IRS Provides 1 Year Extension to Claim Missed Repair Deductions on 2015 Returns

Re-printed with permission by author: Craig Miller, CPA, CGFM, MBA, Duffy+Duffy Cost Segregation Services, Inc.

The recently released Rev. Proc. 2016-29 details new procedures for automatic accounting method changes and effectively provides a one year extension for taxpayers to implement many portions of the Tangible Property Regulations (TPR).

The TPR provide rules to determine whether an amount paid for during the life of tangible property is deductible or must be capitalized. Also, these regulations provide guidance for dispositions of tangible property. Specifically, the TPR provides rules covering five basic areas:

1.      Materials and supplies;

2.      Capitalized costs (including the de minimis safe-harbor election);

3.      Costs to acquire or produce tangible property;

4.      Costs to improve tangible property;

5.      Dispositions of modified accelerated cost-recovery system (MACRS) property  and general asset accounts (GAA).

Taxpayers are generally not permitted to make an automatic method change if they made a change for the same item within the previous five tax years. The "5-year rule" was waived under Rev. Proc. 2015-13 for implementing TPR changes for any tax year beginning before January 1, 2015. This gave taxpayers (who may have early adopted the Temporary Regulations) the ability to unwind or correct previous TPR related accounting method changes. Rev. Proc. 2016-29 further extends this waiver to any tax year beginning before January 1, 2016, effectively providing a one year extension to comply with the TPR.

It is important to note that Late Partial Dispositions (DCN #196) are not affected by the 5-year rule waiver since this automatic accounting method change is not allowed for tax years beginning on or after January 1, 2015.

Craig Miller is president of Duffy + Duffy, Cost Segregation Services, Inc. Duffy + Duffy is one of the leading Cost Segregation firms in the industry – performing studies based on case law and IRS guidance using CPA’s, and construction engineers and estimators. Cost Segregation allows commercial building owners to generate cash flow by accelerating depreciation deductions on their buildings and deferring taxes. For more information, contact Craig Miller, CPA, CGFM, MBA at 440-892-3339, or visit

Ohio's Ports: Facts and Statistics

A couple of weeks ago, I published information regarding Ohio EPA's dredged material program. Today I want to provide some fun facts about each of Ohio's 8 harbors on Lake Erie.  All information was obtained from statistics provided by the Ohio EPA.

Toledo Harbor

8,800,000 tons of commodities (coal, petroleum, aggregates, metal products, limestone, grain, chemicals, iron ore, steel products, cement, ores, minerals, flour and sugar) are moved through the harbor. This activity generated $7,070,000,000 in business revenue with jobs that generated $[1,370,000,000] per year in personal income. Toledo accounts for 55% of the dredged material each year, averaging 850,000 cubic yards. This equals 114,750 dump trucks filled and lined up for 652 miles.

Sandusky Harbor

3,000,000 tons of commodities (coal and salt) are moved through the harbor. This activity generated $604,000,000 in business revenue with jobs that generated $30,100,000 per year in personal income. Sandusky accounts for 9% of the dredged material each year, averaging 140,000 cubic yards. This equals 18,900 dump trucks filled and lined up for 107 miles.

Huron Harbor

367,000 tons of commodities (limestone and grain) are moved through the harbor. This activity generated $63,200,000 in business revenue with jobs that generated $18,500,000 per year in personal income. Huron accounts for 6% of the dredged material each year, averaging 95,000 cubic yards. This equals 12,825 dump trucks filled and lined up for 73 miles.

Lorain Harbor

988,000 tons of commodities (aggregates, ores, limestone, minerals and chemicals) are moved through the harbor. This activity generated $215,000,000 in business revenue with jobs that generated $60,100,000 per year in personal income. Lorain accounts for 4% of the dredged material each year, averaging 66,667 cubic yards. This equals 9,000 dump trucks filled and lined up for 51 miles.

Cleveland Harbor

11,500,000 tons of commodities (sand, gravel, salt, limestone, iron ore, cement, concrete, general cargo and liquid bulk) are moved through the harbor. This activity generated $10,500,000,000 in business revenue with jobs that generated $2,170,000,000 per year in personal income. Cleveland accounts for 15% of the dredged material each year, averaging 225,000 cubic yards. This equals 30,375 dump trucks filled and lined up for 173 miles.

Fairport Harbor

1,500,000 tons of commodities (aggregates, ores, limestone and minerals) are moved through the harbor. This activity generated $161,000,000 in business revenue with jobs that generated $40,100,000 per year in personal income. Fairport accounts for 5% of the dredged material each year, averaging 75,000 cubic yards. This equals 10,125 dump trucks filled and lined up for 58 miles.

Ashtabula Harbor

5,000,000 tons of commodities (coal, iron ore, limestone, chemicals, ores and minerals) are moved through the harbor. This activity generated $2,960,000,000 in business revenue with jobs that generated $611,000,000 per year in personal income. Ashtabula accounts for 3% of the dredged material each year, averaging 50,000 cubic yards. This equals 6,750 dump trucks filled and lined up for 38 miles.

Conneaut Harbor

4,800,000 tons of commodities (coal, iron ore, limestone, lime, ores and minerals) are moved through the harbor. This activity generated $3,160,000,000 in business revenue with jobs that generated $850,000,000 per year in personal income. Conneaut accounts for 3% of the dredged material each year, averaging 40,000 cubic yards. This equals 5,400 dump trucks filled and lined up for 31 miles.

Supreme Court of Ohio Applies “Bedford Rule”- Helps Property Owner Prevail in Real Estate Tax Complaint

When it comes to filing real estate tax complaints, many of us know that the sale price in an arm's length transaction between a willing seller and a willing buyer is usually considered by the applicable board of revision in rendering its decision. This is generally good news when a buyer buys for less than the current valuation, and not so good news when a buyer buys for more than the then current valuation.

What if there is no recent sale involved? Does it still make sense to challenge your property’s increased valuation (and consequently, the taxes paid)? Can a property owner’s appraisal really stand a chance against the applicable county auditor’s opinion of value?

As to whether or not it makes sense to challenge your property’s increased valuation, it of course, depends. It basically depends on how much extra taxes will need to be paid, for how long, and the attorney, appraiser and other fees involved with a complaint.  If you take the increase in market value and multiply the same by the “tax as a percent of market” percentage (which you can get from your county auditor or local tax district), you can come close to determining the extra amount in taxes you will be faced with as a result of your property’s increased valuation (please note that there are additional factors that may not be included in this estimate such as special assessments and homestead exemption figures).

For example, let’s say the county increased the value of your property by $20,000. While that number is significant, if your tax as a percent of market” is 2%, your taxes would only increase by $400/yr.  On the other hand, a $100,000 valuation increase on a commercial property with the same tax rate would result in taxes increasing by $2,000/yr. Since valuation in Ohio is updated every three years (each three year period being a “triennial”), you could be faced with a $6,000 increase (in our commercial example) if the year of increased valuation is the first year of a triennial.  If an appraisal costs, say $2,000, and an attorney will take the case on a contingency basis, the challenge would be worth it.  You basically need to do a cost/benefit analysis for every situation in order to determine if it makes sense to challenge your property’s increased valuation. It is important to note, however, that for residential properties; most county auditors have an informal procedure where homeowners can challenge an increase in valuation without appraisers and attorneys.

The Supreme Court of Ohio in Dublin City Schools Bd. of Edn. v. Franklin Cty. Bd. of Revision, Slip Opinion No. 2016-Ohio- 3025 (“Dublin”) answered our second query (regarding whether or not a property owner’s appraisal stands a chance against a county auditor’s opinion of value), in the affirmative.  In Dublin, the County Auditor valued a two-story office building in Franklin County (with a bank on its ground floor) at $2,205,000, and the owner sought a value of $1,000,000 based on an appraisal it presented to the Franklin County Board of Revision (“BOR”). The BOR agreed with the owner, and appellant, the Dublin City Schools Board of Education (“BOE”), appealed to the Board of Tax Appeals (“BTA”), which affirmed the BOR’s valuation. Thereafter, the BOE appealed to the Supreme Court of Ohio.

The BOE in Dublin argued that flaws in the owner’s appraisal made it not probative and accordingly, the BTA should have automatically reverted to the auditor’s original valuation of the property. Among the issues the BOE had with the appraisal were that: 1) the comparables were “not even remotely comparable,” (even though the comps were office buildings within the same geographic area as the subject property, none of the sale comparables included a bank as part of the property); and 2) the appraisal used LoopNet, a listing service, and county records for verifying the arm’s-length character of the sales, rather than through direct contact with parties to the sale. The BOE did not however present any new evidence of value at the board of revision hearing, or at the BTA.

The Supreme Court of Ohio shot down the BOE’s arguments based upon a straightforward application of what the court has called “the Bedford Rule,” based on the following case: Bedford Bd. of Edn. v. Cuyahoga Cty. Bd. of Revision, 2007-Ohio-5237.  “Pursuant to that rule, ‘when the board of revision has reduced the value of the property based on the owner’s evidence, that value has been held to eclipse the auditor’s original valuation,’ and the board of education as the appellant before the board of tax appeals may not rely on the latter as a default valuation.” Instead, pursuant to this Rule, the board of revision’s adopting a new value based on the owner’s appraisal (or other evidence) has the effect of shifting the burden of proof to the board of education, on appeal to the board of tax appeals.

The court then recognized that the BTA correctly applied the Bedford Rule in Dublin. Even though the BOE at the BTA found fault with the evidence that the owner presented before the board of revision, under the Bedford Rule, as long as the evidence of value that the owner presented to the board of revision was “competent and at least minimally plausible”, the board of education may not invoke the auditor’s original valuation as a default value; rather, the burden shifts to the board of education to prove a new value, and the BOE in Dublin did not offer any proof.

Does the Bedford Rule apply in every situation?  No. According to the court, the Bedford Rule applies when four (4) factors are present: "First, the Bedford Rule applies in a case in which the property owner either filed the original complaint… or filed a counter-complaint… Second, the Bedford Rule applies when the board of revision has ordered a reduced valuation based on competent evidence offered by the property owner... Third, the Bedford Rule applies when the board of education is the appellant before the BTA…The fourth and final element of the Bedford Rule is that the board of revision’s determination of value is based on appraisal evidence rather than a sale price offered as the property value.”

While the appellant in Dublin did argue that the second factor of the Bedford Rule was not present (no competent evidence), the Supreme Court of Ohio basically told the BOE that it was too late. According to the court, “These observations constitute matters that are among those consigned to the expertise of the appraiser and to the board of revision and the BTA as fact-finders. This appeal seeks to cast us in the role of “ ‘super BTA,’ ” but … we decline that role now.”

Ohio EPA's Draft Beneficial Use Rules

In my article a couple of weeks ago, I covered some of the information in the Ohio EPA's Dredged Material Program. Due to state law in Ohio prohibiting open lake disposal of dredged material in Lake Erie after July 2020, the limited space left in confined disposal sites, we need to quickly develop cost effective ways to find a beneficial use for the dredged materials. For this reason the Ohio EPA is attempting to develop Beneficial Use rules that provide a framework that will facilitate the reuse of dredged materials.

Below are the links to the Interested Party draft of the Beneficial Use Rules and related information. Changes have been made to the draft based on comments that the Ohio EPA has received and it anticipates filing an official draft with the Joint Committee on Agency Rule Review later this summer (targeting June 2016).
Beneficial Use Rules

§  Business Impact Analysis Beneficial Use Rules, Ohio Administrative Code 3745-599

§  3745-599-01 Draft Beneficial Use - Applicability 

§  3745-599-02 Draft Beneficial Use - Definitions 

§  3745-599-03 Draft Beneficial Use - Incorporation by Reference 

§  3745-599-05 Draft Beneficial Use - General Exclusions 

§  3745-599-10 Draft Beneficial Use Byproduct Incorporated into Certain Construction Materials or Used as a Fuel or as an Ingredient in a Combustion Unit

§  3745-599-20 Draft Beneficial Use - Prohibitions 

§  3745-599-25 Draft Beneficial Use - Signatures 

§  3745-599-30 Draft Beneficial Use - Relationships Among Authorizing Documents, Rules and the Authority of the Director and Board of Health

§  3745-599-35 Draft Beneficial Use - Legitimacy Criteria 

§  3745-599-60 Draft Approved Sampling and Characterization Procedures for the Use of a Beneficial Use Byproduct 

§  3745-599-200 Draft General Beneficial Use Permit

§  3745-599-210 Draft Notice of Intent to Obtain Coverage Under a General Beneficial Use Permit

§  3745-599-220 Draft Coverage Under a General Beneficial Use Permit 

§  3745-599-310 Draft Application for an Individual Beneficial Use Permit 

§  3745-599-320 Draft Issuance of an Individual Beneficial Use Permit 

§  3745-599-330 Draft Notice and Information for Distribution - Individual Beneficial Use Permits 

§  3745-599-334 Draft Generator Obligations for Record-keeping and Reporting - Individual Beneficial Use Permits 

§  3745-599-335 Draft Distributor Obligations for Record-keeping and Reporting - Individual Beneficial Use Permits 

§  3745-599-340 Draft Characterization and Analysis Plan for Individual Beneficial Use Permits

§  3745-599-345 Draft Compliance Sampling and Analysis for Individual Beneficial Use Permits

§  3745-599-350 Draft Changes to an Individual Beneficial Use Permit

§  3745-599-360 Draft Renewal of an Individual Beneficial Use Permit 

§  3745-599-370 Draft Denial and Revocation of a Beneficial Use Permit

Interested Party Review - 2015 Draft Beneficial Use Rules

Draft General Permits - March 2014

Interested Party Webinar Power Point - June 10, 2015 

Interested Party Webinar Audio - June 10, 2015 


Most investors of commercial real estate understand the importance of “due diligence”; a term often used to describe the process of investigating anything and everything about the property to be purchased. Confirming what property is being received, what condition it is in, what can or cannot be done with the property, and what risks are inherent in its ownership are of critical importance and warrant formal and extensive due diligence inspection rights in the commercial contract.  Title commitments, surveys, environmental
audits, and building inspection reports are the most often utilized tools found in a “diligence tool box.”

There is no need for diligence in a residential transaction, is there? Don’t the broker forms all have inspection rights already in their contract forms? It is not like we are dealing with multi-million dollar properties, right?  

We often hear questions like these, and unfortunately, most often we hear them after the contract has been signed, when it is usually too late to be intelligently preemptive.  The answers are:  (1) yes, there is need for diligence in residential transactions; (ii) yes, the broker forms all have inspection rights already in their contract forms, but thee forms don’t go far enough; and (iii) it doesn’t matter if the property being purchased is for $100,000 or $1,000,000; most real estate issues/problems don’t discriminate based upon price. Actually, buyers of lower priced properties often fare worse than buyer-investors of higher priced real estate because they are less likely to be able to absorb a loss, unwanted litigation or unbudgeted for expenses.

Simply put, diligence is needed in any real estate transaction because the buyer is usually at a disadvantage. More often than not, the buyer has little or no knowledge concerning the property, but must diligently investigate and inspect it or risk understanding, all too well, the still surviving doctrine of “caveat emptor” (let the buyer beware).  Most broker forms, do indeed give the buyer the right to perform inspections, but they are often limited to the following: “General Home Inspection”; “Pest Inspection”; “Radon Inspection” and “Lead Paint Inspection”.  I have yet to see a broker contract form that calls for a title commitment to search for title issues such as liens and easements, or allows for a survey to check for boundary lines and encroachments.

Additionally, with respect to the limited inspection rights that are included within a broker contract, (i) sellers and brokers usually push for tight inspection time frames (3-7 days), and (ii) the canned contract language to deal with a problem is often muddled and more seller than buyer friendly. For example, most broker forms only allow the buyer to terminate, if a “latent, material defect is discovered that was not previously disclosed by seller”. Of course, none of the adjectives are defined in the contract. Moreover, buyer can only get its deposit back if buyer and seller agree and sign a mutual release. Obviously, when issues arise between buyer and seller, they seldom agree with each other.

What Due Diligence is recommended for Residential Transaction?
I. "Pre-contract Diligence"

 Talk to neighbors. Find out, for example if they can hear the train from nearby tracks, or commercial activity from the next door commercial property. Visit the property after a hard rain to see if there are visible drainage issues. Observe traffic patterns during rush hour vs. quiet, open-house Sundays. Surf the Net. Crime statistics, sexual predator registries, County Auditor tax information and local issues (such as overflowing street sewers or a new planned highway overpass) can easily be found online these days. Make sure you ask for the state mandated “Property Disclosure Form.” The lack of information should not convince you all is well, but the fact of recent roof leaks, for example may dissuade you, or give you more room to negotiate price. If you are buying a condo, ask to see the Declaration, By-Laws, Rules, Budget, and Statement of Reserves of the Homeowner’s Association. The rules, for example might disallow pets or leasing the condo. The financial information (or lack thereof) might indicate that the old roof may stay old awhile longer. 

 “Pre-contract diligence” may not produce information to discourage a purchaser. On the other hand, if it does, the time, money and stress inherent in the real estate purchase/sale process can be avoided early on. Of course, the purchaser may be happy with the results. While that is “a good thing”, the diligence process, at this point should be considered as just beginning, not ending.

II. “Post Contract Diligence”

Every buyer should have the property they are buying inspected to minimize the risk that they are also buying the property’s problems. Whether or not using a broker form, the purchase agreement should, at a minimum authorize physical inspections, allow for an adequate time period for the inspections and provide remedies/contingencies to the buyer in the event any of the inspection reports reveals defects (i.e. seller’s obligation to cure defects; buyer’s right to cancel the purchase). One way to get beyond the issues with the broker forms discussed above would be to define “material defect” in terms of a dollar threshold to repair.

While a purchaser should certainly be happy if its prospective property is free of physical defects, the buyer should be equally concerned that title to the property is free of defects, or “marketable”, and seek assurance of the same. You wouldn’t buy a car with a lien against it, or if there was a question as to whether or not the seller owned it. The same basic principle is involved when buying a house, except there could be a lot more and different types of encumbrances/claims against the title. For example, your neighbor might have a recorded right to use your driveway to get to his/her house (also generally known as an “easement”).

Most contracts and forms will provide that Seller is to provide buyer with a title insurance policy at closing, but many of those forms state that the title will be subject to items of record, and facts a survey would show. So, if a search of title shows the afore-mentioned driveway easement of record, you get title to the property, but it is subject to that easement. Moreover, if a survey later shows that your neighbor is also using 10’ of your property, as its own, you could be in for costly litigation, after closing to try and get that 10’ back. Can this be prevented? Easily. All you need to do is  add to the contract, that in addition to the physical inspections, you want a Title Commitment and Survey (and a right to terminate if there are defects/encroachments). A “title commitment” is simply a contract by the insurance company to enter into an insurance policy (contract) with the buyer, whereby the title insurance company will guarantee good title, subject to exceptions it finds upon a title search of the property. If your title commitment or survey show problems such as easements and liens having been filed against the property, better to know this sooner vs. later so you can, if you need to, walk away, get your money back and find a property without title/survey issues.

One other way to ensure that you cover your diligence tracks, without having to write in the margins of a form contract is to add an Addendum to the Contract, comparable to the following, sometimes referred to as a “free look”:

“Buyer shall have a period of fifteen (15) days (the “Due Diligence Period”) from the latest date the mutually signed Agreement and this Addendum were signed by a party hereto (the “Effective Date”) to inspect the Property and to perform such investigations, review of title, survey, condominium documents (if applicable) and otherwise engage in such inspections and investigations as desired by the Buyer.  Seller agrees to cooperate with Buyer to allow Buyer and its agents to enter the Property for such inspections and investigations and to assist (without expense to Seller) in obtaining information requested by Buyer.  Should Buyer determine that the Property is not suitable for any or no reason in Buyer’s sole and absolute discretion, Buyer may terminate the Agreement by providing written notice thereof to Seller no later than the last day of the Due Diligence Period.  Upon such termination, all earnest money deposits will be promptly returned to Buyer (without further action of the parties), and the parties will have no further obligations hereunder.  Should Buyer fail to timely terminate the Agreement as described above, Buyer shall no longer have the right to terminate the Agreement under this provision.  The inspections set forth in this Addendum are in addition to, and not in lieu of, the other inspections of Buyer under the Agreement, and in the event of conflict (between any provisions of the Agreement and this Addendum concerning timing, rights of the parties and otherwise re: inspections), this Addendum shall control.

Do you have to go through the above-mentioned diligence process when buying a house or condo? Many buyers purchase property without doing any diligence, and have lived happily ever after, right? The simple answers to the above questions are no, and yes. However, if you are considering buying any real estate without a due diligence process, to quote Clint Eastwood, in the movie Dirty Harry: “You’ve gotta ask yourself one question: “Do I feel lucky? Well, do ya…” As lawyers, we only see the unlucky ones after the sale. 

State Law Matters: Ohio's Lake Erie Dredged Material Program

All of the information below was taken from the Ohio Environmental Protection Agency web page for its Dredged Material Program

If you live or work along Ohio’s northern border, aka Lake Erie, particularly near one of Ohio’s 8 ports, then you may be aware of the need to regularly dredge our shipping channels and the controversy that has been brewing with regard to what is done with the dredged material.  Currently, some or all of the dredged material, depending on where along the lakeshore the dredging occurs, is dumped in the open lake. By July 2020, the State of Ohio will no longer permit disposal of dredged material in the open waters of Lake Erie.

The Ohio EPA and others are scrambling to look for cost effective solutions for the material that is dredged, much, if not most, of which is suitable for reuse.  Here are a few FAQs that are published on the Ohio EPA’s web site:

What is dredged material?

Dredged material includes material excavated or dredged from a lake or stream. The Ohio EPA beneficial use program focuses only on material dredged from federal navigation channels on Lake Erie during harbor or navigation maintenance activities. Dredged material can consist of soil, sand, silt, clay and organic matter that have settled out onto the bottom of the channel. 

What if I want to beneficially us dredged material from a federal navigation channel in an upland setting, do I need Ohio EPA approval?

Yes. If you wish to beneficially use dredged material in an upland setting, you will need to first submit a Land Application Management Plan (LAMP) permit application by completing LAMP Form A and LAMP Form C1 which can be found here (click on the “I-N” Tab and then click on the “LAMP Form” bar to access the forms). In addition, you will need to submit a description of how you will manage, store and/or treat the dredge prior to beneficially using the dredged material. You must also submit all sampling and analysis data of the dredged material along with all proposed beneficial uses. If you are interested in beneficially using dredged material in an upland setting, please contact Ohio EPA’s Division of Materials and Waste Management at 614-644-2621 and they will answer any questions you may have, help you complete the LAMP permit application and assist with the authorization process. 

Is Ohio EPA developing beneficial use rules for dredged materials?

Yes. Ohio EPA is in the process of developing beneficial use rules which will include the use of dredged material from federal navigation channels. In May, 2015, draft beneficial rules were released for interested party comment. Ohio EPA is reviewing the comments received and anticipates taking the first step in the formal part of the Ohio rule-making process by filing proposed rules and providing an Ohio EPA public hearing and comment period early in 2016. Following consideration of formal public comments and testimony, the proposed rules will have a separate hearing before the Ohio Legislative Joint Committee on Agency Rule Review. Once these have been completed, we will file final rules and set an effective date. Until the rules are finalized, the LAMP process described above should be followed. 

Has the Ohio EPA approved the beneficial use of dredged material?

Yes. To date, Ohio EPA has issued two Land Application Management Plan permit authorizations for the beneficial use of dredged material. They are both associated with the beneficial use of dredged material from a Confined Disposal Facility located in Cleveland, Ohio. The first authorization was issued on June 29, 2015; the second authorization was issued on Nov. 5, 2015.

The Army Corp of Engineers oversees the dredging. It typically covers the cost of dredging and disposal of the dredged material, but only at the level of the most affordable option. Open lake dumping of the dredged material is the lowest cost option available today. If another method of disposal is required, as it will be after July 2020 in Ohio, we will have to come up with the money to pay the cost differential.  We have 4 years to figure that out and implement the solution.

Stay tuned for future updates.

Pending Ohio Corporate & Real Estate Legislation

Prepared by/reprinted with permission from: Luther Liggett, Esq., Kohrman, Jackson & Krantz, PLL10 W. Broad Street, 19th Floor Columbus OH 43215-(614) 427-5742 -
Report created on April 26, 2016

BUSINESS FILING FEES-JOBS WEBSITE (DERICKSON T, ROMANCHUK M) To reduce certain business filing fees charged and collected by the Secretary of State and to specify that Ohio-based companies are to have access to appropriate features of the OhioMeansJobs web site.

Current Status:
6/25/2015 - SIGNED BY GOVERNOR; eff. 9/24/15
ORC Sections:
111.16, 1329.01, 6301.16

TIF-INCENTIVE DISTRICTS (BUTLER, JR. J, BURKLEY T) To establish a procedure by which political subdivisions proposing a tax increment financing (TIF) incentive district are required to provide notice to the record owner of each parcel within the proposed incentive district before creating the district, and to permit such owners, under specific conditions, to exclude their parcels from the incentive district by submitting a written response.

Current Status:
2/16/2016 - House Ways and Means, (Third Hearing)
ORC Sections:
5709.40, 5709.73, 5709.77, 5709.78, 5709.911

FLAG-BANNER DISPLAY (GONZALES A, GINTER T) To prohibit manufactured homes park operators, condominium associations, neighborhood associations, and landlords from restricting the display of blue star banners, gold star banners, and other service flags, and to prohibit manufactured homes park operators and landlords from restricting the display of the United States flag.
Current Status:
11/18/2015 - SUBSTITUTE BILL ACCEPTED & REPORTED OUT, Senate State and Local Government, (Third Hearing)
ORC Sections:
4781.401, 5301.072, 5311.191, 5321.131

OIL-GAS LEASE INCOME (AMSTUTZ R) To use one-half of any income from oil and gas leases on state land to fund temporary income tax reductions, to modify the law governing the use of new Ohio use tax collections from remote sellers for income tax reductions, and to require the Director of Budget and Management to recommend whether or not income tax rates should be permanently reduced after the Director certifies a temporary rate reduction resulting from the accrual of money in the Income Tax Reduction Fund.

Current Status:
11/18/2015 - Senate Ways and Means, (First Hearing)
ORC Sections:
131.44, 1509.73, 5741.01, 5741.03, 5741.032

AIRLINE-AIR FREIGHT COMMISSION (BARNES, JR. J) To create the Commercial Airline and Air Freight Commission.

Current Status:
4/14/2015 - House Transportation and Infrastructure, (Third Hearing)
ORC Sections:

ENERGY IMPROVEMENT DISTRICTS (CONDITT M) To authorize port authorities to create energy special improvement districts for the purpose of developing and implementing plans for special energy improvement projects and to alter the law governing such districts that are governed by a nonprofit corporation.

Current Status:
5/6/2015 - BILL AMENDED, House Public Utilities, (Fourth Hearing)
ORC Sections:
1710.01, 1710.02, 1710.021, 1710.03, 1710.04, 1710.05, 1710.06, 1710.061, 1710.07, 1710.11, 1710.12, 1710.13, 1710.20, 1710.21, 1710.22, 1710.23, 1710.24, 1710.25, 1710.26, 1710.27, 1710.28, 1710.29, 1710.30, 1710.31, 1710.32, 1710.33, 1710.34, 1710.35, 1710.36, 1710.37, 1710.40, 4582.06, 4582.31

CONTRACTOR REGISTRATION (PATMON B) To require statewide registration of home improvement contractors, to modify the membership of the Ohio Construction Industry Licensing Board, and to make an appropriation.

Current Status:
11/17/2015 - SUBSTITUTE BILL ACCEPTED, House Commerce and Labor, (Fifth Hearing)
ORC Sections:
4740.01, 4740.02, 4740.03, 4740.04, 4740.05, 4740.06, 4740.061, 4740.07, 4740.08, 4740.09, 4740.10, 4740.101, 4740.12, 4740.13, 4740.131, 4740.15, 4740.16, 4740.18, 4740.19, 4740.20, 4740.21, 4740.99

OIL-GAS ROYALTY STATEMENT (CERA J) To require the owner of an oil or gas well to provide a royalty statement to the holder of the royalty interest when the owner makes payment to the holder.

Current Status:
3/10/2015 - House Energy and Natural Resources, (First Hearing)
ORC Sections:
1509.30, 1509.99

CEMETERIES-PROPERTY TAX (GREEN D) To lengthen the maximum term of a property tax levied for the purpose of operating a cemetery.

Current Status:
4/28/2015 - House Ways and Means, (Second Hearing)
ORC Sections:

DENTAL INSURERS-NO FEE SCHEDULE (DEVITIS A) To prohibit a health insurer from establishing a fee schedule for dental providers for services that are not covered by any contract or participating provider agreement between the health insurer and the dental provider.

Current Status:
4/12/2016 - Senate Insurance, (Third Hearing)
ORC Sections:
1753.07, 1753.09, 3901.21, 3963.01, 3963.02, 3963.03

VETERAN-OWNED BUSINESSES (CRAIG H, ANTANI N) To provide a bid preference for state contracts to a veteran-owned business and to authorize a personal income and commercial activity tax credit for a business that hires and employs a veteran for at least one year.

Current Status:
4/28/2015 - House Ways and Means, (First Hearing)
ORC Sections:
125.01, 125.09, 125.11, 3772.033, 5747.61, 5747.98, 5751.55, 5751.98

PHARMACY BENEFIT MANAGERS (BROWN T, CERA J) To regulate pharmacy benefit managers.

Current Status:
3/25/2015 - Referred to Committee House Insurance
ORC Sections:
3901.43, 3901.431, 3901.432

STEM PARTNERSHIP PROGRAM (MCCOLLEY R, HOWSE S) To establish the STEM Public-Private Partnership Pilot Program to provide high school students the opportunity to receive education in a targeted industry while simultaneously earning high school and college credit and to make an appropriation.

Current Status:
4/14/2015 - Referred to Committee House Finance

HOTEL SALES-USE TAX (GROSSMAN C, SCHERER G) To require hotel intermediaries to collect and remit applicable sales and use tax on the full amount paid for hotel lodging, to require hotel intermediaries to supply customers with itemized invoices, to specify that a hotel intermediary is presumed to have "substantial nexus" with Ohio if the intermediary arranges lodging at Ohio hotels, and to specify that hotels are not liable for the failure of a hotel intermediary to properly collect or remit applicable taxes.

Current Status:
4/12/2016 - House Ways and Means, (Third Hearing)
ORC Sections:
351.021, 353.06, 5739.01, 5739.081, 5739.09, 5739.12, 5739.13, 5741.01, 5741.12, 5741.13

PRECIOUS METAL DEALERS (HENNE M, CRAIG H) To make changes to the licensing and records requirements, exemptions, penalties, and other provisions of the Precious Metal Dealers Law and to limit the amount precious metal dealers may charge the true owner of stolen property when restoring that property to the true owner.

Current Status:
4/28/2015 - Referred to Committee House Commerce and Labor
ORC Sections:
4728.01, 4728.02, 4728.03, 4728.04, 4728.05, 4728.06, 4728.061, 4728.07, 4728.08, 4728.09, 4728.10, 4728.11, 4728.12, 4728.13, 4728.14, 4728.16, 4728.17, 4728.18, 4728.99

GRADUATE DEGREE-ENTREPRENEURIAL SKILLS (BARNES, JR. J) With regard to entrepreneurial skills education requirements for professional graduate degree programs at state institutions of higher education.

Current Status:
5/12/2015 - House Education, (First Hearing)
ORC Sections:

GLOBAL MARKET PROGRAM (BARNES, JR. J) To establish the "Access to Global Market Opportunities for Ohio Manufactured Products Program" to be composed of the "Ohio Global Leadership Initiative" and the "Global Initiative on International Relations" to create new, untapped global markets for Ohio businesses and thereby promote job creation.
Current Status:
5/27/2015 - House Economic and Workforce Development, (Third Hearing)
ORC Sections:

RESIDENCY REQUIREMENTS (MAAG R) To prohibit a public authority from requiring a contractor to employ a certain percentage of individuals from the geographic area of the public authority for the construction or professional design of a public improvement.

Current Status:
10/21/2015 - Senate Government Oversight and Reform, (First Hearing)
ORC Sections:
153.013, 5525.26, 9.49

PATENT INFRINGEMENT (ROEGNER K) To prohibit a person from engaging in the widespread sending of bad faith, objectively baseless communications of patent infringement and to authorize the Attorney General to investigate and institute a civil action if the Attorney General believes a person has made such assertions of patent infringement.

Current Status:
5/26/2015 - House Judiciary, (First Hearing)
ORC Sections:
2307.66, 2307.67

MOTOR VEHICLE REPAIR BOARD (BLESSING III L, REZABEK J) To extend the jurisdiction of the Motor Vehicle Repair Board to persons who perform motor vehicle mechanical repairs, to require motor vehicle repair facilities to register with the Board, and to make other changes to the Motor Vehicle Repair and Window Tint Operator Law, and to further enact new section 4775.03 and repeal section 4775.03 of the Revised Code on January 1, 2016, to dissolve the existing Motor Vehicle Repair Board and replace it with a new board of the same name.

Current Status:
6/9/2015 - House Commerce and Labor, (First Hearing)
ORC Sections:
4775.01, 4775.02, 4775.03, 4775.04, 4775.05, 4775.06, 4775.07, 4775.08, 4775.09, 4775.10, 4775.11

STARTUP OHIO INITIATIVE (STINZIANO M) To establish the Startup Ohio initiative in which universities and partnering business may collaborate in tax-free areas near campuses in this state to create jobs, attract entrepreneurs, and spur academic enrichment and to direct the Director of Budget and Management to transfer $100 million to the Ohio Venture Capital Program Fund.

Current Status:
5/19/2015 - Referred to Committee House Economic and Workforce Development
ORC Sections:
150.03, 195.01, 195.02, 195.03, 195.04, 195.05, 195.06, 195.07, 195.08, 195.09, 195.10, 195.11, 195.12, 195.13, 195.14, 322.02, 5709.071, 5739.02, 5739.03, 5747.01, 5751.01

SELF-INSURING EMPLOYERS (HENNE M, RETHERFORD W) To modify the requirements for an employer to become a self-insuring employer for purposes of the Workers' Compensation Law, to transfer authority over the workers' compensation self-insurance program to the Superintendent of Insurance, and to allow certain employers and groups of employers to obtain workers' compensation coverage from a private workers' compensation insurer.

Current Status:
2/9/2016 - House Insurance, (Third Hearing)
ORC Sections:
1561.04, 1561.31, 1701.86, 1729.55, 2705.05, 2913.48, 3121.01, 3121.0311, 3701.741, 3702.51, 3937.01, 3955.05, 3964.02, 3971.01, 3971.03, 3971.04, 3971.05, 3971.06, 3971.07, 3971.08, 3971.09, 3971.10, 3971.11, 3971.12, 3971.15, 4121.121, 4121.31, 4121.44, 4121.50, 4121.61, 4121.65, 4121.66, 4123.01, 4123.026, 4123.25, 4123.292, 4123.34, 4123.342, 4123.35, 4123.351, 4123.352, 4123.353, 4123.38, 4123.411, 4123.412, 4123.416, 4123.46, 4123.50, 4123.51, 4123.511, 4123.512, 4123.54, 4123.63, 4123.65, 4123.74, 4123.75, 4123.79, 4123.80, 4123.81, 4123.82, 4123.83, 4123.84, 4123.85, 4123.93, 4123.931, 4125.05, 5119.332, 9.315

OCCUPATIONAL LICENSE RENEWAL (BRINKMAN T) To make occupational licenses subject to annual renewal become biennial licenses and to permit a licensee to take continuing education courses online.

Current Status:
4/19/2016 - House Commerce and Labor, (Fourth Hearing)
ORC Sections:
1321.05, 1321.08, 1321.20, 1321.52, 1321.532, 1321.536, 1322.041, 1322.052, 3773.36, 3773.42, 3773.43, 4707.071, 4707.10, 4725.16, 4725.17, 4725.171, 4725.34, 4725.51, 4727.03, 4727.19, 4728.03, 4729.11, 4729.12, 4729.15, 4729.52, 4729.54, 4735.06, 4735.09, 4735.14, 4735.141, 4735.27, 4735.29, 4736.11, 4736.12, 4740.04, 4740.05, 4740.06, 4747.05, 4747.06, 4749.03, 4749.031, 4751.06, 4751.07, 4759.06, 4759.08, 4763.05, 4763.06, 4763.07, 4763.08, 4763.09, 4779.19, 4779.23

DRONE OPERATION-RETAIL (BARNES, JR. J) To regulate the operation of drones near airports and to impose certain record-keeping requirements on retail sellers of drones.

Current Status:
12/1/2015 - House Transportation and Infrastructure, (First Hearing)
ORC Sections:
4561.50, 4561.51

CONDOMINIUM LIENS (ROGERS J) To provide that a portion of a condominium or planned community assessment is prior to other liens on condominium units and planned community lots and to provide that a condominium unit owners association lien is a continuing lien.

Current Status:
6/23/2015 - House Commerce and Labor, (First Hearing)
ORC Sections:
5311.18, 5312.12

COSMETOLOGY LICENSING (ROEGNER K, REECE A) To make changes to the Cosmetology Licensing Law.

Current Status:
4/12/2016 - BILL AMENDED, House Government Accountability and Oversight, (Fifth Hearing)
ORC Sections:
2925.01, 4713.01, 4713.02, 4713.03, 4713.06, 4713.07, 4713.071, 4713.08, 4713.081, 4713.082, 4713.09, 4713.10, 4713.13, 4713.14, 4713.141, 4713.16, 4713.17, 4713.20, 4713.21, 4713.22, 4713.24, 4713.25, 4713.26, 4713.28, 4713.30, 4713.31, 4713.34, 4713.35, 4713.36, 4713.37, 4713.39, 4713.41, 4713.42, 4713.44, 4713.45, 4713.48, 4713.55, 4713.56, 4713.57, 4713.58, 4713.59, 4713.60, 4713.61, 4713.62, 4713.63, 4713.64, 4713.641, 4713.66, 4713.69, 4713.99

SELLER-USE TAX COLLECTION (GROSSMAN C, SCHERER G) To prescribe new criteria for determining whether sellers are presumed to have substantial nexus with Ohio and therefore required to register to collect use tax, to allow sellers presumed to have substantial nexus to rebut that presumption, and to require a person, before the person enters into a sale of goods contract with the state, to register, along with the person's affiliates, to collect use tax.

Current Status:
6/2/2015 - Referred to Committee House Ways and Means
ORC Sections:
5741.01, 5741.17

REDEVELOPMENT DISTRICTS (SCHURING K) To authorize municipal corporations to create downtown redevelopment districts and innovation districts for the purposes of promoting the rehabilitation of historic buildings, creating jobs, encouraging economic development in commercial and mixed-use areas, and supporting grants and loans to technology-oriented and other businesses.

Current Status:
4/20/2016 - Consideration of Senate Amendments; House Does Concur, Vote 96-0
ORC Sections:
133.04, 133.06, 1710.14, 1724.12, 3317.021, 5501.311, 5709.12, 5709.45, 5709.46, 5709.47, 5709.82, 5709.83, 5709.831, 5709.832, 5709.85, 5709.91, 5709.911, 5709.913, 5715.27, 709.024, 709.19

INCOME TAX-SOUND RECORDING (SMITH K, LATOURETTE S) To authorize a refundable income tax credit for individual investors in a sound recording production company equal to a portion of the company's costs for a recording production or recording infrastructure project in Ohio.

Current Status:
2/16/2016 - House Ways and Means, (Second Hearing)
ORC Sections:
122.851, 5747.67, 5747.98

CORPORATION DISSOLUTION-AFFIDAVIT (DEVER J, RYAN S) To require, under certain circumstances, a certificate of dissolution of a corporation to be accompanied by an affidavit stating that the corporation is not required to pay or has not been assessed any taxes at the time of dissolution.

Current Status:
12/1/2015 - House Commerce and Labor, (Fourth Hearing)
ORC Sections:

EMPLOYMENT SERVICES-TAX EXEMPT (YOUNG R, ROMANCHUK M) To exempt employment services and employment placement services from sales and use tax.

Current Status:
4/27/2016 - House Economic and Workforce Development, (Eighth Hearing)
ORC Sections:
5739.01, 5739.02, 5741.01

PRIVATE EMPLOYEES-REQUIRED DUES (BRINKMAN T) To prohibit any requirement that employees of private employers join or pay dues to any employee organization and to establish civil and criminal penalties against employers who violate that prohibition.

Current Status:
12/1/2015 - House Commerce and Labor, (First Hearing)
ORC Sections:
4119.01, 4119.02, 4119.04, 4119.05, 4119.06, 4119.07, 4119.08, 4119.99

AUTOMOTIVE TECHNICIANS-TRAINING (ANTANI N, REINEKE W) Regarding employers of automotive technicians and motor vehicle technicians participating in the Incumbent Workforce Training Voucher Program.

Current Status:
4/26/2016 - House Rules and Reference, (First Hearing)

TAX-EXEMPT-DIGITAL ADVERTISING (SMITH R) To specifically exempt digital advertising services from sales and use tax.

Current Status:
4/12/2016 - House Ways and Means, (First Hearing)
ORC Sections:

RENEWABLE-EFFICIENCY ENERGY REQUIREMENTS (STRAHORN F) To unfreeze the requirements for renewable energy, energy efficiency, and peak demand reduction, to permit changes in and Public Utilities Commission action on electric distribution utility portfolio plans in 2016, to revise the setback requirement for economically significant wind farms, and to repeal the setback requirement for wind farms of fifty megawatts or more.

Current Status:
2/23/2016 - Referred to Committee House Public Utilities
ORC Sections:
4906.20, 4906.201, 4928.64, 4928.66

UTILITY SERVICE TAX-LEVY (AMSTUTZ R) To require voter approval before a county may levy a new utilities services tax, to allow small businesses to count employees of related or affiliated entities towards satisfying the employment criteria of the business investment tax credit, to permit a bad debt refund for cigarette and tobacco product excise taxes paid when a purchaser fails to pay a dealer for the cigarettes or tobacco products and the unpaid amount is charged off as uncollectible by the dealer, and to allow vendors to receive a refund of sales taxes remitted for bad debts on private label credit cards when the debt is charged off as uncollectible by the credit card lender.

Current Status:
4/26/2016 - House Ways and Means, (First Hearing)
ORC Sections:
122.86, 324.02, 324.021, 5703.70, 5739.121, 5743.05, 5743.06, 5743.53

MOTION PICTURE-TAX CREDIT (SCHURING K) To authorize motion picture companies to transfer the authority to claim refundable motion picture tax credits to other persons, to adjust how the credit is calculated, to increase the total amount of credits that may be awarded per year, to remove the limit on the maximum credit amount that may be awarded to a motion picture, and to create a job training program for resident film crew members.

Current Status:
4/26/2016 - House Finance, (First Hearing)
ORC Sections:

STATE AGENCY-ISRAEL DISINVESTMENT (SCHURING K) To prohibit a state agency from contracting with a company that is boycotting Israel or disinvesting from Israel.

Current Status:
4/26/2016 - House Government Accountability and Oversight, (Second Hearing)
ORC Sections:

MINE FUNDS (CERA J) To credit a portion of the money derived from the Kilowatt-Hour Tax Receipts Fund to the Abandoned Mine Reclamation Fund, the Acid Mine Drainage Abatement and Treatment Fund, and the Mine Safety Fund and to make other changes to those funds.

Current Status:
4/13/2016 - Referred to Committee House Ways and Means
ORC Sections:
1513.37, 1561.24, 5727.81, 5727.84

EMPLOYEE SELECTION-INFORMATION (DEVER J) To regulate the collection, use, and retention of certain information obtained from an applicant during the employee selection process.

Current Status:
4/20/2016 - Introduced
ORC Sections:
4175.01, 4175.02, 4175.03, 4175.04, 4175.05

REAL ESTATE BROKERS (SMITH R) Relating to real estate brokers and salespersons.

Current Status:
4/25/2016 - Introduced
ORC Sections:
4735.01, 4735.06, 4735.07, 4735.081, 4735.09, 4735.091, 4735.10, 4735.141, 4735.18, 4735.23, 4735.24, 4735.51, 4735.65

TAX EXEMPT MUNICIPAL BONDS (SPRAGUE R) To urge the President and the Congress of the United States to preserve the tax-exempt status of municipal bonds.

Current Status:
4/20/2016 - REPORTED OUT, Senate Ways and Means, (Second Hearing)

STEELWORKER PENSION SUPPORT (RAMOS D, SLESNICK S) To declare the State of Ohio's support of its steelworkers in urging the President and the Congress of the United States to ensure that the Pension Benefit Guaranty Corporation is fully funded and properly administered to pay pension benefits to retired steelworkers and their spouses.

Current Status:
5/5/2015 - Referred to Committee House Commerce and Labor

ANTI-MONOPOLY-CONSTITUTIONAL AMENDMENTS (SMITH R) Proposing to amend Sections 1a, 1b, and 1e of Article II of the Constitution of the State of Ohio to prohibit an initiated constitutional amendment that would grant a monopoly or a special economic interest, privilege, benefit, right, or license to any person or entity and to modify the procedure to propose a law or a constitutional amendment by initiative petition.

Current Status:
7/1/2015 - Filed with Secretary of State

DIVEST-TERRORISM SPONSORED COMPANIES (JOHNSON T) To prohibit state agencies and the state's public retirement systems from contracting with and investing in companies with certain business operations in countries designated as state sponsors of terrorism and to require state agencies and public retirement systems to divest investments from such companies.

Current Status:
4/26/2016 - House Government Accountability and Oversight, (Second Hearing)

GEOGRAPHIC EMPLOYMENT REQUIREMENTS (UECKER J) To enact section 9.49 and to repeal sections 153.013 and 5525.26 of the Revised Code to prohibit a public authority from requiring a contractor to employ a certain percentage of individuals from the geographic area of the public authority for the construction or professional design of a public improvement.

Current Status:
4/12/2016 - House State Government, (Fifth Hearing)
ORC Sections:
153.013, 5525.26, 9.49

COMMERCIAL ROOFING LICENSE (PATTON T) To amend sections 715.27, 3781.102, 4740.01, 4740.02, 4740.04, and 4740.12 of the Revised Code to require commercial roofing contractors to have a license.

Current Status:
4/27/2016 - Senate Transportation, Commerce and Labor, (First Hearing)
ORC Sections:
3781.102, 4740.01, 4740.02, 4740.04, 4740.12, 715.27

FUND SEWER-WATER CAPITAL IMPROVEMENTS (SCHIAVONI J) Proposing to enact Section 2t of Article VIII of the Constitution of the State of Ohio to permit the issuance of general obligation bonds to fund sewer and water capital improvements.

Current Status:
2/9/2016 - Senate Finance, (First Hearing)