Bill Title: To increase the maximum income tax deduction for college savings contributions to $10,000 annually for each beneficiary, to create the Joint Committee on Ohio College Affordability, and to declare an emergency.
Spectrum: Strong Partisan Bill (Republican 13-1)
Status: (Introduced - Dead) 2013-11-20 - To Ways & Means
[SB244 Detail]Download: Ohio-2013-SB244-Introduced.html
As Introduced
| 130th General Assembly | | Regular Session | | 2013-2014 |
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Cosponsors:
Senators Brown, Lehner, Manning, Patton, Hughes, Uecker, Beagle, Hite, Widener, Bacon, Obhof, LaRose
A BILL
| To amend section 5747.70 of the Revised Code to | 1 |
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increase the maximum income tax deduction for | 2 |
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college savings contributions to $10,000 annually | 3 |
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for each beneficiary, to create the Joint | 4 |
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Committee on Ohio College Affordability, and to | 5 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
| Section 1. That section 5747.70 of the Revised Code be | 7 |
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amended to read as follows: | 8 |
| Sec. 5747.70. (A) In computing Ohio adjusted gross income, a | 9 |
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deduction from federal adjusted gross income is allowed to a | 10 |
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contributor for the amount contributed during the taxable year to | 11 |
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a variable college savings program account and to a purchaser of | 12 |
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tuition units under the Ohio college savings program created by | 13 |
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Chapter 3334. of the Revised Code to the extent that the amounts | 14 |
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of such contributions and purchases were not deducted in | 15 |
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determining the contributor's or purchaser's federal adjusted | 16 |
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gross income for the taxable year. The combined amount of | 17 |
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contributions and purchases deducted in any taxable year by a | 18 |
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taxpayer or the taxpayer and the taxpayer's spouse, regardless of | 19 |
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whether the taxpayer and the taxpayer's spouse file separate | 20 |
returns or a joint return, is limited to twoten thousand dollars | 21 |
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for each beneficiary for whom contributions or purchases are made. | 22 |
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If the combined annual contributions and purchases for a | 23 |
beneficiary exceed twoten thousand dollars, the excess may be | 24 |
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carried forward and deducted in future taxable years until the | 25 |
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contributions and purchases have been fully deducted. | 26 |
| (B) In computing Ohio adjusted gross income, a deduction from | 27 |
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federal adjusted gross income is allowed for: | 28 |
| (1) Income related to tuition units and contributions that as | 29 |
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of the end of the taxable year have not been refunded pursuant to | 30 |
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the termination of a tuition payment contract or variable college | 31 |
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savings program account under section 3334.10 of the Revised Code, | 32 |
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to the extent that such income is included in federal adjusted | 33 |
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gross income. | 34 |
| (2) The excess of the total purchase price of tuition units | 35 |
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refunded during the taxable year pursuant to the termination of a | 36 |
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tuition payment contract under section 3334.10 of the Revised Code | 37 |
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over the amount of the refund, to the extent the amount of the | 38 |
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excess was not deducted in determining federal adjusted gross | 39 |
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income. Division (B)(2) of this section applies only to units for | 40 |
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which no deduction was allowable under division (A) of this | 41 |
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section. | 42 |
| (C) In computing Ohio adjusted gross income, there shall be | 43 |
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added to federal adjusted gross income the amount of loss related | 44 |
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to tuition units and contributions that as of the end of the | 45 |
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taxable year have not been refunded pursuant to the termination of | 46 |
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a tuition payment contract or variable college savings program | 47 |
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account under section 3334.10 of the Revised Code, to the extent | 48 |
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that such loss was deducted in determining federal adjusted gross | 49 |
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income. | 50 |
| (D) For taxable years in which distributions or refunds are | 51 |
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made under a tuition payment or variable college savings program | 52 |
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contract for any reason other than payment of tuition or other | 53 |
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higher education expenses, or the beneficiary's death, disability, | 54 |
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or receipt of a scholarship as described in section 3334.10 of the | 55 |
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Revised Code: | 56 |
| (1) If the distribution or refund is paid to the purchaser or | 57 |
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contributor or beneficiary, any portion of the distribution or | 58 |
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refund not included in the recipient's federal adjusted gross | 59 |
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income shall be added to the recipient's federal adjusted gross | 60 |
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income in determining the recipient's Ohio adjusted gross income, | 61 |
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except that the amount added shall not exceed amounts previously | 62 |
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deducted under division (A) of this section less any amounts added | 63 |
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under division (D)(1) of this section in a prior taxable year. | 64 |
| (2) If amounts paid by a purchaser or contributor on or after | 65 |
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January 1, 2000, are distributed or refunded to someone other than | 66 |
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the purchaser or contributor or beneficiary, the amount of the | 67 |
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payment not included in the recipient's federal adjusted gross | 68 |
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income, less any amounts added under division (D) of this section | 69 |
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in a prior taxable year, shall be added to the recipient's federal | 70 |
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adjusted gross income in determining the recipient's Ohio adjusted | 71 |
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gross income. | 72 |
| Section 2. That existing section 5747.70 of the Revised Code | 73 |
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is hereby repealed. | 74 |
| Section 3. (A) There is hereby created the Joint Committee on | 75 |
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Ohio College Affordability composed of the following members: | 76 |
| (1) Five members of the Senate, appointed by the President of | 77 |
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the Senate, not more than three of whom may be members of the same | 78 |
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political party; | 79 |
| (2) Five members of the House of Representatives, appointed | 80 |
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by the Speaker of the House of Representatives, not more than | 81 |
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three of whom may be members of the same political party. | 82 |
| (B) The President of the Senate and the Speaker of the House | 83 |
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of Representatives shall appoint the members of the committee | 84 |
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within thirty days after the effective date of this act. The | 85 |
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committee shall hold an initial meeting within sixty days after | 86 |
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the effective date of this act and shall meet thereafter at the | 87 |
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discretion of the committee members. | 88 |
| (C) The committee shall study and develop strategies to | 89 |
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reduce the cost of attending colleges and universities in this | 90 |
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state. As part of this process, the committee shall consult with | 91 |
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the Chancellor of the Ohio Board of Regents and persons or | 92 |
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organizations representing institutions of higher education. | 93 |
| (D) The committee shall compile a report of its activities, | 94 |
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findings, and recommendations and shall furnish a copy of the | 95 |
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report to the Governor, President of the Senate, and Speaker of | 96 |
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the House of Representatives not later than March 31, 2014, at | 97 |
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which time the committee shall dissolve by operation of law. | 98 |
| Section 4. The amendment by this act of section 5747.70 of | 99 |
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the Revised Code applies to taxable years ending on or after the | 100 |
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effective date of this act. | 101 |
| Section 5. This act is hereby declared to be an emergency | 102 |
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measure necessary for the immediate preservation of the public | 103 |
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peace, health, and safety. The reason for such necessity is that | 104 |
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the rising cost of higher education has placed an enormous | 105 |
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financial burden on many individuals and families in this state | 106 |
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and it is imperative to develop solutions for, and provide some | 107 |
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relief from, that burden at the earliest possible time. Therefore, | 108 |
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this act shall go into immediate effect. | 109 |
