Bill Title: To allow a credit against the personal income tax for amounts spent by teachers for instructional materials.
Spectrum: Moderate Partisan Bill (Republican 8-2)
Status: (Introduced - Dead) 2009-02-10 - To Ways & Means & Economic Development
[SB40 Detail]Download: Ohio-2009-SB40-Introduced.html
As Introduced
128th General Assembly | Regular Session | 2009-2010 |
| |
Cosponsors:
Senators Wagoner, Gibbs, Grendell, Roberts, Turner, Hughes, Coughlin, Schuring, Stewart
A BILL
| To amend sections 5747.08 and 5747.98 and to enact | 1 |
|
section 5747.71 of the Revised Code to allow a | 2 |
|
credit against the personal income tax for amounts | 3 |
|
spent by teachers for instructional
materials. | 4 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5747.08 and 5747.98 be amended and | 5 |
section 5747.71 of the Revised Code be enacted to read as follows: | 6 |
Sec. 5747.08. An annual return with respect to the tax | 7 |
imposed by section 5747.02 of the Revised Code and each tax | 8 |
imposed under Chapter 5748. of the Revised Code shall be made by | 9 |
every taxpayer for any taxable year for which the taxpayer is | 10 |
liable for the tax imposed by that section or under that chapter, | 11 |
unless the total credits allowed under divisions (E), (F), and
(G) | 12 |
of section 5747.05 of the Revised Code for the year are equal
to | 13 |
or exceed the tax imposed by section 5747.02 of the Revised
Code, | 14 |
in which case no return shall be required unless the
taxpayer is | 15 |
liable for a tax imposed pursuant to Chapter 5748. of
the Revised | 16 |
Code. | 17 |
(A) If an individual is deceased, any return or notice | 18 |
required of that individual under this chapter shall be made and | 19 |
filed by that decedent's executor, administrator, or other
person | 20 |
charged with the property of that decedent. | 21 |
(B) If an individual is unable to make a return or notice | 22 |
required by this chapter, the return or notice required of that | 23 |
individual
shall be made and filed by the individual's duly | 24 |
authorized agent,
guardian, conservator, fiduciary, or other | 25 |
person charged with
the care of the person or property of that | 26 |
individual. | 27 |
(C) Returns or notices required of an estate or a trust
shall | 28 |
be made and filed by the fiduciary of the estate or trust. | 29 |
(D)(1)(a) Except as otherwise provided in
division (D)(1)(b) | 30 |
of this section, any
pass-through entity
may file a single return | 31 |
on behalf of
one or more of the entity's investors other than an | 32 |
investor that is a
person subject
to the tax imposed under section | 33 |
5733.06 of the Revised Code. The single
return shall set forth
the | 34 |
name, address, and social security number
or other identifying | 35 |
number of each
of those
pass-through entity investors
and shall | 36 |
indicate the distributive
share of each of those
pass-through | 37 |
entity investor's income
taxable in this state
in accordance with | 38 |
sections 5747.20 to
5747.231 of the
Revised
Code. Such | 39 |
pass-through entity investors
for whom the pass-through entity | 40 |
elects to file a single return
are not entitled to the exemption | 41 |
or credit provided for by
sections 5747.02 and 5747.022 of the | 42 |
Revised
Code; shall calculate
the tax
before business credits at | 43 |
the highest rate of tax set
forth in
section 5747.02 of the | 44 |
Revised
Code for the taxable year
for
which the return is filed; | 45 |
and are entitled to only their
distributive share of the business | 46 |
credits as defined in
division
(D)(2) of this
section. A single | 47 |
check drawn by the pass-through
entity shall
accompany
the return | 48 |
in full payment of the tax due, as shown on the single return,
for | 49 |
such investors, other than investors who are persons
subject to | 50 |
the tax imposed under section 5733.06 of the
Revised Code. | 51 |
(b)(i) A pass-through entity shall not
include in such a | 52 |
single return any investor that is a trust to
the extent that any | 53 |
direct or indirect current, future, or
contingent beneficiary of | 54 |
the trust is a person subject to the
tax imposed under section | 55 |
5733.06 of the
Revised Code. | 56 |
(ii) A pass-through entity shall
not include in such a
single | 57 |
return any investor that is itself
a pass-through entity to
the | 58 |
extent that any direct or indirect
investor in the second | 59 |
pass-through entity is a person subject
to the tax imposed under | 60 |
section 5733.06 of the
Revised Code. | 61 |
(c) Nothing in division
(D) of this section precludes
the
tax | 62 |
commissioner from requiring such investors to file the
return
and | 63 |
make the payment of taxes and related interest,
penalty, and | 64 |
interest penalty required by this section or
section 5747.02, | 65 |
5747.09, or 5747.15 of the
Revised Code. Nothing in division
(D) | 66 |
of this section shall be
construed to provide to such an investor | 67 |
or pass-through entity
any additional deduction or credit, other | 68 |
than the credit
provided by division (J) of
this section, solely | 69 |
on account of the entity's filing a return
in accordance with this | 70 |
section. Such a pass-through entity also
shall make the filing
and | 71 |
payment of estimated taxes on behalf of the pass-through
entity | 72 |
investors other than an
investor that is a person subject
to the | 73 |
tax imposed under section 5733.06
of the Revised Code. | 74 |
(2) For the purposes of
this section,
"business credits" | 75 |
means the credits
listed in section 5747.98 of the
Revised
Code | 76 |
excluding the following
credits: | 77 |
(a) The retirement credit under division (B) of section | 78 |
5747.055 of
the Revised Code; | 79 |
(b) The senior citizen credit under
division (C) of section | 80 |
5747.05 of the Revised Code; | 81 |
(c) The lump sum distribution credit
under division (D) of | 82 |
section
5747.05 of the Revised
Code; | 83 |
(d) The dependent care credit under
section 5747.054 of the | 84 |
Revised
Code; | 85 |
(e) The lump sum retirement income
credit under division (C) | 86 |
of
section 5747.055 of the Revised
Code; | 87 |
(f) The lump sum retirement income
credit under division (D) | 88 |
of
section 5747.055 of the Revised
Code; | 89 |
(g) The lump sum retirement income
credit under division (E) | 90 |
of
section 5747.055 of the Revised
Code; | 91 |
(h) The credit for displaced workers
who pay for job
training | 92 |
under section 5747.27 of the
Revised
Code; | 93 |
(i) The twenty-dollar personal
exemption credit under
section | 94 |
5747.022 of the
Revised
Code; | 95 |
(j) The joint filing credit under
division (G) of section | 96 |
5747.05
of the Revised
Code; | 97 |
(k) The nonresident credit under
division (A) of section | 98 |
5747.05
of the Revised
Code; | 99 |
(l) The credit for a resident's
out-of-state income under | 100 |
division
(B) of section 5747.05 of the
Revised
Code; | 101 |
(m) The low-income credit under section 5747.056 of the | 102 |
Revised Code; | 103 |
(n) The credit for instructional material under section | 104 |
5747.71 of the Revised Code. | 105 |
(3) The election provided for under division
(D) of this | 106 |
section applies
only to the taxable year for which the election is | 107 |
made by the
pass-through entity. Unless the tax commissioner | 108 |
provides
otherwise, this election, once made, is binding and | 109 |
irrevocable
for the taxable year for which the election is made. | 110 |
Nothing in
this division shall be construed to provide for any | 111 |
deduction or
credit that would not be allowable if a nonresident | 112 |
pass-through
entity investor were to file an annual return. | 113 |
(4) If a pass-through entity makes the election provided
for | 114 |
under division (D) of this
section, the pass-through entity shall | 115 |
be liable for any
additional taxes, interest, interest penalty, or | 116 |
penalties imposed by this
chapter
if the tax
commissioner
finds | 117 |
that
the single return does
not reflect the
correct tax
due by
the | 118 |
pass-through
entity investors
covered by that
return. Nothing in | 119 |
this
division shall be
construed to limit or
alter the liability, | 120 |
if
any, imposed on
pass-through entity
investors for unpaid or | 121 |
underpaid taxes,
interest, interest
penalty, or penalties as a | 122 |
result of the
pass-through entity's
making the election provided | 123 |
for under
division (D) of this
section.
For the purposes of | 124 |
division
(D) of
this section,
"correct tax due" means the tax that | 125 |
would have been
paid by the
pass-through entity had the single | 126 |
return been filed
in a manner
reflecting
the tax
commissioner's | 127 |
findings. Nothing
in
division (D) of this section
shall be | 128 |
construed to make or hold
a
pass-through entity liable
for tax | 129 |
attributable to a
pass-through
entity investor's
income
from a | 130 |
source other than the
pass-through
entity electing
to file
the | 131 |
single return. | 132 |
(E) If a husband and wife file a joint federal income tax | 133 |
return for a taxable year, they shall file a joint return under | 134 |
this section for that taxable year, and their liabilities are | 135 |
joint and several, but, if the federal income tax liability of | 136 |
either spouse is determined on a separate federal income tax | 137 |
return, they shall file separate returns under this section. | 138 |
If either spouse is not required to file a federal income
tax | 139 |
return and either or both are required to file a return
pursuant | 140 |
to this chapter, they may elect to file separate or
joint returns, | 141 |
and, pursuant to that election, their liabilities are
separate or | 142 |
joint and several. If a husband and wife file
separate returns | 143 |
pursuant to this chapter, each must claim the taxpayer's
own | 144 |
exemption, but not both, as authorized under
section
5747.02 of | 145 |
the Revised Code on the taxpayer's own
return. | 146 |
(F) Each return or notice required to be filed under this | 147 |
section shall contain the signature of the taxpayer
or the | 148 |
taxpayer's duly authorized
agent and of the person who prepared | 149 |
the return for the
taxpayer, and shall include the taxpayer's | 150 |
social security
number. Each return shall be verified by a | 151 |
declaration
under the penalties of perjury. The tax commissioner | 152 |
shall prescribe the
form that the signature and declaration shall | 153 |
take. | 154 |
(G) Each return or notice required to be filed under this | 155 |
section shall be made and filed as required by section 5747.04 of | 156 |
the Revised Code, on or before the fifteenth day of April of each | 157 |
year, on forms that the tax commissioner shall prescribe,
together | 158 |
with remittance made payable to the treasurer of state
in the | 159 |
combined amount of the state and all school district
income taxes | 160 |
shown to be due on the form, unless the combined amount
shown to | 161 |
be due is one dollar or less, in which case that amount
need not | 162 |
be remitted. | 163 |
Upon good cause shown, the tax commissioner may extend the | 164 |
period
for filing any notice or return required to be filed under | 165 |
this
section and may adopt rules relating to extensions. If the | 166 |
extension results in an extension of time for the payment of any | 167 |
state or school district income tax liability with respect to | 168 |
which the return is filed, the taxpayer shall pay at the time the | 169 |
tax liability is paid an amount of interest computed at the rate | 170 |
per annum prescribed by section 5703.47 of the Revised Code on | 171 |
that liability from the time that payment is due without
extension | 172 |
to the time of actual payment. Except as
provided in section | 173 |
5747.132 of the Revised Code, in
addition to all
other interest | 174 |
charges and penalties, all taxes imposed under this chapter
or | 175 |
Chapter 5748. of the
Revised
Code and remaining
unpaid after they | 176 |
become due, except combined amounts due of one
dollar or less, | 177 |
bear interest at the rate per annum prescribed by
section 5703.47 | 178 |
of the Revised Code until paid or until the day an
assessment is | 179 |
issued under section 5747.13 of the Revised Code, whichever
occurs | 180 |
first. | 181 |
If the tax commissioner
considers it necessary in order to | 182 |
ensure
the payment of the tax imposed by
section 5747.02 of the | 183 |
Revised
Code or any tax imposed under
Chapter 5748. of the Revised | 184 |
Code,
the tax commissioner may require
returns and payments to be | 185 |
made
otherwise than as provided in
this section. | 186 |
To the extent that any provision in this division conflicts | 187 |
with any provision in section 5747.026 of the Revised Code, the | 188 |
provision in that section prevails. | 189 |
(H) If any report, claim, statement, or other document | 190 |
required to be filed, or any payment required to be made, within
a | 191 |
prescribed period or on or before a prescribed date under this | 192 |
chapter is delivered after that period or that date by United | 193 |
States mail to the agency, officer, or office with which the | 194 |
report, claim,
statement, or other document is required to be | 195 |
filed, or to which the payment is required to be made, the date
of | 196 |
the postmark stamped on the cover in which the report, claim, | 197 |
statement, or other document, or payment is mailed shall be
deemed | 198 |
to be the date of delivery or the date of payment. | 199 |
If a payment is required to be made by electronic funds | 200 |
transfer pursuant to section 5747.072 of the Revised Code, the | 201 |
payment is considered to be made when the payment is received by | 202 |
the treasurer of state or credited to an account designated by
the | 203 |
treasurer of state for the receipt of tax payments. | 204 |
"The date of the postmark" means, in the event there
is more | 205 |
than one date on the cover, the earliest date imprinted
on the | 206 |
cover by the United States postal service. | 207 |
(I) The amounts withheld by the employer pursuant to
section | 208 |
5747.06 of the Revised Code shall be allowed to the
recipient of | 209 |
the compensation as credits against payment of the
appropriate | 210 |
taxes imposed on the recipient by section
5747.02 and under | 211 |
Chapter 5748. of the Revised Code. | 212 |
(J) If, in accordance
with division (D) of this
section, a | 213 |
pass-through entity elects to file a single return
and if any | 214 |
investor is required to file the return and make the
payment of | 215 |
taxes required by this chapter on account of the
investor's other | 216 |
income that is not included in a single return
filed by a | 217 |
pass-through entity, the investor is entitled to a
refundable | 218 |
credit equal to the investor's proportionate share of
the tax paid | 219 |
by the pass-through entity on behalf of the
investor. The
investor | 220 |
shall claim the credit for the
investor's taxable year in
which or | 221 |
with which ends the taxable
year of the pass-through
entity. | 222 |
Nothing in this chapter shall
be construed to allow any
credit | 223 |
provided in this chapter to be
claimed more than once. For
the | 224 |
purposes of computing any
interest, penalty, or interest
penalty, | 225 |
the investor shall be
deemed to have paid the refundable
credit | 226 |
provided by this
division on the day that the pass-through
entity | 227 |
paid the
estimated tax or the tax giving rise to the
credit. | 228 |
(K) The tax commissioner shall ensure that each return | 229 |
required to be filed under this section includes a box that the | 230 |
taxpayer may check to authorize a paid tax preparer who prepared | 231 |
the return to communicate with the department of taxation about | 232 |
matters pertaining to the return. The return or instructions | 233 |
accompanying the return shall indicate that by checking the box | 234 |
the taxpayer authorizes the department of taxation to contact the | 235 |
preparer concerning questions that arise during the processing of | 236 |
the return and authorizes the preparer only to provide the | 237 |
department with information that is missing from the return, to | 238 |
contact the department for information about the processing of the | 239 |
return or the status of the taxpayer's refund or payments, and to | 240 |
respond to notices about mathematical errors, offsets, or return | 241 |
preparation that the taxpayer has received from the department and | 242 |
has shown to the preparer. | 243 |
Sec. 5747.71. (A) As used in this section: | 244 |
(1) "Instructional material" means material used by a
teacher | 245 |
for general classroom instruction, even though the material may be | 246 |
used from time to time by individual students or groups of | 247 |
students. "Instructional material" does not include items given to | 248 |
or used solely by
an individual student, unless the student | 249 |
receives instruction at home pursuant to an excuse from school | 250 |
attendance under division (A)(2) of section 3321.04 of the Revised | 251 |
Code and rules prescribed by the state board of education and the | 252 |
student is the only student in the classroom receiving such | 253 |
instruction by the teacher. | 254 |
(2) "Teacher" means a classroom teacher in grades | 255 |
kindergarten through twelve who holds an educator license under | 256 |
Chapter 3319. of the Revised Code, or a person who instructs a | 257 |
child at home and who is qualified to do so for the purposes of | 258 |
division (A)(2) of section 3321.04 of the Revised Code and rules | 259 |
prescribed by the state board of education. | 260 |
(3) "Classroom" includes the place in which a child receives | 261 |
instruction at home pursuant to an excuse from school attendance | 262 |
under division (A)(2) of section 3321.04 of the Revised Code and | 263 |
rules prescribed by the state board of education. | 264 |
(B) There is hereby allowed a nonrefundable credit against | 265 |
the tax imposed by section 5747.02 of the Revised Code for amounts | 266 |
spent by a teacher during the teacher's taxable year on | 267 |
instructional
material used in the teacher's classroom. The amount | 268 |
of the
credit
shall not exceed one hundred dollars. The credit | 269 |
shall be claimed
in the order required under section 5747.98 of | 270 |
the Revised Code. | 271 |
Sec. 5747.98. (A) To provide a uniform procedure for | 272 |
calculating the amount of tax due under section 5747.02 of the | 273 |
Revised Code, a taxpayer shall claim any credits to which the | 274 |
taxpayer is
entitled in the following order: | 275 |
(1) The retirement income credit under division (B) of | 276 |
section 5747.055 of the Revised Code; | 277 |
(2) The senior citizen credit under division (C) of
section | 278 |
5747.05 of the Revised Code; | 279 |
(3) The lump sum distribution credit under division (D) of | 280 |
section 5747.05 of the Revised Code; | 281 |
(4) The dependent care credit under section 5747.054 of
the | 282 |
Revised Code; | 283 |
(5) The lump sum retirement income credit under division
(C) | 284 |
of section 5747.055 of the Revised Code; | 285 |
(6) The lump sum retirement income credit under division
(D) | 286 |
of section 5747.055 of the Revised Code; | 287 |
(7) The lump sum retirement income credit under division
(E) | 288 |
of section 5747.055 of the Revised Code; | 289 |
(8) The low-income credit under section 5747.056 of the | 290 |
Revised Code; | 291 |
(9) The credit for displaced workers who pay for job
training | 292 |
under section 5747.27 of the Revised Code; | 293 |
(10) The campaign contribution credit under section
5747.29 | 294 |
of
the Revised Code; | 295 |
(11) The twenty-dollar personal exemption credit under | 296 |
section 5747.022 of the Revised Code; | 297 |
(12) The joint filing credit under division (G) of
section | 298 |
5747.05 of the Revised Code; | 299 |
(13) The nonresident credit under division (A) of
section | 300 |
5747.05 of the Revised Code; | 301 |
(14) The credit for a resident's out-of-state income
under | 302 |
division (B) of section 5747.05 of the Revised Code; | 303 |
(15) The credit for employers that enter
into agreements
with | 304 |
child day-care centers under section 5747.34 of the
Revised
Code; | 305 |
(16) The credit for employers that reimburse employee
child
| 306 |
care expenses under section 5747.36 of the Revised Code; | 307 |
(17) The credit for instructional material under section | 308 |
5747.71 of the Revised Code; | 309 |
(18) The credit for adoption of a minor child under section | 310 |
5747.37 of the Revised Code; | 311 |
(18)(19) The credit for purchases of lights and reflectors | 312 |
under
section
5747.38 of the Revised Code; | 313 |
(19)(20)
The job retention credit under division (B) of | 314 |
section
5747.058 of the Revised Code; | 315 |
(20)(21) The credit for
selling alternative fuel under | 316 |
section
5747.77 of the
Revised
Code; | 317 |
(21)(22) The second credit for purchases of new
manufacturing | 318 |
machinery and
equipment and the credit for using
Ohio coal under | 319 |
section 5747.31 of the
Revised Code; | 320 |
(22)(23) The job training credit under section 5747.39 of
the | 321 |
Revised Code; | 322 |
(23)(24) The enterprise zone credit under section 5709.66 of | 323 |
the
Revised Code; | 324 |
(24)(25) The credit for the eligible costs associated with a | 325 |
voluntary action
under section 5747.32 of the Revised Code; | 326 |
(25)(26) The credit
for employers that establish on-site | 327 |
child
day-care centers under section
5747.35 of the Revised Code; | 328 |
(26)(27)
The ethanol plant investment credit under section | 329 |
5747.75 of the Revised Code; | 330 |
(27)(28) The credit for purchases of qualifying grape | 331 |
production
property under section 5747.28 of the Revised Code; | 332 |
(28)(29) The export sales credit under section 5747.057 of | 333 |
the
Revised Code; | 334 |
(29)(30) The credit for research and development and | 335 |
technology
transfer investors under section 5747.33 of the Revised | 336 |
Code; | 337 |
(30)(31)
The enterprise zone credits under
section 5709.65
of | 338 |
the
Revised Code; | 339 |
(31)(32) The research and development credit under section | 340 |
5747.331 of the Revised Code; | 341 |
(32)(33) The credit for rehabilitating a historic building | 342 |
under
section 5747.76 of the Revised Code; | 343 |
(33)(34) The refundable credit for rehabilitating a historic | 344 |
building under section 5747.76 of the Revised Code; | 345 |
(34)(35) The refundable jobs creation credit
under
division | 346 |
(A)
of section
5747.058 of the Revised Code; | 347 |
(35)(36) The refundable credit for taxes paid by a
qualifying | 348 |
entity granted under section 5747.059 of the Revised
Code; | 349 |
(36)(37) The refundable credits for taxes paid by a | 350 |
qualifying
pass-through
entity granted under division (J) of | 351 |
section 5747.08
of the Revised Code; | 352 |
(37)(38) The refundable credit for tax withheld under | 353 |
division
(B)(1) of section 5747.062 of the Revised Code; | 354 |
(38)(39) The refundable credit under section 5747.80 of the | 355 |
Revised Code for losses on loans made to the Ohio venture
capital | 356 |
program under sections 150.01 to 150.10 of the Revised
Code. | 357 |
(B) For any credit, except the refundable credits enumerated | 358 |
in
divisions (A)(33) to (38) of
this
section
and
the
credit | 359 |
granted
under division
(I) of
section
5747.08 of
the
Revised | 360 |
Code, the
amount of the credit
for
a
taxable year
shall
not | 361 |
exceed the tax
due after allowing for any
other credit
that | 362 |
precedes it in the
order required under this
section. Any
excess | 363 |
amount of a
particular credit may be carried
forward if | 364 |
authorized
under the
section creating that credit.
Nothing in | 365 |
this
chapter
shall be
construed to allow a taxpayer to
claim, | 366 |
directly
or
indirectly, a
credit more than once for a
taxable | 367 |
year. | 368 |
Section 2. That existing sections 5747.08 and 5747.98 of the | 369 |
Revised Code are hereby repealed. | 370 |
Section 3. That the amendment of sections 5747.08 and 5747.98 | 371 |
and the enactment of section 5747.71 of the Revised Code apply to | 372 |
taxable
years beginning on or after January
1, 2009. | 373 |