As Passed by the Senate 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 262 5
1999-2000 6
REPRESENTATIVES ROMAN-D.MILLER-NETZLEY-SULZER-TIBERI-CATES- 8
JACOBSON-TAYLOR-PRINGLE-CLANCY-PERZ-SCHULER-YOUNG- 9
MOTTLEY-GRENDELL-SCHUCK-O'BRIEN-VESPER-KREBS-PADGETT- 10
DePIERO-WILLAMOWSKI-BUEHRER-BOYD-JOLIVETTE-SCHURING- 11
ROBERTS-HOOD-SULLIVAN-METELSKY-SMITH-ALLEN-VAN VYVEN- 12
HOUSEHOLDER-KRUPINSKI-HOLLISTER-FORD-SALERNO-WOMER BENJAMIN- 13
FLANNERY-HARTNETT-DISTEL-PERRY-AUSTRIA-PETERSON-AMSTUTZ- 14
HAINES-CAREY-DAMSCHRODER-KILBANE-MAIER-BENDER-PATTON-VERICH- 15
BARNES-J. BEATTY-CORBIN-TRAKAS-TERWILLEGER-OLMAN-GERBERRY- 16
HARRIS-JONES-CALLENDER-BRITTON-GARDNER-R. MILLER-HOOPS- CALVERT- 18
SENATORS DRAKE-DiDONATO-McLIN-SPADA
_________________________________________________________________ 20
A B I L L
To amend sections 5705.28, 5727.391, and 5733.39, to 22
enact section 5703.55 of the Revised Code, and to 25
repeal the version of section 5733.39 of the
Revised Code that results from Am. Sub. S.B. 3 of 26
the 123rd General Assembly to prohibit the
Department of Taxation from putting social 28
security numbers on the outside of materials
mailed to taxpayers, to make changes to the law 29
regarding the adoption of a tax budget by taxing 30
units that do not levy taxes, and to allow the
Ohio coal tax credit to be taken for additional 32
compliance facilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 34
Section 1. That sections 5705.28, 5727.391, and 5733.39 be 36
amended and section 5703.55 of the Revised Code be enacted to 38
read as follows:
2
Sec. 5703.55. THE DEPARTMENT OF TAXATION SHALL NOT PUT A 40
TAXPAYER'S SOCIAL SECURITY NUMBER ON THE OUTSIDE OF ANY MATERIAL 41
MAILED TO THE TAXPAYER.
Sec. 5705.28. (A) Except as provided in division (B)(1) 50
OR (2) of this section or in section 5705.281 of the Revised 52
Code, the taxing authority of each subdivision or other taxing 53
unit shall adopt a tax budget for the next succeeding fiscal 54
year:
(1) On or before the fifteenth day of January in the case 56
of a school district; 57
(2) On or before the fifteenth day of July in the case of 59
all other subdivisions and taxing units. 60
(B)(1) Before the first day of June in each year, the 62
board of trustees of a school library district entitled to 63
participate in any appropriation or revenue of a school district 64
or to have a tax proposed by the board of education of a school 66
district shall file with the board of education of the school 67
district a tax budget for the ensuing fiscal year. On or before 68
the fifteenth day of July in each year, the board of education of 69
a school district to which a school library district tax budget 70
was submitted under this division shall adopt such tax budget on 71
behalf of the library district, but such budget shall not be part 72
of the school district's tax budget. 73
(2)(a) THE TAXING AUTHORITY OF A TAXING UNIT THAT DOES NOT 75
LEVY A TAX IS NOT REQUIRED TO ADOPT A TAX BUDGET PURSUANT TO 77
DIVISION (A) OF THIS SECTION. INSTEAD, ON OR BEFORE THE 78
FIFTEENTH DAY OF JULY EACH YEAR, SUCH TAXING AUTHORITY SHALL 79
ADOPT AN OPERATING BUDGET FOR THE TAXING UNIT FOR THE ENSUING
FISCAL YEAR. THE OPERATING BUDGET SHALL INCLUDE AN ESTIMATE OF 81
RECEIPTS FROM ALL SOURCES, A STATEMENT OF ALL TAXING UNIT 82
EXPENSES THAT ARE ANTICIPATED TO OCCUR, AND THE AMOUNT REQUIRED 83
FOR DEBT CHARGES DURING THE FISCAL YEAR. THE OPERATING BUDGET IS 84
NOT REQUIRED TO BE FILED WITH THE COUNTY AUDITOR OR THE COUNTY 85
BUDGET COMMISSION.
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(b) EXCEPT FOR THIS SECTION AND SECTIONS 5705.36, 5705.38, 88
5705.40, 5705.41, 5705.43, 5705.44, AND 5705.45 OF THE REVISED 90
CODE, A TAXING UNIT THAT DOES NOT LEVY A TAX IS NOT A TAXING UNIT 91
FOR PURPOSES OF CHAPTER 5705. OF THE REVISED CODE. DOCUMENTS 92
PREPARED IN ACCORDANCE WITH SUCH SECTIONS ARE NOT REQUIRED TO BE 94
FILED WITH THE COUNTY AUDITOR OR COUNTY BUDGET COMMISSION. 95
(c) THE TOTAL APPROPRIATIONS FROM EACH FUND OF A TAXING 97
UNIT THAT DOES NOT LEVY A TAX SHALL NOT EXCEED THE TOTAL 98
ESTIMATED REVENUE AVAILABLE FOR EXPENDITURES FROM THE FUND, AND 100
APPROPRIATIONS SHALL BE MADE FROM EACH FUND ONLY FOR THE PURPOSES 101
FOR WHICH THE FUND IS ESTABLISHED.
(C)(1) To assist in the preparation of the TAX budget, the 103
head of each department, board, commission, and district 104
authority entitled to participate in any appropriation or revenue 105
of a subdivision shall file with the taxing authority, or in the 106
case of a municipal corporation, with its chief executive 107
officer, before the forty-fifth day prior to the date on which 108
the budget must be adopted, an estimate of contemplated revenue 109
and expenditures for the ensuing fiscal year, in such form as is 110
prescribed by the taxing authority of the subdivision or by the 111
auditor of state. The taxing authority shall include in its 112
budget of expenditures the full amounts requested by district 113
authorities, not to exceed the amount authorized by law, if such 114
authorities may fix the amount of revenue they are to receive 115
from the subdivision. In a municipal corporation in which a 116
special levy for a municipal university has been authorized to be 117
levied in excess of the ten-mill limitation, or is required by 118
the charter of the municipal corporation, the taxing authority 119
shall include an amount not less than the estimated yield of such 120
levy, if such amount is requested by the board of directors of 121
the municipal university. 122
(2) A county board of mental retardation and developmental 124
disabilities may include within its estimate of contemplated 125
revenue and expenditures a reserve balance account in the 126
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community mental retardation and developmental disabilities 127
residential services fund. The account shall contain money that 128
is not needed to pay for current expenses for residential 129
services and supported living but will be needed to pay for 130
expenses for such services in the future or may be needed for 131
unanticipated emergency expenses. On the request of the county 132
board of mental retardation and developmental disabilities, the 133
board of county commissioners shall include such an account in 134
its budget of expenditures and appropriate money to the account 135
from residential service moneys for the county board. 136
(D) The board of trustees of any public library desiring 138
to participate in the distribution of the county library and 139
local government support fund shall adopt appropriate rules 140
extending the benefits of the library service of such library to 141
all the inhabitants of the county on equal terms, unless such 142
library service is by law available to all such inhabitants, and 143
shall certify a copy of such rules to the taxing authority with 144
its estimate of contemplated revenue and expenditures. Where 145
such rules have been so certified or where the adoption of such 146
rules is not required, the taxing authority shall include in its 147
budget of receipts such amounts as are specified by such board as 148
contemplated revenue from the county library and local government 149
support fund, and in its budget of expenditures the full amounts 150
requested therefrom by such board. No library association, 151
incorporated or unincorporated, is entitled to participate in the 152
proceeds of the county library and local government support fund 153
or other public funds unless such association was organized and 154
operating prior to January 1, 1968. 155
Sec. 5727.391. (A) As used in this section: 164
(1) "Compliance facility" has the same meaning as in 166
section 4905.01 of the Revised Code MEANS PROPERTY THAT IS 168
DESIGNED, CONSTRUCTED, OR INSTALLED, AND USED, AT A COAL-FIRED 169
ELECTRIC GENERATING FACILITY FOR THE PRIMARY PURPOSE OF COMPLYING 170
WITH ACID RAIN CONTROL REQUIREMENTS UNDER TITLE IV OF THE "CLEAN 172
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AIR ACT AMENDMENTS OF 1990," 104 STAT. 2584, 42 U.S.C.A. 7651, 174
AND THAT CONTROLS OR LIMITS EMISSIONS OF SULFUR OR NITROGEN
COMPOUNDS RESULTING FROM THE COMBUSTION OF COAL THROUGH THE 175
REMOVAL OR REDUCTION OF THOSE COMPOUNDS BEFORE, DURING, OR AFTER 176
THE COMBUSTION OF THE COAL, BUT BEFORE THE COMBUSTION PRODUCTS 177
ARE EMITTED INTO THE ATMOSPHERE. "Compliance facility" also 178
includes both ANY of the following: 179
(a) A FACILITY THAT REMOVES SULFUR COMPOUNDS FROM COAL 181
BEFORE THE COMBUSTION OF THE COAL AND THAT IS LOCATED OFF THE 182
PREMISES OF THE ELECTRIC GENERATING FACILITY WHERE THE COAL 183
PROCESSED BY THE COMPLIANCE FACILITY IS BURNED; 184
(b) MODIFICATIONS TO THE ELECTRIC GENERATING FACILITY 186
WHERE THE COMPLIANCE FACILITY IS CONSTRUCTED OR INSTALLED THAT 187
ARE NECESSARY TO ACCOMMODATE THE CONSTRUCTION OR INSTALLATION, 188
AND OPERATION, OF THE COMPLIANCE FACILITY; 189
(c) A BYPRODUCT DISPOSAL FACILITY, AS DEFINED IN SECTION 191
3734.051 OF THE REVISED CODE, THAT EXCLUSIVELY DISPOSES OF WASTES 193
PRODUCED BY THE COMPLIANCE FACILITY AND OTHER COAL COMBUSTION
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 194
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED REGARDLESS OF 195
WHETHER THE BYPRODUCT DISPOSAL FACILITY IS LOCATED ON THE SAME 196
PREMISES AS THE COMPLIANCE FACILITY OR GENERATING UNIT THAT 197
PRODUCES THE WASTES DISPOSED OF AT THE FACILITY; 198
(d) FACILITIES OR EQUIPMENT THAT IS ACQUIRED, CONSTRUCTED, 200
OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING 201
FACILITY EXCLUSIVELY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS 202
PRODUCED BY THE COMPLIANCE FACILITY OR OTHER COAL COMBUSTION 203
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 204
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED; 205
(e) A flue gas desulfurization system that is connected to 207
a coal-fired electric generating unit and that either was placed 208
in service prior to July 10, 1991, or construction of which was 210
commenced prior to that date; 211
(b)(f) Facilities or equipment that is acquired, 213
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constructed, or installed, and used, at a coal-fired electric 214
generating unit primarily for the purpose of handling the 215
byproducts produced by a compliance facility or other coal 216
combustion byproducts produced by the generating unit in or to 217
which the compliance facility is incorporated or connected. 218
(2) "Ohio coal" has the same meaning as in section 4913.01 220
of the Revised Code. 221
(B) An electric company shall be allowed a credit against 223
the tax computed under section 5727.38 of the Revised Code for 224
using Ohio coal in any of its coal-fired electric generating 225
units. The credit shall be claimed in the company's annual 226
statement required under division (A) of section 5727.31 of the 227
Revised Code at the rate of three dollars per ton of Ohio coal 229
burned, during the same twelve-month period used in determining 230
gross receipts and on or after January 1, 2000, in a coal-fired 232
electric generating unit under both of the following conditions: 233
(1) The coal-fired electric generating unit is owned by 235
the company claiming the credit or leased by that company under a 236
sale and leaseback transaction; 237
(2) A compliance facility is attached to, incorporated in, 239
or used in conjunction with the coal-fired generating unit. 240
(C) If the credit allowed under this section exceeds the 242
total taxes due for the current year, the tax commissioner shall 243
credit the excess against the taxes due for succeeding years 244
until the full amount of the credit is granted. 245
(D) The director of environmental protection, upon the 247
request of the tax commissioner, shall certify whether a facility 248
is a compliance facility. In the case of a compliance facility 249
owned by an electric company, the public utilities commission 250
shall certify to the tax commissioner the cost of the facility as 251
of the date it was placed in service. In the case of a 252
compliance facility owned by a person other than an electric 253
company, the tax commissioner shall determine the cost of the 254
facility as of the date it was placed in service; if the owner of 255
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such a facility fails to furnish the information necessary to 256
make that determination, no credit shall be allowed. 257
Sec. 5733.39. (A) As used in this section: 266
(1) "Compliance facility" means property that is designed, 268
constructed, or installed, and used, at a coal-fired electric 269
generating facility for the primary purpose of complying with 270
Phase I acid rain control requirements under Title IV of the 272
"Clean Air Act Amendments of 1990," 104 Stat. 2584, 42 U.S.C.A. 273
7651, and that controls or limits emissions of sulfur or nitrogen 274
compounds resulting from the combustion of coal through the 275
removal or reduction of those compounds before, during, or after 276
the combustion of the coal, but before the combustion products 277
are emitted into the atmosphere. "Compliance facility" also 278
includes any of the following: 279
(a) A facility that removes sulfur compounds from coal 281
before the combustion of the coal and that is located off the 282
premises of the electric generating facility where the coal 283
processed by the compliance facility is burned; 284
(b) Modifications to the electric generating facility 286
where the compliance facility is constructed or installed that 287
are necessary to accommodate the construction or installation, 288
and operation, of the compliance facility; 289
(c) A byproduct disposal facility, as defined in section 291
3734.051 of the Revised Code, that exclusively disposes of wastes 292
produced by the compliance facility and other coal combustion 293
byproducts produced by the generating unit in or to which the 294
compliance facility is incorporated or connected regardless of 295
whether the byproduct disposal facility is located on the same 296
premises as the compliance facility or generating unit that 297
produces the wastes disposed of at the facility; 298
(d) Facilities or equipment that is acquired, constructed, 300
or installed, and used, at a coal-fired electric generating 301
facility exclusively for the purpose of handling the byproducts 302
produced by the compliance facility or other coal combustion 303
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byproducts produced by the generating unit in or to which the 304
compliance facility is incorporated or connected; 305
(e) A flue gas desulfurization system that is connected to 308
a coal-fired electric generating unit and that either was placed 309
in service prior to July 10, 1991, or construction of which was 310
commenced prior to that date;
(f) Facilities or equipment acquired, constructed, or 313
installed, and used, at a coal-fired electric generating unit
primarily for the purpose of handling the byproducts produced by 314
a compliance facility or other coal combustion byproducts 315
produced by the generating unit in or to which the compliance 316
facility is incorporated or connected. 317
(2) "Ohio coal" has the same meaning as in section 4913.01 320
of the Revised Code. 321
(3) "Sale and leaseback transaction" has the same meaning 323
as in section 5727.01 of the Revised Code. 326
(B) An electric company shall be allowed a nonrefundable 329
credit against the tax imposed by section 5733.06 of the Revised 331
Code for Ohio coal used in any of its coal-fired electric 334
generating units after April 30, 2001, but before January 1, 335
2005. Section 5733.057 of the Revised Code shall apply when 338
calculating the credit allowed by this section. The credit shall 340
be claimed at the rate of three dollars per ton of Ohio coal 341
burned in a coal-fired electric generating unit during the 342
taxable year ending immediately preceding the tax year. The 343
credit is allowed only if both of the following conditions are 344
met during such taxable year: 345
(1) The coal-fired electric generating unit is owned and 347
used by the company claiming the credit or leased and used by 348
that company under a sale and leaseback transaction. 349
(2) A compliance facility is attached to, incorporated in, 352
or used in conjunction with the coal-fired generating unit. 353
(C) The credit shall be claimed in the order required 356
under section 5733.98 of the Revised Code. The taxpayer may 358
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carry forward any credit amount in excess of its tax due after 359
allowing for any other credits that precede the credit allowed 360
under this section in the order required under section 5733.98 of 361
the Revised Code. The excess credit may be carried forward for 363
three years following the tax year for which it is claimed under 364
this section.
(D) The director of environmental protection, upon the 367
request of the tax commissioner, shall certify whether a facility 368
is a compliance facility. In the case of a compliance facility 369
owned by an electric company, the public utilities commission 370
shall certify to the tax commissioner the cost of the facility as 371
of the date it was placed in service. In the case of a 372
compliance facility owned by a person other than an electric 373
company, the tax commissioner shall determine the cost of the 374
facility as of the date it was placed in service. If the owner 375
of such a facility fails to furnish the information necessary to 376
make that determination, no credit shall be allowed. 377
Section 2. That existing sections 5705.28, 5727.391, and 379
5733.39 of the Revised Code are hereby repealed. 380
Section 3. The amendment of section 5727.391 of the 382
Revised Code by this act does not affect its earlier repeal, with 383
delayed effective date, by Section 8 of Am. Sub. S.B. 3 of the 385
123rd General Assembly.
Section 4. The version of section 5733.39 of the Revised 387
Code that results from Am. Sub. S.B. 3 of the 123rd General 388
Assembly is hereby repealed. This repeal does not affect the 389
version of section 5733.39 of the Revised Code as it results from 390
Am. H.B. 384 of the 123rd General Assembly and is scheduled to 391
take effect January 1, 2002. 392
Section 5. Section 5733.39 of the Revised Code, as amended 394
by this act, shall take effect January 1, 2002. 395