As Introduced
136th General Assembly
Regular Session S. B. No. 28
2025-2026
Senators Blessing, Antonio
Cosponsors: Senators Craig, Hicks-Hudson, Weinstein
A B I LL
To amend sections 131.02, 319.202, 715.013,
4303.26, 5703.052, 5703.053, 5703.19, 5703.263,
5703.50, 5703.70, 5703.77, 5703.90, 5725.26, and
5751.051 and to enact sections 5747.081,
5755.01, 5755.011, 5755.02, 5755.03, 5755.04,
5755.05, 5755.051, 5755.052, 5755.06, 5755.07,
and 5755.99 of the Revised Code to levy a tax on
certain high-volume landlords.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 131.02, 319.202, 715.013,
4303.26, 5703.052, 5703.053, 5703.19, 5703.263, 5703.50,
5703.70, 5703.77, 5703.90, 5725.26, and 5751.051 be amended and
sections 5747.081, 5755.01, 5755.011, 5755.02, 5755.03, 5755.04,
5755.05, 5755.051, 5755.052, 5755.06, 5755.07, and 5755.99 of
the Revised Code be enacted to read as follows:
Sec. 131.02. (A) Except as otherwise provided in section
4123.37, section 5703.061, and division (K) of section 4123.511
of the Revised Code, whenever any amount is payable to the
state, the officer, employee, or agent responsible for
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administering the law under which the amount is payable shall
immediately proceed to collect the amount or cause the amount to
be collected and shall pay the amount into the state treasury or
into the appropriate custodial fund in the manner set forth
pursuant to section 113.08 of the Revised Code. Except as
otherwise provided in this division, if the amount is not paid
within forty-five days after payment is due, the officer,
employee, or agent shall certify the amount due to the attorney
general, in the form and manner prescribed by the attorney
general. In the case of an amount payable by a student enrolled
in a state institution of higher education, the amount shall be
certified within the later of forty-five days after the amount
is due or the tenth day after the beginning of the next academic
semester, quarter, or other session following the session for
which the payment is payable. The attorney general may assess
the collection cost to the amount certified in such manner and
amount as prescribed by the attorney general. If an amount
payable to a political subdivision is past due, the political
subdivision may, with the approval of the attorney general,
certify the amount to the attorney general pursuant to this
section.
For the purposes of this section, the attorney general and
the officer, employee, or agent responsible for administering
the law under which the amount is payable shall agree on the
time a payment is due, and that agreed upon time shall be one of
the following times:
(1) If a law, including an administrative rule, of this
state prescribes the time a payment is required to be made or
reported, when the payment is required by that law to be paid or
reported.
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(2) If the payment is for services rendered, when the
rendering of the services is completed.
(3) If the payment is reimbursement for a loss, when the
loss is incurred.
(4) In the case of a fine or penalty for which a law or
administrative rule does not prescribe a time for payment, when
the fine or penalty is first assessed.
(5) If the payment arises from a legal finding, judgment,
or adjudication order, when the finding, judgment, or order is
rendered or issued.
(6) If the payment arises from an overpayment of money by
the state to another person, when the overpayment is discovered.
(7) The date on which the amount for which an individual
is personally liable under section 5735.35, section 5739.33, or
division (G) of section 5747.07 of the Revised Code is
determined.
(8) Upon proof of claim being filed in a bankruptcy case.
(9) Any other appropriate time determined by the attorney
general and the officer, employee, or agent responsible for
administering the law under which the amount is payable on the
basis of statutory requirements or ordinary business processes
of the agency, institution, or political subdivision to which
the payment is owed.
(B)(1) The attorney general shall give immediate notice by
mail or otherwise to the party indebted of the nature and amount
of the indebtedness.
(2) If the amount payable to this state arises from a tax
levied under Chapter 5733., 5739., 5741., 5747., or 5751., or
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5755. of the Revised Code, the notice also shall specify all of
the following:
(a) The assessment or case number;
(b) The tax pursuant to which the assessment is made;
(c) The reason for the liability, including, if
applicable, that a penalty or interest is due;
(d) An explanation of how and when interest will be added
to the amount assessed;
(e) That the attorney general and tax commissioner, acting
together, have the authority, but are not required, to
compromise the claim and accept payment over a reasonable time,
if such actions are in the best interest of the state.
(C) The attorney general shall collect the claim or secure
a judgment and issue an execution for its collection.
(D) Each claim shall bear interest, from the day on which
the claim became due, at the rate per annum required by section
5703.47 of the Revised Code.
(E) The attorney general and the chief officer of the
agency reporting a claim, acting together, may do any of the
following if such action is in the best interests of the state:
(1) Compromise the claim;
(2) Extend for a reasonable period the time for payment of
the claim by agreeing to accept monthly or other periodic
payments. The agreement may require security for payment of the
claim.
(3) Add fees to recover the cost of processing checks or
other draft instruments returned for insufficient funds and the
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cost of providing electronic payment options.
(F)(1) Except as provided in division (F)(2) of this
section, if the attorney general finds, after investigation,
that any claim due and owing to the state is uncollectible, the
attorney general, with the consent of the chief officer of the
agency reporting the claim, may do the following:
(a) Sell, convey, or otherwise transfer the claim to one
or more private entities for collection;
(b) Cancel the claim or cause it to be canceled.
(2) The attorney general shall cancel or cause to be
canceled an unsatisfied claim on the date that is forty years
after the date the claim is certified, unless the attorney
general has adopted a rule under division (F)(5) of this section
shortening this time frame with respect to a subset of claims.
(3) No initial action shall be commenced to collect any
tax payable to the state that is administered by the tax
commissioner, whether or not such tax is subject to division (B)
of this section, or any penalty, interest, or additional charge
on such tax, after the expiration of the period ending on the
later of the dates specified in divisions (F)(3)(a) and (b) of
this section, provided that such period shall be extended by the
period of any stay to such collection or by any other period to
which the parties mutually agree. If the initial action in aid
of execution is commenced before the later of the dates
specified in divisions (F)(3)(a) and (b) of this section, any
and all subsequent actions may be pursued in aid of execution of
judgment for as long as the debt exists.
(a) Seven years after the assessment of the tax, penalty,
interest, or additional charge is issued.
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(b) Four years after the assessment of the tax, penalty,
interest, or additional charge becomes final. For the purposes
of division (F)(3)(b) of this section, the assessment becomes
final at the latest of the following: upon expiration of the
period to petition for reassessment, or if applicable, to appeal
a final determination of the commissioner or decision of the
board of tax appeals or a court, or, if applicable, upon
decision of the United States supreme court.
For the purposes of division (F)(3) of this section, an
initial action to collect a tax debt is commenced at the time
when a certified copy of the tax commissioner's entry making an
assessment final has been filed in the office of the clerk of
court of common pleas in the county in which the taxpayer
resides or has its principal place of business in this state, or
in the office of the clerk of court of common pleas of Franklin
county, as provided in section 5739.13, 5741.14, 5747.13, or
5751.09, or 5755.06 of the Revised Code or in any other
applicable law requiring such a filing. If an assessment has not
been issued and there is no time limitation on the issuance of
an assessment under applicable law, an action to collect a tax
debt commences when the action is filed in the courts of this
state to collect the liability.
(4) If information contained in a claim that is sold,
conveyed, or transferred to a private entity pursuant to this
section is confidential pursuant to federal law or a section of
the Revised Code that implements a federal law governing
confidentiality, such information remains subject to that law
during and following the sale, conveyance, or transfer.
(5) The attorney general may adopt rules to aid in the
implementation of this section.
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Sec. 319.202. (A) Before the county auditor indorses any
real property conveyance or manufactured or mobile home
conveyance presented to the auditor pursuant to section 319.20
of the Revised Code or registers any manufactured or mobile home
conveyance pursuant to section 4503.061 of the Revised Code, the
grantee or the grantee's representative shall submit, either
electronically or three written copies of, a statement, in the
form prescribed by the tax commissioner, and other information
as the county auditor may require, declaring the value of real
property or manufactured or mobile home conveyed, except that
when the transfer is exempt under division (G)(3) of section
319.54 of the Revised Code only a statement of the reason for
the exemption shall be required. Each statement submitted under
this section shall contain the information required under
divisions (A)(A)(1) and (B)(2) of this section. If a taxable
house is conveyed to a pass-through entity, the statement
submitted under this section shall include the name, address,
telephone number, and electronic mail address of the entity and
an owner, member, manager, officer, partner, or associate, as
applicable, of the entity.
(A)(1) Each statement submitted under this section shall
either:
(1)(a) Contain an affirmation by the grantee that the
grantor has been asked by the grantee or the grantee's
representative whether to the best of the grantor's knowledge
either the preceding or the current year's taxes on the real
property or the current or following year's taxes on the
manufactured or mobile home conveyed will be reduced under
division (A) of section 323.152 or under section 4503.065 of the
Revised Code and that the grantor indicated that to the best of
the grantor's knowledge the taxes will not be so reduced; or
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(2)(b) Be accompanied by a sworn or affirmed instrument
stating:
(a)(i) To the best of the grantor's knowledge the real
property or the manufactured or mobile home that is the subject
of the conveyance is eligible for and will receive a reduction
in taxes for or payable in the current year under division (A)
of section 323.152 or under section 4503.065 of the Revised Code
and that the reduction or reductions will be reflected in the
grantee's taxes;
(b)(ii) The estimated amount of such reductions that will
be reflected in the grantee's taxes;
(c)(iii) That the grantor and the grantee have considered
and accounted for the total estimated amount of such reductions
to the satisfaction of both the grantee and the grantor. The
auditor shall indorse the instrument, return it to the grantee
or the grantee's representative, and provide a copy of the
indorsed instrument to the grantor or the grantor's
representative.
(B)(2) Each statement submitted under this section shall
either:
(1) (a) Contain an affirmation by the grantee that the
grantor has been asked by the grantee or the grantee's
representative whether to the best of the grantor's knowledge
the real property conveyed qualified for the current
agricultural use valuation under section 5713.30 of the Revised
Code either for the preceding or the current year and that the
grantor indicated that to the best of the grantor's knowledge
the property conveyed was not so qualified; or
(2)(b) Be accompanied by a sworn or affirmed instrument
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stating:
(a)(i) To the best of the grantor's knowledge the real
property conveyed was qualified for the current agricultural use
valuation under section 5713.30 of the Revised Code either for
the preceding or the current year;
(b)(ii) To the extent that the property will not continue
to qualify for the current agricultural use valuation either for
the current or the succeeding year, that the property will be
subject to a recoupment charge equal to the tax savings in
accordance with section 5713.34 of the Revised Code;
(c)(iii) That the grantor and the grantee have considered
and accounted for the total estimated amount of such recoupment,
if any, to the satisfaction of both the grantee and the grantor.
The auditor shall indorse the instrument, forward it to the
grantee or the grantee's representative, and provide a copy of
the indorsed instrument to the grantor or the grantor's
representative.
(B) Within thirty days after the qualifying transfer of an
ownership interest in a pass-through entity, the transferor of
the ownership interest shall submit to the county auditor of
each county in which a taxable house owned by the entity is
located a statement that includes both of the following:
(1) The name, address, telephone number, and electronic
mail address of the entity and an owner, member, manager,
officer, partner, or associate, as applicable, of the entity
being transferred;
(2) The address and parcel identification number of the
taxable house or houses owned directly or indirectly by the
entity being transferred.
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(C) The grantor shall pay the fee required by division (G)
(3) of section 319.54 of the Revised Code; and, in the event the
board of county commissioners of the county has levied a real
property or a manufactured home transfer tax pursuant to Chapter
322. of the Revised Code, the amount required by the real
property or manufactured home transfer tax so levied. If the
conveyance is exempt from the fee provided for in division (G)
(3) of section 319.54 of the Revised Code and the tax, if any,
levied pursuant to Chapter 322. of the Revised Code, the reason
for such exemption shall be shown on the statement. "Value"
means, in the case of any deed or certificate of title not a
gift in whole or part, the amount of the full consideration
therefor, paid or to be paid for the real estate or manufactured
or mobile home described in the deed or title, including the
amount of any mortgage or vendor's lien thereon. If property
sold under a land installment contract is conveyed by the seller
under such contract to a third party and the contract has been
of record at least twelve months prior to the date of
conveyance, "value" means the unpaid balance owed to the seller
under the contract at the time of the conveyance, but the
statement shall set forth the amount paid under such contract
prior to the date of conveyance. In the case of a gift in whole
or part, "value" means the estimated price the real estate or
manufactured or mobile home described in the deed or certificate
of title would bring in the open market and under the then
existing and prevailing market conditions in a sale between a
willing seller and a willing buyer, both conversant with the
property and with prevailing general price levels. No person
shall willfully falsify the value of property conveyed.
(D) The auditor shall indorse each conveyance on its face
to indicate the amount of the conveyance fee and compliance with
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this section and if the property is residential rental property
include a statement that the grantee shall file with the county
auditor the information required under division (A) or (C) of
section 5323.02 of the Revised Code. The auditor shall retain
the original copy of the statement of value, forward to the tax
commissioner one copy on which shall be noted the most recent
assessed value of the property, and furnish one copy to the
grantee or the grantee's representative.
(E) In order to achieve uniform administration and
collection of the transfer fee required by division (G)(3) of
section 319.54 of the Revised Code, the tax commissioner shall
adopt and promulgate rules for the administration and
enforcement of the levy and collection of such fee.
(F) As used in this section , "residential :
(1) "Residential rental property" has the same meaning as
in section 5323.01 of the Revised Code.
(2) "Taxable house" has the same meaning as in section
5755.01 of the Revised Code.
(3) "Pass-through entity" has the same meaning as in
section 5733.04 of the Revised Code.
(4) "Qualifying transfer" means the transfer of more than
fifty per cent of the ownership interest in a pass-through
entity that, directly or indirectly, owns one or more taxable
houses. A "qualifying transfer" may occur in one transaction or
in a series of transactions.
Sec. 715.013. (A) Except as otherwise expressly authorized
by the Revised Code, no municipal corporation shall levy a tax
that is the same as or similar to a tax levied under Chapter
322., 3734., 3769., 4123., 4141., 4301., 4303., 4305., 4307.,
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4309., 5707., 5725., 5726., 5727., 5728., 5729., 5731., 5735.,
5736., 5737., 5739., 5741., 5743., 5747., 5749., or 5751., or
5755. of the Revised Code.
(B) No municipal corporation may impose any tax, fee,
assessment, or other charge on auxiliary containers, on the
sale, use, or consumption of such containers, or on the basis of
receipts received from the sale of such containers. As used in
this division, "auxiliary container" has the same meaning as in
section 3767.32 of the Revised Code.
(C) This section does not prohibit a municipal corporation
from levying an income tax or withholding tax in accordance with
Chapter 718. of the Revised Code, or a tax on any of the
following:
(1) Amounts received for admission to any place;
(2) The income of an electric company or combined company,
as defined in section 5727.01 of the Revised Code;
(3) On and after January 1, 2004, the income of a
telephone company, as defined in section 5727.01 of the Revised
Code.
Sec. 4303.26. (A) Applications for regular permits
authorized by sections 4303.02 to 4303.23 of the Revised Code
may be filed with the division of liquor control. No permit
shall be issued by the division until fifteen days after the
application for it is filed. An applicant for the issuance of a
new permit shall pay a processing fee of one hundred dollars
when filing application for the permit, if the permit is then
available, or shall pay the processing fee when a permit becomes
available, if it is not available when the applicant initially
files the application. When an application for a new class C or
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D permit is filed, when class C or D permits become available,
or when an application for transfer of ownership of a class C or
D permit or transfer of a location of a class C or D permit is
filed, no permit shall be issued, nor shall the location or the
ownership of a permit be transferred, by the division until the
division notifies the legislative authority of the municipal
corporation if the business or event is or is to be located
within the corporate limits of a municipal corporation, or the
clerk of the board of county commissioners and the fiscal
officer of the board of township trustees in the county in which
the business or event is or is to be conducted if the business
is or is to be located outside the corporate limits of a
municipal corporation, and an opportunity is provided officials
or employees of the municipal corporation or county and
township, who shall be designated by the legislative authority
or the board of county commissioners or board of township
trustees, for a complete hearing upon the advisability of the
issuance, transfer of ownership, or transfer of location of the
permit. In this hearing, no objection to the issuance, transfer
of ownership, or transfer of location of the permit shall be
based upon noncompliance of the proposed permit premises with
local zoning regulations which prohibit the sale of beer or
intoxicating liquor, in an area zoned for commercial or
industrial uses, for a permit premises that would otherwise
qualify for a proper permit issued by the division.
When the division sends notice to the legislative or
executive authority of the political subdivision, as required by
this section, the division shall also so notify, by certified
mail, return receipt requested, or by personal service, the
chief peace officer of the political subdivision. Upon the
request of the chief peace officer, the division shall send the
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chief peace officer a copy of the application for the issuance
or the transfer of ownership or location of the permit and all
other documents or materials filed by the applicant or
applicants in relation to the application. The chief peace
officer may appear and testify, either in person or through a
representative, at any hearing held on the advisability of the
issuance, transfer of ownership, or transfer of location of the
permit. The hearing shall be held in the central office of the
division, except that upon written request of the legislative
authority of the municipal corporation or the board of county
commissioners or board of township trustees, the hearing shall
be held in the county seat of the county where the applicant's
business is or is to be conducted.
If the business or event specified in an application for
the issuance, transfer of ownership, or transfer of location of
any regular permit authorized by sections 4303.02 to 4303.23 of
the Revised Code, except for an F-2 permit, is, or is to be
operated, within five hundred feet from the boundaries of a
parcel of real estate having situated on it a school, church,
library, public playground, or township park, no permit shall be
issued, nor shall the location or the ownership of a permit be
transferred, by the division until written notice of the filing
of the application with the division is served, by certified
mail, return receipt requested, or by personal service, upon the
authorities in control of the school, church, library, public
playground, or township park and an opportunity is provided them
for a complete hearing upon the advisability of the issuance,
transfer of ownership, or transfer of location of the permit. In
this hearing, no objection to the issuance, transfer of
ownership, or transfer of location of the permit shall be based
upon the noncompliance of the proposed permit premises with
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local zoning regulations which prohibit the sale of beer or
intoxicating liquor, in an area zoned for commercial or
industrial uses, for a permit premises that would otherwise
qualify for a proper permit issued by the division. Upon the
written request of any of these authorities, the hearing shall
be held in the county seat of the county where the applicant's
business is or is to be conducted.
A request for any hearing authorized by this section shall
be made no later than thirty days from the time of notification
by the division. This thirty-day period begins on the date the
division mails notice to the legislative authority or the date
on which the division mails notice to or, by personal service,
serves notice upon, the institution. The division shall conduct
a hearing if the request for the hearing is postmarked by the
deadline date. The division may allow, upon cause shown by the
requesting legislative authority or board, an extension of
thirty additional days for the legislative authority of the
municipal corporation, board of township trustees of the
township, or board of county commissioners of the county in
which a permit premises is or is to be located to object to the
issuance, transfer of ownership, or transfer of location of a
permit. The request for the extension shall be made by the
legislative authority or board to the division no later than
thirty days after the time of notification by the division.
(B) When an application for transfer of ownership of a
permit is filed with the division, the division shall give
notice of the application to the tax commissioner. Within twenty
days after receiving this notification, the commissioner shall
notify the division of liquor control and the proposed
transferee of the permit if the permit holder owes to this state
any delinquent horse-racing taxes, alcoholic beverage taxes,
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motor fuel taxes, petroleum activity taxes, sales or use taxes,
cigarette taxes, other tobacco product taxes, income taxes
withheld from employee compensation, commercial activity taxes,
gross casino revenue taxes, housing market impact taxes, or
gross receipts taxes levied pursuant to section 5739.101 of the
Revised Code, or has failed to file any corresponding returns or
submit any information required by the commissioner, as required
for such taxes, to the extent that any delinquent payment or
return, or any failure to submit information, is known to the
department of taxation at the time of the application. The
division shall not transfer ownership of the permit until
payments known to be delinquent are resolved, returns known to
be delinquent are filed, and any information required by the
commissioner has been provided. As used in this division,
"resolved" means that the delinquent payment has been paid in
full or an amount sufficient to satisfy the delinquent payment
is in escrow for the benefit of the state. The commissioner
shall notify the division of the resolution. After the division
has received the notification from the commissioner, the
division may proceed to transfer ownership of the permit.
Nothing in this division shall be construed to affect or limit
the responsibilities or liabilities of the transferor or the
transferee imposed by Chapter 3769., 4301., 4303., 4305., 5735.,
5736., 5739., 5741., 5743., 5747., 5751., or 5753., or 5755. of
the Revised Code.
(C) No F or F-2 permit shall be issued for an event until
the applicant has, by means of a form that the division shall
provide to the applicant, notified the chief peace officer of
the political subdivision in which the event will be conducted
of the date, time, place, and duration of the event.
(D) The division of liquor control shall notify an
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applicant for a permit authorized by sections 4303.02 to 4303.23
of the Revised Code of an action pending or judgment entered
against a liquor permit premises, of which the division has
knowledge, pursuant to section 3767.03 or 3767.05 of the Revised
Code if the applicant is applying for a permit at the location
of the premises that is the subject of the action under section
3767.03 or judgment under section 3767.05 of the Revised Code.
Sec. 5703.052. (A) There is hereby created in the state
treasury the tax refund fund, from which refunds shall be paid
for amounts illegally or erroneously assessed or collected, or
for any other reason overpaid, with respect to taxes levied by
Chapter 4301., 4305., 5726., 5728., 5729., 5731., 5733., 5735.,
5736., 5739., 5741., 5743., 5747., 5748., 5749., 5751., or
5753., or 5755. and sections 3737.71, 3905.35, 3905.36, 4303.33,
5707.03, 5725.18, 5727.28, 5727.38, 5727.81, and 5727.811 of the
Revised Code. Refunds for fees levied under sections 3734.90 to
3734.9014 of the Revised Code, wireless 9-1-1 charges imposed
under section 128.40 of the Revised Code, next generation 9-1-1
access fees imposed under sections 128.41 and 128.42 of the
Revised Code, or any penalties assessed with respect to such
fees or charges, that are illegally or erroneously assessed or
collected, or for any other reason overpaid, also shall be paid
from the fund. Refunds for amounts illegally or erroneously
assessed or collected by the tax commissioner, or for any other
reason overpaid, that are due under section 1509.50 of the
Revised Code shall be paid from the fund. Refunds for amounts
illegally or erroneously assessed or collected by the
commissioner, or for any other reason overpaid to the
commissioner, under sections 718.80 to 718.95 of the Revised
Code shall be paid from the fund. However, refunds for amounts
illegally or erroneously assessed or collected by the
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commissioner, or for any other reason overpaid to the
commissioner, with respect to taxes levied under section
5739.101 of the Revised Code shall not be paid from the tax
refund fund, but shall be paid as provided in section 5739.104
of the Revised Code.
(B)(1) Upon certification by the tax commissioner to the
treasurer of state of a tax refund, a wireless 9-1-1 charge
refund, a next generation 9-1-1 access fee refund, or another
amount refunded, or by the superintendent of insurance of a
domestic or foreign insurance tax refund, the treasurer of state
shall place the amount certified to the credit of the fund. The
certified amount transferred shall be derived from the receipts
of the same tax, fee, wireless 9-1-1 charge, next generation 9-
1-1 access fee, or other amount from which the refund arose.
(2) When a refund is for a tax, fee, wireless 9-1-1
charge, next generation 9-1-1 access fee, or other amount that
is not levied by the state or that was illegally or erroneously
distributed to a taxing jurisdiction, the tax commissioner shall
recover the amount of that refund from the next distribution of
that tax, fee, wireless 9-1-1 charge, next generation 9-1-1
access fee, or other amount that otherwise would be made to the
taxing jurisdiction. If the amount to be recovered would exceed
twenty-five per cent of the next distribution of that tax, fee,
wireless 9-1-1 charge, next generation 9-1-1 access fee, or
other amount, the commissioner may spread the recovery over more
than one future distribution, taking into account the amount to
be recovered and the amount of the anticipated future
distributions. In no event may the commissioner spread the
recovery over a period to exceed thirty-six months.
Sec. 5703.053. As used in this section, "postal service"
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means the United States postal service.
An application to the tax commissioner for a tax refund
under section 4307.05, 4307.07, 718.91, 5726.30, 5727.28,
5727.91, 5728.061, 5735.122, 5735.13, 5735.14, 5735.141,
5735.142, 5736.08, 5739.07, 5741.10, 5743.05, 5743.53, 5745.11,
5749.08, or 5751.08, or 5755.05 of the Revised Code or division
(B) of section 5703.05 of the Revised Code, or a fee refunded
under section 3734.905 of the Revised Code, that is received
after the last day for filing under such section shall be
considered to have been filed in a timely manner if:
(A) The application is delivered by the postal service and
the earliest postal service postmark on the cover in which the
application is enclosed is not later than the last day for
filing the application;
(B) The application is delivered by the postal service,
the only postmark on the cover in which the application is
enclosed was affixed by a private postal meter, the date of that
postmark is not later than the last day for filing the
application, and the application is received within seven days
of such last day; or
(C) The application is delivered by the postal service, no
postmark date was affixed to the cover in which the application
is enclosed or the date of the postmark so affixed is not
legible, and the application is received within seven days of
the last day for making the application.
Sec. 5703.19. (A) To carry out the purposes of the laws
that the tax commissioner is required to administer, the
commissioner or any person employed by the commissioner for that
purpose, upon demand, may inspect books, accounts, records, and
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memoranda of any person or public utility subject to those laws,
and may examine under oath any officer, agent, or employee of
that person or public utility. Any person other than the
commissioner who makes a demand pursuant to this section shall
produce the person's authority to make the inspection.
(B) If a person or public utility receives at least ten
days' written notice of a demand made under division (A) of this
section and refuses to comply with that demand, a penalty of
five hundred dollars shall be imposed upon the person or public
utility for each day the person or public utility refuses to
comply with the demand. Penalties imposed under this division
may be assessed and collected in the same manner as assessments
made under Chapter 3769., 4305., 5727., 5728., 5733., 5735.,
5736., 5739., 5743., 5745., 5747., 5749., 5751., or 5753., or
5755., or sections 718.90, 3734.90 to 3734.9014, of the Revised
Code.
Sec. 5703.263. (A)(1) "Tax return preparer" means any
person other than an accountant or an attorney that operates a
business that prepares, or directly or indirectly employs
another person to prepare, for a taxpayer a tax return or
application for refund in exchange for compensation or
remuneration from the taxpayer or the taxpayer's related member.
The preparation of a substantial portion of a tax return or
application for refund shall be considered to be the same as the
preparation of the return or application for refund. "Tax return
preparer" does not include an individual who performs only one
or more of the following activities:
(a) Furnishes typing, reproducing, or other mechanical
assistance;
(b) Prepares an application for refund or a return on
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behalf of an employer by whom the individual is regularly and
continuously employed, or on behalf of an officer or employee of
that employer;
(c) Prepares as a fiduciary an application for refund or a
return;
(d) Prepares an application for refund or a return for a
taxpayer in response to a notice of deficiency issued to the
taxpayer or the taxpayer's related member, or in response to a
waiver of restriction after the commencement of an audit of the
taxpayer or the taxpayer's related member.
(2) "Related member" has the same meaning as in section
5733.042 of the Revised Code.
(3) "Accountant" means any of the following:
(a) An individual who holds both a CPA certificate and an
Ohio permit or Ohio registration issued by the accountancy board
under section 4701.10 of the Revised Code;
(b) An individual who holds a foreign certificate;
(c) An individual who is employed by a public accounting
firm with respect to any return prepared under the supervision
of an individual described in division (A)(3)(a) or (b) of this
section, regardless of whether the public accounting firm is
required to register with the accountancy board under section
4701.04 of the Revised Code.
(4) "CPA certificate" and "foreign certificate" have the
same meanings as in section 4701.01 of the Revised Code.
(5) "Attorney" means an individual who has been admitted
to the bar by order of the supreme court in compliance with its
prescribed and published rules, is permitted to practice as an
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attorney and counselor at law in this state under Chapter 4705.
of the Revised Code, and is not currently suspended or removed
from such practice under that chapter.
(6) A tax return preparer engages in "prohibited conduct"
if the preparer does any of the following:
(a) Prepares any return or application for refund that
includes an understatement of a taxpayer's tax liability due to
an unreasonable position or due to willful or reckless conduct.
For the purposes of this division, "unreasonable position" and
"willful or reckless conduct" have the meanings as used in
section 6694 of the Internal Revenue Code.
(b) When required under any provision of Title LVII of the
Revised Code, the preparer fails to do any of the following:
(i) Provide copies of a return or application for refund;
(ii) Provide the preparer's signature or federal preparer
tax identification number on a return or application for refund;
(iii) Retain copies of the preparer's records;
(iv) Provide any information or documents requested by the
tax commissioner;
(v) Act diligently in determining a taxpayer's eligibility
for tax credits, deductions, or exemptions.
(c) Negotiates a check or other negotiable instrument
issued to a taxpayer by the department of taxation without the
permission of the taxpayer;
(d) Engages in any conduct subject to criminal penalties
under Title LVII of the Revised Code;
(e) Misrepresents the preparer's eligibility to file
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returns or applications for refund on behalf of taxpayers, or
otherwise misrepresents the preparer's experience or education;
(f) Guarantees the payment of any tax refund or the
allowance of any tax credit, deduction, or exemption;
(g) Engages in any other fraudulent or deceptive conduct
that substantially interferes with the proper administration of
any provision of Title LVII of the Revised Code.
(7) "State" means a state of the United States, the
District of Columbia, the commonwealth of Puerto Rico, or any
territory or possession of the United States.
(B) When a tax return preparer engages in prohibited
conduct, the commissioner, may do either or both of the
following:
(1) If the commissioner has previously warned the tax
return preparer in writing of the consequences of continuing to
engage in prohibited conduct, impose a penalty not exceeding one
hundred dollars per instance of prohibited conduct;
(2) Regardless of whether the commissioner has previously
warned the tax return preparer, request that the attorney
general apply to a court of competent jurisdiction for an
injunction to restrain the preparer from further engaging in the
prohibited conduct. The court may take either of the following
actions:
(a) If the court finds that injunctive relief is
appropriate to prevent the recurrence of the prohibited conduct,
the court shall issue an injunction against the preparer
enjoining the preparer from engaging in such conduct.
(b) If the court finds that the preparer has continually
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As Introduced
or repeatedly engaged in prohibited conduct, and that enjoining
the preparer solely from engaging in such conduct would not be
sufficient to prevent the preparer's interference with the
proper administration of any provision of Title LVII of the
Revised Code, the court may issue an injunction against the
preparer enjoining the preparer from acting as a tax return
preparer in this state.
If a tax return preparer has been enjoined from preparing
tax returns or applications for refunds by a federal court or by
another state court in the five years preceding the date on
which an injunction is requested under this section, that prior
injunction shall be sufficient to establish a prima facie case
for the issuance of an injunction under division (B)(2) of this
section.
(C) The commissioner may require a tax return preparer to
include the preparer's name and federal preparer tax
identification number when filing any return or application for
refund. If a tax return preparer fails to include this
information when required to do so by the commissioner, or if
the information provided is false, inaccurate, or incomplete,
the commissioner may impose a penalty of fifty dollars for each
such failure, provided that the maximum penalty imposed on a
preparer under this division in a calendar year shall not exceed
twenty-five thousand dollars.
(D) The penalties imposed under divisions (B)(1) and (C)
of this section may be assessed and collected in the same manner
as assessments made under Chapter 3769., 4305., 5727., 5728.,
5733., 5735., 5736., 5739., 5743., 5745., 5747., 5749., 5751.,
or 5753., or 5755., section 718.90, or sections 3734.90 to
3734.9014 of the Revised Code. The commissioner may abate all or
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As Introduced
a portion of any penalty imposed under this section upon the
showing of good cause by the tax return preparer.
Sec. 5703.50. As used in sections 5703.50 to 5703.53 of
the Revised Code:
(A) "Tax" includes only those taxes imposed on tangible
personal property listed in accordance with Chapter 5711. of the
Revised Code, taxes imposed under Chapters 5733., 5736., 5739.,
5741., 5747., and 5751., and 5755. of the Revised Code, and the
tax administered under sections 718.80 to 718.95 of the Revised
Code.
(B) "Taxpayer" means a person subject to or potentially
subject to a tax including an employer required to deduct and
withhold any amount under section 5747.06 of the Revised Code.
(C) "Audit" means the examination of a taxpayer or the
inspection of the books, records, memoranda, or accounts of a
taxpayer for the purpose of determining liability for a tax.
(D) "Assessment" means a notice of underpayment or
nonpayment of a tax issued pursuant to section 718.90, 5711.26,
5711.32, 5733.11, 5736.09, 5739.13, 5741.11, 5741.13, 5747.13,
or 5751.09, or 5755.06 of the Revised Code.
(E) "County auditor" means the auditor of the county in
which the tangible personal property subject to a tax is
located.
Sec. 5703.70. (A) On the filing of an application for
refund under section 718.91, 3734.905, 4307.05, 4307.07,
5726.30, 5727.28, 5727.91, 5728.061, 5733.12, 5735.122, 5735.13,
5735.14, 5735.141, 5735.142, 5735.18, 5736.08, 5739.07,
5739.071, 5739.104, 5741.10, 5743.05, 5743.53, 5747.11, 5749.08,
5751.08, or 5753.06, 5755.05 of the Revised Code, or an
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726 S. B. No. 28 Page 26
As Introduced
application for compensation under section 5739.061 of the
Revised Code, if the tax commissioner determines that the amount
of the refund or compensation to which the applicant is entitled
is less than the amount claimed in the application, the
commissioner shall give the applicant written notice by ordinary
mail of the amount. The notice shall be sent to the address
shown on the application unless the applicant notifies the
commissioner of a different address. The applicant shall have
sixty days from the date the commissioner mails the notice to
provide additional information to the commissioner or request a
hearing, or both.
(B) If the applicant neither requests a hearing nor
provides additional information to the tax commissioner within
the time prescribed by division (A) of this section, the
commissioner shall take no further action, and the refund or
compensation amount denied becomes final.
(C)(1) If the applicant requests a hearing within the time
prescribed by division (A) of this section, the tax commissioner
shall assign a time and place for the hearing and notify the
applicant of such time and place, but the commissioner may
continue the hearing from time to time, as necessary. After the
hearing, the commissioner may make such adjustments to the
refund or compensation as the commissioner finds proper, and
shall issue a final determination thereon.
(2) If the applicant does not request a hearing, but
provides additional information, within the time prescribed by
division (A) of this section, the commissioner shall review the
information, make such adjustments to the refund or compensation
as the commissioner finds proper, and issue a final
determination thereon. The commissioner may review such
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As Introduced
information and make such adjustments as many times as the
commissioner finds proper before the issuance of a final
determination.
(3) If the applicant requests a hearing and provides
additional information within the time prescribed by division
(A) of this section, the commissioner may review the information
and make such adjustments to the refund or compensation as the
commissioner finds proper. The commissioner may review such
information and make such adjustments as many times as the
commissioner finds proper before the issuance of a final
determination.
The commissioner shall assign a time and place for the
hearing and notify the applicant of such time and place, but the
commissioner may continue the hearing from time to time, as
necessary. After the hearing, the commissioner may make any
additional adjustments to the refund or compensation as the
commissioner finds proper and shall issue a final determination
thereon.
(4) The commissioner shall serve a copy of the final
determination made under division (C)(1), (2), or (3) of this
section on the applicant in the manner provided in section
5703.37 of the Revised Code, and the decision is final, subject
to appeal under section 5717.02 of the Revised Code.
(D) The tax commissioner shall certify to the director of
budget and management and treasurer of state for payment from
the tax refund fund created by section 5703.052 of the Revised
Code, the amount of the refund to be refunded under division (B)
or (C) of this section. The commissioner also shall certify to
the director and treasurer of state for payment from the general
revenue fund the amount of compensation to be paid under
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As Introduced
division (B) or (C) of this section.
Sec. 5703.77. (A) As used in this section:
(1) "Taxpayer" means a person subject to or previously
subject to a tax or fee, a person that remits a tax or fee, or a
person required to or previously required to withhold or collect
and remit a tax or fee on behalf of another person.
(2) "Tax or fee" means a tax or fee administered by the
tax commissioner.
(3) "Credit account balance" means the amount that a
taxpayer remits to the state in excess of the amount required to
be remitted, after accounting for factors applicable to the
taxpayer such as accelerated payments, estimated payments, tax
credits, and tax credit balances that may be carried forward.
(4) "Tax debt" means an unpaid tax or fee or any unpaid
penalty, interest, or additional charge on such a tax or fee due
the state.
(B) As soon as practicable, but not later than sixty days
before the expiration of the period of time during which a
taxpayer may file a refund application for a tax or fee, the tax
commissioner shall review the taxpayer's accounts for the tax or
fee and notify the taxpayer of any credit account balance for
which the commissioner is required to issue a refund if the
taxpayer were to file a refund application for that balance,
regardless of whether the taxpayer files a refund application or
amended return with respect to that tax or fee. The notice shall
be made using contact information for the taxpayer on file with
the commissioner.
(C) Notwithstanding sections 128.47, 718.91, 3734.905,
4307.05, 5726.30, 5727.28, 5727.42, 5727.91, 5728.061, 5735.122,
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815 S. B. No. 28 Page 29
As Introduced
5736.08, 5739.07, 5739.104, 5741.10, 5743.05, 5743.53, 5747.11,
5749.08, 5751.08, 5753.06, 5755.05, and any other section of the
Revised Code governing refunds, the commissioner may apply the
amount of any credit account balance for which the commissioner
is required to issue a refund if the taxpayer were to file a
refund application for that balance as a credit against the
taxpayer's liability for the tax or fee in the taxpayer's next
reporting period for that tax or fee or issue a refund of that
credit account balance to the taxpayer, subject to division (D)
of this section.
(D) Before issuing a refund to a taxpayer under division
(C) of this section, the tax commissioner shall withhold from
that refund the amount of any of the taxpayer's tax debt
certified to the attorney general under section 131.02 of the
Revised Code and the amount of the taxpayer's liability, if any,
for a tax debt. The commissioner shall apply any amount withheld
first in satisfaction of the amount of the taxpayer's certified
tax debt and then in satisfaction of the taxpayer's liability.
If the credit account balance originates from the tax
administered under sections 718.80 to 718.95 of the Revised
Code, it may be applied only against the taxpayer's certified
tax debt or tax liability due under those sections.
(E) The tax commissioner may adopt rules to administer
this section.
Sec. 5703.90. If any tax administered by the tax
commissioner remains unpaid after the date the tax is due, the
commissioner may issue an assessment for the unpaid tax, and for
any related penalties and interest, against any person liable
for the amount due, including, but not limited to, a person that
is jointly and severally liable for the amount under Chapter
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As Introduced
5726. or , 5751., or 5755. of the Revised Code, a partner liable
for the tax liability of a partnership, a director liable for
the tax liability of a dissolved corporation, or any other
person liable for the tax liability of another person under the
Revised Code. The commissioner shall issue the assessment in
accordance with any other provision of the Revised Code
applicable to assessments for the tax for which the person to be
assessed is liable.
Sec. 5725.26. The real estate of a financial institution
or dealer in intangibles shall be taxed in the place where it is
located, the same as the real estate of persons is taxed, but
the taxes provided for in Chapters 5725., 5726., 5733., and
5751., and 5755. of the Revised Code shall be in lieu of all
other taxes on the other property and assets of such institution
or dealer, except personal property taxable under Chapter 5711.
of the Revised Code and leased, or held for the purpose of
leasing, to others if the owner or lessor of the property
acquired it for the sole purpose of leasing it to others.
For reports required to be filed under section 5725.14 of
the Revised Code in 2003 and thereafter, nothing in this section
shall be construed to exempt the property of any dealer in
intangibles under section 5725.13 of the Revised Code from the
tax imposed under section 5707.03 of the Revised Code.
Sec. 5747.081. If any portion of a taxpayer's income or
loss reported on the annual return required by section 5747.08
of the Revised Code is attributable to ownership, by any person,
of a taxable house, as defined in section 5755.01 of the Revised
Code, located in this state, the taxpayer shall include on the
annual return on which such income or losses are reported the
parcel identification number of each such house and identify the
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As Introduced
county in which the house is located.
Sec. 5751.051. (A) Not later than the tenth day of the
second month after the end of each calendar quarter, every
taxpayer shall file with the tax commissioner a tax return in
such form as the commissioner prescribes. The return shall
include, but is not limited to, the amount of the taxpayer's
taxable gross receipts for the calendar quarter and shall
indicate the amount of tax due under section 5751.03 of the
Revised Code for the calendar quarter. If any portion of a
taxpayer's taxable gross receipts is attributable to ownership,
by any person, of a taxable house, as defined in section 5755.01
of the Revised Code, located in this state, the return shall
include the parcel identification number of each such house and
identify the county in which the house is located.
(B)(1) Subject to division (B) of section 5751.05 of the
Revised Code, a taxpayer shall report the taxable gross receipts
for that calendar quarter.
(2) With respect to taxable gross receipts incorrectly
reported in a calendar quarter that has a lower tax rate, the
tax shall be computed at the tax rate in effect for the
quarterly return in which such receipts should have been
reported. Nothing in division (B)(2) of this section prohibits a
taxpayer from filing an application for refund under section
5751.08 of the Revised Code with regard to the incorrect
reporting of taxable gross receipts discovered after filing the
annual return described in division (C) of this section.
A tax return shall not be deemed to be an incorrect
reporting of taxable gross receipts for the purposes of division
(B)(2) of this section if the return reflects between ninety-
five and one hundred five per cent of the actual taxable gross
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905 S. B. No. 28 Page 32
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receipts for the calendar quarter.
(C) For the purposes of division (B)(2) of this section,
the tax return filed for the fourth calendar quarter of a
calendar year is the annual return for the privilege tax imposed
by this chapter. Such return shall report any additional taxable
gross receipts not previously reported in the calendar year and
shall adjust for any over-reported taxable gross receipts in the
calendar year. If the taxpayer ceases to be a taxpayer before
the end of the calendar year, the last return the taxpayer is
required to file shall be the annual return for the taxpayer and
the taxpayer shall report any additional taxable gross receipts
not previously reported in the calendar year and shall adjust
for any over-reported taxable gross receipts in the calendar
year.
(D) Because the tax imposed by this chapter is a privilege
tax, the tax rate with respect to taxable gross receipts for a
calendar quarter is not fixed until the end of the measurement
period for each calendar quarter. Subject to division (B)(2) of
this section, the total amount of taxable gross receipts
reported for a given calendar quarter shall be subject to the
tax rate in effect in that quarter.
Sec. 5755.01. As used in this chapter:
(A) "Taxable house" means a single-family, two-family, or
three-family dwelling.
(B) "Person" means an individual, receiver, assignee,
trustee in bankruptcy, firm, company, joint-stock company,
business trust, estate, partnership, limited liability
partnership, limited liability company, association, joint
venture, club, society, for-profit corporation, S corporation,
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As Introduced
qualified subchapter S subsidiary, qualified subchapter S trust,
trust, entity that is disregarded for federal income tax
purposes, and any other entity.
(C) "Combined taxpayer group" means a group of two or more
persons treated as a single taxpayer for purposes of this
chapter under section 5755.011 of the Revised Code.
(D) "Taxpayer" means any person or combined taxpayer group
subject to the tax levied under section 5755.02 of the Revised
Code. "Taxpayer" does not include an excluded person.
(E) "Excluded person" means any of the following:
(1) A county land reutilization corporation organized
under Chapter 1724. of the Revised Code;
(2) A port authority organized under Chapter 4582. of the
Revised Code;
(3) An organization described under section 501(c)(3) of
the Internal Revenue Code and exempt from federal income
taxation under section 501(a) of the Internal Revenue Code.
(F) "Reporting person" means a person in a combined
taxpayer group that is designated by that group to legally bind
the group for all filings and tax liabilities and to receive all
legal notices with respect to matters under this chapter.
(G) "Tax period" means a calendar month.
Sec. 5755.011. (A) All persons, except an excluded person,
having more than fifty per cent of the value of their ownership
interest owned or controlled, directly or constructively through
related interests, by common owners during all or any portion of
the tax period, together with the common owners, shall be
members of a combined taxpayer group.
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962 S. B. No. 28 Page 34
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(B) A combined taxpayer group shall file returns and pay
taxes under this chapter as a single taxpayer.
(C) In the case of one or more persons formed under
Chapter 1706. of the Revised Code or under the laws of any state
or of the United States as a limited liability company and
series thereof, such limited liability company and any series
thereof, if owned or shared by the same holding company or that
have joint corporate or common control, shall file as a combined
taxpayer group for the tax period.
(D) All members of a combined taxpayer group during the
tax period or periods for which additional tax, penalty, or
interest is owed are jointly and severally liable for such
amounts. Although the reporting person will be assessed for the
liability, such amounts due may be collected by assessment
against any member of the group as provided in section 5703.90
of the Revised Code or pursued against any member of the group
when a liability is certified to the attorney general under
section 131.02 of the Revised Code.
Sec. 5755.02. For the purpose of funding the needs of this
state and its local governments, there is hereby levied a
housing market impact tax on each person or combined taxpayer
group owning fifty or more taxable houses in any county. The tax
levied under this section shall equal two thousand dollars for
each taxable house owned on the first day of each tax period.
To the extent a county auditor is aware of a person's
liability for the tax levied under this section due to ownership
of the requisite number of taxable houses in the county, the
auditor shall notify the person on such a person's tax bill
prepared and mailed or delivered under section 323.13 of the
Revised Code that the person may be subject to the tax levied
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As Introduced
under this section.
Sec. 5755.03. (A) A taxpayer or, in the case of a combined
taxpayer group, the reporting person, on or before the twenty-
first day of each month, shall make and file a return for the
preceding tax period on a form prescribed by the tax
commissioner and shall pay the tax shown on the return to be
due. If required by the tax commissioner, a taxpayer shall file
the tax return electronically. The commissioner may require
taxpayers to use the Ohio business gateway as defined in section
718.01 of the Revised Code to file returns and remit the tax, or
may provide another means for taxpayers to file and remit the
tax electronically.
(B) A person required by this section to remit taxes or
file returns electronically may apply to the commissioner, on a
form prescribed by the commissioner, to be excused from that
requirement. The commissioner may excuse a person from that
requirement for good cause.
(C)(1) The housing market impact tax revenue fund is
hereby created in the state treasury, which shall consist of all
money collected from the tax levied under section 5755.02 of the
Revised Code.
(2) From the housing market impact tax revenue fund the
director of budget and management shall transfer as needed to
the tax refund fund amounts equal to the refunds certified by
the tax commissioner under section 5755.05 of the Revised Code
and attributable to the tax levied under section 5755.02 of the
Revised Code.
(3) After making any transfers required by division (C)(2)
of this section, but not later than the twenty-eighth day of
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1021 S. B. No. 28 Page 36
As Introduced
each month, the director of budget and management shall transfer
fifty per cent of the balance of the housing market impact tax
revenue fund tax fund to the low- and moderate-income housing
trust fund created under section 174.02 of the Revised Code and
the remaining fifty per cent to the local government fund.
Sec. 5755.04. (A)(1) A taxpayer who fails to file a return
or pay the full amount of the tax due within the period
prescribed under this chapter shall pay a penalty in an amount
not exceeding the product of:
(a) Five per cent of the median Ohio home price as listed
in the American community survey published by the United States
census bureau applicable to the last year for which such data is
published;
(b) The number of taxable houses owned by the taxpayer on
the first day of the tax period to which the return applies.
(2) The penalty imposed under division (A)(1) of this
section is in addition to any other penalty imposed under this
chapter. A penalty may be collected by assessment in the manner
prescribed by section 5755.06 of the Revised Code. The tax
commissioner may abate all or a portion of such a penalty.
(B) If the tax due under section 5755.02 of the Revised
Code is not timely paid, the taxpayer shall pay interest at the
rate per annum prescribed in section 5703.47 of the Revised Code
beginning on the day the tax was due through the day the tax is
paid or an assessment is issued, whichever occurs first.
(C) The tax commissioner shall collect any penalty or
interest as if it were the tax levied by section 5755.02 of the
Revised Code. Penalties and interest shall be credited as if it
was revenue arising from the applicable tax.
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1050 S. B. No. 28 Page 37
As Introduced
Sec. 5755.05. (A) A taxpayer may apply to the tax
commissioner for a refund of any amount imposed under this
chapter that was overpaid, paid illegally or erroneously, or
paid on an illegal or erroneous assessment. The application
shall be on a form prescribed by the tax commissioner. The
taxpayer shall provide the amount of the requested refund along
with the claimed reasons for, and documentation to support, the
issuance of a refund. The taxpayer shall file the application
with the tax commissioner within four years after the date the
payment was made unless the applicant has waived the time
limitation under division (D) of section 5755.06 of the Revised
Code. In the latter event, the four-year limitation is extended
for the same period of time as the waiver.
(B) Upon the filing of a refund application, the tax
commissioner shall determine the amount of refund to which the
applicant is entitled. If the amount is greater than that
claimed, the tax commissioner shall certify the amount to the
director of budget and management and treasurer of state for
payment from the tax refund fund. If the amount is less than
that claimed, the tax commissioner shall proceed under section
5703.70 of the Revised Code.
(C) Interest on a refund applied for under this section,
computed at the rate provided for in section 5703.47 of the
Revised Code, shall be allowed from the later of the date the
payment was due or the date payment was made. Except as provided
in section 5755.06 of the Revised Code, the tax commissioner
may, with the consent of the taxpayer, provide for crediting
against the tax due for a tax period, the amount of any refund
due the taxpayer for a preceding tax period.
Sec. 5755.051. As used in this section, "debt to the
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1080 S. B. No. 28 Page 38
As Introduced
state" means unpaid taxes that are due the state, unpaid
workers' compensation premiums that are due, unpaid unemployment
compensation contributions that are due, unpaid unemployment
compensation payments in lieu of contributions that are due,
unpaid fees payable to the state or to the clerk of courts under
section 4505.06 of the Revised Code, incorrect medical
assistance payments, or any unpaid charge, penalty, or interest
arising from any of the foregoing. A debt to the state is not a
"debt to the state" as used in this section unless the liability
underlying the debt to the state has become incontestable
because the time for appealing, reconsidering, reassessing, or
otherwise questioning the liability has expired or the liability
has been finally determined to be valid.
If a taxpayer who is entitled to a refund under section
5755.05 of the Revised Code owes a debt to the state, the amount
refundable may be applied in satisfaction of the debt to the
state. If the amount refundable is less than the amount of the
debt to the state, the amount refundable may be applied in
partial satisfaction of the debt. If the amount refundable is
greater than the amount of the debt, the amount refundable
remaining after satisfaction of the debt shall be refunded to
the taxpayer.
Sec. 5755.052. No person shall knowingly make, present,
aid, or assist in the preparation or presentation of a false or
fraudulent report, return, schedule, statement, claim, or
document authorized or required by law to be filed with the
department of taxation, the treasurer of state, a county
auditor, a county treasurer, or a county clerk of courts, or
knowingly procure, counsel, or advise the preparation or
presentation of such report, return, schedule, statement, claim,
or document, or knowingly change, alter, or amend, or knowingly
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1111 S. B. No. 28 Page 39
As Introduced
procure, counsel, or advise such change, alteration, or
amendment of the records upon which such report, return,
schedule, statement, claim, or document is based with intent to
defraud the state or any of its subdivisions. With respect to
such acts or conduct, no conviction shall be had under any other
section of the Revised Code.
Sec. 5755.06. (A)(1) The tax commissioner may issue an
assessment, based on any information in the commissioner's
possession, against a taxpayer who fails to pay any tax levied
under section 5755.02 of the Revised Code or to file a return
under section 5755.03 of the Revised Code. The tax commissioner
shall give the taxpayer written notice of the assessment under
section 5703.37 of the Revised Code. With the notice, the tax
commissioner shall include instructions on how to petition for
reassessment and on how to request a hearing with respect to the
petition.
(2) Unless the taxpayer, within sixty days after service
of the notice of assessment, files with the tax commissioner,
either personally or by certified mail, a written petition
signed by the taxpayer, or by the taxpayer's authorized agent
who has knowledge of the facts, the assessment becomes final,
and the amount of the assessment is due and payable from the
taxpayer to the treasurer of state. The petition shall indicate
the taxpayer's objections to the assessment. Additional
objections may be raised in writing if they are received by the
tax commissioner before the date shown on the final
determination.
(3) If a petition for reassessment has been properly
filed, the tax commissioner shall proceed under section 5703.60
of the Revised Code.
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1141 S. B. No. 28 Page 40
As Introduced
(4) After an assessment becomes final, if any portion of
the assessment, including penalties and accrued interest,
remains unpaid, the tax commissioner may file a certified copy
of the entry making the assessment final in the office of the
clerk of the court of common pleas of Franklin county or in the
office of the clerk of the court of common pleas of the county
in which the taxpayer resides, or the taxpayer's principal place
of business in this state is located. Immediately upon the
filing of the entry, the clerk shall enter a judgment for the
state against the taxpayer assessed in the amount shown on the
entry. The judgment has the same effect as other judgments.
Execution shall issue upon the judgment at the request of the
tax commissioner, and all laws applicable to sales on execution
apply to sales made under the judgment.
(5) If the assessment is not paid in its entirety within
sixty days after the day the assessment was issued, the portion
of the assessment consisting of tax due shall bear interest at
the rate per annum prescribed by section 5703.47 of the Revised
Code from the day the tax commissioner issued the assessment
until the assessment is paid or until it is certified to the
attorney general for collection under section 131.02 of the
Revised Code, whichever comes first. If the unpaid portion of
the assessment is certified to the attorney general for
collection, the entire unpaid portion of the assessment shall
bear interest at the rate per annum prescribed by section
5703.47 of the Revised Code from the date of certification until
the date it is paid in its entirety. Interest shall be paid in
the same manner as the tax levied under section 5755.02 of the
Revised Code and may be collected by the issuance of an
assessment under this section.
(B) If the tax commissioner believes that collection of
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1172 S. B. No. 28 Page 41
As Introduced
the tax levied under section 5755.02 of the Revised Code will be
jeopardized unless proceedings to collect or secure collection
of the tax are instituted without delay, the commissioner may
issue a jeopardy assessment against the taxpayer that is liable
for the tax. Immediately upon the issuance of a jeopardy
assessment, the tax commissioner shall file an entry with the
clerk of the court of common pleas in the manner prescribed by
division (A)(4) of this section, and the clerk shall proceed as
directed in that division. Notice of the jeopardy assessment
shall be served on the taxpayer or the taxpayer's authorized
agent under section 5703.37 of the Revised Code within five days
after the filing of the entry with the clerk. The total amount
assessed is immediately due and payable, unless the taxpayer
assessed files a petition for reassessment under division (A)(2)
of this section and provides security in a form satisfactory to
the tax commissioner that is in an amount sufficient to satisfy
the unpaid balance of the assessment. If a petition for
reassessment has been filed, and if satisfactory security has
been provided, the tax commissioner shall proceed under division
(A)(3) of this section. Full or partial payment of the
assessment does not prejudice the tax commissioner's
consideration of the petition for reassessment.
(C) The tax commissioner shall immediately forward to the
treasurer of state all amounts the tax commissioner receives
under this section, and the amounts forwarded shall be treated
as if they were revenue arising from the tax levied under
section 5755.02 of the Revised Code.
(D) Except as otherwise provided in this division, no
assessment shall be issued against a taxpayer for the tax levied
under section 5755.02 of the Revised Code more than four years
after the due date for filing the return for the tax period for
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1203 S. B. No. 28 Page 42
As Introduced
which the tax was reported, or more than four years after the
return for the tax period was filed, whichever is later. This
division does not bar an assessment against a taxpayer who fails
to file a return as required by section 5755.03 of the Revised
Code or who files a fraudulent return, or when the taxpayer and
the tax commissioner waive in writing the time limitation.
(E) If the whereabouts of a person subject to this chapter
is not known to the tax commissioner, the commissioner shall
follow the procedures under section 5703.37 of the Revised Code.
Sec. 5755.07. The tax commissioner shall administer and
enforce this chapter. In addition to any other powers conferred
upon the tax commissioner by law, the tax commissioner may do
any of the following:
(A) Prescribe all forms that are required to be filed
under this chapter;
(B) Appoint professional, technical, and clerical
employees as are necessary to carry out the tax commissioner's
duties under this chapter;
(C) Adopt rules that are necessary and proper to carry out
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 section is not subject to sections
121.95 to 121.953 of the Revised Code.
Sec. 5755.99. (A) Whoever violates section 5755.052 of the
Revised Code is guilty of a felony of the fifth degree and the
court may impose upon the offender an additional fine of not
more than seven hundred fifty thousand dollars.
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1231 S. B. No. 28 Page 43
As Introduced
(B) The penalties authorized in this section are in
addition to any penalties imposed by the tax commissioner under
section 5755.04 of the Revised Code.
Section 2. That existing sections 131.02, 319.202,
715.013, 4303.26, 5703.052, 5703.053, 5703.19, 5703.263,
5703.50, 5703.70, 5703.77, 5703.90, 5725.26, and 5751.051 of the
Revised Code are hereby repealed.
Section 3. Within twelve months after the effective date
of this section, a pass-through entity, as defined in section
5733.04 of the Revised Code, that owns a taxable house, as
defined in section 5755.01 of the Revised Code, shall file a
statement with the county auditor of the county in which the
taxable house is located that includes both of the following:
(A) The name, address, telephone number, and electronic
mail address of the entity and an owner, member, manager,
officer, partner, or associate, as applicable, of the entity;
(B) The address and parcel identification number of the
taxable house or houses owned by the entity.
Section 4. The tax levied under section 5755.02 of the
Revised Code, as enacted by this act, applies on and after the
first day of January following the effective date of this
section.
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