Bill Text: OH SB384 | 2011-2012 | 129th General Assembly | Introduced
Bill Title: To establish a Joint Committee on Government Efficiency that, on or before August 1, 2014, must issue a report recommending the elimination or consolidation of state agencies and proposing an income tax rate reduction corresponding to the savings projected from its recommendations.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-10-25 - To Finance [SB384 Detail]
Download: Ohio-2011-SB384-Introduced.html
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|
Senator Jordan
Cosponsor:
Senator Schaffer
| To amend section 5747.02 and to enact section 101.88 | 1 |
| of the Revised Code to establish a Joint Committee | 2 |
| on Government Efficiency that, on or before August | 3 |
| 1, 2014, must issue a report recommending the | 4 |
| elimination or consolidation of state agencies and | 5 |
| proposing an income tax rate reduction | 6 |
| corresponding to the savings projected from its | 7 |
| recommendations. | 8 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
| Section 1. That section 5747.02 be amended and section | 9 |
| 101.88 of the Revised Code be enacted to read as follows: | 10 |
| Sec. 101.88. (A) There is hereby created in the general | 11 |
| assembly the joint committee on government efficiency. The | 12 |
| committee shall review the functions and duties of state agencies, | 13 |
| departments, commissions, councils, boards, and similar public | 14 |
| bodies established pursuant to state statute for the exercise of | 15 |
| any function of state government. Upon such review, the committee | 16 |
| shall issue recommendations for the elimination or consolidation | 17 |
| of such bodies. | 18 |
| (B) The committee shall be composed of six members. The | 19 |
| president of the senate shall appoint three members of the senate | 20 |
| to the committee. The speaker of the house of representatives | 21 |
| shall appoint three members of the house of representatives to the | 22 |
| committee. Not more than two members from each house shall be of | 23 |
| the same political party. Members shall be appointed within | 24 |
| fifteen days after the commencement of the first regular session | 25 |
| of the 130th general assembly and shall serve for a term ending on | 26 |
| December 31, 2014. A vacancy on the committee shall be filled in | 27 |
| the same manner as the original appointment. | 28 |
| (C) The committee shall meet at least once in January 2013 | 29 |
| and once each month thereafter until the committee issues the | 30 |
| report required under division (D) of this section. The president | 31 |
| of the senate shall designate one member of the committee to serve | 32 |
| as chairperson for the purposes of the first meeting of the | 33 |
| committee. At the first meeting, the committee members shall | 34 |
| select one member to serve as chairperson and one member to serve | 35 |
| as vice-chairperson. Four members of the committee shall | 36 |
| constitute a quorum for the conduct of committee business, except | 37 |
| that the committee may hear testimony as a subcommittee with a | 38 |
| minimum of one member present. | 39 |
| (D) The committee shall issue a written report, not later | 40 |
| than August 1, 2014, to the speaker and minority leader of the | 41 |
| house of representatives, to the president and minority leader of | 42 |
| the senate, and to the clerks of the senate and of the house of | 43 |
| representatives. The report shall include all of the following: | 44 |
| (1) Recommendations for the elimination or consolidation of | 45 |
| reviewed state agencies, departments, commissions, councils, | 46 |
| boards, or other public bodies; | 47 |
| (2) An estimate of the expected annual savings that would | 48 |
| result from the adoption of the committee's recommendations; | 49 |
| (3) Draft legislation that implements the committee's | 50 |
| recommendations and that proposes a reduction in the rates of the | 51 |
| tax levied under section 5747.02 of the Revised Code equal to the | 52 |
| percentage that the estimated annual savings reported under | 53 |
| division (D)(2) of this section is of the total revenue received | 54 |
| from that tax in fiscal year 2014. | 55 |
| The clerk of the senate, immediately upon receiving the | 56 |
| report, shall certify a copy of the report to the tax | 57 |
| commissioner, together with a certification by the clerk that the | 58 |
| clerk received the report not later than August 1, 2014, and the | 59 |
| commissioner shall thereupon enter the fact of the receipt of the | 60 |
| copy of the report and certification in the commissioner's | 61 |
| journal. | 62 |
| The committee may request the assistance of the office of | 63 |
| budget and management in calculating the estimates and proposed | 64 |
| tax rate reductions reported under divisions (D)(2) and (3) of | 65 |
| this section. | 66 |
| Any report issued under this section shall have received the | 67 |
| approval of a majority of the members of the committee. If the | 68 |
| committee fails to issue a report on or before August 1, 2014, the | 69 |
| tax rate reductions described in division (B)(2) of section | 70 |
| 5747.02 of the Revised Code shall take effect on January 1, 2015. | 71 |
| (E) Members of the committee shall receive no compensation | 72 |
| and shall not be reimbursed for their expenses incurred in the | 73 |
| performance of their official duties. Any expenses of the | 74 |
| committee shall be paid from the funds appropriated for the | 75 |
| payment of expenses of legislative committees. | 76 |
| Sec. 5747.02. (A) For the purpose of providing revenue for | 77 |
| the support of schools and local government functions, to provide | 78 |
| relief to property taxpayers, to provide revenue for the general | 79 |
| revenue fund, and to meet the expenses of administering the tax | 80 |
| levied by this chapter, there is hereby levied on every | 81 |
| individual, trust, and estate residing in or earning or receiving | 82 |
| income in this state, on every individual, trust, and estate | 83 |
| earning or receiving lottery winnings, prizes, or awards pursuant | 84 |
| to Chapter 3770. of the Revised Code, on every individual, trust, | 85 |
| and estate earning or receiving winnings on casino gaming, and on | 86 |
| every individual, trust, and estate otherwise having nexus with or | 87 |
| in this state under the Constitution of the United States, an | 88 |
| annual tax measured in the case of individuals by Ohio adjusted | 89 |
| gross income less an exemption for the taxpayer, the taxpayer's | 90 |
| spouse, and each dependent as provided in section 5747.025 of the | 91 |
| Revised Code; measured in the case of trusts by modified Ohio | 92 |
| taxable income under division (D) of this section; and measured in | 93 |
| the case of estates by Ohio taxable income. The tax imposed by | 94 |
| this section on the balance thus obtained is hereby levied as | 95 |
| follows: | 96 |
| (1) For taxable years beginning in 2004: | 97 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 98 | ||
| OR | 99 | ||
| MODIFIED OHIO | 100 | ||
| TAXABLE INCOME (TRUSTS) | 101 | ||
| OR | 102 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 103 |
| $5,000 or less | .743% | 104 | ||
| More than $5,000 but not more than $10,000 | $37.15 plus 1.486% of the amount in excess of $5,000 | 105 | ||
| More than $10,000 but not more than $15,000 | $111.45 plus 2.972% of the amount in excess of $10,000 | 106 | ||
| More than $15,000 but not more than $20,000 | $260.05 plus 3.715% of the amount in excess of $15,000 | 107 | ||
| More than $20,000 but not more than $40,000 | $445.80 plus 4.457% of the amount in excess of $20,000 | 108 | ||
| More than $40,000 but not more than $80,000 | $1,337.20 plus 5.201% of the amount in excess of $40,000 | 109 | ||
| More than $80,000 but not more than $100,000 | $3,417.60 plus 5.943% of the amount in excess of $80,000 | 110 | ||
| More than $100,000 but not more than $200,000 | $4,606.20 plus 6.9% of the amount in excess of $100,000 | 111 | ||
| More than $200,000 | $11,506.20 plus 7.5% of the amount in excess of $200,000 | 112 |
| (2) For taxable years beginning in 2005: | 113 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 114 | ||
| OR | 115 | ||
| MODIFIED OHIO | 116 | ||
| TAXABLE INCOME (TRUSTS) | 117 | ||
| OR | 118 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 119 |
| $5,000 or less | .712% | 120 | ||
| More than $5,000 but not more than $10,000 | $35.60 plus 1.424% of the amount in excess of $5,000 | 121 | ||
| More than $10,000 but not more than $15,000 | $106.80 plus 2.847% of the amount in excess of $10,000 | 122 | ||
| More than $15,000 but not more than $20,000 | $249.15 plus 3.559% of the amount in excess of $15,000 | 123 | ||
| More than $20,000 but not more than $40,000 | $427.10 plus 4.27% of the amount in excess of $20,000 | 124 | ||
| More than $40,000 but not more than $80,000 | $1,281.10 plus 4.983% of the amount in excess of $40,000 | 125 | ||
| More than $80,000 but not more than $100,000 | $3,274.30 plus 5.693% of the amount in excess of $80,000 | 126 | ||
| More than $100,000 but not more than $200,000 | $4,412.90 plus 6.61% of the amount in excess of $100,000 | 127 | ||
| More than $200,000 | $11,022.90 plus 7.185% of the amount in excess of $200,000 | 128 |
| (3) For taxable years beginning in 2006: | 129 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 130 | ||
| OR | 131 | ||
| MODIFIED OHIO | 132 | ||
| TAXABLE INCOME (TRUSTS) | 133 | ||
| OR | 134 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 135 |
| $5,000 or less | .681% | 136 | ||
| More than $5,000 but not more than $10,000 | $34.05 plus 1.361% of the amount in excess of $5,000 | 137 | ||
| More than $10,000 but not more than $15,000 | $102.10 plus 2.722% of the amount in excess of $10,000 | 138 | ||
| More than $15,000 but not more than $20,000 | $238.20 plus 3.403% of the amount in excess of $15,000 | 139 | ||
| More than $20,000 but not more than $40,000 | $408.35 plus 4.083% of the amount in excess of $20,000 | 140 | ||
| More than $40,000 but not more than $80,000 | $1,224.95 plus 4.764% of the amount in excess of $40,000 | 141 | ||
| More than $80,000 but not more than $100,000 | $3,130.55 plus 5.444% of the amount in excess of $80,000 | 142 | ||
| More than $100,000 but not more than $200,000 | $4,219.35 plus 6.32% of the amount in excess of $100,000 | 143 | ||
| More than $200,000 | $10,539.35 plus 6.87% of the amount in excess of $200,000 | 144 |
| (4) For taxable years beginning in 2007: | 145 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 146 | ||
| OR | 147 | ||
| MODIFIED OHIO | 148 | ||
| TAXABLE INCOME (TRUSTS) | 149 | ||
| OR | 150 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 151 |
| $5,000 or less | .649% | 152 | ||
| More than $5,000 but not more than $10,000 | $32.45 plus 1.299% of the amount in excess of $5,000 | 153 | ||
| More than $10,000 but not more than $15,000 | $97.40 plus 2.598% of the amount in excess of $10,000 | 154 | ||
| More than $15,000 but not more than $20,000 | $227.30 plus 3.247% of the amount in excess of $15,000 | 155 | ||
| More than $20,000 but not more than $40,000 | $389.65 plus 3.895% of the amount in excess of $20,000 | 156 | ||
| More than $40,000 but not more than $80,000 | $1,168.65 plus 4.546% of the amount in excess of $40,000 | 157 | ||
| More than $80,000 but not more than $100,000 | $2,987.05 plus 5.194% of the amount in excess of $80,000 | 158 | ||
| More than $100,000 but not more than $200,000 | $4,025.85 plus 6.031% of the amount in excess of $100,000 | 159 | ||
| More than $200,000 | $10,056.85 plus 6.555% of the amount in excess of $200,000 | 160 |
| (5) For taxable years beginning in 2008, 2009, or 2010: | 161 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 162 | ||
| OR | 163 | ||
| MODIFIED OHIO | 164 | ||
| TAXABLE INCOME (TRUSTS) | 165 | ||
| OR | 166 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 167 |
| $5,000 or less | .618% | 168 | ||
| More than $5,000 but not more than $10,000 | $30.90 plus 1.236% of the amount in excess of $5,000 | 169 | ||
| More than $10,000 but not more than $15,000 | $92.70 plus 2.473% of the amount in excess of $10,000 | 170 | ||
| More than $15,000 but not more than $20,000 | $216.35 plus 3.091% of the amount in excess of $15,000 | 171 | ||
| More than $20,000 but not more than $40,000 | $370.90 plus 3.708% of the amount in excess of $20,000 | 172 | ||
| More than $40,000 but not more than $80,000 | $1,112.50 plus 4.327% of the amount in excess of $40,000 | 173 | ||
| More than $80,000 but not more than $100,000 | $2,843.30 plus 4.945% of the amount in excess of $80,000 | 174 | ||
| More than $100,000 but not more than $200,000 | $3,832.30 plus 5.741% of the amount in excess of $100,000 | 175 | ||
| More than $200,000 | $9,573.30 plus 6.24% of the amount in excess of $200,000 | 176 |
| (6) For taxable years beginning in 2011 or thereafter: | 177 |
| OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) | 178 | ||
| OR | 179 | ||
| MODIFIED OHIO | 180 | ||
| TAXABLE INCOME (TRUSTS) | 181 | ||
| OR | 182 | ||
| OHIO TAXABLE INCOME (ESTATES) | TAX | 183 |
| $5,000 or less | .587% | 184 | ||
| More than $5,000 but not more than $10,000 | $29.35 plus 1.174% of the amount in excess of $5,000 | 185 | ||
| More than $10,000 but not more than $15,000 | $88.05 plus 2.348% of the amount in excess of $10,000 | 186 | ||
| More than $15,000 but not more than $20,000 | $205.45 plus 2.935% of the amount in excess of $15,000 | 187 | ||
| More than $20,000 but not more than $40,000 | $352.20 plus 3.521% of the amount in excess of $20,000 | 188 | ||
| More than $40,000 but not more than $80,000 | $1,056.40 plus 4.109% of the amount in excess of $40,000 | 189 | ||
| More than $80,000 but not more than $100,000 | $2,700.00 plus 4.695% of the amount in excess of $80,000 | 190 | ||
| More than $100,000 but not more than $200,000 | $3,639.00 plus 5.451% of the amount in excess of $100,000 | 191 | ||
| More than $200,000 | $9,090.00 plus 5.925% of the amount in excess of $200,000 | 192 |
| In July of each year, beginning in 2010, the tax commissioner | 193 |
| shall adjust the income amounts prescribed in this division by | 194 |
| multiplying the percentage increase in the gross domestic product | 195 |
| deflator computed that year under section 5747.025 of the Revised | 196 |
| Code by each of the income amounts resulting from the adjustment | 197 |
| under this division in the preceding year, adding the resulting | 198 |
| product to the corresponding income amount resulting from the | 199 |
| adjustment in the preceding year, and rounding the resulting sum | 200 |
| to the nearest multiple of fifty dollars. The tax commissioner | 201 |
| also shall recompute each of the tax dollar amounts to the extent | 202 |
| necessary to reflect the adjustment of the income amounts. The | 203 |
| rates of taxation shall not be adjusted. | 204 |
| The adjusted amounts apply to taxable years beginning in the | 205 |
| calendar year in which the adjustments are made. The tax | 206 |
| commissioner shall not make such adjustments in any year in which | 207 |
| the amount resulting from the adjustment would be less than the | 208 |
| amount resulting from the adjustment in the preceding year. | 209 |
| (B)(1) If the director of budget and management makes a | 210 |
| certification to the tax commissioner under division (B) of | 211 |
| section 131.44 of the Revised Code, the amount of tax as | 212 |
| determined under division (A) of this section shall be reduced by | 213 |
| the percentage prescribed in that certification for taxable years | 214 |
| beginning in the calendar year in which that certification is | 215 |
| made, in addition to any reduction required under division (B)(2) | 216 |
| of this section. | 217 |
| (2) If the joint committee on government efficiency fails to | 218 |
| issue the report described in division (D) of section 101.88 of | 219 |
| the Revised Code on or before August 1, 2014, as evidenced by the | 220 |
| tax commissioner's receipt of a copy of the report and the | 221 |
| certification as provided in that division, the amount of tax as | 222 |
| determined under division (A) of this section shall be reduced by | 223 |
| five per cent for taxable years beginning on or after January 1, | 224 |
| 2015, in addition to any reduction under division (B)(1) of this | 225 |
| section. The resulting rates shall be rounded to the nearest one | 226 |
| thousandth of one per cent. | 227 |
| (C) The levy of this tax on income does not prevent a | 228 |
| municipal corporation, a joint economic development zone created | 229 |
| under section 715.691, or a joint economic development district | 230 |
| created under section 715.70 or 715.71 or sections 715.72 to | 231 |
| 715.81 of the Revised Code from levying a tax on income. | 232 |
| (D) This division applies only to taxable years of a trust | 233 |
| beginning in 2002 or thereafter. | 234 |
| (1) The tax imposed by this section on a trust shall be | 235 |
| computed by multiplying the Ohio modified taxable income of the | 236 |
| trust by the rates prescribed by division (A) of this section. | 237 |
| (2) A resident trust may claim a credit against the tax | 238 |
| computed under division (D) of this section equal to the lesser of | 239 |
| (1) the tax paid to another state or the District of Columbia on | 240 |
| the resident trust's modified nonbusiness income, other than the | 241 |
| portion of the resident trust's nonbusiness income that is | 242 |
| qualifying investment income as defined in section 5747.012 of the | 243 |
| Revised Code, or (2) the effective tax rate, based on modified | 244 |
| Ohio taxable income, multiplied by the resident trust's modified | 245 |
| nonbusiness income other than the portion of the resident trust's | 246 |
| nonbusiness income that is qualifying investment income. The | 247 |
| credit applies before any other applicable credits. | 248 |
| (3) The credits enumerated in divisions (A)(1) to (13) of | 249 |
| section 5747.98 of the Revised Code do not apply to a trust | 250 |
| subject to division (D) of this section. Any credits enumerated in | 251 |
| other divisions of section 5747.98 of the Revised Code apply to a | 252 |
| trust subject to division (D) of this section. To the extent that | 253 |
| the trust distributes income for the taxable year for which a | 254 |
| credit is available to the trust, the credit shall be shared by | 255 |
| the trust and its beneficiaries. The tax commissioner and the | 256 |
| trust shall be guided by applicable regulations of the United | 257 |
| States treasury regarding the sharing of credits. | 258 |
| (E) For the purposes of this section, "trust" means any trust | 259 |
| described in Subchapter J of Chapter 1 of the Internal Revenue | 260 |
| Code, excluding trusts that are not irrevocable as defined in | 261 |
| division (I)(3)(b) of section 5747.01 of the Revised Code and that | 262 |
| have no modified Ohio taxable income for the taxable year, | 263 |
| charitable remainder trusts, qualified funeral trusts and preneed | 264 |
| funeral contract trusts established pursuant to sections 4717.31 | 265 |
| to 4717.38 of the Revised Code that are not qualified funeral | 266 |
| trusts, endowment and perpetual care trusts, qualified settlement | 267 |
| trusts and funds, designated settlement trusts and funds, and | 268 |
| trusts exempted from taxation under section 501(a) of the Internal | 269 |
| Revenue Code. | 270 |
| Section 2. That existing section 5747.02 of the Revised Code | 271 |
| is hereby repealed. | 272 |
| Section 3. That section 101.88 of the Revised Code is hereby | 273 |
| repealed, effective December 31, 2014. | 274 |
