Ohio § 5733.06

§ 5733.06.

For tax years prior to tax year 2014, the tax hereby charged each corporation subject

to this chapter shall be the greater of the sum of divisions (A) and (B) of this section,

after the reduction, if any, provided by division (J) of this section, or division

(C) of this section, after the reduction, if any, provided by division (J) of this

section, except that the tax hereby charged each financial institution subject to

this chapter shall be the amount computed under division (D) of this section: (A) Except as set forth in division (F) of this section, five and one-tenth per cent

upon the first fifty thousand dollars of the value of the taxpayer's issued and outstanding

shares of stock as determined under division (B) of section 5733.05 of the Revised Code ; (B) Except as set forth in division (F) of this section, eight and one-half per cent

upon the value so determined in excess of fifty thousand dollars;  or (C)(1) Except as otherwise provided under division (G) of this section, four mills times

that portion of the value of the issued and outstanding shares of stock as determined

under division (C) of section 5733.05 of the Revised Code .  For the purposes of division (C) of this section, division (C)(2) of section 5733.065 , and division (C) of section 5733.066 of the Revised Code , the value of the issued and outstanding shares of stock of an eligible corporation

for tax year 2003 through tax year 2007, or of a qualifying holding company, is zero. (2) As used in division (C) of this section, “ eligible corporation ” means a person treated as a corporation for federal income tax purposes that meets

all of the following criteria: (a) The corporation conducts business for an entire taxable year as a qualified trade

or business as defined by division (C) of section 122.15 of the Revised Code , as that section existed before its repeal by H.B. 59 of the 130th general assembly. (b) The corporation uses more than fifty per cent of the corporation's assets, based

on net book value, that are located in Ohio solely to conduct activities that constitute

a qualified trade or business as defined by section 122.15 of the Revised Code , as that section existed before its repeal by H.B. 59 of the 130th general assembly. 1 (c) The corporation has been formed or organized not more than three years before the

report required to be filed by section 5733.02 of the Revised Code is due, without regard to any extensions. (d) The corporation is not a related member, as defined in section 5733.042 of the Revised Code , at any time during the taxable year with respect to another person treated as a

corporation for federal income tax purposes.  A corporation is not a related member if during the entire taxable year at least

seventy-five per cent of the corporation's stock is owned directly or through a pass-through

entity by individuals, estates, and grantor trusts, and the individuals, estates,

and grantor trusts do not directly or indirectly own more than twenty per cent of

the value of another person treated as a corporation for federal income tax purposes

that is conducting a qualified trade or business. (D) The tax charged each financial institution subject to this chapter shall be that

portion of the value of the issued and outstanding shares of stock as determined under division (A) of section 5733.05 of the Revised Code , multiplied by the following amounts: (1) For tax years prior to the 1999 tax year, fifteen mills; (2) For the 1999 tax year, fourteen mills; (3) For tax year 2000 and thereafter, thirteen mills. (E) No tax shall be charged from any corporation that has been adjudicated bankrupt,

or for which a receiver has been appointed, or that has made a general assignment

for the benefit of creditors, except for the portion of the then current tax year

during which the tax commissioner finds such corporation had the power to exercise

its corporate franchise unimpaired by such proceedings or act.  The minimum payment for each corporation shall be as follows: (1) One thousand dollars in the case of a corporation having gross receipts for the taxable

year equal to at least five million dollars from activities within or outside this

state or in the case of a corporation employing at least three hundred employees at

some time during the taxable year within or outside this state; (2) Fifty dollars in the case of any other corporation. The tax charged to corporations under this chapter for the privilege of engaging in

business in this state, which is an excise tax levied on the value of the issued and

outstanding shares of stock, shall in no manner be construed as prohibiting or otherwise

limiting the powers of municipal corporations, joint economic development zones created

under section 715.691 of the Revised Code , and joint economic development districts created under section 715.70 , 715.71 , or 715.72 of the Revised Code in this state to impose an income tax on the income of such corporations. (F) If two or more taxpayers satisfy the ownership or control requirements of division (A) of section 5733.052 of the Revised Code , each such taxpayer shall substitute “the taxpayer's pro-rata amount” for “fifty

thousand dollars” in divisions (A) and (B) of this section.  For purposes of this division, “ the taxpayer's pro-rata amount ” is an amount that, when added to the other such taxpayers' pro-rata amounts, does

not exceed fifty thousand dollars.  For the purpose of making that computation, the taxpayer's pro-rata amount shall

not be less than zero.  Nothing in this division derogates from or eliminates the requirement to make the

alternative computation of tax under division (C) of this section. (G) The tax liability of any corporation under division (C) of this section shall not

exceed one hundred fifty thousand dollars. (H)(1) For the purposes of division (H) of this section, “ exiting corporation ” means a corporation that satisfies all of the following conditions: (a) The corporation had nexus with or in this state under the Constitution of the United

States during any portion of a calendar year; (b) The corporation was not a corporation described in division (A) of section 5733.01 of the Revised Code on the first day of January immediately following that calendar year; (c) The corporation was not a financial institution on the first day of January immediately

following that calendar year; (d) If the corporation was a transferor as defined in section 5733.053 of the Revised Code , the corporation's transferee was not required to add to the transferee's net income

the income of the transferor pursuant to division (B) of that section; (e) During any portion of that calendar year, or any portion of the immediately preceding

calendar year, the corporation had net income that was not included in a report filed

by the corporation or its transferee pursuant to section 5733.02 , 5733.021 , 5733.03 , 5733.031 , or 5733.053 of the Revised Code ; (f) The corporation would have been subject to the tax computed under divisions (A),

(B), (C), (F), and (G) of this section if the corporation is assumed to be a corporation

described in division (A) of section 5733.01 of the Revised Code on the first day of January immediately following the calendar year to which division

(H)(1)(a) of this section refers. (2) For the purposes of division (H) of this section, “ unreported net income ” means net income that was not previously included in a report filed pursuant to section 5733.02 , 5733.021 , 5733.03 , 5733.031 , or 5733.053 of the Revised Code and that was realized or recognized during the calendar year to which division (H)(1)

of this section refers or the immediately preceding calendar year. (3) Each exiting corporation shall pay a tax computed by first allocating and apportioning

the unreported net income pursuant to division (B) of section 5733.05 and section 5733.051 and, if applicable, section 5733.052 of the Revised Code .  The exiting corporation then shall compute the tax due on its unreported net income

allocated and apportioned to this state by applying divisions (A), (B), and (F) of

this section to that income. (4) Divisions (C) and (G) of this section, division (D)(2) of section 5733.065 , and division (C) of section 5733.066 of the Revised Code do not apply to an exiting corporation, but exiting corporations are subject to every

other provision of this chapter. (5) Notwithstanding division (B) of section 5733.01 or sections 5733.02 , 5733.021 , and 5733.03 of the Revised Code to the contrary, each exiting corporation shall report and pay the tax due under

division (H) of this section on or before the thirty-first day of May immediately

following the calendar year to which division (H)(1)(a) of this section refers.  The exiting corporation shall file that report on the form most recently prescribed

by the tax commissioner for the purposes of complying with sections 5733.02 and 5733.03 of the Revised Code .  Upon request by the corporation, the tax commissioner may extend the date for filing

the report. (6) If, on account of the application of section 5733.053 of the Revised Code , net income is subject to the tax imposed by divisions (A) and (B) of this section,

such income shall not be subject to the tax imposed by division (H)(3) of this section. (7) The amendments made to division (H) of this section by Am. Sub. S.B. 287 of the 123rd general assembly do not apply to any transfer, as defined in section 5733.053 of the Revised Code , for which negotiations began prior to January 1, 2001, and that was commenced in

and completed during calendar year 2001, unless the taxpayer makes an election prior

to December 31, 2001, to apply those amendments. (8) The tax commissioner may adopt rules governing division (H) of this section. (I) Any reference in the Revised Code to “ the tax imposed by section 5733.06 of the Revised Code ” or “ the tax due under section 5733.06 of the Revised Code ” includes the taxes imposed under sections 5733.065 and 5733.066 of the Revised Code . (J)(1) Division (J) of this section applies solely to a combined company. Section 5733.057 of the Revised Code shall apply when calculating the adjustments required by division (J) of this section. (2) Subject to division (J)(4) of this section, the total tax calculated in divisions

(A) and (B) of this section shall be reduced by an amount calculated by multiplying

such tax by a fraction, the numerator of which is the total taxable gross receipts

attributed to providing public utility activity other than as an electric company

under section 5727.03 of the Revised Code for the year upon which the taxable gross receipts are measured immediately preceding

the tax year, and the denominator of which is the total gross receipts from all sources

for the year upon which the taxable gross receipts are measured immediately preceding

the tax year.  Nothing herein shall be construed to exclude from the denominator any item of income

described in section 5733.051 of the Revised Code . (3) Subject to division (J)(4) of this section, the total tax calculated in division

(C) of this section shall be reduced by an amount calculated by multiplying such tax

by the fraction described in division (J)(2) of this section. (4) In no event shall the reduction provided by division (J)(2) or (J)(3) of this section

exceed the amount of the excise tax paid in accordance with section 5727.38 of the Revised Code , for the year upon which the taxable gross receipts are measured immediately preceding

the tax year. 1

 2013 H 59.