Bill Text: OH HB260 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To allow the Department of Taxation to provide taxpayers who file electronic returns the option of receiving their income tax refund in the form of a credit card, debit card, prepaid card, or other device used to electronically transfer funds.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2013-09-10 - To Ways and Means [HB260 Detail]

Download: Ohio-2013-HB260-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 260

Representative Gonzales 

Cosponsors: Representatives Hood, Becker, Wachtmann, McGregor, Beck 

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A BILL

To amend sections 126.35 and 5747.11 and to enact

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section 5747.114 of the Revised Code to allow the

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Department of Taxation to provide taxpayers who

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file electronic returns the option of receiving

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their income tax refund in the form of a credit

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card, debit card, prepaid card, or other device

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used to electronically transfer funds.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 126.35 and 5747.11 be amended and	8
section 5747.114 of the Revised Code be enacted to read as	9
follows:	10

Sec. 126.35.  (A) The director of budget and management shall	11
draw warrants against the treasurer of state pursuant to all	12
requests for payment that the director has approved under section	13
126.07 of the Revised Code.	14

(B) Unless a cash assistance payment is to be made by	15
electronic benefit transfer, payment by the director of budget and	16
management to a participant in the Ohio works first program	17
pursuant to Chapter 5107. of the Revised Code, a recipient of	18
disability financial assistance pursuant to Chapter 5115. of the	19
Revised Code, or a recipient of cash assistance provided under the	20
refugee assistance program established under section 5101.49 of	21
the Revised Code shall be made by direct deposit to the account of	22
the participant or recipient in the financial institution	23
designated under section 329.03 of the Revised Code. Payment by	24
the director of budget and management to a recipient of benefits	25
distributed through the medium of electronic benefit transfer	26
pursuant to section 5101.33 of the Revised Code shall be by	27
electronic benefit transfer. Payment by the director of budget and	28
management as compensation to an employee of the state who has,	29
pursuant to section 124.151 of the Revised Code, designated a	30
financial institution and account for the direct deposit of such	31
payments shall be made by direct deposit to the account of the	32
employee. Payment to any other payee who has designated a	33
financial institution and account for the direct deposit of such	34
payment may be made by direct deposit to the account of the payee	35
in the financial institution as provided in section 9.37 of the	36
Revised Code. Accounts maintained by the director of budget and	37
management or the director's agent in a financial institution for	38
the purpose of effectuating payment by direct deposit or	39
electronic benefit transfer shall be maintained in accordance with	40
section 135.18 of the Revised Code.	41

(C) AllExcept as provided in section 5747.114 of the Revised	42
Code, all other payments from the state treasury shall be made by	43
paper warrants or by direct deposit payable to the respective	44
payees. The director of budget and management may mail the paper	45
warrants to the respective payees or distribute them through other	46
state agencies, whichever the director determines to be the better	47
procedure.	48

(D) If the average per transactionper-transaction cost the	49
director of budget and management incurs in making direct deposits	50
for a state agency exceeds the average per transaction	51
per-transaction cost the director incurs in drawing paper warrants	52
for all public offices during the same period of time, the	53
director may certify the difference in cost and the number of	54
direct deposits for the agency to the director of administrative	55
services. The director of administrative services shall reimburse	56
the director of budget and management for such additional costs	57
and add the amount to the processing charge assessed upon the	58
state agency.	59

Sec. 5747.11.  (A) The tax commissioner shall refund to	60
employers, qualifying entities, or taxpayers, with respect to any	61
tax imposed under section 5733.41, 5747.02, or 5747.41, or Chapter	62
5748. of the Revised Code:	63

(1) Overpayments of more than one dollar;

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(2) Amounts in excess of one dollar paid illegally or	65
erroneously;	66

(3) Amounts in excess of one dollar paid on an illegal,	67
erroneous, or excessive assessment.	68

(B) Except as otherwise provided under divisions (D) and (E)	69
of this section, applications for refund shall be filed with the	70
tax commissioner, on the form prescribed by the commissioner,	71
within four years from the date of the illegal, erroneous, or	72
excessive payment of the tax, or within any additional period	73
allowed by division (B)(3)(b) of section 5747.05, division (B) of	74
section 5747.10, division (A) of section 5747.13, or division (C)	75
of section 5747.45 of the Revised Code.	76

On filing of the refund application, the commissioner shall	77
determine the amount of refund due and certify such amount to the	78
director of budget and management and treasurer of state for	79
payment from the tax refund fund created by section 5703.052 of	80
the Revised Code. Payment shall be made as provided in section	81
5747.114 or division (C) of section 126.35 of the Revised Code.	82

(C)(1) Interest shall be allowed and paid upon any illegal or	83
erroneous assessment in excess of one dollar in respect of the tax	84
imposed under section 5747.02 or Chapter 5748. of the Revised Code	85
at the rate per annum prescribed by section 5703.47 of the Revised	86
Code from the date of the payment of the illegal or erroneous	87
assessment until the date the refund of such amount is paid. If	88
such refund results from the filing of a return or report, or the	89
payment accompanying such return or report, by an employer or	90
taxpayer, rather than from an assessment by the commissioner, such	91
interest shall run from a period ninety days after the final	92
filing date of the annual return until the date the refund is	93
paid.	94

(2) Interest shall be allowed and paid at the rate per annum	95
prescribed by section 5703.47 of the Revised Code upon any	96
overpayment in excess of one dollar in respect of the tax imposed	97
under section 5747.02 or Chapter 5748. of the Revised Code from	98
the date of the overpayment until the date of the refund of the	99
overpayment, except that if any overpayment is refunded within	100
ninety days after the final filing date of the annual return or	101
ninety days after the return is filed, whichever is later, no	102
interest shall be allowed on such overpayment. If the overpayment	103
results from the carryback of a net operating loss or net capital	104
loss to a previous taxable year, the overpayment is deemed not to	105
have been made prior to the filing date, including any extension	106
thereof, for the taxable year in which the net operating loss or	107
net capital loss arises. For purposes of the payment of interest	108
on overpayments, no amount of tax, for any taxable year, shall be	109
treated as having been paid before the date on which the tax	110
return for that year was due without regard to any extension of	111
time for filing such return.	112

(3) Interest shall be allowed at the rate per annum	113
prescribed by section 5703.47 of the Revised Code on amounts	114
refunded with respect to the taxes imposed under sections 5733.41	115
and 5747.41 of the Revised Code. The interest shall run from	116
whichever of the following days is the latest until the day the	117
refund is paid: the day the illegal, erroneous, or excessive	118
payment was made; the ninetieth day after the final day the annual	119
report was required to be filed under section 5747.42 of the	120
Revised Code; or the ninetieth day after the day that report was	121
filed.	122

(D) "Ninety days" shall be substituted for "four years" in	123
division (B) of this section if the taxpayer satisfies both of the	124
following conditions:	125

(1) The taxpayer has applied for a refund based in whole or	126
in part upon section 5747.059 of the Revised Code;	127

(2) The taxpayer asserts that either the imposition or	128
collection of the tax imposed or charged by this chapter or any	129
portion of such tax violates the Constitution of the United States	130
or the Constitution of Ohio.	131

(E)(1) Division (E)(2) of this section applies only if all of	132
the following conditions are satisfied:	133

(a) A qualifying entity pays an amount of the tax imposed by	134
section 5733.41 or 5747.41 of the Revised Code;	135

(b) The taxpayer is a qualifying investor as to that	136
qualifying entity;	137

(c) The taxpayer did not claim the credit provided for in	138
section 5747.059 of the Revised Code as to the tax described in	139
division (E)(1)(a) of this section;	140

(d) The four-year period described in division (B) of this	141
section has ended as to the taxable year for which the taxpayer	142
otherwise would have claimed that credit.	143

(2) A taxpayer shall file an application for refund pursuant	144
to division (E) of this section within one year after the date the	145
payment described in division (E)(1)(a) of this section is made.	146
An application filed under division (E)(2) of this section shall	147
claim refund only of overpayments resulting from the taxpayer's	148
failure to claim the credit described in division (E)(1)(c) of	149
this section. Nothing in division (E) of this section shall be	150
construed to relieve a taxpayer from complying with division	151
(A)(16) of section 5747.01 of the Revised Code.	152

Sec. 5747.114.  The tax commissioner may establish a program	153
under which taxpayers that file income tax returns electronically	154
may elect to receive a tax refund in the form of a financial	155
transaction device. Under the program, the commissioner shall	156
provide taxpayers with information on the features of the	157
financial transaction device program, including any fee or fees	158
which may be charged to a taxpayer in accessing the taxpayer's	159
refund, and on the other refund options available to taxpayers.	160

The commissioner may enter into agreements with one or more	161
issuers of financial transaction devices whereby the issuer agrees	162
to supply financial transaction devices for taxpayers and to	163
credit financial transaction devices with the refund amounts	164
specified by the commissioner. Each such agreement may specify	165
that any fees associated with the use of a financial transaction	166
device shall be incurred by the taxpayer.	167

As used in this section, "financial transaction device" has	168
the same meaning as in section 113.40 of the Revised Code.	169

Section 2.  That existing sections 126.35 and 5747.11 of the	170
Revised Code are hereby repealed.	171