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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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(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
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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
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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
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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
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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
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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
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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.