As Reported by the Senate Ways and Means Committee* 1
122nd General Assembly 4
Regular Session Am. Sub. H. B. No. 117 5
1997-1998 6
REPRESENTATIVES TERWILLEGER-BRADING-FOX-OPFER-OGG-VESPER- 8
BUCHY-HARRIS-METZGER-HAINES-HOUSEHOLDER-WESTON-PADGETT-GARCIA- 9
CAREY-REID-CORBIN-KREBS-MEAD-HOTTINGER-SULZER-KASPUTIS-SALERNO- 10
SENATORS B. JOHNSON-BLESSING-DRAKE 11
12
A B I L L
To amend sections 1711.081, 1711.15, 1711.16, 14
1711.17, 3769.08, and 5705.19 of the Revised Code 15
to remove the requirement that, in certain
counties in which there exists a county 16
agricultural society or an independent 17
agricultural society and in which the board of
county commissioners appropriates more than fifty 18
thousand dollars to be expended in one year for 19
certain expenses related to fairs, the question 20
of a tax levy be put on the ballot in the county 21
before the expenditure can be made; to authorize
the board of any county to put on the ballot the 22
question of a tax levy for purchasing,
maintaining, or improving real estate on which to 23
hold fairs; and to provide that such societies 24
are not required to make payments to the Ohio 25
Standardbred Development Fund from moneys paid by
harness horse permit holders. 26
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 28
Section 1. That sections 1711.081, 1711.15, 1711.16, 30
1711.17, 3769.08, and 5705.19 of the Revised Code be amended to 31
read as follows:
Sec. 1711.081. The positions of members of the board of 40
2
directors, officers, and employees of a county or independent 41
agricultural society are not public offices, and persons holding 42
such THOSE positions are eligible to hold any public office 44
except for the office of county commissioner. A member of the
county budget commission is eligible to be a member of the board 46
of directors of a county or independent agricultural society 47
unless a tax is levied in the county pursuant to section 1711.15 48
or 1711.17 of the Revised Code. 49
Sec. 1711.15. In any county in which there is a duly 58
organized county agricultural society, the board of county 59
commissioners may purchase or lease, for a term of not less than 60
twenty years, real estate on which to hold fairs under the 61
management and control of the county agricultural society, and 62
may erect thereon suitable buildings and otherwise improve it. 63
In counties in which there is a county agricultural society 65
which THAT has purchased, or leased, for a term of not less than 66
twenty years, real estate as a site on which to hold fairs or in 67
which the title to such THE site is vested in fee in the county, 68
the board may erect or repair buildings or otherwise improve such 69
THE site and pay the rental thereof, or contribute to or pay any 70
other form of indebtedness of the society, if the director of 71
agriculture has certified to the board that the county 72
agricultural society is complying with all laws and rules 73
governing the operation of county agricultural societies. The 74
board may appropriate from the general fund such an ANY amount as 76
THAT it deems CONSIDERS necessary for any of those purposes. If 77
the amount appropriated to be expended in the purchase of such 78
real estate or in the erection of buildings or other improvements 79
or payments of rent or other forms of indebtedness of the society 80
exceeds fifty thousand dollars in any one year, such expenditure 81
shall not be made unless the question of a levy of the tax 82
therefor is submitted to the qualified electors of the county at 83
a general election, a notice of which, specifying the amount to 84
be levied, has been given at least thirty days previous to such 85
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election. This notice shall be given either by publishing it in 86
one or more newspapers published and of general circulation in 87
the county, or by mailing or otherwise distributing it to each 88
elector in the county as far as is reasonably possible. The 89
board shall pass a resolution authorizing the submission of the 90
question to the electors and certify their action to the board of 91
elections of the county which shall prepare and furnish the 92
necessary ballots and other supplies. Such certification shall 93
be made to the board of elections not later than four p.m. of the 94
seventy-fifth day before the day of election. The form of the 95
ballots cast at such election shall be: 96
"Agricultural tax--Yes." 98
"Agricultural tax--No." 100
If the majority of the vote cast is in favor of such tax, 102
it may be levied and collected as other taxes. 103
The requirement that the question of a tax levy be 105
submitted to the electors shall not apply where the funds to be 106
expended have been received as reparation for damage to the 107
fairground caused by use thereof for military purposes, or as 108
insurance proceeds received in payment for property damaged or 109
destroyed by fire or any other cause. 110
Sec. 1711.16. When the control and management of a 119
fairground is in a county agricultural society, and the board of 120
county commissioners has appropriated an amount or levied a tax 121
for the aid of such THE society as provided in section 1711.15 of 123
the Revised Code, the society, with the consent of the board, may
contract for the erection or repair of buildings or otherwise 124
improve said site THE FAIRGROUND, to the extent that the payment 125
for said THE improvement is provided by said THE board. 126
When such THE appropriation is made by the board or when 128
such tax is collected by the county treasurer, the county auditor 129
shall place the proceeds in a special fund, designated the 131
"county agricultural society fund," indicating the purpose for 132
which it is available, and on. ON application of the treasurer 133
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of the society, said THE auditor shall issue his AN order for the 134
amount of such THE appropriation or tax to said THE treasurer of 135
the society, if the society has secured the certificate required 137
under section 1711.05 of the Revised Code, on said THE 138
treasurer's filing with said THE auditor a bond in double the 139
amount collected, with good and sufficient sureties approved by 140
said THE auditor, conditioned for the satisfactory paying over 142
and accounting of such THE funds for the purposes for which they 144
were provided. Said THE funds shall remain in the special fund 146
in which they are placed by said THE auditor until they are 147
applied or by the treasurer of the society and such THE bond is 148
given, or until they are expended by the board for the purposes 150
for which said THE fund was created. If such THE society ceases 151
to exist or releases said THE fund as not required for the 152
purposes for which the fund was created, the board may by 153
resolution transfer said THE fund to the general fund of the 154
county.
Sec. 1711.17. In any counties in which there is a duly 162
organized independent agricultural society, the respective boards 163
of county commissioners may purchase or lease jointly, for a term 164
of not less than twenty years, real estate on which to hold fairs 165
under the management and control of the society, and may erect 166
suitable buildings and otherwise improve the property, and pay 167
the rental thereof, or contribute to or pay any other form of 168
indebtedness of the society, if the director of agriculture has 169
certified to the board that the independent agricultural society 170
is complying with all laws and rules governing the operation of 171
county agricultural societies. The boards may appropriate from 172
their respective general funds such an amount as they consider 173
necessary for any of those purposes. If the total amount 174
appropriated from one or more boards of county commissioners for 175
the joint purchase of such real estate, for the erection of 176
buildings or other improvements, or for the payment of rent or 177
other forms of indebtedness of the society exceeds fifty thousand 178
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dollars in any one year, such expenditure shall not be made 179
unless the question of a levy of a tax for that purpose is 180
submitted to the qualified electors of the counties at a general 181
election, a notice of which, specifying the amount to be levied, 182
has been given at least thirty days previous to such election, in 183
one or more newspapers published and of general circulation in 184
the counties. The boards shall pass resolutions authorizing the 185
submission of the question to the electors and certify their 186
action to the boards of elections of the counties, which shall 187
prepare and furnish the necessary ballots and other supplies. 188
Such certification shall be made to the board of elections not 189
later than four p.m. of the seventy-fifth day before the day of 190
the election. The form of the ballots cast at such election 191
shall be as follows: "Shall the board of commissioners of 192
.......... County be authorized to levy a tax for the benefit of 193
the .......... independent agricultural society for the purpose 194
of ........ (here state the purpose of the tax), at a rate not 195
exceeding .......... mills for each one dollar of valuation, 196
which amounts to .......... dollars for each one hundred dollars 197
of valuation, for .......... (here state the number of years the 198
tax will be levied)? 199
______________________________________ 201
For the tax levy 202
______________________________________ 203
Against the tax levy 204
______________________________________ " 205
If the majority of the votes cast is in favor of such tax 207
in each county, it may be levied and collected as other taxes. 208
Sec. 3769.08. (A) Any person holding a permit to conduct 217
a horse-racing meeting may provide a place in the race meeting 218
grounds or enclosure at which the permit holder may conduct and 219
supervise the pari-mutuel system of wagering by patrons of legal 220
age on the live racing programs and simulcast racing programs 222
conducted by such permit holder.
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Such pari-mutuel method of wagering upon the live racing 224
programs and simulcast racing programs held at or conducted 226
within such race track, and at the time of such horse-racing 227
meeting, or at other times authorized by the state racing 228
commission, shall not be unlawful. No other place, except that 229
provided and designated by the permit holder and except as
provided in section 3769.26 of the Revised Code, nor any other 231
method or system of betting or wagering, except the pari-mutuel 232
system, shall be used or permitted by the permit holder; nor, 233
except as provided in section 3769.089 or 3769.26 of the Revised 234
Code, shall the pari-mutuel system of wagering be conducted by 235
the permit holder on any races except the races at the race 236
track, grounds, or enclosure for which the person holds a permit. 237
Each permit holder may retain as commission an amount not to 238
exceed eighteen per cent of the total of all moneys wagered. 239
The pari-mutuel wagering authorized by this section is 241
subject to sections 3769.25 to 3769.27 of the Revised Code. 242
(B) At the close of each racing day, each permit holder 244
authorized to conduct thoroughbred racing, out of the amount 245
retained on that day by the permit holder, shall pay by check, 246
draft, or money order to the tax commissioner, as a tax, a sum 247
equal to the following percentages of the total of all moneys 248
wagered on live racing programs on that day and shall separately 249
compute and pay by check, draft, or money order to the tax 250
commissioner, as a tax, a sum equal to the following percentages 251
of the total of all money wagered on simulcast racing programs on 252
that day:
(1) One per cent of the first two hundred thousand dollars 254
wagered, or any part thereof; 255
(2) Two per cent of the next one hundred thousand dollars 257
wagered, or any part thereof; 258
(3) Three per cent of the next one hundred thousand 260
dollars wagered, or any part thereof; 261
(4) Four per cent of all sums over four hundred thousand 263
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dollars wagered. 264
Except as otherwise provided in section 3769.089 of the 266
Revised Code, each permit holder authorized to conduct 267
thoroughbred racing shall use for purse money a sum equal to 268
fifty per cent of the pari-mutuel revenues retained by the permit 269
holder as a commission after payment of the state tax. This 270
fifty per cent payment shall be in addition to the purse 271
distribution from breakage specified in this section. 272
Subject to division (M) of this section, from the moneys 275
paid to the tax commissioner by thoroughbred-racing permit 277
holders, one-half of one per cent of the total of all moneys so 278
wagered on a racing day shall be paid into the Ohio fairs fund 279
created by section 3769.082 of the Revised Code, one and 280
one-eighth per cent of the total of all moneys so wagered on a 283
racing day shall be paid into the Ohio thoroughbred race fund 284
created by section 3769.083 of the Revised Code, and one-quarter
of one per cent of the total of all moneys wagered on a racing 286
day by each permit holder shall be paid into the state racing 287
commission operating fund created by section 3769.03 of the 288
Revised Code. The required payment to the state racing 289
commission operating fund does not apply to county and
independent fairs and agricultural societies. The remaining 291
moneys may be retained by the permit holder, except as provided 292
in this section with respect to the odd cents redistribution. 293
Amounts paid into the PASSPORT fund shall be used solely for the 295
support of the PASSPORT program as determined in appropriations
made by the general assembly. If the PASSPORT program is 297
abolished, the amount that would have been paid to the PASSPORT 299
fund under this chapter shall be paid to the general revenue fund 301
of the state. As used in this chapter, "PASSPORT program" means 303
the PASSPORT program created under section 173.40 of the Revised 304
Code.
During calendar year 1994, the total amount paid to the 306
Ohio thoroughbred race fund under this section and section 307
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3769.087 of the Revised Code shall not exceed by more than six 308
per cent the total amount paid to this fund under this section 309
and that section during calendar year 1990. During each calendar
year after calendar year 1994, the total amount paid to this fund 310
under this section and that section shall not exceed by more than 311
six per cent the total amount paid to this fund under this 312
section and that section during the immediately preceding 314
calendar year.
Each year, the total amount calculated for payment into the 316
Ohio fairs fund under this division, division (C) of this 318
section, and section 3769.087 of the Revised Code shall be an 319
amount calculated using the percentages specified in this 320
division, division (C) of this section, and section 3769.087 of
the Revised Code. Until January 1, 1996, the total amount 321
actually paid into the Ohio fairs fund under this division, 322
division (C) of this section, and section 3769.087 of the Revised 323
Code during each calendar year shall not exceed the total amount 324
that was actually paid into that fund under this division,
division (C) of this section, and section 3769.087 of the Revised 325
Code during calendar year 1990, plus five hundred thousand 326
dollars. Beginning on January 1, 1996, and continuing through 327
December 31, 1998, the total amount actually paid into the Ohio 328
fairs fund during each calendar year under this division,
division (C) of this section, and section 3769.087 of the Revised 329
Code shall not exceed by more than five per cent an amount equal 330
to the total amount actually paid into the Ohio fairs fund during 331
the immediately preceding calendar year. 332
A permit holder may contract with a thoroughbred horsemen's 334
organization for the organization to act as a representative of 335
all thoroughbred owners and trainers participating in a 336
horse-racing meeting conducted by the permit holder. A 337
"thoroughbred horsemen's organization" is any corporation or 338
association which THAT represents, through membership or 339
otherwise, more than one-half of the aggregate of all 341
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thoroughbred owners and trainers who were licensed and actively 342
participated in racing within this state during the preceding 343
calendar year. Except as otherwise provided in this paragraph, 344
any moneys received by a thoroughbred horsemen's organization 345
shall be used exclusively for the benefit of thoroughbred owners 346
and trainers racing in this state through the administrative 347
purposes of the organization, benevolent activities on behalf of 348
the horsemen, promotion of the horsemen's rights and interests, 349
and promotion of equine research. A thoroughbred horsemen's 350
organization may expend not more than an aggregate of five per 351
cent of its annual gross receipts, or a larger amount as approved 352
by the organization, for dues, assessments, and other payments to 353
all other local, national, or international organizations having 354
as their primary purposes the promotion of thoroughbred horse 355
racing, thoroughbred horsemen's rights, and equine research. 356
(C) Except as otherwise provided in division (B) of this 358
section, at the close of each racing day, each permit holder 359
authorized to conduct harness or quarter horse racing, out of the 360
amount retained that day by the permit holder, shall pay by 361
check, draft, or money order, to the tax commissioner, as a tax, 362
a sum equal to the following percentages of the total of all 363
moneys wagered on live racing programs and shall separately 364
compute and pay by check, draft, or money order to the tax 365
commissioner, as a tax, a sum equal to the following percentages 366
of the total of all money wagered on simulcast racing programs on
that day: 367
(1) One per cent of the first two hundred thousand dollars 369
wagered, or any part thereof; 370
(2) Two per cent of the next one hundred thousand dollars 372
wagered, or any part thereof; 373
(3) Three per cent of the next one hundred thousand 375
dollars wagered, or any part thereof; 376
(4) Four per cent of all sums over four hundred thousand 378
dollars wagered. 379
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Except as otherwise provided in division (B) and subject to 381
division (M) of this section, from the moneys paid to the tax 383
commissioner by permit holders authorized to conduct harness or 384
quarter horse racing, one-half of one per cent of all moneys
wagered on that racing day shall be paid into the Ohio fairs 385
fund; from the moneys paid to the tax commissioner by permit 388
holders authorized to conduct harness racing, five-eighths of one
per cent of all moneys wagered on that racing day shall be paid 389
into the Ohio standardbred development fund; and from the moneys 391
paid to the tax commissioner by permit holders authorized to
conduct quarter horse racing, five-eighths of one per cent of all 392
moneys wagered on that racing day shall be paid into the Ohio 393
quarter horse development fund. 394
(D) In addition, subject to division (M) of this section, 397
beginning on January 1, 1996, from the money paid to the tax 398
commissioner as a tax under this section and section 3769.087 of 399
the Revised Code by harness horse permit holders, one-half of one 400
per cent of the amount wagered on a racing day shall be paid into 401
the Ohio standardbred development fund. BEGINNING JANUARY 1,
1998, THE PAYMENT TO THE OHIO STANDARDBRED DEVELOPMENT FUND 402
REQUIRED UNDER DIVISION (D) OF THIS SECTION DOES NOT APPLY TO 403
COUNTY AGRICULTURAL SOCIETIES OR INDEPENDENT AGRICULTURAL 404
SOCIETIES.
During calendar year 1994, the total amount paid to the 406
Ohio standardbred development fund under this division, division 407
(C) of this section, and section 3769.087 of the Revised Code and 409
the total amount paid to the Ohio quarter horse development fund
under this division and that section shall not exceed by more 410
than six per cent the total amount paid to each of these funds 411
under this division and that section during calendar year 1990. 412
During each calendar year after calendar year 1994, the total 413
amount paid to each of these funds shall not exceed by more than 414
six per cent the total amount paid into the fund under this
division, division (C) of this section, and section 3769.087 of 416
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the Revised Code in the immediately preceding calendar year. 417
(E) Subject to division (M) of this section, from the 420
money paid as a tax under this chapter by harness and quarter 421
horse permit holders, one-quarter of one per cent of the total of 422
all moneys wagered on a racing day by each permit holder shall be 423
paid into the state racing commission operating fund created by 424
section 3769.03 of the Revised Code. This division does not 425
apply to county and independent fairs and agricultural societies. 426
(F) Except as otherwise provided in section 3769.089 of 429
the Revised Code, each permit holder authorized to conduct 430
harness racing shall pat to the harness horsemen's purse pool a 431
sum equal to fifty per cent of the pari-mutuel revenues retained 432
by the permit holder as a commission after payment of the state 433
tax. This fifty per cent payment is to be in addition to the 434
purse distribution from breakage specified in this section. 435
(G) In addition, each permit holder authorized to conduct 437
harness racing shall be allowed to retain the odd cents of all 438
redistribution to be made on all mutuel contributions exceeding a 439
sum equal to the next lowest multiple of ten. 440
Forty per cent of that portion of that total sum of such 442
odd cents shall be used by the permit holder for purse money for 443
Ohio sired, bred, and owned colts, for purse money for Ohio bred 444
horses, and for increased purse money for horse races. Upon the 445
formation of the corporation described in section 3769.21 of the 446
Revised Code to establish a harness horsemen's health and 447
retirement fund, twenty-five per cent of that portion of that 448
total sum of odd cents shall be paid at the close of each racing 449
day by the permit holder to such corporation to establish and 450
fund the health and retirement fund. Until such corporation is 451
formed, such twenty-five per cent shall be paid at the close of 452
each racing day by the permit holder to the tax commissioner or 453
the tax commissioner's agent in the county seat of the county in 455
which the permit holder operates race meetings. The remaining 456
thirty-five per cent of that portion of that total sum of odd 457
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cents shall be retained by the permit holder. 458
(H) In addition, each permit holder authorized to conduct 460
thoroughbred racing shall be allowed to retain the odd cents of 461
all redistribution to be made on all mutuel contributions 462
exceeding a sum equal to the next lowest multiple of ten. Twenty 464
per cent of that portion of that total sum of such odd cents 465
shall be used by the permit holder for increased purse money for 466
horse races. Upon the formation of the corporation described in 467
section 3769.21 of the Revised Code to establish a thoroughbred 468
horsemen's health and retirement fund, forty-five per cent of 470
that portion of that total sum of odd cents shall be paid at the 471
close of each racing day by the permit holder to such corporation 472
to establish and fund the health and retirement fund. Until such 473
corporation is formed, such forty-five per cent shall be paid by 475
the permit holder to the tax commissioner or the tax 476
commissioner's agent in the county seat of the county in which 478
the permit holder operates race meetings, at the close of each 479
racing day. The remaining thirty-five per cent of that portion 480
of that total sum of odd cents shall be retained by the permit 481
holder.
(I) In addition, each permit holder authorized to conduct 483
quarter horse racing shall be allowed to retain the odd cents of 484
all redistribution to be made on all mutuel contributions 485
exceeding a sum equal to the next lowest multiple of ten, subject 486
to a tax of twenty-five per cent on that portion of the total sum 487
of such odd cents which THAT is in excess of two thousand dollars 489
during a calendar year, which tax shall be paid at the close of 490
each racing day by the permit holder to the tax commissioner or 491
the tax commissioner's agent in the county seat of the county 493
within which the permit holder operates race meetings. Forty per 494
cent of that portion of that total sum of such odd cents shall be 495
used by the permit holder for increased purse money for horse 496
races. The remaining thirty-five per cent of that portion of 497
that total sum of odd cents shall be retained by the permit 498
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holder.
(J) To encourage the improvement of racing facilities for 500
the benefit of the public, breeders, and horse owners, and to 501
increase the revenue to the state from the increase in 502
pari-mutuel wagering resulting from such improvements, the taxes 503
paid by a permit holder to the state as provided for in this 504
chapter shall be reduced by three-fourths of one per cent of the 506
total amount wagered for those permit holders who make capital 507
improvements to existing race tracks or construct new race 508
tracks. The percentage of the reduction that may be taken each 509
racing day shall equal seventy-five per cent of the tax levied 510
under divisions (B) and (C) of this section and section 3769.087, 511
and division (F)(2) of section 3769.26 of the Revised Code, as 512
applicable, divided by the calculated amount each fund should 514
receive under divisions (B) and (C) of this section and section 515
3769.087, and division (F)(2) of section 3769.26 of the Revised 516
Code and the reduction provided for in this division. If the 518
resulting percentage is less than one, that percentage shall be 519
multiplied by the amount of the reduction provided for in this 520
division. Otherwise, the permit holder shall receive the full
reduction provided for in this division. The amount of the 521
allowable reduction not received shall be carried forward and 522
applied against future tax liability. After any reductions 523
expire, any reduction carried forward shall be treated as a 524
reduction as provided for in this division. If more than one 525
permit holder is authorized to conduct racing at the facility 527
which THAT is being built or improved, the cost of the capital 529
improvement shall be allocated between or among all the permit 530
holders in the ratio that the permit holders' number of racing 531
days bears to the total number of racing days conducted at the 532
facility. Such reduction shall start from the day racing is 533
first conducted following the date actual construction of the new 534
race track or each capital improvement is completed and the 535
construction cost has been certified by the racing commission, 536
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unless otherwise provided in this section. Such reduction shall 537
continue for a period of twenty-five years for new race tracks 538
and for fifteen years for new capital improvements if the 539
construction of the improvement or new race track commenced prior 540
to March 29, 1988, and for a period of ten years for new race 541
tracks or new capital improvements if the construction of the
improvement or new race track commenced on or after March 29, 542
1988, or until the total tax reduction reaches seventy per cent 543
of the cost of the new race track or new capital improvement, as 544
allocated to each permit holder, whichever occurs first. The tax 545
reduction granted for any application approved by the racing 546
commission after March 29, 1988, shall not commence nor shall the 548
ten-year period begin to run until all prior tax reductions with 549
respect to the same race track have ended. The total tax 550
reduction because of capital improvements shall not during any 551
one year exceed for all permit holders using any one track 552
three-fourths of one per cent of the total amount wagered,
regardless of the number of capital improvements made. Several 553
improvements to a race track may be consolidated in an 554
application if the commission approved the application prior to 555
March 29, 1988. No permit holder may receive a tax reduction for 557
a capital improvement approved by the racing commission on or 558
after March 29, 1988, at a race track until all tax reductions 560
have ended for all prior capital improvements approved by the 561
racing commission under this section or section 3769.20 of the 562
Revised Code at that race track. If there are two or more permit 563
holders operating meetings at the same track, they may
consolidate their applications. The racing commission shall 564
notify the tax commissioner when the diminution of tax begins and 565
when it ends. Each fiscal year the commission shall submit a 566
report to the tax commissioner, the office of budget and 567
management, and the legislative budget office of the legislative 568
service commission. The report shall identify each capital 569
improvement project undertaken under this division and in 570
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progress at each race track, indicate the total cost of each such 571
project, state the tax reduction that resulted from each such 572
project during the immediately preceding fiscal year, estimate 573
the tax reduction that will result from each such project during 574
the current fiscal year, state the total tax reduction that 575
resulted from all such projects at all race tracks during the 576
immediately preceding fiscal year, and estimate the total tax 577
reduction that will result from all such projects at all race 578
tracks during the current fiscal year. 579
In order to qualify for the reduction in tax, a permit 581
holder shall apply to the racing commission in such form as the 582
commission may require and shall provide full details of the new 583
racing track or capital improvement, including a schedule for its 584
construction and completion, and set forth the costs and expenses 585
incurred in connection therewith. The commission shall not 586
approve an application unless the permit holder shows that a 587
contract for the new race track or capital improvement has been 588
let under an unrestricted competitive bidding procedure, unless 589
the contract is exempted by the controlling board because of its 590
unusual nature. In determining whether to approve an 591
application, the commission shall consider whether the new track 592
or capital improvement will promote the safety, convenience, and 593
comfort of the racing public and horse owners and generally tend 594
towards the improvement of racing in this state. 595
If a new track or capital improvement is approved by the 597
commission and construction has started, the tax adjustment may 598
be authorized by the commission upon presentation of copies of 599
paid bills in excess of one hundred thousand dollars or ten per 600
cent of the approved cost, whichever is greater. After the 601
initial authorization, the permit holder shall present copies of 602
paid bills. If the permit holder is in substantial compliance 603
with the schedule for construction and completion of the track or 604
capital improvement, the commission may authorize the 605
continuation of the tax adjustment upon the presentation of such 606
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additional paid bills. The total amount of the tax adjustment 607
authorized shall not exceed seventy per cent of the approved cost 608
of the new track or capital improvement. The commission may 609
terminate any tax adjustment immediately if a permit holder fails 610
to complete the track or capital improvement, or to substantially 611
comply with the schedule for construction and completion of the 612
track or capital improvement. If a permit holder fails to 613
complete a new track or capital improvement, the commission shall 614
order the permit holder to repay to the state the total amount of 615
tax reduced. The normal tax paid by the permit holder shall be 616
increased by three-fourths of one per cent of the total amount 617
wagered until the total amount of the additional tax collected 618
equals the total amount of tax reduced. 619
As used in this section, "capital improvement" means an 621
addition, replacement, or remodeling of a structural unit of a 622
race track facility costing at least one hundred thousand 623
dollars, including, but not limited to, the construction of barns 624
used exclusively for such race track facility, backstretch 625
facilities for horsemen, paddock facilities, new pari-mutuel and 626
totalizator equipment and appurtenances thereto purchased by the 627
track, new access roads, new parking areas, the complete 628
reconstruction, reshaping, and leveling of the race track and 629
appurtenances, the installation of permanent new heating or air 630
conditioning, and installations of a permanent nature forming a 631
part of the track structure. "Capital improvement" does not 632
include the cost of replacement of equipment that is not 633
permanently installed, ordinary repairs, painting, and 634
maintenance required to keep a race track facility in ordinary 635
operating condition. "New race track" or "new racing track" 636
includes the reconstruction of a race track damaged by fire or 637
other cause which THAT has been declared by the racing 638
commission, as a result of the damage, to be an inadequate 640
facility for the safe operation of horse racing. 641
The commission shall not approve an application for a tax 643
17
reduction under this section if it has reasonable cause to 644
believe that the actions or negligence of the permit holder 645
substantially contributed to the damage suffered by the track due 646
to fire or other cause. The commission shall obtain any data or 647
information available from a fire marshal, law enforcement 648
official, or insurance company concerning any fire or other 649
damage suffered by a track, prior to approving an application for 650
a tax reduction. 651
The cost and expenses to which a tax reduction applies 653
shall be determined by generally accepted accounting principles 654
and verified by an audit of the permit holder's records upon 655
completion of the project by the commission, or by an independent 656
certified public accountant selected by the permit holder and 657
approved by the commission. 658
The tax reductions for capital improvements and new tracks 660
provided for in this division apply only to tax reductions 661
approved by the state racing commission prior to the effective 662
date of this amendment.
(K) No other license or excise tax or fee, except as 664
provided in sections 3769.01 to 3769.14 of the Revised Code, 665
shall be assessed or collected from such licensee by any county, 666
township, district, municipal corporation, or other body having 667
power to assess or collect a tax or fee. That portion of the tax 668
paid under this section by permit holders for racing conducted at 669
and during the course of an agricultural exposition or fair, and 671
that portion of the tax that would have been paid by eligible 672
permit holders into the PASSPORT fund as a result of racing 673
conducted at and during the course of an agricultural exposition
or fair, shall be deposited into the state treasury to the credit 675
of the horse racing tax fund, which is hereby created for the use 676
of the agricultural societies of the several counties in which 677
the taxes originate. The state racing commission shall determine 678
eligible permit holders for purposes of the preceding sentence, 679
taking into account the breed of horse, the racing dates, the 680
18
geographic proximity to the fair, and the best interests of Ohio 681
racing. On the first day of any month on which there is money in 683
the fund, the director of budget and management shall provide for 684
payment to the treasurer of each agricultural society the amount 685
of the taxes collected under this section upon racing conducted 686
at and during the course of any exposition or fair conducted by 687
such society.
(L) From the tax paid under this section by harness track 689
permit holders, the tax commissioner shall pay into the Ohio 690
thoroughbred race fund a sum equal to a percentage of the amount 691
wagered upon which such tax is paid. The percentage shall be 692
determined by the tax commissioner and shall be rounded to the 693
nearest one-hundredth. The percentage shall be such that, when 694
multiplied by the amount wagered upon which tax was paid by the 695
harness track permit holders in the most recent year for which 696
final figures are available, it results in a sum that 697
substantially equals the same amount of tax paid by the tax 698
commissioner during that year into the Ohio fairs fund from taxes 699
paid by thoroughbred permit holders. This division does not 700
apply to county and independent fairs and agricultural societies. 701
(M) Twenty-five per cent of the taxes levied on 703
thoroughbred-racing permit holders, harness-racing permit 705
holders, and quarter horse racing permit holders under this 706
section, section 3769.087, and division (F)(2) of section 3769.26 707
of the Revised Code shall be paid to the PASSPORT fund. The tax 708
commissioner shall pay any money remaining after payment to the 709
PASSPORT fund and the reductions provided for in division (J) of 711
this section and in section 3769.20 of the Revised Code into the 712
Ohio fairs fund, Ohio thoroughbred race fund, Ohio standardbred 714
development fund, Ohio quarter horse fund, and state racing 715
commission operating fund as prescribed in this section and 716
section 3769.087 of the Revised Code; except that the state 717
racing commission operating fund shall not receive more than two 718
million five hundred thousand dollars in any calendar year. The 719
19
tax commissioner shall thereafter use and apply the balance of 721
the money paid as a tax by any permit holder to cover any
shortage in the accounts of such funds resulting from an 722
insufficient payment as a tax by any other permit holder. The 723
moneys received by the tax commissioner shall be deposited weekly 724
and paid by the tax commissioner into the funds to cover the 726
total aggregate amount due from all permit holders to the funds,
as calculated under this section and section 3769.087 of the 727
Revised Code, as applicable. If, after payment to the PASSPORT 728
fund, sufficient funds are not available from the tax deposited 729
by the tax commissioner to pay the required amount into the Ohio 730
fairs fund, Ohio standardbred development fund, Ohio thoroughbred 731
race fund, Ohio quarter horse fund, and the state racing 732
commission operating fund, the tax commissioner shall prorate on 734
a proportional basis the amount paid to each of the funds. Any
shortage to the funds as a result of a proration shall be applied 735
against future deposits for the same calendar year when funds are 736
available. After this application, the tax commissioner shall 738
pay any remaining money paid as a tax by all permit holders into 739
the PASSPORT fund. If the Ohio fairs fund does not receive two 741
million five hundred thousand dollars in calendar year 1997 or
1998, the tax commissioner shall pay into the Ohio fairs fund, on 742
a prorated basis, money that would have been paid into the Ohio 743
thoroughbred race fund, Ohio standardbred development fund, Ohio 745
quarter horse development fund, and state racing commission 746
operating fund and the portion that was retained by the tracks 747
the previous calendar year as a reduction provided for in 748
division (J) of this section and section 3769.20 of the Revised 750
Code until the previous year's deficiency is met. Each track 751
that has an existing reduction shall increase its reduction 752
credit balance by the amount determined by the tax commissioner 753
that is needed to meet its prorated portion of the Ohio fairs 754
fund deficiency. The credit balance increase shall be paid to 755
the tax commissioner as a tax. This division does not apply to
20
permit holders conducting racing at the course of an agricultural 759
exposition or fair as described in division (K) of this section. 760
Sec. 5705.19. This section does not apply to school 769
districts or county school financing districts. 770
The taxing authority of any subdivision at any time and in 772
any year, by vote of two-thirds of all the members of the taxing 773
authority, may declare by resolution and certify the resolution 774
to the board of elections not less than seventy-five days before 775
the election upon which it will be voted that the amount of taxes 776
that may be raised within the ten-mill limitation will be 777
insufficient to provide for the necessary requirements of the 778
subdivision and that it is necessary to levy a tax in excess of 779
that limitation for any of the following purposes: 780
(A) For current expenses of the subdivision, except that 782
the total levy for current expenses of a detention home district 783
or district organized under section 2151.65 of the Revised Code 784
shall not exceed two mills and that the total levy for current 785
expenses of a combined district organized under sections 2151.34 786
and 2151.65 of the Revised Code shall not exceed four mills; 787
(B) For the payment of debt charges on certain described 789
bonds, notes, or certificates of indebtedness of the subdivision 790
issued subsequent to January 1, 1925; 791
(C) For the debt charges on all bonds, notes, and 793
certificates of indebtedness issued and authorized to be issued 794
prior to January 1, 1925; 795
(D) For a public library of, or supported by, the 797
subdivision under whatever law organized or authorized to be 798
supported; 799
(E) For a municipal university, not to exceed two mills 801
over the limitation of one mill prescribed in section 3349.13 of 802
the Revised Code; 803
(F) For the construction or acquisition of any specific 805
permanent improvement or class of improvements that the taxing 806
authority of the subdivision may include in a single bond issue; 807
21
(G) For the general construction, reconstruction, 809
resurfacing, and repair of streets, roads, and bridges in 810
municipal corporations, counties, or townships; 811
(H) For recreational purposes; 813
(I) For the purpose of providing and maintaining fire 815
apparatus, appliances, buildings, or sites therefor, or sources 816
of water supply and materials therefor, or the establishment and 817
maintenance of lines of fire alarm telegraph, or the payment of 818
permanent, part-time, or volunteer fire fighters FIREFIGHTERS or 819
fire-fighting companies to operate the same, including the 821
payment of the firemen FIREFIGHTERS employer's contribution 822
required under section 742.34 of the Revised Code, or to purchase 824
ambulance equipment, or to provide ambulance, paramedic, or other 825
emergency medical services operated by a fire department or 826
fire-fighting company;
(J) For the purpose of providing and maintaining motor 828
vehicles, communications, and other equipment used directly in 829
the operation of a police department, or the payment of salaries 830
of permanent police personnel, including the payment of the 831
policemen POLICE employer's contribution required under section 832
742.33 of the Revised Code, or the payment of the costs incurred 834
by townships as a result of contracts made with other political 835
subdivisions in order to obtain police protection, or to provide 836
ambulance or emergency medical services operated by a police 837
department; 838
(K) For the maintenance and operation of a county home; 840
(L) For community mental retardation and developmental 842
disabilities programs and services pursuant to Chapter 5126. of 843
the Revised Code, except that the procedure for such levies shall 844
be as provided in section 5705.222 of the Revised Code; 845
(M) For regional planning; 847
(N) For a county's share of the cost of maintaining and 849
operating schools, district detention homes, forestry camps, or 850
other facilities, or any combination thereof established under 851
22
section 2151.34 or 2151.65 of the Revised Code or both of those 852
sections; 853
(O) For providing for flood defense, providing and 855
maintaining a flood wall or pumps, and other purposes to prevent 856
floods; 857
(P) For maintaining and operating sewage disposal plants 859
and facilities; 860
(Q) For the purpose of purchasing, acquiring, 862
constructing, enlarging, improving, equipping, repairing, 863
maintaining, or operating, or any combination of the foregoing, a 864
county transit system pursuant to sections 306.01 to 306.13 of 865
the Revised Code, or to make any payment to a board of county 866
commissioners operating a transit system or a county transit 867
board pursuant to section 306.06 of the Revised Code; 868
(R) For the subdivision's share of the cost of acquiring 870
or constructing any schools, forestry camps, detention homes, or 871
other facilities, or any combination thereof under section 872
2151.34 or 2151.65 of the Revised Code or both of those sections; 873
(S) For the prevention, control, and abatement of air 875
pollution; 876
(T) For maintaining and operating cemeteries; 878
(U) For providing ambulance service, emergency medical 880
service, or both; 881
(V) For providing for the collection and disposal of 883
garbage or refuse; 884
(W) For the payment of the policemen POLICE employer's 886
contribution or the firemen FIREFIGHTERS employer's contribution 887
required under sections 742.33 and 742.34 of the Revised Code; 889
(X) For the construction and maintenance of a drainage 891
improvement pursuant to section 6131.52 of the Revised Code; 892
(Y) For providing or maintaining senior citizens services 894
or facilities as authorized by section 307.694, 307.85, 505.70, 895
505.706, or division (EE) of section 717.01 of the Revised Code; 896
(Z) For the provision and maintenance of zoological park 898
23
services and facilities as authorized under section 307.76 of the 899
Revised Code; 900
(AA) For the maintenance and operation of a free public 902
museum of art, science, or history; 903
(BB) For the establishment and operation of a 9-1-1 905
system, as defined in section 4931.40 of the Revised Code; 906
(CC) For the purpose of acquiring, rehabilitating, or 908
developing rail property or rail service. As used in this 909
division, "rail property" and "rail service" have the same 910
meanings as in section 4981.01 of the Revised Code. This 911
division applies only to a county, township, or municipal 912
corporation. 913
(DD) For the purpose of acquiring property for, 915
constructing, operating, and maintaining community centers as 916
provided for in section 755.16 of the Revised Code; 917
(EE) For the creation and operation of an office or joint 919
office of economic development, for any economic development 920
purpose of the office, and to otherwise provide for the 921
establishment and operation of a program of economic development 922
pursuant to sections 307.07 and 307.64 of the Revised Code; 923
(FF) For the purpose of acquiring, establishing, 925
constructing, improving, equipping, maintaining, or operating, or 926
any combination of the foregoing, a township airport, landing 927
field, or other air navigation facility pursuant to section 928
505.15 of the Revised Code; 929
(GG) For the payment of costs incurred by a township as a 931
result of a contract made with a county pursuant to section 932
505.263 of the Revised Code in order to pay all or any part of 933
the cost of constructing, maintaining, repairing, or operating a 934
water supply improvement; 935
(HH) For a board of township trustees to acquire, other 937
than by appropriation, an ownership interest in land, water, or 938
wetlands, or to restore or maintain land, water, or wetlands in 939
which the board has such an interest, not for purposes of 940
24
recreation, but for the purposes of protecting and preserving the 941
natural, scenic, open, or wooded condition of the land, water, or 942
wetlands against modification or encroachment resulting from 943
occupation, development, or other use; 944
(II) For the support by a county of a crime victim 946
assistance program that is provided and maintained by a county 947
agency or a private, nonprofit corporation or association under 948
section 307.62 of the Revised Code; 949
(JJ) For any or all of the purposes set forth in division 951
(I) or (J) of this section. This division applies only to a 952
township. 953
(KK) For a countywide public safety communications system 955
under section 307.63 of the Revised Code. This division applies 956
only to counties. 957
(LL) For the support by a county of criminal justice 959
services under section 307.45 of the Revised Code; 960
(MM) For the purpose of maintaining and operating a jail 962
or other detention facility as defined in section 2921.01 of the 963
Revised Code; 964
(NN) FOR PURCHASING, MAINTAINING, OR IMPROVING, OR ANY 966
COMBINATION OF THE FOREGOING, REAL ESTATE ON WHICH TO HOLD 967
AGRICULTURAL FAIRS. THIS DIVISION APPLIES ONLY TO A COUNTY. 968
The resolution shall be confined to the purpose or purposes 970
described in one division of this section, for which the revenue 971
derived therefrom shall be applied. The existence in any other 972
division of this section of authority to levy a tax for any part 973
or all of the same purpose or purposes does not preclude the use 974
of such revenues for any part of the purpose or purposes of the 975
division under which the resolution is adopted. 976
The resolution shall specify the amount of the increase in 978
rate that it is necessary to levy, the purpose thereof, and the 979
number of years during which the increase in rate shall be in 980
effect, which may or may not include a levy upon the duplicate of 981
the current year. The number of years may be any number not 982
25
exceeding five, except as follows: 983
(1) When the additional rate is for the payment of debt 985
charges, the increased rate shall be for the life of the 986
indebtedness. 987
(2) When the additional rate is any of the following, the 989
increased rate shall be for a continuing period of time: 990
(a) For the current expenses for a detention home 992
district, a district organized under section 2151.65 of the 993
Revised Code, or a combined district organized under sections 994
2151.34 and 2151.65 of the Revised Code; 995
(b) For providing a county's share of the cost of 997
maintaining and operating schools, district detention homes, 998
forestry camps, or other facilities, or any combination thereof, 999
established under section 2151.34 or 2151.65 of the Revised Code 1,000
or under both of those sections. 1,001
(3) When the additional rate is for any of the following, 1,003
the increased rate may be for a continuing period of time: 1,004
(a) For the purposes set forth in division (I), (J), (U), 1,006
or (KK) of this section; 1,007
(b) For the maintenance and operation of a joint 1,009
recreation district; 1,010
(c) A levy imposed by a township for the purposes set 1,012
forth in division (G) of this section. 1,013
(4) When the increase is for the purpose set forth in 1,015
division (D) or (CC) of this section, the tax levy may be for any 1,016
specified number of years or for a continuing period of time, as 1,017
set forth in the resolution. 1,018
(5) When the additional rate is for the purpose described 1,020
in division (Z) of this section, the increased rate shall be for 1,021
any number of years not exceeding ten. 1,022
A levy for the purposes set forth in division (I), (J), or 1,024
(U) of this section, and a levy imposed by a township for the 1,025
purposes set forth in division (G) of this section, may be 1,026
reduced pursuant to section 5705.261 or 5705.31 of the Revised 1,027
26
Code. A levy for the purposes set forth in division (I), (J), or 1,028
(U) of this section, and a levy imposed by a township for the 1,029
purposes set forth in division (G) of this section, may also be 1,030
terminated or permanently reduced by the taxing authority if it 1,031
adopts a resolution stating that the continuance of the levy is 1,032
unnecessary and the levy shall be terminated or that the millage 1,033
is excessive and the levy shall be decreased by a designated 1,034
amount. 1,035
A resolution of a detention home district, a district 1,037
organized under section 2151.65 of the Revised Code, or a 1,038
combined district organized under both sections 2151.34 and 1,039
2151.65 of the Revised Code may include both current expenses and 1,040
other purposes, provided that the resolution shall apportion the 1,041
annual rate of levy between the current expenses and other 1,042
purpose or purposes. The apportionment need not be the same for 1,043
each year of the levy, but the respective portions of the rate 1,044
actually levied each year for the current expenses and the other 1,045
purpose or purposes shall be limited by the apportionment. 1,046
Whenever a board of county commissioners, acting either as 1,048
the taxing authority of its county or as the taxing authority of 1,049
a sewer district or subdistrict created under Chapter 6117. of 1,050
the Revised Code, by resolution declares it necessary to levy a 1,051
tax in excess of the ten-mill limitation for the purpose of 1,052
constructing, improving, or extending sewage disposal plants or 1,053
sewage systems, the tax may be in effect for any number of years 1,054
not exceeding twenty, and the proceeds thereof, notwithstanding 1,055
the general provisions of this section, may be used to pay debt 1,056
charges on any obligations issued and outstanding on behalf of 1,057
the subdivision for the purposes enumerated in this paragraph, 1,058
provided that any such obligations have been specifically 1,059
described in the resolution. 1,060
The resolution shall go into immediate effect upon its 1,062
passage, and no publication of the resolution is necessary other 1,063
than that provided for in the notice of election. 1,064
27
When the electors of a subdivision have approved a tax levy 1,066
under this section, the taxing authority of the subdivision may 1,067
anticipate a fraction of the proceeds of the levy and issue 1,068
anticipation notes in accordance with section 5705.191 or 1,069
5705.193 of the Revised Code. 1,070
Section 2. That existing sections 1711.081, 1711.15, 1,072
1711.16, 1711.17, 3769.08, and 5705.19 of the Revised Code are 1,075
hereby repealed.