As Passed by the Senate                       1            

123rd General Assembly                                             4            

   Regular Session                        Sub. 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           

  AMSTUTZ-METTLER-TIBERI-STAPLETON-GRENDELL-CORBIN-EVANS-CAREY-    11           

WILSON-BRADING-BENDER-PATTON-WIDENER-WILLAMOWSKI-ASLANIDES-MEAD-   12           

                    BARRETT-SENATOR BLESSING                       13           


_________________________________________________________________   15           

                          A   B I L L                                           

             To amend sections 3317.01, 3317.021, 3317.025,        17           

                5709.61, 5727.08, 5727.47, and 5727.471 of the     18           

                Revised Code to require public utilities to pay    21           

                only the undisputed portion of property taxes if                

                the utility disputes the Tax Commissioner's        22           

                valuation, to provide for notification of any      23           

                disputes to be given to county auditors and                     

                affected taxing districts, and to allow            24           

                electricity generation plants and equipment to be  25           

                exempted from taxation under the enterprise zone   26           

                law even if they operate during nonpeak periods                 

                and for more than one-half of a year.              27           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        29           

      Section 1.  That sections 3317.01, 3317.021, 3317.025,       31           

5709.61, 5727.08, 5727.47, and 5727.471 of the Revised Code be     32           

amended to read as follows:                                        33           

      Sec. 3317.01.  As used in this section and section 3317.011  42           

of the Revised Code, "school district," unless otherwise           43           

specified, means any city, local, exempted village, joint          44           

vocational, or cooperative education school district and any       46           

educational service center.                                                     

                                                          2      


                                                                 
      This chapter shall be administered by the state board of     48           

education.  The superintendent of public instruction shall         49           

calculate the amounts payable to each school district and shall    50           

certify the amounts payable to each eligible district to the       51           

treasurer of the district as provided by this chapter.  No moneys  52           

shall be distributed pursuant to this chapter without the          53           

approval of the controlling board.                                 54           

      The state board of education shall, in accordance with       56           

appropriations made by the general assembly, meet the financial    57           

obligations of this chapter.                                       58           

      Annually, the department of education shall calculate and    60           

report to each school district the district's total state and      61           

local funds for providing an adequate basic education to the       62           

district's nonhandicapped students, utilizing the determination    63           

in section 3317.012 of the Revised Code.  In addition, the                      

department shall calculate and report separately for each school   65           

district the district's total state and local funds for providng   66           

PROVIDING an adequate education for its handicapped students,      68           

utilizing the determinations in both sections 3317.012 and                      

3317.013 of the Revised Code.                                      69           

      Not later than the thirty-first day of August of each        71           

fiscal year, the department of education shall provide to each     72           

school district and county MR/DD board a preliminary estimate of   73           

the amount of funding that the department calculates the district  74           

will receive under each of divisions (C)(1) and (5) of section     75           

3317.022 of the Revised Code.  No later than the first day of      76           

December of each fiscal year, the department shall update that     77           

preliminary estimate.                                                           

      Moneys distributed pursuant to this chapter shall be         79           

calculated and paid on a fiscal year basis, beginning with the     80           

first day of July and extending through the thirtieth day of       81           

June.  The moneys appropriated for each fiscal year shall be       82           

distributed at least monthly to each school district unless        83           

otherwise provided for.  The state board shall submit a yearly     84           

                                                          3      


                                                                 
distribution plan to the controlling board at its first meeting    86           

in July.  The state board shall submit any proposed midyear                     

revision of the plan to the controlling board in January.  Any     88           

year-end revision of the plan shall be submitted to the            89           

controlling board in June.  If moneys appropriated for each                     

fiscal year are distributed other than monthly, such distribution  90           

shall be on the same basis for each school district.               91           

      The total amounts paid each month shall constitute, as       93           

nearly as possible, one-twelfth of the total amount payable for    94           

the entire year.  Payments made during the first six months of     95           

the fiscal year may be based on an estimate of the amounts         96           

payable for the entire year.  Payments made in the last six        97           

months shall be based on the final calculation of the amounts      98           

payable to each school district for that fiscal year.  Payments    99           

made in the last six months may be adjusted, if necessary, to      100          

correct the amounts distributed in the first six months, and to    101          

reflect enrollment increases when such are at least three per      102          

cent.  Except as otherwise provided, payments under this chapter   103          

shall be made only to those school districts in which:             104          

      (A)  The school district, except for any educational         107          

service center and any joint vocational or cooperative education   108          

school district, levies for current operating expenses at least    109          

twenty mills.  Levies for joint vocational or cooperative          111          

education school districts or county school financing districts,   112          

limited to or to the extent apportioned to current expenses,       113          

shall be included in this qualification requirement.  School       114          

district income tax levies under Chapter 5748. of the Revised      115          

Code, limited to or to the extent apportioned to current           116          

operating expenses, shall be included in this qualification        117          

requirement to the extent determined by the tax commissioner       118          

under division (C)(D) of section 3317.021 of the Revised Code.     120          

      (B)  The school year next preceding the fiscal year for      122          

which such payments are authorized meets the requirement of        123          

section 3313.48 or 3313.481 of the Revised Code, with regard to    124          

                                                          4      


                                                                 
the minimum number of days or hours school must be open for        125          

instruction with pupils in attendance, for individualized          126          

parent-teacher conference and reporting periods, and for           127          

professional meetings of teachers.  This requirement shall be      128          

waived by the superintendent of public instruction if it had been  129          

necessary for a school to be closed because of disease epidemic,   130          

hazardous weather conditions, inoperability of school buses or     131          

other equipment necessary to the school's operation, damage to a   132          

school building, or other temporary circumstances due to utility   133          

failure rendering the school building unfit for school use,        134          

provided that for those school districts operating pursuant to     135          

section 3313.48 of the Revised Code the number of days the school  136          

was actually open for instruction with pupils in attendance and    137          

for individualized parent-teacher conference and reporting         138          

periods is not less than one hundred seventy-five, or for those    139          

school districts operating on a trimester plan the number of days  140          

the school was actually open for instruction with pupils in        141          

attendance not less than seventy-nine days in any trimester, for   142          

those school districts operating on a quarterly plan the number    143          

of days the school was actually open for instruction with pupils   144          

in attendance not less than fifty-nine days in any quarter, or     145          

for those school districts operating on a pentamester plan the     146          

number of days the school was actually open for instruction with   147          

pupils in attendance not less than forty-four days in any          148          

pentamester.                                                                    

      A school district shall not be considered to have failed to  150          

comply with this division or section 3313.481 of the Revised Code  151          

because schools were open for instruction but either twelfth       152          

grade students were excused from attendance for up to three days   153          

or only a portion of the kindergarten students were in attendance  154          

for up to three days in order to allow for the gradual             155          

orientation to school of such students.                            156          

      The superintendent of public instruction shall waive the     158          

requirements of this section with reference to the minimum number  159          

                                                          5      


                                                                 
of days or hours school must be in session with pupils in          160          

attendance for the school year succeeding the school year in       161          

which a board of education initiates a plan of operation pursuant  162          

to section 3313.481 of the Revised Code.  The minimum              163          

requirements of this section shall again be applicable to such a   164          

district beginning with the school year commencing the second      165          

July succeeding the initiation of one such plan, and for each      166          

school year thereafter.                                            167          

      A school district shall not be considered to have failed to  169          

comply with this division or section 3313.48 or 3313.481 of the    170          

Revised Code because schools were open for instruction but the     171          

length of the regularly scheduled school day, for any number of    172          

days during the school year, was reduced by not more than two      173          

hours due to hazardous weather conditions.                                      

      (C)  The school district has on file, and is paying in       175          

accordance with, a teachers' salary schedule which complies with   177          

section 3317.13 of the Revised Code.                                            

      A board of education or governing board of an educational    179          

service center which has not conformed with other law and the      181          

rules pursuant thereto, shall not participate in the distribution  182          

of funds authorized by sections 3317.022 to 3317.0211, 3317.11,    183          

3317.16, 3317.17, and 3317.19 of the Revised Code, except for      184          

good and sufficient reason established to the satisfaction of the  185          

state board of education and the state controlling board.          186          

      All funds allocated to school districts under this chapter,  188          

except those specifically allocated for other purposes, shall be   189          

used to pay current operating expenses only.                       190          

      Sec. 3317.021.  (A)  On or before the first day of June of   199          

each year, the tax commissioner shall certify to the department    200          

of education the following information for each city, exempted     201          

village, and local school district and the information required    202          

by divisions (A)(1) and (2) of this section for each joint         203          

vocational school district, and it shall be used, along with the   204          

information certified under division (B) of this section, in       205          

                                                          6      


                                                                 
making the computations for the district under section 3317.022    206          

or 3317.16 of the Revised Code:                                    207          

      (1)  The taxable value of real and public utility real       209          

property in the school district subject to taxation in the         210          

preceding tax year, by class and by county of location;            211          

      (2)  The taxable value of tangible personal property,        213          

including public utility personal property, subject to taxation    214          

by the district for the preceding tax year;                        215          

      (3)(a)  The total property tax rate and total taxes charged  217          

and payable for the current expenses for the preceding tax year    218          

and the total property tax rate and the total taxes charged and    219          

payable to a joint vocational district for the preceding tax year  220          

that are limited to or to the extent apportioned to current        221          

expenses;                                                          222          

      (b)  The portion of the amount of taxes charged and payable  224          

reported for each city, local, and exempted village school         225          

district under division (A)(3)(a) of this section attributable to  226          

a joint vocational school district.                                227          

      (4)  The value of all real and public utility real property  229          

in the school district exempted from taxation minus both of the    230          

following:                                                         231          

      (a)  The value of real and public utility real property in   233          

the district owned by the United States government and used        234          

exclusively for a public purpose;                                  235          

      (b)  The value of real and public utility real property in   237          

the district exempted from taxation under Chapter 725. or 1728.    238          

or section 3735.67, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632,  239          

5709.73, or 5709.78 of the Revised Code.                           240          

      (5)  The total effective operating tax rate for the          242          

district in the tax year for which the most recent data are        243          

available.                                                                      

      (B)  On or before the first day of May each year, the tax    245          

commissioner shall certify to the department of education the      246          

total taxable real property value of railroads and, separately,    247          

                                                          7      


                                                                 
the total taxable tangible personal property value of all public   248          

utilities for the preceding tax year, by school district and by    249          

county of location.                                                250          

      (C)  IF A PUBLIC UTILITY HAS PROPERLY AND TIMELY FILED A     252          

PETITION FOR REASSESSMENT UNDER SECTION 5727.47 OF THE REVISED     253          

CODE WITH RESPECT TO AN ASSESSMENT ISSUED UNDER SECTION 5727.23    254          

OF THE REVISED CODE AFFECTING TAXABLE PROPERTY APPORTIONED BY THE               

TAX COMMISSIONER TO A SCHOOL DISTRICT, THE TAXABLE VALUE OF        255          

PUBLIC UTILITY TANGIBLE PERSONAL PROPERTY INCLUDED IN THE          257          

CERTIFICATION UNDER DIVISIONS (A)(2) AND (B) OF THIS SECTION FOR   259          

THE SCHOOL DISTRICT SHALL INCLUDE ONLY THE AMOUNT OF TAXABLE                    

VALUE ON THE BASIS OF WHICH THE PUBLIC UTILITY PAID TAX FOR THE    261          

PRECEDING YEAR AS PROVIDED IN DIVISION (B)(1) OR (2) OF SECTION    263          

5727.47 OF THE REVISED CODE.                                                    

      (D)  If on the basis of the information certified under      265          

division (A) of this section, the department determines that any   266          

district fails in any year to meet the qualification requirement   267          

specified in division (A) of section 3317.01 of the Revised Code,  268          

the department shall immediately request the tax commissioner to   269          

determine the extent to which any school district income tax       270          

levied by the district under Chapter 5748. of the Revised Code     271          

shall be included in meeting that requirement.  Within five days   272          

of receiving such a request from the department, the tax           273          

commissioner shall make the determination required by this         274          

division and report the quotient obtained under division           276          

(C)(D)(3) of this section to the department.  This quotient        277          

represents the number of mills that the department shall include   278          

in determining whether the district meets the qualification        279          

requirement of division (A) of section 3317.01 of the Revised      280          

Code.                                                                           

      The tax commissioner shall make the determination required   282          

by this division as follows:                                       283          

      (1)  Multiply one mill times the total taxable value of the  285          

district as determined in divisions (A)(1) and (2) of this         286          

                                                          8      


                                                                 
section;                                                           287          

      (2)  Estimate the total amount of tax liability for the      289          

current tax year under taxes levied by Chapter 5748. of the        290          

Revised Code that are apportioned to current operating expenses    291          

of the district;                                                   292          

      (3)  Divide the amount estimated under division (C)(D)(2)    294          

of this section by the product obtained under division (C)(D)(1)   295          

of this section.                                                   297          

      (D)(E)  As used in this section:                             299          

      (1)  "Class I taxes charged and payable for current          302          

expenses" means taxes charged and payable for current expenses on               

land and improvements classified as residential/agricultural real  303          

property under section 5713.041 of the Revised Code.               305          

      (2)  "Class I taxable value" means the taxable value of      308          

land and improvements classified as residential/agricultural real  309          

property under section 5713.041 of the Revised Code.               310          

      (3)  "Class I effective operating tax rate" of a school      313          

district means the quotient obtained by dividing the school        314          

district's Class I taxes charged and payable for current expenses  315          

by the district's Class I taxable value.                                        

      (4)  "Income tax equivalent tax rate" of a school district   317          

means the quotient obtained by dividing the income tax revenue     319          

disbursed during the current fiscal year under any tax levied      321          

pursuant to Chapter 5748. of the Revised Code by total taxable     322          

value of the district to the extent the revenue from the tax is    323          

allocated or apportioned to current expenses.                      324          

      (5)  "Total effective operating tax rate" means the sum of   327          

the Class I effective operating tax rate and the income tax        329          

equivalent tax rate.                                                            

      Sec. 3317.025.  On or before the first day of June of each   338          

year, the tax commissioner shall certify the following             339          

information to the department of education, for each school        340          

district in which the value of the property described under        341          

division (A) of this section exceeds one per cent of the taxable   342          

                                                          9      


                                                                 
value of all real and tangible personal property in the district   343          

or in which is located tangible personal property designed for     344          

use or used in strip mining operations, whose taxable value        345          

exceeds five million dollars, and the taxes upon which the         346          

district is precluded from collecting by virtue of legal           347          

proceedings to determine the value of such property:               348          

      (A)  The total taxable value of all property in the          350          

district owned by a public utility or railroad that has filed a    351          

petition for reorganization under the "Bankruptcy Act," 47 Stat.   352          

1474 (1898), 11 U.S.C. 205, as amended, and all tangible personal  353          

property in the district designed for use or used in strip mining  354          

operations whose taxable value exceeds five million dollars upon   355          

which have not been paid in full on or before the first day of     356          

April of that calendar year all real and tangible personal         357          

property taxes levied for the preceding calendar year and which    358          

the district was precluded from collecting by virtue of            359          

proceedings under section 205 of said act or by virtue of legal    360          

proceedings to determine the tax liability of such strip mining    361          

equipment;                                                         362          

      (B)  The percentage of the total operating taxes charged     364          

and payable for school district purposes levied against such       365          

valuation for the preceding calendar year which have not been      366          

paid by such date;                                                 367          

      (C)  The product obtained by multiplying the value           369          

certified under division (A) of this section by the percentage     370          

certified under division (B) of this section.  If the value        372          

certified under division (A) of this section includes taxable      373          

property owned by a public utility or railroad that has filed a    374          

petition for reorganization under the bankruptcy act, the amount   375          

used in making the calculation under this division shall be        376          

reduced by one per cent of the total value of all real and         377          

tangible personal property in the district or the value of the     378          

utility's or railroad's property, whichever is less.               379          

      Upon receipt of the certification, the department shall      381          

                                                          10     


                                                                 
recompute the payments required under section 3317.022 of the      383          

Revised Code in the manner the payments would have been computed   384          

if:                                                                             

      (1)  The amount certified under division (C) of this         386          

section was not subject to taxation by the district and was not    387          

included in the certification made under division (A)(1), (A)(2),  388          

or (C)(D) of section 3317.021 of the Revised Code.                 389          

      (2)  The amount of taxes charged and payable and unpaid and  391          

used to make the computation under division (B) of this section    392          

had not been levied and had not been used in the computation       393          

required by division (B) of section 3317.021 of the Revised Code.  394          

The department shall pay the district that amount in the ensuing   395          

fiscal year in lieu of the amounts computed under section          397          

3317.022 of the Revised Code.                                      398          

      Sec. 5709.61.  As used in sections 5709.61 to 5709.69 of     407          

the Revised Code:                                                  408          

      (A)  "Enterprise zone" or "zone" means any of the            410          

following:                                                         411          

      (1)  An area with a single continuous boundary designated    413          

in the manner set forth in section 5709.62 or 5709.63 of the       414          

Revised Code and certified by the director of development as       415          

having a population of at least four thousand according to the     416          

best and most recent data available to the director and having at  417          

least two of the following characteristics:                        418          

      (a)  It is located in a municipal corporation defined by     420          

the United States office of management and budget as a central     421          

city of a metropolitan statistical area;                           422          

      (b)  It is located in a county designated as being in the    424          

"Appalachian region" under the "Appalachian Regional Development   425          

Act of 1965," 79 Stat. 5, 40 App. U.S.C.A. 403, as amended;        426          

      (c)  Its average rate of unemployment, during the most       428          

recent twelve-month period for which data are available, is equal  429          

to at least one hundred twenty-five per cent of the average rate   430          

of unemployment for the state of Ohio for the same period;         431          

                                                          11     


                                                                 
      (d)  There is a prevalence of commercial or industrial       433          

structures in the area that are vacant or demolished, or are       434          

vacant and the taxes charged thereon are delinquent, and           435          

certification of the area as an enterprise zone would likely       436          

result in the reduction of the rate of vacant or demolished        437          

structures or the rate of tax delinquency in the area;             438          

      (e)  The population of all census tracts in the area,        440          

according to the federal census of 1990, decreased by at least     441          

ten per cent between the years 1970 and 1990;                      442          

      (f)  At least fifty-one per cent of the residents of the     444          

area have incomes of less than eighty per cent of the median       445          

income of residents of the municipal corporation or municipal      446          

corporations in which the area is located, as determined in the    447          

same manner specified under section 119(b) of the "Housing and     448          

Community Development Act of 1974," 88 Stat. 633, 42 U.S.C. 5318,  449          

as amended;                                                        450          

      (g)  The area contains structures previously used for        452          

industrial purposes but currently not so used due to age,          453          

obsolescence, deterioration, relocation of the former occupant's   454          

operations, or cessation of operations resulting from unfavorable  455          

economic conditions either generally or in a specific economic     456          

sector;                                                            457          

      (h)  It is located within one or more adjacent city, local,  460          

or exempted village school districts, the income-weighted tax      461          

capacity of each of which is less than seventy per cent of the     462          

average of the income-weighted tax capacity of all city, local,    463          

or exempted village school districts in the state according to     464          

the most recent data available to the director from the            465          

department of taxation.                                                         

      The director of development shall adopt rules in accordance  467          

with Chapter 119. of the Revised Code establishing conditions      468          

constituting the characteristics described in divisions            469          

(A)(1)(d), (g), and (h) of this section.                           470          

      If an area could not be certified as an enterprise zone      472          

                                                          12     


                                                                 
unless it satisfied division (A)(1)(g) of this section, the        473          

legislative authority may enter into agreements in that zone       474          

under section 5709.62, 5709.63, or 5709.632 of the Revised Code    475          

only if such agreements result in the development of the           476          

facilities described in that division, the parcel of land on       477          

which such facilities are situated, or adjacent parcels.  The      478          

director of development annually shall review all agreements in    479          

such zones to determine whether the agreements have resulted in    480          

such development; if the director determines that the agreements   481          

have not resulted in such development, the director immediately    482          

shall revoke certification of the zone and notify the legislative  483          

authority of such revocation.  Any agreements entered into prior   484          

to revocation under this paragraph shall continue in effect for    485          

the period provided in the agreement.                              486          

      (2)  An area with a single continuous boundary designated    488          

in the manner set forth in section 5709.63 of the Revised Code     489          

and certified by the director of development as:                   490          

      (a)  Being located within a county that contains a           492          

population of three hundred thousand or less;                      493          

      (b)  Having a population of at least one thousand according  495          

to the best and most recent data available to the director;        496          

      (c)  Having at least two of the characteristics described    498          

in divisions (A)(1)(b) to (h) of this section.                     499          

      (3)  An area with a single continuous boundary designated    501          

in the manner set forth under division (A)(1) of section 5709.632  502          

of the Revised Code and certified by the director of development   503          

as having a population of at least four thousand, or under         504          

division (A)(2) of that section and certified as having a          505          

population of at least one thousand, according to the best and     506          

most recent data available to the director.                        507          

      (B)  "Enterprise" means any form of business organization    509          

including, but not limited to, any partnership, sole               510          

proprietorship, or corporation, including an S corporation as      511          

defined in section 1361 of the Internal Revenue Code and any       512          

                                                          13     


                                                                 
corporation that is majority work-owned either directly through    513          

the ownership of stock or indirectly through participation in an   514          

employee stock ownership plan.                                     515          

      (C)  "Facility" means an enterprise's place of business in   517          

a zone, including land, buildings, machinery, equipment, and       518          

other materials, except inventory, used in business.  "Facility"   519          

includes land, buildings, machinery, production and station        520          

equipment, other equipment, and other materials, except            522          

inventory, used in business to generate electricity that is        523          

designed and intended to operate during peak load periods and to                

generate electricity during no more than four thousand three       524          

hundred fifty hours in a calendar year, provided that, for         525          

purposes of sections 5709.61 to 5709.69 of the Revised Code, the   526          

value of the property at such a facility shall be reduced by the   528          

value, if any, that is not apportioned under section 5727.15 of    529          

the Revised Code to the taxing district in which the facility is   530          

physically located.  In the case of such a facility that is        531          

physically located in two adjacent taxing districts, the property  532          

located in each taxing district constitutes a separate facility.   534          

      "Facility" does not include any portion of an enterprise's   536          

place of business used primarily for making retail sales unless    538          

the place of business is located in an impacted city as defined    539          

in section 1728.01 of the Revised Code.                            540          

      (D)  "Vacant facility" means a facility that has been        542          

vacant for at least ninety days immediately preceding the date on  543          

which an agreement is entered into under section 5709.62 or        544          

5709.63 of the Revised Code.                                       545          

      (E)  "Expand" means to make expenditures to add land,        547          

buildings, machinery, equipment, or other materials, except        548          

inventory, to a facility that equal at least ten per cent of the   549          

market value of the facility prior to such expenditures, as        550          

determined for the purposes of local property taxation.            551          

      (F)  "Renovate" means to make expenditures to alter or       553          

repair a facility that equal at least fifty per cent of the        554          

                                                          14     


                                                                 
market value of the facility prior to such expenditures, as        555          

determined for the purposes of local property taxation.            556          

      (G)  "Occupy" means to make expenditures to alter or repair  558          

a vacant facility equal to at least twenty per cent of the market  559          

value of the facility prior to such expenditures, as determined    560          

for the purposes of local property taxation.                       561          

      (H)  "Project site" means all or any part of a facility      563          

that is newly constructed, expanded, renovated, or occupied by an  564          

enterprise.                                                        565          

      (I)  "Project" means any undertaking by an enterprise to     567          

establish a facility or to improve a project site by expansion,    568          

renovation, or occupancy.                                          569          

      (J)  "Position" means the position of one full-time          571          

employee performing a particular set of tasks and duties.          572          

      (K)  "Full-time employee" means an individual who is         574          

employed for consideration by an enterprise for at least           575          

thirty-five hours a week, or who renders any other standard of     576          

service generally accepted by custom or specified by contract as   577          

full-time employment.                                              578          

      (L)  "New employee" means a full-time employee first         580          

employed by an enterprise at a facility that is a project site     581          

after the enterprise enters an agreement under section 5709.62 or  582          

5709.63 of the Revised Code.  "New employee" does not include an   583          

employee if, immediately prior to being employed by the            584          

enterprise, the employee was employed by an enterprise that is a   585          

related member or predecessor enterprise of that enterprise.       586          

      (M)  "Unemployed person" means any person who is totally     588          

unemployed in this state, as that term is defined in division (M)  589          

of section 4141.01 of the Revised Code, for at least ten           590          

consecutive weeks immediately preceding that person's employment   592          

at a facility that is a project site, or who is so unemployed for  593          

at least twenty-six of the fifty-two weeks immediately preceding   594          

that person's employment at such a facility.                       596          

      (N)  "JTPA eligible employee" means any individual who is    598          

                                                          15     


                                                                 
eligible for employment or training under the "Job Training        599          

Partnership Act," 96 Stat. 1324 (1982), 29 U.S.C. 1501, as         600          

amended.                                                                        

      (O)  "First used in business" means that the property        602          

referred to has not been used in business in this state by the     603          

enterprise that owns it, or by an enterprise that is a related     604          

member or predecessor enterprise of such an enterprise, other      605          

than as inventory, prior to being used in business at a facility   606          

as the result of a project.                                        607          

      (P)  "Training program" means any noncredit training         609          

program or course of study that is offered by any state college    610          

or university; university branch district; community college;      611          

technical college; nonprofit college or university certified       612          

under section 1713.02 of the Revised Code; school district; joint  613          

vocational school district; school registered and authorized to    614          

offer programs under section 3332.05 of the Revised Code; an       615          

entity administering any federal, state, or local adult education  616          

and training program; or any enterprise; and that meets all of     617          

the following requirements:                                        618          

      (1)  It is approved by the director of development;          620          

      (2)  It is established or operated to satisfy the need of a  622          

particular industry or enterprise for skilled or semi-skilled      623          

employees;                                                         624          

      (3)  An individual is required to complete the course or     626          

program before filling a position at a project site.               627          

      (Q)  "Development" means to engage in the process of         629          

clearing and grading land, making, installing, or constructing     630          

water distribution systems, sewers, sewage collection systems,     631          

steam, gas, and electric lines, roads, curbs, gutters, sidewalks,  632          

storm drainage facilities, and construction of other facilities    633          

or buildings equal to at least fifty per cent of the market value  634          

of the facility prior to the expenditures, as determined for the   635          

purposes of local property taxation.                               636          

      (R)  "Large manufacturing facility" means a single Ohio      638          

                                                          16     


                                                                 
facility that employed an average of at least one thousand         639          

individuals during the five calendar years preceding an agreement  641          

authorized under division (C)(3) of section 5709.62 or division    642          

(B)(2) of section 5709.63 of the Revised Code.  For purposes of                 

this division, both of the following apply:                        643          

      (1)  A single Ohio manufacturing facility employed an        646          

average of at least one thousand individuals during the five       647          

calendar years preceding entering into such an agreement if        648          

one-fifth of the sum of the number of employees employed on the    649          

highest employment day during each of the five calendar years      650          

equals or exceeds one thousand.                                    651          

      (2)  The highest employment day is the day or days during a  654          

calendar year on which the number of employees employed at a                    

single Ohio manufacturing facility was greater than on any other   656          

day during the calendar year.                                                   

      (S)  "Business cycle" means the cycle of business activity   658          

usually regarded as passing through alternating stages of          659          

prosperity and depression.                                         660          

      (T)  "Making retail sales" means the effecting of            662          

transactions wherein one party is obligated to pay the price and   663          

the other party is obligated to provide a service or to transfer   664          

title to or possession of the item sold.                           665          

      (U)  "Environmentally contaminated" means that hazardous     667          

substances exist at a facility under conditions that have caused   668          

or would cause the facility to be identified as contaminated by    669          

the state or federal environmental protection agency.  These may   670          

include facilities located at sites identified in the master       671          

sites list or similar database maintained by the state             672          

environmental protection agency if the sites have been             673          

investigated by the agency and found to be contaminated.           674          

      (V)  "Remediate" means to make expenditures to clean up an   676          

environmentally contaminated facility so that it is no longer      677          

environmentally contaminated that equal at least ten per cent of   678          

the real property market value of the facility prior to such       679          

                                                          17     


                                                                 
expenditures as determined for the purposes of property taxation.  680          

      (W)  "Related member" has the same meaning as defined in     682          

section 5733.042 of the Revised Code without regard to division    683          

(B) of that section, except that it is used with respect to an     684          

enterprise rather than a taxpayer.                                 685          

      (X)  "Predecessor enterprise" means an enterprise from       687          

which the assets or equity of another enterprise has been          688          

transferred, which transfer resulted in the full or partial        689          

nonrecognition of gain or loss, or resulted in a carryover basis,  690          

both as determined by rule adopted by the tax commissioner.        691          

      (Y)  "Successor enterprise" means an enterprise to which     693          

the assets or equity of another enterprise has been transferred,   694          

which transfer resulted in the full or partial nonrecognition of   695          

gain or loss, or resulted in a carryover basis, both as            696          

determined by rule adopted by the tax commissioner.                697          

      Sec. 5727.08.  On or before the first day of March,          706          

annually, each public utility shall file a report with the tax     707          

commissioner, on a form prescribed by him THE TAX COMMISSIONER.    708          

The report shall include such information as the TAX commissioner  710          

requires to enable him THE TAX COMMISSIONER to make any            712          

assessment or apportionment required under this chapter.           714          

      Such THE report shall be signed by either the owner of the   716          

public utility or the president, secretary, treasurer, or another  717          

duly authorized person.                                            718          

      If a public utility fails to file the report on or before    720          

the first day of March, or the date it is due under an extension   721          

allowed pursuant to section 5727.48 of the Revised Code, or fails  722          

to accurately report all taxable property, the TAX commissioner    724          

shall MAY impose a penalty of up to fifty per cent of the taxable  725          

value of the property that was not timely or accurately reported.  728          

However, if such THE public utility files, within sixty days       729          

after the first day of March or the extended due date, the report  730          

or an amended report and discloses all items of taxable property   731          

that are required by this chapter to be reported, the penalty      733          

                                                          18     


                                                                 
shall be up to NOT BE MORE THAN five per cent of the taxable       734          

value that was not timely or accurately reported.  The penalty     737          

shall be added to and considered a part of the total taxable       739          

value of the property that was not timely or accurately reported,  740          

and may be abated in whole or in part by the tax commissioner      742          

pursuant to a petition for reassessment filed under section        743          

5727.47 of the Revised Code.                                                    

      Sec. 5727.47.  (A)  A copy of each assessment certified      752          

pursuant to section 5727.23 or 5727.38 of the Revised Code shall   754          

be mailed to the public utility, and its mailing shall be                       

prima-facie evidence of its receipt by the public utility to       755          

which it is addressed.  If a public utility objects to any         756          

assessment certified to it pursuant to such sections, it may file  757          

a petition for reassessment with the tax commissioner.  The        758          

petition must be made in writing, signed by the authorized agent   759          

of the utility having knowledge of the facts, and filed with the   760          

TAX commissioner, in person or by certified mail, within thirty    761          

days from the date that the assessment was mailed.  If the         763          

petition is filed by certified mail, the date of the United        764          

States postmark placed on the sender's receipt by the postal       765          

employee to whom the petition is presented shall be treated as     766          

the date of filing.  A true copy of the assessment objected to     767          

shall be attached to the petition and shall be incorporated by     768          

reference into the petition, but the failure to attach a copy of   769          

the assessment and incorporate it by reference does not            770          

invalidate the petition.  The petition also shall indicate the     771          

utility's objections, but additional objections may be raised in   772          

writing if received prior to the date shown on the final           773          

determination by the commissioner.                                              

      Notwithstanding the fact that a petition has been filed, IN  776          

THE CASE OF A PETITION SEEKING A REDUCTION IN TAXABLE VALUE FILED               

WITH RESPECT TO AN ASSESSMENT ISSUED UNDER SECTION 5727.23 OF THE  777          

REVISED CODE, THE PETITIONER SHALL STATE IN THE PETITION THE       779          

TOTAL AMOUNT OF REDUCTION IN TAXABLE VALUE SOUGHT BY THE           780          

                                                          19     


                                                                 
PETITIONER.  IF THE PETITIONER OBJECTS TO THE PERCENTAGE OF TRUE   781          

VALUE AT WHICH TAXABLE PROPERTY IS ASSESSED BY THE TAX             782          

COMMISSIONER, THE PETITIONER SHALL STATE IN THE PETITION THE                    

TOTAL AMOUNT OF REDUCTION IN TAXABLE VALUE SOUGHT BOTH WITH AND    784          

WITHOUT REGARD TO THE OBJECTION PERTAINING TO THE PERCENTAGE OF    785          

TRUE VALUE AT WHICH ITS TAXABLE PROPERTY IS ASSESSED.  IF A        787          

PETITIONER OBJECTS TO THE TAX COMMISSIONER'S APPORTIONMENT OF THE  788          

TAXABLE VALUE OF THE PETITIONER'S TAXABLE PROPERTY, THE            789          

PETITIONER SHALL DISTINCTLY STATE IN THE PETITION THAT THE         790          

PETITIONER OBJECTS TO THE TAX COMMISSIONER'S APPORTIONMENT, AND,   791          

WITHIN FORTY-FIVE DAYS AFTER FILING THE PETITION FOR               792          

REASSESSMENT, SHALL SUBMIT THE PETITIONER'S PROPOSED               793          

APPORTIONMENT OF THE TAXABLE VALUE OF ITS TAXABLE PROPERTY AMONG   794          

TAXING DISTRICTS.  IF A PETITIONER THAT OBJECTS TO THE TAX         795          

COMMISSIONER'S APPORTIONMENT FAILS TO STATE ITS OBJECTIONS TO      796          

THAT APPORTIONMENT IN ITS PETITION FOR REASSESSMENT OR FAILS TO    797          

SUBMIT ITS PROPOSED APPORTIONMENT WITHIN FORTY-FIVE DAYS AFTER     798          

FILING THE PETITION FOR REASSESSMENT, THE TAX COMMISSIONER SHALL   799          

DISMISS THE PETITIONER'S OBJECTION TO THE TAX COMMISSIONER'S       800          

APPORTIONMENT, AND THE TAXABLE VALUE OF THE PETITIONER'S TAXABLE   801          

PROPERTY, SUBJECT TO ANY ADJUSTMENT TO TAXABLE VALUE PURSUANT TO   802          

THE PETITION OR APPEAL, SHALL BE APPORTIONED IN THE MANNER USED    803          

BY THE TAX COMMISSIONER IN THE PRELIMINARY OR AMENDED PRELIMINARY  804          

ASSESSMENT ISSUED UNDER SECTION 5727.23 OF THE REVISED CODE.       805          

      IF AN ADDITIONAL OBJECTION SEEKING A REDUCTION IN TAXABLE    807          

VALUE IN EXCESS OF THE REDUCTION STATED IN THE ORIGINAL PETITION   808          

IS PROPERLY AND TIMELY RAISED WITH RESPECT TO AN ASSESSMENT        809          

ISSUED UNDER SECTION 5727.23 OF THE REVISED CODE, THE PETITIONER   810          

SHALL STATE THE TOTAL AMOUNT OF THE REDUCTION IN TAXABLE VALUE     811          

SOUGHT IN THE ADDITIONAL OBJECTION BOTH WITH AND WITHOUT REGARD    812          

TO ANY REDUCTION IN TAXABLE VALUE PERTAINING TO THE PERCENTAGE OF  814          

TRUE VALUE AT WHICH TAXABLE PROPERTY IS ASSESSED.  IF A            815          

PETITIONER FAILS TO STATE THE REDUCTION IN TAXABLE VALUE SOUGHT    816          

IN THE ORIGINAL PETITION OR IN ADDITIONAL OBJECTIONS PROPERLY      817          

                                                          20     


                                                                 
RAISED AFTER THE PETITION IS FILED, THE TAX COMMISSIONER SHALL     818          

NOTIFY THE PETITIONER OF THE FAILURE BY CERTIFIED MAIL.  IF THE    819          

PETITIONER FAILS TO NOTIFY THE TAX COMMISSIONER IN WRITING OF THE  820          

REDUCTION IN TAXABLE VALUE SOUGHT IN THE PETITION OR IN AN         821          

ADDITIONAL OBJECTION WITHIN THIRTY DAYS AFTER RECEIVING THE TAX    822          

COMMISSIONER'S NOTICE, THE TAX COMMISSIONER SHALL DISMISS THE      823          

PETITION OR THE ADDITIONAL OBJECTION IN WHICH THAT REDUCTION IS    824          

SOUGHT.                                                                         

      (B)(1)  SUBJECT TO DIVISIONS (B)(2) AND (3) OF THIS          826          

SECTION, A PUBLIC UTILITY FILING A PETITION FOR REASSESSMENT       828          

REGARDING AN ASSESSMENT ISSUED UNDER SECTION 5727.23 OR 5727.38    829          

OF THE REVISED CODE SHALL PAY the tax with respect to the          830          

assessment objected to shall be paid as required by law.  The      831          

acceptance of the ANY tax payment by the treasurer of state or     833          

any county treasurer shall not prejudice any claim for taxes on    834          

final determination by the TAX commissioner or final decision by   835          

the board of tax appeals or any court.                                          

      (2)  IF A PUBLIC UTILITY PROPERLY AND TIMELY FILES A         837          

PETITION FOR REASSESSMENT REGARDING AN ASSESSMENT ISSUED UNDER     838          

SECTION 5727.23 OF THE REVISED CODE, THE PETITIONER SHALL PAY THE  839          

TAX AS PRESCRIBED BY DIVISIONS (B)(2)(a), (b), AND (c) OF THIS     841          

SECTION:                                                                        

      (a)  IF THE PETITIONER DOES NOT OBJECT TO THE TAX            843          

COMMISSIONER'S APPORTIONMENT OF THE TAXABLE VALUE OF THE           845          

PETITIONER'S TAXABLE PROPERTY, THE PETITIONER IS NOT REQUIRED TO   847          

PAY THE PART OF THE TAX OTHERWISE DUE ON THE TAXABLE VALUE THAT    848          

THE PETITIONER SEEKS TO HAVE REDUCED, SUBJECT TO DIVISION          849          

(B)(2)(c) OF THIS SECTION.                                                      

      (b)  IF THE PETITIONER OBJECTS TO THE TAX COMMISSIONER'S     851          

APPORTIONMENT OF THE TAXABLE VALUE OF THE PETITIONER'S TAXABLE     852          

PROPERTY, THE PETITIONER IS NOT REQUIRED TO PAY THE TAX OTHERWISE  854          

DUE ON THE PART OF THE TAXABLE VALUE APPORTIONED TO ANY TAXING     855          

DISTRICT THAT THE PETITIONER OBJECTS TO, SUBJECT TO DIVISION       856          

(B)(2)(c) OF THIS SECTION.  IF, PURSUANT TO DIVISION (A) OF THIS   857          

                                                          21     


                                                                 
SECTION, THE PETITIONER HAS, IN A PROPER AND TIMELY MANNER,        858          

APPORTIONED TAXABLE VALUE TO A TAXING DISTRICT TO WHICH THE TAX    859          

COMMISSIONER DID NOT APPORTION THE PETITIONER'S TAXABLE VALUE,     860          

THE PETITIONER SHALL PAY THE TAX DUE ON THE TAXABLE VALUE THAT     861          

THE PETITIONER HAS APPORTIONED TO THE TAXING DISTRICT, SUBJECT TO  862          

DIVISION (B)(2)(c) OF THIS SECTION.                                863          

      (c)  IF A PETITIONER OBJECTS TO THE PERCENTAGE OF TRUE       865          

VALUE AT WHICH TAXABLE PROPERTY IS ASSESSED BY THE TAX             866          

COMMISSIONER, THE PETITIONER SHALL PAY THE TAX DUE ON THE BASIS    868          

OF THE PERCENTAGE OF TRUE VALUE AT WHICH THE PUBLIC UTILITY'S                   

TAXABLE PROPERTY IS ASSESSED BY THE TAX COMMISSIONER.  IN ANY      870          

CASE, THE PETITIONER'S PAYMENT OF TAX SHALL NOT BE LESS THAN THE   871          

AMOUNT OF TAX DUE BASED ON THE TAXABLE VALUE REFLECTED ON THE                   

LAST APPEAL NOTICE ISSUED BY THE TAX COMMISSIONER UNDER DIVISION   872          

(C) OF THIS SECTION.  UNTIL THE COUNTY AUDITOR RECEIVES            874          

NOTIFICATION UNDER DIVISION (E) OF THIS SECTION AND PROCEEDS       875          

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      876          

REFUND FOR ANY INCREASE IN THE REDUCTION IN TAXABLE VALUE THAT IS  877          

SOUGHT BY A PETITIONER LATER THAN FORTY-FIVE DAYS AFTER THE        878          

PETITIONER FILES THE ORIGINAL PETITION AS REQUIRED UNDER DIVISION  879          

(A) OF THIS SECTION.                                               880          

      (3)  ANY PART OF THE TAX THAT, UNDER DIVISION (B)(2)(a) OR   883          

(b) OF THIS SECTION, IS NOT PAID SHALL BE COLLECTED UPON RECEIPT   886          

OF THE NOTIFICATION AS PROVIDED IN SECTION 5727.471 OF THE                      

REVISED CODE WITH INTEREST THEREON COMPUTED IN THE SAME MANNER AS  887          

INTEREST IS COMPUTED UNDER DIVISION (E) OF SECTION 5715.19 OF THE  888          

REVISED CODE, SUBJECT TO ANY CORRECTION OF THE ASSESSMENT BY THE   891          

TAX COMMISSIONER UNDER DIVISION (E) OF THIS SECTION OR THE FINAL   892          

JUDGMENT OF THE BOARD OF TAX APPEALS OR A COURT TO WHICH THE       893          

BOARD'S FINAL JUDGMENT IS APPEALED.  THE PENALTY IMPOSED UNDER     895          

SECTION 323.121 OF THE REVISED CODE SHALL APPLY ONLY TO THE        896          

UNPAID PORTION OF THE TAX IF THE PETITIONER'S TAX PAYMENT IS LESS  897          

THAN THE AMOUNT OF TAX DUE BASED ON THE TAXABLE VALUE REFLECTED    898          

                                                          22     


                                                                 
ON THE LAST APPEAL NOTICE ISSUED BY THE TAX COMMISSIONER UNDER     899          

DIVISION (C) OF THIS SECTION.                                      900          

      (C)  Upon receipt of a properly filed petition FOR           902          

REASSESSMENT, the TAX commissioner shall notify the treasurer of   904          

state or the auditor of each county to which the assessment        905          

objected to has been certified.  IN THE CASE OF A PETITION WITH    906          

RESPECT TO AN ASSESSMENT ISSUED UNDER SECTION 5727.23 OF THE       907          

REVISED CODE, THE TAX COMMISSIONER SHALL ISSUE AN APPEAL NOTICE    908          

WITHIN THIRTY DAYS AFTER RECEIVING THE AMOUNT OF THE TAXABLE       909          

VALUE REDUCTION AND APPORTIONMENT CHANGES SOUGHT BY THE            910          

PETITIONER IN THE ORIGINAL PETITION OR IN ANY ADDITIONAL           911          

OBJECTIONS PROPERLY AND TIMELY RAISED BY THE PETITIONER.  THE      912          

APPEAL NOTICE SHALL INDICATE THE AMOUNT OF THE REDUCTION IN        914          

TAXABLE VALUE SOUGHT IN THE PETITION OR IN THE ADDITIONAL          915          

OBJECTIONS AND THE EXTENT TO WHICH THE REDUCTION IN TAXABLE VALUE  916          

AND ANY CHANGE IN APPORTIONMENT REQUESTED BY THE PETITIONER WOULD  918          

AFFECT THE TAX COMMISSIONER'S APPORTIONMENT OF THE TAXABLE VALUE   919          

AMONG TAXING DISTRICTS IN THE COUNTY AS SHOWN IN THE ASSESSMENT.   920          

IF A PETITIONER IS SEEKING A REDUCTION IN TAXABLE VALUE ON THE     921          

BASIS OF A LOWER PERCENTAGE OF TRUE VALUE THAN THE PERCENTAGE AT   922          

WHICH THE TAX COMMISSIONER ASSESSED THE PETITIONER'S TAXABLE       923          

PROPERTY, THE APPEAL NOTICE SHALL INDICATE THE REDUCTION IN        924          

TAXABLE VALUE SOUGHT BY THE PETITIONER WITHOUT REGARD TO THE       925          

REDUCTION SOUGHT ON THE BASIS OF THE LOWER PERCENTAGE AND SHALL    926          

INDICATE THAT THE PETITIONER IS REQUIRED TO PAY TAX ON THE         927          

REDUCED TAXABLE VALUE DETERMINED WITHOUT REGARD TO THE REDUCTION   928          

SOUGHT ON THE BASIS OF A LOWER PERCENTAGE OF TRUE VALUE, AS        929          

PROVIDED UNDER DIVISION (B)(2)(c) OF THIS SECTION.  THE APPEAL     931          

NOTICE SHALL INCLUDE A STATEMENT THAT THE REDUCED TAXABLE VALUE    932          

AND THE APPORTIONMENT INDICATED IN THE NOTICE ARE NOT FINAL AND    933          

ARE SUBJECT TO ADJUSTMENT BY THE TAX COMMISSIONER OR BY THE BOARD  934          

OF TAX APPEALS OR A COURT ON APPEAL.  IF THE TAX COMMISSIONER      936          

FINDS AN ERROR IN THE APPEAL NOTICE, THE TAX COMMISSIONER MAY      937          

AMEND THE NOTICE, BUT THE NOTICE IS ONLY FOR INFORMATIONAL AND     938          

                                                          23     


                                                                 
TAX PAYMENT PURPOSES; THE NOTICE IS NOT SUBJECT TO APPEAL BY ANY   939          

PERSON.  THE TAX COMMISSIONER ALSO SHALL MAIL A COPY OF THE        940          

APPEAL NOTICE TO THE PETITIONER.  UPON THE REQUEST OF A TAXING                  

AUTHORITY, THE COUNTY AUDITOR MAY DISCLOSE TO THE TAXING           942          

AUTHORITY THE EXTENT TO WHICH A REDUCTION IN TAXABLE VALUE SOUGHT  943          

BY A PETITIONER WOULD AFFECT THE APPORTIONMENT OF TAXABLE VALUE    944          

TO THE TAXING DISTRICT OR DISTRICTS UNDER THE TAXING AUTHORITY'S   945          

JURISDICTION, BUT SUCH A DISCLOSURE DOES NOT CONSTITUTE A NOTICE   946          

REQUIRED BY LAW TO BE GIVEN FOR THE PURPOSE OF SECTION 5717.02 OF  947          

THE REVISED CODE.                                                               

      (D)  Unless the petitioner waives a hearing, the             949          

commissioner shall assign a time and place for the hearing on the  950          

petition and notify the petitioner of the time and place of the    951          

hearing by personal service or certified mail, but the             952          

commissioner may continue the hearing from time to time if         953          

necessary.                                                                      

      (E)  The TAX commissioner may make such correction to the    955          

assessment as the TAX commissioner finds proper.  The TAX          957          

commissioner shall serve a copy of the commissioner's final        960          

determination on the petitioner by personal service or certified   961          

mail, and the TAX commissioner's decision in the matter shall be   962          

final, subject to appeal as provided in section 5717.02 of the     963          

Revised Code.  The TAX commissioner also shall transmit a copy of  964          

the final determination to the treasurer of state or applicable    966          

county auditor.  In the absence of any further appeal, or when a   967          

decision of the board of tax appeals or of any court to which the  968          

decision has been appealed becomes final, the TAX commissioner     969          

shall notify the public utility and, as appropriate, the           970          

treasurer of state who shall proceed under section 5727.42 of the  971          

Revised Code, or the applicable county auditor who shall proceed   972          

under section 5727.471 of the Revised Code.  The IN ANY            974          

NOTIFICATION REGARDING AN ASSESSMENT ISSUED UNDER SECTION 5727.23  975          

OF THE REVISED CODE, THE TAX COMMISSIONER SHALL INCLUDE A NOTICE   976          

OF THE AMOUNT OF ANY STATE BASIC AID OVERPAYMENT, AS DEFINED IN    977          

                                                          24     


                                                                 
SECTION 5727.471 OF THE REVISED CODE, TO A SCHOOL DISTRICT         978          

AFFECTED BY THE NOTIFICATION.  UPON THE TAX COMMISSIONER'S         979          

REQUEST, THE DEPARTMENT OF EDUCATION SHALL CERTIFY TO THE TAX      980          

COMMISSIONER THE AMOUNT OF ANY STATE BASIC AID OVERPAYMENT TO A    981          

SCHOOL DISTRICT.                                                                

      THE notification MADE UNDER THIS DIVISION is not subject to  984          

further appeal.                                                                 

      (F)  ON APPEAL, NO ADJUSTMENT SHALL BE MADE IN THE TAX       986          

COMMISSIONER'S ASSESSMENT ISSUED UNDER SECTION 5727.23 OF THE      987          

REVISED CODE THAT REDUCES THE TAXABLE VALUE OF A PETITIONER'S      988          

TAXABLE PROPERTY BY AN AMOUNT THAT EXCEEDS THE REDUCTION SOUGHT    989          

BY THE PETITIONER IN ITS PETITION FOR REASSESSMENT OR IN ANY       990          

ADDITIONAL OBJECTIONS PROPERLY AND TIMELY RAISED AFTER THE         991          

PETITION IS FILED WITH THE TAX COMMISSIONER.                       992          

      Sec. 5727.471.  (A)  As used in this section,                1,002        

"notification:                                                                  

      (1)  "NOTIFICATION" means notification required by section   1,004        

5727.47 of the Revised Code to be sent by the tax commissioner to  1,005        

the county auditor as to the disposition of a petition for         1,006        

reassessment, or of a decision of the board of tax appeals or any  1,007        

court with respect to an assessment of public utility property     1,008        

taxes.                                                                          

      (2)  "STATE BASIC AID OVERPAYMENT" FOR A SCHOOL DISTRICT     1,010        

MEANS THE AMOUNT BY WHICH THE PAYMENT COMPUTED FOR A FISCAL YEAR   1,011        

UNDER SECTION 3317.022 OF THE REVISED CODE EXCEEDS THE AMOUNT      1,012        

THAT WOULD HAVE BEEN COMPUTED FOR THAT FISCAL YEAR IF THE TAXABLE  1,013        

VALUE CERTIFIED UNDER DIVISION (A)(2) AND (B) OF SECTION 3317.021  1,014        

OF THE REVISED CODE FOR THE TAX YEAR PRECEDING THAT FISCAL YEAR    1,015        

HAD BEEN THE TAXABLE VALUE SHOWN IN THE NOTIFICATION FOR THAT TAX  1,016        

YEAR.                                                                           

      (B)  On receipt of the notification, the auditor shall       1,018        

determine whether there has been an underpayment or overpayment    1,019        

of taxes by the public utility.  In the case of an underpayment    1,020        

of taxes, the auditor shall notify the county treasurer of the     1,021        

                                                          25     


                                                                 
amount, and the treasurer shall proceed to collect the             1,022        

underpayment as required by law.  In FROM THE PROCEEDS OF THE      1,024        

UNDERPAYMENT SO COLLECTED THAT ARE OTHERWISE PAYABLE TO A CITY,    1,025        

LOCAL, OR EXEMPTED VILLAGE SCHOOL DISTRICT, THE COUNTY TREASURER   1,026        

SHALL DEDUCT AND WITHHOLD AN AMOUNT EQUAL TO THE STATE BASIC AID   1,027        

OVERPAYMENT, IF ANY, TO THE SCHOOL DISTRICT, PLUS INTEREST ON      1,028        

THAT AMOUNT AT THE RATE PRESCRIBED BY SECTION 5703.47 OF THE       1,029        

REVISED CODE FROM THE LAST DAY OF THE FISCAL YEAR FOR WHICH THE    1,030        

STATE BASIC AID PAYMENT WAS MADE TO THE DAY THE UNDERPAYMENT IS                 

COLLECTED.  THE COUNTY TREASURER SHALL PAY THE AMOUNT DEDUCTED     1,031        

AND WITHHELD TO THE TREASURER OF STATE, WHO SHALL CREDIT THE       1,032        

PAYMENT TO THE GENERAL REVENUE FUND.  IF THE STATE BASIC AID       1,033        

OVERPAYMENT AND INTEREST EXCEEDS THE AMOUNT OF THE TAX             1,034        

UNDERPAYMENT COLLECTED THAT IS OTHERWISE PAYABLE TO THE SCHOOL     1,035        

DISTRICT, THE COUNTY TREASURER SHALL COLLECT THE DIFFERENCE FROM   1,036        

THE SCHOOL DISTRICT OR DEDUCT AND WITHHOLD THE DIFFERENCE FROM     1,037        

THE NEXT DISTRIBUTION OR ADVANCE PAYMENT OF PROPERTY TAXES TO THE  1,038        

DISTRICT, AND SHALL PAY THAT DIFFERENCE TO THE TREASURER OF        1,039        

STATE, WHO SHALL CREDIT THE PAYMENT TO THE GENERAL REVENUE FUND.   1,040        

      IN the case of an overpayment of taxes, the auditor shall    1,043        

do any one of the following:                                                    

      (1)  Refund the full amount of the overpayment;              1,045        

      (2)  Refund a portion of the overpayment and prorate the     1,047        

remaining balance as a credit against future taxes that may be     1,048        

charged to the public utility;                                     1,049        

      (3)  Prorate the full amount of the overpayment as a credit  1,051        

against future taxes that may be charged to the public utility.    1,052        

      (C)(1)  The auditor shall have discretion as to which        1,054        

method to use and shall advise the public utility of his THE       1,055        

AUDITOR'S decision within sixty days after receipt of the          1,057        

notification.  The auditor shall make payment of any refund under  1,058        

division (B)(1) or (2) of this section within ninety days after    1,059        

receipt of the notification.  Except as otherwise provided in      1,060        

division (C)(2) of this section, any amount to be credited under   1,061        

                                                          26     


                                                                 
division (B)(2) or (3) of this section shall be applied to all or  1,062        

a part of the taxes otherwise due from the public utility on real  1,063        

and public utility property tax installment due dates after the    1,064        

date on which the notification was received, but shall not be      1,065        

spread over more than the next ten ensuing installment due dates.  1,066        

If any portion of the overpayment has not been refunded or         1,067        

credited by the tenth such tax installment due date after the      1,068        

date on which the notification was received, the auditor           1,069        

immediately shall refund that portion.                             1,070        

      (2)  The tax commissioner may certify to a county auditor,   1,072        

in writing, that a public utility is no longer required to file a  1,073        

report under section 5727.08 of the Revised Code.  Within ninety   1,074        

days of the date of such certification, the auditor shall refund   1,075        

to the utility, with applicable interest, the portion of any       1,076        

overpayment that has not been refunded or credited to the utility  1,077        

under this section.                                                1,078        

      (D)  The auditor shall add interest to the amount of any     1,080        

overpayment of taxes at the rate per calendar month, rounded to    1,081        

the nearest one-hundredth of one per cent, equal to one-twelfth    1,082        

of the rate per annum prescribed by section 5703.47 of the         1,083        

Revised Code.  The interest shall begin to accrue from the first   1,084        

day of the month following the date of the overpayment until the   1,085        

last day of the month preceding the date the overpayment or        1,086        

portion of the overpayment is refunded or credited, and shall be   1,087        

computed separately on each amount actually refunded or credited.  1,088        

In computing interest on credits, when an overpayment is credited  1,089        

against an installment of current taxes due from the utility       1,090        

pursuant to this section, the overpayment shall be considered to   1,091        

have been credited on the last date on which those taxes may be    1,092        

paid without penalty.                                              1,093        

      (E)  The refund and crediting of any overpayment, including  1,095        

interest, shall be paid from or credited against the fund or       1,096        

funds and the taxing districts to which the overpayment            1,097        

originally was paid, in proportion to the amount of the            1,098        

                                                          27     


                                                                 
overpayment received.  The auditor shall correct his THE           1,099        

AUDITOR'S tax lists in accordance with the refund or credit, and   1,101        

shall certify corrections in the tax duplicates to the county      1,102        

treasurer.  At each settlement affected by a refund or credit      1,103        

under this section, the amount of the refund or credit shall be    1,104        

deducted from the amount of any taxes or assessments               1,105        

distributable to the county or any taxing unit in the county that  1,106        

has received the benefit of the taxes or assessment previously     1,107        

overpaid, in proportion to the overpayment previously received.    1,108        

      Section 2.  That existing sections 3317.01, 3317.021,        1,110        

3317.025, 5709.61, 5727.08, 5727.47, and 5727.471 of the Revised   1,111        

Code are hereby repealed.                                          1,112        

      Section 3.  The amendment by this act of sections 5727.08    1,114        

and 5727.47 of the Revised Code applies to tax years 2001 and      1,115        

thereafter.