | 970 |
(D)(1) Except as provided in division (D)(2) of this section, | 971 |
if, during a calendar year, the number of days an employee spends | 972 |
performing personal services in a municipal corporation exceeds | 973 |
the twenty-day threshold described in division (B)(1) of this | 974 |
section, the employer shall withhold and remit tax to that | 975 |
municipal corporation for any subsequent days in that calendar | 976 |
year on which the employer pays qualifying wages to the employee | 977 |
for personal services performed in that municipal corporation. | 978 |
(2) An employer required to begin withholding tax for a | 979 |
municipal corporation under division (D)(1) of this section may | 980 |
elect to withhold tax for that municipal corporation for the first | 981 |
twenty days on which the employer paid qualifying wages to the | 982 |
employee for personal services performed in that municipal | 983 |
corporation. The employer shall make the election on the annual | 984 |
tax return the employer files with the municipal corporation under | 985 |
section 718.05 or 718.06 of the Revised Code. Taxes withheld and | 986 |
paid by such an employer during those first twenty days to the | 987 |
municipal corporation in which the employee's principal place of | 988 |
work is located are refundable to the employee. | 989 |
(E) Without regard to the number of days in a calendar year | 990 |
on which an employee performs personal services in any municipal | 991 |
corporation, an employer shall withhold municipal income tax on | 992 |
all of the employee's qualifying wages for a taxable year and | 993 |
remit that tax only to the municipal corporation in which the | 994 |
employer's fixed location is located if the total gross receipts | 995 |
of the employer for the preceding taxable year were less than five | 996 |
hundred thousand dollars. | 997 |
To determine whether an employer meets the requirements of | 998 |
division (E) of this section for a taxable year, a tax | 999 |
administrator may require the employer to provide the tax | 1000 |
administrator with the employer's federal income tax return for | 1001 |
the preceding taxable year. | 1002 |
(F) Divisions (B)(1) and (D) of this section shall not apply | 1003 |
to the extent that a tax administrator and an employer enter into | 1004 |
an agreement regarding the manner in which the employer shall | 1005 |
comply with the requirements of section 718.03 of the Revised | 1006 |
Code. | 1007 |
Sec. 718.012. (A)(1) As used in this chapter, "domicile" | 1008 |
means the principal residence that an individual intends to use | 1009 |
for an indefinite period of time and to which, whenever absent, | 1010 |
the individual intends to return. An individual is domiciled in a | 1011 |
municipal corporation for all or part of a taxable year if, based | 1012 |
on the factors described in division (B) of this section and any | 1013 |
other factor the tax administrator considers relevant or which | 1014 |
demonstrates an intent to return, the tax administrator reasonably | 1015 |
concludes that the individual is domiciled in the municipal | 1016 |
corporation for all or part of the taxable year. | 1017 |
(2) An individual may rebut the conclusion of domicile | 1018 |
described in division (A)(1) of this section only if, based on the | 1019 |
factors described in division (B) of this section and any other | 1020 |
factor the individual considers relevant, the individual | 1021 |
establishes by a preponderance of the evidence that the individual | 1022 |
was not domiciled in the municipal corporation for all or part of | 1023 |
the taxable year. | 1024 |
(B) The factors that a tax administrator may consider when | 1025 |
determining whether an individual is domiciled in a municipal | 1026 |
corporation for all or part of a taxable year include, but are not | 1027 |
limited to, the following: | 1028 |
(1) The location of law firms, accounting firms, health care | 1029 |
providers, and similar professionals utilized by the individual or | 1030 |
the individual's spouse; | 1031 |
(2) The location of organizations described in section 501(c) | 1032 |
of the Internal Revenue Code to which the individual or the | 1033 |
individual's spouse make contributions or other payments or in | 1034 |
which they participate as a congregant, member, board member, | 1035 |
committee member, adviser, or consultant; | 1036 |
(3) The location, place of business, or place of organization | 1037 |
or incorporation of a corporation, partnership, limited liability | 1038 |
company, or other business venture or entity in which the | 1039 |
individual or the individual's spouse is a shareholder or limited | 1040 |
partner or for which the individual or individual's spouse is a | 1041 |
member of the board of directors; | 1042 |
(4) The location of the individual's friends, dependents as | 1043 |
defined in section 152 of the Internal Revenue Code, and family | 1044 |
members other than the individual's spouse; | 1045 |
(5) The location of educational institutions that are | 1046 |
attended by the individual's dependents as defined in section 152 | 1047 |
of the Internal Revenue Code or from which the individual or the | 1048 |
individual's spouse or dependents claimed the benefit of in-state | 1049 |
tuition rates available only to individuals domiciled in the | 1050 |
state; | 1051 |
(6) The location of all businesses at which the individual or | 1052 |
the individual's spouse makes purchases of tangible personal | 1053 |
property; | 1054 |
(7) Whether the individual is registered to vote, or has | 1055 |
voted, in the municipal corporation during the taxable year; | 1056 |
(8) The location at which the individual acquired or renewed | 1057 |
the individual's Ohio driver's license, or the location at which | 1058 |
the individual's vehicle is registered, for the taxable year; | 1059 |
(9) The place of employment of the individual or the | 1060 |
individual's spouse. | 1061 |
(10) The location of any real property owned or leased by the | 1062 |
individual or the individual's spouse. | 1063 |
(11) The address used by the individual or the individual's | 1064 |
spouse on federal or state tax returns, bills, invoices, credit | 1065 |
card statements, utility bills, and other mailings for the taxable | 1066 |
year. | 1067 |
(C) A taxpayer has only one domicile. A domicile once | 1068 |
acquired is presumed to continue until it is shown to have been | 1069 |
changed. When a taxpayer alleges a change of domicile, the | 1070 |
taxpayer bears the burden of proof of demonstrating the change as | 1071 |
provided in division (A)(2) of this section. | 1072 |
Sec. 718.02. This section | 1073 |
1074 | |
1075 | |
profession in a municipal corporation that imposes an income tax | 1076 |
in accordance with this chapter, unless the taxpayer is an | 1077 |
individual who resides in the municipal corporation or the | 1078 |
taxpayer is an electric company, combined company, or telephone | 1079 |
company that is subject to and required to file reports under | 1080 |
Chapter 5745. of the Revised Code. | 1081 |
(A) Except as otherwise provided in division | 1082 |
section, net profit from a business or profession conducted both | 1083 |
within and without the boundaries of a municipal corporation shall | 1084 |
be considered as having a taxable situs in | 1085 |
corporation for purposes of municipal income taxation in the same | 1086 |
proportion as the average ratio of the following: | 1087 |
(1) The average original cost of the real and tangible | 1088 |
personal property owned or used by the taxpayer in the business or | 1089 |
profession in | 1090 |
period to the average original cost of all of the real and | 1091 |
tangible personal property owned or used by the taxpayer in the | 1092 |
business or profession during the same period, wherever situated. | 1093 |
As used in the preceding paragraph, tangible personal or real | 1094 |
property shall include property rented or leased by the taxpayer | 1095 |
and the value of such property shall be determined by multiplying | 1096 |
the annual rental thereon by eight; | 1097 |
(2) Wages, salaries, and other compensation paid during the | 1098 |
taxable period to | 1099 |
profession for services performed in | 1100 |
corporation to wages, salaries, and other compensation paid during | 1101 |
the same period to
| 1102 |
profession, wherever | 1103 |
performed, excluding compensation
| 1104 |
1105 | |
not required to be withheld under section 718.011 of the Revised | 1106 |
Code; | 1107 |
(3) | 1108 |
from sales and rentals made and services performed during the | 1109 |
taxable period in
| 1110 |
receipts of the business or profession during the same period from | 1111 |
sales, rentals, and services, wherever made or performed. | 1112 |
| 1113 |
1114 | |
1115 |
| 1116 |
1117 |
| 1118 |
1119 | |
1120 | |
1121 |
| 1122 |
1123 | |
1124 | |
1125 | |
1126 | |
1127 | |
1128 |
| 1129 |
1130 | |
1131 | |
1132 | |
1133 | |
1134 |
| 1135 |
1136 | |
evidence that the apportionment factors described in division (A) | 1137 |
of this section do not fairly represent the extent of a taxpayer's | 1138 |
business activity in a municipal corporation, the tax | 1139 |
administrator of the municipal corporation may require the | 1140 |
taxpayer to use, with respect to all or any portion of the income | 1141 |
of the taxpayer, an alternative apportionment method involving one | 1142 |
or more of the following: | 1143 |
(a) Separate accounting; | 1144 |
(b) The exclusion of one or more of the factors; | 1145 |
(c) The inclusion of one or more additional factors that | 1146 |
would provide for a more fair apportionment of the income of the | 1147 |
taxpayer to the municipal corporation; | 1148 |
(d) A modification of one or more of the factors. | 1149 |
(2) A taxpayer may use an alternative apportionment method on | 1150 |
the taxpayer's tax return, provided the taxpayer notifies the tax | 1151 |
administrator before filing the return. A taxpayer may not use an | 1152 |
alternative apportionment method, an alternative method of | 1153 |
accounting, or an alternative method of filing on a timely filed | 1154 |
amended tax return without notifying the tax administrator before | 1155 |
filing the return. An alternative apportionment method shall apply | 1156 |
only to the taxable years included in the taxpayer's notification | 1157 |
to the tax administrator. | 1158 |
(C) As used in division (A)(2) of this section, "wages, | 1159 |
salaries, and other compensation" includes only wages, salaries, | 1160 |
or other compensation paid to an employee for services performed | 1161 |
at any of the following locations: | 1162 |
(1) A location that is owned, controlled, or used by, rented | 1163 |
to, or under the possession of one of the following: | 1164 |
(a) The employer; | 1165 |
(b) A vendor, customer, client, or patient of the employer, | 1166 |
or a related member of such a vendor, customer, client, or | 1167 |
patient; | 1168 |
(c) A vendor, customer, client, or patient of a person | 1169 |
described in division (C)(1)(b) of this section, or a related | 1170 |
member of such a vendor, customer, client, or patient. | 1171 |
(2) Any location at which a trial, appeal, hearing, | 1172 |
investigation, inquiry, review, court-martial, or similar | 1173 |
administrative, judicial, or legislative matter or proceeding is | 1174 |
being conducted, provided that the compensation is paid for | 1175 |
services performed for, or on behalf of, the employer or that the | 1176 |
employee's presence at the location directly or indirectly | 1177 |
benefits the employer; | 1178 |
(3) Any other location, if the tax administrator determines | 1179 |
that the employer directed the employee to perform the services at | 1180 |
the other location in lieu of a location described in division | 1181 |
(C)(1) or (2) of this section solely in order to avoid or reduce | 1182 |
the employer's municipal income tax liability. If a tax | 1183 |
administrator makes such a determination, the employer may dispute | 1184 |
the determination by establishing, by a preponderance of the | 1185 |
evidence, that the tax administrator's determination was | 1186 |
unreasonable. | 1187 |
(D) For the purposes of division (A)(3) of this section, | 1188 |
receipts from sales and rentals made and services performed shall | 1189 |
be sitused to a municipal corporation as follows: | 1190 |
(1) Gross receipts from the sale of tangible personal | 1191 |
property shall be sitused to the municipal corporation in which | 1192 |
the sale originated. For the purposes of this division, a sale of | 1193 |
property originates in a municipal corporation if, regardless of | 1194 |
where title passes, the property meets any of the following | 1195 |
criteria: | 1196 |
(a) The property is shipped to or delivered within the | 1197 |
municipal corporation from a stock of goods located within the | 1198 |
municipal corporation. | 1199 |
(b) The property is delivered within the municipal | 1200 |
corporation from a location outside the municipal corporation, | 1201 |
provided the taxpayer is regularly engaged through its own | 1202 |
employees in the solicitation or promotion of sales within such | 1203 |
municipal corporation and the sales result from such solicitation | 1204 |
or promotion. | 1205 |
(c) The property is shipped from a place within the municipal | 1206 |
corporation to purchasers outside the municipal corporation, | 1207 |
provided that the taxpayer is not regularly engaged in the | 1208 |
solicitation or promotion of sales at the place where delivery is | 1209 |
made. | 1210 |
(2) Gross receipts from the sale of services shall be sitused | 1211 |
to the municipal corporation to the extent that such services are | 1212 |
performed in the municipal corporation. | 1213 |
(3) To the extent included in income, gross receipts from the | 1214 |
sale of real property located in the municipal corporation shall | 1215 |
be sitused to the municipal corporation. | 1216 |
(4) To the extent included in income, gross receipts from | 1217 |
rents and royalties from real property located in the municipal | 1218 |
corporation shall be sitused to the municipal corporation. | 1219 |
(5) Gross receipts from rents and royalties from tangible | 1220 |
personal property shall be sitused to the municipal corporation | 1221 |
based upon the extent to which the tangible personal property is | 1222 |
used in the municipal corporation. | 1223 |
(E) The net profit of an individual from rental activity | 1224 |
1225 | |
by the municipal corporation in which the property generating the | 1226 |
net profit is located and the municipal corporation in which the | 1227 |
taxpayer that receives the net profit resides. | 1228 |
| 1229 |
1230 | |
1231 | |
1232 | |
1233 | |
1234 |
| 1235 |
1236 | |
1237 | |
1238 | |
1239 | |
1240 | |
1241 | |
1242 | |
1243 | |
1244 | |
1245 | |
1246 | |
1247 | |
1248 | |
1249 |
| 1250 |
1251 | |
1252 | |
1253 |
A municipal corporation shall allow taxpayers to elect to use | 1254 |
separate accounting for the purpose of calculating net profit | 1255 |
sitused to the municipal corporation under this division, but | 1256 |
shall permit such an election only if the taxpayer requests to | 1257 |
make the same election in every municipal corporation in which the | 1258 |
taxpayer must report such net profit for the taxable year and if | 1259 |
the taxpayer agrees to use separate accounting with respect to | 1260 |
such net profit in every municipal corporation that approves such | 1261 |
a request for at least five consecutive taxable years after making | 1262 |
the election. | 1263 |
(F)(1) Except as provided in division (F)(2) of this section, | 1264 |
commissions received by a real estate agent or broker relating to | 1265 |
the sale, purchase, or lease of real estate shall be sitused to | 1266 |
the municipal corporation in which the real estate is located. Net | 1267 |
profit reported by the real estate agent or broker shall be | 1268 |
allocated to a municipal corporation based upon the ratio of the | 1269 |
commissions the agent or broker received from the sale, purchase, | 1270 |
or lease of real estate located in the municipal corporation to | 1271 |
the commissions received from the sale, purchase, or lease of real | 1272 |
estate everywhere in the taxable year. | 1273 |
(2) An individual who is a resident of a municipal | 1274 |
corporation that imposes a municipal income tax shall report the | 1275 |
individual's net profit from all real estate activity on the | 1276 |
individual's annual tax return for that municipal corporation. The | 1277 |
individual may claim a credit for taxes the individual paid on | 1278 |
such net profit to another municipal corporation to the extent | 1279 |
that such a credit is allowed under the municipal income tax | 1280 |
ordinance, or rules of the municipal corporation of residence. | 1281 |
(G) If, in computing a taxpayer's adjusted federal taxable | 1282 |
income, the taxpayer deducted any amount with respect to a stock | 1283 |
option granted to an employee, and if the employee is not required | 1284 |
to include in the employee's income any such amount or a portion | 1285 |
thereof because it is exempted from taxation under divisions | 1286 |
(C)(12) and (R)(1)(d) of section 718.01 of the Revised Code by a | 1287 |
municipal corporation to which the taxpayer has apportioned a | 1288 |
portion of its net profit, the taxpayer shall add the amount that | 1289 |
is exempt from taxation to the taxpayer's net profit that was | 1290 |
apportioned to that municipal corporation. In no case shall a | 1291 |
taxpayer be required to add to its net profit that was apportioned | 1292 |
to that municipal corporation any amount other than the amount | 1293 |
upon which the employee would be required to pay tax were the | 1294 |
amount related to the stock option not exempted from taxation. | 1295 |
This division applies solely for the purpose of making an | 1296 |
adjustment to the amount of a taxpayer's net profit that was | 1297 |
apportioned to a municipal corporation under this section. | 1298 |
(H) When calculating the ratios described in division (A) of | 1299 |
this section for the purposes of that division or division (B) of | 1300 |
this section, the owner of a disregarded entity shall include in | 1301 |
the owner's ratios the property, payroll, and gross receipts of | 1302 |
such disregarded entity. | 1303 |
Sec. 718.03. (A) | 1304 |
( | 1305 |
1306 | |
1307 | |
1308 |
| 1309 |
1310 | |
1311 |
| 1312 |
| 1313 |
1314 | |
1315 |
| 1316 |
1317 | |
1318 |
| 1319 |
| 1320 |
1321 |
| 1322 |
1323 | |
1324 | |
1325 | |
1326 | |
1327 | |
1328 | |
1329 |
| 1330 |
1331 | |
1332 | |
1333 |
| 1334 |
1335 | |
1336 |
| 1337 |
1338 | |
1339 | |
1340 | |
1341 |
| 1342 |
1343 | |
1344 | |
1345 | |
1346 | |
1347 |
| 1348 |
1349 | |
1350 | |
1351 | |
1352 | |
1353 |
| 1354 |
located or doing business in a municipal corporation that imposes | 1355 |
a tax on income in accordance with this chapter shall withhold | 1356 |
from each employee an amount equal to the qualifying wages of the | 1357 |
employee earned by the employee in the municipal corporation | 1358 |
multiplied by the applicable rate of the municipal corporation's | 1359 |
income tax, except for qualifying wages for which withholding is | 1360 |
not required under section 718.011 of the Revised Code or division | 1361 |
(D) or (F) of this section. An employer, agent of an employer, or | 1362 |
other payer shall deduct and withhold the tax from qualifying | 1363 |
wages on the date that the employer, agent, or other payer | 1364 |
directly, indirectly, or constructively pays the qualifying wages | 1365 |
to, or credits the qualifying wages to the benefit of, the | 1366 |
employee. | 1367 |
An employer, agent of an employer, or other payer may deduct | 1368 |
and withhold, on the request of an employee, taxes for the | 1369 |
municipal corporation in which the employee is a resident. | 1370 |
(B)(1) Except as provided in division (B)(2) of this section, | 1371 |
an employer, agent of an employer, or other payer shall remit to | 1372 |
the tax administrator of a municipal corporation the greater of | 1373 |
the income taxes deducted and withheld or the income taxes | 1374 |
required to be deducted and withheld by the employer, agent, or | 1375 |
other payer according to the following schedule: | 1376 |
(a) Taxes required to be deducted and withheld shall be | 1377 |
remitted monthly to the tax administrator if the total taxes | 1378 |
deducted and withheld or required to be deducted and withheld by | 1379 |
the employer, agent, or other payer on behalf of the municipal | 1380 |
corporation in the preceding calendar year exceeded two thousand | 1381 |
three hundred ninety-nine dollars, or if the total amount of taxes | 1382 |
deducted and withheld or required to be deducted and withheld on | 1383 |
behalf of the municipal corporation in any month of the preceding | 1384 |
calendar quarter exceeded two hundred dollars. | 1385 |
Payment under division (B)(1)(a) of this section shall be | 1386 |
made so that the payment is received by the tax administrator not | 1387 |
later than fifteen days after the last day of each month. | 1388 |
(b) Any employer, agent of an employer, or other payer not | 1389 |
required to make payments under division (B)(1)(a) of this section | 1390 |
of taxes required to be deducted and withheld shall make quarterly | 1391 |
payments to the tax administrator not later than the fifteenth day | 1392 |
of the month following the end of each calendar quarter. | 1393 |
(2) Notwithstanding division (B)(1) of this section, a | 1394 |
municipal corporation may require, by resolution, ordinance, or | 1395 |
rule, an employer, agent of an employer, or other payer to do any | 1396 |
of the following: | 1397 |
(a) Remit taxes deducted and withheld semimonthly to the tax | 1398 |
administrator if the total taxes deducted and withheld or required | 1399 |
to be deducted and withheld on behalf of the municipal corporation | 1400 |
in the preceding calendar year exceeded eleven thousand nine | 1401 |
hundred ninety-nine dollars, or if the total amount of taxes | 1402 |
deducted and withheld or required to be deducted and withheld on | 1403 |
behalf of the municipal corporation in any month of the preceding | 1404 |
calendar year exceeded one thousand dollars. The payment under | 1405 |
division (B)(2)(a) of this section shall be made so that the | 1406 |
payment is received by the tax administrator not later than one of | 1407 |
the following: | 1408 |
(i) If the taxes were deducted and withheld or required to be | 1409 |
deducted and withheld during the first fifteen days of a month, | 1410 |
the third banking day after the fifteenth day of that month; | 1411 |
(ii) If the taxes were deducted and withheld or required to | 1412 |
be deducted and withheld after the fifteenth day of a month and | 1413 |
before the first day of the immediately following month, the third | 1414 |
banking day after the last day of that month. | 1415 |
(b) Remit electronically to the tax administrator on the | 1416 |
following business day all taxes deducted and withheld on behalf | 1417 |
of the municipal corporation if on any day the total amount of | 1418 |
such taxes withheld but not remitted is at least one hundred | 1419 |
thousand dollars. | 1420 |
(c) Make payment by electronic funds transfer to the tax | 1421 |
administrator of all taxes deducted and withheld on behalf of the | 1422 |
municipal corporation if the employer, agent of an employer, or | 1423 |
other payer that is required to make payments electronically for | 1424 |
the purpose of paying federal taxes withheld on payments to | 1425 |
employees under section 6302 of the Internal Revenue Code, 26 | 1426 |
C.F.R. 31.6302-1, or any other federal statute or regulation. The | 1427 |
payment of tax by electronic funds transfer under this division | 1428 |
does not affect an employer's, agent's, or other payer's | 1429 |
obligation to file any return as required under this section. | 1430 |
(C) An employer, agent of an employer, or other payer shall | 1431 |
make and file a return showing the amount of tax withheld by the | 1432 |
employer, agent, or other payer from the qualifying wages of each | 1433 |
employee and remitted to the tax administrator. Unless the tax | 1434 |
administrator requires all individual taxpayers to file a tax | 1435 |
return under section 718.05 of the Revised Code, a return filed by | 1436 |
an employer, agent, or other payer under this division shall be | 1437 |
accepted by a tax administrator and municipal corporation as the | 1438 |
return required of an employee whose sole income subject to the | 1439 |
tax under this chapter is the qualifying wages reported by the | 1440 |
employee's employer, agent of an employer, or other payer. | 1441 |
(D) An employer, agent of an employer, or other payer is not | 1442 |
required to | 1443 |
with respect to an individual's disqualifying disposition of an | 1444 |
incentive stock option if, at the time of the disqualifying | 1445 |
disposition, the individual is not an employee of either the | 1446 |
corporation with respect to whose stock the option has been issued | 1447 |
or of such corporation's successor entity. | 1448 |
| 1449 |
tax by the failure of the employer, agent of an employer, or other | 1450 |
payer to withhold the tax as required | 1451 |
under this chapter or by the employer's, agent's, or other payer's | 1452 |
exemption from the requirement to withhold the tax. | 1453 |
(2) The failure of an employer, agent of an employer, or | 1454 |
other payer to remit to the municipal corporation the tax withheld | 1455 |
relieves the employee from liability for that tax unless the | 1456 |
employee colluded with the employer, agent, or other payer in | 1457 |
connection with the failure to remit the tax withheld. | 1458 |
| 1459 |
subject to any municipal corporation income tax or municipal | 1460 |
income tax withholding requirement to the extent the deferred | 1461 |
compensation does not constitute qualifying wages at the time the | 1462 |
deferred compensation is paid or distributed. | 1463 |
| 1464 |
1465 | |
1466 | |
1467 | |
1468 | |
1469 |
(G) Each employer, agent of an employer, or other payer | 1470 |
required to withhold taxes is liable for the payment of that | 1471 |
amount required to be withheld, whether or not such taxes have | 1472 |
been withheld, and such amount shall be deemed to be held in trust | 1473 |
for the municipal corporation until such time as the withheld | 1474 |
amount is remitted to the tax administrator. | 1475 |
(H) On or before the last day of February of each year, an | 1476 |
employer shall file a withholding reconciliation return with the | 1477 |
tax administrator listing the names, addresses, and social | 1478 |
security numbers of all employees from whose qualifying wages tax | 1479 |
was withheld or should have been withheld for the municipal | 1480 |
corporation during the preceding calendar year and of all | 1481 |
employees from whose qualifying wages tax was not withheld for the | 1482 |
municipal corporation during the preceding calendar year as a | 1483 |
result of those wages qualifying as exempt income under division | 1484 |
(C)(16) of section 718.01 of the Revised Code, the amount of tax | 1485 |
withheld, if any, from each such employee, the total amount of | 1486 |
qualifying wages paid to such employee during the preceding | 1487 |
calendar year, and other information as may be required by the tax | 1488 |
administrator. | 1489 |
(I) The officer or the employee of the employer, agent of an | 1490 |
employer, or other payer with control or direct supervision of or | 1491 |
charged with the responsibility for withholding the tax or filing | 1492 |
the reports and making payments as required by this section, shall | 1493 |
be personally liable for a failure to file a report or pay the tax | 1494 |
due as required by this section. The dissolution of an employer, | 1495 |
agent of an employer, or other payer does not discharge the | 1496 |
officer's or employee's liability for a failure of the employer, | 1497 |
agent of an employer, or other payer to file returns or pay any | 1498 |
tax due. | 1499 |
(J) An employer is required to deduct and withhold municipal | 1500 |
income tax on tips and gratuities received by the employer's | 1501 |
employees and constituting qualifying wages only to the extent | 1502 |
that the tips and gratuities are under the employer's control. For | 1503 |
the purposes of this division, a tip or gratuity is under the | 1504 |
employer's control if the tip or gratuity is paid by the customer | 1505 |
to the employer for subsequent remittance to the employee, or if | 1506 |
the customer pays the tip or gratuity by credit card, debit card, | 1507 |
or other electronic means. | 1508 |
(K) A tax administrator shall consider any tax withheld by an | 1509 |
employer at the request of an employee when such tax is not | 1510 |
otherwise required to be withheld by this chapter to be tax | 1511 |
required to be withheld and remitted for the purposes of this | 1512 |
section. | 1513 |
Sec. 718.031. (A) A municipal corporation shall require a | 1514 |
casino facility or a casino operator, as defined in Section | 1515 |
6(C)(9) of Article XV, Ohio Constitution, and section 3772.01 of | 1516 |
the Revised Code, respectively, or a lottery sales agent | 1517 |
conducting video lottery terminals on behalf of the state to | 1518 |
withhold and remit municipal income tax with respect to amounts | 1519 |
other than qualifying wages as provided in this section. | 1520 |
(B) If a person's winnings at a casino facility are an amount | 1521 |
for which reporting to the internal revenue service of the amount | 1522 |
is required by section 6041 of the Internal Revenue Code, as | 1523 |
amended, the casino operator shall deduct and withhold municipal | 1524 |
income tax from the person's winnings at the rate of the tax | 1525 |
imposed by the municipal corporation in which the casino facility | 1526 |
is located. | 1527 |
(C) Amounts deducted and withheld by a casino operator are | 1528 |
held in trust for the benefit of the municipal corporation to | 1529 |
which the tax is owed. | 1530 |
(1) On or before the tenth day of each month, the casino | 1531 |
operator shall file a return electronically with the tax | 1532 |
administrator of the municipal corporation, identifying the person | 1533 |
from whose winnings amounts were deducted and withheld, the amount | 1534 |
of each such deduction and withholding during the preceding | 1535 |
calendar month, the amount of the winnings from which each such | 1536 |
amount was withheld, the type of casino gaming that resulted in | 1537 |
such winnings, and any other information required by the tax | 1538 |
administrator. With this return, the casino operator shall remit | 1539 |
electronically to the municipal corporation all amounts deducted | 1540 |
and withheld during the preceding month. | 1541 |
(2) Annually, on or before the thirty-first day of January, a | 1542 |
casino operator shall file an annual return electronically with | 1543 |
the tax administrator of the municipal corporation in which the | 1544 |
casino facility is located, indicating the total amount deducted | 1545 |
and withheld during the preceding calendar year. The casino | 1546 |
operator shall remit electronically with the annual return any | 1547 |
amount that was deducted and withheld and that was not previously | 1548 |
remitted. If the identity of a person and the amount deducted and | 1549 |
withheld with respect to that person were omitted on a monthly | 1550 |
return for that reporting period, that information shall be | 1551 |
indicated on the annual return. | 1552 |
(3) Annually, on or before the thirty-first day of January, a | 1553 |
casino operator shall issue an information return to each person | 1554 |
with respect to whom an amount has been deducted and withheld | 1555 |
during the preceding calendar year. The information return shall | 1556 |
show the total amount of municipal income tax deducted from the | 1557 |
person's winnings during the preceding year. The casino operator | 1558 |
shall provide to the tax administrator a copy of each information | 1559 |
return issued under this division. The administrator may require | 1560 |
that such copies be transmitted electronically. | 1561 |
(4) A casino operator that fails to file a return and remit | 1562 |
the amounts deducted and withheld shall be personally liable for | 1563 |
the amount withheld and not remitted. Such personal liability | 1564 |
extends to any penalty and interest imposed for the late filing of | 1565 |
a return or the late payment of tax deducted and withheld. | 1566 |
(5) If a casino operator sells the casino facility or | 1567 |
otherwise quits the casino business, the amounts deducted and | 1568 |
withheld along with any penalties and interest thereon are | 1569 |
immediately due and payable. The successor shall withhold an | 1570 |
amount of the purchase money that is sufficient to cover the | 1571 |
amounts deducted and withheld along with any penalties and | 1572 |
interest thereon until the predecessor casino operator produces | 1573 |
either of the following: | 1574 |
(a) A receipt from the tax administrator showing that the | 1575 |
amounts deducted and withheld and penalties and interest thereon | 1576 |
have been paid; | 1577 |
(b) A certificate from the tax administrator indicating that | 1578 |
no amounts are due. | 1579 |
If the successor fails to withhold purchase money, the | 1580 |
successor is personally liable for the payment of the amounts | 1581 |
deducted and withheld and penalties and interest thereon. | 1582 |
(6) The failure of a casino operator to deduct and withhold | 1583 |
the required amount from a person's winnings does not relieve that | 1584 |
person from liability for the municipal income tax with respect to | 1585 |
those winnings. | 1586 |
(D) If a person's prize award from a video lottery terminal | 1587 |
is an amount for which reporting to the internal revenue service | 1588 |
is required by section 6041 of the Internal Revenue Code, as | 1589 |
amended, the video lottery sales agent shall deduct and withhold | 1590 |
municipal income tax from the person's prize award at the rate of | 1591 |
the tax imposed by the municipal corporation in which the video | 1592 |
lottery terminal facility is located. | 1593 |
(E) Amounts deducted and withheld by a video lottery sales | 1594 |
agent are held in trust for the benefit of the municipal | 1595 |
corporation to which the tax is owed. | 1596 |
(1) The video lottery sales agent shall issue to a person | 1597 |
from whose prize award an amount has been deducted and withheld a | 1598 |
receipt for the amount deducted and withheld, and shall obtain | 1599 |
from the person receiving a prize award the person's name, | 1600 |
address, and social security number in order to facilitate the | 1601 |
preparation of returns required by this section. | 1602 |
(2) On or before the tenth day of each month, the video | 1603 |
lottery sales agent shall file a return electronically with the | 1604 |
tax administrator of the municipal corporation identifying the | 1605 |
persons from whose prize awards amounts were deducted and | 1606 |
withheld, the amount of each such deduction and withholding during | 1607 |
the preceding calendar month, the amount of the prize award from | 1608 |
which each such amount was withheld, and any other information | 1609 |
required by the tax administrator. With the return, the video | 1610 |
lottery sales agent shall remit electronically to the tax | 1611 |
administrator all amounts deducted and withheld during the | 1612 |
preceding month. | 1613 |
(3) A video lottery sales agent shall maintain a record of | 1614 |
all receipts issued under division (E) of this section and shall | 1615 |
make those records available to the tax administrator upon | 1616 |
request. Such records shall be maintained in accordance with | 1617 |
section 5747.17 of the Revised Code and any rules adopted pursuant | 1618 |
thereto. | 1619 |
(4) Annually, on or before the thirty-first day of January, | 1620 |
each video lottery terminal sales agent shall file an annual | 1621 |
return electronically with the tax administrator of the municipal | 1622 |
corporation in which the facility is located indicating the total | 1623 |
amount deducted and withheld during the preceding calendar year. | 1624 |
The video lottery sales agent shall remit electronically with the | 1625 |
annual return any amount that was deducted and withheld and that | 1626 |
was not previously remitted. If the identity of a person and the | 1627 |
amount deducted and withheld with respect to that person were | 1628 |
omitted on a monthly return for that reporting period, that | 1629 |
information shall be indicated on the annual return. | 1630 |
(5) Annually, on or before the thirty-first day of January, a | 1631 |
video lottery sales agent shall issue an information return to | 1632 |
each person with respect to whom an amount has been deducted and | 1633 |
withheld during the preceding calendar year. The information | 1634 |
return shall show the total amount of municipal income tax | 1635 |
deducted and withheld from the person's prize award by the video | 1636 |
lottery sales agent during the preceding year. A video lottery | 1637 |
sales agent shall provide to the tax administrator of the | 1638 |
municipal corporation a copy of each information return issued | 1639 |
under this division. The tax administrator may require that such | 1640 |
copies be transmitted electronically. | 1641 |
(6) A video lottery sales agent who fails to file a return | 1642 |
and remit the amounts deducted and withheld is personally liable | 1643 |
for the amount deducted and withheld and not remitted. Such | 1644 |
personal liability extends to any penalty and interest imposed for | 1645 |
the late filing of a return or the late payment of tax deducted | 1646 |
and withheld. | 1647 |
(F) If a video lottery sales agent ceases to operate video | 1648 |
lottery terminals, the amounts deducted and withheld along with | 1649 |
any penalties and interest thereon are immediately due and | 1650 |
payable. The successor of the video lottery sales agent that | 1651 |
purchases the video lottery terminals from the agent shall | 1652 |
withhold an amount from the purchase money that is sufficient to | 1653 |
cover the amounts deducted and withheld and any penalties and | 1654 |
interest thereon until the predecessor video lottery sales agent | 1655 |
operator produces either of the following: | 1656 |
(1) A receipt from the tax administrator showing that the | 1657 |
amounts deducted and withheld and penalties and interest thereon | 1658 |
have been paid; | 1659 |
(2) A certificate from the tax administrator indicating that | 1660 |
no amounts are due. | 1661 |
If the successor fails to withhold purchase money, the | 1662 |
successor is personally liable for the payment of the amounts | 1663 |
deducted and withheld and penalties and interest thereon. | 1664 |
(G) The failure of a video lottery sales agent to deduct and | 1665 |
withhold the required amount from a person's prize award does not | 1666 |
relieve that person from liability for the municipal income tax | 1667 |
with respect to that prize award. | 1668 |
(H) The tax administrator of a municipal corporation may | 1669 |
impose a penalty of up to one thousand dollars if a casino | 1670 |
operator or video lottery sales agent files a return late, fails | 1671 |
to file a return, remits amounts deducted and withheld late, or | 1672 |
fails to remit amounts deducted and withheld as required under | 1673 |
this section. Interest shall accrue on past due amounts deducted | 1674 |
and withheld at the rate prescribed in section 5703.47 of the | 1675 |
Revised Code. | 1676 |
(I) Amounts deducted and withheld on behalf of a municipal | 1677 |
corporation shall be allowed as a credit against payment of the | 1678 |
tax imposed by the municipal corporation and shall be treated as | 1679 |
taxes paid for purposes of section 718.08 of the Revised Code. | 1680 |
This division applies only to the person for whom the amount is | 1681 |
deducted and withheld. | 1682 |
(J) The tax administrator shall prescribe the forms of the | 1683 |
receipts and returns required under this section. | 1684 |
Sec. 718.04. (A) A municipal corporation may levy a tax on | 1685 |
income only in accordance with the limitations specified in this | 1686 |
chapter. On or after January 1, 2015, the ordinance or resolution | 1687 |
levying the tax, as adopted or amended by the legislative | 1688 |
authority of the municipal corporation, shall include all of the | 1689 |
following: | 1690 |
(1) A statement that the tax is an annual tax levied on the | 1691 |
income of every person residing in or earning or receiving income | 1692 |
in the municipal corporation and that the tax shall be measured by | 1693 |
municipal taxable income; | 1694 |
(2) A statement that the municipal corporation is levying the | 1695 |
tax in accordance with the limitations specified in this chapter | 1696 |
and that the resolution or ordinance thereby incorporates the | 1697 |
provisions of this chapter; | 1698 |
(3) The rate of the tax; | 1699 |
(4) Whether, and the extent to which, a credit, as described | 1700 |
in division (D) of this section, will be allowed against the tax; | 1701 |
(5) The purpose or purposes of the tax; | 1702 |
(6) Any other provision necessary for the administration of | 1703 |
the tax, provided that the provision does not conflict with any | 1704 |
provision of this chapter. | 1705 |
(B) Any municipal corporation that, on or before the | 1706 |
effective date of the enactment of this section, levies an income | 1707 |
tax at a rate in excess of one per cent may continue to levy the | 1708 |
tax at the rate specified in the original ordinance or resolution, | 1709 |
provided that such rate continues in effect as specified in the | 1710 |
original ordinance or resolution. | 1711 |
(C)(1) No municipal corporation shall tax income at other | 1712 |
than a uniform rate. | 1713 |
(2) Except as provided in division (B) of this section, no | 1714 |
municipal corporation shall levy a tax on income at a rate in | 1715 |
excess of one per cent without having obtained the approval of the | 1716 |
excess by a majority of the electors of the municipality voting on | 1717 |
the question at a general, primary, or special election. The | 1718 |
legislative authority of the municipal corporation shall file with | 1719 |
the board of elections at least ninety days before the day of the | 1720 |
election a copy of the ordinance together with a resolution | 1721 |
specifying the date the election is to be held and directing the | 1722 |
board of elections to conduct the election. The ballot shall be in | 1723 |
the following form: "Shall the Ordinance providing for a ... per | 1724 |
cent levy on income for (Brief description of the purpose of the | 1725 |
proposed levy) be passed? | 1726 |
1727 |
FOR THE INCOME TAX | 1728 | ||||
AGAINST THE INCOME TAX | " | 1729 |
1730 |
In the event of an affirmative vote, the proceeds of the levy may | 1731 |
be used only for the specified purpose. | 1732 |
(D) A municipal corporation may, by ordinance or resolution, | 1733 |
grant a credit to residents of the municipal corporation for all | 1734 |
or a portion of the taxes paid to other municipal corporations, in | 1735 |
this state or elsewhere, by the resident or by a pass-through | 1736 |
entity owned, directly or indirectly, by a resident, on the | 1737 |
resident's distributive or proportionate share of the income of | 1738 |
the pass-through entity. A municipal corporation is not required | 1739 |
to refund taxes not paid to the municipal corporation. | 1740 |
(E) Except as otherwise provided in this chapter, a municipal | 1741 |
corporation that levies an income tax in effect for taxable years | 1742 |
beginning before January 1, 2015, may continue to administer and | 1743 |
enforce the provisions of such tax for all taxable years beginning | 1744 |
before January 1, 2015, provided that the provisions of such tax | 1745 |
are consistent with this chapter as it existed prior to the | 1746 |
effective date of the enactment of this section. | 1747 |
(F) Nothing in this chapter authorizes a municipal | 1748 |
corporation to levy a tax on income or net profit, or to | 1749 |
administer or collect such a tax or penalties or interest related | 1750 |
to such a tax, contrary to the limitations specified in this | 1751 |
chapter. | 1752 |
Sec. 718.05. (A) An annual return with respect to the income | 1753 |
tax levied by a municipal corporation shall be completed and filed | 1754 |
by every taxpayer for any taxable year for which the taxpayer is | 1755 |
liable for the tax. If the total credit allowed against the tax as | 1756 |
described in division (D) of section 718.04 of the Revised Code | 1757 |
for the year is equal to or exceeds the tax imposed by the | 1758 |
municipal corporation, no return shall be required unless the | 1759 |
municipal ordinance or resolution levying the tax requires the | 1760 |
filing of a return in such circumstances. | 1761 |
(B) If an individual is deceased, any return or notice | 1762 |
required of that individual shall be completed and filed by that | 1763 |
decedent's executor, administrator, or other person charged with | 1764 |
the property of that decedent. | 1765 |
(C) If an individual is unable to complete and file a return | 1766 |
or notice required by a municipal corporation in accordance with | 1767 |
this chapter, the return or notice required of that individual | 1768 |
shall be completed and filed by the individual's duly authorized | 1769 |
agent, guardian, conservator, fiduciary, or other person charged | 1770 |
with the care of the person or property of that individual. | 1771 |
(D) Returns or notices required of an estate or a trust shall | 1772 |
be completed and filed by the fiduciary of the estate or trust. | 1773 |
(E) No municipal corporation shall deny spouses the ability | 1774 |
to file a joint return. | 1775 |
(F)(1) Each return required to be filed under this section | 1776 |
shall contain the signature of the taxpayer or the taxpayer's duly | 1777 |
authorized agent and of the person who prepared the return for the | 1778 |
taxpayer, and shall include the taxpayer's social security number | 1779 |
or taxpayer identification number. Each return shall be verified | 1780 |
by a declaration under penalty of perjury. | 1781 |
(2) A tax administrator may require any taxpayer who is an | 1782 |
individual to include, with each annual return, amended return, or | 1783 |
application for refund required under this section, complete | 1784 |
copies of any of the following that are applicable to the | 1785 |
taxpayer: all of the taxpayer's Internal Revenue Service form W-2, | 1786 |
"Wage and Tax Statements," including all information reported on | 1787 |
the taxpayer's federal W-2, as well as taxable wages reported or | 1788 |
withheld for any municipal corporation; any Internal Revenue | 1789 |
Service form 1099-MISC received by the taxpayer, schedule K1, form | 1790 |
2106, schedule C, schedule E, and schedule F; and pages one and | 1791 |
two of the taxpayer's Internal Revenue Service form 1040. An | 1792 |
individual taxpayer who files the annual return required by this | 1793 |
section electronically shall provide paper copies of any of the | 1794 |
foregoing to the tax administrator upon the tax administrator's | 1795 |
request. | 1796 |
(3) A tax administrator may require any taxpayer that is not | 1797 |
an individual to include, with each annual net profit return, | 1798 |
amended net profit return, or application for refund required | 1799 |
under this section, complete copies of any of the following that | 1800 |
are applicable to the taxpayer: the taxpayer's Internal Revenue | 1801 |
Service form 1041, form 1065, form 1120, form 1120-REIT, form | 1802 |
1120F, form 1120S, schedule D, schedule E, schedule M-3, form | 1803 |
1125-A, form 4562, form 8825, form 8903, and form 8949; supporting | 1804 |
statements for "other income," "taxes and licenses," "other | 1805 |
deductions," and "other costs" reported on the foregoing forms and | 1806 |
schedules; the method of accounting and allocation used to | 1807 |
determine the income allocable to the municipal corporation; and, | 1808 |
if the taxpayer is a pass-through entity, any Internal Revenue | 1809 |
Service K-1 schedules issued or received by the taxpayer or a | 1810 |
schedule summarizing the information contained on such K-1 | 1811 |
schedules, Internal Revenue Service forms 1096, the taxpayer's | 1812 |
federal consolidated schedules if filing a consolidated return | 1813 |
pursuant to section 718.06 of the Revised Code, and the taxpayer's | 1814 |
net operating loss carry forward schedule providing for each year | 1815 |
in which the net operating loss was sustained, the method of | 1816 |
accounting and allocation used to determine the portion of net | 1817 |
operating loss allocable to the taxing municipal corporation, the | 1818 |
amount of net operating loss used as a deduction in prior years, | 1819 |
and the amount of net operating loss claimed as a deduction in the | 1820 |
current year. | 1821 |
A taxpayer that is not an individual and that files an annual | 1822 |
net profit return electronically through the Ohio business gateway | 1823 |
or in some other manner shall either mail the documents required | 1824 |
under this division to the tax administrator at the time of filing | 1825 |
or, if electronic submission is available, submit the documents | 1826 |
electronically through the Ohio business gateway. The department | 1827 |
of taxation shall publish a method of electronically submitting | 1828 |
the documents required under this division through the Ohio | 1829 |
business gateway on or before January 1, 2015. The department | 1830 |
shall transmit all documents submitted electronically under this | 1831 |
division to the appropriate tax administrator. | 1832 |
(4) A tax administrator may require that each annual | 1833 |
withholding reconciliation return required to be filed under this | 1834 |
chapter include complete copies of any of the following that are | 1835 |
applicable: an information return for each employee from whom | 1836 |
municipal income tax has been withheld that specifies the | 1837 |
municipal corporation for which the tax is withheld and all | 1838 |
information required for federal income tax reporting purposes on | 1839 |
Internal Revenue Service form W-2 or its equivalent. | 1840 |
(5) Pursuant to section 718.24 of the Revised Code, the tax | 1841 |
administrator may request, and the taxpayer shall provide, any | 1842 |
information, statements, or documents required by the municipal | 1843 |
corporation to determine and verify the taxpayer's municipal | 1844 |
income tax liability. The requirements imposed under division (E) | 1845 |
of this section apply regardless of whether the taxpayer files on | 1846 |
a generic form or on a form prescribed by the tax administrator. | 1847 |
(G)(1) Except as otherwise provided in this chapter, each | 1848 |
return required to be filed under this section shall be completed | 1849 |
and filed as required by the tax administrator on or before the | 1850 |
date prescribed for the filing of federal individual income tax | 1851 |
returns and notices under section 6072(a) of the Internal Revenue | 1852 |
Code. The taxpayer shall complete and file the return or notice on | 1853 |
forms prescribed by the tax administrator or on generic forms, | 1854 |
together with remittance made payable to the municipal corporation | 1855 |
or tax administrator. No remittance is required if the amount | 1856 |
shown to be due is ten dollars or less. | 1857 |
(2) Any taxpayer that has requested an extension for filing a | 1858 |
federal income tax return may request an extension for the filing | 1859 |
of a municipal income tax return. The taxpayer shall make the | 1860 |
request by filing a copy of the taxpayer's request for a federal | 1861 |
filing extension through the Ohio business gateway or directly | 1862 |
with the tax administrator. The request for extension shall be | 1863 |
filed not later than the last day for filing the municipal income | 1864 |
tax return. The extended due date of the municipal income tax | 1865 |
return shall be the last day of the month following the month to | 1866 |
which the due date of the federal income tax return has been | 1867 |
extended. A municipal corporation may deny a taxpayer's request | 1868 |
for extension only if the taxpayer fails to timely file the | 1869 |
request, fails to file a copy of the request for the federal | 1870 |
extension, owes the municipal corporation any delinquent income | 1871 |
tax, penalty, or interest, or has failed to file any required | 1872 |
income tax return for a prior tax period. An extension of time to | 1873 |
file under this division is not an extension of the time to pay | 1874 |
any tax due unless the tax administrator grants an extension of | 1875 |
that date. | 1876 |
(3) If a taxpayer does not request and obtain a federal | 1877 |
extension as described in division (G)(2) of this section, the | 1878 |
taxpayer may request an extension of time to file a municipal | 1879 |
income tax return by filing the request through the Ohio business | 1880 |
gateway or directly with the tax administrator of the municipal | 1881 |
corporation with which the return is required to be filed. The | 1882 |
request for extension shall be filed not later than the last day | 1883 |
for filing the municipal income tax return. The extended due date | 1884 |
of the municipal income tax return shall be the last day of the | 1885 |
month following the month to which the tax administrator estimates | 1886 |
the due date of the federal income tax return would have been been | 1887 |
extended had the taxpayer requested and obtained a federal | 1888 |
extension. The tax administrator's estimate shall be based on | 1889 |
federal income tax return extensions granted based on other | 1890 |
similar requests. | 1891 |
(4) Upon good cause shown, the tax administrator may extend | 1892 |
the period for filing any notice or return. | 1893 |
(5) In order to facilitate the filing of extension requests, | 1894 |
the tax commissioner and the Ohio business gateway steering | 1895 |
committee shall take all steps necessary to provide taxpayers with | 1896 |
the ability to file such requests through the Ohio business | 1897 |
gateway and to notify tax administrators when such requests are | 1898 |
filed. | 1899 |
(6) If the tax administrator considers it necessary in order | 1900 |
to ensure the payment of the tax imposed by the municipal | 1901 |
corporation in accordance with this chapter, the tax administrator | 1902 |
may require taxpayers to file returns and make payments otherwise | 1903 |
than as provided in this section, including taxpayers not | 1904 |
otherwise required to file annual returns. | 1905 |
(7) To the extent that any provision in this division | 1906 |
conflicts with any provision in section 718.052 of the Revised | 1907 |
Code, the provision in that section prevails. | 1908 |
(H)(1) For taxable years beginning after 2014, a municipal | 1909 |
corporation shall not require a taxpayer to remit tax with respect | 1910 |
to net profits if the amount due is less than ten dollars. | 1911 |
(2) Any taxpayer not required to remit tax to a municipal | 1912 |
corporation for a taxable year pursuant to division (H)(1) of this | 1913 |
section shall file with the municipal corporation an annual net | 1914 |
profit return under division (F)(3) of this section. | 1915 |
(I) This division shall not apply to payments required to be | 1916 |
made under division (B)(1)(a) or (2)(a) of section 718.03 of the | 1917 |
Revised Code. Except as provided in section 718.08 of the Revised | 1918 |
Code: | 1919 |
(1) If any report, claim, statement, or other document | 1920 |
required to be filed, or any payment required to be made, within a | 1921 |
prescribed period or on or before a prescribed date under this | 1922 |
chapter is delivered after that period or that date by United | 1923 |
States mail to the tax administrator or other municipal official | 1924 |
with which the report, claim, statement, or other document is | 1925 |
required to be filed, or to which the payment is required to be | 1926 |
made, the date of the postmark stamped on the cover in which the | 1927 |
report, claim, statement, or other document, or payment is mailed | 1928 |
shall be deemed to be the date of delivery or the date of payment. | 1929 |
"The date of postmark" means, in the event there is more than one | 1930 |
date on the cover, the earliest date imprinted on the cover by the | 1931 |
postal service. | 1932 |
(2) If a payment is required to be made by electronic funds | 1933 |
transfer, the payment is considered to be made when the payment is | 1934 |
credited to an account designated by the tax administrator for the | 1935 |
receipt of tax payments, except that, when a payment made by | 1936 |
electronic funds transfer is delayed due to circumstances not | 1937 |
under the control of the taxpayer, the payment is considered to be | 1938 |
made when the taxpayer submitted the payment. | 1939 |
(J) The amounts withheld by an employer, the agent of an | 1940 |
employer, or an other payer as described in section 718.03 of the | 1941 |
Revised Code shall be allowed to the recipient of the compensation | 1942 |
as credits against payment of the tax imposed on the recipient by | 1943 |
the municipal corporation, unless the amounts withheld were not | 1944 |
remitted to the municipal corporation and the recipient colluded | 1945 |
with the employer, agent, or other payer in connection with the | 1946 |
failure to remit the amounts withheld. | 1947 |
(K) Each return required by a municipal corporation to be | 1948 |
filed in accordance with this section shall include a box that the | 1949 |
taxpayer may check to authorize another person, including a tax | 1950 |
return preparer who prepared the return, to communicate with the | 1951 |
tax administrator about matters pertaining to the return. The | 1952 |
return or instructions accompanying the return shall indicate that | 1953 |
by checking the box the taxpayer authorizes the tax administrator | 1954 |
to contact the preparer or other person concerning questions that | 1955 |
arise during the examination or other review of the return and | 1956 |
authorizes the preparer or other person only to provide the tax | 1957 |
administrator with information that is missing from the return, to | 1958 |
contact the tax administrator for information about the | 1959 |
examination or other review of the return or the status of the | 1960 |
taxpayer's refund or payments, and to respond to notices about | 1961 |
mathematical errors, offsets, or return preparation that the | 1962 |
taxpayer has received from the tax administrator and has shown to | 1963 |
the preparer or other person. | 1964 |
(L) The tax administrator of a municipal corporation shall | 1965 |
accept for filing a generic form of any income tax return, report, | 1966 |
or document required by the municipal corporation in accordance | 1967 |
with this chapter, provided that the generic form, once completed | 1968 |
and filed, contains all of the information required by ordinance, | 1969 |
resolution, or rules adopted by the municipal corporation or tax | 1970 |
administrator, and provided that the taxpayer or tax return | 1971 |
preparer filing the generic form otherwise complies with the | 1972 |
provisions of this chapter and of the municipal corporation | 1973 |
ordinance or resolution governing the filing of returns, reports, | 1974 |
or documents. | 1975 |
(M) When income tax returns, reports, or other documents | 1976 |
require the signature of a tax return preparer, the tax | 1977 |
administrator shall accept a facsimile of such a signature in lieu | 1978 |
of a manual signature. | 1979 |
Sec. 718.051. (A) | 1980 |
1981 | |
1982 | |
1983 | |
1984 | |
1985 |
| 1986 |
1987 | |
1988 | |
1989 | |
1990 | |
1991 | |
1992 | |
1993 | |
1994 | |
1995 | |
1996 | |
1997 | |
1998 |
| 1999 |
2000 | |
income taxation with respect to the taxpayer's net profit from a | 2001 |
business or profession may file any municipal income tax return | 2002 |
2003 | |
a municipal income tax return, and may make payment of amounts | 2004 |
shown to be due on such returns, by using the Ohio business | 2005 |
gateway. | 2006 |
| 2007 |
2008 |
| 2009 |
report the amount of municipal income tax withheld from qualifying | 2010 |
wages | 2011 |
such amounts, by using the Ohio business gateway. | 2012 |
| 2013 |
filing employer withholding tax returns. | 2014 |
| 2015 |
fee or charge for the operation or maintenance of the Ohio | 2016 |
business gateway. | 2017 |
| 2018 |
corporations, taxpayers, or other persons pursuant to this section | 2019 |
does not affect the legal rights of municipalities or taxpayers as | 2020 |
otherwise permitted by law. This state shall not be a party to the | 2021 |
administration of municipal income taxes or to an appeal of a | 2022 |
municipal income tax matter, except as otherwise specifically | 2023 |
provided by law. | 2024 |
| 2025 |
establishing: | 2026 |
(a) The format of documents to be used by taxpayers to file | 2027 |
returns and make payments through the Ohio business gateway; and | 2028 |
(b) The information taxpayers must submit when filing | 2029 |
municipal income tax returns through the Ohio business gateway. | 2030 |
The commissioner shall not adopt rules under this division | 2031 |
that conflict with the requirements of section 718.05 of the | 2032 |
Revised Code. | 2033 |
(2) The commissioner shall consult with the Ohio business | 2034 |
gateway steering committee before adopting the rules described in | 2035 |
division | 2036 |
| 2037 |
or removing the | 2038 |
administer, audit, and enforce the provisions of its municipal | 2039 |
income tax. | 2040 |
(H) Within sixty days after a request by a tax administrator, | 2041 |
the tax commissioner shall provide to the tax administrator any | 2042 |
municipal income tax data the commissioner has acquired under | 2043 |
Chapter 5745. of the Revised Code. The tax commissioner may not | 2044 |
impose a fee or charge to defray the costs of providing such data, | 2045 |
including costs associated with the inspection, review, | 2046 |
production, photocopying, or transmission of that data. | 2047 |
Sec. 718.052. (A) Each member of the national guard of any | 2048 |
state and each member of a reserve component of the armed forces | 2049 |
of the United States called to active duty pursuant to an | 2050 |
executive order issued by the president of the United States or an | 2051 |
act of the congress of the United States, and each civilian | 2052 |
serving as support personnel in a combat zone or contingency | 2053 |
operation in support of the armed forces, may apply to the tax | 2054 |
administrator of a municipal corporation for both an extension of | 2055 |
time for filing of the return and an extension of time for payment | 2056 |
of taxes required by the municipal corporation in accordance with | 2057 |
this chapter during the period of the member's or civilian's duty | 2058 |
service and for one hundred eighty days thereafter. The | 2059 |
application shall be filed on or before the one hundred eightieth | 2060 |
day after the member's or civilian's duty terminates. An applicant | 2061 |
shall provide such evidence as the tax administrator considers | 2062 |
necessary to demonstrate eligibility for the extension. | 2063 |
(B)(1) If the tax administrator ascertains that an applicant | 2064 |
is qualified for an extension under this section, the tax | 2065 |
administrator shall enter into a contract with the applicant for | 2066 |
the payment of the tax in installments that begin on the one | 2067 |
hundred eighty-first day after the applicant's active duty or | 2068 |
service terminates. Except as provided in division (B)(3) of this | 2069 |
section, the tax administrator may prescribe such contract terms | 2070 |
as the tax administrator considers appropriate. | 2071 |
(2) If the tax administrator ascertains that an applicant is | 2072 |
qualified for an extension under this section, the applicant shall | 2073 |
neither be required to file any return, report, or other tax | 2074 |
document nor be required to pay any tax otherwise due to the | 2075 |
municipal corporation before the one hundred eighty-first day | 2076 |
after the applicant's active duty or service terminates. | 2077 |
(3) Taxes paid pursuant to a contract entered into under | 2078 |
division (B)(1) of this section are not delinquent. The tax | 2079 |
administrator shall not require any payments of penalties or | 2080 |
interest in connection with those taxes for the extension period. | 2081 |
(C)(1) Nothing in this division denies to any person | 2082 |
described in this division the application of divisions (A) and | 2083 |
(B) of this section. | 2084 |
(2)(a) A qualifying taxpayer who is eligible for an extension | 2085 |
under the Internal Revenue Code shall receive both an extension of | 2086 |
time in which to file any return, report, or other tax document | 2087 |
and an extension of time in which to make any payment of taxes | 2088 |
required by a municipal corporation in accordance with this | 2089 |
chapter. The length of any extension granted under division | 2090 |
(C)(2)(a) of this section shall be equal to the length of the | 2091 |
corresponding extension that the taxpayer receives under the | 2092 |
Internal Revenue Code. As used in this section, "qualifying | 2093 |
taxpayer" means a member of the national guard, or a member of the | 2094 |
reserve component of the armed forces of the United States, who is | 2095 |
called to active duty pursuant to either an executive order issued | 2096 |
by the president of the United States or an act of the congress of | 2097 |
the United States. | 2098 |
(b) Taxes whose payment is extended in accordance with | 2099 |
division (C)(2)(a) of this section are not delinquent during the | 2100 |
extension period. Such taxes become delinquent on the first day | 2101 |
after the expiration of the extension period if the taxes are not | 2102 |
paid prior to that date. The tax administrator shall not require | 2103 |
any payment of penalties or interest in connection with those | 2104 |
taxes for the extension period. The tax administrator shall not | 2105 |
include any period of extension granted under division (C)(2)(a) | 2106 |
of this section in calculating the penalty or interest due on any | 2107 |
unpaid tax. | 2108 |
(D) For each taxable year to which division (A), (B), or (C) | 2109 |
of this section applies to a taxpayer, the provisions of divisions | 2110 |
(B)(2) and (3) or (C) of this section, as applicable, apply to the | 2111 |
spouse of that taxpayer if the filing status of the spouse and the | 2112 |
taxpayer is married filing jointly for that year. | 2113 |
Sec. 718.06. (A) As used in this section: | 2114 |
(1) "Affiliated group of corporations" means an affiliated | 2115 |
group as defined in section 1504 of the Internal Revenue Code. | 2116 |
"Affiliated group of corporations" does not include an incumbent | 2117 |
local exchange carrier primarily engaged in the business of | 2118 |
providing local exchange telephone service in this state, or any | 2119 |
member of such a carrier's affiliated group that is an incumbent | 2120 |
local exchange carrier primarily engaged in the business of | 2121 |
providing local exchange telephone service, other than cellular | 2122 |
radio service, outside this state. | 2123 |
(2) "Consolidated federal income tax return" means a | 2124 |
consolidated return filed for federal income tax purposes pursuant | 2125 |
to section 1501 of the Internal Revenue Code. | 2126 |
(3) "Consolidated federal taxable income" means the | 2127 |
consolidated taxable income of an affiliated group of | 2128 |
corporations, as computed for the purposes of filing a | 2129 |
consolidated federal income tax return, before consideration of | 2130 |
net operating losses or special deductions. "Consolidated federal | 2131 |
taxable income" does not include income or loss of an incumbent | 2132 |
local exchange carrier primarily engaged in the business of | 2133 |
providing local exchange telephone service in this state, or | 2134 |
income or loss of any member of such a carrier's affiliated group | 2135 |
that is an incumbent local exchange carrier primarily engaged in | 2136 |
the business of providing local exchange telephone service, other | 2137 |
than cellular radio service, outside this state. | 2138 |
(4) "Incumbent local exchange carrier" has the same meaning | 2139 |
as in section 4927.01 of the Revised Code. | 2140 |
(5) "Local exchange telephone service" has the same meaning | 2141 |
as in section 5727.01 of the Revised Code. | 2142 |
(B)(1) For taxable years beginning on or after January 1, | 2143 |
2015, a taxpayer that is a member of an affiliated group of | 2144 |
corporations may elect to file a consolidated municipal income tax | 2145 |
return for a taxable year if at least one member of the affiliated | 2146 |
group of corporations is subject to the municipal income tax in | 2147 |
that taxable year and if the affiliated group of corporations | 2148 |
filed a consolidated federal income tax return with respect to | 2149 |
that taxable year. The election is binding for a five-year period | 2150 |
beginning with the first taxable year of the initial election | 2151 |
unless a change in the reporting method is required under federal | 2152 |
law. The election continues to be binding for each subsequent | 2153 |
five-year period unless the taxpayer elects to discontinue filing | 2154 |
consolidated municipal income tax returns under division (B)(2) of | 2155 |
this section or a taxpayer receives permission from the tax | 2156 |
administrator. The tax administrator shall approve such a request | 2157 |
for good cause shown. | 2158 |
(2) An election to discontinue filing consolidated municipal | 2159 |
income tax returns under this section must be made in the first | 2160 |
year following the last year of a five-year consolidated municipal | 2161 |
income tax return election period in effect under division (B)(1) | 2162 |
of this section. The election to discontinue filing a consolidated | 2163 |
municipal income tax return is binding for a five-year period | 2164 |
beginning with the first taxable year of the election. | 2165 |
(3) An election made under division (B)(1) or (2) of this | 2166 |
section is binding on all members of the affiliated group of | 2167 |
corporations subject to a municipal income tax. | 2168 |
(C) A taxpayer that is a member of an affiliated group of | 2169 |
corporations that filed a consolidated federal income tax return | 2170 |
for a taxable year shall file a consolidated municipal income tax | 2171 |
return for that taxable year if the tax administrator determines, | 2172 |
by a preponderance of the evidence, that intercompany transactions | 2173 |
have not been conducted at arm's length or that there has been a | 2174 |
distortive shifting of income or expenses with regard to | 2175 |
allocation of net profits to the municipal corporation. A taxpayer | 2176 |
that is required to file a consolidated municipal income tax | 2177 |
return for a taxable year shall file a consolidated municipal | 2178 |
income tax return for all subsequent taxable years unless the | 2179 |
taxpayer receives written permission from the tax administrator to | 2180 |
file a separate return or a taxpayer has experienced a change in | 2181 |
circumstances. | 2182 |
(D) A taxpayer shall prepare a consolidated municipal income | 2183 |
tax return in the same manner as is required under the United | 2184 |
States department of treasury regulations that prescribe | 2185 |
procedures for the preparation of the consolidated federal income | 2186 |
tax return required to be filed by the common parent of the | 2187 |
affiliated group of which the taxpayer is a member. | 2188 |
(E)(1) Except as otherwise provided in divisions (E)(2) and | 2189 |
(3) of this section, corporations that file a consolidated | 2190 |
municipal income tax return shall compute adjusted federal taxable | 2191 |
income, as defined in section 718.01 of the Revised Code, by | 2192 |
substituting "consolidated federal taxable income" for "federal | 2193 |
taxable income" wherever "federal taxable income" appears in that | 2194 |
division and by substituting "an affiliated group of | 2195 |
corporation's" for "a C corporation's" wherever "a C | 2196 |
corporation's" appears in that division. | 2197 |
(2) No corporation filing a consolidated municipal income tax | 2198 |
return shall make any adjustment otherwise required under division | 2199 |
(E) of section 718.01 of the Revised Code to the extent that the | 2200 |
item of income or deduction otherwise subject to the adjustment | 2201 |
has been eliminated or consolidated in the computation of | 2202 |
consolidated federal taxable income. | 2203 |
(3) If the net profit or loss of a pass-through entity is | 2204 |
included in an affiliated group of corporations' consolidated | 2205 |
federal taxable income for a taxable year, the corporation filing | 2206 |
a consolidated municipal income tax return shall do one of the | 2207 |
following with respect to that pass-through entity's net profit or | 2208 |
loss for that taxable year: | 2209 |
(a) Exclude the pass-through entity's net profit or loss from | 2210 |
the consolidated federal taxable income of the affiliated group | 2211 |
and, for the purpose of making the computations required in | 2212 |
section 718.02 of the Revised Code, exclude the property, payroll, | 2213 |
and gross receipts of the pass-through entity in the computation | 2214 |
of the affiliated group's net profit sitused to a municipal | 2215 |
corporation. If the entity's net profit or loss is so excluded, | 2216 |
the entity shall be subject to taxation as a separate taxpayer on | 2217 |
the basis of the entity's net profits that would otherwise be | 2218 |
included in the consolidated federal taxable income of the | 2219 |
affiliated group. | 2220 |
(b) Include the pass-through entity's net profit or loss in | 2221 |
the consolidated federal taxable income of the affiliated group | 2222 |
and, for the purpose of making the computations required in | 2223 |
section 718.02 of the Revised Code, include the property, payroll, | 2224 |
and gross receipts of the pass-through entity in the computation | 2225 |
of the affiliated group's net profit sitused to a municipal | 2226 |
corporation. If the entity's net profit or loss is so included, | 2227 |
the entity shall not be subject to taxation as a separate taxpayer | 2228 |
on the basis of the entity's net profits that are included in the | 2229 |
consolidated federal taxable income of the affiliated group. | 2230 |
(F) Corporations filing a consolidated municipal income tax | 2231 |
return shall make the computations required under section 718.02 | 2232 |
of the Revised Code by substituting "consolidated federal taxable | 2233 |
income attributable to" for "net profit from" wherever "net profit | 2234 |
from" appears in that section and by substituting "affiliated | 2235 |
group of corporations" for "taxpayer" wherever "taxpayer" appears | 2236 |
in that section. | 2237 |
(G) Each corporation filing a consolidated municipal income | 2238 |
tax return is jointly and severally liable for any tax, interest, | 2239 |
penalties, fines, charges, or other amounts imposed by a municipal | 2240 |
corporation in accordance with this chapter on the corporation, an | 2241 |
affiliated group of which the corporation is a member for any | 2242 |
portion of the taxable year, or any one or more members of such an | 2243 |
affiliated group. | 2244 |
(H) Corporations that made an election with a municipal | 2245 |
corporation before January 1, 2015, to file a consolidated tax | 2246 |
return with such municipal corporation in a manner similar to that | 2247 |
provided in division (B) of this section shall continue to file | 2248 |
consolidated tax returns in such manner for any taxable year | 2249 |
beginning before January 1, 2020, unless the corporations obtain | 2250 |
permission from the tax administrator to discontinue such filing. | 2251 |
Sec. 718.07. | 2252 |
administrator of a municipal corporation that imposes a tax on | 2253 |
income in accordance with this chapter shall make electronic | 2254 |
versions of any rules or ordinances governing the tax available to | 2255 |
the public through the internet, including, but not limited to, | 2256 |
ordinances or rules governing the rate of tax; payment and | 2257 |
withholding of taxes; filing any prescribed returns, reports, or | 2258 |
other documents; dates for filing or paying taxes, including | 2259 |
estimated taxes; penalties, interest, | 2260 |
collection remedies; rights of taxpayers to appeal; | 2261 |
for filing appeals; and a summary of taxpayers' rights and | 2262 |
responsibilities. | 2263 |
2264 | |
2265 | |
blanks of | 2266 |
any instructions pertaining thereto, available to the public | 2267 |
electronically through the internet. Electronic versions of rules, | 2268 |
ordinances, blanks, and instructions shall be made available | 2269 |
2270 | |
tax commissioner under section 5703.49 of the Revised Code | 2271 |
if the municipal corporation or tax administrator maintains an | 2272 |
electronic site for the posting of such documents that is | 2273 |
accessible through the internet, by posting them on | 2274 |
electronic site | 2275 |
2276 | |
administrator establishes such an electronic site, the municipal | 2277 |
corporation shall incorporate an electronic link between that site | 2278 |
and the site established pursuant to section 5703.49 of the | 2279 |
Revised Code, and shall provide to the tax commissioner the | 2280 |
uniform resource locator of the site established pursuant to this | 2281 |
division. | 2282 |
Sec. 718.08. (A) As used in this section: | 2283 |
(1) "Estimated taxes" means the amount that the taxpayer | 2284 |
reasonably estimates to be the taxpayer's tax liability for a | 2285 |
municipal corporation's income tax for the current taxable year. | 2286 |
(2) "Tax liability" means the total taxes due to a municipal | 2287 |
corporation for the taxable year, after allowing any credit to | 2288 |
which the taxpayer is entitled, and after applying any estimated | 2289 |
tax payment, withholding payment, or credit from another taxable | 2290 |
year. | 2291 |
(B)(1) Every taxpayer shall make a declaration of estimated | 2292 |
taxes for the current taxable year, on the form prescribed by the | 2293 |
tax administrator, if the amount payable as estimated taxes is | 2294 |
more than one hundred dollars. For the purposes of this section: | 2295 |
(a) Taxes withheld from compensation shall be considered as | 2296 |
paid to the municipal corporation for which the taxes were | 2297 |
withheld in equal amounts on each payment date unless the taxpayer | 2298 |
establishes the dates on which all amounts were actually withheld, | 2299 |
in which case the amounts withheld shall be considered as paid on | 2300 |
the dates on which the amounts were actually withheld. | 2301 |
(b) An overpayment of tax applied as a credit to a subsequent | 2302 |
taxable year is deemed to be paid on the date of the postmark | 2303 |
stamped on the cover in which the payment is mailed or, if the | 2304 |
payment is made by electronic funds transfer, the date the payment | 2305 |
is submitted. As used in this division, "date of the postmark" | 2306 |
means, in the event there is more than one date on the cover, the | 2307 |
earliest date imprinted on the cover by the postal service. | 2308 |
(c) Taxes withheld by a casino operator or by a lottery sales | 2309 |
agent under section 718.031 of the Revised Code are deemed to be | 2310 |
paid to the municipal corporation for which the taxes were | 2311 |
withheld on the date the taxes are withheld from the taxpayer's | 2312 |
winnings. | 2313 |
(2) Taxpayers filing joint returns shall file joint | 2314 |
declarations of estimated taxes. A taxpayer may amend a | 2315 |
declaration under rules prescribed by the tax administrator. A | 2316 |
taxpayer having a taxable year of less than twelve months shall | 2317 |
make a declaration under rules prescribed by the tax | 2318 |
administrator. | 2319 |
(3) The declaration of estimated taxes shall be filed on or | 2320 |
before the date prescribed for the filing of municipal income tax | 2321 |
returns under division (G) of section 718.05 of the Revised Code | 2322 |
or on or before the fifteenth day of the fourth month after the | 2323 |
taxpayer becomes subject to tax for the first time. | 2324 |
(4) Taxpayers reporting on a fiscal year basis shall file a | 2325 |
declaration on or before the fifteenth day of the fourth month | 2326 |
after the beginning of each fiscal year or period. | 2327 |
(5) The original declaration or any subsequent amendment may | 2328 |
be increased or decreased on or before any subsequent quarterly | 2329 |
payment day as provided in this section. | 2330 |
(C)(1) The required portion of the tax liability for the | 2331 |
taxable year that shall be paid through estimated taxes made | 2332 |
payable to the municipal corporation or tax administrator, | 2333 |
including the application of tax refunds to estimated taxes and | 2334 |
withholding on or before the applicable payment date, shall be as | 2335 |
follows: | 2336 |
(a) On or before the fifteenth day of the fourth month after | 2337 |
the beginning of the taxable year, twenty-two and one-half per | 2338 |
cent of the tax liability for the taxable year; | 2339 |
(b) On or before the fifteenth day of the sixth month after | 2340 |
the beginning of the taxable year, forty-five per cent of the tax | 2341 |
liability for the taxable year; | 2342 |
(c) On or before the fifteenth day of the ninth month after | 2343 |
the beginning of the taxable year, sixty-seven and one-half per | 2344 |
cent of the tax liability for the taxable year; | 2345 |
(d) On or before the fifteenth day of the twelfth month of | 2346 |
the taxable year, ninety per cent of the tax liability for the | 2347 |
taxable year. | 2348 |
(2) When an amended declaration has been filed, the unpaid | 2349 |
balance shown due on the amended declaration shall be paid in | 2350 |
equal installments on or before the remaining payment dates. | 2351 |
(3) On or before the fifteenth day of the fourth month of the | 2352 |
year following that for which the declaration or amended | 2353 |
declaration was filed, an annual return shall be filed and any | 2354 |
balance which may be due shall be paid with the return in | 2355 |
accordance with section 718.05 of the Revised Code. | 2356 |
(D)(1) In the case of any underpayment of any portion of a | 2357 |
tax liability, penalty and interest shall be imposed pursuant to | 2358 |
section 718.27 of the Revised Code upon the amount of underpayment | 2359 |
for the period of underpayment, unless the underpayment is due to | 2360 |
reasonable cause as described in division (E) of this section. The | 2361 |
amount of the underpayment shall be determined as follows: | 2362 |
(a) For the first payment of estimated taxes each year, | 2363 |
twenty-two and one-half per cent of the tax liability, less the | 2364 |
amount of taxes paid by the date prescribed for that payment; | 2365 |
(b) For the second payment of estimated taxes each year, | 2366 |
forty-five per cent of the tax liability, less the amount of taxes | 2367 |
paid by the date prescribed for that payment; | 2368 |
(c) For the third payment of estimated taxes each year, | 2369 |
sixty-seven and one-half per cent of the tax liability, less the | 2370 |
amount of taxes paid by the date prescribed for that payment; | 2371 |
(d) For the fourth payment of estimated taxes each year, | 2372 |
ninety per cent of the tax liability, less the amount of taxes | 2373 |
paid by the date prescribed for that payment. | 2374 |
(2) The period of the underpayment shall run from the day the | 2375 |
estimated payment was required to be made to the date on which the | 2376 |
payment is made. For purposes of this section, a payment of | 2377 |
estimated taxes on or before any payment date shall be considered | 2378 |
a payment of any previous underpayment only to the extent the | 2379 |
payment of estimated taxes exceeds the amount of the payment | 2380 |
presently required to be paid to avoid any penalty. | 2381 |
(E)(1) An underpayment of any portion of tax liability | 2382 |
determined under division (D) of this section shall be due to | 2383 |
reasonable cause and the penalty imposed by this section shall not | 2384 |
be added to the taxes for the taxable year if any of the following | 2385 |
apply: | 2386 |
(a) The amount of estimated taxes that were paid equals at | 2387 |
least ninety per cent of the tax liability for the current taxable | 2388 |
year, determined by annualizing the income received during the | 2389 |
year up to the end of the month immediately preceding the month in | 2390 |
which the payment is due. | 2391 |
(b) The amount of estimated taxes that were paid equals at | 2392 |
least one hundred per cent of the tax liability shown on the | 2393 |
return of the taxpayer for the preceding taxable year, provided | 2394 |
that the immediately preceding taxable year reflected a period of | 2395 |
twelve months and the taxpayer filed a return with the municipal | 2396 |
corporation under section 718.05 of the Revised Code for that | 2397 |
year. | 2398 |
(c) The taxpayer is an individual who resides in the | 2399 |
municipal corporation but was not domiciled there on the first day | 2400 |
of the taxable year. | 2401 |
(2) The tax administrator may waive the requirement for | 2402 |
filing a declaration of estimated taxes for any class of taxpayers | 2403 |
after finding that the waiver is reasonable and proper in view of | 2404 |
administrative costs and other factors. | 2405 |
Sec. 718.09. (A) This section applies to either of the | 2406 |
following: | 2407 |
(1) A municipal corporation that shares the same territory as | 2408 |
a city, local, or exempted village school district, to the extent | 2409 |
that not more than five per cent of the territory of the municipal | 2410 |
corporation is located outside the school district and not more | 2411 |
than five per cent of the territory of the school district is | 2412 |
located outside the municipal corporation; | 2413 |
(2) A municipal corporation that shares the same territory as | 2414 |
a city, local, or exempted village school district, to the extent | 2415 |
that not more than five per cent of the territory of the municipal | 2416 |
corporation is located outside the school district, more than five | 2417 |
per cent but not more than ten per cent of the territory of the | 2418 |
school district is located outside the municipal corporation, and | 2419 |
that portion of the territory of the school district that is | 2420 |
located outside the municipal corporation is located entirely | 2421 |
within another municipal corporation having a population of four | 2422 |
hundred thousand or more according to the federal decennial census | 2423 |
most recently completed before the agreement is entered into under | 2424 |
division (B) of this section. | 2425 |
(B) The legislative authority of a municipal corporation to | 2426 |
which this section applies may propose to the electors an income | 2427 |
tax, one of the purposes of which shall be to provide financial | 2428 |
assistance to the school district through payment to the district | 2429 |
of not less than twenty-five per cent of the revenue generated by | 2430 |
the tax, except that the legislative authority may not propose to | 2431 |
levy the income tax on the incomes of nonresident individuals. | 2432 |
Prior to proposing the tax, the legislative authority shall | 2433 |
negotiate and enter into a written agreement with the board of | 2434 |
education of the school district specifying the tax rate, the | 2435 |
percentage of tax revenue to be paid to the school district, the | 2436 |
purpose for which the school district will use the money, the | 2437 |
first year the tax will be levied, which shall be the first year | 2438 |
after the year in which the levy is approved or any later year, | 2439 |
the date of the special election on the question of the tax, and | 2440 |
the method and schedule by which the municipal corporation will | 2441 |
make payments to the school district. The special election shall | 2442 |
be held on a day specified in division (D) of section 3501.01 of | 2443 |
the Revised Code, except that the special election may not be held | 2444 |
on the day for holding a primary election as authorized by the | 2445 |
municipal corporation's charter unless the municipal corporation | 2446 |
is to have a primary election on that day. | 2447 |
After the legislative authority and board of education have | 2448 |
entered into the agreement, the legislative authority shall | 2449 |
provide for levying the tax by ordinance. The ordinance shall | 2450 |
include the provisions described in division (A) of section 718.04 | 2451 |
of the Revised Code and shall state the tax rate, the percentage | 2452 |
of tax revenue to be paid to the school district, the purpose for | 2453 |
which the municipal corporation will use its share of the tax | 2454 |
revenue, the first year the tax will be levied, and that the | 2455 |
question of the income tax will be submitted to the electors of | 2456 |
the municipal corporation. The legislative authority also shall | 2457 |
adopt a resolution specifying the regular or special election date | 2458 |
the election will be held and directing the board of elections to | 2459 |
conduct the election. At least ninety days before the date of the | 2460 |
election, the legislative authority shall file certified copies of | 2461 |
the ordinance and resolution with the board of elections. | 2462 |
(C) The board of elections shall make the necessary | 2463 |
arrangements for the submission of the question to the electors of | 2464 |
the municipal corporation, and shall conduct the election in the | 2465 |
same manner as any other municipal income tax election. Notice of | 2466 |
the election shall be published in a newspaper of general | 2467 |
circulation in the municipal corporation once a week for four | 2468 |
consecutive weeks, or as provided in section 7.16 of the Revised | 2469 |
Code, prior to the election, and shall include statements of the | 2470 |
rate and municipal corporation and school district purposes of the | 2471 |
income tax, the percentage of tax revenue that will be paid to the | 2472 |
school district, and the first year the tax will be levied. The | 2473 |
ballot shall be in the following form: | 2474 |
"Shall the ordinance providing for a ..... per cent levy on | 2475 |
income for (brief description of the municipal corporation and | 2476 |
school district purposes of the levy, including a statement of the | 2477 |
percentage of tax revenue that will be paid to the school | 2478 |
district) be passed? The income tax, if approved, will not be | 2479 |
levied on the incomes of individuals who do not reside in (the | 2480 |
name of the municipal corporation). | 2481 |
2482 |
For the income tax | 2483 | ||||
Against the income tax | " | 2484 |
2485 |
(D) If the question is approved by a majority of the | 2486 |
electors, the municipal corporation shall impose the income tax | 2487 |
beginning | 2488 |
the ordinance. The proceeds of the levy may be used only for the | 2489 |
specified purposes, including payment of the specified percentage | 2490 |
to the school district. | 2491 |
Sec. 718.10. (A) This section applies to a group of two or | 2492 |
more municipal corporations that, taken together, share the same | 2493 |
territory as a single city, local, or exempted village school | 2494 |
district, to the extent that not more than five per cent of the | 2495 |
territory of the municipal corporations as a group is located | 2496 |
outside the school district and not more than five per cent of the | 2497 |
territory of the school district is located outside the municipal | 2498 |
corporations as a group. | 2499 |
(B) The legislative authorities of the municipal corporations | 2500 |
in a group of municipal corporations to which this section applies | 2501 |
each may propose to the electors an income tax, to be levied in | 2502 |
concert with income taxes in the other municipal corporations of | 2503 |
the group, except that a legislative authority may not propose to | 2504 |
levy the income tax on the incomes of individuals who do not | 2505 |
reside in the municipal corporation. One of the purposes of such a | 2506 |
tax shall be to provide financial assistance to the school | 2507 |
district through payment to the district of not less than | 2508 |
twenty-five per cent of the revenue generated by the tax. Prior to | 2509 |
proposing the taxes, the legislative authorities shall negotiate | 2510 |
and enter into a written agreement with each other and with the | 2511 |
board of education of the school district specifying the tax rate, | 2512 |
the percentage of the tax revenue to be paid to the school | 2513 |
district, the first year the tax will be levied, which shall be | 2514 |
the first year after the year in which the levy is approved or any | 2515 |
later year, and the date of the election on the question of the | 2516 |
tax, all of which shall be the same for each municipal | 2517 |
corporation. The agreement also shall state the purpose for which | 2518 |
the school district will use the money, and specify the method and | 2519 |
schedule by which each municipal corporation will make payments to | 2520 |
the school district. The special election shall be held on a day | 2521 |
specified in division (D) of section 3501.01 of the Revised Code, | 2522 |
including a day on which all of the municipal corporations are to | 2523 |
have a primary election. | 2524 |
After the legislative authorities and board of education have | 2525 |
entered into the agreement, each legislative authority shall | 2526 |
provide for levying its tax by ordinance. Each ordinance shall | 2527 |
include the provisions described in division (A) of section 718.04 | 2528 |
of the Revised Code and shall state the rate of the tax, the | 2529 |
percentage of tax revenue to be paid to the school district, the | 2530 |
purpose for which the municipal corporation will use its share of | 2531 |
the tax revenue, and the first year the tax will be levied. Each | 2532 |
ordinance also shall state that the question of the income tax | 2533 |
will be submitted to the electors of the municipal corporation on | 2534 |
the same date as the submission of questions of an identical tax | 2535 |
to the electors of each of the other municipal corporations in the | 2536 |
group, and that unless the electors of all of the municipal | 2537 |
corporations in the group approve the tax in their respective | 2538 |
municipal corporations, none of the municipal corporations in the | 2539 |
group shall levy the tax. Each legislative authority also shall | 2540 |
adopt a resolution specifying the regular or special election date | 2541 |
the election will be held and directing the board of elections to | 2542 |
conduct the election. At least ninety days before the date of the | 2543 |
election, each legislative authority shall file certified copies | 2544 |
of the ordinance and resolution with the board of elections. | 2545 |
(C) For each of the municipal corporations, the board of | 2546 |
elections shall make the necessary arrangements for the submission | 2547 |
of the question to the electors, and shall conduct the election in | 2548 |
the same manner as any other municipal income tax election. For | 2549 |
each of the municipal corporations, notice of the election shall | 2550 |
be published in a newspaper of general circulation in the | 2551 |
municipal corporation once a week for four consecutive weeks, or | 2552 |
as provided in section 7.16 of the Revised Code, prior to the | 2553 |
election. The notice shall include a statement of the rate and | 2554 |
municipal corporation and school district purposes of the income | 2555 |
tax, the percentage of tax revenue that will be paid to the school | 2556 |
district, and the first year the tax will be levied, and an | 2557 |
explanation that the tax will not be levied unless an identical | 2558 |
tax is approved by the electors of each of the other municipal | 2559 |
corporations in the group. The ballot shall be in the following | 2560 |
form: | 2561 |
"Shall the ordinance providing for a ... per cent levy on | 2562 |
income for (brief description of the municipal corporation and | 2563 |
school district purposes of the levy, including a statement of the | 2564 |
percentage of income tax revenue that will be paid to the school | 2565 |
district) be passed? The income tax, if approved, will not be | 2566 |
levied on the incomes of individuals who do not reside in (the | 2567 |
name of the municipal corporation). In order for the income tax to | 2568 |
be levied, the voters of (the other municipal corporations in the | 2569 |
group), which are also in the (name of the school district) school | 2570 |
district, must approve an identical income tax and agree to pay | 2571 |
the same percentage of the tax revenue to the school district. | 2572 |
2573 |
For the income tax | 2574 | ||||
Against the income tax | " | 2575 |
2576 |
(D) If the question is approved by a majority of the electors | 2577 |
and identical taxes are approved by a majority of the electors in | 2578 |
each of the other municipal corporations in the group, the | 2579 |
municipal corporation shall impose the tax beginning | 2580 |
first day of January of the year specified in the ordinance. The | 2581 |
proceeds of the levy may be used only for the specified purposes, | 2582 |
including payment of the specified percentage to the school | 2583 |
district. | 2584 |
Sec. 718.11. (A)(1) The legislative authority of each | 2585 |
municipal corporation that imposes a tax on income in accordance | 2586 |
with this chapter shall maintain a local board of tax review to | 2587 |
hear appeals as provided in this section. The legislative | 2588 |
authority of any municipal corporation that does not impose a tax | 2589 |
on income on | 2590 |
but that imposes such a tax after that date, shall establish such | 2591 |
a board by ordinance not later than one hundred eighty days after | 2592 |
the tax takes effect. | 2593 |
(2) The local board of tax review shall consist of three | 2594 |
members. Two members shall be appointed by the legislative | 2595 |
authority of the municipal corporation, but such appointees may | 2596 |
not be employees, elected officials, or contractors with the | 2597 |
municipal corporation at any time during their term or in the five | 2598 |
years immediately preceding the date of appointment. One member | 2599 |
shall be appointed by the top administrative official of the | 2600 |
municipal corporation. This member may be an employee of the | 2601 |
municipal corporation, but may not be the director of finance or | 2602 |
equivalent officer, or the tax administrator or other similar | 2603 |
official or an employee directly involved in municipal tax | 2604 |
matters, or any direct subordinate thereof. | 2605 |
(3) The term for members of the local board of tax review | 2606 |
appointed by the legislative authority of the municipal | 2607 |
corporation shall be two years. There is no limit on the number of | 2608 |
terms that a member may serve if the member is reappointed by the | 2609 |
legislative authority. The board member appointed by the top | 2610 |
administrative official of the municipal corporation shall serve | 2611 |
at the discretion of the administrative official. | 2612 |
(4) Members of the board of tax review appointed by the | 2613 |
legislative authority may be removed by the legislative authority | 2614 |
by majority vote for malfeasance, misfeasance, or nonfeasance in | 2615 |
office. To remove such a member, the legislative authority must | 2616 |
give the member a copy of the charges against the member and | 2617 |
afford the member an opportunity to be publicly heard in person or | 2618 |
by counsel in the member's own defense upon not less than ten | 2619 |
days' notice. The decision by the legislative authority on the | 2620 |
charges is final and not appealable. | 2621 |
(5) A member of the board who, for any reason, ceases to meet | 2622 |
the qualifications for the position prescribed by this section | 2623 |
shall resign immediately by operation of law. | 2624 |
(6) A vacancy in an unexpired term shall be filled in the | 2625 |
same manner as the original appointment within sixty days of when | 2626 |
the vacancy was created. Any member appointed to fill a vacancy | 2627 |
occurring prior to the expiration of the term for which the | 2628 |
member's predecessor was appointed shall hold office for the | 2629 |
remainder of such term. No vacancy on the board shall impair the | 2630 |
power and authority of the remaining members to exercise all the | 2631 |
powers of the board. | 2632 |
(B) Whenever a written determination by the tax administrator | 2633 |
2634 | |
2635 | |
2636 | |
the tax administrator shall notify the taxpayer in writing at the | 2637 |
same time of the taxpayer's right to appeal the | 2638 |
written determination, the manner in which the taxpayer may appeal | 2639 |
the | 2640 |
directed. | 2641 |
(C) Any person who | 2642 |
2643 | |
2644 | |
2645 | |
written determination by the tax administrator may appeal the | 2646 |
2647 | |
filing a request with the board. The request shall be in writing, | 2648 |
shall | 2649 |
should be deemed incorrect or unlawful, and shall be filed within | 2650 |
2651 | |
receives the | 2652 |
(D) The local board of tax review shall schedule a hearing to | 2653 |
be held within | 2654 |
an appeal of a written determination by the tax administrator | 2655 |
under division (C) of this section, unless the taxpayer requests | 2656 |
additional time to prepare or waives a hearing. If the taxpayer | 2657 |
does not waive the hearing, the taxpayer may appear before the | 2658 |
board and may be represented by an attorney at law, certified | 2659 |
public accountant, or other representative. The board may allow a | 2660 |
hearing to be continued as jointly agreed to by the parties, but | 2661 |
the hearing must be completed within one hundred twenty days after | 2662 |
the first day of the hearing. | 2663 |
(E) The board may affirm, reverse, or modify | 2664 |
2665 | |
administrator or any part of that | 2666 |
shall issue a final decision on the appeal within ninety days | 2667 |
after the board's final hearing on the appeal, and send a copy of | 2668 |
its final decision by ordinary mail to all of the parties to the | 2669 |
appeal within fifteen days after issuing the decision. The | 2670 |
taxpayer or the tax administrator may appeal the board's decision | 2671 |
as provided in section 5717.011 of the Revised Code. | 2672 |
| 2673 |
pursuant to this section shall adopt rules governing its | 2674 |
procedures and shall keep a record of its transactions. Such | 2675 |
records are not public records available for inspection under | 2676 |
section 149.43 of the Revised Code. Hearings requested by a | 2677 |
taxpayer before a local board of | 2678 |
pursuant to this section are not meetings of a public body subject | 2679 |
to section 121.22 of the Revised Code. | 2680 |
Sec. 718.12. (A)(1)(a) Civil actions to recover municipal | 2681 |
income taxes and penalties and interest on municipal income taxes | 2682 |
shall be brought within the later of: | 2683 |
(i) Three years after the tax was due or the return was | 2684 |
filed, whichever is later; or | 2685 |
(ii) One year after the conclusion of the qualifying deferral | 2686 |
period, if any. | 2687 |
(b) The time limit described in division (A)(1)(a) of this | 2688 |
section may be extended at any time if both the tax administrator | 2689 |
and the employer, agent of the employer, other payer, or taxpayer | 2690 |
consent in writing to the extension. Any extension shall also | 2691 |
extend for the same period of time the time limit described in | 2692 |
division (C) of this section. | 2693 |
(2) As used in this section, "qualifying deferral period" | 2694 |
means a period of time beginning and ending as follows: | 2695 |
(a) Beginning on the date a person who is aggrieved by a | 2696 |
written determination by the tax administrator files with a local | 2697 |
board of tax review the request described in section 718.11 of the | 2698 |
Revised Code. That date shall not be affected by any subsequent | 2699 |
decision, finding, or holding by any administrative body or court | 2700 |
that the local board of tax review with which the aggrieved person | 2701 |
filed the request did not have jurisdiction to affirm, reverse, or | 2702 |
modify the written determination by the tax administrator or any | 2703 |
part of that determination. | 2704 |
(b) Ending the later of the sixtieth day after the date on | 2705 |
which the decision of the local board of tax review becomes final | 2706 |
or, if any party appeals from the decision of the local board of | 2707 |
tax review, the sixtieth day after the date on which the decision | 2708 |
of the local board of tax review is either ultimately affirmed in | 2709 |
whole or in part or ultimately reversed and no further appeal of | 2710 |
either that affirmation, in whole or in part, or that reversal is | 2711 |
available or taken. | 2712 |
(B) Prosecutions for an offense made punishable under a | 2713 |
resolution or ordinance imposing an income tax shall be commenced | 2714 |
within three years after the commission of the offense, provided | 2715 |
that in the case of fraud, failure to file a return, or the | 2716 |
omission of twenty-five per cent or more of income required to be | 2717 |
reported, prosecutions may be commenced within six years after the | 2718 |
commission of the offense. | 2719 |
(C) A claim for a refund of municipal income taxes shall be | 2720 |
brought within the time limitation provided in section 718.19 of | 2721 |
the Revised Code. | 2722 |
(D) Interest shall be allowed and paid on any overpayment by | 2723 |
a taxpayer of any municipal income tax obligation from the date of | 2724 |
the overpayment until the date of the refund of the overpayment, | 2725 |
except that if any overpayment is refunded within ninety days | 2726 |
after the final filing date of the annual return or ninety days | 2727 |
after the completed return is filed, whichever is later, no | 2728 |
interest shall be allowed on the refund. For the purpose of | 2729 |
computing the payment of interest on amounts overpaid, no amount | 2730 |
of tax for any taxable year shall be considered to have been paid | 2731 |
before the date on which the return on which the tax is reported | 2732 |
is due, without regard to any extension of time for filing that | 2733 |
return. Interest shall be paid at the interest rate described in | 2734 |
division (A)(5) of section 718.27 of the Revised Code. | 2735 |
(E) Within sixty days after the final determination of any | 2736 |
federal or state tax liability affecting the taxpayer's municipal | 2737 |
tax liability, that taxpayer shall make and file an amended | 2738 |
municipal return showing income subject to the municipal income | 2739 |
tax based upon such final determination of federal or state tax | 2740 |
liability, and pay any additional municipal income tax shown due | 2741 |
thereon or make a claim for refund of any overpayment, unless the | 2742 |
tax or overpayment is less than ten dollars. | 2743 |
(F)(1) Notwithstanding the fact that an appeal is pending, | 2744 |
the petitioner may pay all or a portion of the written | 2745 |
determination by the tax administrator that is the subject of the | 2746 |
appeal. The acceptance of a payment by the municipal corporation | 2747 |
does not prejudice any claim for refund upon final determination | 2748 |
of the appeal. | 2749 |
(2) If upon final determination of the appeal an error in the | 2750 |
written determination by the tax administrator is corrected by the | 2751 |
tax administrator, upon an appeal so filed or pursuant to a | 2752 |
decision of the local board of tax review created under section | 2753 |
718.11 of the Revised Code, of the Ohio board of tax appeals, or | 2754 |
any court to which the decision of the Ohio board of tax appeals | 2755 |
has been appealed, so that the amount due from the party assessed | 2756 |
under the corrected written determination is less than the amount | 2757 |
paid, there shall be issued to the appellant or to the appellant's | 2758 |
assigns or legal representative a refund in the amount of the | 2759 |
overpayment as provided by section 718.19 of the Revised Code, | 2760 |
with interest on that amount as provided by division (D) of this | 2761 |
section. | 2762 |
(G) No civil action to recover municipal income tax or | 2763 |
related penalties or interest shall be brought during either of | 2764 |
the following time periods: | 2765 |
(1) The period during which a taxpayer has a right to appeal | 2766 |
the imposition of that tax or interest or those penalties; | 2767 |
(2) The period during which an appeal related to the | 2768 |
imposition of that tax or interest or those penalties is pending. | 2769 |
Sec. 718.121. (A) Except as provided in division (B) of this | 2770 |
section, if tax or withholding is paid to a municipal corporation | 2771 |
on income or wages, and if a second municipal corporation imposes | 2772 |
or assesses a tax on that income or wages after the time period | 2773 |
allowed for a refund of the tax or withholding paid to the first | 2774 |
municipal corporation, the second municipal corporation shall | 2775 |
allow a nonrefundable credit, against the tax or withholding the | 2776 |
second municipality claims is due with respect to such income or | 2777 |
wages, equal to the tax or withholding paid to the first municipal | 2778 |
corporation with respect to such income or wages. | 2779 |
(B) If the tax rate in the second municipal corporation is | 2780 |
less than the tax rate in the first municipal corporation, then | 2781 |
the credit described in division (A) of this section shall be | 2782 |
calculated using the tax rate in effect in the second municipal | 2783 |
corporation. | 2784 |
(C) If the tax rate in the second municipal corporation is | 2785 |
greater than the tax rate in the first municipal corporation, the | 2786 |
tax due in excess of the credit afforded is to be paid to the | 2787 |
second municipal corporation, along with any interest accruing | 2788 |
thereto during the period of nonpayment. | 2789 |
(D) Nothing in this section permits any credit carryforward. | 2790 |
Sec. 718.13. (A) Any information gained as a result of | 2791 |
returns, investigations, hearings, or verifications required or | 2792 |
authorized by this chapter or by a charter or ordinance of a | 2793 |
municipal corporation levying an income tax pursuant to this | 2794 |
chapter is confidential, and no person shall access or disclose | 2795 |
such information except in accordance with a proper judicial order | 2796 |
or in connection with the performance of that person's official | 2797 |
duties or the official business of the municipal corporation as | 2798 |
authorized by this chapter or the charter or ordinance authorizing | 2799 |
the levy. The tax administrator of the municipal corporation or a | 2800 |
designee thereof may furnish copies of returns filed or otherwise | 2801 |
received under this chapter and other related tax information to | 2802 |
the internal revenue service | 2803 |
administrators of other municipal corporations. | 2804 |
(B) This section does not prohibit | 2805 |
2806 | |
2807 | |
disclosing statistics in a form that does not disclose information | 2808 |
with respect to particular taxpayers. | 2809 |
Sec. 718.18. (A)(1) Subject to division (B) of this section, | 2810 |
a copy of each written determination by the tax administrator | 2811 |
shall be served upon the person affected thereby either by | 2812 |
personal service, by certified mail, or by a delivery service | 2813 |
authorized under section 5703.056 of the Revised Code. | 2814 |
(2) With the permission of the person affected by a written | 2815 |
determination by the tax administrator, the tax administrator may | 2816 |
deliver the determination through alternative means as provided in | 2817 |
this section, including, but not limited to, delivery by secure | 2818 |
electronic mail. Delivery by such means satisfies the requirements | 2819 |
for delivery under this section. | 2820 |
(B)(1)(a) If certified mail is returned because of an | 2821 |
undeliverable address, a tax administrator shall utilize | 2822 |
reasonable means to ascertain a new last known address, including | 2823 |
the use of a change of address service offered by the postal | 2824 |
service or an authorized delivery service under section 5703.056 | 2825 |
of the Revised Code. If, after using reasonable means, the tax | 2826 |
administrator is unable to ascertain a new last known address, the | 2827 |
written determination by the tax administrator shall be sent by | 2828 |
ordinary mail and considered served. If the ordinary mail is | 2829 |
subsequently returned because of an undeliverable address, the | 2830 |
determination remains appealable within sixty days after the | 2831 |
determination's postmark. | 2832 |
(b) Notwithstanding delivery for collection under division | 2833 |
(B)(1)(a) of this section, once the tax administrator or other | 2834 |
municipal official, or the designee of either, serves a written | 2835 |
determination by the tax administrator on the person to whom the | 2836 |
determination is directed, the person may protest the ruling of | 2837 |
that determination by filing an appeal with the local board of tax | 2838 |
review within sixty days after the receipt of service. The | 2839 |
delivery of a written determination of the tax administrator under | 2840 |
division (B)(1)(a) of this section is prima facie evidence that | 2841 |
delivery is complete and that the determination is served. | 2842 |
(2) If mailing of a written determination by a tax | 2843 |
administrator by certified mail is returned for some cause other | 2844 |
than an undeliverable address, the tax administrator shall resend | 2845 |
the written determination by ordinary mail. The written | 2846 |
determination shall show the date the tax administrator sends the | 2847 |
written determination and include the following statement: | 2848 |
"This written determination by the tax administrator is | 2849 |
deemed to be served on the addressee under applicable law ten days | 2850 |
from the date this written determination was mailed by the tax | 2851 |
administrator as shown on the written determination, and all | 2852 |
periods within which an appeal may be filed apply from and after | 2853 |
that date." | 2854 |
Unless the mailing is returned because of an undeliverable | 2855 |
address, the mailing of that information is prima facie evidence | 2856 |
that delivery of the written determination was completed ten days | 2857 |
after the tax administrator sent the written determination by | 2858 |
ordinary mail and that the written determination was served. | 2859 |
If the ordinary mail is subsequently returned because of an | 2860 |
undeliverable address, the tax administrator shall proceed under | 2861 |
division (B)(1)(a) of this section. A person may challenge the | 2862 |
presumption of delivery and service under this division in | 2863 |
accordance with division (C) of this section. | 2864 |
(C)(1) A person disputing the presumption of delivery and | 2865 |
service under division (B) of this section bears the burden of | 2866 |
proving by a preponderance of the evidence that the address to | 2867 |
which the written determination by the tax administrator was sent | 2868 |
was not an address with which the person was associated at the | 2869 |
time the tax administrator originally mailed the written | 2870 |
determination by certified mail. For the purposes of this section, | 2871 |
a person is associated with an address at the time the tax | 2872 |
administrator originally mailed the written determination if, at | 2873 |
that time, the person was residing, receiving legal documents, or | 2874 |
conducting business at the address; or if, before that time, the | 2875 |
person had conducted business at the address and, when the written | 2876 |
determination was mailed, the person's agent or the person's | 2877 |
affiliate was conducting business at the address. For the purposes | 2878 |
of this section, a person's affiliate is any other person that, at | 2879 |
the time the written determination was mailed, owned or controlled | 2880 |
at least twenty per cent, as determined by voting rights, of the | 2881 |
addressee's business. | 2882 |
(2) If the person elects to appeal a written determination by | 2883 |
the tax administrator that has otherwise become final and is | 2884 |
subject to collection, the person must do so within sixty days | 2885 |
after the initial contact by the official, or the official's | 2886 |
designee, with the person. The official may enter into a | 2887 |
compromise with the person if the person does not file an appeal | 2888 |
with the local board of tax review. | 2889 |
(D) Nothing in this section prohibits the tax administrator | 2890 |
or the tax administrator's designee from delivering a written | 2891 |
determination by a tax administrator by personal service. | 2892 |
(E) Collection actions taken upon any written determination | 2893 |
by the tax administrator being appealed under division (B)(1)(b) | 2894 |
of this section shall be stayed upon the pendency of an appeal | 2895 |
under this section. If an appeal is filed pursuant to this section | 2896 |
on a claim that has been delivered for collection, the collection | 2897 |
activities with respect to the written determination shall be | 2898 |
stayed. | 2899 |
(F) As used in this section: | 2900 |
(1) "Last known address" means the address the tax | 2901 |
administrator has at the time a document is originally sent by | 2902 |
certified mail, or any address the tax administrator can ascertain | 2903 |
using reasonable means such as the use of a change of address | 2904 |
service offered by the postal service or an authorized delivery | 2905 |
service under section 5703.056 of the Revised Code. | 2906 |
(2) "Undeliverable address" means an address to which the | 2907 |
postal service or an authorized delivery service under section | 2908 |
5703.056 of the Revised Code is not able to deliver a written | 2909 |
determination of the tax administrator, except when the reason for | 2910 |
nondelivery is because the addressee fails to acknowledge or | 2911 |
accept the determination. | 2912 |
Sec. 718.19. (A) Upon receipt of a refund application, the | 2913 |
tax administrator of a municipal corporation, in accordance with | 2914 |
this section, shall refund to employers, agents of employers, | 2915 |
other payers, or taxpayers, with respect to any income or | 2916 |
withholding tax levied by the municipal corporation: | 2917 |
(1) Overpayments of more than ten dollars; | 2918 |
(2) Amounts in excess of ten dollars paid erroneously. | 2919 |
(B) Except as otherwise provided in this chapter, | 2920 |
applications for refund shall be filed with the tax administrator, | 2921 |
on the form prescribed by the tax administrator within three years | 2922 |
after the tax was due or paid, whichever is later. The tax | 2923 |
administrator may require an applicant to file with the | 2924 |
application any documentation that substantiates the applicant's | 2925 |
claim for a refund. | 2926 |
On filing of the refund application, the tax administrator | 2927 |
shall determine the amount of refund due and certify such amount | 2928 |
to the appropriate municipal corporation official for payment. | 2929 |
(C) An application for a refund that is received after the | 2930 |
last day for filing specified in division (B) of this section | 2931 |
shall be considered to have been filed in a timely manner if any | 2932 |
of the following situations exist: | 2933 |
(1) The application is delivered by the postal service, and | 2934 |
the earliest postal service postmark on the cover in which the | 2935 |
application is enclosed is not later than the last day for filing | 2936 |
the application. | 2937 |
(2) The application is delivered by the postal service, the | 2938 |
only postmark on the cover in which the application is enclosed | 2939 |
was affixed by a private postal meter, the date of that postmark | 2940 |
is not later than the last day for filing the application, and the | 2941 |
application is received within seven days of such last day. | 2942 |
(3) The application is delivered by the postal service, no | 2943 |
postmark date was affixed to the cover in which the application is | 2944 |
enclosed or the date of the postmark so affixed is not legible, | 2945 |
and the application is received within seven days of the last day | 2946 |
for making the application. | 2947 |
(D) As used in this section, "withholding tax" has the same | 2948 |
meaning as in section 718.27 of the Revised Code. | 2949 |
Sec. 718.22. (A) A tax administrator may, by rule, prescribe | 2950 |
uniform requirements as to the keeping of records and other | 2951 |
pertinent documents related to the liability of any person for a | 2952 |
tax imposed by a municipal corporation in accordance with this | 2953 |
chapter, and as to the filing of copies of federal income tax | 2954 |
returns and determinations. Such records and other documents shall | 2955 |
be open to the tax administrator's inspection during business | 2956 |
hours and shall be preserved for a period of six years following | 2957 |
the end of the taxable year to which the records or documents | 2958 |
relate, unless the tax administrator, in writing, consents to | 2959 |
their destruction within that period, or by order requires that | 2960 |
they be kept longer. | 2961 |
(B) In addition to any requirements prescribed pursuant to | 2962 |
division (A) of this section, the tax administrator of a municipal | 2963 |
corporation may require any person, by notice served on that | 2964 |
person, to keep such records as the tax administrator determines | 2965 |
necessary to show whether or not that person is liable, and the | 2966 |
extent of such liability, for the income tax levied by the | 2967 |
municipal corporation or for the withholding of such tax. | 2968 |
Sec. 718.23. (A) A tax administrator, or any authorized agent | 2969 |
or employee thereof may examine the books, papers, records, and | 2970 |
federal and state income tax returns of any employer, taxpayer, or | 2971 |
other person that is subject to, or that the tax administrator | 2972 |
believes is subject to, the provisions of this chapter for the | 2973 |
purpose of verifying the accuracy of any return made or, if no | 2974 |
return was filed, to ascertain the tax due under this chapter. | 2975 |
Upon written request by the tax administrator or a duly authorized | 2976 |
agent or employee thereof, every employer, taxpayer, or other | 2977 |
person subject to this section is required to furnish the | 2978 |
opportunity for the tax administrator, authorized agent, or | 2979 |
employee to investigate and examine such books, papers, records, | 2980 |
and federal and state income tax returns at a reasonable time and | 2981 |
place designated in the request. | 2982 |
(B) The tax administrator may examine under oath any person | 2983 |
that the tax administrator reasonably believes has knowledge | 2984 |
concerning any income that was or would have been returned for | 2985 |
taxation or any transaction tending to affect such income. The tax | 2986 |
administrator may, for this purpose, compel any such person to | 2987 |
attend a hearing or examination and to produce any books, papers, | 2988 |
records, and federal income tax returns in such person's | 2989 |
possession or control. The person may be assisted or represented | 2990 |
by an attorney, accountant, bookkeeper, or other tax practitioner | 2991 |
at any such hearing or examination. This division does not | 2992 |
authorize the practice of law by a person who is not an attorney. | 2993 |
No person issued written notice by the tax administrator | 2994 |
compelling such attendance or production of books, papers, | 2995 |
records, or federal income tax returns under this division shall | 2996 |
fail to comply. | 2997 |
Sec. 718.24. Nothing in this chapter shall limit the | 2998 |
authority of a tax administrator to perform any of the following | 2999 |
duties or functions, unless the performance of such duties or | 3000 |
functions is expressly limited by a provision of the Revised Code | 3001 |
or the charter or ordinances of the municipal corporation: | 3002 |
(A) Exercise all powers whatsoever of an inquisitorial nature | 3003 |
as provided by law, including, the right to inspect books, | 3004 |
accounts, records, memorandums, and federal and state income tax | 3005 |
returns, to examine persons under oath, to issue orders or | 3006 |
subpoenas for the production of books, accounts, papers, records, | 3007 |
documents, and testimony, to take depositions, to apply to a court | 3008 |
for attachment proceedings as for contempt, to approve vouchers | 3009 |
for the fees of officers and witnesses, and to administer oaths; | 3010 |
provided that the powers referred to in this division of this | 3011 |
section shall be exercised by the tax administrator only in | 3012 |
connection with the performance of the duties respectively | 3013 |
assigned to the tax administrator under a municipal corporation | 3014 |
income tax ordinance or resolution adopted in accordance with this | 3015 |
chapter; | 3016 |
(B) Appoint agents and prescribe their powers and duties; | 3017 |
(C) Confer and meet with officers of other municipal | 3018 |
corporations and states and officers of the United States on any | 3019 |
matters pertaining to their respective official duties as provided | 3020 |
by law; | 3021 |
(D) Exercise the authority provided by law, including orders | 3022 |
from bankruptcy courts, relative to remitting or refunding taxes, | 3023 |
including penalties and interest thereon, illegally or erroneously | 3024 |
imposed or collected, or for any other reason overpaid, and, in | 3025 |
addition, the tax administrator may investigate any claim of | 3026 |
overpayment and make a written statement of the tax | 3027 |
administrator's findings, and, if the tax administrator finds that | 3028 |
there has been an overpayment, approve and issue a refund payable | 3029 |
to the taxpayer, the taxpayer's assigns, or legal representative | 3030 |
as provided in this chapter; | 3031 |
(E) Exercise the authority provided by law relative to | 3032 |
consenting to the compromise and settlement of tax claims; | 3033 |
(F) Exercise the authority provided by law relative to the | 3034 |
use of alternative apportionment methods by taxpayers in | 3035 |
accordance with section 718.02 of the Revised Code; | 3036 |
(G) Make all tax findings, determinations, computations, and | 3037 |
orders the tax administrator is by law authorized and required to | 3038 |
make and, pursuant to time limitations provided by law, on the tax | 3039 |
administrator's own motion, review, redetermine, or correct any | 3040 |
tax findings, determinations, computations, or orders the tax | 3041 |
administrator has made, but the tax administrator shall not | 3042 |
review, redetermine, or correct any tax finding, determination, | 3043 |
computation, or order which the tax administrator has made as to | 3044 |
which an appeal has been filed with the local board of tax review | 3045 |
or other appropriate tribunal, unless such appeal or application | 3046 |
is withdrawn by the appellant or applicant, is dismissed, or is | 3047 |
otherwise final; | 3048 |
(H) Destroy any or all returns or other tax documents in the | 3049 |
manner authorized by law; | 3050 |
(I) Enter into an agreement with a taxpayer to simplify the | 3051 |
withholding obligations described in section 718.03 of the Revised | 3052 |
Code. | 3053 |
Sec. 718.25. A person may round to the nearest whole dollar | 3054 |
all amounts the person is required to enter on any return, report, | 3055 |
voucher, or other document required under this chapter. Any | 3056 |
fractional part of a dollar that equals or exceeds fifty cents | 3057 |
shall be rounded to the next whole dollar, and any fractional part | 3058 |
of a dollar that is less than fifty cents shall be dropped. If a | 3059 |
person chooses to round amounts entered on a document, the person | 3060 |
shall round all amounts entered on the document. | 3061 |
Sec. 718.26. (A) Nothing in this chapter prohibits a tax | 3062 |
administrator from requiring any person filing a tax document with | 3063 |
the tax administrator to provide identifying information, which | 3064 |
may include the person's social security number, federal employer | 3065 |
identification number, or other identification number requested by | 3066 |
the tax administrator. A person required by the tax administrator | 3067 |
to provide identifying information that has experienced any change | 3068 |
with respect to that information shall notify the tax | 3069 |
administrator of the change before, or upon, filing the next tax | 3070 |
document requiring the identifying information. | 3071 |
(B) When transmitting or otherwise making use of a tax | 3072 |
document that contains a person's social security number, the tax | 3073 |
administrator shall take all reasonable measures necessary to | 3074 |
ensure that the number is not capable of being viewed by the | 3075 |
general public, including, when necessary, masking the number so | 3076 |
that it is not readily discernible by the general public. The tax | 3077 |
administrator shall not put a person's social security number on | 3078 |
the outside of any material mailed to the person. | 3079 |
(C)(1) If the tax administrator makes a request for | 3080 |
identifying information and the tax administrator does not receive | 3081 |
valid identifying information within thirty days of making the | 3082 |
request, nothing in this chapter prohibits the tax administrator | 3083 |
from imposing a penalty upon the person to whom the request was | 3084 |
directed pursuant to section 718.27 of the Revised Code, in | 3085 |
addition to any applicable penalty described in section 718.99 of | 3086 |
the Revised Code. | 3087 |
(2) If a person required by the tax administrator to provide | 3088 |
identifying information does not notify the tax administrator of a | 3089 |
change with respect to that information as required under division | 3090 |
(A) of this section within thirty days after filing the next tax | 3091 |
document requiring such identifying information, nothing in this | 3092 |
chapter prohibits the tax administrator from imposing a penalty | 3093 |
pursuant to section 718.27 of the Revised Code. | 3094 |
(3) The penalties provided for under divisions (C)(1) and (2) | 3095 |
of this section may be billed and imposed in the same manner as | 3096 |
the tax or fee with respect to which the identifying information | 3097 |
is sought and are in addition to any applicable criminal penalties | 3098 |
described in section 718.99 of the Revised Code for a violation of | 3099 |
section 718.35 of the Revised Code and any other penalties that | 3100 |
may be imposed by the tax administrator by law. | 3101 |
Sec. 718.27. (A) As used in this section: | 3102 |
(1) "Applicable law" means this chapter, the resolutions, | 3103 |
ordinances, codes, directives, instructions, and rules adopted by | 3104 |
a municipal corporation provided such resolutions, ordinances, | 3105 |
codes, directives, instructions, and rules impose or directly or | 3106 |
indirectly address the levy, payment, remittance, or filing | 3107 |
requirements of a municipal income tax. | 3108 |
(2) "Income tax," "estimated income tax," and "withholding | 3109 |
tax" means any income tax, estimated income tax, and withholding | 3110 |
tax imposed by a municipal corporation pursuant to applicable law, | 3111 |
including at any time before January 1, 2015. | 3112 |
(3) A "return" includes any tax return, report, | 3113 |
reconciliation, schedule, and other document required to be filed | 3114 |
with a tax administrator or municipal corporation by a taxpayer, | 3115 |
employer, any agent of the employer, or any other payer pursuant | 3116 |
to applicable law, including at any time before January 1, 2015. | 3117 |
(4) "Federal short-term rate" means the rate of the average | 3118 |
market yield on outstanding marketable obligations of the United | 3119 |
States with remaining periods to maturity of three years or less, | 3120 |
as determined under section 1274 of the Internal Revenue Code, for | 3121 |
July of the current year. | 3122 |
(5) "Interest rate as described in division (A) of this | 3123 |
section" means the federal short-term rate, rounded to the nearest | 3124 |
whole number per cent, plus five per cent. The rate shall apply | 3125 |
for the calendar year next following the July of the year in which | 3126 |
the federal short-term rate is determined in accordance with | 3127 |
division (A)(4) of this section. | 3128 |
(6) "Unpaid estimated income tax" means estimated income tax | 3129 |
due but not paid by the date the tax is required to be paid under | 3130 |
applicable law. | 3131 |
(7) "Unpaid income tax" means income tax due but not paid by | 3132 |
the date the income tax is required to be paid under applicable | 3133 |
law. | 3134 |
(8) "Unpaid withholding tax" means withholding tax due but | 3135 |
not paid by the date the withholding tax is required to be paid | 3136 |
under applicable law. | 3137 |
(9) "Withholding tax" includes amounts an employer, any agent | 3138 |
of an employer, or any other payer did not withhold in whole or in | 3139 |
part from an employee's qualifying wages, but that, under | 3140 |
applicable law, the employer, agent, or other payer is required to | 3141 |
withhold from an employee's qualifying wages. | 3142 |
(B)(1) This section applies to the following: | 3143 |
(a) Any return required to be filed under applicable law for | 3144 |
taxable years beginning on or after January 1, 2015; | 3145 |
(b) Income tax, estimated income tax, and withholding tax | 3146 |
required to be paid or remitted to the municipal corporation on or | 3147 |
after January 1, 2015. | 3148 |
(2) This section does not apply to returns required to be | 3149 |
filed or payments required to be made before January 1, 2015, | 3150 |
regardless of the filing or payment date. Returns required to be | 3151 |
filed or payments required to be made before January 1, 2015, but | 3152 |
filed or paid after that date shall be subject to the ordinances | 3153 |
or rules, as adopted before January 1, 2015, of the municipal | 3154 |
corporation to which the return is to be filed or the payment is | 3155 |
to be made. | 3156 |
(C) Each municipal corporation levying a tax on income shall | 3157 |
impose on a taxpayer, employer, any agent of the employer, and any | 3158 |
other payer, and must attempt to collect, the interest amounts and | 3159 |
penalties prescribed under division (C) of this section when the | 3160 |
taxpayer, employer, any agent of the employer, or any other payer | 3161 |
for any reason fails, in whole or in part, to make to the | 3162 |
municipal corporation timely and full payment or remittance of | 3163 |
income tax, estimated income tax, or withholding tax or to file | 3164 |
timely with the municipal corporation any return required to be | 3165 |
filed. | 3166 |
(1) Interest shall be imposed at the rate described in | 3167 |
division (A) of this section, per annum, on all unpaid income tax, | 3168 |
unpaid estimated income tax, and unpaid withholding tax. | 3169 |
(2)(a) With respect to unpaid income tax and unpaid estimated | 3170 |
income tax, a municipal corporation shall impose a penalty equal | 3171 |
to fifteen per cent of the amount not timely paid. | 3172 |
(b) With respect to any unpaid withholding tax, a municipal | 3173 |
corporation shall impose a penalty equal to fifty per cent of the | 3174 |
amount not timely paid. | 3175 |
(3)(a) With respect to annual income tax returns for | 3176 |
individuals, a municipal corporation shall impose a penalty of | 3177 |
twenty-five dollars for each failure to timely file each return, | 3178 |
regardless of the liability shown thereon. | 3179 |
(b) With respect to returns other than annual income tax | 3180 |
returns for individuals and estimated income tax returns, a | 3181 |
municipal corporation shall impose a penalty of twenty-five | 3182 |
dollars for each failure to timely file each return, regardless of | 3183 |
the liability shown thereon for each month, or any fraction | 3184 |
thereof, during which the return remains unfiled regardless of the | 3185 |
liability shown thereon. The penalty shall not exceed one hundred | 3186 |
fifty dollars for each failure. | 3187 |
(D)(1) With respect to the income taxes, estimated income | 3188 |
taxes, withholding taxes, and returns, no municipal corporation | 3189 |
shall impose, seek to collect, or collect any penalty, amount of | 3190 |
interest, charges, or additional fees not described in this | 3191 |
section. | 3192 |
(2) With respect to the income taxes, estimated income taxes, | 3193 |
withholding taxes, and returns not described in division (A) of | 3194 |
this section, nothing in this section requires a municipal | 3195 |
corporation to refund or credit any penalty, amount of interest, | 3196 |
charges, or additional fees that the municipal corporation has | 3197 |
properly imposed or collected before January 1, 2015. | 3198 |
(E) Nothing in this section limits the authority of a | 3199 |
municipal corporation to abate or partially abate penalties or | 3200 |
interest imposed under this section when the tax administrator | 3201 |
determines, in the tax administrator's sole discretion, that such | 3202 |
abatement is appropriate. | 3203 |
(F) By the thirty-first day of October of each year the | 3204 |
municipal corporation shall publish the rate described in division | 3205 |
(A) of this section applicable to the next succeeding calendar | 3206 |
year. | 3207 |
(G) The municipal corporation may impose on the taxpayer, | 3208 |
employer, any agent of the employer, or any other payer the | 3209 |
municipal corporation's post-judgment collection costs and fees, | 3210 |
including attorney's fees. | 3211 |
Sec. 718.28. (A) As used in this section, "claim" means a | 3212 |
claim for an amount payable to a municipal corporation that arises | 3213 |
pursuant to the municipal income tax imposed in accordance with | 3214 |
this chapter. | 3215 |
(B) Nothing in this chapter prohibits a tax administrator | 3216 |
from doing either of the following if such action is in the best | 3217 |
interests of the municipal corporation: | 3218 |
(1) Compromise a claim; | 3219 |
(2) Extend for a reasonable period the time for payment of a | 3220 |
claim by agreeing to accept monthly or other periodic payments. | 3221 |
(C) The tax administrator may consider the following | 3222 |
standards when ascertaining with respect to a claim whether a | 3223 |
compromise or payment-over-time agreement is in the best interests | 3224 |
of the municipal corporation: | 3225 |
(1) There exists a doubt as to whether the claim can be | 3226 |
collected. | 3227 |
(2) There exists an economic hardship such that a compromise | 3228 |
or agreement would facilitate effective tax administration. | 3229 |
(3) There exists a joint liability among spouses, one of whom | 3230 |
is an innocent spouse, provided that any relief under this | 3231 |
standard shall only affect the claim as to the innocent spouse. A | 3232 |
spouse granted relief under section 6015 of the Internal Revenue | 3233 |
Code with regard to any income item is rebuttably presumed to be | 3234 |
an innocent spouse with regard to that income item to the extent | 3235 |
that income item is included in or otherwise affects the | 3236 |
computation of a municipal income tax or any penalty or interest | 3237 |
on that tax. | 3238 |
(4) Any other reasonable standard that the tax administrator | 3239 |
establishes. | 3240 |
(D) The tax administrator's rejection of a compromise or | 3241 |
payment-over-time agreement proposed by a person with respect to a | 3242 |
claim shall not be appealable. | 3243 |
(E) A compromise or payment-over-time agreement with respect | 3244 |
to a claim shall be binding upon and shall inure to the benefit of | 3245 |
only the parties to the compromise or agreement, and shall not | 3246 |
extinguish or otherwise affect the liability of any other person. | 3247 |
(F) A compromise or payment-over-time agreement with respect | 3248 |
to a claim shall be void if the taxpayer defaults under the | 3249 |
compromise or agreement or if the compromise or agreement was | 3250 |
obtained by fraud or by misrepresentation of a material fact. Any | 3251 |
amount that was due before the compromise or agreement and that is | 3252 |
unpaid shall remain due, and any penalties or interest that would | 3253 |
have accrued in the absence of the compromise or agreement shall | 3254 |
continue to accrue and be due. | 3255 |
Sec. 718.30. Nothing in this chapter prohibits the | 3256 |
legislative authority of a municipal corporation, or a tax | 3257 |
administrator pursuant to authority granted to the administrator | 3258 |
by resolution or ordinance, to adopt rules to administer an income | 3259 |
tax imposed by the municipal corporation in accordance with this | 3260 |
chapter. Such rules shall not conflict with or be inconsistent | 3261 |
with any provision of this chapter. All rules adopted under this | 3262 |
section shall be published and posted on the internet as described | 3263 |
in section 718.07 of the Revised Code. | 3264 |
Sec. 718.31. (A) To carry out the purposes of laws that a | 3265 |
tax administrator is required to administer, the tax administrator | 3266 |
or any person employed by the tax administrator for that purpose, | 3267 |
upon demand, may inspect the books, accounts, records, memoranda, | 3268 |
and federal and state income tax returns of any person subject to | 3269 |
those laws, and may examine under oath any officer, agent, or | 3270 |
employee of that person. Any person other than the tax | 3271 |
administrator who makes a demand pursuant to this section shall | 3272 |
produce the person's authority to make the inspection. | 3273 |
(B) If a person receives at least ten days' written notice of | 3274 |
a demand made under division (A) of this section and refuses to | 3275 |
comply with that demand, the tax administrator may impose a | 3276 |
penalty on the person pursuant to section 718.27 of the Revised | 3277 |
Code. | 3278 |
(C) No person hired or retained by a tax administrator to | 3279 |
examine or inspect a taxpayer's books shall be paid on a | 3280 |
contingency basis. | 3281 |
Sec. 718.35. No person shall knowingly make, present, aid, | 3282 |
or assist in the preparation or presentation of a false or | 3283 |
fraudulent report, return, schedule, statement, claim, or document | 3284 |
authorized or required by municipal corporation ordinance or state | 3285 |
law to be filed with a tax administrator, or knowingly procure, | 3286 |
counsel, or advise the preparation or presentation of such report, | 3287 |
return, schedule, statement, claim, or document, or knowingly | 3288 |
change, alter, or amend, or knowingly procure, counsel or advise | 3289 |
such change, alteration, or amendment of the records upon which | 3290 |
such report, return, schedule, statement, claim, or document is | 3291 |
based with intent to defraud the municipal corporation or a tax | 3292 |
administrator. | 3293 |
Sec. 718.38. (A) An "opinion of the tax administrator" means | 3294 |
an opinion issued under this section with respect to prospective | 3295 |
municipal income tax liability. It does not include ordinary | 3296 |
correspondence of the tax administrator. | 3297 |
(B) A taxpayer may submit a written request for an opinion of | 3298 |
the tax administrator as to whether or how certain income, source | 3299 |
of income, or a certain activity or transaction will be taxed. The | 3300 |
written response of the tax administrator shall be an "opinion of | 3301 |
the tax administrator" and shall bind the tax administrator, in | 3302 |
accordance with divisions (C), (G), and (H) of this section, | 3303 |
provided all of the following conditions are satisfied: | 3304 |
(1) The taxpayer's request fully and accurately describes the | 3305 |
specific facts or circumstances relevant to a determination of the | 3306 |
taxability of the income, source of income, activity, or | 3307 |
transaction, and, if an activity or transaction, all parties | 3308 |
involved in the activity or transaction are clearly identified by | 3309 |
name, location, or other pertinent facts. | 3310 |
(2) The request relates to a tax imposed by the municipal | 3311 |
corporation in accordance with this chapter. | 3312 |
(3) The tax administrator's response is signed by the tax | 3313 |
administrator and designated as an "opinion of the tax | 3314 |
administrator." | 3315 |
(C) An opinion of the tax administrator shall remain in | 3316 |
effect and shall protect the taxpayer for whom the opinion was | 3317 |
prepared and who reasonably relies on it from liability for any | 3318 |
taxes, penalty, or interest otherwise chargeable on the activity | 3319 |
or transaction specifically held by the tax administrator's | 3320 |
opinion to be taxable in a particular manner or not to be subject | 3321 |
to taxation for any taxable years that may be specified in the | 3322 |
opinion, or until the earliest of the following dates: | 3323 |
(1) The effective date of a written revocation by the tax | 3324 |
administrator sent to the taxpayer by certified mail, return | 3325 |
receipt requested. The effective date of the revocation shall be | 3326 |
the taxpayer's date of receipt or one year after the issuance of | 3327 |
the opinion, whichever is later; | 3328 |
(2) The effective date of any amendment or enactment of a | 3329 |
relevant section of the Revised Code, uncodified state law, or the | 3330 |
municipal corporation's income tax ordinance that would | 3331 |
substantially change the analysis and conclusion of the opinion of | 3332 |
the tax administrator; | 3333 |
(3) The date on which a court issues an opinion establishing | 3334 |
or changing relevant case law with respect to the Revised Code, | 3335 |
uncodified state law, or the municipal corporation's income tax | 3336 |
ordinance; | 3337 |
(4) If the opinion of the tax administrator was based on the | 3338 |
interpretation of federal law, the effective date of any change in | 3339 |
the relevant federal statutes or regulations, or the date on which | 3340 |
a court issues an opinion establishing or changing relevant case | 3341 |
law with respect to federal statutes or regulations; | 3342 |
(5) The effective date of any change in the taxpayer's | 3343 |
material facts or circumstances; | 3344 |
(6) The effective date of the expiration of the opinion, if | 3345 |
specified in the opinion. | 3346 |
(D) A taxpayer is not relieved of tax liability for any | 3347 |
activity or transaction related to a request for an opinion that | 3348 |
contained any misrepresentation or omission of one or more | 3349 |
material facts. | 3350 |
(E) If a tax administrator provides written advice under this | 3351 |
section, the opinion shall include a statement that: | 3352 |
(1) The tax consequences stated in the opinion may be subject | 3353 |
to change for any of the reasons stated in division (C) of this | 3354 |
section; | 3355 |
(2) It is the duty of the taxpayer to be aware of such | 3356 |
changes. | 3357 |
(F) A tax administrator may refuse to offer an opinion on any | 3358 |
request received under this section. | 3359 |
(G) This section binds a tax administrator only with respect | 3360 |
to opinions of the tax administrator issued on or after January 1, | 3361 |
2015. | 3362 |
(H) An opinion of a tax administrator binds that tax | 3363 |
administrator only with respect to the taxpayer for whom the | 3364 |
opinion was prepared and does not bind the tax administrator of | 3365 |
any other municipal corporation. | 3366 |
(I) A tax administrator shall make available the text of all | 3367 |
opinions issued under this section, except those opinions prepared | 3368 |
for a taxpayer who has requested that the text of the opinion | 3369 |
remain confidential. In no event shall the text of an opinion be | 3370 |
made available until the tax administrator has removed all | 3371 |
information that identifies the taxpayer and any other parties | 3372 |
involved in the activity or transaction. | 3373 |
(J) An opinion of the tax administrator issued under this | 3374 |
section may not be appealed. | 3375 |
Sec. 718.41. (A) A taxpayer shall file an amended return | 3376 |
with the tax administrator in such form as the tax administrator | 3377 |
requires if any of the facts, figures, computations, or | 3378 |
attachments required in the taxpayer's annual return to determine | 3379 |
the tax due levied by the municipal corporation in accordance with | 3380 |
this chapter must be altered as the result of an adjustment to the | 3381 |
taxpayer's federal income tax return, whether initiated by the | 3382 |
taxpayer or the internal revenue service, and such alteration | 3383 |
affects the taxpayer's tax liability under this chapter. If a | 3384 |
taxpayer intends to file an amended consolidated municipal income | 3385 |
tax return, the taxpayer shall notify the tax administrator before | 3386 |
filing the amended return. | 3387 |
(B)(1) In the case of an underpayment, the amended return | 3388 |
shall be accompanied by payment of any combined additional tax due | 3389 |
together with interest thereon. If the combined tax shown to be | 3390 |
due is ten dollars or less, such amount need not accompany the | 3391 |
amended return. Except as provided under division (B)(2) of this | 3392 |
section, the amended return shall not reopen those facts, figures, | 3393 |
computations, or attachments from a previously filed return that | 3394 |
are not affected, either directly or indirectly, by the adjustment | 3395 |
to the taxpayer's federal or state income tax return unless the | 3396 |
applicable statute of limitations for civil actions or | 3397 |
prosecutions under section 718.12 of the Revised Code has not | 3398 |
expired for a previously filed return. | 3399 |
(2) The additional tax to be paid shall not exceed the amount | 3400 |
of tax that would be due if all facts, figures, computations, and | 3401 |
attachments were reopened. | 3402 |
(C)(1) In the case of an overpayment, an application for | 3403 |
refund may be filed under this division within the period | 3404 |
prescribed by section 718.12 of the Revised Code for filing the | 3405 |
amended return even if it is filed beyond the period prescribed in | 3406 |
section 718.19 of the Revised Code if it otherwise conforms to the | 3407 |
requirements of that section. If the amount of the refund is ten | 3408 |
dollars or less, no refund need be paid by the municipal | 3409 |
corporation to the taxpayer. Except as set forth in division | 3410 |
(C)(2) of this section, an application filed under this division | 3411 |
shall claim refund of overpayments resulting from alterations to | 3412 |
only those facts, figures, computations, or attachments required | 3413 |
in the taxpayer's annual return that are affected, either directly | 3414 |
or indirectly, by the adjustment to the taxpayer's federal or | 3415 |
state income tax return unless it is also filed within the time | 3416 |
prescribed in section 718.19 of the Revised Code. Except as set | 3417 |
forth in division (C)(2) of this section, the application shall | 3418 |
not reopen those facts, figures, computations, or attachments that | 3419 |
are not affected, either directly or indirectly, by the adjustment | 3420 |
to the taxpayer's federal or state income tax return. | 3421 |
(2) The amount to be refunded shall not exceed the amount of | 3422 |
refund that would be due if all facts, figures, computations, and | 3423 |
attachments were reopened. | 3424 |
| 3425 |
the municipal corporation of residence shall levy a tax on the | 3426 |
income of any member or employee of the Ohio general assembly | 3427 |
including the lieutenant governor which income is received as a | 3428 |
result of services rendered as such member or employee and is paid | 3429 |
from appropriated funds of this state. | 3430 |
(B) No municipal corporation other than the municipal | 3431 |
corporation of residence and the city of Columbus shall levy a tax | 3432 |
on the income of the chief justice or a justice of the supreme | 3433 |
court received as a result of services rendered as the chief | 3434 |
justice or justice. No municipal corporation other than the | 3435 |
municipal corporation of residence shall levy a tax on the income | 3436 |
of a judge sitting by assignment of the chief justice or on the | 3437 |
income of a district court of appeals judge sitting in multiple | 3438 |
locations within the district, received as a result of services | 3439 |
rendered as a judge. | 3440 |
Sec. 718.99. (A) Except as provided in division (B) of this | 3441 |
section, whoever violates section 718.35 of the Revised Code, | 3442 |
division (A) of section 718.13 of the Revised Code, or section | 3443 |
718.03 of the Revised Code by failing to remit municipal income | 3444 |
taxes deducted and withheld from an employee, shall be guilty of a | 3445 |
misdemeanor of the first degree and shall be subject to a fine of | 3446 |
one thousand dollars or imprisonment for a term of up to six | 3447 |
months, or both, unless the violation is punishable by a municipal | 3448 |
ordinance or resolution imposing a greater penalty or requiring | 3449 |
dismissal from office or discharge from employment, or both, in | 3450 |
which case the municipal ordinance or resolution shall govern. | 3451 |
(B) Any person who discloses information received from the | 3452 |
Internal Revenue Service in violation of division (A) of section | 3453 |
718.13 of the Revised Code shall be guilty of a felony of the | 3454 |
fifth degree and shall be subject to a fine of not more than five | 3455 |
thousand dollars plus the costs of prosecution, or imprisonment | 3456 |
for a term not exceeding five years, or both, unless the violation | 3457 |
is punishable by a municipal ordinance imposing a greater penalty | 3458 |
or requiring dismissal from office or discharge from employment, | 3459 |
or both, in which case the municipal ordinance shall govern. | 3460 |
(C) Each instance of access or disclosure in violation of | 3461 |
division (A) of section 718.13 of the Revised Code constitutes a | 3462 |
separate offense. | 3463 |
(D) Nothing in this chapter prohibits a municipal corporation | 3464 |
from prosecuting offenses which are made punishable under a | 3465 |
municipal ordinance or resolution levying an income tax and for | 3466 |
which no other penalty is provided under this chapter. | 3467 |
Sec. 5703.059. (A) The tax commissioner may adopt rules | 3468 |
requiring returns, including any accompanying schedule or | 3469 |
statement, for any of the following taxes to be filed | 3470 |
electronically using the Ohio business gateway as defined in | 3471 |
section | 3472 |
using the system known as the Ohio telefile system, or filed by | 3473 |
any other electronic means prescribed by the commissioner: | 3474 |
(1) Employer income tax withholding under Chapter 5747. of | 3475 |
the Revised Code; | 3476 |
(2) Motor fuel tax under Chapter 5735. of the Revised Code; | 3477 |
(3) Cigarette and tobacco product tax under Chapter 5743. of | 3478 |
the Revised Code; | 3479 |
(4) Severance tax under Chapter 5749. of the Revised Code; | 3480 |
(5) Use tax under Chapter 5741. of the Revised Code; | 3481 |
(6) Commercial activity tax under Chapter 5751. of the | 3482 |
Revised Code; | 3483 |
(7) Financial institutions tax under Chapter 5726. of the | 3484 |
Revised Code; | 3485 |
(8) Motor fuel receipts tax under Chapter 5736. of the | 3486 |
Revised Code; | 3487 |
(9) Horse-racing taxes under Chapter 3769. of the Revised | 3488 |
Code. | 3489 |
(B) The tax commissioner may adopt rules requiring any | 3490 |
payment of tax shown on such a return to be due to be made | 3491 |
electronically in a manner approved by the commissioner. | 3492 |
(C) A rule adopted under this section does not apply to | 3493 |
returns or reports filed or payments made before six months after | 3494 |
the effective date of the rule. The commissioner shall publicize | 3495 |
any new electronic filing requirement on the department's web | 3496 |
site. The commissioner shall educate the public of the requirement | 3497 |
through seminars, workshops, conferences, or other outreach | 3498 |
activities. | 3499 |
(D) Any person required to file returns and make payments | 3500 |
electronically under rules adopted under this section may apply to | 3501 |
the commissioner, on a form prescribed by the commissioner, to be | 3502 |
excused from that requirement. For good cause shown, the | 3503 |
commissioner may excuse the applicant from the requirement and | 3504 |
permit the applicant to file the returns or reports or make the | 3505 |
payments required under this section by nonelectronic means. | 3506 |
Sec. 5703.57. (A) As used in this section, "Ohio business | 3507 |
gateway" has the same meaning as in section 718.051 of the Revised | 3508 |
Code. | 3509 |
(B) There is hereby created the Ohio business gateway | 3510 |
steering committee to direct the continuing development of the | 3511 |
Ohio business gateway and to oversee its operations. The committee | 3512 |
shall provide general oversight regarding operation of the Ohio | 3513 |
business gateway and shall recommend to the department of | 3514 |
administrative services enhancements that will improve the Ohio | 3515 |
business gateway. The committee shall consider all banking, | 3516 |
technological, administrative, and other issues associated with | 3517 |
the Ohio business gateway and shall make recommendations regarding | 3518 |
the type of reporting forms or other tax documents to be filed | 3519 |
through the Ohio business gateway. | 3520 |
(C) The committee shall consist of: | 3521 |
(1) The following members, appointed by the governor with the | 3522 |
advice and consent of the senate: | 3523 |
(a) Not more than four representatives of the business | 3524 |
community; | 3525 |
(b) Not more than | 3526 |
municipal tax administrators selected from a list of candidates | 3527 |
provided by the Ohio municipal league; and | 3528 |
(c) Not more than two tax practitioners. | 3529 |
(2) The following ex officio members: | 3530 |
(a) The director or other highest officer of each state | 3531 |
agency that has tax reporting forms or other tax documents filed | 3532 |
with it through the Ohio business gateway or the director's | 3533 |
designee; | 3534 |
(b) The secretary of state or the secretary of state's | 3535 |
designee; | 3536 |
(c) The treasurer of state or the treasurer of state's | 3537 |
designee; | 3538 |
(d) The director of budget and management or the director's | 3539 |
designee; | 3540 |
(e) The state chief information officer or the officer's | 3541 |
designee; | 3542 |
(f) The tax commissioner or the tax commissioner's designee; | 3543 |
and | 3544 |
(g) The director of development or the director's designee. | 3545 |
An appointed member shall serve until the member resigns or | 3546 |
is removed by the governor. Vacancies shall be filled in the same | 3547 |
manner as original appointments. | 3548 |
(D) A vacancy on the committee does not impair the right of | 3549 |
the other members to exercise all the functions of the committee. | 3550 |
The presence of a majority of the members of the committee | 3551 |
constitutes a quorum for the conduct of business of the committee. | 3552 |
The concurrence of at least a majority of the members of the | 3553 |
committee is necessary for any action to be taken by the | 3554 |
committee. On request, each member of the committee shall be | 3555 |
reimbursed for the actual and necessary expenses incurred in the | 3556 |
discharge of the member's duties. | 3557 |
(E) The committee is a part of the department of taxation for | 3558 |
administrative purposes. | 3559 |
(F) Each year, the governor shall select a member of the | 3560 |
committee to serve as chairperson. The chairperson shall appoint | 3561 |
an official or employee of the department of taxation to act as | 3562 |
the committee's secretary. The secretary shall keep minutes of the | 3563 |
committee's meetings and a journal of all meetings, proceedings, | 3564 |
findings, and determinations of the committee. | 3565 |
(G) The committee may hire professional, technical, and | 3566 |
clerical staff needed to support its activities. | 3567 |
(H) The committee shall meet as often as necessary to perform | 3568 |
its duties. | 3569 |
Sec. 5717.011. (A) As used in this chapter, "tax | 3570 |
administrator" has the same meaning as in section 718.01 of the | 3571 |
Revised Code. | 3572 |
(B) Appeals from a | 3573 |
3574 | |
may be taken by the taxpayer or the tax administrator to the board | 3575 |
of tax appeals or may be taken by the taxpayer or the tax | 3576 |
administrator to a court of common pleas as otherwise provided by | 3577 |
law. If the taxpayer or the tax administrator elects to make an | 3578 |
appeal to the board of tax appeals or court of common pleas, and | 3579 |
subject to section 5703.021 of the Revised Code with respect to | 3580 |
appeals assigned to the small claims docket, the appeal shall be | 3581 |
taken by the filing of a notice of appeal with the board of tax | 3582 |
appeals or court of common pleas, the
| 3583 |
3584 | |
shall be filed within sixty days after the day the appellant | 3585 |
receives notice of the decision issued under section 718.11 of the | 3586 |
Revised Code. An appeal filed with a court of common pleas is | 3587 |
governed by the Rules of Civil Procedure and other rules of | 3588 |
practice and procedure applicable to civil actions. For an appeal | 3589 |
filed with the board of tax appeals, the notice of appeal may be | 3590 |
filed in person or by certified mail, express mail, facsimile | 3591 |
transmission, electronic transmission, or by authorized delivery | 3592 |
service as provided in section 5703.056 of the Revised Code. If | 3593 |
the notice of appeal is filed by certified mail, express mail, or | 3594 |
authorized delivery service as provided in section 5703.056 of the | 3595 |
Revised Code, the date of the United States postmark placed on the | 3596 |
sender's receipt by the postal service or the date of receipt | 3597 |
recorded by the authorized delivery service shall be treated as | 3598 |
the date of filing with the board. If notice of appeal is filed by | 3599 |
facsimile transmission or electronic transmission, the date and | 3600 |
time the notice is received by the board shall be the date and | 3601 |
time reflected on a timestamp provided by the board's electronic | 3602 |
system, and the appeal shall be considered filed with the board on | 3603 |
the date reflected on that timestamp. Any timestamp provided by | 3604 |
another computer system or electronic submission device shall not | 3605 |
affect the time and date the notice is received by the board. The | 3606 |
notice of appeal shall have attached thereto and incorporated | 3607 |
therein by reference a true copy of the decision issued under | 3608 |
section 718.11 of the Revised Code, but failure to attach a copy | 3609 |
of such notice and incorporate it by reference in the notice of | 3610 |
appeal does not invalidate the appeal. | 3611 |
(C) A notice of appeal for an appeal filed with the board of | 3612 |
tax appeals shall contain a short and plain statement of the | 3613 |
claimed errors in the decision of the | 3614 |
3615 | |
and a demand for the relief to which the appellant claims to be | 3616 |
entitled. An appellant may amend the notice of appeal once as a | 3617 |
matter of course within sixty days after the certification of the | 3618 |
transcript. Otherwise, an appellant may amend the notice of appeal | 3619 |
only after receiving leave of the board or the written consent of | 3620 |
each adverse party. Leave of the board shall be freely given when | 3621 |
justice so requires. | 3622 |
(D) Upon the filing of a notice of appeal with the board of | 3623 |
tax appeals, the | 3624 |
certify to the board of tax appeals a transcript of the record of | 3625 |
the proceedings before it, together with all evidence considered | 3626 |
by it in connection therewith. Such appeals may be heard by the | 3627 |
board at its office in Columbus or in the county where the | 3628 |
appellant resides, or it may cause its examiners to conduct such | 3629 |
hearings and to report to it their findings for affirmation or | 3630 |
rejection. The board may order the appeal to be heard upon the | 3631 |
record and the evidence certified to it by the tax administrator, | 3632 |
but upon the application of any interested party the board shall | 3633 |
order the hearing of additional evidence, and the board may make | 3634 |
such investigation concerning the appeal as it considers proper. | 3635 |
An appeal may proceed pursuant to section 5703.021 of the Revised | 3636 |
Code on the small claims docket if the appeals qualifies under | 3637 |
that section. | 3638 |
(E) If an issue being appealed under this section is | 3639 |
addressed in a municipal corporation's ordinance or regulation, | 3640 |
the tax administrator, upon the request of the board of tax | 3641 |
appeals, shall provide a copy of the ordinance or regulation to | 3642 |
the board of tax appeals. | 3643 |
Sec. 5717.03. (A) A decision of the board of tax appeals on | 3644 |
an appeal filed with it pursuant to section 5717.01, 5717.011, or | 3645 |
5717.02 of the Revised Code shall be entered of record on the | 3646 |
journal together with the date when the order is filed with the | 3647 |
secretary for journalization. | 3648 |
(B) In case of an appeal from a decision of a county board of | 3649 |
revision, the board of tax appeals shall determine the taxable | 3650 |
value of the property whose valuation or assessment by the county | 3651 |
board of revision is complained of, or in the event the complaint | 3652 |
and appeal is against a discriminatory valuation, shall determine | 3653 |
a valuation which shall correct such discrimination, and shall | 3654 |
determine the liability of the property for taxation, if that | 3655 |
question is in issue, and the board of tax appeals' decision and | 3656 |
the date when it was filed with the secretary for journalization | 3657 |
shall be sent by the board to all persons who were parties to the | 3658 |
appeal before the board, to the person in whose name the property | 3659 |
is listed, or sought to be listed, if such person is not a party | 3660 |
to the appeal, to the county auditor of the county in which the | 3661 |
property involved in the appeal is located, and to the tax | 3662 |
commissioner. | 3663 |
In correcting a discriminatory valuation, the board of tax | 3664 |
appeals shall increase or decrease the value of the property whose | 3665 |
valuation or assessment by the county board of revision is | 3666 |
complained of by a per cent or amount which will cause such | 3667 |
property to be listed and valued for taxation by an equal and | 3668 |
uniform rule. | 3669 |
(C) In the case of an appeal from a review, redetermination, | 3670 |
or correction of a tax assessment, valuation, determination, | 3671 |
finding, computation, or order of the tax commissioner, the order | 3672 |
of the board of tax appeals and the date of the entry thereof upon | 3673 |
its journal shall be sent by the board to all persons who were | 3674 |
parties to the appeal before the board, the person in whose name | 3675 |
the property is listed or sought to be listed, if the decision | 3676 |
determines the valuation or liability of property for taxation and | 3677 |
if such person is not a party to the appeal, the taxpayer or other | 3678 |
person to whom notice of the tax assessment, valuation, | 3679 |
determination, finding, computation, or order, or correction or | 3680 |
redetermination thereof, by the tax commissioner was by law | 3681 |
required to be given, the director of budget and management, if | 3682 |
the revenues affected by such decision would accrue primarily to | 3683 |
the state treasury, and the county auditors of the counties to the | 3684 |
undivided general tax funds of which the revenues affected by such | 3685 |
decision would primarily accrue. | 3686 |
(D) In the case of an appeal from a | 3687 |
local board of | 3688 |
the Revised Code, the order of the board of tax appeals and the | 3689 |
date of the entry thereof upon the board's journal shall be sent | 3690 |
by the board to all persons who were parties to the appeal before | 3691 |
the board. | 3692 |
(E) In the case of all other appeals or applications filed | 3693 |
with and determined by the board, the board's order and the date | 3694 |
when the order was filed by the secretary for journalization shall | 3695 |
be sent by the board to the person who is a party to such appeal | 3696 |
or application, to such persons as the law requires, and to such | 3697 |
other persons as the board deems proper. | 3698 |
(F) The orders of the board may affirm, reverse, vacate, | 3699 |
modify, or remand the tax assessments, valuations, determinations, | 3700 |
findings, computations, or orders complained of in the appeals | 3701 |
determined by the board, and the board's decision shall become | 3702 |
final and conclusive for the current year unless reversed, | 3703 |
vacated, or modified as provided in section 5717.04 of the Revised | 3704 |
Code. When an order of the board becomes final the tax | 3705 |
commissioner and all officers to whom such decision has been sent | 3706 |
shall make the changes in their tax lists or other records which | 3707 |
the decision requires. | 3708 |
(G) If the board finds that issues not raised on the appeal | 3709 |
are important to a determination of a controversy, the board may | 3710 |
remand the cause for an administrative determination and the | 3711 |
issuance of a new tax assessment, valuation, determination, | 3712 |
finding, computation, or order, unless the parties stipulate to | 3713 |
the determination of such other issues without remand. An order | 3714 |
remanding the cause is a final order. If the order relates to any | 3715 |
issue other than a municipal income tax matter appealed under | 3716 |
sections 718.11 and 5717.011 of the Revised Code, the order may be | 3717 |
appealed to the court of appeals in Franklin county. If the order | 3718 |
relates to a municipal income tax matter appealed under sections | 3719 |
718.11 and 5717.011 of the Revised Code, the order may be appealed | 3720 |
to the court of appeals for the county in which the municipal | 3721 |
corporation in which the dispute arose is primarily situated. | 3722 |
(H) At the request of any person that filed an appeal subject | 3723 |
to this section, the decision or order of the board of tax appeals | 3724 |
issued pursuant to division (B), (C), (D), or (E) of this section | 3725 |
shall be sent by certified mail at the requestor's expense. | 3726 |
Sec. 5739.12. (A)(1) Each person who has or is required to | 3727 |
have a vendor's license, on or before the twenty-third day of each | 3728 |
month, shall make and file a return for the preceding month in the | 3729 |
form prescribed by the tax commissioner, and shall pay the tax | 3730 |
shown on the return to be due. The return shall be filed | 3731 |
electronically using the Ohio business gateway, as defined in | 3732 |
section | 3733 |
system, or any other electronic means prescribed by the | 3734 |
commissioner. Payment of the tax shown on the return to be due | 3735 |
shall be made electronically in a manner approved by the | 3736 |
commissioner. The commissioner may require a vendor that operates | 3737 |
from multiple locations or has multiple vendor's licenses to | 3738 |
report all tax liabilities on one consolidated return. The return | 3739 |
shall show the amount of tax due from the vendor to the state for | 3740 |
the period covered by the return and such other information as the | 3741 |
commissioner deems necessary for the proper administration of this | 3742 |
chapter. The commissioner may extend the time for making and | 3743 |
filing returns and paying the tax, and may require that the return | 3744 |
for the last month of any annual or semiannual period, as | 3745 |
determined by the commissioner, be a reconciliation return | 3746 |
detailing the vendor's sales activity for the preceding annual or | 3747 |
semiannual period. The reconciliation return shall be filed by the | 3748 |
last day of the month following the last month of the annual or | 3749 |
semiannual period. The commissioner may remit all or any part of | 3750 |
amounts or penalties that may become due under this chapter and | 3751 |
may adopt rules relating thereto. Such return shall be filed | 3752 |
electronically as directed by the tax commissioner, and payment of | 3753 |
the amount of tax shown to be due thereon, after deduction of any | 3754 |
discount provided for under this section, shall be made | 3755 |
electronically in a manner approved by the tax commissioner. | 3756 |
(2) Any person required to file returns and make payments | 3757 |
electronically under division (A)(1) of this section may apply to | 3758 |
the tax commissioner on a form prescribed by the commissioner to | 3759 |
be excused from that requirement. For good cause shown, the | 3760 |
commissioner may excuse the person from that requirement and may | 3761 |
permit the person to file the returns and make the payments | 3762 |
required by this section by nonelectronic means. | 3763 |
(B)(1) If the return is filed and the amount of tax shown | 3764 |
thereon to be due is paid on or before the date such return is | 3765 |
required to be filed, the vendor shall be entitled to a discount | 3766 |
of three-fourths of one per cent of the amount shown to be due on | 3767 |
the return. | 3768 |
(2) A vendor that has selected a certified service provider | 3769 |
as its agent shall not be entitled to the discount if the | 3770 |
certified service provider receives a monetary allowance pursuant | 3771 |
to section 5739.06 of the Revised Code for performing the vendor's | 3772 |
sales and use tax functions in this state. Amounts paid to the | 3773 |
clerk of courts pursuant to section 4505.06 of the Revised Code | 3774 |
shall be subject to the applicable discount. The discount shall be | 3775 |
in consideration for prompt payment to the clerk of courts and for | 3776 |
other services performed by the vendor in the collection of the | 3777 |
tax. | 3778 |
(C)(1) Upon application to the tax commissioner, a vendor who | 3779 |
is required to file monthly returns may be relieved of the | 3780 |
requirement to report and pay the actual tax due, provided that | 3781 |
the vendor agrees to remit to the commissioner payment of not less | 3782 |
than an amount determined by the commissioner to be the average | 3783 |
monthly tax liability of the vendor, based upon a review of the | 3784 |
returns or other information pertaining to such vendor for a | 3785 |
period of not less than six months nor more than two years | 3786 |
immediately preceding the filing of the application. Vendors who | 3787 |
agree to the above conditions shall make and file an annual or | 3788 |
semiannual reconciliation return, as prescribed by the | 3789 |
commissioner. The reconciliation return shall be filed | 3790 |
electronically as directed by the tax commissioner, and payment of | 3791 |
the amount of tax shown to be due thereon, after deduction of any | 3792 |
discount provided in this section, shall be made electronically in | 3793 |
a manner approved by the commissioner. Failure of a vendor to | 3794 |
comply with any of the above conditions may result in immediate | 3795 |
reinstatement of the requirement of reporting and paying the | 3796 |
actual tax liability on each monthly return, and the commissioner | 3797 |
may at the commissioner's discretion deny the vendor the right to | 3798 |
report and pay based upon the average monthly liability for a | 3799 |
period not to exceed two years. The amount ascertained by the | 3800 |
commissioner to be the average monthly tax liability of a vendor | 3801 |
may be adjusted, based upon a review of the returns or other | 3802 |
information pertaining to the vendor for a period of not less than | 3803 |
six months nor more than two years preceding such adjustment. | 3804 |
(2) The commissioner may authorize vendors whose tax | 3805 |
liability is not such as to merit monthly returns, as ascertained | 3806 |
by the commissioner upon the basis of administrative costs to the | 3807 |
state, to make and file returns at less frequent intervals. When | 3808 |
returns are filed at less frequent intervals in accordance with | 3809 |
such authorization, the vendor shall be allowed the discount | 3810 |
provided in this section in consideration for prompt payment with | 3811 |
the return, provided the return is filed and payment is made of | 3812 |
the amount of tax shown to be due thereon, at the time specified | 3813 |
by the commissioner, but a vendor that has selected a certified | 3814 |
service provider as its agent shall not be entitled to the | 3815 |
discount. | 3816 |
(D) Any vendor who fails to file a return or to pay the full | 3817 |
amount of the tax shown on the return to be due in the manner | 3818 |
prescribed under this section and the rules of the commissioner | 3819 |
may, for each such return, be required to forfeit and pay into the | 3820 |
state treasury an additional charge not exceeding fifty dollars or | 3821 |
ten per cent of the tax required to be paid for the reporting | 3822 |
period, whichever is greater, as revenue arising from the tax | 3823 |
imposed by this chapter, and such sum may be collected by | 3824 |
assessment in the manner provided in section 5739.13 of the | 3825 |
Revised Code. The commissioner may remit all or a portion of the | 3826 |
additional charge and may adopt rules relating to the imposition | 3827 |
and remission of the additional charge. | 3828 |
(E) If the amount required to be collected by a vendor from | 3829 |
consumers is in excess of the applicable percentage of the | 3830 |
vendor's receipts from sales that are taxable under section | 3831 |
5739.02 of the Revised Code, or in the case of sales subject to a | 3832 |
tax levied pursuant to section 5739.021, 5739.023, or 5739.026 of | 3833 |
the Revised Code, in excess of the percentage equal to the | 3834 |
aggregate rate of such taxes and the tax levied by section 5739.02 | 3835 |
of the Revised Code, such excess shall be remitted along with the | 3836 |
remittance of the amount of tax due under section 5739.10 of the | 3837 |
Revised Code. | 3838 |
(F) The commissioner, if the commissioner deems it necessary | 3839 |
in order to insure the payment of the tax imposed by this chapter, | 3840 |
may require returns and payments to be made for other than monthly | 3841 |
periods. | 3842 |
(G) Any vendor required to file a return and pay the tax | 3843 |
under this section whose total payment for a year equals or | 3844 |
exceeds the amount shown in division (A) of section 5739.122 of | 3845 |
the Revised Code is subject to the accelerated tax payment | 3846 |
requirements in divisions (B) and (C) of that section. For a | 3847 |
vendor that operates from multiple locations or has multiple | 3848 |
vendor's licenses, in determining whether the vendor's total | 3849 |
payment equals or exceeds the amount shown in division (A) of that | 3850 |
section, the vendor's total payment amount shall be the amount of | 3851 |
the vendor's total tax liability for the previous calendar year | 3852 |
for all of the vendor's locations or licenses. | 3853 |
Sec. 5739.124. (A) If required by the tax commissioner, a | 3854 |
permit holder required to make payments under section 5739.032 of | 3855 |
the Revised Code shall file all returns and reports | 3856 |
electronically. The commissioner may require the permit holder to | 3857 |
use the Ohio business gateway, as defined in section | 3858 |
718.01 of the Revised Code, or any other electronic means approved | 3859 |
by the commissioner, to file the returns and reports, or to remit | 3860 |
the tax, in lieu of the manner prescribed under section 5739.032 | 3861 |
of the Revised Code. | 3862 |
(B) A person required under this section to file reports and | 3863 |
returns electronically may apply to the tax commissioner to be | 3864 |
excused from that requirement. Applications shall be made on a | 3865 |
form prescribed by the commissioner. The commissioner may approve | 3866 |
the application for good cause. | 3867 |
(C)(1) If a person required to file a report or return | 3868 |
electronically under this section fails to do so, the tax | 3869 |
commissioner may impose an additional charge not to exceed the | 3870 |
following: | 3871 |
(a) For each of the first two failures, five per cent of the | 3872 |
amount required to be reported on the report or return; | 3873 |
(b) For the third and any subsequent failure, ten per cent of | 3874 |
the amount required to be reported on the report or return. | 3875 |
(2) The charges authorized under division (C)(1) of this | 3876 |
section are in addition to any other charge or penalty authorized | 3877 |
under this chapter, and shall be considered as revenue arising | 3878 |
from taxes imposed under this chapter. An additional charge may be | 3879 |
collected by assessment in the manner prescribed by section | 3880 |
5739.13 of the Revised Code. The commissioner may waive all or a | 3881 |
portion of such a charge and may adopt rules governing such | 3882 |
waiver. | 3883 |
Sec. 5741.122. (A) If required by the tax commissioner, a | 3884 |
person required to make payments under section 5741.121 of the | 3885 |
Revised Code shall file all returns and reports electronically. | 3886 |
The commissioner may require the person to use the Ohio business | 3887 |
gateway, as defined in section | 3888 |
or any other electronic means approved by the commissioner, to | 3889 |
file the returns and reports, or to remit the tax, in lieu of the | 3890 |
manner prescribed under section 5741.121 of the Revised Code. | 3891 |
(B) A person required under this section to file reports and | 3892 |
returns electronically may apply to the tax commissioner to be | 3893 |
excused from that requirement. Applications shall be made on a | 3894 |
form prescribed by the commissioner. The commissioner may approve | 3895 |
the application for good cause. | 3896 |
(C)(1) If a person required to file a report or return | 3897 |
electronically under this section fails to do so, the tax | 3898 |
commissioner may impose an additional charge not to exceed the | 3899 |
following: | 3900 |
(a) For each of the first two failures, five per cent of the | 3901 |
amount required to be reported on the report or return; | 3902 |
(b) For the third and any subsequent failure, ten per cent of | 3903 |
the amount required to be reported on the report or return. | 3904 |
(2) The charges authorized under division (C)(1) of this | 3905 |
section are in addition to any other charge or penalty authorized | 3906 |
under this chapter, and shall be considered as revenue arising | 3907 |
from taxes imposed under this chapter. An additional charge may be | 3908 |
collected by assessment in the manner prescribed by section | 3909 |
5741.13 of the Revised Code. The commissioner may waive all or a | 3910 |
portion of such a charge and may adopt rules governing such | 3911 |
waiver. | 3912 |
Sec. 5747.063. (A)(1) If a person's winnings at a casino | 3913 |
facility are an amount for which reporting to the internal revenue | 3914 |
service of the amount is required by section 6041 of the Internal | 3915 |
Revenue Code, as amended, the casino operator shall deduct and | 3916 |
withhold Ohio income tax from the person's winnings at a rate of | 3917 |
four per cent of the amount won | 3918 |
3919 | |
3920 | |
3921 | |
time the person exchanges amounts won in tokens, chips, casino | 3922 |
credit, or other prepaid representations of value for cash or a | 3923 |
cash equivalent. The casino operator shall issue, to a person from | 3924 |
whose winnings an amount has been deducted and withheld, a receipt | 3925 |
for the amount deducted and withheld, and also shall obtain from | 3926 |
the person additional information that will be necessary for the | 3927 |
casino operator to prepare the returns required by this section. | 3928 |
(2) If a person's winnings at a casino facility require | 3929 |
reporting to the internal revenue service under division (A)(1) of | 3930 |
this section, the casino operator also shall require the person to | 3931 |
state in writing, under penalty of falsification, whether the | 3932 |
person is in default under a support order. | 3933 |
(B) Amounts deducted and withheld by a casino operator are | 3934 |
held in trust for the benefit of the state | 3935 |
3936 |
(1) On or before the tenth day of each month, the casino | 3937 |
operator shall file a return electronically with the tax | 3938 |
commissioner | 3939 |
3940 | |
winnings amounts were deducted and withheld, the amount of each | 3941 |
such deduction and withholding during the preceding calendar | 3942 |
month, the amount of the winnings from which each such amount was | 3943 |
withheld, the type of casino gaming that resulted in such | 3944 |
winnings, and any other information required by the tax | 3945 |
commissioner. With the return, the casino operator shall remit | 3946 |
electronically to the commissioner | 3947 |
3948 | |
and withheld during the preceding month. | 3949 |
(2)(a) A casino operator shall maintain a record of each | 3950 |
written statement provided under division (A)(2) of this section | 3951 |
in which a person admits to being in default under a support | 3952 |
order. The casino operator shall make these records available to | 3953 |
the director of job and family services upon request. | 3954 |
(b) A casino operator shall maintain copies of receipts | 3955 |
issued under division (A)(1) of this section and of written | 3956 |
statements provided under division (A)(2) of this section and | 3957 |
shall make these copies available to the tax commissioner upon | 3958 |
request. | 3959 |
(c) A casino operator shall maintain the information | 3960 |
described in divisions (B)(2)(a) and (b) of this section in | 3961 |
accordance with section 5747.17 of the Revised Code and any rules | 3962 |
adopted pursuant thereto. | 3963 |
(3) Annually, on or before the thirty-first day of January, a | 3964 |
casino operator shall file an annual return electronically with | 3965 |
the tax commissioner | 3966 |
3967 | |
and withheld during the preceding calendar year. The casino | 3968 |
operator shall remit electronically with the annual return any | 3969 |
amount that was deducted and withheld and that was not previously | 3970 |
remitted. If the identity of a person and the amount deducted and | 3971 |
withheld with respect to that person were omitted on a monthly | 3972 |
return, that information shall be indicated on the annual return. | 3973 |
(4)(a) A casino operator who fails to file a return and remit | 3974 |
the amounts deducted and withheld is personally liable for the | 3975 |
amount deducted and withheld and not remitted. The commissioner | 3976 |
3977 | |
3978 | |
return is filed late, if amounts deducted and withheld are | 3979 |
remitted late, if a return is not filed, or if amounts deducted | 3980 |
and withheld are not remitted. Interest accrues on past due | 3981 |
amounts deducted and withheld at the rate prescribed in section | 3982 |
5703.47 of the Revised Code. The commissioner | 3983 |
3984 | |
collect past due amounts deducted and withheld and penalties and | 3985 |
interest thereon by assessment under section 5747.13 of the | 3986 |
Revised Code as if they were income taxes collected by an | 3987 |
employer. | 3988 |
(b) If a casino operator sells the casino facility or | 3989 |
otherwise quits the casino business, the amounts deducted and | 3990 |
withheld and any penalties and interest thereon are immediately | 3991 |
due and payable. The successor shall withhold an amount of the | 3992 |
purchase money that is sufficient to cover the amounts deducted | 3993 |
and withheld and penalties and interest thereon until the | 3994 |
predecessor casino operator produces either a receipt from the | 3995 |
commissioner | 3996 |
3997 | |
withheld and penalties and interest thereon have been paid or a | 3998 |
certificate from the commissioner | 3999 |
4000 | |
deducted and withheld or penalties and interest thereon are due. | 4001 |
If the successor fails to withhold purchase money, the successor | 4002 |
is personally liable for payment of the amounts deducted and | 4003 |
withheld and penalties and interest thereon, up to the amount of | 4004 |
the purchase money. | 4005 |
(C)(1) Annually, on or before the thirty-first day of | 4006 |
January, a casino operator shall issue an information return to | 4007 |
each person with respect to whom an amount has been deducted and | 4008 |
withheld during the preceding calendar year. The information | 4009 |
return shall show the total amount deducted from the person's | 4010 |
winnings by the casino operator during the preceding calendar | 4011 |
year. | 4012 |
(2) Annually, on or before the thirty-first day of January, a | 4013 |
casino operator shall provide to the commissioner a copy of each | 4014 |
information return issued under division (C)(1) of this section | 4015 |
for the preceding calendar year. The commissioner may require that | 4016 |
the copies be transmitted electronically. | 4017 |
(D) Amounts deducted and withheld shall be allowed as a | 4018 |
credit against payment of the tax imposed by section 5747.02 of | 4019 |
the Revised Code and shall be treated as taxes paid for purposes | 4020 |
of section 5747.09 of the Revised Code. This division applies only | 4021 |
to the person for whom the amount is deducted and withheld. | 4022 |
(E) The failure of a casino operator to deduct and withhold | 4023 |
the required amount from a person's winnings does not relieve the | 4024 |
person from liability for the tax imposed by section 5747.02 of | 4025 |
the Revised Code with respect to those winnings. And compliance | 4026 |
with this section does not relieve a casino operator or a person | 4027 |
who has winnings at a casino facility from compliance with | 4028 |
relevant provisions of federal tax laws. | 4029 |
(F) The commissioner | 4030 |
4031 | |
the receipt and returns required by this section. The director of | 4032 |
job and family services shall prescribe the form of the statement | 4033 |
required by this section. | 4034 |
(G) The requirements imposed under this section are in | 4035 |
addition to the municipal income tax withholding requirements | 4036 |
under section 718.031 of the Revised Code. | 4037 |
(H) The commissioner may adopt rules that are necessary to | 4038 |
administer this section. | 4039 |
Sec. 5747.064. (A) As used in this section, "video lottery | 4040 |
terminal" has the same meaning as in section 3770.21 of the | 4041 |
Revised Code. | 4042 |
(B) If a person's prize award from a video lottery terminal | 4043 |
is an amount for which reporting to the internal revenue service | 4044 |
of the amount is required by section 6041 of the Internal Revenue | 4045 |
Code, as amended, the lottery sales agent shall deduct and | 4046 |
withhold Ohio income tax from the person's prize award at a rate | 4047 |
of four per cent of the amount won | 4048 |
4049 | |
4050 | |
4051 | |
person from whose prize award an amount has been deducted or | 4052 |
withheld, a receipt for the amount deducted and withheld, and also | 4053 |
shall obtain from the person additional information that will be | 4054 |
necessary for the lottery sales agent to prepare the returns | 4055 |
required by this section. | 4056 |
(C) Amounts deducted and withheld by a lottery sales agent | 4057 |
are held in trust for the benefit of the state | 4058 |
4059 |
(1) On or before the tenth day of each month, the lottery | 4060 |
sales agent shall file a return electronically with the tax | 4061 |
commissioner | 4062 |
4063 | |
prize awards amounts were deducted and withheld, the amount of | 4064 |
each such deduction and withholding during the preceding month, | 4065 |
the amount of the prize award from which each such amount was | 4066 |
withheld, and any other information required by the commissioner | 4067 |
4068 | |
4069 | |
electronically to the commissioner | 4070 |
4071 | |
and withheld during the preceding month. | 4072 |
(2) A lottery sales agent shall maintain a record of all | 4073 |
receipts issued under division (B) of this section and shall make | 4074 |
those records available to the commissioner | 4075 |
4076 | |
request. Such records shall be maintained in accordance with | 4077 |
section 5747.17 of the Revised Code and any rules adopted pursuant | 4078 |
thereto. | 4079 |
(3) Annually, on or before the thirty-first day of January, a | 4080 |
lottery sales agent shall file an annual return electronically | 4081 |
with the tax commissioner | 4082 |
4083 | |
deducted and withheld during the preceding calendar year. The | 4084 |
lottery sales agent shall remit electronically with the annual | 4085 |
return any amount that was deducted and withheld and that was not | 4086 |
previously remitted. If the identity of a person and the amount | 4087 |
deducted and withheld with respect to that person were omitted on | 4088 |
a monthly return, that information shall be indicated on the | 4089 |
annual return. | 4090 |
(4)(a) A lottery sales agent who fails to file a return and | 4091 |
remit the amounts deducted and withheld is personally liable for | 4092 |
the amount deducted and withheld and not remitted. The | 4093 |
commissioner | 4094 |
4095 | |
thousand dollars if a return is filed late, if amounts deducted | 4096 |
and withheld are remitted late, if a return is not filed, or if | 4097 |
amounts deducted and withheld are not remitted. Interest accrues | 4098 |
on past due amounts deducted and withheld at the rate prescribed | 4099 |
in section 5703.47 of the Revised Code. The commissioner | 4100 |
4101 | |
collect past due amounts deducted and withheld and penalties and | 4102 |
interest thereon by assessment under section 5747.13 of the | 4103 |
Revised Code as if they were income taxes collected by an | 4104 |
employer. | 4105 |
(b) If a lottery sales agent ceases to operate video lottery | 4106 |
terminals, the amounts deducted and withheld and any penalties and | 4107 |
interest thereon are immediately due and payable. A successor of | 4108 |
the lottery sales agent that purchases the video lottery terminals | 4109 |
from the agent shall withhold an amount of the purchase money that | 4110 |
is sufficient to cover the amounts deducted and withheld and | 4111 |
penalties and interest thereon until the predecessor lottery sales | 4112 |
agent produces either a receipt from the tax commissioner | 4113 |
4114 | |
showing that the amounts deducted and withheld and penalties and | 4115 |
interest thereon have been paid or a certificate from the | 4116 |
commissioner | 4117 |
4118 | |
and withheld or penalties and interest thereon are due. If the | 4119 |
successor fails to withhold purchase money, the successor is | 4120 |
personally liable for payment of the amounts deducted and withheld | 4121 |
and penalties and interest thereon, up to the amount of the | 4122 |
purchase money. | 4123 |
(D)(1) Annually, on or before the thirty-first day of | 4124 |
January, a lottery sales agent shall issue an information return | 4125 |
to each person with respect to whom an amount has been deducted | 4126 |
and withheld during the preceding calendar year. The information | 4127 |
return shall show the total amount deducted from the person's | 4128 |
prize award by the lottery sales agent during the preceding year. | 4129 |
(2) Annually, on or before the thirty-first day of January, a | 4130 |
lottery sales agent shall provide to the tax commissioner | 4131 |
4132 | |
copy of each information return issued under division (D)(1) of | 4133 |
this section for the preceding calendar year. The commissioner | 4134 |
4135 | |
may require that such copies be transmitted electronically. | 4136 |
(E) Amounts deducted and withheld shall be allowed as a | 4137 |
credit against payment of the tax imposed by section 5747.02 of | 4138 |
the Revised Code and shall be treated as taxes paid for purposes | 4139 |
of section 5747.09 of the Revised Code. This division applies only | 4140 |
to the person for whom the amount is deducted and withheld. | 4141 |
(F) The failure of a lottery sales agent to deduct and | 4142 |
withhold the required amount from a person's prize award does not | 4143 |
relieve the person from liability for the tax imposed by section | 4144 |
5747.02 of the Revised Code with respect to that income. | 4145 |
Compliance with this section does not relieve a lottery sales | 4146 |
agent or a person who has a prize award from compliance with | 4147 |
relevant provisions of federal tax laws. | 4148 |
(G) The commissioner | 4149 |
4150 | |
the receipt and returns required by this section and | 4151 |
4152 | |
section. | 4153 |
(H) The requirements imposed under this section are in | 4154 |
addition to the municipal income tax withholding requirements | 4155 |
under section 718.031 of the Revised Code. | 4156 |
Sec. 5747.50. (A) As used in this section: | 4157 |
(1) "County's proportionate share of the calendar year 2007 | 4158 |
LGF and LGRAF distributions" means the percentage computed for the | 4159 |
county under division (B)(1)(a) of section 5747.501 of the Revised | 4160 |
Code. | 4161 |
(2) "County's proportionate share of the total amount of the | 4162 |
local government fund additional revenue formula" means each | 4163 |
county's proportionate share of the state's population as | 4164 |
determined for and certified to the county for distributions to be | 4165 |
made during the current calendar year under division (B)(2)(a) of | 4166 |
section 5747.501 of the Revised Code. If prior to the first day of | 4167 |
January of the current calendar year the federal government has | 4168 |
issued a revision to the population figures reflected in the | 4169 |
estimate produced pursuant to division (B)(2)(a) of section | 4170 |
5747.501 of the Revised Code, such revised population figures | 4171 |
shall be used for making the distributions during the current | 4172 |
calendar year. | 4173 |
(3) "2007 LGF and LGRAF county distribution base available in | 4174 |
that month" means the lesser of the amounts described in division | 4175 |
(A)(3)(a) and (b) of this section, provided that the amount shall | 4176 |
not be less than zero: | 4177 |
(a) The total amount available for distribution to counties | 4178 |
from the local government fund during the current month. | 4179 |
(b) The total amount distributed to counties from the local | 4180 |
government fund and the local government revenue assistance fund | 4181 |
to counties in calendar year 2007 less the total amount | 4182 |
distributed to counties under division (B)(1) of this section | 4183 |
during previous months of the current calendar year. | 4184 |
(4) "Local government fund additional revenue distribution | 4185 |
base available during that month" means the total amount available | 4186 |
for distribution to counties during the month from the local | 4187 |
government fund, less any amounts to be distributed in that month | 4188 |
from the local government fund under division (B)(1) of this | 4189 |
section, provided that the local government fund additional | 4190 |
revenue distribution base available during that month shall not be | 4191 |
less than zero. | 4192 |
(5) "Total amount available for distribution to counties" | 4193 |
means the total amount available for distribution from the local | 4194 |
government fund during the current month less the total amount | 4195 |
available for distribution to municipal corporations during the | 4196 |
current month under division (C) of this section. | 4197 |
(B) On or before the tenth day of each month, the tax | 4198 |
commissioner shall provide for payment to each county an amount | 4199 |
equal to the sum of: | 4200 |
(1) The county's proportionate share of the calendar year | 4201 |
2007 LGF and LGRAF distributions multiplied by the 2007 LGF and | 4202 |
LGRAF county distribution base available in that month, provided | 4203 |
that if the 2007 LGF and LGRAF county distribution base available | 4204 |
in that month is zero, no payment shall be made under division | 4205 |
(B)(1) of this section for the month or the remainder of the | 4206 |
calendar year; and | 4207 |
(2) The county's proportionate share of the total amount of | 4208 |
the local government fund additional revenue formula multiplied by | 4209 |
the local government fund additional revenue distribution base | 4210 |
available during that month. | 4211 |
Money received into the treasury of a county under this | 4212 |
division shall be credited to the undivided local government fund | 4213 |
in the treasury of the county on or before the fifteenth day of | 4214 |
each month. On or before the twentieth day of each month, the | 4215 |
county auditor shall issue warrants against all of the undivided | 4216 |
local government fund in the county treasury in the respective | 4217 |
amounts allowed as provided in section 5747.51 of the Revised | 4218 |
Code, and the treasurer shall distribute and pay such sums to the | 4219 |
subdivision therein. | 4220 |
(C)(1) As used in division (C) of this section: | 4221 |
(a) "Total amount available for distribution to | 4222 |
municipalities during the current month" means the product | 4223 |
obtained by multiplying the total amount available for | 4224 |
distribution from the local government fund during the current | 4225 |
month by the aggregate municipal share. | 4226 |
(b) "Aggregate municipal share" means the quotient obtained | 4227 |
by dividing the total amount distributed directly from the local | 4228 |
government fund to municipal corporations during calendar year | 4229 |
2007 by the total distributions from the local government fund and | 4230 |
local government revenue assistance fund during calendar year | 4231 |
2007. | 4232 |
(2) On or before the tenth day of each month, the tax | 4233 |
commissioner shall provide for payment from the local government | 4234 |
fund to each municipal corporation an amount equal to the product | 4235 |
derived by multiplying the municipal corporation's percentage of | 4236 |
the total amount distributed to all such municipal corporations | 4237 |
under this division during calendar year 2007 by the total amount | 4238 |
available for distribution to municipal corporations during the | 4239 |
current month. | 4240 |
(3) Payments received by a municipal corporation under this | 4241 |
division shall be paid into its general fund and may be used for | 4242 |
any lawful purpose. | 4243 |
(4) The amount distributed to municipal corporations under | 4244 |
this division during any calendar year shall not exceed the amount | 4245 |
distributed directly from the local government fund to municipal | 4246 |
corporations during calendar year 2007. If that maximum amount is | 4247 |
reached during any month, distributions to municipal corporations | 4248 |
in that month shall be as provided in divisions (C)(1) and (2) of | 4249 |
this section, but no further distributions shall be made to | 4250 |
municipal corporations under division (C) of this section during | 4251 |
the remainder of the calendar year. | 4252 |
(5) Upon being informed of a municipal corporation's | 4253 |
dissolution, the tax commissioner shall cease providing for | 4254 |
payments to that municipal corporation under division (C) of this | 4255 |
section. The proportionate shares of the total amount available | 4256 |
for distribution to each of the remaining municipal corporations | 4257 |
under this division shall be increased on a pro rata basis. | 4258 |
(D) Each municipal corporation which has in effect a tax | 4259 |
imposed under Chapter 718. of the Revised Code shall, no later | 4260 |
than the thirty-first day of August of each year, certify to the | 4261 |
tax commissioner, on a form prescribed by the commissioner, the | 4262 |
4263 | |
such municipal corporation pursuant to such chapter during the | 4264 |
preceding calendar year, arranged by the type of income from which | 4265 |
the revenue was collected or the refund was issued. The municipal | 4266 |
corporation shall also report the amount of income tax revenue | 4267 |
collected and refunded on behalf of a joint economic development | 4268 |
district or a joint economic development zone that levies an | 4269 |
income tax administered by the municipal corporation and the | 4270 |
amount of such revenue distributed to contracting parties during | 4271 |
the preceding calendar year. The tax commissioner may withhold | 4272 |
payment of local government fund moneys pursuant to division (C) | 4273 |
of this section from any municipal corporation for failure to | 4274 |
comply with this reporting requirement. | 4275 |
Sec. 5751.07. (A) Any person required to file returns under | 4276 |
this chapter shall remit each tax payment, and, if required by the | 4277 |
tax commissioner, file the tax return or the annual report, | 4278 |
electronically. The commissioner may require taxpayers to use the | 4279 |
Ohio business gateway as defined in section | 4280 |
Revised Code to file returns and remit the tax, or may provide | 4281 |
another means for taxpayers to file and remit the tax | 4282 |
electronically. | 4283 |
(B) A person required by this section to remit taxes or file | 4284 |
returns electronically may apply to the tax commissioner, on the | 4285 |
form prescribed by the commissioner, to be excused from that | 4286 |
requirement. The commissioner may excuse a person from the | 4287 |
requirements of this division for good cause. | 4288 |
(C)(1) If a person required to remit taxes or file a return | 4289 |
electronically under this section fails to do so, the commissioner | 4290 |
may impose a penalty not to exceed the following: | 4291 |
(a) For either of the first two tax periods the person so | 4292 |
fails, the greater of twenty-five dollars or five per cent of the | 4293 |
amount of the payment that was required to be remitted; | 4294 |
(b) For the third and any subsequent tax periods the person | 4295 |
so fails, the greater of fifty dollars or ten per cent of the | 4296 |
amount of the payment that was required to be remitted. | 4297 |
(2) The penalty imposed under division (C)(1) of this section | 4298 |
is in addition to any other penalty imposed under this chapter and | 4299 |
shall be considered as revenue arising from the tax imposed under | 4300 |
this chapter. A penalty may be collected by assessment in the | 4301 |
manner prescribed by section 5751.09 of the Revised Code. The tax | 4302 |
commissioner may abate all or a portion of such a penalty. | 4303 |
(D) The tax commissioner may adopt rules necessary to | 4304 |
administer this section. | 4305 |
Section 2. That existing sections 709.023, 718.02, 718.03, | 4306 |
718.04, 718.051, 718.07, 718.09, 718.10, 718.11, 718.121, 718.13, | 4307 |
5703.059, 5703.57, 5717.011, 5717.03, 5739.12, 5739.124, 5741.122, | 4308 |
5747.063, 5747.064, 5747.50, and 5751.07 and sections 718.01, | 4309 |
718.011, 718.041, 718.05, 718.06, 718.08, 718.12, and 718.14 of | 4310 |
the Revised Code are hereby repealed. | 4311 |
Section 3. That the version of section 5703.02 of the | 4312 |
Revised Code that is scheduled to take effect January 1, 2015, be | 4313 |
amended to read as follows: | 4314 |
Sec. 5703.02. There is hereby created the board of tax | 4315 |
appeals, which shall exercise the following powers and perform the | 4316 |
following duties: | 4317 |
(A) Exercise the authority provided by law to hear and | 4318 |
determine all appeals of questions of law and fact arising under | 4319 |
the tax laws of this state in appeals from decisions, orders, | 4320 |
determinations, or actions of any tax administrative agency | 4321 |
established by the law of this state, including but not limited to | 4322 |
appeals from: | 4323 |
(1) Actions of county budget commissions; | 4324 |
(2) Decisions of county boards of revision; | 4325 |
(3) Actions of any assessing officer or other public official | 4326 |
under the tax laws of this state; | 4327 |
(4) Final determinations by the tax commissioner of any | 4328 |
preliminary, amended, or final tax assessments, reassessments, | 4329 |
valuations, determinations, findings, computations, or orders made | 4330 |
by the tax commissioner; | 4331 |
(5) Adoption and promulgation of rules of the tax | 4332 |
commissioner. | 4333 |
(B) Appoint a secretary of the board of tax appeals, who | 4334 |
shall serve in the unclassified civil service at the pleasure of | 4335 |
the board, and any other employees as are necessary in the | 4336 |
exercise of the powers and the performance of the duties and | 4337 |
functions that the board is by law authorized and required to | 4338 |
exercise, and prescribe the duties of all employees, and to fix | 4339 |
their compensation as provided by law; | 4340 |
(C) Maintain a journal, which shall be open to public | 4341 |
inspection and in which the secretary shall keep a record of all | 4342 |
of the proceedings and the vote of each of its members upon every | 4343 |
action taken by it; | 4344 |
(D) Adopt and promulgate, in the manner provided by section | 4345 |
5703.14 of the Revised Code, and enforce all rules relating to the | 4346 |
procedure of the board in hearing appeals it has the authority or | 4347 |
duty to hear, and to the procedure of officers or employees whom | 4348 |
the board may appoint; provided that section 5703.13 of the | 4349 |
Revised Code shall apply to and govern the procedure of the board. | 4350 |
Such rules shall include, but need not be limited to, the | 4351 |
following: | 4352 |
(1) Rules governing the creation and implementation of a | 4353 |
mediation program, including procedures for requesting, requiring | 4354 |
participation in, objecting to, and conducting a mediation; | 4355 |
(2) Rules requiring the tax commissioner, county boards of | 4356 |
revision, and | 4357 |
under section 718.11 of the Revised Code to electronically file | 4358 |
any transcript required to be filed with the board of tax appeals, | 4359 |
and instructions and procedures for the electronic filing of such | 4360 |
transcripts. | 4361 |
(3) Rules establishing procedures to control and manage | 4362 |
appeals filed with the board. The procedures shall include, but | 4363 |
not be limited to, the establishment of a case management schedule | 4364 |
that shall include expected dates related to discovery deadlines, | 4365 |
disclosure of evidence, pre-hearing motions, and the hearing, and | 4366 |
other case management issues considered appropriate. | 4367 |
Section 4. That the existing version of section 5703.02 of | 4368 |
the Revised Code that is scheduled to take effect January 1, 2015, | 4369 |
is hereby repealed. | 4370 |
Section 5. Sections 3 and 4 of this act take effect on | 4371 |
January 1, 2015. | 4372 |
Section 6. This act applies to municipal taxable years | 4373 |
beginning on or after January 1, 2015. For municipal taxable years | 4374 |
beginning before January 1, 2015, tax administrators may continue | 4375 |
to administer, audit, and enforce the income tax of a municipal | 4376 |
corporation under Chapter 718. and ordinances and resolutions of | 4377 |
the municipal corporation as that chapter and those ordinances and | 4378 |
resolutions existed before January 1, 2015. | 4379 |
Section 7. (A) There is hereby created the Municipal Income | 4380 |
Tax Net Operating Loss Review Committee for the purpose of | 4381 |
evaluating and quantifying the potential fiscal impact to | 4382 |
municipal corporations levying an income tax requiring such | 4383 |
municipal corporations to allow taxpayers to carry forward net | 4384 |
operating losses for five years. The Committee is a public body | 4385 |
for the purposes of section 121.22 of the Revised Code. | 4386 |
(B) The Committee shall be composed of the following members: | 4387 |
(1) Two members of the House of Representatives who are not | 4388 |
of the same political party, appointed by the Speaker of the House | 4389 |
of Representatives; | 4390 |
(2) Two members of the Senate who are not of the same | 4391 |
political party, appointed by the President of the Senate; | 4392 |
(3) Three members representing municipal income taxpayers, | 4393 |
appointed by the Speaker of the House of Representatives; | 4394 |
(4) Three members representing municipal corporations that | 4395 |
levy an income tax in calendar year 2015, appointed by the | 4396 |
President of the Senate; | 4397 |
(5) One member appointed by the Governor, who shall serve as | 4398 |
the chairperson of the Committee. | 4399 |
The appointing authorities shall appoint members of the | 4400 |
Committee not later than March 1, 2014. An appointed member shall | 4401 |
serve until the member resigns or is removed by the member's | 4402 |
appointing authority. Vacancies shall be filled in the same manner | 4403 |
as original appointments. A vacancy on the committee does not | 4404 |
impair the right of the other members to exercise all the | 4405 |
functions of the Committee. | 4406 |
The Committee shall meet for the first time on or before | 4407 |
March 1, 2014. Thereafter, the Committee shall meet at the call of | 4408 |
the chairperson. The presence of a majority of the members of the | 4409 |
Committee constitutes a quorum for the conduct of business of the | 4410 |
Committee. The concurrence of at least a majority of the members | 4411 |
of the Committee is necessary to approve the report issued by the | 4412 |
Committee under division (E) of this section. Members of the | 4413 |
Committee shall not be compensated or reimbursed for members' | 4414 |
expenses. | 4415 |
(C) On or before July 1, 2014, the Committee shall prescribe | 4416 |
a method that municipal corporations shall use to estimate the | 4417 |
difference between the municipal corporation's actual or projected | 4418 |
municipal income tax revenue in 2012, 2013, 2014, 2015, 2016, | 4419 |
2017, and 2018 and the actual or projected municipal income tax | 4420 |
revenue that would have resulted in each of those years if the | 4421 |
municipal corporation allowed net operating loss to be carried | 4422 |
forward for five years for losses incurred in 2011, 2012, and | 4423 |
2013. | 4424 |
(D) On or before December 31, 2014, each municipal | 4425 |
corporation that levies an income tax in 2011, 2012, or 2013 shall | 4426 |
report to the Municipal Income Tax Net Operating Loss Review | 4427 |
Committee the difference between the municipal corporation's | 4428 |
actual or projected municipal income tax revenue in 2012, 2013, | 4429 |
2014, 2015, 2016, 2017, and 2018 and the actual or projected | 4430 |
municipal income tax revenue that would have resulted in each of | 4431 |
those years if the municipal corporation allowed net operating | 4432 |
loss to be carried forward for five years for losses incurred in | 4433 |
2011, 2012, and 2013, as estimated by the method prescribed by the | 4434 |
Committee under division (C) of this section. | 4435 |
(E) If the Municipal Income Tax Net Operating Loss Review | 4436 |
Committee receives reports from a representative sample, then the | 4437 |
Committee shall review the information reported by municipal | 4438 |
corporations under division (D) of this section and calculate the | 4439 |
total of the revenue effects reported by such municipal | 4440 |
corporations. On or before May 1, 2015, the Committee shall issue | 4441 |
a written report to the Speaker and Minority Leader of the House | 4442 |
of Representatives and the President and Minority Leader of the | 4443 |
Senate reporting the Committee's findings and estimated revenue | 4444 |
impact of requiring municipal corporations levying an income tax | 4445 |
to allow net operating loss to be carried forward for five years. | 4446 |
The report shall contain recommendations to address revenue | 4447 |
shortfalls, which may include, but which shall not be limited to, | 4448 |
the use of supplemental funds from the Local Government Fund to | 4449 |
mitigate those shortfalls. | 4450 |
(F) Nothing in this section delays or otherwise affects the | 4451 |
taxable years to which division (E)(8) of section 718.01 of the | 4452 |
Revised Code, as enacted by this act, apply as prescribed in that | 4453 |
division. | 4454 |
(G) The Municipal Income Tax Net Operating Loss Review | 4455 |
Committee shall cease to exist on May 1, 2015. | 4456 |
(H) As used in this section, "representative sample" includes | 4457 |
the cities of Cleveland and Columbus, five cities or villages with | 4458 |
a higher ratio of business taxpayers to resident individual | 4459 |
taxpayers relative to the state average, and five cities or | 4460 |
villages with a higher ratio of resident individual taxpayers to | 4461 |
business taxpayers relative to the state average. | 4462 |