Ohio Revised Code
Chapter 5747 | Income Tax
Section 5747.03 | Distributing Income Tax Revenue.

Effective: June 14, 2022
Latest Legislation: Senate Bill 246 - 134th General Assembly
(A)(1) All money collected under this chapter arising from the taxes imposed by section 5747.02, 5747.38, or 5747.41 of the Revised Code shall be credited to the general revenue fund and distributed pursuant to division (F) of section 321.24 and section 323.156 of the Revised Code; to make subsidy payments to institutions of higher education from appropriations to the department of higher education; to support expenditures for programs and services for the mentally ill, persons with developmental disabilities, and the elderly; for primary and secondary education; for medical assistance; and for any other purposes authorized by law, subject to the limitation that at least fifty per cent of the income tax collected by the state from the tax imposed by section 5747.02 of the Revised Code shall be returned pursuant to Section 9 of Article XII, Ohio Constitution.
(2) To ensure that such constitutional requirement is satisfied the tax commissioner shall, on or before the thirtieth day of June of each year, from the best information available to the tax commissioner, determine and certify for each county to the director of budget and management the amount of taxes collected under this chapter from the tax imposed under section 5747.02 of the Revised Code during the preceding calendar year that are required to be returned to the county by Section 9 of Article XII, Ohio Constitution. The director shall provide for payment from the general revenue fund to the county in the amount, if any, that the sum of the amount so certified for that county exceeds the sum of the following:
(a) The sum of the payments from the general revenue fund for the preceding calendar year credited to the county's undivided income tax fund pursuant to division (F) of section 321.24 and section 323.156 of the Revised Code or made directly from the general revenue fund to political subdivisions located in the county;
(b) The sum of the amounts from the general revenue fund distributed in the county during the preceding calendar year for subsidy payments to institutions of higher education from appropriations to the department of higher education; for programs and services for mentally ill persons, persons with developmental disabilities, and elderly persons; for primary and secondary education; and for medical assistance.
(c) In the case of payments made by the director under this division in 2007, the total amount distributed to the county during the preceding calendar year from the local government fund and the local government revenue assistance fund, and, in the case of payments made by the director under this division in subsequent calendar years, the amount distributed to the county from the local government fund;
(d) In the case of payments made by the director under this division, the total amount distributed to the county during the preceding calendar year from the public library fund.
Payments under this division shall be credited to the county's undivided income tax fund, except that, notwithstanding section 5705.14 of the Revised Code, such payments may be transferred by the board of county commissioners to the county general fund by resolution adopted with the affirmative vote of two-thirds of the members thereof.
(B) All payments received in each month from taxes imposed under Chapter 5748. of the Revised Code and any penalties or interest thereon shall be paid into the school district income tax fund, which is hereby created in the state treasury, except that an amount equal to the following portion of such payments shall be paid into the general school district income tax administrative fund, which is hereby created in the state treasury:
(1) One and three-quarters of one per cent of those received in fiscal year 1996;
(2) One and one-half per cent of those received in fiscal year 1997 and thereafter.
Money in the school district income tax administrative fund shall be used by the tax commissioner to defray costs incurred in administering the school district's income tax, including the cost of providing employers with information regarding the rate of tax imposed by any school district. Any moneys remaining in the fund after such use shall be deposited in the school district income tax fund.
All interest earned on moneys in the school district income tax fund shall be credited to the fund.
(C)(1)(a) Within thirty days of the end of each calendar quarter ending on the last day of March, June, September, and December, the director of budget and management shall make a payment from the school district income tax fund to each school district for which school district income tax revenue was received during that quarter. The amount of the payment shall equal the balance in the school district's account at the end of that quarter.
(b) After a school district ceases to levy an income tax, the director of budget and management shall adjust the payments under division (C)(1)(a) of this section to retain sufficient money in the school district's account to pay refunds. For the calendar quarters ending on the last day of March and December of the calendar year following the last calendar year the tax is levied, the director shall make the payments in the amount required under division (C)(1)(a) of this section. For the calendar quarter ending on the last day of June of the calendar year following the last calendar year the tax is levied, the director shall make a payment equal to nine-tenths of the balance in the account at the end of that quarter. For the calendar quarter ending on the last day of September of the calendar year following the last calendar year the tax is levied, the director shall make no payment. For the second and succeeding calendar years following the last calendar year the tax is levied, the director shall make one payment each year, within thirty days of the last day of June, in an amount equal to the balance in the district's account on the last day of June.
(2) Moneys paid to a school district under this division shall be deposited in its school district income tax fund. All interest earned on moneys in the school district income tax fund shall be apportioned by the tax commissioner pro rata among the school districts in the proportions and at the times the districts are entitled to receive payments under this division.
Last updated July 28, 2022 at 3:58 PM

Structure Ohio Revised Code

Ohio Revised Code

Title 57 | Taxation

Chapter 5747 | Income Tax

Section 5747.01 | Definitions.

Section 5747.011 | Gain or Loss Included in Trust's Ohio Taxable Income.

Section 5747.012 | Tax Treatment of Qualifying Investment Income From Pass-Through Entity.

Section 5747.013 | Calculating a Trust's Modified Ohio Taxable Income.

Section 5747.02 | Tax Rates.

Section 5747.021 | School District Income Tax.

Section 5747.022 | Tax Credits for Exemptions.

Section 5747.023 | Tax Credits for Armed Forces Member Killed in Combat or Military or Civilian Employee Killed in Terroristic or Military Action.

Section 5747.024 | Military Pay Not Included in Adjusted Gross Income.

Section 5747.025 | Personal Exemptions.

Section 5747.026 | Extensions for Filing and Payment by Members Called to Active Duty.

Section 5747.03 | Distributing Income Tax Revenue.

Section 5747.031 | Separate Reporting of Business and Nonbusiness Income Tax Revenues.

Section 5747.04 | Attributing Tax Receipts to County.

Section 5747.05 | Tax Credits.

Section 5747.054 | Tax Credit Based on Federal Dependent Care Credit.

Section 5747.055 | Tax Credit for Retirement Income.

Section 5747.057 | Tax Credit for Career-Technical Education Program Employees.

Section 5747.058 | Tax Credits to Foster Job Creation or Retention.

Section 5747.059 | Tax Credit for Ohio Withholding Tax Paid by One or More Qualifying Pass-Through Entities.

Section 5747.06 | Employer's Duty to Withhold Tax.

Section 5747.061 | Withholding Tax From Wages of Nonresident Employees.

Section 5747.062 | Withholding Tax From State Lottery Winnings.

Section 5747.063 | Withholding From Casino and Sports Gaming Winnings.

Section 5747.064 | Withholding From Video Lottery and Sports Gaming Winnings.

Section 5747.065 | Deduction and Withholding of State Income Tax From Unemployment Compensation Benefits.

Section 5747.07 | Employers to File Return and Pay Withholding.

Section 5747.071 | Withholding Tax From Retirement Benefits.

Section 5747.072 | Employers Remitting Taxes by Electronic Funds Transfer.

Section 5747.08 | Filing Income Tax Return.

Section 5747.082 | Use of Electronic Filing by Tax Preparers.

Section 5747.083 | Report or Payment of Use Tax on Personal Income Tax Return.

Section 5747.09 | Declaration of Estimated Taxes.

Section 5747.10 | Amended Returns.

Section 5747.11 | Refunds - Interest.

Section 5747.112 | Paying Refund of School District Income Taxes.

Section 5747.113 | Income Tax Refund Contribution System.

Section 5747.12 | Applying Refund to Satisfy Debt to State.

Section 5747.121 | Collecting Child Support From Refunds.

Section 5747.122 | Collecting Overpayments of Public Assistance From Refunds.

Section 5747.123 | Collecting Overpaid Child Support From Refunds.

Section 5747.13 | Liability of Employer for Failure to File Return or Collect or Remit Tax.

Section 5747.132 | Eliminating Interest or Penalty on Qualifying Refund Overpayment.

Section 5747.14 | Imposing Jeopardy Assessments.

Section 5747.15 | Failure to File or Remit Tax - Filing Frivolous, Dilatory or Fraudulent Claim.

Section 5747.16 | Secretary of State Agent for Service of Process on Nonresidents.

Section 5747.17 | Maintaining Records.

Section 5747.18 | Powers of Tax Commissioner.

Section 5747.19 | Filing Incomplete, False, and Fraudulent Returns.

Section 5747.20 | Allocating Nonbusiness Income or Deduction.

Section 5747.21 | Apportioning Business Income or Deduction.

Section 5747.212 | Apportioning Gain Recognized by Nonresident Equity Investor Selling an Investment in a Closely-Held Business.

Section 5747.22 | Apportioning and Allocating Income and Deductions of Pass-Through Entities.

Section 5747.221 | Items of Income and Deductions Not to Be Allocated or Apportioned to Ohio.

Section 5747.23 | Taxing Trust Income.

Section 5747.231 | Including Taxpayer's Entire Distributive or Proportionate Share Attributable to Pass-Through Entity.

Section 5747.24 | Presumption of Domicile.

Section 5747.26 | Lead Abatement Tax Credit.

Section 5747.27 | Credit for Displaced Worker Who Pays for Job Training to Enhance Ability to Get New Job.

Section 5747.28 | Credit for Purchase of Qualifying Property by Taxpayer Engaged in the Business of Producing Grapes.

Section 5747.29 | Political Campaign Contribution Tax Credit.

Section 5747.30 | Exemption for Nonresident Pass-Through Entities as to Commercial Printing.

Section 5747.331 | Nonrefundable Credit Equal to Borrower's Qualified Research and Development Loan Payments.

Section 5747.37 | Credit for Legally Adopted Minor Child.

Section 5747.38 | Pass-Through Entity Income Tax.

Section 5747.39 | Pass-Through Entity Owner Credit.

Section 5747.40 | Definitions Relating to Qualified Pass-Through Entities.

Section 5747.401 | Deemed Investors in Investment Pass-Through Entity Are Deemed Investors in Any Other Pass-Through Entity in Which Investment Pass-Through Entity Is Direct Investor.

Section 5747.41 | Withholding Tax on Qualifying Pass-Through Entity or Trust Having Individual Qualifying Investor or Beneficiary.

Section 5747.42 | Filing Annual Return.

Section 5747.43 | Filing Estimated Tax Return and Making Estimated Payments.

Section 5747.44 | Tax Payment by Electronic Funds Transfer.

Section 5747.45 | Taxable Year; Method of Accounting; Amended Reports With Payment or Application for Refund.

Section 5747.451 | Requirements of Qualifying Entity Upon Retirement From Business, Voluntary Dissolution or Transfer to Successor.

Section 5747.453 | Personal Liability of Employee or Beneficiary Of, or Investor In, a Qualifying Entity for Failure to File Report or Pay Tax.

Section 5747.46 | Library and Local Government Support Fund Definitions.

Section 5747.47 | Estimating, Certifying and Distributing of County's Share of Library and Local Government Support Fund.

Section 5747.48 | Distribution of County Library and Local Government Support Fund.

Section 5747.49 | Prohibiting Later Performance of Duties.

Section 5747.50 | Apportioning Local Government Fund to Political Subdivision or Eligible Taxing District.

Section 5747.501 | Estimating and Certifying Amount for Distribution Into Local Government Fund.

Section 5747.502 | Reports on Fines Resulting From Traffic Law Photo-Monitoring Devices.

Section 5747.503 | Payments to County Undivided Local Government Funds of Supplement for Townships.

Section 5747.51 | Allocating Local Government Fund to County Undivided Local Government Funds.

Section 5747.52 | Calculating Subdivision Share of Undivided Local Government Fund.

Section 5747.53 | Apportionment of Undivided Local Government Fund of County Under an Alternative Method or on a Formula Basis.

Section 5747.54 | Failure to Certify Percentage Share of the Undivided Local Government Fund.

Section 5747.55 | Appealing County Budget Commission Action.

Section 5747.60 | Delegating Investigation Powers of Tax Commissioner.

Section 5747.66 | Credit for Any Individual Who Is the Certificate Owner of a Tax Credit Certificate.

Section 5747.70 | Deductions for Contributions to College Savings Programs.

Section 5747.71 | Earned Income Tax Credit.

Section 5747.72 | Credit for Home Instruction Expenses.

Section 5747.73 | Credit for Donations to Scholarship Organizations.

Section 5747.75 | Credit for Dependents Who Attend Nonchartered Nonpublic School.

Section 5747.76 | Refundable Income Tax Credit for Owner of Rc 149.311 Certificate.

Section 5747.77 | Beginning Farmer Tax Credits.

Section 5747.78 | Deductions for Amounts Contributed to Able Savings Account.

Section 5747.79 | Deduction for Capital Gains From Sale of Business.

Section 5747.80 | Issuance of Tax Credits by Ohio Venture Capital Authority.

Section 5747.81 | Tax Credit for Holders of Small Business Investment Certificate.

Section 5747.98 | Order for Claiming Credits.

Section 5747.99 | Penalty.