As Reported by the Senate Finance and 1
Financial Institutions Committee* 2
122nd General Assembly 5
Regular Session Am. Sub. H. B. No. 697 6
1997-1998 7
REPRESENTATIVES JOHNSON-SYKES-THOMAS-WOMER BENJAMIN-LAWRENCE- 9
CORBIN-PRENTISS-STAPLETON-O'BRIEN-MOTTLEY-OPFER- 10
SAWYER-GARCIA-BRITTON-MEAD 11
13
A B I L L
To enact, subject to the approval of the people of 15
the State of Ohio, sections 5739.029 and 16
5741.024 of the Revised Code to levy an 17
additional one per cent sales and use tax, the 18
proceeds of which must be used one-half for 19
schools and one-half to provide property tax 20
relief for homesteads, and to enact section 21
131.45 of the Revised Code to establish required 22
levels of appropriations from the General Revenue 23
Fund for primary and secondary education each 25
year, and to make an 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) ONLY IF APPROVED BY THE ELECTORS 36
PURSUANT TO HOUSE BILL NO. 697 OF THE 122nd GENERAL ASSEMBLY, 41
THERE IS HEREBY LEVIED, BEGINNING JULY 1, 1998, AN EXCISE TAX OF 42
ONE PER CENT ON EACH RETAIL SALE MADE IN THIS STATE. ONE-HALF OF 43
THE PROCEEDS OF THE TAX SHALL BE CREDITED TO THE SCHOOL TRUST 45
FUND, WHICH IS HEREBY CREATED IN THE STATE TREASURY, AND SHALL BE 47
USED SOLELY FOR THE PURPOSES OF PAYING COSTS OF SCHOOL
OPERATIONS, EDUCATION TECHNOLOGY, SCHOOL FACILITIES, AND DEBT 49
SERVICE FOR SCHOOL FACILITIES. ONE-HALF OF THE PROCEEDS SHALL BE
2
CREDITED TO THE PROPERTY TAX RELIEF FUND, WHICH IS HEREBY CREATED 51
IN THE STATE TREASURY, AND SHALL BE USED SOLELY TO PROVIDE 52
PROPERTY TAX RELIEF FOR HOMESTEADS. THE PROPERTY TAX RELIEF 55
PROVIDED EACH HOMESTEAD SHALL BE IN ADDITION TO THE TEN PER CENT 56
REDUCTION AND THE TWO AND ONE-HALF PER CENT REDUCTION IN THE
TAXES CHARGED AGAINST THE HOMESTEAD, AS PROVIDED UNDER SECTION 58
319.302 AND DIVISION (B) OF SECTION 323.152 OF THE REVISED CODE. 59
THE TAX HEREBY LEVIED IS IN ADDITION TO THE SALES TAX LEVIED BY 61
SECTION 5739.02 OF THE REVISED CODE, AND IS SUBJECT TO THE SAME 63
EXEMPTIONS AND EXCEPTIONS, AND SHALL BE IMPOSED AND COLLECTED 65
PURSUANT TO THE SAME PROCEDURES, AS THAT TAX.
(B) THE TAX COMMISSIONER, BY RULE, SHALL PRESCRIBE 68
SCHEDULES SHOWING THE AMOUNT OF TAX TO BE COLLECTED UNDER THIS 69
CHAPTER AND CHAPTER 5741. OF THE REVISED CODE AT EACH PRICE 72
LEVEL, AND THAT AMOUNT OF TAX SHALL BE COLLECTED NOTWITHSTANDING 73
SECTION 5739.025 OF THE REVISED CODE. SECTION 5739.21 OF THE 76
REVISED CODE DOES NOT APPLY TO THE TAX LEVIED BY THIS SECTION. 78
Sec. 5741.024. ONLY IF APPROVED BY THE ELECTORS PURSUANT 81
TO HOUSE BILL NO. 697 OF THE 122nd GENERAL ASSEMBLY, THERE IS 86
HEREBY LEVIED, BEGINNING JULY 1, 1998, AN EXCISE TAX OF ONE PER 88
CENT ON THE STORAGE, USE, OR OTHER CONSUMPTION IN THIS STATE OF 89
TANGIBLE PERSONAL PROPERTY OR THE BENEFIT REALIZED IN THIS STATE 90
OF ANY SERVICE PROVIDED. ONE-HALF OF THE PROCEEDS OF THE TAX 91
SHALL BE CREDITED TO THE SCHOOL TRUST FUND AND SHALL BE USED 92
SOLELY FOR THE PURPOSES OF PAYING COSTS OF SCHOOL OPERATIONS, 93
EDUCATION TECHNOLOGY, SCHOOL FACILITIES, AND DEBT SERVICE FOR 94
SCHOOL FACILITIES. ONE-HALF OF THE PROCEEDS SHALL BE CREDITED TO 96
THE PROPERTY TAX RELIEF FUND AND SHALL BE USED SOLELY TO PROVIDE 97
PROPERTY TAX RELIEF FOR HOMESTEADS. THE PROPERTY TAX RELIEF 98
PROVIDED EACH HOMESTEAD SHALL BE IN ADDITION TO THE TEN PER CENT 99
REDUCTION AND THE TWO AND ONE-HALF PER CENT REDUCTION IN THE
TAXES CHARGED AGAINST THE HOMESTEAD, AS PROVIDED UNDER SECTION 101
319.302 AND DIVISION (B) OF SECTION 323.152 OF THE REVISED CODE. 102
THE TAX HEREBY LEVIED IS IN ADDITION TO THE USE TAX LEVIED BY 104
3
SECTION 5741.02 OF THE REVISED CODE, AND IS SUBJECT TO THE SAME 107
EXEMPTIONS AND EXCEPTIONS, AND SHALL BE IMPOSED AND COLLECTED 108
PURSUANT TO THE SAME PROCEDURES, AS THAT TAX. SECTION 5741.03 OF 109
THE REVISED CODE DOES NOT APPLY TO THE TAX LEVIED BY THIS 111
SECTION.
Section 2. Section 1 of this act shall take effect only if 113
approved by a majority of the electors voting thereon, as 114
provided in Section 3 of this act, as permitted by Section 26 of 115
Article II, Ohio Constitution, because this act relates to 117
public schools. If Section 1 of this act is not submitted to the 118
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 119
the section at that special election, Sections 1, 2, 3, 4, and 5 120
of this act expire.
Section 3. After this act is signed by the Governor, it 122
shall be filed with the Secretary of State not later than 124
February 19, 1998. The Secretary of State shall submit to the 125
electors of the entire state at a special election to be held on 126
May 5, 1998, as a single proposal, approval of the enactment of 127
sections 5739.029 and 5741.024 of the Revised Code as set forth 128
within the purview of Section 1 of this act. The Secretary of 129
State shall designate the proposal as the second issue submitted 131
to the electors of the entire state at that election. 132
Notwithstanding section 3519.21 of the Revised Code, the 134
title and ballot language for the proposal shall be substantially 135
as follows: 136
"EDUCATION LEGISLATION SUBJECT TO VOTER APPROVAL 139
(Proposed by the General Assembly of the State of Ohio) 141
Shall the provisions of House Bill 697 levying a statewide 143
one per cent sales and use tax, to be used one-half for school 144
operations, education technology, school facilities, and debt 145
service for school facilities, and one-half for additional 146
property tax relief for homesteads, be approved? 148
If approved, the tax shall take effect July 1, 1998. 150
4
A majority yes vote is necessary for passage. 152
154
Yes (To approve the tax) 155
156
No (To reject the tax) 157
" 158
The General Assembly by resolution shall designate a group 161
of members who voted for H.B. 697 to prepare arguments for the 162
proposal, and a group of members who voted against H.B. 697 to 163
prepare arguments against the proposal. The arguments shall not 164
exceed three hundred words each, and shall be filed with the 165
Secretary of State not later than March 1, 1998. The ballot 166
language and the arguments shall be available for public 167
inspection in the Office of the Secretary of State. 168
The proposal, the ballot language, and the arguments shall 171
be published once a week for three consecutive weeks preceding
May 5, 1998, in at least one newspaper of general circulation in 173
each county of the state where a newspaper is published. 174
If a majority of the votes cast on the proposal is in the 176
affirmative, the proposal is approved and takes effect 177
immediately.
Section 4. All items in this section are hereby 179
appropriated as designated out of any moneys in the state 180
treasury to the credit of the General Revenue Fund. For all 181
appropriations made in this act, those in the first column are
for fiscal year 1998 and those in the second column are for 182
fiscal year 1999. The appropriations made in this act are in 183
addition to any other appropriations made for the 1997-1999 184
biennium.
CEB CONTROLLING BOARD 186
General Revenue Fund 188
GRF 911-405 Ballot Board $ 400,000 $ 0 191
TOTAL GRF General Revenue Fund $ 400,000 $ 0 194
TOTAL ALL BUDGET FUND GROUPS $ 400,000 $ 0 197
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Ballot Board 200
The foregoing appropriation item 911-405, Ballot Board, 202
shall be used for the advertising costs associated with the 203
statewide special election required by this act. 204
Within the limits set forth in this act, the Director of 206
Budget and Management shall establish accounts indicating source 207
and amount of funds for each appropriation made in this act, and 208
shall determine the form and manner in which appropriation 209
accounts shall be maintained. Expenditures from appropriations 210
contained in this act shall be accounted for as though made in
Am. Sub. H.B. 215 of the 122nd General Assembly. 211
The appropriations made in this act are subject to all 213
provisions of Am. Sub. H.B. 215 of the 122nd General Assembly 214
that are generally applicable to such appropriations. 215
Section 5. In accordance with section 1.471 of the Revised 217
Code and Ohio Constitution, Article II, Section 1d, Sections 2, 218
3, 4, and 5 of this act go into immediate effect. 219
Section 6. That section 131.45 of the Revised Code be 221
enacted to read as follows: 222
Sec. 131.45. (A) THE AMOUNT THE GENERAL ASSEMBLY 224
APPROPRIATES FROM THE GENERAL REVENUE FUND EACH YEAR PER PUPIL 226
FOR PRIMARY AND SECONDARY EDUCATIONAL PURPOSES SHALL BE NOT LESS 227
THAN THE AMOUNT IT APPROPRIATED PER PUPIL FOR THOSE PURPOSES FOR
THE BASE YEAR, ADJUSTED FOR CHANGES IN PRICES AS MEASURED BY THE 228
CONSUMER PRICE INDEX (ALL URBAN CONSUMERS, ALL ITEMS) PREPARED BY 229
THE BUREAU OF LABOR STATISTICS OF THE UNITED STATES DEPARTMENT OF 230
LABOR. THE BASE YEAR IS FISCAL YEAR 1999. 231
(B) APPROPRIATIONS OF THE PROCEEDS OF THE SALES AND USE 235
TAX LEVIED BY SECTIONS 5739.029 AND 5741.024 OF THE REVISED CODE 236
AND OF THE NET PROCEEDS OF ANY STATE LOTTERY UNDER SECTION 6 OF 239
ARTICLE XV OF THE OHIO CONSTITUTION SHALL BE IN ADDITION TO 242
APPROPRIATIONS MADE PURSUANT TO THIS SECTION. 243
(C) FOR THE PURPOSES OF THIS SECTION, APPROPRIATIONS FOR 246
PRIMARY AND SECONDARY EDUCATIONAL PURPOSES INCLUDES AMOUNTS 248
6
APPROPRIATED TO REIMBURSE SCHOOL DISTRICTS FOR PROPERTY TAX 249
REDUCTIONS REQUIRED BY LAW. 250