As used in rules 122:7-1-02 to 122:7-1-09 of the Administrative = Code:
(A) =E2=80=9CAmendment=E2=80=9D means any change to the terms and = conditions of a tax credit=20 agreement following approval from the authority.
(B) =E2=80=9CAuthority=E2=80=9D means the tax credit authority = created pursuant to division=20 (M) of section 122.17 of the Revised Code.
(C) =E2=80=9CConsumer price index=E2=80=9D means the statistic = released by the United States=20 department of labor, bureau of labor statistics. The rate of the index = to be=20 considered by the authority is the United States city average percent = change for=20 all urban consumers.
(D) =E2=80=9CDate of initial operations=E2=80=9D means the beginning = of the term of the tax=20 credit, as specified in the tax credit agreement.
(E) =E2=80=9CDirector=E2=80=9D means the director of development of = the state of Ohio.
(F) =E2=80=9CDisadvantaged person=E2=80=9D means a resident of Ohio = who meets at least one of=20 the following criteria:
(1) Is a person who is currently receiving unemployment compensation = or has=20 not held a full-time job for at least the four months immediately = preceding the=20 determination of disadvantaged person status;
(2) Is certified as having a disability by the state of = Ohio=E2=80=99s rehabilitation=20 services commission or bureau of workers=E2=80=99 compensation, or who = is determined to=20 be disabled by the United States social security administration;
(3) Is eligible for Workforce Investment Act program assistance; = or
(4) Is a person whose total gross annual income is less than the = annual=20 equivalent of one hundred fifty per cent of the federal minimum wage, or = is part=20 of a household of two or more persons whose total gross annual income is = less=20 than the annual equivalent of three hundred fifty per cent of the = federal=20 minimum wage.
(G) =E2=80=9CExecutive director=E2=80=9D means the executive director = of the tax credit=20 authority.
(H) =E2=80=9CExtraordinary circumstance=E2=80=9D means
(1) The proposed project will encompass asset expenditures that = significantly=20 exceed the asset expenditures of similar projects within that industry=20 sector;
(2) The proposed project establishes or enhances a taxpayer=E2=80=99s = operations=20 within a targeted industry. Targeted industry means an industry sector = that the=20 Ohio department of development has then identified as a sector whose = growth is=20 vital to the economic success of Ohio;
(3) The proposed project utilizes a facility that has been vacant for = at=20 least twelve consecutive months immediately preceding the application = for the=20 proposed project;
(4) For a taxpayer with existing operations at the project location, = the=20 proposed project will result in a growth in the number of full-time = equivalent=20 employees at the project location of at least three hundred per = cent;
(5) The proposed project establishes a company or division=20 national/international headquarters location and the taxpayer will = employ a=20 minimum of two-hundred fifty full-time equivalent employees at the = project=20 location; or
(6) After assessing all of the factors included but not limited to = those=20 listed in this division and in paragraph (C) of rule 122:7-1-06 of the=20 Administrative Code as well as such other factors regarding the proposed = project=20 as an indication of substantial economic impact, the authority = determines that=20 the proposed project presents an extraordinary opportunity for the = state.=20 Additional consideration will be provided to proposed projects that:
(a) Plan to generate substantial payroll growth in a distressed city = or=20 county. Distress criteria are established by the Ohio department of = development=20 and are published in map format at least twice each year to identify = =E2=80=9Cpriority=20 investment areas=E2=80=9D.
(b) Commit to hire and retain a significant percentage of = disadvantaged=20 persons.
(I) =E2=80=9CFixed-asset investment=E2=80=9D means the dollar amount = invested in building,=20 land, machinery and equipment, including computers, and infrastructure = related=20 to the project. Fixed-asset investment does not include investments in=20 furniture, inventory, working capital, and other operating expenses.
(J) =E2=80=9CFull-time equivalent employees=E2=80=9D means the = quotient obtained by dividing=20 the total number of hours for which employees were compensated for = employment in=20 the project by two-thousand eighty. If the authority determines that = full-time=20 employees in a particular industry sector normally work fewer than two = thousand=20 eighty hours per year, the authority may reduce the denominator = described in the=20 preceding sentence to the number of hours that correspond to full-time=20 employment in the relevant industry sector. The calculation of = =E2=80=9Cfull-time=20 equivalent employees=E2=80=9D shall exclude any and all hours that are = included as part=20 of a tax credit under section 122.171 of the Revised Code.
(K) =E2=80=9CMaintain operations=E2=80=9D means the continuation of = operations of the=20 taxpayer as described in the tax credit agreement. The tax credit = agreement=20 shall describe the type of work performed, the number of full-time = equivalent=20 employees to be created and retained, the level of investment, and other = details=20 the authority deems appropriate to measure maintenance of = operations.
(L) =E2=80=9CMinority=E2=80=9D means a resident of Ohio who is a = member of one of the=20 following groups: Blacks or African Americans, American Indians, = Hispanics or=20 Latinos, and Asians.
(M) =E2=80=9CPayroll=E2=80=9D means the aggregate taxable income paid = to full-time equivalent=20 employees at the project location. Payroll does not include employer=20 contributions to fringe benefits that are provided to employees.
(N) =E2=80=9CPayroll increase factor=E2=80=9D means a numerical = percentage determined by the=20 authority to represent retained payroll growth, and which shall be = applied to=20 adjust annually =E2=80=9Cbaseline income tax revenue,=E2=80=9D as = defined in division (A)(2) of=20 section 122.17 of the Revised Code. The payroll increase factor shall be = a=20 minimum of one. The payroll increase factor shall be multiplied by the = current=20 taxable year=E2=80=99s baseline income tax revenue to equal the next = taxable year=E2=80=99s=20 baseline income tax revenue for each year during the term of the tax = credit.
(O) =E2=80=9CPost-term reporting period=E2=80=9D means the time = period a taxpayer must report=20 to the authority and director to verify the maintenance of operations at = the=20 project location. The post-term reporting period begins at the = conclusion of the=20 tax credit term and continues for a minimum of three years as set forth = in the=20 tax credit agreement corresponding to the taxpayer=E2=80=99s obligation = to maintain=20 operations at the project location.
(P) =E2=80=9CRelocated employees=E2=80=9D means either of the = following:
(1) The full-time equivalent employees or employment positions = employed by=20 the taxpayer in a political subdivision in this state other than the = political=20 subdivision in which the project is located are relocated to the project = location and whose positions are not replaced in the first political = subdivision=20 within the same calendar year.
(2) The full-time equivalent employees or employment positions = employed by=20 the taxpayer at a location other than the project location within the = same=20 political subdivision as the project location that are relocated to the = project=20 location, and whose positions are not replaced within the same calendar=20 year.
(Q) =E2=80=9CRetail=E2=80=9D means operations that include = point-of-final-purchase=20 transactions at a facility open to the consuming public, wherein one = party is=20 obligated to pay the price and the other party is obligated to transfer = title to=20 or possession of the item sold.
(R) =E2=80=9CSubstantial number of employment positions=E2=80=9D = means individual employees=20 of the taxpayer for which the aggregate annual gross payroll, excluding = amounts=20 paid for fringe benefits, is at least two hundred thousand dollars. In=20 calculating the =E2=80=9Csubstantial number of employment = positions=E2=80=9D threshold, the=20 taxpayer must aggregate the payroll from all relocated employees under = paragraph=20 (B) of rule 122:7-1-09 of the Administrative Code for each year during = the term=20 of the tax credit.
(S) =E2=80=9CTax year=E2=80=9D means the calendar year in and for = which the tax imposed by=20 sections 5725.18, 5729.03, 5733.06, 5747.02 or 5751.031 of the Revised = Code is=20 required to be paid.
(T) =E2=80=9CTaxable year=E2=80=9D means the annual tax reporting = period of the taxpayer=20 prescribed by division (A) of section 5733.031 of the Revised Code with = respect=20 to persons subject to the Ohio corporate franchise tax, and prescribed = by=20 division (M) of section 5747.01 of the Revised Code with respect to = persons=20 subject to individual income tax. With respect to insurance companies = taxable=20 year means the calendar year subject to the franchise tax return = required=20 pursuant to section 5725.18 of the Revised Code, or subject to the tax = required=20 pursuant to section 5729.03 of the Revised Code.
(U) =E2=80=9CTaxpayer=E2=80=9D means a business entity that has = entered into an agreement for=20 a tax credit pursuant to division (D) of section 122.17 of the Revised = Code.
(V) =E2=80=9CTransferred income tax revenue=E2=80=9D means the = withholdings attributed to all=20 relocated employees at the project location, if any.
(W) =E2=80=9CTransferred payroll=E2=80=9D means the payroll = attributed to all relocated=20 employees at the project location, if any.
Replaces: 122:7-1-01
Effective: 08/27/2010
R.C. 119.032 review dates: 08/17/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17
Prior Effective Dates: 9/25/2000; 11/8/1999; 4/8/1994; 11/10/2003,=20 1/31/2007
(A) The authority shall act only at a meeting conducted in accordance = with=20 this rule. Three members of the authority constitute a quorum to = transact and=20 vote on the business of the authority. No action shall be taken by the = authority=20 without the concurrence of a majority of the membership. = =E2=80=9CRoberts Rules of=20 Order=E2=80=9D shall govern the proceedings at all meetings.
(B) The department of development shall provide the authority with an = adequate meeting place, supplies, and staff assistance, including an = executive=20 director.
(C) Regular meetings. Regular meetings of the authority may be:
(1) Held in accordance with a schedule adopted by the authority, = without=20 additional notice to members;
(2) Scheduled at a previous meeting of the authority; or
(3) Scheduled by the chairman or a majority of the members of the = authority=20 at least seven days in advance of a meeting. Upon request, the authority = shall=20 provide at least four days notice of the time, place, and purpose of its = regular=20 meetings to any person.
(D) Special meetings. The chairman or a majority of the members of = the=20 authority may call a special meeting by providing to the members at = least=20 twenty-four hours advance notice of the time, place, and purpose of the = meeting.=20 The authority shall give twenty-four hours advance notice of the time, = place,=20 and purpose of all special meetings to the news media that have = requested=20 notification.
(E) Emergency meetings. In the event of an emergency requiring = immediate=20 official action, the chairman or a majority of the members of the = authority may=20 call an emergency meeting. The authority shall notify, as soon as = possible, the=20 news media that have requested notification regarding the time, place, = and=20 purpose of the meeting.
(F) Specific business. Any person may, upon request and payment of a=20 reasonable fee to be determined by the authority, obtain reasonable = advance=20 notice and an agenda of all meetings at which any specific type of = public=20 business is to be discussed.
(G) Agenda. The chairman of the authority shall prepare an agenda for = each=20 regular meeting. The agenda shall be distributed by mail or facsimile to = the=20 members of the authority at least four days prior to each regular = meeting. The=20 chairman or authority calling a special meeting of the authority shall = prepare=20 an agenda for such meeting and include a copy of the agenda with a = notice of=20 such meeting.
R.C. 119.032 review dates: 05/24/2010 and 08/08/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17
Prior Effective Dates: 4/8/94; 11/8/99
(A) Chairperson. The director, or the director=E2=80=99s designee, = shall serve as=20 chairperson of the authority. After the authority has approved tax = credits for a=20 project, the chairperson or a professional employee of the department of = development to whom the chairperson has delegated such authority shall = execute=20 all agreements with the business entities for tax credits and all = agreements=20 with the landlords for annual payments.
(B) Vice-chairperson. The authority shall annually elect one of its = members=20 to serve as vice-chairperson. In the absence of the chairperson or the=20 chairperson=E2=80=99s designee, the vice-chairperson shall act as = chairperson of the=20 authority. In the absence of the chairperson or the = chairperson=E2=80=99s designee and=20 the vice-chairperson, the members of the authority present at a meeting = may=20 elect one of its members to chair the meeting.
R.C. 119.032 review dates: 05/24/2010 and 08/08/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17
Prior Effective Dates: 4/8/94; 11/8/99
(A) Application fees. At the time of submission, each proposed = project job=20 creation tax credit application shall include an application fee in the = amount=20 of one thousand, five hundred dollars from the taxpayer applicants to = the=20 department of development. If the tax credit application is not = processed for=20 presentation to the authority for consideration, the department of = development=20 shall refund the application fee to the taxpayer. In all other = instances, the=20 application fee shall be non-refundable.
(B) Servicing fees. At the time each taxpayer enters a the tax credit = agreement, the taxpayer shall pay to the department of development a = servicing=20 fee in an amount equal to two-hundred fifty dollars times the term of = years of=20 the tax credit, up to a maximum of three thousand seven hundred fifty = dollars. A=20 separate servicing fee, each calculated as described in the preceding = sentence,=20 shall be assessed for each taxpayer that is party to a tax credit = agreement. An=20 amendment that requests the addition of taxpayer(s) following the = initial=20 approval of the tax credit shall be subject to payment of the servicing = fee for=20 each added taxpayer. Such an amendment is not subject to the amendment = fee, as=20 described in paragraph (C) of this rule, unless the amendment requests = changes=20 to other terms of the tax credit agreement.
(C) Amendment fees. A taxpayer that has already received project = approval=20 from the authority for tax credit assistance shall submit a three = hundred dollar=20 fee to the department of development in connection with a = taxpayer=E2=80=99s request to=20 amend a previously approved tax credit project, provided that the = amendment fee=20 shall not be assessed for ministerial amendments. The determination of = the=20 executive director of the authority about the nature of an amendment as=20 ministerial or substantive shall be final.
(D) Late fees. A taxpayer that does not submit a complete annual = report or=20 annual certification postmarked by or received prior to March first of = the year=20 the report or certification is due shall be assessed a late fee of five = hundred=20 dollars for each month the report or certification is not received on or = before=20 the first day of each ensuing calendar month until the taxpayer submits = a=20 complete annual report or annual certification under paragraphs (A) and = (C) of=20 rule 122:7-1-07 of the Administrative Code. If an annual report or = annual=20 certification submitted to the director is not complete, the director, = or his or=20 her designee, shall notify the taxpayer of the deficiencies in the = submission,=20 and the taxpayer shall have thirty days from the date of the notice to = provide=20 supplemental information to the director that completes the annual = report or=20 annual certification. During the pendency of the thirty day time period = to=20 supplement annual report or annual certification information, the = taxpayer will=20 be subject to the monthly late fee. Failure by a taxpayer to comply with = reporting requirements is a breach of taxpayer=E2=80=99s obligations = under the tax=20 credit agreement and, after the expiration of any applicable cure period = provided for in the agreement, the authority may exercise its remedies=20 including, without limitation, reduction of the term or percentage of = the tax=20 credit or both, or termination of the tax credit.
(E) Issuance of tax credit certificates. A tax credit certificate = shall not=20 be issued to any taxpayer with unpaid fees under this rule.
(F) Use of fees. All fees assessed in connection with the job = creation tax=20 credit program shall be utilized to offset the administrative costs of = the=20 program.
Replaces: 122:7-1-04
Effective: 08/27/2010
R.C. 119.032 review dates: 08/17/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17
Prior Effective Dates: 4/8/1994, 11/8/1999, 12/26/03
(A) Except as otherwise provided in this rule, the authority may = grant a tax=20 credit pursuant to section 122.17 of the Revised Code if the authority=20 determines the business entity=E2=80=99s project satisfies all of the = following:
(1) The project satisfies the requirements set forth in division (C) = of=20 section 122.17 of the Revised Code;
(2) The taxpayer proposes as a result of the project to do all of the = following within three years after the date of the initial = operations:
(a) Create at least ten full-time equivalent employees at the project = location;
(b) Generate additional annual payroll at the project location in an = amount=20 equal to or greater than one hundred seventy-five per cent of the = federal=20 minimum wage at the time the authority approves the project, multiplied = by=20 fifty-two thousand (which is the number of hours twenty-five full-time=20 equivalent employees would work in one year); and
(c) Have an average hourly wage rate of at least one hundred fifty = per cent=20 of the federal minimum wage for all new employment positions added as a = result=20 of the project.
(3) Within three years of a project=E2=80=99s date of initial = operations, the=20 taxpayer accomplishes the following:
(a) Creates at least ten new full-time equivalent employees at the = project=20 location;
(b) Generates additional annual payroll at the project location in an = amount=20 equal to or greater than one hundred seventy five per cent of the = federal=20 minimum wage at the time the authority approved the project, multiplied = by=20 fifty-two thousand (which is the number of hours twenty-five full-time=20 equivalent employees work in one year);
(c) Maintains at least six hundred sixty thousand dollars of = additional=20 annual payroll over the baseline existing payroll set forth in the tax = credit=20 agreement for the term of the tax credit and the post-term reporting = period, as=20 defined in paragraph (O) of rule 122:7-1-01 of the Administrative Code = and=20 required by division (D)(3) of section 122.17 of the Revised Code. All = payroll=20 attributed to relocated employees is excluded from this calculation. If = a=20 taxpayer fails to satisfy this provision, no tax certificate shall be = issued for=20 that tax year; and
(d) Maintains an average hourly wage rate consistent with paragraph = (A)(2)(c)=20 of this rule and continues to do so for the entirety of the tax credit = term.
(4) The project has received a letter of support from the chief = executive, or=20 his or her designee, of the local political subdivision or a regional=20 development agency charged with promoting economic development with = jurisdiction=20 over the project location.
(B) All or any portion of a project determined to be retail shall not = be=20 eligible for tax credits pursuant to section 122.17 of the Revised = Code.
(C) A taxpayer that sells or derives revenue from the performance of = services=20 rather than the sale of goods, must demonstrate to the satisfaction of = the=20 authority that at least fifty-one per cent of the sales or revenues = attributable=20 to the proposed project are projected to be generated from outside the = state of=20 Ohio within three years of the date of initial operations to be eligible = for tax=20 credits pursuant to section 122.17 of the Revised Code.
(D) Each taxpayer shall certify to the authority the amount of = existing=20 payroll for individuals employed at the project location as of the date = of the=20 job creation tax credit application. Acceptance of tax credit award = shall=20 constitute the taxpayer=E2=80=99s confirmation that the amount of = existing payroll and=20 income tax revenue certified to the authority is accurate and will be = relied=20 upon by the authority in issuing tax credit certificates. The tax credit = shall=20 be calculated on payroll attributed to full-time equivalent employees = employed=20 by the taxpayer in excess of the existing payroll, as accepted by the = authority,=20 provided that the taxpayer executes and returns the tax credit = agreement, within=20 sixty days of delivery of the agreement. If the taxpayer fails to = execute the=20 tax credit agreement within such sixty day period, the tax credit shall = be=20 calculated on payroll attributed to full-time equivalent employees = employed by=20 the taxpayer in excess of the existing payroll, as of the date of the = execution=20 of the tax credit agreement. The taxpayer shall include with any = agreement=20 returned more than sixty days after delivery the amount of the = taxpayer=E2=80=99s=20 payroll and income tax revenue at the project location not more than ten = business days prior to the date the taxpayer signs the agreement. Such = payroll=20 amount shall be certified as accurate by the chief executive officer, = chief=20 financial officer, or other officer authorized to sign tax returns for = the=20 taxpayer.
(E) The authority may from time to time set additional eligibility=20 requirements for job creation tax credit project applications.
Replaces: 122:7-1-05
Effective: 08/27/2010
R.C. 119.032 review dates: 08/17/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17
Prior Effective Dates: 4/8/94; 11/8/99; 9/25/00; 11/10/03
(A) Except as otherwise provided in paragraph (E) of this rule, the = authority=20 shall not grant a tax credit that exceeds seventy five per cent of the = excess=20 income tax revenue to be received by the state for a taxable year from = full-time=20 equivalent employees located at a project location.
(B) Except as otherwise provided in paragraph (F) of this rule, the = authority=20 shall not grant a tax credit that exceeds a term of ten years. The tax = credit=20 may be claimed by the taxpayer only for the consecutive taxable years = during the=20 term.
(C) The authority shall consider the following factors in determining = the tax=20 credit percentage and term to be granted to a taxpayer:
(1) The number of full-time equivalent employees to be created;
(2) The average hourly wage rate, excluding benefits, of the = full-time=20 equivalent employees to be created;
(3) The total fixed-asset investment amount the taxpayer will make or = cause=20 to be made in the project;
(4) The number of full-time equivalent employees to be retained at = the=20 project location;
(5) The economic condition of the county and region of the state = where the=20 project is to be located;
(6) The specific percentage of disadvantaged persons and minorities = the=20 taxpayer is agreeing to hire for the project;
(7) The industry sector of the project proposed for tax credit=20 assistance;
(8) The amount of direct local financial support committed to the = project;=20 and
(9) The amount of other financial assistance to be provided by the = state in=20 support of the project.
(D) In addition to the tax credit percentage and term, the authority = shall=20 also determine the =E2=80=9Cpay increase factor,=E2=80=9D as defined in = paragraph (N) of rule=20 122:7-1-01 of the Administrative Code, for each project approved. Once=20 determined, the pay increase factor shall be fixed for the term of the = tax=20 credit. The authority shall determine the pay increase factor by = either:
(1) An examination of the historic payroll growth of the taxpayer = during the=20 more recent prior three year period , if available; or
(2) An examination of the average per cent change in the consumer = price index=20 during each of the previous five years for which consumer price index = data are=20 then available. The authority shall consider this method for calculating = the pay=20 increase factor when the taxpayer has demonstrated to the satisfaction = of the=20 authority that:
(a) The historic payroll growth of the taxpayer is not reflective of=20 anticipated future growth and that a rate based upon historic payroll = growth=20 will materially curtail the taxpayer=E2=80=99s ability to create new = employment=20 positions in the state; or (b) Historic payroll information is not = available for=20 the taxpayer at the project location.
(E) The authority may grant a tax credit greater than seventy-five = per cent=20 of the excess income tax revenue to be received by the state for the = taxable=20 year from full-time equivalent employees in a project if:
(1) The proposed project receives a term of five years or less, and = the=20 executive director recommends and the authority finds that there is an=20 extraordinary circumstance which merits such an exception; or
(2) The proposed project receives a term of more than five years, and = the=20 director recommends and the authority finds that there is an = extraordinary=20 circumstance which merits such an exception.
(F) The authority may grant a tax credit term between eleven and = fifteen=20 years if the director recommends and the authority finds that there is = an=20 extraordinary circumstance which merits such an exception. the authority = shall=20 not grant a tax credit that exceeds a term allowable under division = (D)(2) of=20 section 122.17 of the Revised Code.
Replaces: 122:7-1-06
Effective: 08/27/2010
R.C. 119.032 review dates: 08/17/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17
Prior Effective Dates: 4/8/94; 11/8/99; 9/25/00; 11/10/03
(A) Each taxpayer that is party to a tax credit agreement shall = report to the=20 director annually during the term of the tax credit the number of = eligible=20 full-time equivalent employees first employed by the taxpayer at the = project=20 location as a result of the project, the total number of full-time = equivalent=20 employees employed by the taxpayer at the project location, the total = payroll=20 from operations at the project location, the income tax revenue from = operations=20 at the project location, the baseline income tax revenue for the = project, the=20 excess income tax revenue from operations at the project location, the = average=20 hourly wage of the full-time equivalent employees, the amount of any = transferred=20 payroll during the tax year, the amount of any transferred income tax = revenue=20 during the tax year and any other information the director deems = necessary to=20 perform the director=E2=80=99s duties under section 122.17 of the = Revised Code. Each=20 taxpayer=E2=80=99s report to the director shall be certified as accurate = and complete by=20 the original signature of any authorized officer of the taxpayer.
(B) The taxpayer=E2=80=99s annual report shall be postmarked prior to = or received by=20 the director no later than March first of each year immediately = succeeding the=20 calendar year that is the subject of the annual report.
(C) Each taxpayer shall maintain substantial operations at the = project=20 location for a time period consistent with division (D)(3) of section = 122.17 of=20 the Revised Code. During the post-term reporting period, the taxpayer = shall=20 submit an annual certification to the director postmarked prior to or = received=20 by the director no later than March first of each year succeeding the = calendar=20 year that is the subject of the annual certification, the taxpayer shall = submit=20 to the director a certification that includes, but is not limited to,=20 information demonstrating the taxpayer maintains operations at the = project=20 location and the total full-time equivalent employees at the project=20 location.
(D) Each taxpayer shall establish and maintain for at least four = years from=20 the conclusion of the post-term reporting period such records of the = taxpayer=20 that substantiate the employment, investment, and operations on which = the tax=20 credits are granted and issued. Such records includes, but not limited = to,=20 records of personnel, wage records for employees at the project location = and=20 conditions of employment. The taxpayer shall organize and make available = such=20 records for the review and verification of the director or the = director=E2=80=99s=20 representatives and appropriate state agencies or officials. The = taxpayer shall=20 permit such officials and their representatives to audit, examine and = make=20 excerpts or transcripts from records maintained under this rule at any = time=20 during normal business hours upon written notice as often as the = director may=20 deem necessary. In the event the director determines a taxpayer has = submitted an=20 annual report containing erroneous data or data not supported by the = records=20 maintained under this rule, the director may, after providing notice, = require=20 the taxpayer to resubmit corrected annual reports for the years in which = such=20 reports were filed with the applicable fees described in rule 122:7-1-04 = of the=20 Administrative Code. Thereafter, the director shall issue amended = certificates=20 consistent with amended data and report such amendments to the tax=20 commissioner.
(E) If a taxpayer fails to file any complete annual report during the = term of=20 the tax credit, as described in paragraph (A) of this rule, within one = hundred=20 eighty days of the March first deadline, the taxpayer may be deemed to = have=20 discontinued operations at the project location and shall be subject to = the=20 refund provisions of division (K) of section 122.17 of the Revised Code. = A=20 complete annual report shall be one that meets the requirements of = paragraph (G)=20 of this rule.
(F) If a taxpayer fails to file any complete annual post-term = reporting=20 period annual certification, as described in paragraph (C) of this rule, = within=20 one hundred eighty days of the March first deadline, the taxpayer may be = deemed=20 to have discontinued operations at the project location and shall be = subject to=20 the refund provisions of division (K) of section 122.17 of the Revised = Code. A=20 complete annual certification shall be one that meets the requirements = of=20 paragraph (G) of this rule.
(G) For the purposes of this rule, a complete annual report or = complete=20 annual certification shall mean an annual report or annual certification = that=20 complies with the filing timeframes of paragraphs (B) and (C) of this = rule and=20 includes all of the information required by paragraphs (A) and (C) of = this rule=20 in a manner proscribed by the director.
Replaces: 122:7-1-07
Effective: 08/27/2010
R.C. 119.032 review dates: 08/17/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17
Prior Effective Dates: 4/8/94; 11/8/99; 11/10/03
(A) In the event a taxpayer fails to achieve the annual payroll = committed in=20 the tax credit agreement by the date set forth in the tax credit = agreement, or=20 if the authority finds that the taxpayer has failed to comply with any = term or=20 condition of the tax credit agreement and such failure continues beyond = any=20 applicable cure period, the authority may, after providing written = notice,=20 unilaterally and prospectively reduce the percentage and/or term of the = tax=20 credit or immediately terminate the tax credit set forth in the tax = credit=20 agreement.
(B) In the event a taxpayer relocates employment positions in = violation of=20 division (D)(8) section 122.17 of the Revised Code and the taxpayer has=20 previously received tax credit certificates, the authority may, after = providing=20 written notice, reduce the tax credit rate to preclude the taxpayer from = taking=20 any further credits for the term of the tax credit. In the event a = taxpayer=20 relocates such positions and has not previously received a tax credit=20 certificate, the authority may terminate the tax credit.
(C) The authority shall cause written notice to be given to the = affected=20 taxpayer of any proposed action to reduce the percentage or term of the = tax=20 credit or to terminate the tax credit agreement. Such notice shall be = given at=20 least thirty days prior to the authority meeting at which the action is = to be=20 considered, and such notice shall be effective if sent in accordance = with the=20 notice requirements of the tax credit agreement.
(D) The authority shall specify in any action reducing the percentage = or term=20 of a tax credit or terminating a tax credit agreement the taxable year = for which=20 the remedial action shall first be effective.
Replaces: 122:7-1-08
Effective: 08/27/2010
R.C. 119.032 review dates: 08/17/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17
Prior Effective Dates: 4/8/94; 11/8/99; 11/10/03
(A) As required by division (D)(8) of section 122.17 of the Revised = Code, a=20 taxpayer that relocates a substantial number of employment positions = from other=20 operations of the taxpayer within the state but outside the political=20 subdivision in which the project location is located to the project = location=20 shall notify the legislative authority of the county(s), township(s) or=20 municipal corporation(s) from which the relocated employment positions = are to be=20 moved. The taxpayer shall also concurrently send a copy of the notice to = the=20 executive director. The notice shall contain the following = information:
(1) The number of full-time equivalent employees and employment = positions=20 that will be relocated;
(2) The payroll attributable to the relocated employees and relocated = employment positions;
(3) The business reason for the relocation of employees or employment = positions; and
(4) The location of the project location.
(B) A taxpayer that relocates any employment position(s) from other=20 operations of the taxpayer within the state but outside the political=20 subdivision in which the project location is located to the project = location or=20 from other operations of the taxpayer from within the same political = subdivision=20 to the project location shall certify the amounts of transferred payroll = in the=20 annual report required under paragraph (A) of rule 122:7-1-07 of the=20 Administrative Code that is due in the year immediately following the=20 relocation. The annual report shall include the items listed in = paragraph (A) of=20 this rule.
(C) The notices required in paragraph (A) of this rule shall be sent = by=20 certified mail, delivery confirmed courier or acknowledged personal = delivery,=20 prior to the relocation of the employee(s).
(D) If a taxpayer relocates a substantial number of employment = positions, as=20 defined in paragraph (R) of rule 122:7-1-01 of the Administrative Code, = the=20 transferred income tax attributable to the relocated employment = positions shall=20 be added to both the project=E2=80=99s income tax revenue and baseline = income tax=20 revenue.
(E) If a taxpayer relocates fewer than a substantial number of = employment=20 positions, as defined in paragraph (R) of rule 122:7-1-01 of the = Administrative=20 ode, then the transferred income tax revenue related to the transferred = payroll=20 shall be added to the income tax revenue, as defined by division (A)(1) = of=20 section 122.17 of the Revised Code, in the year following the tax year = in which=20 the relocation occurred. A taxpayer shall derive no tax credit benefit = under=20 section 122.17 of the Revised Code from the relocation of employees in = the year=20 in which the relocation occurred.
(F) When the executive director believes there has been a violation = of=20 paragraph (A) or (B) of this rule, the executive director shall inform = the=20 director. If the director agrees that a violation has occurred, the = director may=20 recommend to the authority that the taxpayer be subject to a remedial = action=20 pursuant to rule 122:7-1-08 of the Administrative Code.
When a violation has occurred the director shall issue amended tax=20 certificates, if necessary, to the taxpayer to properly account for the = effect=20 of the relocated payroll for each tax year in which the relocated = employees were=20 employed at the project location. The director shall forward a copy of = each=20 corrected tax certificate to the tax commissioner or in the case of an = insurance=20 company, to the superintendent of insurance.
Effective: 08/27/2010
R.C. 119.032 review dates: 08/17/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17