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| To amend section 5747.02 of the Revised Code to | 1 |
| increase the marginal income tax rate applicable | 2 |
| to income in excess of $200,000 to its pre-2005 | 3 |
| rate. | 4 |
| Section 1. That section 5747.02 of the Revised Code be | 5 |
| amended to read as follows: | 6 |
| Sec. 5747.02. (A) For the purpose of providing revenue for | 7 |
| the support of schools and local government functions, to provide | 8 |
| relief to property taxpayers, to provide revenue for the general | 9 |
| revenue fund, and to meet the expenses of administering the tax | 10 |
| levied by this chapter, there is hereby levied on every | 11 |
| individual, trust, and estate residing in or earning or receiving | 12 |
| income in this state, on every individual, trust, and estate | 13 |
| earning or receiving lottery winnings, prizes, or awards pursuant | 14 |
| to Chapter 3770. of the Revised Code, and on every individual, | 15 |
| trust, and estate otherwise having nexus with or in this state | 16 |
| under the Constitution of the United States, an annual tax | 17 |
| measured in the case of individuals by Ohio adjusted gross income | 18 |
| less an exemption for the taxpayer, the taxpayer's spouse, and | 19 |
| each dependent as provided in section 5747.025 of the Revised | 20 |
| Code; measured in the case of trusts by modified Ohio taxable | 21 |
| income under division (D) of this section; and measured in the | 22 |
| case of estates by Ohio taxable income. The tax imposed by this | 23 |
| section on the balance thus obtained is hereby levied as follows: | 24 |
| (1) For taxable years beginning in 2004: | 25 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 26 | ||
| OR | 27 | ||
| MODIFIED OHIO | 28 | ||
| TAXABLE INCOME (TRUSTS) | 29 | ||
| OR | 30 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 31 |
| $5,000 or less | .743% | 32 | ||
| More than $5,000 but not more than $10,000 | $37.15 plus 1.486% of the amount in excess of $5,000 | 33 | ||
| More than $10,000 but not more than $15,000 | $111.45 plus 2.972% of the amount in excess of $10,000 | 34 | ||
| More than $15,000 but not more than $20,000 | $260.05 plus 3.715% of the amount in excess of $15,000 | 35 | ||
| More than $20,000 but not more than $40,000 | $445.80 plus 4.457% of the amount in excess of $20,000 | 36 | ||
| More than $40,000 but not more than $80,000 | $1,337.20 plus 5.201% of the amount in excess of $40,000 | 37 | ||
| More than $80,000 but not more than $100,000 | $3,417.60 plus 5.943% of the amount in excess of $80,000 | 38 | ||
| More than $100,000 but not more than $200,000 | $4,606.20 plus 6.9% of the amount in excess of $100,000 | 39 | ||
| More than $200,000 | $11,506.20 plus 7.5% of the amount in excess of $200,000 | 40 |
| (2) For taxable years beginning in 2005: | 41 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 42 | ||
| OR | 43 | ||
| MODIFIED OHIO | 44 | ||
| TAXABLE INCOME (TRUSTS) | 45 | ||
| OR | 46 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 47 |
| $5,000 or less | .712% | 48 | ||
| More than $5,000 but not more than $10,000 | $35.60 plus 1.424% of the amount in excess of $5,000 | 49 | ||
| More than $10,000 but not more than $15,000 | $106.80 plus 2.847% of the amount in excess of $10,000 | 50 | ||
| More than $15,000 but not more than $20,000 | $249.15 plus 3.559% of the amount in excess of $15,000 | 51 | ||
| More than $20,000 but not more than $40,000 | $427.10 plus 4.27% of the amount in excess of $20,000 | 52 | ||
| More than $40,000 but not more than $80,000 | $1,281.10 plus 4.983% of the amount in excess of $40,000 | 53 | ||
| More than $80,000 but not more than $100,000 | $3,274.30 plus 5.693% of the amount in excess of $80,000 | 54 | ||
| More than $100,000 but not more than $200,000 | $4,412.90 plus 6.61% of the amount in excess of $100,000 | 55 | ||
| More than $200,000 | $11,022.90 plus 7.185% of the amount in excess of $200,000 | 56 |
| (3) For taxable years beginning in 2006: | 57 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 58 | ||
| OR | 59 | ||
| MODIFIED OHIO | 60 | ||
| TAXABLE INCOME (TRUSTS) | 61 | ||
| OR | 62 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 63 |
| $5,000 or less | .681% | 64 | ||
| More than $5,000 but not more than $10,000 | $34.05 plus 1.361% of the amount in excess of $5,000 | 65 | ||
| More than $10,000 but not more than $15,000 | $102.10 plus 2.722% of the amount in excess of $10,000 | 66 | ||
| More than $15,000 but not more than $20,000 | $238.20 plus 3.403% of the amount in excess of $15,000 | 67 | ||
| More than $20,000 but not more than $40,000 | $408.35 plus 4.083% of the amount in excess of $20,000 | 68 | ||
| More than $40,000 but not more than $80,000 | $1,224.95 plus 4.764% of the amount in excess of $40,000 | 69 | ||
| More than $80,000 but not more than $100,000 | $3,130.55 plus 5.444% of the amount in excess of $80,000 | 70 | ||
| More than $100,000 but not more than $200,000 | $4,219.35 plus 6.32% of the amount in excess of $100,000 | 71 | ||
| More than $200,000 | $10,539.35 plus 6.87% of the amount in excess of $200,000 | 72 |
| (4) For taxable years beginning in 2007: | 73 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 74 | ||
| OR | 75 | ||
| MODIFIED OHIO | 76 | ||
| TAXABLE INCOME (TRUSTS) | 77 | ||
| OR | 78 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 79 |
| $5,000 or less | .649% | 80 | ||
| More than $5,000 but not more than $10,000 | $32.45 plus 1.299% of the amount in excess of $5,000 | 81 | ||
| More than $10,000 but not more than $15,000 | $97.40 plus 2.598% of the amount in excess of $10,000 | 82 | ||
| More than $15,000 but not more than $20,000 | $227.30 plus 3.247% of the amount in excess of $15,000 | 83 | ||
| More than $20,000 but not more than $40,000 | $389.65 plus 3.895% of the amount in excess of $20,000 | 84 | ||
| More than $40,000 but not more than $80,000 | $1,168.65 plus 4.546% of the amount in excess of $40,000 | 85 | ||
| More than $80,000 but not more than $100,000 | $2,987.05 plus 5.194% of the amount in excess of $80,000 | 86 | ||
| More than $100,000 but not more than $200,000 | $4,025.85 plus 6.031% of the amount in excess of $100,000 | 87 | ||
| More than $200,000 | $10,056.85 plus 6.555% of the amount in excess of $200,000 | 88 |
| (5) For taxable years beginning in 2008: | 89 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 90 | ||
| OR | 91 | ||
| MODIFIED OHIO | 92 | ||
| TAXABLE INCOME (TRUSTS) | 93 | ||
| OR | 94 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 95 |
| $5,000 or less | .618% | 96 | ||
| More than $5,000 but not more than $10,000 | $30.90 plus 1.236% of the amount in excess of $5,000 | 97 | ||
| More than $10,000 but not more than $15,000 | $92.70 plus 2.473% of the amount in excess of $10,000 | 98 | ||
| More than $15,000 but not more than $20,000 | $216.35 plus 3.091% of the amount in excess of $15,000 | 99 | ||
| More than $20,000 but not more than $40,000 | $370.90 plus 3.708% of the amount in excess of $20,000 | 100 | ||
| More than $40,000 but not more than $80,000 | $1,112.50 plus 4.327% of the amount in excess of $40,000 | 101 | ||
| More than $80,000 but not more than $100,000 | $2,843.30 plus 4.945% of the amount in excess of $80,000 | 102 | ||
| More than $100,000 but not more than $200,000 | $3,832.30 plus 5.741% of the amount in excess of $100,000 | 103 | ||
| More than $200,000 | $9,573.30 plus 6.24% of the amount in excess of $200,000 | 104 |
| (6) For taxable years beginning in 2009 or thereafter: | 105 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 106 | ||
| OR | 107 | ||
| MODIFIED OHIO | 108 | ||
| TAXABLE INCOME (TRUSTS) | 109 | ||
| OR | 110 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 111 |
| $5,000 or less | .587% | 112 | ||
| More than $5,000 but not more than $10,000 | $29.35 plus 1.174% of the amount in excess of $5,000 | 113 | ||
| More than $10,000 but not more than $15,000 | $88.05 plus 2.348% of the amount in excess of $10,000 | 114 | ||
| More than $15,000 but not more than $20,000 | $205.45 plus 2.935% of the amount in excess of $15,000 | 115 | ||
| More than $20,000 but not more than $40,000 | $352.20 plus 3.521% of the amount in excess of $20,000 | 116 | ||
| More than $40,000 but not more than $80,000 | $1,056.40 plus 4.109% of the amount in excess of $40,000 | 117 | ||
| More than $80,000 but not more than $100,000 | $2,700.00 plus 4.695% of the amount in excess of $80,000 | 118 | ||
| More than $100,000 but not more than $200,000 | $3,639.00 plus 5.451% of the amount in excess of $100,000 | 119 | ||
| More than $200,000 | $9,090.00 plus |
120 |
| In July of each year, beginning in 2010, the tax commissioner | 121 |
| shall adjust the income amounts prescribed in this division by | 122 |
| multiplying the percentage increase in the gross domestic product | 123 |
| deflator computed that year under section 5747.025 of the Revised | 124 |
| Code by each of the income amounts resulting from the adjustment | 125 |
| under this division in the preceding year, adding the resulting | 126 |
| product to the corresponding income amount resulting from the | 127 |
| adjustment in the preceding year, and rounding the resulting sum | 128 |
| to the nearest multiple of fifty dollars. The tax commissioner | 129 |
| also shall recompute each of the tax dollar amounts to the extent | 130 |
| necessary to reflect the adjustment of the income amounts. The | 131 |
| rates of taxation shall not be adjusted. | 132 |
| The adjusted amounts apply to taxable years beginning in the | 133 |
| calendar year in which the adjustments are made. The tax | 134 |
| commissioner shall not make such adjustments in any year in which | 135 |
| the amount resulting from the adjustment would be less than the | 136 |
| amount resulting from the adjustment in the preceding year. | 137 |
| (B) If the director of budget and management makes a | 138 |
| certification to the tax commissioner under division (B) of | 139 |
| section 131.44 of the Revised Code, the amount of tax as | 140 |
| determined under division (A) of this section shall be reduced by | 141 |
| the percentage prescribed in that certification for taxable years | 142 |
| beginning in the calendar year in which that certification is | 143 |
| made. | 144 |
| (C) The levy of this tax on income does not prevent a | 145 |
| municipal corporation, a joint economic development zone created | 146 |
| under section 715.691, or a joint economic development district | 147 |
| created under section 715.70 or 715.71 or sections 715.72 to | 148 |
| 715.81 of the Revised Code from levying a tax on income. | 149 |
| (D) This division applies only to taxable years of a trust | 150 |
| beginning in 2002 or thereafter. | 151 |
| (1) The tax imposed by this section on a trust shall be | 152 |
| computed by multiplying the Ohio modified taxable income of the | 153 |
| trust by the rates prescribed by division (A) of this section. | 154 |
| (2) A nonresident trust may claim a credit against the tax | 155 |
| computed under division (D) of this section equal to the lesser | 156 |
| of (1) the tax paid to another state or the District of Columbia | 157 |
| on the nonresident trust's modified nonbusiness income, other | 158 |
| than the portion of the nonresident trust's nonbusiness income | 159 |
| that is qualifying investment income as defined in section | 160 |
| 5747.012 of the Revised Code, or (2) the effective tax rate, based | 161 |
| on modified Ohio taxable income, multiplied by the nonresident | 162 |
| trust's modified nonbusiness income other than the portion of the | 163 |
| nonresident trust's nonbusiness income that is qualifying | 164 |
| investment income. The credit applies before any other applicable | 165 |
| credits. | 166 |
| (3) The credits enumerated in divisions (A)(1) to (13) of | 167 |
| section 5747.98 of the Revised Code do not apply to a trust | 168 |
| subject to division (D) of this section. Any credits enumerated | 169 |
| in other divisions of section 5747.98 of the Revised Code apply | 170 |
| to a trust subject to division (D) of this section. To the extent | 171 |
| that the trust distributes income for the taxable year for which | 172 |
| a credit is available to the trust, the credit shall be shared by | 173 |
| the trust and its beneficiaries. The tax commissioner and the | 174 |
| trust shall be guided by applicable regulations of the United | 175 |
| States treasury regarding the sharing of credits. | 176 |
| (E) For the purposes of this section, "trust" means any trust | 177 |
| described in Subchapter J of Chapter 1 of the Internal Revenue | 178 |
| Code, excluding trusts that are not irrevocable as defined in | 179 |
| division (I)(3)(b) of section 5747.01 of the Revised Code and that | 180 |
| have no modified Ohio taxable income for the taxable year, | 181 |
| charitable remainder trusts, qualified funeral trusts and preneed | 182 |
| funeral contract trusts established pursuant to sections 4717.31 | 183 |
| to 4717.38 of the Revised Code that are not qualified funeral | 184 |
| trusts, endowment and perpetual care trusts, qualified | 185 |
| settlement trusts and funds, designated settlement trusts and | 186 |
| funds, and trusts exempted from taxation under section 501(a) | 187 |
| of the Internal Revenue Code. | 188 |
| Section 2. That existing section 5747.02 of the Revised Code | 189 |
| is hereby repealed. | 190 |