As Reported by the House Finance and Appropriations Committee* 1
122nd General Assembly 4
Regular Session Sub. H. B. No. 697 5
1997-1998 6
REPRESENTATIVES JOHNSON-SYKES-THOMAS-WOMER BENJAMIN-LAWRENCE- 8
CORBIN-PRENTISS-STAPLETON-O'BRIEN-MOTTLEY-OPFER 9
11
A B I L L
To enact sections 131.45, 5739.029, and 5741.024 of 14
the Revised Code to levy an additional one per 15
cent sales and use tax, the proceeds of which 16
must be used one-half for schools and one-half to 17
provide property tax relief for homesteads, to 18
provide that the tax takes effect only after 20
being approved by the electors, to establish 22
required levels of appropriations from the 23
General Revenue Fund for primary and secondary 24
education each year, and to make an 26
appropriation. 27
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 29
Section 1. That sections 5739.029 and 5741.024 of the 33
Revised Code be enacted to read as follows:
Sec. 5739.029. (A) IF APPROVED BY THE ELECTORS PURSUANT 36
TO HOUSE BILL NO. 697 OF THE 122nd GENERAL ASSEMBLY, THERE IS 41
HEREBY LEVIED, BEGINNING JULY 1, 1998, AN EXCISE TAX OF ONE PER 42
CENT ON EACH RETAIL SALE MADE IN THIS STATE. ONE-HALF OF THE 43
PROCEEDS OF THE TAX SHALL BE CREDITED TO THE SCHOOL TRUST FUND, 45
WHICH IS HEREBY CREATED IN THE STATE TREASURY, AND SHALL BE USED 47
SOLELY FOR THE PURPOSES OF PAYING COSTS OF SCHOOL OPERATIONS,
EDUCATION TECHNOLOGY, SCHOOL FACILITIES, AND DEBT SERVICE FOR 49
SCHOOL FACILITIES. ONE-HALF OF THE PROCEEDS SHALL BE CREDITED TO 50
THE PROPERTY TAX RELIEF FUND, WHICH IS HEREBY CREATED IN THE 51
STATE TREASURY, AND SHALL BE USED SOLELY TO PROVIDE PROPERTY TAX 53
2
RELIEF FOR HOMESTEADS. THE TAX HEREBY LEVIED IS IN ADDITION TO 56
THE SALES TAX LEVIED BY SECTION 5739.02 OF THE REVISED CODE, AND 58
IS SUBJECT TO THE SAME EXEMPTIONS AND EXCEPTIONS, AND SHALL BE 60
IMPOSED AND COLLECTED PURSUANT TO THE SAME PROCEDURES, AS THAT
TAX.
(B) THE TAX COMMISSIONER, BY RULE, SHALL PRESCRIBE 63
SCHEDULES SHOWING THE AMOUNT OF TAX TO BE COLLECTED UNDER THIS 64
CHAPTER AND CHAPTER 5741. OF THE REVISED CODE AT EACH PRICE 67
LEVEL, AND THAT AMOUNT OF TAX SHALL BE COLLECTED NOTWITHSTANDING 68
SECTION 5739.025 OF THE REVISED CODE. SECTION 5739.21 OF THE 71
REVISED CODE DOES NOT APPLY TO THE TAX LEVIED BY THIS SECTION. 73
Sec. 5741.024. IF APPROVED BY THE ELECTORS PURSUANT TO 77
HOUSE BILL NO. 697 OF THE 122nd GENERAL ASSEMBLY, THERE IS HEREBY 81
LEVIED, BEGINNING JULY 1, 1998, AN EXCISE TAX OF ONE PER CENT ON 83
THE STORAGE, USE, OR OTHER CONSUMPTION IN THIS STATE OF TANGIBLE 84
PERSONAL PROPERTY OR THE BENEFIT REALIZED IN THIS STATE OF ANY 85
SERVICE PROVIDED. ONE-HALF OF THE PROCEEDS OF THE TAX SHALL BE 86
CREDITED TO THE SCHOOL TRUST FUND AND SHALL BE USED SOLELY FOR 87
THE PURPOSES OF PAYING COSTS OF SCHOOL OPERATIONS, EDUCATION 89
TECHNOLOGY, SCHOOL FACILITIES, AND DEBT SERVICE FOR SCHOOL 90
FACILITIES. ONE-HALF OF THE PROCEEDS SHALL BE CREDITED TO THE 91
PROPERTY TAX RELIEF FUND AND SHALL BE USED SOLELY TO PROVIDE 92
PROPERTY TAX RELIEF FOR HOMESTEADS. THE TAX HEREBY LEVIED IS IN
ADDITION TO THE USE TAX LEVIED BY SECTION 5741.02 OF THE REVISED 94
CODE, AND IS SUBJECT TO THE SAME EXEMPTIONS AND EXCEPTIONS, AND 96
SHALL BE IMPOSED AND COLLECTED PURSUANT TO THE SAME PROCEDURES, 97
AS THAT TAX. SECTION 5741.03 OF THE REVISED CODE DOES NOT APPLY 99
TO THE TAX LEVIED BY THIS SECTION. 100
Section 2. Section 1 of this act shall take effect only if 102
approved by a majority of the electors voting thereon, as 103
provided in Section 3 of this act, as permitted by Section 26 of 104
Article II, Ohio Constitution, because this act relates to 106
public schools. If Section 1 of this act is not submitted to the 107
electors at a special election on May 5, 1998, or if Section 1 of
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this act is not approved by a majority of the electors voting on 108
the section at that special election, Sections 1, 2, 3, 4, and 5 109
of this act expire.
Section 3. After this act is signed by the Governor, it 111
shall be filed with the Secretary of State not later than 113
February 19, 1998. The Secretary of State shall submit to the 114
electors of the entire state at a special election to be held on 115
May 5, 1998, as a single proposal, approval of the enactment of 116
sections 5739.029 and 5741.024 of the Revised Code as set forth 117
within the purview of Section 1 of this act. The Secretary of 118
State shall designate the proposal as the second issue submitted 120
to the electors of the entire state at that election. 121
Notwithstanding section 3519.21 of the Revised Code, the 123
title and ballot language for the proposal shall be substantially 124
as follows: 125
"EDUCATION LEGISLATION SUBJECT TO VOTER APPROVAL 128
(Proposed by the General Assembly of the State of Ohio) 130
Shall the provisions of House Bill 697 levying a statewide 132
one per cent sales and use tax, to be used one-half for school 133
operations, education technology, school facilities, and debt 134
service for school facilities, and one-half for property tax 135
relief for homesteads, be approved? 136
If approved, the tax shall take effect July 1, 1998. 138
A majority yes vote is necessary for passage. 140
142
Yes (To approve the tax) 143
144
No (To reject the tax) 145
" 146
The General Assembly by resolution shall designate a group 149
of members who voted for H.B. 697 to prepare arguments for the 150
proposal, and a group of members who voted against H.B. 697 to 151
prepare arguments against the proposal. The arguments shall not 152
exceed three hundred words each, and shall be filed with the 153
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Secretary of State not later than March 1, 1998. The ballot 154
language and the arguments shall be available for public 155
inspection in the Office of the Secretary of State. 156
The proposal, the ballot language, and the arguments shall 159
be published once a week for three consecutive weeks preceding
May 5, 1998, in at least one newspaper of general circulation in 161
each county of the state where a newspaper is published. 162
If a majority of the votes cast on the proposal is in the 164
affirmative, the proposal is approved and takes effect 165
immediately.
Section 4. All items in this section are hereby 167
appropriated as designated out of any moneys in the state 168
treasury to the credit of the General Revenue Fund. For all 169
appropriations made in this act, those in the first column are
for fiscal year 1998 and those in the second column are for 170
fiscal year 1999. The appropriations made in this act are in 171
addition to any other appropriations made for the 1997-1999 172
biennium.
CEB CONTROLLING BOARD 174
General Revenue Fund 176
GRF 911-405 Ballot Board $ 400,000 $ 0 179
TOTAL GRF General Revenue Fund $ 400,000 $ 0 182
TOTAL ALL BUDGET FUND GROUPS $ 400,000 $ 0 185
Ballot Board 188
The foregoing appropriation item 911-405, Ballot Board, 190
shall be used for the advertising costs associated with the 191
statewide special election required by this act. 192
Within the limits set forth in this act, the Director of 194
Budget and Management shall establish accounts indicating source 195
and amount of funds for each appropriation made in this act, and 196
shall determine the form and manner in which appropriation 197
accounts shall be maintained. Expenditures from appropriations 198
contained in this act shall be accounted for as though made in
Am. Sub. H.B. 215 of the 122nd General Assembly. 199
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The appropriations made in this act are subject to all 201
provisions of Am. Sub. H.B. 215 of the 122nd General Assembly 202
that are generally applicable to such appropriations. 203
Section 5. In accordance with section 1.471 of the Revised 205
Code and Ohio Constitution, Article II, Section 1d, Sections 2, 206
3, 4, and 5 of this act go into immediate effect. 207
Section 6. That section 131.45 of the Revised Code be 209
enacted to read as follows: 210
Sec. 131.45. (A) THE AMOUNT THE GENERAL ASSEMBLY 212
APPROPRIATES FROM THE GENERAL REVENUE FUND EACH YEAR PER PUPIL 214
FOR PRIMARY AND SECONDARY EDUCATIONAL PURPOSES SHALL BE NOT LESS 215
THAN THE AMOUNT IT APPROPRIATED PER PUPIL FOR THOSE PURPOSES FOR
THE BASE YEAR, ADJUSTED FOR CHANGES IN PRICES AS MEASURED BY THE 216
CONSUMER PRICE INDEX (ALL URBAN CONSUMERS, ALL ITEMS) PREPARED BY 217
THE BUREAU OF LABOR STATISTICS OF THE UNITED STATES DEPARTMENT OF 218
LABOR. THE BASE YEAR IS FISCAL YEAR 1999. 219
(B) APPROPRIATIONS OF THE PROCEEDS OF THE SALES AND USE 223
TAX LEVIED BY SECTIONS 5739.029 AND 5741.024 OF THE REVISED CODE 224
AND OF THE NET PROCEEDS OF ANY STATE LOTTERY UNDER SECTION 6 OF 227
ARTICLE XV OF THE OHIO CONSTITUTION SHALL BE IN ADDITION TO 230
APPROPRIATIONS MADE PURSUANT TO THIS SECTION. 231
(C) FOR THE PURPOSES OF THIS SECTION, APPROPRIATIONS FOR 234
PRIMARY AND SECONDARY EDUCATIONAL PURPOSES INCLUDES AMOUNTS 236
APPROPRIATED TO REIMBURSE SCHOOL DISTRICTS FOR PROPERTY TAX 237
REDUCTIONS REQUIRED BY LAW. 238