Bill Text: OH HB543 | 2009-2010 | 128th General Assembly | Introduced
Bill Title: To allow an individual to have Ohio income taxes withheld from unemployment compensation benefits payable to that individual.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-06-02 - To Ways & Means [HB543 Detail]
Download: Ohio-2009-HB543-Introduced.html
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Representative Domenick
Cosponsors:
Representatives Blair, Chandler, Derickson, Evans, Harris, McGregor, Letson, Stebelton, Weddington, Yuko
| To amend section 5747.98 and to enact sections | 1 |
| 4141.322 and 5747.063 of the Revised Code to allow | 2 |
| an individual to have Ohio income taxes withheld | 3 |
| from unemployment compensation benefits payable to | 4 |
| that individual. | 5 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
| Section 1. That section 5747.98 be amended and sections | 6 |
| 4141.322 and 5747.063 of the Revised Code be enacted to read as | 7 |
| follows: | 8 |
| Sec. 4141.322. (A) The director of job and family services | 9 |
| shall inform an individual who files an application for | 10 |
| determination of benefit rights on and after the effective date of | 11 |
| this section of all of the following at the time the individual | 12 |
| files the application: | 13 |
| (1) Unemployment compensation is subject to the income tax of | 14 |
| this state. | 15 |
| (2) Requirements exist pertaining to estimated tax payments. | 16 |
| (3) An individual may elect to have income tax of this state | 17 |
| deducted and withheld from the unemployment compensation benefits | 18 |
| payable to that individual at a rate of two per cent of the | 19 |
| unemployment benefits payable. | 20 |
| (4) An individual may change the withholding status the | 21 |
| individual has previously elected once during the individual's | 22 |
| benefit year. | 23 |
| (B) The director shall deduct and withhold from unemployment | 24 |
| compensation benefits payable to an individual after the effective | 25 |
| date of this section income tax in the amount of two per cent of | 26 |
| the unemployment benefits payable, if the individual informs the | 27 |
| director that the individual elects to have the director make the | 28 |
| deduction. | 29 |
| (C) In making the deduction specified in division (B) of this | 30 |
| section, the director shall comply with section 5747.063 of the | 31 |
| Revised Code and any rules adopted by the tax commissioner | 32 |
| pursuant to that section. The director shall adopt rules | 33 |
| establishing priorities for the deduction and withholding of | 34 |
| amounts under division (B) of this section and establishing a | 35 |
| procedure by which an individual may inform the director of the | 36 |
| individual's election to have the director make the deduction. | 37 |
| (D) Amounts deducted and withheld pursuant to division (B) of | 38 |
| this section shall remain in the unemployment compensation fund | 39 |
| until transferred to the tax commissioner as a payment of income | 40 |
| tax. | 41 |
| Sec. 5747.063. (A)(1) The director of job and family services | 42 |
| shall deduct and withhold from unemployment compensation benefits | 43 |
| payable to an individual an amount equal to two per cent of the | 44 |
| payment if the individual informs the director that the individual | 45 |
| elects to have the director make the deduction in accordance with | 46 |
| section 4141.322 of the Revised Code. | 47 |
| (2) On or before the tenth banking day of each month, the | 48 |
| director shall file a return and remit to the tax commissioner all | 49 |
| amounts deducted and withheld pursuant to this section during the | 50 |
| preceding month. | 51 |
| (3) On or before the thirty-first day of January of each | 52 |
| year, the director shall file with the tax commissioner an annual | 53 |
| return, in the form prescribed by the commissioner, indicating the | 54 |
| total amount deducted and withheld pursuant to this section or | 55 |
| section 4141.322 of the Revised Code during the preceding calendar | 56 |
| year. At the time of filing that return, the director shall remit | 57 |
| any amount deducted and withheld during the preceding calendar | 58 |
| year that was not previously remitted. | 59 |
| (4) The director shall issue to each individual with respect | 60 |
| to whom tax has been deducted and withheld by the director | 61 |
| pursuant to this section or section 4141.322 of the Revised Code | 62 |
| during the preceding calendar year, an information return in the | 63 |
| form prescribed by the tax commissioner. | 64 |
| (B) Amounts withheld pursuant to this section or section | 65 |
| 4141.322 of the Revised Code shall be treated as a credit against | 66 |
| the tax imposed pursuant to section 5747.02 of the Revised Code | 67 |
| upon the individual to whom the unemployment compensation benefits | 68 |
| are payable on the date on which those amounts are deducted and | 69 |
| withheld. The credit is a refundable credit and shall be claimed | 70 |
| in the order required under section 5747.98 of the Revised Code. | 71 |
| The credit is available to the recipient even if the director does | 72 |
| not remit to the tax commissioner the amount withheld. Nothing in | 73 |
| this division shall be construed to allow more than one person to | 74 |
| claim the credit for any portion of each amount deducted and | 75 |
| withheld. | 76 |
| (C) Failure of the director to deduct and withhold the | 77 |
| required amounts from unemployment compensation benefits or to | 78 |
| remit amounts withheld as required by this section and section | 79 |
| 4141.322 of the Revised Code shall not relieve a taxpayer | 80 |
| described in division (B) of this section from liability for the | 81 |
| tax imposed by section 5747.02 of the Revised Code. | 82 |
| Sec. 5747.98. (A) To provide a uniform procedure for | 83 |
| calculating the amount of tax due under section 5747.02 of the | 84 |
| Revised Code, a taxpayer shall claim any credits to which the | 85 |
| taxpayer is entitled in the following order: | 86 |
| (1) The retirement income credit under division (B) of | 87 |
| section 5747.055 of the Revised Code; | 88 |
| (2) The senior citizen credit under division (C) of section | 89 |
| 5747.05 of the Revised Code; | 90 |
| (3) The lump sum distribution credit under division (D) of | 91 |
| section 5747.05 of the Revised Code; | 92 |
| (4) The dependent care credit under section 5747.054 of the | 93 |
| Revised Code; | 94 |
| (5) The lump sum retirement income credit under division (C) | 95 |
| of section 5747.055 of the Revised Code; | 96 |
| (6) The lump sum retirement income credit under division (D) | 97 |
| of section 5747.055 of the Revised Code; | 98 |
| (7) The lump sum retirement income credit under division (E) | 99 |
| of section 5747.055 of the Revised Code; | 100 |
| (8) The low-income credit under section 5747.056 of the | 101 |
| Revised Code; | 102 |
| (9) The credit for displaced workers who pay for job training | 103 |
| under section 5747.27 of the Revised Code; | 104 |
| (10) The campaign contribution credit under section 5747.29 | 105 |
| of the Revised Code; | 106 |
| (11) The twenty-dollar personal exemption credit under | 107 |
| section 5747.022 of the Revised Code; | 108 |
| (12) The joint filing credit under division (G) of section | 109 |
| 5747.05 of the Revised Code; | 110 |
| (13) The nonresident credit under division (A) of section | 111 |
| 5747.05 of the Revised Code; | 112 |
| (14) The credit for a resident's out-of-state income under | 113 |
| division (B) of section 5747.05 of the Revised Code; | 114 |
| (15) The credit for employers that enter into agreements with | 115 |
| child day-care centers under section 5747.34 of the Revised Code; | 116 |
| (16) The credit for employers that reimburse employee child | 117 |
| care expenses under section 5747.36 of the Revised Code; | 118 |
| (17) The credit for adoption of a minor child under section | 119 |
| 5747.37 of the Revised Code; | 120 |
| (18) The credit for purchases of lights and reflectors under | 121 |
| section 5747.38 of the Revised Code; | 122 |
| (19) The job retention credit under division (B) of section | 123 |
| 5747.058 of the Revised Code; | 124 |
| (20) The credit for selling alternative fuel under section | 125 |
| 5747.77 of the Revised Code; | 126 |
| (21) The second credit for purchases of new manufacturing | 127 |
| machinery and equipment and the credit for using Ohio coal under | 128 |
| section 5747.31 of the Revised Code; | 129 |
| (22) The job training credit under section 5747.39 of the | 130 |
| Revised Code; | 131 |
| (23) The enterprise zone credit under section 5709.66 of the | 132 |
| Revised Code; | 133 |
| (24) The credit for the eligible costs associated with a | 134 |
| voluntary action under section 5747.32 of the Revised Code; | 135 |
| (25) The credit for employers that establish on-site child | 136 |
| day-care centers under section 5747.35 of the Revised Code; | 137 |
| (26) The ethanol plant investment credit under section | 138 |
| 5747.75 of the Revised Code; | 139 |
| (27) The credit for purchases of qualifying grape production | 140 |
| property under section 5747.28 of the Revised Code; | 141 |
| (28) The export sales credit under section 5747.057 of the | 142 |
| Revised Code; | 143 |
| (29) The credit for research and development and technology | 144 |
| transfer investors under section 5747.33 of the Revised Code; | 145 |
| (30) The enterprise zone credits under section 5709.65 of the | 146 |
| Revised Code; | 147 |
| (31) The research and development credit under section | 148 |
| 5747.331 of the Revised Code; | 149 |
| (32) The credit for rehabilitating a historic building under | 150 |
| section 5747.76 of the Revised Code; | 151 |
| (33) The refundable credit for rehabilitating a historic | 152 |
| building under section 5747.76 of the Revised Code; | 153 |
| (34) The refundable jobs creation credit under division (A) | 154 |
| of section 5747.058 of the Revised Code; | 155 |
| (35) The refundable credit for taxes paid by a qualifying | 156 |
| entity granted under section 5747.059 of the Revised Code; | 157 |
| (36) The refundable credits for taxes paid by a qualifying | 158 |
| pass-through entity granted under division (J) of section 5747.08 | 159 |
| of the Revised Code; | 160 |
| (37) The refundable credit for tax withheld under division | 161 |
| (B)(1) of section 5747.062 of the Revised Code; | 162 |
| (38) The refundable credit under section 5747.80 of the | 163 |
| Revised Code for losses on loans made to the Ohio venture capital | 164 |
| program under sections 150.01 to 150.10 of the Revised Code; | 165 |
| (39) The refundable motion picture production credit under | 166 |
| section 5747.66 of the Revised Code; | 167 |
| (40) The refundable credit for tax withheld under division | 168 |
| (B) of section 5747.063 of the Revised Code. | 169 |
| (B) For any credit, except the refundable credits enumerated | 170 |
| in this section and the credit granted under division (I) of | 171 |
| section 5747.08 of the Revised Code, the amount of the credit for | 172 |
| a taxable year shall not exceed the tax due after allowing for any | 173 |
| other credit that precedes it in the order required under this | 174 |
| section. Any excess amount of a particular credit may be carried | 175 |
| forward if authorized under the section creating that credit. | 176 |
| Nothing in this chapter shall be construed to allow a taxpayer to | 177 |
| claim, directly or indirectly, a credit more than once for a | 178 |
| taxable year. | 179 |
| Section 2. That existing section 5747.98 of the Revised Code | 180 |
| is hereby repealed. | 181 |
