COLUMBUS—State Representative Mark Romanchuk (R-Ontario) recently announced that the Ohio House passed legislation requiring the Ohio Department of Taxation to notify Ohio businesses when they overpay their taxes and to allow the tax commissioner to provide automatic refunds or credits toward future taxes. Senate Bill 263 was introduced as a companion bill to House Bill 402, which passed the House in March.
Ohio Tax Commissioner Joe Testa has expressed strong support for the changes made by the legislation.
Am. S.B. 263 adds the requirement to the tax commissioner’s statutory duties and functions that taxpayers be notified of overpayments so they can claim a refund or allow overpayments to be credited toward future taxes.
“This bill is good public policy,” said Rep. Romanchuk. “It will put money back into the hands of Ohio taxpayers and businesses owners, where it belongs. Ohioans should be notified when they’ve overpaid their taxes, and it is the state’s duty to do so.”
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 state is not required to notify taxpayers if they have overpaid their taxes.
The bill updates the law to ensure that taxpayers are notified no later than 60 days before the end of that three or four-year limitations period and provides a mechanism to allow the tax commissioner to issue an automatic refund or credit toward future tax liability, rather than forcing the taxpayer to submit a refund application.
The bill seeks to protect Ohio taxpayers, specifically guaranteeing businesses that overpay their taxes get that money back into their hands, rather than in the hands of the state. With more money invested in Ohio’s businesses and workers, the state economy can better flourish.
The legislation passed the House unanimously and returns to the Senate for a vote of concurrence.
“This bill is good public policy,” said Rep. Romanchuk. “It will put money back into the hands of Ohio taxpayers and businesses owners, where it belongs. Ohioans should be notified when they’ve overpaid their taxes, and it is the state’s duty to do so.”
