State
Senator Bill Beagle
Beagle
Introduces Legislation to Automatically Refund Overpaid Business
Taxes
COLUMBUS—
Senators Bill Beagle (R-Tipp City) and Bob Peterson (R-Sabina) joined
State Representatives Mike Duffey (R-Worthington) and Al Landis
(R-Dover) today to introduce legislation—Senate Bill 263 and House
Bill 402—that will require the Ohio Department of Taxation to
notify Ohio businesses when they overpay their taxes and provide
automatic refunds in the form of credits toward future taxes.
“We
have been working hard to make Ohio a state that is friendly to
business so we can attract jobs and grow our economy,” said Beagle.
“These tax overpayments do not belong in the state’s treasury,
they belong in our economy investing into Ohio’s businesses,
workers and families. This bill locks that philosophy in as Ohio
law.”
“When
a taxpayer makes an overpayment to the state, there is no question
that the money belongs to the taxpayer and should be returned,”
said Peterson. “Through this legislation, we are making certain
that future Tax Commissioners will be required by law to do the right
thing and return these overpayments back into the pockets of the
taxpayer where it belongs.”
“It’s
hard to believe that the Department of Taxation did not notify
taxpayers when they overpaid,” Rep. Duffey said. “I would expect
this to be standard practice, as well as automatic refunds or
rollovers. Thankfully, Governor Kasich has embraced reforming this
longstanding practice.”
Under
current law, overpayments may be refunded, but only upon request and
only during the first three or four years, within the statute of
limitations. The newly introduced legislation would ensure that
taxpayers are notified no later than 60 days before the end of that
three- or four-year period.
“I
was surprised to discover Ohio taxpayers were not being notified of
these overpayments unless they made specific inquiries,” said Rep.
Landis. “The State of Ohio should actively notify these businesses
so that they can claim the refund that they deserve.”
Last
year, Ohio Inspector General Randall Meyer issued an investigation
report that found that the Ohio Department of Taxation failed to
refund more than $30 million in state taxes overpaid by businesses
and often ignored requests for refunds.
The
new legislation is being introduced in an effort to prevent future
tax overpayments from being claimed by the state without protections
for Ohio taxpayers.
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