Taxpayer Services Bill II

KEY FEATURES

INTENT:

• Increase ease of compliance for taxpayers.Increase ease of administration for the Department of Taxation.Update or eliminate obsolete tax laws.Avoid substantive changes to major tax laws.
• Make changes that are substantially revenue neutral

COST: Minimal

BILL BENEFITS:

• Simplifies taxpayer interactions with the Department (e.g. disclosing vendor license status, resolving disputes at the earliest stage, refunding erroneously paid Sales and Use taxes directly to consumers, extending the statute of limitations for estimated filers)Modernizes and codifies Ohio tax laws and practicesProvides greater clarity and convenience in complying with tax laws
• Improves administration of taxes

MAJOR PROVISIONS:

• Creating assessment correction notices. This will allow taxpayers and Taxation employees to resolve issues concerning the taxpayer’s liability earlier in the appeals process.
• Codifying our practice of allowing hearings on refund denials. This codification puts into law the rights and responsibilities that were previously available only administratively.
• Modernizing the Motor Fuel and Fuel Use taxes. The trucking industry benefits from modernizing the statutes in conformity with Ohio’s participation in the International Fuel Use Tax agreement and the International Registration Plan. The changes also enhance the Department’s ability to enforce the laws by allowing Ohio to share fuel use tax information with a third-party database provider.
• Expanding the disclosure of information regarding vendors licenses, seller’ use tax accounts and direct pay permits. Frequently, taxpayers want to verify that a vendor or seller is registered to collect and remit Ohio sales and use taxes. Current law restricts the information the Department may share with taxpayers. This change allows the Department to disclose business names, identifying account number, street address and whether the account is inactive or active.
• Expanding the use of direct pay permits. This change expands the use of direct pay permits to consumers who would then pay the tax directly to the state. This simplifies the payment of the tax for larger companies (traditionally manufacturers and construction contractors) and eases the administrative burden for the Tax Department.
• Allowing consumers to apply directly to the Department for sales and use tax refunds under certain circumstances. This eliminates the step of going through the vendor to obtain a refund.

• Providing certainty for the situsing of mobile telecommunications services. Providers, such as AT&T, MCI and Sprint, pay taxes based on the situs of the service. Defining the situs helps them to accurately determine the tax rate charged on a customer’s bill. The changes also incorporate the federal Mobile Telecommunications Sourcing Act, bringing Ohio laws into conformity.