Bill Text: OH HB402 | 2013-2014 | 130th General Assembly | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: To require the Tax Commissioner to notify taxpayers of tax or fee overpayments, to authorize the Commissioner to either apply an overpayment to future tax liabilities or issue a refund, and to make an appropriation.

Spectrum: Slight Partisan Bill (Republican 45-26)

Status: (Engrossed - Dead) 2014-03-27 - To Finance [HB402 Detail]

Download: Ohio-2013-HB402-Comm_Sub.html

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As Reported by the House Finance and Appropriations Committee

130th General Assembly Regular Session 2013-2014

Am. H. B. No. 402

Representatives Duffey, Landis 

Cosponsors: Representatives Letson, McClain, Schuring, Beck, Barnes, Green, Blair, Amstutz 

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A BILL

To amend section 5703.05 and to enact section 5703.77

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of the Revised Code to require the Tax

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Commissioner to notify taxpayers of tax or fee

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overpayments, to authorize the Commissioner to

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either apply an overpayment to future tax

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liabilities or issue a refund, and to make an

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appropriation.

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

Section 1. That section 5703.05 be amended and section	8
5703.77 of the Revised Code be enacted to read as follows:	9

Sec. 5703.05.  All powers, duties, and functions of the	10
department of taxation are vested in and shall be performed by the	11
tax commissioner, which powers, duties, and functions shall	12
include, but shall not be limited to, the following:	13

(A) Prescribing all blank forms which the department is	14
authorized to prescribe, and to provide such forms and distribute	15
the same as required by law and the rules of the department.	16

(B) Exercising the authority provided by law, including	17
orders from bankruptcy courts, relative to remitting or refunding	18
taxes or assessments, including penalties and interest thereon,	19
illegally or erroneously assessed or collected, or for any other	20
reason overpaid, and in addition, the commissioner may on written	21
application of any person, firm, or corporation claiming to have	22
overpaid to the treasurer of state at any time within five years	23
prior to the making of such application any tax payable under any	24
law which the department of taxation is required to administer	25
which does not contain any provision for refund, or on the	26
commissioner's own motion investigate the facts and make in	27
triplicate a written statement of the commissioner's findings,	28
and, if the commissioner finds that there has been an overpayment,	29
issue in triplicate a certificate of abatement payable to the	30
taxpayer, the taxpayer's assigns, or legal representative which	31
shows the amount of the overpayment and the kind of tax overpaid.	32
One copy of such statement shall be entered on the journal of the	33
commissioner, one shall be certified to the attorney general, and	34
one certified copy shall be delivered to the taxpayer. All copies	35
of the certificate of abatement shall be transmitted to the	36
attorney general, and if the attorney general finds it to be	37
correct the attorney general shall so certify on each copy, and	38
deliver one copy to the taxpayer, one copy to the commissioner,	39
and the third copy to the treasurer of state. Except as provided	40
in section 5725.08 of the Revised Code, the taxpayer's copy of any	41
certificates of abatement may be tendered by the payee or	42
transferee thereof to the treasurer of state, or to the	43
commissioner on behalf of the treasurer, as payment, to the extent	44
of the amount thereof, of any tax payable to the treasurer of	45
state.	46

(C) Exercising the authority provided by law relative to	47
consenting to the compromise and settlement of tax claims;	48

(D) Exercising the authority provided by law relative to the	49
use of alternative tax bases by taxpayers in the making of	50
personal property tax returns;	51

(E) Exercising the authority provided by law relative to	52
authorizing the prepayment of taxes on retail sales of tangible	53
personal property or on the storage, use, or consumption of	54
personal property, and waiving the collection of such taxes from	55
the consumers;	56

(F) Exercising the authority provided by law to revoke	57
licenses;	58

(G) Maintaining a continuous study of the practical operation	59
of all taxation and revenue laws of the state, the manner in which	60
and extent to which such laws provide revenues for the support of	61
the state and its political subdivisions, the probable effect upon	62
such revenue of possible changes in existing laws, and the	63
possible enactment of measures providing for other forms of	64
taxation. For this purpose the commissioner may establish and	65
maintain a division of research and statistics, and may appoint	66
necessary employees who shall be in the unclassified civil	67
service; the results of such study shall be available to the	68
members of the general assembly and the public.	69

(H) Making all tax assessments, valuations, findings,	70
determinations, computations, and orders the department of	71
taxation is by law authorized and required to make and, pursuant	72
to time limitations provided by law, on the commissioner's own	73
motion, reviewing, redetermining, or correcting any tax	74
assessments, valuations, findings, determinations, computations,	75
or orders the commissioner has made, but the commissioner shall	76
not review, redetermine, or correct any tax assessment, valuation,	77
finding, determination, computation, or order which the	78
commissioner has made as to which an appeal or application for	79
rehearing, review, redetermination, or correction has been filed	80
with the board of tax appeals, unless such appeal or application	81
is withdrawn by the appellant or applicant or dismissed;	82

(I) Appointing not more than five deputy tax commissioners,	83
who, under such regulations as the rules of the department of	84
taxation prescribe, may act for the commissioner in the	85
performance of such duties as the commissioner prescribes in the	86
administration of the laws which the commissioner is authorized	87
and required to administer, and who shall serve in the	88
unclassified civil service at the pleasure of the commissioner,	89
but if a person who holds a position in the classified service is	90
appointed, it shall not affect the civil service status of such	91
person. The commissioner may designate not more than two of the	92
deputy commissioners to act as commissioner in case of the	93
absence, disability, or recusal of the commissioner or vacancy in	94
the office of commissioner. The commissioner may adopt rules	95
relating to the order of precedence of such designated deputy	96
commissioners and to their assumption and administration of the	97
office of commissioner.	98

(J) Appointing and prescribing the duties of all other	99
employees of the department of taxation necessary in the	100
performance of the work of the department which the tax	101
commissioner is by law authorized and required to perform, and	102
creating such divisions or sections of employees as, in the	103
commissioner's judgment, is proper;	104

(K) Organizing the work of the department, which the	105
commissioner is by law authorized and required to perform, so	106
that, in the commissioner's judgment, an efficient and economical	107
administration of the laws will result;	108

(L) Maintaining a journal, which is open to public	109
inspection, in which the tax commissioner shall keep a record of	110
all final determinations of the commissioner;	111

(M) Adopting and promulgating, in the manner provided by	112
section 5703.14 of the Revised Code, all rules of the department,	113
including rules for the administration of sections 3517.16,	114
3517.17, and 5747.081 of the Revised Code;	115

(N) Destroying any or all returns or assessment certificates	116
in the manner authorized by law;	117

(O) Adopting rules, in accordance with division (B) of	118
section 325.31 of the Revised Code, governing the expenditure of	119
moneys from the real estate assessment fund under that division;	120

(P) Informing taxpayers in a timely manner to resolve credit	121
account balances as required by section 5703.77 of the Revised	122
Code.	123

Sec. 5703.77.  (A) As used in this section:

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(1) "Taxpayer" means a person subject to or previously	125
subject to a tax or fee, a person that remits a tax or fee, or a	126
person required to or previously required to withhold or collect	127
and remit a tax or fee on behalf of another person.	128

(2) "Tax or fee" means a tax or fee administered by the tax	129
commissioner.	130

(3) "Credit account balance" means the amount of a tax or fee	131
that a taxpayer remits to the state in excess of the amount	132
required to be remitted, after accounting for factors applicable	133
to the taxpayer such as accelerated payments, estimated payments,	134
tax credits, and tax credit balances that may be carried forward.	135

(4) "Tax debt" means an unpaid tax or fee or any unpaid	136
penalty, interest, or additional charge on such a tax or fee due	137
the state.	138

(B) As soon as practicable, but not later than sixty days	139
before the expiration of the period of time during which a	140
taxpayer may file a refund application for a tax or fee, the tax	141
commissioner shall review the taxpayer's accounts for the tax or	142
fee and notify the taxpayer of any credit account balance for	143
which the commissioner is required to issue a refund if the	144
taxpayer were to file a refund application for that balance,	145
regardless of whether the taxpayer files a refund application or	146
amended return with respect to that tax or fee. The notice shall	147
be made using contact information for the taxpayer on file with	148
the commissioner.	149

(C) Notwithstanding sections 128.47, 3734.905, 4307.05,	150
5726.30, 5727.28, 5727.42, 5727.91, 5728.061, 5735.122, 5736.08,	151
5739.07, 5739.104, 5741.10, 5743.05, 5743.53, 5747.11, 5749.08,	152
5751.08, 5753.06, and any other section of the Revised Code	153
governing refunds of taxes or fees, the commissioner may apply the	154
amount of any credit account balance for which the commissioner is	155
required to issue a refund if the taxpayer were to file a refund	156
application for that balance as a credit against the taxpayer's	157
liability for the tax or fee in the taxpayer's next reporting	158
period for that tax or fee or issue a refund of that credit	159
account balance to the taxpayer, subject to division (D) of this	160
section.	161

(D) Before issuing a refund to a taxpayer under division (C)	162
of this section, the tax commissioner shall withhold from that	163
refund the amount of any of the taxpayer's tax debt certified to	164
the attorney general under section 131.02 of the Revised Code and	165
the amount of the taxpayer's liability, if any, for a tax or fee.	166
The commissioner shall apply any amount withheld first in	167
satisfaction of the amount of the taxpayer's certified tax debt	168
and then in satisfaction of the taxpayer's liability.	169

(E) The tax commissioner may adopt rules to administer this	170
section.	171

Section 2.  That existing section 5703.05 of the Revised Code	172
is hereby repealed.	173

Section 3. All appropriation items in this act are	174
appropriated out of any moneys in the state treasury to the credit	175
of the designated fund that are not otherwise appropriated. For	176
all appropriations made in this act, the amounts in the first	177
column are for fiscal year 2014 and the amounts in the second	178
column are for fiscal year 2015. The appropriations made in this	179
act are in addition to any other appropriations made for the FY	180
2014-FY 2015 biennium.	181

TAX DEPARTMENT OF TAXATION	182

GRF	110321		Operating Expenses		$	0		$	682,000		183
TOTAL GRF General Revenue Fund					$	0		$	682,000		184
TOTAL ALL BUDGET FUND GROUPS					$	0		$	682,000		185