As Passed by the House* 1
122nd General Assembly 4
Regular Session Am. 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
SAWYER-GARCIA-BRITTON-MEAD 10
12
A B I L L
To enact, subject to the approval of the people of 14
the State of Ohio, sections 5739.029 and 15
5741.024 of the Revised Code to levy an 16
additional one per cent sales and use tax, the 17
proceeds of which must be used one-half for 18
schools and one-half to provide property tax 19
relief for homesteads, and to enact section 20
131.45 of the Revised Code to establish required 21
levels of appropriations from the General Revenue 22
Fund for primary and secondary education each 24
year, and to make an appropriation. 26
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 28
Section 1. That sections 5739.029 and 5741.024 of the 32
Revised Code be enacted to read as follows:
Sec. 5739.029. (A) ONLY IF APPROVED BY THE ELECTORS 35
PURSUANT TO HOUSE BILL NO. 697 OF THE 122nd GENERAL ASSEMBLY, 40
THERE IS HEREBY LEVIED, BEGINNING JULY 1, 1998, AN EXCISE TAX OF 41
ONE PER CENT ON EACH RETAIL SALE MADE IN THIS STATE. ONE-HALF OF 42
THE PROCEEDS OF THE TAX SHALL BE CREDITED TO THE SCHOOL TRUST 44
FUND, WHICH IS HEREBY CREATED IN THE STATE TREASURY, AND SHALL BE 46
USED SOLELY FOR THE PURPOSES OF PAYING COSTS OF SCHOOL
OPERATIONS, EDUCATION TECHNOLOGY, SCHOOL FACILITIES, AND DEBT 48
SERVICE FOR SCHOOL FACILITIES. ONE-HALF OF THE PROCEEDS SHALL BE
CREDITED TO THE PROPERTY TAX RELIEF FUND, WHICH IS HEREBY CREATED 50
2
IN THE STATE TREASURY, AND SHALL BE USED SOLELY TO PROVIDE 51
PROPERTY TAX RELIEF FOR HOMESTEADS. THE PROPERTY TAX RELIEF 54
PROVIDED EACH HOMESTEAD SHALL BE IN ADDITION TO THE TEN PER CENT 55
REDUCTION AND THE TWO AND ONE-HALF PER CENT REDUCTION IN THE
TAXES CHARGED AGAINST THE HOMESTEAD, AS PROVIDED UNDER SECTION 57
319.302 AND DIVISION (B) OF SECTION 323.152 OF THE REVISED CODE. 58
THE TAX HEREBY LEVIED IS IN ADDITION TO THE SALES TAX LEVIED BY 60
SECTION 5739.02 OF THE REVISED CODE, AND IS SUBJECT TO THE SAME 62
EXEMPTIONS AND EXCEPTIONS, AND SHALL BE IMPOSED AND COLLECTED 64
PURSUANT TO THE SAME PROCEDURES, AS THAT TAX.
(B) THE TAX COMMISSIONER, BY RULE, SHALL PRESCRIBE 67
SCHEDULES SHOWING THE AMOUNT OF TAX TO BE COLLECTED UNDER THIS 68
CHAPTER AND CHAPTER 5741. OF THE REVISED CODE AT EACH PRICE 71
LEVEL, AND THAT AMOUNT OF TAX SHALL BE COLLECTED NOTWITHSTANDING 72
SECTION 5739.025 OF THE REVISED CODE. SECTION 5739.21 OF THE 75
REVISED CODE DOES NOT APPLY TO THE TAX LEVIED BY THIS SECTION. 77
Sec. 5741.024. ONLY IF APPROVED BY THE ELECTORS PURSUANT 80
TO HOUSE BILL NO. 697 OF THE 122nd GENERAL ASSEMBLY, THERE IS 85
HEREBY LEVIED, BEGINNING JULY 1, 1998, AN EXCISE TAX OF ONE PER 87
CENT ON THE STORAGE, USE, OR OTHER CONSUMPTION IN THIS STATE OF 88
TANGIBLE PERSONAL PROPERTY OR THE BENEFIT REALIZED IN THIS STATE 89
OF ANY SERVICE PROVIDED. ONE-HALF OF THE PROCEEDS OF THE TAX 90
SHALL BE CREDITED TO THE SCHOOL TRUST FUND AND SHALL BE USED 91
SOLELY FOR THE PURPOSES OF PAYING COSTS OF SCHOOL OPERATIONS, 92
EDUCATION TECHNOLOGY, SCHOOL FACILITIES, AND DEBT SERVICE FOR 93
SCHOOL FACILITIES. ONE-HALF OF THE PROCEEDS SHALL BE CREDITED TO 95
THE PROPERTY TAX RELIEF FUND AND SHALL BE USED SOLELY TO PROVIDE 96
PROPERTY TAX RELIEF FOR HOMESTEADS. THE PROPERTY TAX RELIEF 97
PROVIDED EACH HOMESTEAD SHALL BE IN ADDITION TO THE TEN PER CENT 98
REDUCTION AND THE TWO AND ONE-HALF PER CENT REDUCTION IN THE
TAXES CHARGED AGAINST THE HOMESTEAD, AS PROVIDED UNDER SECTION 100
319.302 AND DIVISION (B) OF SECTION 323.152 OF THE REVISED CODE. 101
THE TAX HEREBY LEVIED IS IN ADDITION TO THE USE TAX LEVIED BY 103
SECTION 5741.02 OF THE REVISED CODE, AND IS SUBJECT TO THE SAME 106
3
EXEMPTIONS AND EXCEPTIONS, AND SHALL BE IMPOSED AND COLLECTED 107
PURSUANT TO THE SAME PROCEDURES, AS THAT TAX. SECTION 5741.03 OF 108
THE REVISED CODE DOES NOT APPLY TO THE TAX LEVIED BY THIS 110
SECTION.
Section 2. Section 1 of this act shall take effect only if 112
approved by a majority of the electors voting thereon, as 113
provided in Section 3 of this act, as permitted by Section 26 of 114
Article II, Ohio Constitution, because this act relates to 116
public schools. If Section 1 of this act is not submitted to the 117
electors at a special election on May 5, 1998, or if Section 1 of
this act is not approved by a majority of the electors voting on 118
the section at that special election, Sections 1, 2, 3, 4, and 5 119
of this act expire.
Section 3. After this act is signed by the Governor, it 121
shall be filed with the Secretary of State not later than 123
February 19, 1998. The Secretary of State shall submit to the 124
electors of the entire state at a special election to be held on 125
May 5, 1998, as a single proposal, approval of the enactment of 126
sections 5739.029 and 5741.024 of the Revised Code as set forth 127
within the purview of Section 1 of this act. The Secretary of 128
State shall designate the proposal as the second issue submitted 130
to the electors of the entire state at that election. 131
Notwithstanding section 3519.21 of the Revised Code, the 133
title and ballot language for the proposal shall be substantially 134
as follows: 135
"EDUCATION LEGISLATION SUBJECT TO VOTER APPROVAL 138
(Proposed by the General Assembly of the State of Ohio) 140
Shall the provisions of House Bill 697 levying a statewide 142
one per cent sales and use tax, to be used one-half for school 143
operations, education technology, school facilities, and debt 144
service for school facilities, and one-half for additional 145
property tax relief for homesteads, be approved? 147
If approved, the tax shall take effect July 1, 1998. 149
A majority yes vote is necessary for passage. 151
4
153
Yes (To approve the tax) 154
155
No (To reject the tax) 156
" 157
The General Assembly by resolution shall designate a group 160
of members who voted for H.B. 697 to prepare arguments for the 161
proposal, and a group of members who voted against H.B. 697 to 162
prepare arguments against the proposal. The arguments shall not 163
exceed three hundred words each, and shall be filed with the 164
Secretary of State not later than March 1, 1998. The ballot 165
language and the arguments shall be available for public 166
inspection in the Office of the Secretary of State. 167
The proposal, the ballot language, and the arguments shall 170
be published once a week for three consecutive weeks preceding
May 5, 1998, in at least one newspaper of general circulation in 172
each county of the state where a newspaper is published. 173
If a majority of the votes cast on the proposal is in the 175
affirmative, the proposal is approved and takes effect 176
immediately.
Section 4. All items in this section are hereby 178
appropriated as designated out of any moneys in the state 179
treasury to the credit of the General Revenue Fund. For all 180
appropriations made in this act, those in the first column are
for fiscal year 1998 and those in the second column are for 181
fiscal year 1999. The appropriations made in this act are in 182
addition to any other appropriations made for the 1997-1999 183
biennium.
CEB CONTROLLING BOARD 185
General Revenue Fund 187
GRF 911-405 Ballot Board $ 400,000 $ 0 190
TOTAL GRF General Revenue Fund $ 400,000 $ 0 193
TOTAL ALL BUDGET FUND GROUPS $ 400,000 $ 0 196
Ballot Board 199
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The foregoing appropriation item 911-405, Ballot Board, 201
shall be used for the advertising costs associated with the 202
statewide special election required by this act. 203
Within the limits set forth in this act, the Director of 205
Budget and Management shall establish accounts indicating source 206
and amount of funds for each appropriation made in this act, and 207
shall determine the form and manner in which appropriation 208
accounts shall be maintained. Expenditures from appropriations 209
contained in this act shall be accounted for as though made in
Am. Sub. H.B. 215 of the 122nd General Assembly. 210
The appropriations made in this act are subject to all 212
provisions of Am. Sub. H.B. 215 of the 122nd General Assembly 213
that are generally applicable to such appropriations. 214
Section 5. In accordance with section 1.471 of the Revised 216
Code and Ohio Constitution, Article II, Section 1d, Sections 2, 217
3, 4, and 5 of this act go into immediate effect. 218
Section 6. That section 131.45 of the Revised Code be 220
enacted to read as follows: 221
Sec. 131.45. (A) THE AMOUNT THE GENERAL ASSEMBLY 223
APPROPRIATES FROM THE GENERAL REVENUE FUND EACH YEAR PER PUPIL 225
FOR PRIMARY AND SECONDARY EDUCATIONAL PURPOSES SHALL BE NOT LESS 226
THAN THE AMOUNT IT APPROPRIATED PER PUPIL FOR THOSE PURPOSES FOR
THE BASE YEAR, ADJUSTED FOR CHANGES IN PRICES AS MEASURED BY THE 227
CONSUMER PRICE INDEX (ALL URBAN CONSUMERS, ALL ITEMS) PREPARED BY 228
THE BUREAU OF LABOR STATISTICS OF THE UNITED STATES DEPARTMENT OF 229
LABOR. THE BASE YEAR IS FISCAL YEAR 1999. 230
(B) APPROPRIATIONS OF THE PROCEEDS OF THE SALES AND USE 234
TAX LEVIED BY SECTIONS 5739.029 AND 5741.024 OF THE REVISED CODE 235
AND OF THE NET PROCEEDS OF ANY STATE LOTTERY UNDER SECTION 6 OF 238
ARTICLE XV OF THE OHIO CONSTITUTION SHALL BE IN ADDITION TO 241
APPROPRIATIONS MADE PURSUANT TO THIS SECTION. 242
(C) FOR THE PURPOSES OF THIS SECTION, APPROPRIATIONS FOR 245
PRIMARY AND SECONDARY EDUCATIONAL PURPOSES INCLUDES AMOUNTS 247
APPROPRIATED TO REIMBURSE SCHOOL DISTRICTS FOR PROPERTY TAX 248
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REDUCTIONS REQUIRED BY LAW. 249