As Introduced
136th General Assembly
Regular Session H. B. No. 118
2025-2026
Representatives Demetriou, Thomas, J.
A B I L L
To amend sections 3742.01, 3742.03, 3742.39,
3742.50, 5747.08, 5747.26, 5747.50, 5747.502,
5747.51, 5747.53, and 5747.98 and to enact
sections 3742.47 and 5747.504 of the Revised
Code to revise the law governing lead testing,
certification, and tax credits.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3742.01, 3742.03, 3742.39,
3742.50, 5747.08, 5747.26, 5747.50, 5747.502, 5747.51, 5747.53,
and 5747.98 be amended and sections 3742.47 and 5747.504 of the
Revised Code be enacted to read as follows:
Sec. 3742.01. As used in this chapter:
(A) "Board of health" means the board of health of a city
or general health district or the authority having the duties of
a board of health under section 3709.05 of the Revised Code.
(B) "Child care facility" means each area of any of the
following in which child care, as defined in section 5104.01 of
the Revised Code, is provided to children under six years of
age:
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(1) A child care center, type A family child care home, or
type B family child care home as defined in section 5104.01 of
the Revised Code;
(2) A preschool program or school child program as defined
in section 3301.52 of the Revised Code.
(C) "Clearance examination" means an examination to
determine whether the lead hazards in a residential unit, child
care facility, or school have been sufficiently controlled. A
clearance examination includes a visual assessment, collection,
and analysis of environmental samples.
(D) "Clearance technician" means a person, other than a
licensed lead inspector or licensed lead risk assessor, who
performs a clearance examination.
(E) "Clinical laboratory" means a facility for the
biological, microbiological, serological, chemical,
immunohematological, hematological, biophysical, cytological,
pathological, or other examination of substances derived from
the human body for the purpose of providing information for the
diagnosis, prevention, or treatment of any disease, or in the
assessment or impairment of the health of human beings.
"Clinical laboratory" does not include a facility that only
collects or prepares specimens, or serves as a mailing service,
and does not perform testing.
(F) "Encapsulation" means the coating and sealing of
surfaces with durable surface coating specifically formulated to
be elastic, able to withstand sharp and blunt impacts, long-
lasting, and resilient, while also resistant to cracking,
peeling, algae, fungus, and ultraviolet light, so as to prevent
any part of lead-containing paint from becoming part of house
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dust or otherwise accessible to children.
(G) "Enclosure" means the resurfacing or covering of
surfaces with durable materials such as wallboard or paneling,
and the sealing or caulking of edges and joints, so as to
prevent or control chalking, flaking, peeling, scaling, or loose
lead-containing substances from becoming part of house dust or
otherwise accessible to children.
(H) "Environmental lead analytical laboratory" means a
facility that analyzes air, dust, soil, water, paint, film, or
other substances, other than substances derived from the human
body, for the presence and concentration of lead.
(I) "HEPA" means the designation given to a product,
device, or system that has been equipped with a high-efficiency
particulate air filter, which is a filter capable of removing
particles of 0.3 microns or larger from air at 99.97 per cent or
greater efficiency.
(J) "Interim controls" means a set of measures designed to
reduce temporarily human exposure or likely human exposure to
lead hazards. Interim controls include specialized cleaning,
repairs, painting, temporary containment, ongoing lead hazard
maintenance activities, and the establishment and operation of
management and resident education programs.
(K)(1) "Lead abatement" means a measure or set of measures
designed for the single purpose of permanently eliminating lead
hazards. "Lead abatement" includes all of the following:
(a) Removal of lead-based paint and lead-contaminated
dust;
(b) Permanent enclosure or encapsulation of lead-based
paint;
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(c) Replacement of surfaces or fixtures painted with lead-
based paint;
(d) Removal or permanent covering of lead-contaminated
soil;
(e) Preparation, cleanup, and disposal activities
associated with lead abatement.
(2) "Lead abatement" does not include any of the
following:
(a) Residential rental unit lead-safe maintenance
practices performed pursuant to sections 3742.41 and 3742.42 of
the Revised Code;
(b) Implementation of interim controls;
(c) Activities performed by a property owner on a
residential unit to which both of the following apply:
(i) It is a freestanding single-family home used as the
property owner's private residence.
(ii) No child under six years of age who has lead
poisoning resides in the unit.
(L) "Lead abatement contractor" means any individual who
engages in or intends to engage in lead abatement and employs or
supervises one or more lead abatement workers, including on-site
supervision of lead abatement projects, or prepares
specifications, plans, or documents for a lead abatement
project.
(M) "Lead abatement project" means one or more lead
abatement activities that are conducted by a lead abatement
contractor and are reasonably related to each other.
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(N) "Lead abatement project designer" means a person who
is responsible for designing lead abatement projects and
preparing a pre-abatement plan for all designed projects.
(O) "Lead abatement worker" means an individual who is
responsible in a nonsupervisory capacity for the performance of
lead abatement.
(P) "Lead-based paint" means any paint or other similar
surface-coating substance containing lead at or in excess of the
level that is hazardous to human health, as that level is
established in rules adopted under section 3742.45 of the
Revised Code.
(Q) "Lead-contaminated dust" means dust that contains an
area or mass concentration of lead at or in excess of the level
that is hazardous to human health, as that level is established
in rules adopted under section 3742.45 of the Revised Code.
(R) "Lead-contaminated soil" means soil that contains lead
at or in excess of the level that is hazardous to human health,
as that level is established in rules adopted under section
3742.45 of the Revised Code.
(S) "Lead free" means no lead-based paint is present in
any area referenced in division (B) of section 3742.42 of the
Revised Code.
(T) "Lead hazard" means material that is likely to cause
lead exposure and endanger an individual's health as determined
by the director of health in rules adopted under section 3742.45
of the Revised Code. "Lead hazard" includes lead-based paint,
lead-contaminated dust, lead-contaminated soil, and lead-
contaminated water pipes.
(U) "Lead inspection" means a surface-by-surface
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investigation to determine the presence of lead-based paint. The
inspection shall use a sampling or testing technique approved by
the director in rules adopted under section 3742.03 of the
Revised Code. A licensed lead inspector or laboratory approved
under section 3742.09 of the Revised Code shall certify in
writing the precise results of the inspection.
(V) "Lead inspector" means any individual who conducts a
lead inspection, provides professional advice regarding a lead
inspection, or prepares a report explaining the results of a
lead inspection.
(W) "Lead poisoning" means the level of lead in human
blood that is hazardous to human health, as specified in rules
adopted under section 3742.45 of the Revised Code.
(X) "Lead risk assessment" means an on-site investigation
to determine and report the existence, nature, severity, and
location of lead hazards in a residential unit, child care
facility, or school, including information gathering from the
unit, facility, or school's current owner's knowledge regarding
the age and painting history of the unit, facility, or school
and occupancy by children under six years of age, visual
inspection, limited wipe sampling or other environmental
sampling techniques, and any other activity as may be
appropriate.
(Y) "Lead risk assessor" means a person who is responsible
for developing a written inspection, risk assessment, and
analysis plan; conducting inspections for lead hazards in a
residential unit, child care facility, or school; interpreting
results of inspections and risk assessments; identifying hazard
control strategies to reduce or eliminate lead exposures; and
completing a risk assessment report.
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(Z) "Lead-safe residential rental unit" means a
residential rental unit that has undergone the residential
rental unit lead-safe maintenance practices described in section
3742.42 of the Revised Code, including post-maintenance dust
sampling or are registered pursuant to division (D) of section
3742.41 of the Revised Code.
(AA) "Manager" means a person, who may be the same person
as the owner, responsible for the daily operation of a
residential unit, child care facility, or school.
(BB) "Permanent" means an expected design life of at least
twenty years.
(CC) "Pre-cleaning" means cleaning techniques conducted
pursuant to regulations or guidelines established by the United
States department of housing and urban development to capture
and eliminate lead contaminants prior to testing for possible
lead contamination at a residential unit, child care facility,
or school. "Pre-cleaning" includes wet wiping, mopping, or
vacuuming.
(DD) "Replacement" means an activity that entails removing
components such as windows, doors, and trim that have lead
hazards on their surfaces and installing components free of lead
hazards.
(DD) (EE) "Residential unit" means a dwelling or any part
of a building being used as an individual's private residence.
"Residential unit" includes a residential rental unit.
(EE) (FF) "Residential rental unit" means a rental
property containing a dwelling or any part of a building being
used as an individual's private residence.
(FF) (GG) "School" means a public or nonpublic school in
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which children under six years of age receive education.
Sec. 3742.03. The director of health shall adopt rules in
accordance with Chapter 119. of the Revised Code for the
administration and enforcement of sections 3742.01 to 3742.19
and 3742.99 of the Revised Code. The rules shall specify all of
the following:
(A) Procedures to be followed by a lead abatement
contractor, lead abatement project designer, lead abatement
worker, lead inspector, or lead risk assessor licensed under
section 3742.05 of the Revised Code for undertaking lead
abatement activities and procedures to be followed by a
clearance technician, lead inspector, or lead risk assessor in
performing a clearance examination;
(B)(1) Requirements for training and licensure, in
addition to those established under section 3742.08 of the
Revised Code, to include levels of training and periodic
refresher training for each class of worker, and to be used for
licensure under section 3742.05 of the Revised Code. Except in
the case of clearance technicians, these requirements shall
include at least twenty-four classroom hours of training based
on the Occupational Safety and Health Act training program for
lead set forth in 29 C.F.R. 1926.62. For clearance technicians,
the training requirements to obtain an initial license shall not
exceed six hours and the requirements for refresher training
shall not exceed two hours every four years. In establishing the
training and licensure requirements, the director shall consider
the core of information that is needed by all licensed persons,
and establish the training requirements so that persons who
would seek licenses in more than one area would not have to take
duplicative course work.
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(2) Persons certified by the American board of industrial
hygiene as a certified industrial hygienist or as an industrial
hygienist-in-training, and persons registered as a an
environmental health specialist or environmental health
specialist in training under Chapter 3776. of the Revised Code,
shall be exempt from any training requirements for initial
licensure established under this chapter, but shall be required
to take any examinations for licensure required under section
3742.05 of the Revised Code.
(C) Fees for licenses issued under section 3742.05 of the
Revised Code and for their renewal;
(D) Procedures to be followed by lead inspectors, lead
abatement contractors, environmental lead analytical
laboratories, lead risk assessors, lead abatement project
designers, and lead abatement workers to prevent public exposure
to lead hazards and ensure worker protection during lead
abatement projects;
(E)(1) Record-keeping and reporting requirements for
clinical laboratories, environmental lead analytical
laboratories, lead inspectors, lead abatement contractors, lead
risk assessors, lead abatement project designers, and lead
abatement workers for lead abatement projects and record-keeping
and reporting requirements for clinical laboratories,
environmental lead analytical laboratories, and clearance
technicians for clearance examinations;
(2) Record-keeping and reporting requirements regarding
lead poisoning for physicians;
(3) Information that is required to be reported under
rules based on divisions (E)(1) and (2) of this section and that
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is a medical record is not a public record under section 149.43
of the Revised Code and shall not be released, except in
aggregate statistical form.
(F) Environmental sampling techniques for use in
collecting samples of air, water, dust, paint, and other
materials;
(G) Requirements for a respiratory protection plan
prepared in accordance with section 3742.07 of the Revised Code;
(H) Requirements under which a manufacturer of
encapsulants must demonstrate evidence of the safety and
durability of its encapsulants by providing results of testing
from an independent laboratory indicating that the encapsulants
meet the standards developed by the "E06.23.30 task group on
encapsulants," which is the task group of the lead hazards
associated with buildings subcommittee of the performance of
buildings committee of the American society for testing and
materials.
(I) A certification process for authorizing the use of
software in lead abatement and lead testing conducted by persons
and laboratories licensed under this chapter. Notwithstanding
any provision of section 121.95 of the Revised Code to the
contrary, a regulatory restriction contained in a rule adopted
under this division is not subject to sections 121.95 to 121.953
of the Revised Code.
Sec. 3742.39. (A) A residential unit, child care facility,
or school remains subject to a lead hazard control order issued
under section 3742.37 of the Revised Code until the unit,
facility, or school passes a clearance examination. After the
unit, facility, or school passes the clearance examination, the
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director of health or board of health that issued the order
shall provide the owner and manager of the unit, facility, or
school with information on methods of maintaining control of
each lead hazard specified in the order. In the case of a
residential unit in which an individual who is not the owner or
manager resides, the director or board also shall provide the
information to the individual residing in the unit.
(B) Prior to a clearance examination conducted under this
chapter, a clearance technician, lead inspector, or lead risk
assessor may conduct pre-cleaning at a residential unit, child
care facility, or school. A clearance technician, lead
inspector, or lead risk assessor may charge a fee for the
performance of pre-cleaning.
Sec. 3742.47. (A) Any county, township, or municipal
corporation that requires a person to obtain a certification
that indicates that a property is safe from lead hazards for
purposes of rental registration under the authority of section
5321.19 of the Revised Code shall issue or deny that
certification not later than thirty days after the receipt of an
application for such certification. If a certification is
denied, the county, township, or municipal corporation shall
notify the person who is denied such certification of the denial
and of the specific components of the property that were
determined to include an unsafe lead hazard.
(B) Any person who is denied a certification specified
under division (A) of this section may resubmit an application
for certification by resubmitting lead test results for the
specific components of the property that were previously
determined to include an unsafe lead hazard. The person may
resubmit the application up to one hundred eighty days after the
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county, township, or municipal corporation denies certification.
Sec. 3742.50. (A) As used in this section:
(1) "Lead abatement costs" means costs incurred by a
taxpayer or pass-through entity for either of the following:
(a) A lead abatement specialist to conduct a lead risk
assessment, a lead abatement project, or a clearance
examination, provided the specialist is authorized under this
chapter to conduct the respective task;
(b) Relocation costs incurred in the relocation of
occupants of an eligible dwelling to achieve occupant
protection, as described in 24 C.F.R. 35.1345(a).
"Lead abatement costs" do not include such costs for which
the taxpayer is reimbursed or such costs the taxpayer deducts or
excludes in computing the taxpayer's federal adjusted gross
income for federal income tax purposes or Ohio adjusted gross
income as determined under section 5747.01 of the Revised Code.
(2) "Eligible dwelling" means a residential unit ,
including a single unit in a multi-unit building, constructed in
this state before 1978.
(3) "Lead abatement specialist" means an individual who
holds a valid license issued under section 3742.05 of the
Revised Code or, as used in divisions (B) to (E) of this
section, a pass-through entity that employs such an individual
or is owned, directly or indirectly, by such an individual .
(4) "Taxable year" and "taxpayer" year," "taxpayer," and
"pass-through entity" have the same meanings as in section
5747.01 of the Revised Code.
(B) A taxpayer who or pass-through entity that incurs lead
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abatement costs on an eligible dwelling during a taxable year
may apply to the director of health for a lead abatement tax
credit certificate. The applicanttaxpayer or entity may also
assign the right to apply for a lead abatement tax credit
certificate to a lead abatement specialist in exchange for a
discount in the lead abatement costs charged by the specialist,
up to ten thousand dollars. The taxpayer or entity retains the
right to apply for a lead abatement tax certificate in the
amount by which the discount is less than ten thousand dollars.
If the taxpayer or entity who incurs lead abatement costs
is the applicant, the applicant shall list on the application
the amount of lead abatement costs the applicant incurred for
the eligible dwelling during the taxable year. The If a lead
abatement specialist is the applicant by assignment, the
application shall include the approval of the assignment by the
taxpayer or pass-through entity that incurred the lead abatement
costs, the amount of lead abatement costs charged to that
taxpayer or entity for the specialist's services, and the amount
of the discount in lead abatement costs provided in exchange for
the assignment.
The director, in consultation with the tax commissioner,
shall prescribe the form of a lead abatement tax credit
certificate, the manner by which an applicant shall apply for
the certificate, and requirements for the submission of any
record or other information an applicant must furnish with the
application to verify the lead abatement costs.
(C)(1) Upon receipt of an application under division (B)
of this section, the director of health shall verify all of the
following:
(a) The residential unit that is the subject of the
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application is an eligible dwelling . ;
(b) The taxpayer or pass-through entity incurred lead
abatement costs during the taxable year related to the eligible
dwelling. ;
(c) If the application is filed by the lead abatement
specialist, the amount by which the specialist reduced the lead
abatement costs charged to the taxpayer or entity in exchange
for the right to file the application;
(d) The eligible dwelling has passed a clearance
examination in accordance with standards prescribed in rules
adopted by the director under section 3742.03 or 3742.45 of the
Revised Code.
(2) After verifying the conditions described in division
(C)(1) of this section, the director shall issue a lead
abatement tax credit certificate to the applicant equal to the
lesser of (a) the :
(a) The lead abatement costs incurred by the taxpayer or
pass-through entity on the eligible dwelling during the taxable
year, (b) the if the taxpayer or entity is the applicant, or the
amount of the discount in lead abatement costs charged to the
taxpayer, if the lead abatement specialist is the applicant;
(b) The amount of lead abatement costs or discount listed
on the application, or (c) ten ;
(c) Ten thousand dollars, subject to the limitation in
division (C)(3) of this section.
The amount of credit awarded on the basis of an eligible
dwelling may not exceed ten thousand dollars for any taxable
year.
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(3) The In any fiscal year, the director may not issue
more than five million dollars , plus the amount of funds
transferred to the general revenue fund in the previous fiscal
year pursuant to division (F) of section 5747.504 of the Revised
Code, in lead abatement tax credit certificates in any fiscal
year.
(D) The director of health, in consultation with the tax
commissioner, may adopt rules in accordance with Chapter 119. of
the Revised Code as necessary for the administration of this
section.
(E) Assignment of the right to apply for a lead abatement
tax credit certificate under division (B) of this section is a
consumer transaction for the purposes of sections 1345.01 to
1345.13 of the Revised Code. The lead abatement specialist is
the supplier and the taxpayer or pass-through entity is the
consumer for purposes of those sections.
Sec. 5747.08. An annual return with respect to the tax
imposed by section 5747.02 of the Revised Code and each tax
imposed under Chapter 5748. of the Revised Code shall be made by
every taxpayer for any taxable year for which the taxpayer is
liable for the tax imposed by that section or under that
chapter, unless the total credits allowed under division (E) of
section 5747.05 and divisions (F) and (G) of section 5747.055 of
the Revised Code for the year are equal to or exceed the tax
imposed by section 5747.02 of the Revised Code, in which case no
return shall be required unless the taxpayer is liable for a tax
imposed pursuant to Chapter 5748. of the Revised Code.
(A) If an individual is deceased, any return or notice
required of that individual under this chapter shall be made and
filed by that decedent's executor, administrator, or other
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person charged with the property of that decedent.
(B) If an individual is unable to make a return or notice
required by this chapter, the return or notice required of that
individual shall be made and filed by the individual's duly
authorized agent, guardian, conservator, fiduciary, or other
person charged with the care of the person or property of that
individual.
(C) Returns or notices required of an estate or a trust
shall be made and filed by the fiduciary of the estate or trust.
(D)(1)(a) Except as otherwise provided in division (D)(1)
(b) of this section, any pass-through entity may file a single
return on behalf of one or more of the entity's investors other
than an investor that is a person subject to the tax imposed
under section 5733.06 of the Revised Code. The single return
shall set forth the name, address, and social security number or
other identifying number of each of those pass-through entity
investors and shall indicate the distributive share of each of
those pass-through entity investor's income taxable in this
state in accordance with sections 5747.20 to 5747.231 of the
Revised Code. Such pass-through entity investors for whom the
pass-through entity elects to file a single return are not
entitled to the exemption or credit provided for by sections
5747.02 and 5747.022 of the Revised Code; shall calculate the
tax before business credits at the highest rate of tax set forth
in section 5747.02 of the Revised Code for the taxable year for
which the return is filed; and are entitled to only their
distributive share of the business credits as defined in
division (D)(2) of this section. A single check drawn by the
pass-through entity shall accompany the return in full payment
of the tax due, as shown on the single return, for such
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investors, other than investors who are persons subject to the
tax imposed under section 5733.06 of the Revised Code.
(b)(i) A pass-through entity shall not include in such a
single return any investor that is a trust to the extent that
any direct or indirect current, future, or contingent
beneficiary of the trust is a person subject to the tax imposed
under section 5733.06 of the Revised Code.
(ii) A pass-through entity shall not include in such a
single return any investor that is itself a pass-through entity
to the extent that any direct or indirect investor in the second
pass-through entity is a person subject to the tax imposed under
section 5733.06 of the Revised Code.
(c) Except as provided by division (L) of this section,
nothing in division (D) of this section precludes the tax
commissioner from requiring such investors to file the return
and make the payment of taxes and related interest, penalty, and
interest penalty required by this section or section 5747.02,
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)
of this section precludes such an investor from filing the
annual return under this section, utilizing the refundable
credit equal to the investor's proportionate share of the tax
paid by the pass-through entity on behalf of the investor under
division (I) of this section, and making the payment of taxes
imposed under section 5747.02 of the Revised Code. Nothing in
division (D) of this section shall be construed to provide to
such an investor or pass-through entity any additional deduction
or credit, other than the credit provided by division (I) of
this section, solely on account of the entity's filing a return
in accordance with this section. Such a pass-through entity also
shall make the filing and payment of estimated taxes on behalf
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of the pass-through entity investors other than an investor that
is a person subject to the tax imposed under section 5733.06 of
the Revised Code.
(2) For the purposes of this section, "business credits"
means the credits listed in section 5747.98 of the Revised Code
excluding the following credits:
(a) The retirement income credit under division (B) of
section 5747.055 of the Revised Code;
(b) The senior citizen credit under division (F) of
section 5747.055 of the Revised Code;
(c) The lump sum distribution credit under division (G) of
section 5747.055 of the Revised Code;
(d) The dependent care credit under section 5747.054 of
the Revised Code;
(e) The lump sum retirement income credit under division
(C) of section 5747.055 of the Revised Code;
(f) The lump sum retirement income credit under division
(D) of section 5747.055 of the Revised Code;
(g) The lump sum retirement income credit under division
(E) of section 5747.055 of the Revised Code;
(h) The credit for displaced workers who pay for job
training under section 5747.27 of the Revised Code;
(i) The twenty-dollar personal exemption credit under
section 5747.022 of the Revised Code;
(j) The joint filing credit under division (E) of section
5747.05 of the Revised Code;
(k) The nonresident credit under division (A) of section
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5747.05 of the Revised Code;
(l) The credit for a resident's out-of-state income under
division (B) of section 5747.05 of the Revised Code;
(m) The earned income tax credit under section 5747.71 of
the Revised Code;
(n) The lead abatement credit under section 5747.26 of the
Revised Code;
(o) The credit for education expenses under section
5747.72 of the Revised Code;
(p) (o) The credit for tuition paid to a nonchartered
nonpublic school under section 5747.75 of the Revised Code.
(3) The election provided for under division (D) of this
section applies only to the taxable year for which the election
is made by the pass-through entity. Unless the tax commissioner
provides otherwise, this election, once made, is binding and
irrevocable for the taxable year for which the election is made.
Nothing in this division shall be construed to provide for any
deduction or credit that would not be allowable if a nonresident
pass-through entity investor were to file an annual return.
(4) If a pass-through entity makes the election provided
for under division (D) of this section, the pass-through entity
shall be liable for any additional taxes, interest, interest
penalty, or penalties imposed by this chapter if the tax
commissioner finds that the single return does not reflect the
correct tax due by the pass-through entity investors covered by
that return. Nothing in this division shall be construed to
limit or alter the liability, if any, imposed on pass-through
entity investors for unpaid or underpaid taxes, interest,
interest penalty, or penalties as a result of the pass-through
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entity's making the election provided for under division (D) of
this section. For the purposes of division (D) of this section,
"correct tax due" means the tax that would have been paid by the
pass-through entity had the single return been filed in a manner
reflecting the commissioner's findings. Nothing in division (D)
of this section shall be construed to make or hold a pass-
through entity liable for tax attributable to a pass-through
entity investor's income from a source other than the pass-
through entity electing to file the single return.
(E) If a husband and wife file a joint federal income tax
return for a taxable year, they shall file a joint return under
this section for that taxable year, and their liabilities are
joint and several, but, if the federal income tax liability of
either spouse is determined on a separate federal income tax
return, they shall file separate returns under this section.
If either spouse is not required to file a federal income
tax return and either or both are required to file a return
pursuant to this chapter, they may elect to file separate or
joint returns, and, pursuant to that election, their liabilities
are separate or joint and several. If a husband and wife file
separate returns pursuant to this chapter, each must claim the
taxpayer's own exemption, but not both, as authorized under
section 5747.02 of the Revised Code on the taxpayer's own
return.
(F) Each return or notice required to be filed under this
section shall contain the signature of the taxpayer or the
taxpayer's duly authorized agent and of the person who prepared
the return for the taxpayer, and shall include the taxpayer's
social security number. Each return shall be verified by a
declaration under the penalties of perjury. The tax commissioner
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shall prescribe the form that the signature and declaration
shall take.
(G) Each return or notice required to be filed under this
section shall be made and filed as required by section 5747.04
of the Revised Code, on or before the fifteenth day of April of
each year, on forms that the tax commissioner shall prescribe,
together with remittance made payable to the treasurer of state
in the combined amount of the state and all school district
income taxes shown to be due on the form.
Upon good cause shown, the commissioner may extend the
period for filing any notice or return required to be filed
under this section and may adopt rules relating to extensions.
If the extension results in an extension of time for the payment
of any state or school district income tax liability with
respect to which the return is filed, the taxpayer shall pay at
the time the tax liability is paid an amount of interest
computed at the rate per annum prescribed by section 5703.47 of
the Revised Code on that liability from the time that payment is
due without extension to the time of actual payment. Except as
provided in section 5747.132 of the Revised Code, in addition to
all other interest charges and penalties, all taxes imposed
under this chapter or Chapter 5748. of the Revised Code and
remaining unpaid after they become due, except combined amounts
due of one dollar or less, bear interest at the rate per annum
prescribed by section 5703.47 of the Revised Code until paid or
until the day an assessment is issued under section 5747.13 of
the Revised Code, whichever occurs first.
If the commissioner considers it necessary in order to
ensure the payment of the tax imposed by section 5747.02 of the
Revised Code or any tax imposed under Chapter 5748. of the
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Revised Code, the commissioner may require returns and payments
to be made otherwise than as provided in this section.
To the extent that any provision in this division
conflicts with any provision in section 5747.026 of the Revised
Code, the provision in that section prevails.
(H) The amounts withheld pursuant to section 5747.06,
5747.062, 5747.063, 5747.064, 5747.065, or 5747.071 of the
Revised Code shall be allowed to the ultimate recipient of the
income as credits against payment of the appropriate taxes
imposed on the ultimate recipient by section 5747.02 and under
Chapter 5748. of the Revised Code. As used in this division,
"ultimate recipient" means the person who is required to report
income from which amounts are withheld pursuant to section
5747.06, 5747.062, 5747.063, 5747.064, 5747.065, or 5747.071 of
the Revised Code on the annual return required to be filed under
this section.
(I) If a pass-through entity elects to file a single
return under division (D) of this section and if any investor is
required to file the annual return and make the payment of taxes
required by this chapter on account of the investor's other
income that is not included in a single return filed by a pass-
through entity or any other investor elects to file the annual
return, the investor is entitled to a refundable credit equal to
the investor's proportionate share of the tax paid by the pass-
through entity on behalf of the investor. The investor shall
claim the credit for the investor's taxable year in which or
with which ends the taxable year of the pass-through entity.
Nothing in this chapter shall be construed to allow any credit
provided in this chapter to be claimed more than once. For the
purpose of computing any interest, penalty, or interest penalty,
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the investor shall be deemed to have paid the refundable credit
provided by this division on the day that the pass-through
entity paid the estimated tax or the tax giving rise to the
credit.
(J) The tax commissioner shall ensure that each return
required to be filed under this section includes a box that the
taxpayer may check to authorize a paid tax preparer who prepared
the return to communicate with the department of taxation about
matters pertaining to the return. The return or instructions
accompanying the return shall indicate that by checking the box
the taxpayer authorizes the department of taxation to contact
the preparer concerning questions that arise during the
processing of the return and authorizes the preparer only to
provide the department with information that is missing from the
return, to contact the department for information about the
processing of the return or the status of the taxpayer's refund
or payments, and to respond to notices about mathematical
errors, offsets, or return preparation that the taxpayer has
received from the department and has shown to the preparer.
(K) The tax commissioner shall permit individual taxpayers
to instruct the department of taxation to cause any refund of
overpaid taxes to be deposited directly into a checking account,
savings account, or an individual retirement account or
individual retirement annuity, or preexisting college savings
plan or program account offered by the Ohio tuition trust
authority under Chapter 3334. of the Revised Code, as designated
by the taxpayer, when the taxpayer files the annual return
required by this section electronically.
(L) If, for the taxable year, a nonresident or trust that
is the owner of an electing pass-through entity, as defined in
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section 5747.38 of the Revised Code, does not have Ohio adjusted
gross income or, in the case of a trust, modified Ohio taxable
income other than from one or more electing pass-through
entities, the nonresident or trust shall not be required to file
an annual return under this section. Nothing in this division
precludes such an owner from filing the annual return under this
section, utilizing the refundable credit under section 5747.39
of the Revised Code equal to the owner's proportionate share of
the tax levied under section 5747.38 of the Revised Code and
paid by the electing pass-through entity, and making the payment
of taxes imposed under section 5747.02 of the Revised Code.
(M) The tax commissioner may adopt rules to administer
this section.
Sec. 5747.26. (A) Terms used in this section have the same
meanings as in section 3742.50 of the Revised Code.
(B) There is hereby allowed a nonrefundable refundable
credit against a taxpayer's aggregate tax liability under
section 5747.02 of the Revised Code for a taxpayer to whom a
lead abatement tax credit certificate was issued under section
3742.50 of the Revised Code. The credit equals the amount listed
on the certificate and shall be claimed for the taxable year in
which the certificate was issued.
The credit shall be claimed in the order required under
section 5747.98 of the Revised Code. If the credit exceeds the
taxpayer's aggregate tax due under section 5747.02 of the
Revised Code for that taxable year after allowing for credits
that precede the credit under this section in that order, such
excess shall be allowed as a credit in each of the ensuing seven
taxable years, but the amount of any excess credit allowed in
any such taxable year shall be deducted from the balance carried
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As Introduced
forward to the ensuing taxable year refunded to the taxpayer .
(C) The If a lead abatement tax credit certificate is
issued under section 3742.50 of the Revised Code to a pass-
through entity, a taxpayer that is a direct or indirect investor
in the entity may claim the taxpayer's proportionate or
distributive share of the credit authorized under division (B)
of this section.
(D) A taxpayer shall provide, upon request of the tax
commissioner, any documentation necessary to verify the taxpayer
is entitled to the credit under this section.
Sec. 5747.50. (A) As used in this section:
(1) "County's proportionate share of the calendar year
2007 LGF and LGRAF distributions" means the percentage computed
for the county under division (B)(1)(a) of section 5747.501 of
the Revised Code.
(2) "County's proportionate share of the total amount of
the local government fund additional revenue formula" means each
county's proportionate share of the state's population as
determined for and certified to the county for distributions to
be made during the current calendar year under division (B)(2)
(a) of section 5747.501 of the Revised Code. If prior to the
first day of January of the current calendar year the federal
government has issued a revision to the population figures
reflected in the estimate produced pursuant to division (B)(2)
(a) of section 5747.501 of the Revised Code, such revised
population figures shall be used for making the distributions
during the current calendar year.
(3) "2007 LGF and LGRAF county distribution base available
in that month" means the lesser of the amounts described in
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As Introduced
division (A)(3)(a) and (b) of this section, provided that the
amount shall not be less than zero:
(a) The total amount available for distribution to
counties from the local government fund during the current
month.
(b) The total amount distributed to counties from the
local government fund and the local government revenue
assistance fund to counties in calendar year 2007 less the total
amount distributed to counties under division (B)(1) of this
section during previous months of the current calendar year.
(4) "Local government fund additional revenue distribution
base available during that month" means the total amount
available for distribution to counties during the month from the
local government fund, less any amounts to be distributed in
that month from the local government fund under division (B)(1)
of this section, provided that the local government fund
additional revenue distribution base available during that month
shall not be less than zero.
(5) "Total amount available for distribution to counties"
means the total amount available for distribution from the local
government fund during the current month less the total amount
available for distribution to municipal corporations during the
current month under division (C) of this section.
(B) On or before the tenth day of each month, the tax
commissioner shall provide for payment to each county an amount
equal to the sum of:
(1) The county's proportionate share of the calendar year
2007 LGF and LGRAF distributions multiplied by the 2007 LGF and
LGRAF county distribution base available in that month, provided
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749 H. B. No. 118 Page 27
As Introduced
that if the 2007 LGF and LGRAF county distribution base
available in that month is zero, no payment shall be made under
division (B)(1) of this section for the month or the remainder
of the calendar year; and
(2) The county's proportionate share of the total amount
of the local government fund additional revenue formula
multiplied by the local government fund additional revenue
distribution base available during that month.
Money received into the treasury of a county under this
division shall be credited to the undivided local government
fund in the treasury of the county on or before the fifteenth
day of each month. On or before the twentieth day of each month,
the county auditor shall issue warrants against all of the
undivided local government fund in the county treasury in the
respective amounts allowed as provided in section 5747.51 of the
Revised Code, and the treasurer shall distribute and pay such
sums to the subdivision therein.
(C)(1) As used in division (C) of this section:
(a) "Total amount available for distribution to
municipalities during the current month" means the difference
obtained by subtracting one million dollars from the product
obtained by multiplying the total amount available for
distribution from the local government fund during the current
month by the aggregate municipal share.
(b) "Aggregate municipal share" means the quotient
obtained by dividing the total amount distributed directly from
the local government fund to municipal corporations during
calendar year 2007 by the total distributions from the local
government fund and local government revenue assistance fund
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As Introduced
during calendar year 2007.
(c) A municipal corporation's "distribution share" equals
one of the following:
(i) For municipal corporations with a population of more
than fifty thousand, fifty thousand;
(ii) For municipal corporations with a population of less
than one thousand, zero;
(iii) For all other municipal corporations, the municipal
corporation's population.
(d) A municipal corporation's "distribution percentage"
equals the percentage that a municipal corporation's
distribution share is of the total of all municipal
corporations' distribution shares.
(2) On or before the tenth day of each month, the tax
commissioner shall provide for payment from the local government
fund to each municipal corporation an amount equal to the
product derived by multiplying the municipal corporation's
distribution percentage by the total amount available for
distribution to municipal corporations during the current month.
(3) Payments received by a municipal corporation under
this division shall be paid into its general fund and may be
used for any lawful purpose.
(4) The amount distributed to municipal corporations under
this division during any calendar year shall not exceed the
amount distributed directly from the local government fund to
municipal corporations during calendar year 2007. If that
maximum amount is reached during any month, distributions to
municipal corporations in that month shall be as provided in
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806 H. B. No. 118 Page 29
As Introduced
divisions (C)(1) and (2) of this section, but no further
distributions shall be made to municipal corporations under
division (C) of this section during the remainder of the
calendar year.
(5) Upon being informed of a municipal corporation's
dissolution, the tax commissioner shall cease providing for
payments to that municipal corporation under division (C) of
this section. The proportionate shares of the total amount
available for distribution to each of the remaining municipal
corporations under this division shall be increased on a pro
rata basis.
The tax commissioner shall reduce payments under division
(C) of this section to municipal corporations for which reduced
payments are required under section 5747.502 or 5747.504 of the
Revised Code.
(D) Each municipal corporation which has in effect a tax
imposed under Chapter 718. of the Revised Code shall, no later
than the thirty-first day of August of each year, certify to the
tax commissioner, on a form prescribed by the commissioner, the
amount of income tax revenue collected and refunded by such
municipal corporation pursuant to such chapter during the
preceding calendar year, arranged, when possible, by the type of
income from which the revenue was collected or the refund was
issued. The municipal corporation shall also report the amount
of income tax revenue collected and refunded on behalf of a
joint economic development district or a joint economic
development zone that levies an income tax administered by the
municipal corporation and the amount of such revenue distributed
to contracting parties during the preceding calendar year. The
tax commissioner may withhold payment of local government fund
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836 H. B. No. 118 Page 30
As Introduced
moneys pursuant to division (C) of this section from any
municipal corporation for failure to comply with this reporting
requirement.
(E)(1) For the purposes of division (E) of this section:
(a) "Eligible taxing district" means a township, township
fire district, or joint fire district for which the total
taxable value of eligible power plants for tax year 2017 is at
least thirty per cent less than the total taxable value of
eligible power plants for tax year 2016.
(b) "Eligible power plant" means a power plant that is
subject to the requirements of 10 C.F.R. part 73.
(c) "Total taxable value of eligible power plants" of an
eligible taxing district means the total taxable value of the
taxable property of eligible power plants apportioned to the
district as shown in a preliminary assessment or amended
preliminary assessment and listed on the tax list of real and
public utility property.
(d) "Taxable property" has the same meaning as in section
5727.01 of the Revised Code.
(e) "Tax rate" of an eligible taxing district means one of
the following:
(i) For townships, the sum of the rates of levies imposed
under section 505.39, 505.51, or division (I), (J), (U), or (JJ)
of section 5705.19 of the Revised Code and extended on the tax
list of real and public utility property for tax year 2017,
excluding any levy imposed at whatever rate is required to raise
a fixed sum of money;
(ii) For township fire districts and joint fire districts,
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As Introduced
the sum of the rates of levies extended on the tax list of real
and public utility property for tax year 2017, excluding any
levy imposed at whatever rate is required to raise a fixed sum
of money.
(2) Each fiscal year from fiscal year 2018 through fiscal
year 2028, the tax commissioner shall compute the following
amount for each eligible taxing district:
(a) For fiscal years 2018 and 2019, the amount obtained by
multiplying the eligible taxing district's tax rate by the
difference obtained by subtracting (i) the total taxable value
of eligible power plants of the district for tax year 2017 from
(ii) the total taxable value of eligible power plants of the
district for tax year 2016;
(b) For fiscal years 2020 through 2028, ninety per cent of
the amount calculated for the district under division (E)(2)(a)
or (b) of this section for the preceding fiscal year.
The commissioner shall certify the sum of the amounts
calculated for all eligible taxing districts under this division
for a fiscal year to the director of budget and management who,
on or before the seventh day of each month of that fiscal year,
shall transfer from the general revenue fund to the local
government fund one-twelfth of the amount certified.
(3) On or before the tenth day of each month, the tax
commissioner shall provide for payment to each county treasury
in which an eligible taxing district is located an amount equal
to one-twelfth of the amount computed for the district for that
fiscal year under division (E)(2) of this section.
Money received into the treasury of a county under
division (E) of this section shall be credited to the undivided
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As Introduced
local government fund in the treasury of the county on or before
the fifteenth day of each month. On or before the twentieth day
of each month, the county auditor shall issue warrants against
the undivided local government fund for the amounts attributable
to each eligible taxing district, and the treasurer shall
distribute and pay such amounts to each eligible taxing
district. Money received by a township fire district or joint
fire district under this division shall be credited to the
district's general fund and may be used for any lawful purpose
of the district. Money received by a township under this
division shall be credited to the township's general fund and
shall be used for the purpose of funding fire, police, emergency
medical, or ambulance services.
Sec. 5747.502. (A) As used in this section:
(1) "Local authority" and "traffic law photo-monitoring
device" have the same meanings as in section 4511.092 of the
Revised Code.
(2) "School zone" has the same meaning as in section
4511.21 of the Revised Code.
(3) "Transportation district" means a territorial district
established by the director of transportation under section
5501.14 of the Revised Code.
(4) "District deputy director" means the person appointed
and assigned by the director of transportation under section
5501.14 of the Revised Code to administer the activities of a
transportation district.
(5) "Gross amount" means the entire amount of traffic
camera fines and fees paid by a driver.
(6) "Local government fund adjustment" or "LGF Traffic
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922 H. B. No. 118 Page 33
As Introduced
camera adjustment" means the sum of:
(a) The gross amount of all traffic camera fines collected
by a local authority during the preceding fiscal year, as
reported under division (B)(1) of this section, if such a report
is required; plus
(b) The residual traffic camera adjustment computed for
the local authority under division (B)(4) of this section, if
such an adjustment applies.
(7) "Local government fund payments" or "LGF payments"
means the payments a local authority would receive under
sections 5747.5025747.503, 5747.51, and 5747.53, and division
(C) of section 5747.50 of the Revised Code, as applicable, if
not for the reductions required by divisions (C) and (D) of this
section.
(8) "Residual traffic camera adjustment" means the most
recent LGF traffic camera adjustment computed for a local
authority under division (B)(2) or (3) of this section minus the
sum of the reductions applied after that computation under
division (C) of this section to the local authority's LGF
payments.
(9) "Traffic camera fines" means civil fines for any
violation of any local ordinance or resolution that are based
upon evidence recorded by a traffic law photo-monitoring device.
(10) "Qualifying village" has the same meaning as in
section 5747.503 of the Revised Code.
(B)(1) Annually, on or before the thirty-first day of
July, any local authority that directly or indirectly collected
traffic camera fines during the preceding fiscal year shall file
a report with the tax commissioner that includes a detailed
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As Introduced
statement of the gross amount of all traffic camera fines the
local authority collected during that period and the gross
amount of such fines that the local authority collected for
violations that occurred within a school zone.
(2) Annually, on or before the tenth day of August, the
commissioner shall compute a local government fund traffic
camera adjustment for each local authority that files a report
under division (B)(1) of this section or with respect to which a
residual traffic camera adjustment applies. Subject to division
(B)(3) of this section, the LGF traffic camera adjustment shall
be used by the commissioner to determine the amount of the
reductions required under division (C) of this section for each
of the next twelve months, starting with the month in which the
LGF traffic camera adjustment is computed. After those twelve
months, the LGF traffic camera adjustment ceases to apply and,
if an LGF a traffic camera adjustment continues to be required,
the amount of the reductions required under division (C) of this
section shall be determined based on an updated LGF traffic
camera adjustment computed under this division.
(3) Upon receipt of a report described by division (B)(1)
of this section that is not timely filed, the commissioner shall
do both of the following:
(a) If one or more payments to the local authority has
been withheld under division (D) of this section because of the
local authority's failure to file the report, notify the county
auditor and county treasurer of the appropriate county that the
report has been received and that, subject to division (C) of
this section, payments to the local authority from the undivided
local government fund are to resume.
(b) Compute the local authority's LGF traffic camera
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981 H. B. No. 118 Page 35
As Introduced
adjustment using the information in the report. An LGF A traffic
camera adjustment computed under this division shall be used by
the commissioner to determine the amount of the reductions
required under division (C) of this section starting with the
next required reduction. The LGF traffic camera adjustment
ceases to apply on the thirty-first day of the ensuing July,
following which, if an LGF a traffic camera adjustment continues
to be required, the amount of the reductions required under
division (C) of this section shall be determined based on an
updated LGF traffic camera adjustment computed under division
(B)(2) of this section.
(4) Annually, on or before the tenth day of August, the
commissioner shall compute a residual traffic camera adjustment
for each local authority whose LGF traffic camera adjustment for
the preceding year exceeds the amount by which the local
authority's LGF payments were reduced during that year under
division (C) of this section. The residual traffic camera
adjustment shall be used to compute the LGF traffic camera
adjustment for the ensuing year under division (B)(2) of this
section.
(C) The commissioner shall do the following, as
applicable, respecting any local authority to which an LGF a
traffic camera adjustment computed under division (B) of this
section applies:
(1) If the local authority is a municipal corporation with
a population of one thousand or more, reduce payments to the
municipal corporation under division (C) of section 5747.50 of
the Revised Code by one-twelfth of the LGF traffic camera
adjustment. If one-twelfth of the LGF traffic camera adjustment
exceeds the amount of money the municipal corporation would
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1011 H. B. No. 118 Page 36
As Introduced
otherwise receive under division (C) of section 5747.50 of the
Revised Code, the commissioner also shall reduce payments to the
appropriate county undivided local government fund under
division (B) of section 5747.50 of the Revised Code by an amount
equal to the lesser of (a) one-twelfth of the excess, or (b) the
amount of the payment the municipal corporation would otherwise
receive from the fund under section 5747.51 or 5747.53 of the
Revised Code.
(2) If the local authority is a township or qualifying
village, reduce the supplemental payments to the appropriate
county undivided local government fund under section 5747.503 of
the Revised Code by the lesser of one-twelfth of the LGF traffic
camera adjustment, or the amount of money the township or
qualifying village would otherwise receive under that section.
If one-twelfth of the LGF traffic camera adjustment exceeds the
amount of money the township or qualifying village would
otherwise receive under section 5747.503 of the Revised Code,
the commissioner also shall reduce payments to the appropriate
county undivided local government fund under division (B) of
section 5747.50 of the Revised Code by an amount equal to the
lesser of (a) one-twelfth of the excess, or (b) the amount of
the payment the township or qualifying village would otherwise
receive from the fund under section 5747.51 or 5747.53 of the
Revised Code.
(3) If the local authority is a county, reduce payments to
the appropriate county undivided local government fund under
division (B) of section 5747.50 of the Revised Code by an amount
equal to the lesser of (a) one-twelfth of the LGF traffic camera
adjustment, or (b) the amount of the payment the county would
otherwise receive from the fund under section 5747.51 or 5747.53
of the Revised Code.
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1042 H. B. No. 118 Page 37
As Introduced
(4) For any local authority, on or before the tenth day of
each month a reduction is made under division (C)(1), (2), or
(3) of this section, make a payment to the local authority in an
amount equal to the lesser of (a) one-twelfth of the gross
amount of traffic camera fines the local authority collected in
the preceding fiscal year for violations that occurred within a
school zone, as indicated on the report filed by the local
authority pursuant to division (B)(1) of this section, or (b)
the amount by which the local authority's LGF payments were
reduced that month pursuant to division (C)(1), (2), or (3) of
this section. Payments received by a local authority under this
division shall be used by the local authority for school safety
purposes.
(D) Upon discovery, based on information in the
commissioner's possession, that a local authority required to
file a report under division (B)(1) of this section has failed
to do so, the commissioner shall do the following, as
applicable:
(1) If the local authority is a municipal corporation with
a population of one thousand or more, cease providing for
payments to the municipal corporation under section 5747.50 of
the Revised Code beginning with the next required payment and
until such time as the report is received by the commissioner;
(2) If the local authority is a township or qualifying
village, reduce the supplemental payments to the appropriate
county undivided local government fund under section 5747.503 of
the Revised Code by an amount equal to the amount of such
payments the local authority would otherwise receive under that
section, beginning with the next required payment and until such
time as the report is received by the commissioner;
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1072 H. B. No. 118 Page 38
As Introduced
(3) For any local authority, reduce payments to the
appropriate county undivided local government fund under
division (B) of section 5747.50 of the Revised Code by an amount
equal to the amount of such payments the local authority would
otherwise receive under section 5747.51 or 5747.53 of the
Revised Code, beginning with the next required payment and until
such time as the report is received by the commissioner;
(4) For any local authority, notify the county auditor and
county treasurer that such payments are to cease until the
commissioner notifies the auditor and treasurer under division
(E) of this section that the payments are to resume.
(E) The commissioner shall notify the county auditor and
county treasurer on or before the day the commissioner first
reduces a county undivided local government fund payment to that
county under division (C) of this section. The notice shall
include the full amount of the reduction, a list of the local
authorities to which the reduction applies, and the amount of
reduction attributed to each such local authority. The
commissioner shall send an updated notice to the county auditor
and county treasurer any time the amount the reduction
attributed to any local authority changes.
A county treasurer that receives a notice from the
commissioner under this division or division (B)(3)(a) or (D)(4)
of this section shall reduce, cease, or resume payments from the
undivided local government fund to the local authority that is
the subject of the notice as specified by the commissioner in
the notice. Unless otherwise specified in the notice, the
payments shall be reduced, ceased, or resumed beginning with the
next required payment.
(F) There is hereby created in the state treasury the Ohio
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1102 H. B. No. 118 Page 39
As Introduced
highway and transportation safety fund. On or before the tenth
day of each month, the commissioner shall deposit in the fund an
amount equal to the total amount by which payments to local
authorities were reduced or ceased under division (C) or (D) of
this section minus the total amount of payments made under
division (C)(4) of this section. The amount deposited with
respect to a local authority shall be credited to an account to
be created in the fund for the transportation district in which
that local authority is located. If the local authority is
located within more than one transportation district, the amount
credited to the account of each such transportation district
shall be prorated on the basis of the number of centerline miles
of public roads and highways in both the local authority and the
respective districts. Amounts credited to a transportation
district's account shall be used by the department of
transportation and the district deputy director exclusively to
enhance public safety on public roads and highways within that
transportation district.
Sec. 5747.504. (A) As used in this section:
(1) "Lead certification delay adjustment" means ten per
cent of a local authority's local government fund payment for a
month.
(2) "Local authority" has the same meaning as in section
5747.502 of the Revised Code.
(3) "Local government fund payments" or "LGF payments"
means the payments a local authority would receive each month
under sections 5747.503, 5747.51, and 5747.53, and division (C)
of section 5747.50 of the Revised Code, as applicable, if not
for the reductions required by this section, but subject to any
reduction under section 5747.502 of the Revised Code for that
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1132 H. B. No. 118 Page 40
As Introduced
month.
(4) "Qualifying village" has the same meaning as in
section 5747.503 of the Revised Code.
(B)(1) On or before the tenth day of each month that
begins after the effective date of this section, the tax
commissioner shall compute a lead certification delay adjustment
for each local authority to which both of the following apply on
or after that effective date:
(a) The legislative authority of the local authority
adopts or has in effect an ordinance or resolution that requires
a person to obtain a certification that indicates that a
property is safe from lead hazards for purposes of rental
registration under the authority of section 5321.19 of the
Revised Code;
(b) In the current fiscal year, the tax commissioner has
received and verified fifty or more notices, on forms prescribed
by the commissioner, describing individual instances in which
the local authority failed to comply with division (A) of
section 3742.47 of the Revised Code.
(2) On or before the tenth day of each month that begins
after the effective date of this section, the tax commissioner
shall compute an additional lead certification delay adjustment
for each local authority for which an adjustment has been
calculated pursuant to division (B)(1) of this section and for
which the tax commissioner receives and verifies an additional
four hundred fifty notices above the fifty notices of the type
described in that division during the same fiscal year the
initial adjustment was calculated.
The commissioner shall subtract the lead certification
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1161 H. B. No. 118 Page 41
As Introduced
delay adjustment or adjustments from the local authority's LGF
payments as described in divisions (C) and (D) of this section.
(C)(1) If the local authority is a municipal corporation
with a population of one thousand or more, the commissioner
shall first reduce payments to the municipal corporation under
division (C) of section 5747.50 of the Revised Code by the
lesser of any lead certification delay adjustment amounts or the
amount the municipal corporation would otherwise receive under
that division. If the amount of any lead certification delay
adjustments exceeds the amount of money the municipal
corporation would otherwise receive under division (C) of
section 5747.50 of the Revised Code, the commissioner also shall
reduce payments to the appropriate county undivided local
government fund under division (B) of section 5747.50 of the
Revised Code by the excess lead certification delay adjustments.
(2) If the local authority is a qualifying village, the
commissioner shall first reduce supplemental payments to the
appropriate county undivided local government fund under section
5747.503 of the Revised Code by the lesser of any lead
certification delay adjustments, or the amount of money the
qualifying village would otherwise receive under that section.
If the amount of any lead certification delay adjustments
exceeds the amount of money the qualifying village would
otherwise receive under section 5747.503 of the Revised Code,
the commissioner also shall reduce payments to the appropriate
county undivided local government fund under division (B) of
section 5747.50 of the Revised Code by the excess lead
certification delay adjustments.
(3) If the local authority is a county or township, the
commissioner shall reduce payments to the appropriate county
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1191 H. B. No. 118 Page 42
As Introduced
undivided local government fund under division (B) of section
5747.50 of the Revised Code by the amount of all lead
certification delay adjustments.
(D) A reduction under division (C) of this section shall
begin to apply for the first LGF payment the local authority
receives after the commissioner computes a lead certification
delay adjustment and continue until and include the last LGF
payment in the fiscal year in which the the adjustment was
computed.
(E) The commissioner shall notify the county auditor and
county treasurer on or before the day the commissioner first
reduces a county undivided local government fund payment to that
county under division (C) of this section. The notice shall
include the full amount of the reduction, a list of the local
authorities to which the reduction applies, and the amount of
reduction attributed to each such local authority. The
commissioner shall send an updated notice to the county auditor
and county treasurer any time the amount the reduction
attributed to any local authority changes or ceases.
A county treasurer that receives a notice from the
commissioner under this division shall reduce, cease, or resume
payments from the undivided local government fund to the local
authority that is the subject of the notice as specified by the
commissioner in the notice. Unless otherwise specified in the
notice, the payments shall be reduced, ceased, or resumed
beginning with the next required payment.
(F) On or before the tenth day of each month, the
commissioner shall transfer from the local government fund to
the general revenue fund the sum of the payments withheld that
month under division (C) of this section.
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1221 H. B. No. 118 Page 43
As Introduced
Sec. 5747.51. (A) On or before the twenty-fifth day of
July of each year, the tax commissioner shall make and certify
to the county auditor of each county an estimate of the amount
of the local government fund to be allocated to the undivided
local government fund of each county for the ensuing calendar
year, adjusting the total as required to account for
subdivisions receiving local government funds under section
5747.502 of the Revised Code.
(B) At each annual regular session of the county budget
commission convened pursuant to section 5705.27 of the Revised
Code, each auditor shall present to the commission the
certificate of the commissioner, the annual tax budget and
estimates, and the records showing the action of the commission
in its last preceding regular session. The commission, after
extending to the representatives of each subdivision an
opportunity to be heard, under oath administered by any member
of the commission, and considering all the facts and information
presented to it by the auditor, shall determine the amount of
the undivided local government fund needed by and to be
apportioned to each subdivision for current operating expenses,
as shown in the tax budget of the subdivision. This
determination shall be made pursuant to divisions (C) to (I) of
this section, unless the commission has provided for a formula
pursuant to section 5747.53 of the Revised Code. The
commissioner shall reduce the amount of funds from the undivided
local government fund to a subdivision required to receive
reduced funds under section 5747.502 or 5747.504 of the Revised
Code.
Nothing in this section prevents the budget commission,
for the purpose of apportioning the undivided local government
fund, from inquiring into the claimed needs of any subdivision
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1252 H. B. No. 118 Page 44
As Introduced
as stated in its tax budget, or from adjusting claimed needs to
reflect actual needs. For the purposes of this section, "current
operating expenses" means the lawful expenditures of a
subdivision, except those for permanent improvements and except
payments for interest, sinking fund, and retirement of bonds,
notes, and certificates of indebtedness of the subdivision.
(C) The commission shall determine the combined total of
the estimated expenditures, including transfers, from the
general fund and any special funds other than special funds
established for road and bridge; street construction,
maintenance, and repair; state highway improvement; and gas,
water, sewer, and electric public utilities operated by a
subdivision, as shown in the subdivision's tax budget for the
ensuing calendar year.
(D) From the combined total of expenditures calculated
pursuant to division (C) of this section, the commission shall
deduct the following expenditures, if included in these funds in
the tax budget:
(1) Expenditures for permanent improvements as defined in
division (E) of section 5705.01 of the Revised Code;
(2) In the case of counties and townships, transfers to
the road and bridge fund, and in the case of municipalities,
transfers to the street construction, maintenance, and repair
fund and the state highway improvement fund;
(3) Expenditures for the payment of debt charges;
(4) Expenditures for the payment of judgments.
(E) In addition to the deductions made pursuant to
division (D) of this section, revenues accruing to the general
fund and any special fund considered under division (C) of this
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1281 H. B. No. 118 Page 45
As Introduced
section from the following sources shall be deducted from the
combined total of expenditures calculated pursuant to division
(C) of this section:
(1) Taxes levied within the ten-mill limitation, as
defined in section 5705.02 of the Revised Code;
(2) The budget commission allocation of estimated county
public library fund revenues to be distributed pursuant to
section 5747.48 of the Revised Code;
(3) Estimated unencumbered balances as shown on the tax
budget as of the thirty-first day of December of the current
year in the general fund, but not any estimated balance in any
special fund considered in division (C) of this section;
(4) Revenue, including transfers, shown in the general
fund and any special funds other than special funds established
for road and bridge; street construction, maintenance, and
repair; state highway improvement; and gas, water, sewer, and
electric public utilities, from all other sources except those
that a subdivision receives from an additional tax or service
charge voted by its electorate or receives from special
assessment or revenue bond collection. For the purposes of this
division, where the charter of a municipal corporation prohibits
the levy of an income tax, an income tax levied by the
legislative authority of such municipal corporation pursuant to
an amendment of the charter of that municipal corporation to
authorize such a levy represents an additional tax voted by the
electorate of that municipal corporation. For the purposes of
this division, any measure adopted by a board of county
commissioners pursuant to section 322.02, 4504.02, or 5739.021
of the Revised Code, including those measures upheld by the
electorate in a referendum conducted pursuant to section
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1311 H. B. No. 118 Page 46
As Introduced
322.021, 4504.021, or 5739.022 of the Revised Code, shall not be
considered an additional tax voted by the electorate.
Subject to division (F) of section 5705.29 of the Revised
Code, money in a reserve balance account established by a
county, township, or municipal corporation under section 5705.13
of the Revised Code shall not be considered an unencumbered
balance or revenue under division (E)(3) or (4) of this section.
Money in a reserve balance account established by a township
under section 5705.132 of the Revised Code shall not be
considered an unencumbered balance or revenue under division (E)
(3) or (4) of this section.
If a county, township, or municipal corporation has
created and maintains a nonexpendable trust fund under section
5705.131 of the Revised Code, the principal of the fund, and any
additions to the principal arising from sources other than the
reinvestment of investment earnings arising from such a fund,
shall not be considered an unencumbered balance or revenue under
division (E)(3) or (4) of this section. Only investment earnings
arising from investment of the principal or investment of such
additions to principal may be considered an unencumbered balance
or revenue under those divisions.
(F) The total expenditures calculated pursuant to division
(C) of this section, less the deductions authorized in divisions
(D) and (E) of this section, shall be known as the "relative
need" of the subdivision, for the purposes of this section.
(G) The budget commission shall total the relative need of
all participating subdivisions in the county, and shall compute
a relative need factor by dividing the total estimate of the
undivided local government fund by the total relative need of
all participating subdivisions.
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1341 H. B. No. 118 Page 47
As Introduced
(H) The relative need of each subdivision shall be
multiplied by the relative need factor to determine the
proportionate share of the subdivision in the undivided local
government fund of the county; provided, that the maximum
proportionate share of a county shall not exceed the following
maximum percentages of the total estimate of the undivided local
government fund governed by the relationship of the percentage
of the population of the county that resides within municipal
corporations within the county to the total population of the
county as reported in the reports on population in Ohio by the
department of development as of the twentieth day of July of the
year in which the tax budget is filed with the budget
commission:
1 2
A Percentage of municipal population
within the county:
Percentage share of the county
shall not exceed:
B Less than forty-one per cent Sixty per cent
C Forty-one per cent or more but less
than eighty-one per cent
Fifty per cent
D Eighty-one per cent or more Thirty per cent
Where the proportionate share of the county exceeds the
limitations established in this division, the budget commission
shall adjust the proportionate shares determined pursuant to
this division so that the proportionate share of the county does
not exceed these limitations, and it shall increase the
proportionate shares of all other subdivisions on a pro rata
basis. In counties having a population of less than one hundred
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1362 H. B. No. 118 Page 48
As Introduced
thousand, not less than ten per cent shall be distributed to the
townships therein.
(I) The proportionate share of each subdivision in the
undivided local government fund determined pursuant to division
(H) of this section for any calendar year shall not be less than
the product of the average of the percentages of the undivided
local government fund of the county as apportioned to that
subdivision for the calendar years 1968, 1969, and 1970,
multiplied by the total amount of the undivided local government
fund of the county apportioned pursuant to former section
5739.23 of the Revised Code for the calendar year 1970. For the
purposes of this division, the total apportioned amount for the
calendar year 1970 shall be the amount actually allocated to the
county in 1970 from the state collected intangible tax as levied
by section 5707.03 of the Revised Code and distributed pursuant
to section 5725.24 of the Revised Code, plus the amount received
by the county in the calendar year 1970 pursuant to division (B)
(1) of former section 5739.21 of the Revised Code, and
distributed pursuant to former section 5739.22 of the Revised
Code. If the total amount of the undivided local government fund
for any calendar year is less than the amount of the undivided
local government fund apportioned pursuant to former section
5739.23 of the Revised Code for the calendar year 1970, the
minimum amount guaranteed to each subdivision for that calendar
year pursuant to this division shall be reduced on a basis
proportionate to the amount by which the amount of the undivided
local government fund for that calendar year is less than the
amount of the undivided local government fund apportioned for
the calendar year 1970.
(J) On the basis of such apportionment, the county auditor
shall compute the percentage share of each such subdivision in
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1393 H. B. No. 118 Page 49
As Introduced
the undivided local government fund and shall at the same time
certify to the tax commissioner the percentage share of the
county as a subdivision. No payment shall be made from the
undivided local government fund, except in accordance with such
percentage shares.
Within ten days after the budget commission has made its
apportionment, whether conducted pursuant to section 5747.51 or
5747.53 of the Revised Code, the auditor shall publish a list of
the subdivisions and the amount each is to receive from the
undivided local government fund and the percentage share of each
subdivision, in a newspaper or newspapers of countywide
circulation, and send a copy of such allocation to the tax
commissioner.
The county auditor shall also send a copy of such
allocation by ordinary or electronic mail to the fiscal officer
of each subdivision entitled to participate in the allocation of
the undivided local government fund of the county. This copy
shall constitute the official notice of the commission action
referred to in section 5705.37 of the Revised Code.
All money received into the treasury of a subdivision from
the undivided local government fund in a county treasury shall
be paid into the general fund and used for the current operating
expenses of the subdivision.
If a municipal corporation maintains a municipal
university, such municipal university, when the board of
trustees so requests the legislative authority of the municipal
corporation, shall participate in the money apportioned to such
municipal corporation from the total local government fund,
however created and constituted, in such amount as requested by
the board of trustees, provided such sum does not exceed nine
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1423 H. B. No. 118 Page 50
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per cent of the total amount paid to the municipal corporation.
If any public official fails to maintain the records
required by sections 5747.50 to 5747.55 of the Revised Code or
by the rules issued by the tax commissioner, the auditor of
state, or the treasurer of state pursuant to such sections, or
fails to comply with any law relating to the enforcement of such
sections, the local government fund money allocated to the
county may be withheld until such time as the public official
has complied with such sections or such law or the rules issued
pursuant thereto.
Sec. 5747.53. (A) As used in this section:
(1) "City, located wholly or partially in the county, with
the greatest population" means the city, located wholly or
partially in the county, with the greatest population residing
in the county; however, if the county budget commission on or
before January 1, 1998, adopted an alternative method of
apportionment that was approved by the legislative authority of
the city, located partially in the county, with the greatest
population but not the greatest population residing in the
county, "city, located wholly or partially in the county, with
the greatest population" means the city, located wholly or
partially in the county, with the greatest population whether
residing in the county or not, if this alternative meaning is
adopted by action of the board of county commissioners and a
majority of the boards of township trustees and legislative
authorities of municipal corporations located wholly or
partially in the county.
(2) "Participating political subdivision" means a
municipal corporation or township that satisfies all of the
following:
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1453 H. B. No. 118 Page 51
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(a) It is located wholly or partially in the county.
(b) It is not the city, located wholly or partially in the
county, with the greatest population.
(c) Undivided local government fund moneys are apportioned
to it under the county's alternative method or formula of
apportionment in the current calendar year.
(B) In lieu of the method of apportionment of the
undivided local government fund of the county provided by
section 5747.51 of the Revised Code, the county budget
commission may provide for the apportionment of the fund under
an alternative method or on a formula basis as authorized by
this section. The commissioner shall reduce the amount of funds
from the undivided local government fund to a subdivision
required to receive reduced funds under section 5747.502 or
5747.504 of the Revised Code.
Except as otherwise provided in division (C) of this
section, the alternative method of apportionment shall have
first been approved by all of the following governmental units:
the board of county commissioners; the legislative authority of
the city, located wholly or partially in the county, with the
greatest population; and a majority of the boards of township
trustees and legislative authorities of municipal corporations,
located wholly or partially in the county, excluding the
legislative authority of the city, located wholly or partially
in the county, with the greatest population. In granting or
denying approval for an alternative method of apportionment, the
board of county commissioners, boards of township trustees, and
legislative authorities of municipal corporations shall act by
motion. A motion to approve shall be passed upon a majority vote
of the members of a board of county commissioners, board of
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As Introduced
township trustees, or legislative authority of a municipal
corporation, shall take effect immediately, and need not be
published.
Any alternative method of apportionment adopted and
approved under this division shall be reviewed by the county
budget commission at a public hearing held at least once in the
year following the effective date of this amendment October 3,
2023, and in every fifth year thereafter. The county budget
commission shall provide reasonable advance notice of the
hearing to all political subdivisions eligible to participate in
the fund and shall take public testimony from any such political
subdivision that wishes to testify.
Any alternative method of apportionment adopted and
approved under this division may be revised, amended, or
repealed in the same manner as it may be adopted and approved.
If an alternative method of apportionment adopted and approved
under this division is repealed, the undivided local government
fund of the county shall be apportioned among the subdivisions
eligible to participate in the fund, commencing in the ensuing
calendar year, under the apportionment provided in section
5747.52 of the Revised Code, unless the repeal occurs by
operation of division (C) of this section or a new method for
apportionment of the fund is provided in the action of repeal.
(C) This division applies only in counties in which the
city, located wholly or partially in the county, with the
greatest population has a population of twenty thousand or less
and a population that is less than fifteen per cent of the total
population of the county. In such a county, the legislative
authorities or boards of township trustees of two or more
participating political subdivisions, which together have a
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1513 H. B. No. 118 Page 53
As Introduced
population residing in the county that is a majority of the
total population of the county, each may adopt a resolution to
exclude the approval otherwise required of the legislative
authority of the city, located wholly or partially in the
county, with the greatest population. All of the resolutions to
exclude that approval shall be adopted not later than the first
Monday of August of the year preceding the calendar year in
which distributions are to be made under an alternative method
of apportionment.
A motion granting or denying approval of an alternative
method of apportionment under this division shall be adopted by
a majority vote of the members of the board of county
commissioners and by a majority vote of a majority of the boards
of township trustees and legislative authorities of the
municipal corporations located wholly or partially in the
county, other than the city, located wholly or partially in the
county, with the greatest population, shall take effect
immediately, and need not be published. The alternative method
of apportionment under this division shall be adopted and
approved annually, not later than the first Monday of August of
the year preceding the calendar year in which distributions are
to be made under it. A motion granting approval of an
alternative method of apportionment under this division repeals
any existing alternative method of apportionment, effective with
distributions to be made from the fund in the ensuing calendar
year. An alternative method of apportionment under this division
shall not be revised or amended after the first Monday of August
of the year preceding the calendar year in which distributions
are to be made under it.
(D) In determining an alternative method of apportionment
authorized by this section, the county budget commission may
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As Introduced
include in the method any factor considered to be appropriate
and reliable, in the sole discretion of the county budget
commission.
(E) The limitations set forth in section 5747.51 of the
Revised Code, stating the maximum amount that the county may
receive from the undivided local government fund and the minimum
amount the townships in counties having a population of less
than one hundred thousand may receive from the fund, are
applicable to any alternative method of apportionment authorized
under this section.
(F) On the basis of any alternative method of
apportionment adopted and approved as authorized by this
section, as certified by the auditor to the county treasurer,
the county treasurer shall make distribution of the money in the
undivided local government fund to each subdivision eligible to
participate in the fund, and the auditor, when the amount of
those shares is in the custody of the treasurer in the amounts
so computed to be due the respective subdivisions, shall at the
same time certify to the tax commissioner the percentage share
of the county as a subdivision. All money received into the
treasury of a subdivision from the undivided local government
fund in a county treasury shall be paid into the general fund
and used for the current operating expenses of the subdivision.
If a municipal corporation maintains a municipal university, the
university, when the board of trustees so requests the
legislative authority of the municipal corporation, shall
participate in the money apportioned to the municipal
corporation from the total local government fund, however
created and constituted, in the amount requested by the board of
trustees, provided that amount does not exceed nine per cent of
the total amount paid to the municipal corporation.
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As Introduced
(G) The actions of the county budget commission taken
pursuant to this section are final and may not be appealed to
the board of tax appeals, except on the issues of abuse of
discretion and failure to comply with the formula.
Sec. 5747.98. (A) To provide a uniform procedure for
calculating a taxpayer's aggregate tax liability under section
5747.02 of the Revised Code, a taxpayer shall claim any credits
to which the taxpayer is entitled in the following order:
Either the retirement income credit under division (B) of
section 5747.055 of the Revised Code or the lump sum retirement
income credits under divisions (C), (D), and (E) of that
section;
Either the senior citizen credit under division (F) of
section 5747.055 of the Revised Code or the lump sum
distribution credit under division (G) of that section;
The dependent care credit under section 5747.054 of the
Revised Code;
The credit for displaced workers who pay for job training
under section 5747.27 of the Revised Code;
The campaign contribution credit under section 5747.29 of
the Revised Code;
The twenty-dollar personal exemption credit under section
5747.022 of the Revised Code;
The joint filing credit under division (G)(E) of section
5747.05 of the Revised Code;
The earned income credit under section 5747.71 of the
Revised Code;
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As Introduced
The nonrefundable credit for education expenses under
section 5747.72 of the Revised Code;
The nonrefundable credit for donations to scholarship
granting organizations under section 5747.73 of the Revised
Code;
The nonrefundable credit for tuition paid to a
nonchartered nonpublic school under section 5747.75 of the
Revised Code;
The nonrefundable vocational job credit under section
5747.057 of the Revised Code;
The nonrefundable job retention credit under division (B)
of section 5747.058 of the Revised Code;
The enterprise zone credit under section 5709.66 of the
Revised Code;
The credit for beginning farmers who participate in a
financial management program under division (B) of section
5747.77 of the Revised Code;
The credit for commercial vehicle operator training
expenses under section 5747.82 of the Revised Code;
The nonrefundable welcome home Ohio (WHO) program credit
under section 122.633 of the Revised Code;
The credit for selling or renting agricultural assets to
beginning farmers under division (A) of section 5747.77 of the
Revised Code;
The credit for purchases of qualifying grape production
property under section 5747.28 of the Revised Code;
The small business investment credit under section 5747.81
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1629 H. B. No. 118 Page 57
As Introduced
of the Revised Code;
The nonrefundable lead abatement credit under section
5747.26 of the Revised Code;
The opportunity zone investment credit under section
5747.86 of the Revised Code;
The enterprise zone credits under section 5709.65 of the
Revised Code;
The research and development credit under section 5747.331
of the Revised Code;
The credit for rehabilitating a historic building under
section 5747.76 of the Revised Code;
The nonrefundable Ohio low-income housing tax credit under
section 5747.83 of the Revised Code;
The nonrefundable affordable single-family home credit
under section 5747.84 of the Revised Code;
The nonresident credit under division (A) of section
5747.05 of the Revised Code;
The credit for a resident's out-of-state income under
division (B) of section 5747.05 of the Revised Code;
The refundable motion picture and broadway theatrical
production credit under section 5747.66 of the Revised Code;
The refundable credit for film and theater capital
improvement projects under section 5747.67 of the Revised Code;
The refundable jobs creation credit or job retention
credit under division (A) of section 5747.058 of the Revised
Code;
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As Introduced
The refundable credit for taxes paid by a qualifying
entity granted under section 5747.059 of the Revised Code;
The refundable credits for taxes paid by a qualifying
pass-through entity granted under division (I) of section
5747.08 of the Revised Code;
The refundable credit under section 5747.80 of the Revised
Code for losses on loans made to the Ohio venture capital
program under sections 150.01 to 150.10 of the Revised Code;
The refundable credit for rehabilitating a historic
building under section 5747.76 of the Revised Code;
The refundable credit under section 5747.39 of the Revised
Code for taxes levied under section 5747.38 of the Revised Code
paid by an electing pass-through entity ;
The refundable lead abatement credit under section 5747.26
of the Revised Code.
(B) For any credit, except the refundable credits
enumerated in this section and the credit granted under division
(H) of section 5747.08 of the Revised Code, the amount of the
credit for a taxable year shall not exceed the taxpayer's
aggregate amount of tax due under section 5747.02 of the Revised
Code, after allowing for any other credit that precedes it in
the order required under this section. Any excess amount of a
particular credit may be carried forward if authorized under the
section creating that credit. Nothing in this chapter shall be
construed to allow a taxpayer to claim, directly or indirectly,
a credit more than once for a taxable year.
Section 2. That existing sections 3742.01, 3742.03,
3742.39, 3742.50, 5747.08, 5747.26, 5747.50, 5747.502, 5747.51,
5747.53, and 5747.98 of the Revised Code are hereby repealed.
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As Introduced
Section 3. Section 5747.53 of the Revised Code is
presented in this act as a composite of the section as amended
by H.B. 33 of the 135th General Assembly and H.B. 62 of the
133rd General Assembly. The General Assembly, applying the
principle stated in division (B) of section 1.52 of the Revised
Code that amendments are to be harmonized if reasonably capable
of simultaneous operation, finds that the composite is the
resulting version of the section in effect prior to the
effective date of the section as presented in this act.
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