As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 589 5
1999-2000 6
REPRESENTATIVES HOOPS-HOUSEHOLDER-HARRIS-MOTTLEY-OLMAN- 8
DAMSCHRODER-HARTNETT-VESPER-TERWILLEGER-KRUPINSKI-CALLENDER- 9
PETERSON-JOLIVETTE-LOGAN-METELSKY-A. CORE-BUEHRER-HOLLISTER 10
_________________________________________________________________ 11
A B I L L
To amend sections 5727.08 and 5727.47 of the Revised 13
Code to require public utilities to pay only the 16
undisputed portion of property taxes if the
utility disputes the Tax Commissioner's 17
valuation, and to provide for notification of any 18
disputes to be given to county auditors and
affected taxing districts. 19
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. That sections 5727.08 and 5727.47 of the 23
Revised Code be amended to read as follows: 24
Sec. 5727.08. On or before the first day of March, 33
annually, each public utility shall file a report with the tax 34
commissioner, on a form prescribed by him THE TAX COMMISSIONER. 35
The report shall include such information as the TAX commissioner 37
requires to enable him THE TAX COMMISSIONER to make any 39
assessment or apportionment required under this chapter. 41
Such THE report shall be signed by either the owner of the 43
public utility or the president, secretary, treasurer, or another 44
duly authorized person. 45
If a public utility fails to file the report on or before 47
the first day of March, or the date it is due under an extension 48
allowed pursuant to section 5727.48 of the Revised Code, or fails 49
to accurately report all taxable property, the TAX commissioner 51
shall MAY impose a penalty of up to fifty per cent of the taxable 52
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value of the property that was not timely or accurately reported. 55
However, if such THE public utility files, within sixty days 56
after the first day of March or the extended due date, the report 57
or an amended report and discloses all items of taxable property 58
that are required by this chapter to be reported, the penalty 60
shall be up to NOT BE MORE THAN five per cent of the taxable 61
value that was not timely or accurately reported. The penalty 64
shall be added to and considered a part of the total taxable 66
value of the property that was not timely or accurately reported, 67
and may be abated in whole or in part by the tax commissioner 69
pursuant to a petition for reassessment filed under section 70
5727.47 of the Revised Code.
Sec. 5727.47. (A) A copy of each assessment certified 79
pursuant to section 5727.23 or 5727.38 of the Revised Code shall 81
be mailed to the public utility, and its mailing shall be
prima-facie evidence of its receipt by the public utility to 82
which it is addressed. If a public utility objects to any 83
assessment certified to it pursuant to such sections, it may file 84
a petition for reassessment with the tax commissioner. The 85
petition must be made in writing, signed by the authorized agent 86
of the utility having knowledge of the facts, and filed with the 87
TAX commissioner, in person or by certified mail, within thirty 88
days from the date that the assessment was mailed. If the 90
petition is filed by certified mail, the date of the United 91
States postmark placed on the sender's receipt by the postal 92
employee to whom the petition is presented shall be treated as 93
the date of filing. A true copy of the assessment objected to 94
shall be attached to the petition and shall be incorporated by 95
reference into the petition, but the failure to attach a copy of 96
the assessment and incorporate it by reference does not 97
invalidate the petition. The petition also shall indicate the 98
utility's objections, but additional objections may be raised in 99
writing if received prior to the date shown on the final 100
determination by the commissioner.
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Notwithstanding the fact that a petition has been filed, IN 103
THE CASE OF A PETITION SEEKING A REDUCTION IN TAXABLE VALUE FILED
WITH RESPECT TO AN ASSESSMENT ISSUED UNDER SECTION 5727.23 OF THE 104
REVISED CODE, THE PETITIONER SHALL STATE IN THE PETITION THE 106
TOTAL AMOUNT OF REDUCTION IN TAXABLE VALUE SOUGHT BY THE 107
PETITIONER. IF THE PETITIONER OBJECTS TO THE PERCENTAGE OF TRUE 108
VALUE AT WHICH TAXABLE PROPERTY IS ASSESSED BY THE TAX 109
COMMISSIONER, THE PETITIONER SHALL STATE IN THE PETITION THE
TOTAL AMOUNT OF REDUCTION IN TAXABLE VALUE SOUGHT BOTH WITH AND 111
WITHOUT REGARD TO THE OBJECTION PERTAINING TO THE PERCENTAGE OF 112
TRUE VALUE AT WHICH ITS TAXABLE PROPERTY IS ASSESSED. IF A 114
PETITIONER OBJECTS TO THE TAX COMMISSIONER'S APPORTIONMENT OF THE 115
TAXABLE VALUE OF THE PETITIONER'S TAXABLE PROPERTY, THE 116
PETITIONER SHALL DISTINCTLY STATE IN THE PETITION THAT THE 117
PETITIONER OBJECTS TO THE TAX COMMISSIONER'S APPORTIONMENT, AND, 118
WITHIN FORTY-FIVE DAYS AFTER FILING THE PETITION FOR 119
REASSESSMENT, SHALL SUBMIT THE PETITIONER'S PROPOSED 120
APPORTIONMENT OF THE TAXABLE VALUE OF ITS TAXABLE PROPERTY AMONG 121
TAXING DISTRICTS. IF A PETITIONER THAT OBJECTS TO THE TAX 122
COMMISSIONER'S APPORTIONMENT FAILS TO STATE ITS OBJECTIONS TO 123
THAT APPORTIONMENT IN ITS PETITION FOR REASSESSMENT OR FAILS TO 124
SUBMIT ITS PROPOSED APPORTIONMENT WITHIN FORTY-FIVE DAYS AFTER 125
FILING THE PETITION FOR REASSESSMENT, THE TAX COMMISSIONER SHALL 126
DISMISS THE PETITIONER'S OBJECTION TO THE TAX COMMISSIONER'S 127
APPORTIONMENT, AND THE TAXABLE VALUE OF THE PETITIONER'S TAXABLE 128
PROPERTY, SUBJECT TO ANY ADJUSTMENT TO TAXABLE VALUE PURSUANT TO 129
THE PETITION OR APPEAL, SHALL BE APPORTIONED IN THE MANNER USED 130
BY THE TAX COMMISSIONER IN THE PRELIMINARY OR AMENDED PRELIMINARY 131
ASSESSMENT ISSUED UNDER SECTION 5727.23 OF THE REVISED CODE. 132
IF AN ADDITIONAL OBJECTION SEEKING A REDUCTION IN TAXABLE 134
VALUE IN EXCESS OF THE REDUCTION STATED IN THE ORIGINAL PETITION 135
IS PROPERLY AND TIMELY RAISED WITH RESPECT TO AN ASSESSMENT 136
ISSUED UNDER SECTION 5727.23 OF THE REVISED CODE, THE PETITIONER 137
SHALL STATE THE TOTAL AMOUNT OF THE REDUCTION IN TAXABLE VALUE 138
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SOUGHT IN THE ADDITIONAL OBJECTION BOTH WITH AND WITHOUT REGARD 139
TO ANY REDUCTION IN TAXABLE VALUE PERTAINING TO THE PERCENTAGE OF 141
TRUE VALUE AT WHICH TAXABLE PROPERTY IS ASSESSED. IF A 142
PETITIONER FAILS TO STATE THE REDUCTION IN TAXABLE VALUE SOUGHT 143
IN THE ORIGINAL PETITION OR IN ADDITIONAL OBJECTIONS PROPERLY 144
RAISED AFTER THE PETITION IS FILED, THE TAX COMMISSIONER SHALL 145
NOTIFY THE PETITIONER OF THE FAILURE BY CERTIFIED MAIL. IF THE 146
PETITIONER FAILS TO NOTIFY THE TAX COMMISSIONER IN WRITING OF THE 147
REDUCTION IN TAXABLE VALUE SOUGHT IN THE PETITION OR IN AN 148
ADDITIONAL OBJECTION WITHIN THIRTY DAYS AFTER RECEIVING THE TAX 149
COMMISSIONER'S NOTICE, THE TAX COMMISSIONER SHALL DISMISS THE 150
PETITION OR THE ADDITIONAL OBJECTION IN WHICH THAT REDUCTION IS 151
SOUGHT.
(B)(1) SUBJECT TO DIVISIONS (B)(2) AND (3) OF THIS 153
SECTION, A PUBLIC UTILITY FILING A PETITION FOR REASSESSMENT 155
REGARDING AN ASSESSMENT ISSUED UNDER SECTION 5727.23 OR 5727.38 156
OF THE REVISED CODE SHALL PAY the tax with respect to the 157
assessment objected to shall be paid as required by law. The 158
acceptance of the ANY tax payment by the treasurer of state or 160
any county treasurer shall not prejudice any claim for taxes on 161
final determination by the TAX commissioner or final decision by 162
the board of tax appeals or any court.
(2) IF A PUBLIC UTILITY PROPERLY AND TIMELY FILES A 164
PETITION FOR REASSESSMENT REGARDING AN ASSESSMENT ISSUED UNDER 165
SECTION 5727.23 OF THE REVISED CODE, THE PETITIONER SHALL PAY THE 166
TAX AS PRESCRIBED BY DIVISIONS (B)(2)(a), (b), AND (c) OF THIS 168
SECTION:
(a) IF THE PETITIONER DOES NOT OBJECT TO THE TAX 170
COMMISSIONER'S APPORTIONMENT OF THE TAXABLE VALUE OF THE 172
PETITIONER'S TAXABLE PROPERTY, THE PETITIONER IS NOT REQUIRED TO 174
PAY THE PART OF THE TAX OTHERWISE DUE ON THE TAXABLE VALUE THAT 175
THE PETITIONER SEEKS TO HAVE REDUCED, SUBJECT TO DIVISION 176
(B)(2)(c) OF THIS SECTION.
(b) IF THE PETITIONER OBJECTS TO THE TAX COMMISSIONER'S 178
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APPORTIONMENT OF THE TAXABLE VALUE OF THE PETITIONER'S TAXABLE 179
PROPERTY, THE PETITIONER IS NOT REQUIRED TO PAY THE TAX OTHERWISE 181
DUE ON THE PART OF THE TAXABLE VALUE APPORTIONED TO ANY TAXING 182
DISTRICT THAT THE PETITIONER OBJECTS TO, SUBJECT TO DIVISION 183
(B)(2)(c) OF THIS SECTION. IF, PURSUANT TO DIVISION (A) OF THIS 184
SECTION, THE PETITIONER HAS, IN A PROPER AND TIMELY MANNER, 185
APPORTIONED TAXABLE VALUE TO A TAXING DISTRICT TO WHICH THE TAX 186
COMMISSIONER DID NOT APPORTION THE PETITIONER'S TAXABLE VALUE, 187
THE PETITIONER SHALL PAY THE TAX DUE ON THE TAXABLE VALUE THAT 188
THE PETITIONER HAS APPORTIONED TO THE TAXING DISTRICT, SUBJECT TO 189
DIVISION (B)(2)(c) OF THIS SECTION. 190
(c) IF A PETITIONER OBJECTS TO THE PERCENTAGE OF TRUE 192
VALUE AT WHICH TAXABLE PROPERTY IS ASSESSED BY THE TAX 193
COMMISSIONER, THE PETITIONER SHALL PAY THE TAX DUE ON THE BASIS 195
OF THE PERCENTAGE OF TRUE VALUE AT WHICH THE PUBLIC UTILITY'S
TAXABLE PROPERTY IS ASSESSED BY THE TAX COMMISSIONER. IN ANY 197
CASE, THE PETITIONER'S PAYMENT OF TAX SHALL NOT BE LESS THAN THE 198
AMOUNT OF TAX DUE BASED ON THE TAXABLE VALUE REFLECTED ON THE
LAST APPEAL NOTICE ISSUED BY THE TAX COMMISSIONER UNDER DIVISION 199
(C) OF THIS SECTION. UNTIL THE COUNTY AUDITOR RECEIVES 201
NOTIFICATION UNDER DIVISION (E) OF THIS SECTION AND PROCEEDS 202
UNDER SECTION 5727.471 OF THE REVISED CODE TO ISSUE ANY REFUND
THAT IS FOUND TO BE DUE, THE COUNTY AUDITOR SHALL NOT ISSUE A 203
REFUND FOR ANY INCREASE IN THE REDUCTION IN TAXABLE VALUE THAT IS 204
SOUGHT BY A PETITIONER LATER THAN FORTY-FIVE DAYS AFTER THE 205
PETITIONER FILES THE ORIGINAL PETITION AS REQUIRED UNDER DIVISION 206
(A) OF THIS SECTION. 207
(3) ANY PART OF THE TAX THAT, UNDER DIVISION (B)(2)(a) OR 210
(b) OF THIS SECTION, IS NOT PAID SHALL BE COLLECTED UPON RECEIPT 213
OF THE NOTIFICATION AS PROVIDED IN SECTION 5727.471 OF THE
REVISED CODE WITH INTEREST THEREON COMPUTED IN THE SAME MANNER AS 214
INTEREST IS COMPUTED UNDER DIVISION (E) OF SECTION 5715.19 OF THE 215
REVISED CODE, SUBJECT TO ANY CORRECTION OF THE ASSESSMENT BY THE 218
TAX COMMISSIONER UNDER DIVISION (E) OF THIS SECTION OR THE FINAL 219
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JUDGMENT OF THE BOARD OF TAX APPEALS OR A COURT TO WHICH THE 220
BOARD'S FINAL JUDGMENT IS APPEALED. THE PENALTY IMPOSED UNDER 222
SECTION 323.121 OF THE REVISED CODE SHALL APPLY ONLY TO THE 223
UNPAID PORTION OF THE TAX IF THE PETITIONER'S TAX PAYMENT IS LESS 224
THAN THE AMOUNT OF TAX DUE BASED ON THE TAXABLE VALUE REFLECTED 225
ON THE LAST APPEAL NOTICE ISSUED BY THE TAX COMMISSIONER UNDER 226
DIVISION (C) OF THIS SECTION. 227
(C) Upon receipt of a properly filed petition FOR 229
REASSESSMENT, the TAX commissioner shall notify the treasurer of 231
state or the auditor of each county to which the assessment 232
objected to has been certified. IN THE CASE OF A PETITION WITH 233
RESPECT TO AN ASSESSMENT ISSUED UNDER SECTION 5727.23 OF THE 234
REVISED CODE, THE TAX COMMISSIONER SHALL ISSUE AN APPEAL NOTICE 235
WITHIN THIRTY DAYS AFTER RECEIVING THE AMOUNT OF THE TAXABLE 236
VALUE REDUCTION AND APPORTIONMENT CHANGES SOUGHT BY THE 237
PETITIONER IN THE ORIGINAL PETITION OR IN ANY ADDITIONAL 238
OBJECTIONS PROPERLY AND TIMELY RAISED BY THE PETITIONER. THE 239
APPEAL NOTICE SHALL INDICATE THE AMOUNT OF THE REDUCTION IN 241
TAXABLE VALUE SOUGHT IN THE PETITION OR IN THE ADDITIONAL 242
OBJECTIONS AND THE EXTENT TO WHICH THE REDUCTION IN TAXABLE VALUE 243
AND ANY CHANGE IN APPORTIONMENT REQUESTED BY THE PETITIONER WOULD 245
AFFECT THE TAX COMMISSIONER'S APPORTIONMENT OF THE TAXABLE VALUE 246
AMONG TAXING DISTRICTS IN THE COUNTY AS SHOWN IN THE ASSESSMENT. 247
IF A PETITIONER IS SEEKING A REDUCTION IN TAXABLE VALUE ON THE 248
BASIS OF A LOWER PERCENTAGE OF TRUE VALUE THAN THE PERCENTAGE AT 249
WHICH THE TAX COMMISSIONER ASSESSED THE PETITIONER'S TAXABLE 250
PROPERTY, THE APPEAL NOTICE SHALL INDICATE THE REDUCTION IN 251
TAXABLE VALUE SOUGHT BY THE PETITIONER WITHOUT REGARD TO THE 252
REDUCTION SOUGHT ON THE BASIS OF THE LOWER PERCENTAGE AND SHALL 253
INDICATE THAT THE PETITIONER IS REQUIRED TO PAY TAX ON THE 254
REDUCED TAXABLE VALUE DETERMINED WITHOUT REGARD TO THE REDUCTION 255
SOUGHT ON THE BASIS OF A LOWER PERCENTAGE OF TRUE VALUE, AS 256
PROVIDED UNDER DIVISION (B)(2)(c) OF THIS SECTION. THE APPEAL 258
NOTICE SHALL INCLUDE A STATEMENT THAT THE REDUCED TAXABLE VALUE 259
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AND THE APPORTIONMENT INDICATED IN THE NOTICE ARE NOT FINAL AND 260
ARE SUBJECT TO ADJUSTMENT BY THE TAX COMMISSIONER OR BY THE BOARD 261
OF TAX APPEALS OR A COURT ON APPEAL. IF THE TAX COMMISSIONER 263
FINDS AN ERROR IN THE APPEAL NOTICE, THE TAX COMMISSIONER MAY 264
AMEND THE NOTICE, BUT THE NOTICE IS ONLY FOR INFORMATIONAL AND 265
TAX PAYMENT PURPOSES; THE NOTICE IS NOT SUBJECT TO APPEAL BY ANY 266
PERSON. THE TAX COMMISSIONER ALSO SHALL MAIL A COPY OF THE 267
APPEAL NOTICE TO THE PETITIONER. UPON THE REQUEST OF A TAXING
AUTHORITY, THE COUNTY AUDITOR MAY DISCLOSE TO THE TAXING 269
AUTHORITY THE EXTENT TO WHICH A REDUCTION IN TAXABLE VALUE SOUGHT 270
BY A PETITIONER WOULD AFFECT THE APPORTIONMENT OF TAXABLE VALUE 271
TO THE TAXING DISTRICT OR DISTRICTS UNDER THE TAXING AUTHORITY'S 272
JURISDICTION, BUT SUCH A DISCLOSURE DOES NOT CONSTITUTE A NOTICE 273
REQUIRED BY LAW TO BE GIVEN FOR THE PURPOSE OF SECTION 5717.02 OF 274
THE REVISED CODE.
(D) Unless the petitioner waives a hearing, the 276
commissioner shall assign a time and place for the hearing on the 277
petition and notify the petitioner of the time and place of the 278
hearing by personal service or certified mail, but the 279
commissioner may continue the hearing from time to time if 280
necessary.
(E) The TAX commissioner may make such correction to the 282
assessment as the TAX commissioner finds proper. The TAX 284
commissioner shall serve a copy of the commissioner's final 287
determination on the petitioner by personal service or certified 288
mail, and the TAX commissioner's decision in the matter shall be 289
final, subject to appeal as provided in section 5717.02 of the 290
Revised Code. The TAX commissioner also shall transmit a copy of 291
the final determination to the treasurer of state or applicable 293
county auditor. In the absence of any further appeal, or when a 294
decision of the board of tax appeals or of any court to which the 295
decision has been appealed becomes final, the TAX commissioner 296
shall notify the public utility and, as appropriate, the 297
treasurer of state who shall proceed under section 5727.42 of the 298
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Revised Code, or the applicable county auditor who shall proceed 299
under section 5727.471 of the Revised Code. The notification is 300
not subject to further appeal. 301
(F) ON APPEAL, NO ADJUSTMENT SHALL BE MADE IN THE TAX 303
COMMISSIONER'S ASSESSMENT ISSUED UNDER SECTION 5727.23 OF THE 304
REVISED CODE THAT REDUCES THE TAXABLE VALUE OF A PETITIONER'S 305
TAXABLE PROPERTY BY AN AMOUNT THAT EXCEEDS THE REDUCTION SOUGHT 306
BY THE PETITIONER IN ITS PETITION FOR REASSESSMENT OR IN ANY 307
ADDITIONAL OBJECTIONS PROPERLY AND TIMELY RAISED AFTER THE 308
PETITION IS FILED WITH THE TAX COMMISSIONER. 309
Section 2. That existing sections 5727.08 and 5727.47 of 311
the Revised Code are hereby repealed. 312
Section 3. The amendment by this act of sections 5727.08 314
and 5727.47 of the Revised Code applies to tax years 2001 and 315
thereafter.