As Introduced 1
123rd General Assembly 4
Regular Session S. B. No. 287 5
1999-2000 6
SENATOR BLESSING 8
_________________________________________________________________ 10
A B I L L
To amend sections 3709.28, 4933.33, 5703.052, 12
5705.34, 5727.11, 5727.111, 5727.33, and 5727.80 13
to 5727.95, to enact section 5727.811 of the 14
Revised Code, and to amend Sections 3 and 4 of
Am. Sub. S.B. 3 of the 123rd General Assembly and 15
Section 174 of H.B. 283 of the 123rd General 16
Assembly to reduce the assessment rate on 18
tangible personal property owned by natural gas
companies, to levy an excise tax on the 19
distribution of natural gas, and to modify the
determination of the true value of current gas 20
stored underground.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 22
Section 1. That sections 3709.28, 4933.33, 5703.052, 24
5705.34, 5727.11, 5727.111, 5727.33, 5727.80, 5727.81, 5727.82, 25
5727.83, 5727.84, 5727.85, 5727.86, 5727.87, 5727.88, 5727.89, 26
5727.90, 5727.91, 5727.92, 5727.93, 5727.94, and 5727.95 be 27
amended and section 5727.811 of the Revised Code be enacted to 28
read as follows: 29
Sec. 3709.28. The board of health of a general health 38
district shall, annually, on or before the first Monday of April, 39
adopt an itemized appropriation measure. Such appropriation 40
measure shall set forth the amounts for the current expenses of 41
such district for the fiscal year beginning on the first day of 42
January next ensuing. The appropriation measure, together with 43
an estimate in itemized form, of the several sources of revenue 44
2
available to the district, including the amount due from the 45
state for the next fiscal year as provided in section 3709.32 of 46
the Revised Code and the amount which the board anticipates will 47
be collected in fees during the next ensuing fiscal year, shall 48
be certified to the county auditor and by him THE COUNTY AUDITOR 49
submitted to the county budget commission which may reduce any 50
item in such appropriation measure but may not increase any item 51
or the aggregate of all items. 52
The aggregate appropriation, as fixed by the commission, 54
less the amounts available to the general health district from 55
the several sources of revenue, including the estimated balance 56
from the previous appropriation, shall be apportioned, by the 57
auditor among the townships and municipal corporations composing 58
the health district on the basis of taxable valuations in such 59
townships and municipal corporations. The auditor, when making 60
his THE AUDITOR'S semiannual apportionment of funds, shall retain 62
at each semiannual apportionment one-half of the amount 63
apportioned to each township and municipal corporation. Such 64
moneys and all other sources of revenue shall be placed in a 65
separate fund, to be known as the "district health fund." When a 66
general health district is composed of townships and municipal 67
corporations in two or more counties, the auditor making the 68
original apportionment shall certify to the auditor of each 69
county concerned the amount apportioned to each township and 70
municipal corporation in such county. Each auditor shall 71
withhold from the semiannual apportionment to each such township 72
or municipal corporation the amount certified, and shall pay the 73
amounts withheld to the custodian of the funds of the health 74
district concerned, to be credited to the district health fund. 75
IN MAKING THE APPORTIONMENT UNDER THIS PARAGRAPH FOR EACH YEAR 76
FROM 2002 THROUGH 2016, THE COUNTY AUDITOR SHALL ADD TO THE 77
TAXABLE VALUATION OF EACH TOWNSHIP AND MUNICPAL CORPORATION THE 78
TAX VALUE LOSS DETERMINED FOR EACH TOWNSHIP AND MUNICIPAL 79
CORPORATION UNDER DIVISIONS (D) AND (E) OF SECTION 5727.84 OF THE 80
3
REVISED CODE MULTIPLIED BY THE PERCENTAGE USED FOR THAT YEAR IN 81
DETERMINING REPLACEMENT PAYMENTS UNDER DIVISION (A)(1) OF SECTION 82
5727.86 OF THE REVISED CODE. THE TAX COMMISSIONER SHALL CERTIFY 83
TO THE COUNTY AUDITOR THE TAX VALUE LOSS FOR EACH TOWNSHIP AND 84
MUNICIPAL CORPORATION FOR WHICH THE AUDITOR MUST MAKE AN 85
APPORTIONMENT.
Subject to the aggregate amount as has been apportioned 87
among the townships and municipalities and as may become 88
available from the several sources of revenue, the board of 89
health may, by resolution, transfer funds from one item in their 90
appropriation to another item, reduce or increase any item, 91
create new items, and make additional appropriations or reduce 92
the total appropriation. Any such action shall forthwith be 93
certified by the secretary of the board of health to the auditor 94
for submission to and approval by the budget commission. 95
When any general health district has been united with or 97
has contracted with a city health district located therein, the 98
chief executive of the city shall, annually, on or before the 99
first day of June, certify to the county auditor the total amount 100
due for the ensuing fiscal year from the municipal corporations 101
and townships in the district as provided in the contract between 102
such city and the district advisory council of the original 103
general health district. After approval by the county budget 104
commission, the county auditor shall thereupon apportion the 105
amount certified to the townships and municipal corporations, and 106
shall withhold the sums apportioned as provided in this section. 107
Sec. 4933.33. (A) Annually, each electric distribution 116
company, as defined in section 5727.80 of the Revised Code, shall 118
cause to appear STATE on each customer bill, or shall distribute 119
to each of its customers, the following statement: 121
"Under state law, the amount you are being billed includes: 123
(1) Kilowatt-hour taxes that have been in effect since 126
2001 and are currently at $......... (The current dollar figure 127
of the kilowatt-hour taxes levied by section 5727.81 of the 128
4
Revised Code shall be placed in the blank); and 130
(2) Assessments to assist in the support of the operations 132
of the PUCO and the office of the consumers' counsel that have 133
been in effect since 1912 and 1977, respectively." 134
(B) ANNUALLY, EACH NATURAL GAS DISTRIBUTION COMPANY, AS 136
DEFINED IN SECTION 5727.80 OF THE REVISED CODE, SHALL STATE ON 137
EACH CUSTOMER BILL, OR SHALL DISTRIBUTE TO EACH OF ITS CUSTOMERS, 138
THE FOLLOWING STATEMENT: 139
"UNDER STATE LAW, THE AMOUNT YOU ARE BEING BILLED INCLUDES: 141
(1) NATURAL GAS DISTRIBUTION TAXES THAT HAVE BEEN IN 142
EFFECT SINCE 2001 AND ARE CURRENTLY AT $ ......... (THE CURRENT 143
DOLLAR FIGURE OF THE NATURAL GAS DISTRIBUTION EXCISE TAXES LEVIED 144
BY SECTION 5727.811 OF THE REVISED CODE SHALL BE PLACED IN THE 145
BLANK); AND
(2) ASSESSMENTS TO ASSIST IN THE SUPPORT OF THE OPERATIONS 147
OF THE PUCO AND THE OFFICE OF THE CONSUMERS' COUNSEL THAT HAVE 148
BEEN IN EFFECT SINCE 1912 AND 1977, RESPECTIVELY." 149
(C) Nothing in this section shall be construed to mean 151
that an electric distribution company OR A NATURAL GAS 152
DISTRIBUTION COMPANY subject to this section may not cause such 154
appearance or distribute such statement on a more frequent basis. 155
Sec. 5703.052. There is hereby created in the state 164
treasury the tax refund fund, from which refunds shall be paid 165
for taxes illegally or erroneously assessed or collected, or for 166
any other reason overpaid, that are levied by Chapter 4301., 167
4305., 5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747., 168
5748., 5749., or 5753., and sections 3737.71, 3905.35, 3905.36, 169
4303.33, 5707.03, 5725.18, 5727.28, and 5727.38, and 5727.81, AND 171
5727.811 of the Revised Code. Refunds for fees illegally or 173
erroneously assessed or collected, or for any other reason 174
overpaid, that are levied by sections 3734.90 to 3734.9014 of the 175
Revised Code also shall be paid from the fund. However, refunds 176
for taxes levied under section 5739.101 of the Revised Code shall 177
not be paid from the tax refund fund, but shall be paid as 178
5
provided in section 5739.104 of the Revised Code. 179
Upon certification by the tax commissioner to the treasurer 181
of state of a tax refund, fee refund, or tax credit due, or by 182
the superintendent of insurance of a domestic or foreign 183
insurance tax refund, the treasurer of state may place the amount 184
certified to the credit of the fund. The certified amount 185
transferred shall be derived from current receipts of the same 186
tax or the fee for which the refund arose or, in the case of a 187
tax credit refund, from the current receipts of the taxes levied 188
by sections 5739.02 and 5741.02 of the Revised Code. 189
If the tax refund arises from a tax payable to the general 191
revenue fund, and current receipts from that source are 192
inadequate to make the transfer of the amount so certified, the 193
treasurer of state may transfer such certified amount from 194
current receipts of the sales tax levied by section 5739.02 of 195
the Revised Code. 196
Sec. 5705.34. When the budget commission has completed its 205
work with respect to a tax budget, it shall certify its action to 206
the taxing authority, together with an estimate by the county 208
auditor of the rate of each tax necessary to be levied by the 209
taxing authority within its subdivision or taxing unit, and what
part thereof is in excess of, and what part within, the ten-mill 210
tax limitation. The certification shall also SHALL indicate the 211
date on which each tax levied by the taxing authority will 213
expire.
If a taxing authority levies a tax for a fixed sum of money 215
or to pay debt charges for the tax year for which the tax budget 216
is prepared, and the tax was levied in tax year 1998 TAXING 218
AUTHORITY QUALIFIES FOR A PAYMENT FROM THE SCHOOL DISTRICT 219
PROPERTY TAX REPLACEMENT FUND UNDER SECTION 5727.85 OF THE 220
REVISED CODE OR THE LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT 221
FUND UNDER SECTION 5727.86 OF THE REVISED CODE, the county 222
auditor, when estimating the rate at which the tax shall be 223
levied in the current year, shall estimate the rate necessary to 224
6
raise the required sum less the estimated amount of any payments
made for the tax year to a taxing unit under sections 5727.85 and 225
5727.86 of the Revised Code FOR FIXED SUM LEVIES. The estimated 226
rate shall be the rate of the levy that the budget commission 228
certifies with its action under this section. 229
Each taxing authority, by ordinance or resolution, shall 231
authorize the necessary tax levies and certify them to the county 232
auditor before the first day of October in each year, or at such 233
later date as is approved by the tax commissioner, except that 234
the certification by a board of education shall be made by the 235
first day of April or at such later date as is approved by the 236
commissioner, and except that a township board of park
commissioners that is appointed by the board of township trustees 237
and oversees a township park district that contains only 238
unincorporated territory shall authorize only those taxes 239
approved by, and only at the rate approved by, the board of 240
township trustees as required by division (C) of section 511.27
of the Revised Code. If the levying of a tax to be placed on the 241
duplicate of the current year is approved by the electors of the 242
subdivision under sections 5705.01 to 5705.47 of the Revised 243
Code; if the rate of a school district tax is increased due to 244
the repeal of a school district income tax and property tax rate 245
reduction at an election held pursuant to section 5748.04 of the
Revised Code; or if refunding bonds to refund all or a part of 246
the principal of bonds payable from a tax levy for the ensuing 247
fiscal year are issued or sold and in the process of delivery, 248
the budget commission shall reconsider and revise its action on 249
the budget of the subdivision or school library district for 250
whose benefit the tax is to be levied after the returns of such
election are fully canvassed, or after the issuance or sale of 251
such refunding bonds is certified to it. 252
Sec. 5727.11. (A) Except as otherwise provided in this 261
section, the true value of all taxable property required by 263
division (A)(2) or (3) of section 5727.06 of the Revised Code to
7
be assessed by the tax commissioner shall be determined by a 264
method of valuation using cost as capitalized on the public 265
utility's books and records less composite annual allowances as 266
prescribed by the commissioner. If the commissioner finds that 267
application of this method will not result in the determination 268
of true value of the public utility's taxable property, the 269
commissioner may use another method of valuation. 270
(B)(1) The true value of current gas stored underground is 272
the cost of that gas shown on the books and records of the public 273
utility on the thirty-first day of December of the preceding 275
year;
(2) FOR TAX YEAR 2001 AND THEREAFTER, THE TRUE VALUE OF 277
CURRENT GAS STORED UNDERGROUND IS THE COST OF THAT GAS AS 278
DETERMINED IN THE MANNER PRESCRIBED IN SECTION 5711.15 OF THE 279
REVISED CODE.
(C) The true value of noncurrent gas stored underground is 281
thirty-five per cent of the cost of that gas shown on the books 282
and records of the public utility on the thirty-first day of 283
December of the preceding year. 284
(D)(1) Except as provided in division (D)(2) of this 287
section, the true value of the production equipment of an 288
electric company and the true value of all taxable property of a 289
rural electric company is the equipment's or property's cost as 290
capitalized on the company's books and records less fifty per 291
cent of that cost as an allowance for depreciation and 292
obsolescence. 293
(2) The true value of the production equipment of an 295
electric company or rural electric company purchased, 296
transferred, or placed into service after the effective date of 298
this amendment is the purchase price of the equipment as 299
capitalized on the company's books and records less composite 300
annual allowances as prescribed by the tax commissioner. 301
(E) The true value of taxable property described in 303
division (A)(2) or (3) of section 5727.06 of the Revised Code 304
8
shall not include the allowance for funds used during 305
construction or interest during construction that has been 306
capitalized on the public utility's books and records as part of 308
the total cost of the taxable property. This division shall not 309
apply to the taxable property of an electric company or a rural 310
electric company, excluding transmission and distribution 311
property, first placed into service after December 31, 2000, or 312
to the taxable property a person purchases, which includes 313
transfers, if that property was used in business by the seller
prior to the purchase. 314
(F) The true value of watercraft owned or operated by a 316
water transportation company shall be determined by multiplying 318
the true value of the watercraft as determined under division (A) 319
of this section by a fraction, the numerator of which is the 321
number of revenue-earning miles traveled by the watercraft in the
waters of this state and the denominator of which is the number 322
of revenue-earning miles traveled by the watercraft in all 323
waters.
(G) The cost of property subject to a sale and leaseback 325
transaction is the cost of the property as capitalized on the 326
books and records of the public utility owning the property 328
immediately prior to the sale and leaseback transaction.
(H) The cost as capitalized on the books and records of a 330
public utility includes amounts capitalized that represent 331
regulatory assets, if such amounts previously were included on 332
the company's books and records as capitalized costs of taxable 333
personal property.
Sec. 5727.111. The taxable property of each public 342
utility, except a railroad company, and of each interexchange 343
telecommunications company shall be assessed at the following 344
percentages of true value: 345
(A) Fifty per cent in the case of the taxable transmission 347
and distribution property of a rural electric company, and 349
twenty-five per cent for all its other taxable property; 350
9
(B) In the case of a telephone or telegraph company, (F) 352
twenty-five per cent for taxable property first subject to 353
taxation in this state for tax year 1995 or thereafter, and 355
eighty-eight per cent for all other taxable property;
(C) Eighty-eight (1) EXCEPT AS PROVIDED IN DIVISION 358
(C)(2) OF THIS SECTION, EIGHTY-EIGHT per cent in the case of a
natural gas or pipe-line company; 360
(2) FOR TAX YEAR 2001 AND THEREAFTER, TWENTY-FIVE PER CENT 362
IN THE CASE OF A NATURAL GAS COMPANY. 363
(D) Eighty-eight per cent in the case of a PIPE-LINE, 365
water-works, or heating company; 367
(E)(1) Except as provided in division (E)(2) of this 370
section, eighty-eight per cent in the case of the taxable 371
transmission and distribution property of an electric company, 372
and twenty-five per cent for all its other taxable property; 373
(2) Property listed and assessed under divisions (B)(1) 375
and (2) of section 5711.22 of the Revised Code shall continue to 377
be assessed at one hundred per cent for production equipment and
eighty-eight per cent for all other taxable property until 378
January 1, 2002. 379
(F) (F) Twenty-five per cent in the case of an 381
interexchange telecommunications company; 382
(G) Twenty-five per cent in the case of a water 384
transportation company. 385
Sec. 5727.33. (A) For the purpose of computing the excise 394
tax imposed by section 5727.24 or 5727.30 of the Revised Code, 395
the tax commissioner shall ascertain and determine the entire 397
gross receipts actually received from all sources, excluding the 398
receipts described in divisions (B), (C), (D), and (F)(E) of this 399
section, of each combined electric and gas, pipe-line, 400
water-works, heating, and water transportation, AND COMBINED 402
company for business done within this state for the year ending 404
on the thirtieth day of April, of each natural gas company for 405
business done within this state quarterly or yearly as provided
10
in section 5727.25 of the Revised Code, and of each telegraph and 407
telephone company for business done within this state for the 408
year ending on the thirtieth day of June.
(B) In ascertaining and determining the gross receipts of 410
each of the companies named in this section, the commissioner 411
shall exclude all of the following: 412
(1) All receipts derived wholly from interstate business; 414
(2) All receipts derived wholly from business done for or 416
with the federal government; 417
(3) All RECEIPTS DERIVED WHOLLY FROM THE TRANSMISSION OR 420
DELIVERY OF ELECTRICITY TO OR FOR A RURAL ELECTRIC COMPANY, 421
PROVIDED THAT THE ELECTRICITY THAT HAS BEEN SO TRANSMITTED OR 422
DELIVERED IS FOR RESALE BY THE RURAL ELECTRIC COMPANY. THIS
DIVISION DOES NOT APPLY TO TAX YEARS 2002 AND THEREAFTER. 423
(4) All receipts from the sale of merchandise; 425
(4)(5) All receipts from sales to other public utilities, 427
except railroad, telegraph, and telephone companies, for resale, 428
provided the other public utility is required to file a statement 429
pursuant to section 5727.31 of the Revised Code. 430
(C) In ascertaining and determining the gross receipts of 432
a telephone company, the commissioner shall exclude all of the 434
following:
(1) Receipts of amounts billed on behalf of other 436
entities; 437
(2) Receipts from sales to other telephone companies for 439
resale, as defined in division (G) of section 5727.32 of the 440
Revised Code; 441
(3) Receipts from incoming or outgoing wide area 443
transmission service or wide area transmission type service, 445
including eight hundred or eight-hundred-type service; 446
(4) Receipts from private communications service as 448
described in division (AA)(2) of section 5739.01 of the Revised 450
Code;
(5) Receipts from sales to providers of telecommunications 453
11
service for resale, as defined in division (G) of section 5727.32 454
of the Revised Code. 455
(D) IN ASCERTAINING AND DETERMINING THE GROSS RECEIPTS OF 457
AN ELECTRIC COMPANY, THE COMMISSIONER SHALL EXCLUDE RECEIPTS 458
DERIVED FROM THE PROVISION OF ELECTRICITY AND OTHER SERVICES TO A 460
QUALIFIED FORMER OWNER OF THE PRODUCTION FACILITIES THAT 461
GENERATED THE ELECTRICITY FROM WHICH THOSE RECEIPTS WERE DERIVED. 462
THIS DIVISION DOES NOT APPLY TO TAX YEARS 2002 AND THEREAFTER. 463
AS USED IN THIS DIVISION, A "QUALIFIED FORMER OWNER" MEANS A 464
PERSON WHO MEETS BOTH OF THE FOLLOWING CONDITIONS: 465
(1) ON OR BEFORE OCTOBER 11, 1991, THE PERSON HAD SOLD TO 467
AN ELECTRIC COMPANY PART OF THE PRODUCTION FACILITY AT WHICH THE 468
ELECTRICITY IS GENERATED, AND, FOR AT LEAST TWENTY YEARS PRIOR TO 469
THAT SALE, THE FACILITY WAS USED TO GENERATE ELECTRICITY, BUT IT 470
WAS NOT OWNED IN WHOLE OR PART DURING THAT PERIOD BY AN ELECTRIC 471
COMPANY. 472
(2) AT THE TIME THE ELECTRIC COMPANY PROVIDED THE 474
ELECTRICITY OR OTHER SERVICES FOR WHICH THE EXCLUSION IS CLAIMED, 475
THE PERSON, OR A SUCCESSOR OR ASSIGN OF THE PERSON, OWNED NOT 476
LESS THAN A TWENTY PER CENT OWNERSHIP OF THE PRODUCTION FACILITY 477
AND THE RIGHTS TO NOT LESS THAN TWENTY PER CENT OF THE PRODUCTION 478
OF THAT FACILITY.
(E) In ascertaining and determining the gross receipts of 480
a natural gas company, the commissioner shall exclude receipts of 481
amounts billed on behalf of other entities AND RECEIPTS RECEIVED 483
TO PAY THE TAX IMPOSED BY SECTION 5727.811 OF THE REVISED CODE. 484
Transportation and billing and collection fees charged to other 486
entities shall be included in the gross receipts of a natural gas 487
company.
(F) In ascertaining and determining the gross receipts of 489
a combined electric and gas company subject to the tax imposed by 490
section 5727.30 of the Revised Code, the commissioner shall 492
exclude all receipts derived from operating as a natural gas 493
company that are subject to the tax imposed by section 5727.24 of 494
12
the Revised Code. 495
(G) Except as provided in division (H) of this section, 498
the amount ascertained by the commissioner under this section, 499
less a deduction of twenty-five thousand dollars, shall be the 500
gross receipts of such companies for business done within this 501
state for that year.
(H) The amount ascertained by the commissioner under this 503
section, less the following deduction, shall be the gross 504
receipts of a natural gas company or combined electric and gas 506
company for business done within this state:
(1) For a natural gas company that files quarterly returns 508
of the tax imposed by section 5727.24 of the Revised Code, six 509
thousand two hundred fifty dollars for each quarterly return; 511
(2) For a natural gas company that files an annual return 513
of the tax imposed by section 5727.24 of the Revised Code, 514
twenty-five thousand dollars for each annual return; 516
(3) For a combined electric and gas company, twenty-five 518
thousand dollars on the annual statement filed under section 519
5727.31 of the Revised Code. A combined electric and gas company 520
shall not be entitled to a deduction in computing gross receipts 521
subject to the tax imposed by section 5727.24 of the Revised 522
Code.
Sec. 5727.80. As used in sections 5727.80 to 5727.95 of 531
the Revised Code: 533
(A) "Electric distribution company" means either of the 536
following:
(1) A person who distributes electricity through a meter 538
of an end user in this state; 539
(2) The end user of electricity in this state, if the end 542
user obtains electricity that is not distributed or transmitted 543
to the end user by an electric distribution company that is 544
required to remit the tax imposed by section 5727.81 of the 545
Revised Code. "Electric distribution company" does not include 547
the end user of electricity in this state who self-generates 548
13
electricity that is used directly by that end user on the same 549
site that the electricity is generated. 550
(B) "Kilowatt hour" means one thousand watt hours of 552
electricity. 553
(C) "Meter FOR AN ELECTRIC DISTRIBUTION COMPANY, "METER of 555
an end user in this state" means the last meter used to measure 557
the kilowatt hours distributed by an electric distribution 558
company to a location in this state, the last meter located 559
outside of this state that is used to measure the kilowatt hours 560
consumed at a location in this state, or, if no meter is used, 561
the estimated kilowatt hours distributed to an unmetered location 562
in this state.
(D) "Person" has the same meaning as in section 5701.01 of 564
the Revised Code, but also includes a political subdivision of 565
the state. 566
(E) "Municipal electric utility" means a municipal 569
corporation that owns or operates a system for the distribution 570
of electricity.
(F) "Qualified end user" means an end user of electricity 572
that uses more than three million kilowatt hours of electricity 574
at one manufacturing location in this state for a calendar day 575
for use in a manufacturing process that features an
electrochemical reaction in which electrons from direct current 577
electricity remain a part of the product being manufactured. 578
(G) "Self-assessing purchaser" means a purchaser that 580
meets all the requirements of, and pays the excise tax in 581
accordance with, division (C) of section 5727.81 of the Revised 582
Code.
(H) "Six month revenue differential for self-assessing 584
purchasers" means thirty-one million six hundred fifty thousand 585
dollars less the amount paid under division (C)(1)(a) of section 586
5727.81 of the Revised Code by all self-assessing purchasers for 587
the six-month period ending in the month prior to the date of the 588
calculations required under divisions (C)(1)(b) and (c) of 589
14
section 5727.81 of the Revised Code. 590
(I) "Twelve month revenue differential for self-assessing 592
purchasers" means sixty-three million three hundred thousand 593
dollars less the amount paid under division (C)(1)(a) of section 594
5727.81 of the Revised Code by all self-assessing purchasers for 595
the twelve-month period ending in the month prior to the date of 596
the calculation required under division (C)(1)(d) of section 597
5727.81 of the Revised Code. 598
(J) "NATURAL GAS DISTRIBUTION COMPANY" MEANS A PERSON 600
SUBJECT TO REGULATION BY THE PUBLIC UTILITIES COMMISSION WHO 601
DISTRIBUTES NATURAL GAS THROUGH A METER OF AN END USER IN THIS 602
STATE, INCLUDING A COMBINED COMPANY, AS DEFINED IN SECTION 603
5727.01 OF THE REVISED CODE, THAT OPERATES AS A NATURAL GAS 604
DISTRIBUTION COMPANY. "NATURAL GAS DISTRIBUTION COMPANY" DOES 605
NOT INCLUDE A MUNICIPAL CORPORATION OR A NATURAL GAS COMPANY 606
OWNED OR OPERATED BY A MUNICIPAL CORPORATION THAT DISTRIBUTES GAS 607
THROUGH THE METER OF AN END USER IN THIS STATE, OR A PIPE-LINE 608
COMPANY, AS DEFINED IN SECTION 5727.01 OF THE REVISED CODE, 609
NOTWITHSTANDING THE FACT THAT A PIPE-LINE COMPANY MAY TRANSPORT 611
NATURAL GAS TO FACILITIES OWNED BY A CONSUMER OF NATURAL GAS IN
THIS STATE, INCLUDING A METER OF AN END USER IN THIS STATE. 613
(K) "MCF" MEANS ONE THOUSAND CUBIC FEET. 615
(L) FOR A NATURAL GAS DISTRIBUTION COMPANY, "METER OF AN 617
END USER IN THIS STATE" MEANS THE LAST METER USED TO MEASURE THE 618
MCF OF NATURAL GAS DISTRIBUTED BY A NATURAL GAS DISTRIBUTION 619
COMPANY TO A LOCATION IN THIS STATE, THE LAST METER LOCATED 621
OUTSIDE OF THIS STATE THAT IS USED TO MEASURE THE NATURAL GAS 622
CONSUMED AT A LOCATION IN THIS STATE, OR, IF NO METER IS USED, 623
THE ESTIMATED MCF OF NATURAL GAS DISTRIBUTED TO AN UNMETERED 624
LOCATION IN THIS STATE.
(M) "FLEX CUSTOMER" MEANS AN INDUSTRIAL OR COMMERCIAL END 626
USER OF NATURAL GAS THAT PURCHASES NATURAL GAS DISTRIBUTION 627
SERVICES FROM A NATURAL GAS DISTRIBUTION COMPANY AND WHOSE RATES 628
OR SURCHARGES ARE DISCOUNTED, BASED ON A MUTUAL AGREEMENT BETWEEN 629
15
THE NATURAL GAS DISTRIBUTION COMPANY AND THE CUSTOMER. 630
Sec. 5727.81. (A) For the purpose of raising revenue for 640
public education and state and local government operations, an 641
excise tax is hereby levied and imposed on an electric 642
distribution company for all electricity distributed by such 643
company that has May 1, 2001, as part of its measurement period, 644
at the following rates per kilowatt hour of electricity 645
distributed in a thirty-day period by the company through a meter 646
of an end user in this state:
KILOWATT HOURS DISTRIBUTED TO RATE PER 649
AN END USER KILOWATT HOUR 650
For the first 2,000 $.00465 651
For the next 2,001 to 15,000 $.00419 652
For 15,001 and above $.00363 653
The electric distribution company shall base the monthly 656
tax on the kilowatt hours of electricity distributed to an end 657
user through the meter of the end user that is not measured for a 658
thirty-day period by dividing the days in the measurement period 660
into the total kilowatt hours measured during the measurement 661
period to obtain a daily average usage. The tax shall be 662
determined by obtaining the sum of divisions (A)(1), (2), and (3) 663
of this section and multiplying that amount by the number of days
in the measurement period: 664
(1) Multiplying $0.00465 per kilowatt hour for the first 666
sixty-seven kilowatt hours distributed using a daily average; 667
(2) Multiplying $0.00419 for the next sixty-eight to five 669
hundred kilowatt hours distributed using a daily average; 670
(3) Multiplying $0.00363 for the remaining kilowatt hours 672
distributed using a daily average. 673
Except as provided in division (C) of this section, the 675
electric distribution company shall pay the tax to the treasurer 676
of state in accordance with section 5727.82 of the Revised Code. 678
Only the distribution of electricity through a meter of an 681
end user in this state shall be used by the electric distribution 682
16
company to compute the amount or estimated amount of tax due. In 683
the event a meter is not actually read for a measurement period, 684
the estimated kilowatt hours distributed by an electric 685
distribution company to collect its distribution charges may be 686
used.
(B) Except as provided in division (C) of this section, 688
each electric distribution company shall pay the tax imposed by 689
this section in all of the following circumstances: 690
(1) The electricity is distributed by the company through 692
a meter of an end user in this state; 693
(2) The company is distributing electricity through a 695
meter located in another state, but the electricity is consumed 696
in this state in the manner prescribed by the tax commissioner; 698
(3) The company is distributing electricity in this state 700
without the use of a meter, but the electricity is consumed in 701
this state as estimated and in the manner prescribed by the tax 703
commissioner.
(C)(1)(a) A commercial or industrial purchaser that 706
receives electricity through a meter of an end user in this state 707
and consumes, over the course of the previous calendar year, more
than one hundred twenty million kilowatt hours of electricity may 708
elect to self-assess the excise tax imposed by this section at 709
the rate of $.00075 per kilowatt hour and four per cent of the 710
total price of electricity delivered through a meter of an end 712
user in this state. Payment of the tax shall be made directly to 713
the treasurer of state in accordance with divisions (A)(3)(4) and 714
(4)(5) of section 5727.82 of the Revised Code or, if the electric 716
distribution company serving the self-assessing purchaser is a 717
municipal electric utility and the purchaser is within the 718
municipal corporation's corporate limits, to such municipal 719
corporation's general fund in accordance with division (A)(2)(3) 721
of section 5727.82 of the Revised Code, and upon paying in this 722
manner, the self-assessing purchaser shall not be required to pay 723
the excise tax to the electric distribution company from which 724
17
its electricity is delivered. 725
(b) On or before December 10, 2001, the tax commissioner 727
shall calculate the six month revenue differential for 728
self-assessing purchasers. If the six month revenue differential 729
is greater than five hundred thousand dollars, the tax 730
commissioner shall increase the percentage of total price tax 731
rate to be charged for the six-month period beginning in the 732
month following that in which the calculation is done. The new 733
tax rate shall be the rate in effect during the current period 734
multiplied by the sum of one plus the product of (i) a fraction, 735
the numerator of which is the six month revenue differential 736
multiplied by two and the denominator of which is the amount paid 737
during the period by all self-assessing purchasers on the 738
percentage of total price basis and (ii) a fraction, the 739
numerator of which is total kilowatt hours consumed during the 740
period by self-assessing purchasers and the denominator of which 741
is eleven billion twenty-five million.
If the six month revenue differential is less than negative 743
five hundred thousand dollars, the tax commissioner shall 744
decrease the percentage of total price tax rate to be charged for 745
the six-month period beginning in the month following that in 746
which the calculation is made. The new tax rate shall be the 747
rate in effect during the current period multiplied by the sum of 748
one plus the product of (i) a fraction, the numerator of which is 749
the six month revenue differential multiplied by two and the 750
denominator of which is the amount paid during the period by all 751
self-assessing purchasers on the percentage of total price basis 752
and (ii) a fraction, the numerator of which is eleven billion 753
twenty-five million and the denominator of which is total 754
kilowatt hours consumed during the period by self-assessing 755
purchasers.
(c) On or before June 10, 2002, the tax commissioner shall 757
calculate the six month revenue differential for self-assessing 758
purchasers. If the six month revenue differential is greater 759
18
than five hundred thousand dollars, the tax commissioner shall 760
increase the percentage of total price tax rate to be charged for 761
the twelve-month period beginning in the month following that in 762
which the calculation is made. The new tax rate shall be the 763
rate in effect during the current period multiplied by the sum of 764
one plus the product of (i) a fraction, the numerator of which is 765
the six month revenue differential and the denominator of which 766
is the amount paid during the period by all self-assessing 767
purchasers on the percentage of total price basis and (ii) a 768
fraction, the numerator of which is total kilowatt hours consumed 769
during the period by self-assessing purchasers and the 770
denominator of which is eleven billion twenty-five million. 771
If the six month revenue deferential is less than negative 773
five hundred thousand dollars, the tax commissioner shall 774
decrease the percentage of total price tax rate to be charged for 775
the twelve-month period beginning in the month following that in 776
which the calculation is made. The new tax rate shall be the 777
rate in effect during the current period multiplied by the sum of 778
one plus the product of (i) a fraction, the numerator of which is 779
the six month revenue differential and the denominator of which 780
is the amount paid during the period by all self-assessing 781
purchasers on the percentage of total price basis and (ii) a 782
fraction, the numerator of which is eleven billion twenty-five 783
million and the denominator of which is total kilowatt hours 784
consumed during the period by self-assessing purchasers. 785
(d) On or before June 10, 2003, 2004, 2005, 2006, and 787
2007, the tax commissioner shall calculate the twelve month 788
revenue differential for self-assessing purchasers. If the 789
twelve month revenue differential is greater than one million 790
dollars, the tax commissioner shall increase the percentage of 791
total price tax rate to be charged for the twelve-month period 792
beginning in the month following that in which the calculation is 793
made, except that the rate calculated in 2007 shall become the 794
permanent tax rate. In each year, the new tax rate shall be the 795
19
rate in effect during the current period multiplied by the sum of 796
one plus a fraction, the numerator of which is the twelve month 797
revenue differential and the denominator of which is the amount 798
paid during the period by all self-assessing purchasers on the 799
percentage of total price basis. 800
If the revenue differential is less than negative one 802
million dollars, the tax commissioner shall decrease the 803
percentage of total price tax rate to be charged for the 804
twelve-month period beginning in the month following that in 805
which the calculation is made, except that the rate calculated in 806
2007 shall become the permanent tax rate. In each year, the new 807
tax rate shall be the rate in effect during the current period 808
multiplied by the sum of one plus a fraction, the numerator of 809
which is the twelve month revenue differential and the 810
denominator of which is the amount paid during the period by all 811
self-assessing purchasers on the percentage of price basis. 812
(2) Application for registration as a self-assessing 814
purchaser shall be made on a form prescribed by the tax 815
commissioner. At the time of making the application and by the 817
first day of May of each year, excluding May 1, 2000, a 818
self-assessing purchaser shall pay a fee of five hundred dollars 819
to the treasurer of state for deposit to the kilowatt hour excise 820
tax administration fund, which is hereby created in the state 821
treasury. Money in the fund shall be used to defray the tax 822
commissioner's cost in administering the tax owed under section 823
5727.81 of the Revised Code by self-assessing purchasers. After 824
the application is approved by the tax commissioner, the 825
registration shall remain in effect until canceled by the 826
registrant upon written notification to the commissioner of the 827
election to pay the tax in accordance with division (A) of this 828
section, or by the tax commissioner for not paying the tax or fee 829
under division (C) of this section, or meeting the qualifications 830
in division (C)(1) of this section. The tax commissioner shall 831
give written notice to the electric distribution company from 833
20
which electricity is delivered to a self-assessing purchaser of 834
the purchaser's self-assessing status, and the electric 835
distribution company is relieved of the obligation to pay the tax 837
imposed by division (A) of this section for electricity 838
distributed to that self-assessing purchaser until it is notified 839
by the tax commissioner that the self-assessing purchaser's 840
registration is canceled. Within fifteen days of notification of 841
the canceled registration, the electric distribution company 842
shall be responsible for payment of the tax imposed by division 843
(A) of this section on electricity distributed to a purchaser 844
that is no longer registered as a self-assessing purchaser. A 846
self-assessing purchaser with a canceled registration must file a 847
report and remit the tax imposed by division (A) of this section 848
on all electricity it receives for any measurement period prior 849
to the tax being reported and paid by the electric distribution 851
company. A self-assessing purchaser whose registration is 852
canceled by the tax commissioner is not eligible to register as a 853
self-assessing purchaser for two years after the registration is
canceled. 854
(D) The tax imposed by this section does not apply to the 857
distribution of any kilowatt hours of electricity to the federal 858
government, to an end user located at a federal facility that 859
uses electricity for the enrichment of uranium, or to an end user 860
for any day the end user is a qualified end user. The exemption 861
under this division for a qualified end user only applies to the 862
manufacturing location where the qualified end user uses more 863
than three million kilowatt hours per day.
Sec. 5727.811. (A) FOR THE PURPOSE OF RAISING REVENUE FOR 865
PUBLIC EDUCATION AND STATE AND LOCAL GOVERNMENT OPERATIONS, AN 866
EXCISE TAX IS HEREBY LEVIED ON EVERY NATURAL GAS DISTRIBUTION 868
COMPANY FOR ALL NATURAL GAS VOLUMES BILLED BY, OR ON BEHALF OF, 869
THE COMPANY ON AND AFTER JULY 1, 2001. EXCEPT AS PROVIDED IN
DIVISION (C) OF THIS SECTION, THE TAX SHALL BE LEVIED AT THE 870
FOLLOWING RATES PER MCF OF NATURAL GAS DISTRIBUTED BY THE COMPANY 873
21
THROUGH A METER OF AN END USER IN THIS STATE:
MCF DISTRIBUTED TO AN END USER RATE PER MCF 877
FOR THE FIRST 100 MCF PER MONTH $.1593 878
FOR THE NEXT 101 TO 2000 MCF PER MONTH $.0877 880
FOR 2001 AND ABOVE MCF PER MONTH $.0411 881
(B) A NATURAL GAS DISTRIBUTION COMPANY SHALL BASE THE TAX 884
ON THE MCF OF NATURAL GAS DISTRIBUTED TO AN END USER THROUGH THE 885
METER OF THE END USER IN THIS STATE THAT IS ESTIMATED TO BE 886
CONSUMED BY THE END USER AS REFLECTED ON THE END USER'S CUSTOMER 888
STATEMENT FROM THE NATURAL GAS DISTRIBUTION COMPANY. THE NATURAL 889
GAS DISTRIBUTION COMPANY SHALL PAY THE TAX LEVIED BY THIS SECTION 890
TO THE TREASURER OF STATE IN ACCORDANCE WITH SECTION 5727.82 OF 891
THE REVISED CODE.
(C) A NATURAL GAS DISTRIBUTION COMPANY SHALL PAY THE TAX 893
IMPOSED BY THIS SECTION AT THE RATE OF $.02 PER MCF OF NATURAL 894
GAS DISTRIBUTED BY THE COMPANY THROUGH THE METER OF A FLEX 896
CUSTOMER. THE NATURAL GAS DISTRIBUTION COMPANY CORRESPONDINGLY
SHALL REDUCE THE PER MCF RATE THAT IT CHARGES THE FLEX CUSTOMER 897
FOR NATURAL GAS DISTRIBUTION SERVICES BY $.02 PER MCF OF NATURAL 898
GAS DISTRIBUTED TO THE FLEX CUSTOMER. 899
(D) EXCEPT AS PROVIDED IN DIVISION (E) OF THIS SECTION, 901
EACH NATURAL GAS DISTRIBUTION COMPANY SHALL PAY THE TAX IMPOSED 902
BY THIS SECTION IN ALL OF THE FOLLOWING CIRCUMSTANCES: 903
(1) THE NATURAL GAS IS DISTRIBUTED BY THE COMPANY THROUGH 905
A METER OF AN END USER IN THIS STATE; 906
(2) THE NATURAL GAS DISTRIBUTION COMPANY IS DISTRIBUTING 908
NATURAL GAS THROUGH A METER LOCATED IN ANOTHER STATE, BUT THE 909
NATURAL GAS IS CONSUMED IN THIS STATE IN THE MANNER PRESCRIBED BY 910
THE TAX COMMISSIONER; 911
(3) THE NATURAL GAS DISTRIBUTION COMPANY IS DISTRIBUTING 913
NATURAL GAS IN THIS STATE WITHOUT THE USE OF A METER, BUT THE 914
NATURAL GAS IS CONSUMED IN THIS STATE AS ESTIMATED AND IN THE 915
MANNER PRESCRIBED BY THE TAX COMMISSIONER. 916
(E) THE TAX LEVIED BY THIS SECTION DOES NOT APPLY TO THE 918
22
DISTRIBUTION OF NATURAL GAS TO THE FEDERAL GOVERNMENT, OR ANY 919
NATURAL GAS PRODUCED BY AN END USER IN THIS STATE THAT IS 920
CONSUMED BY THAT END USER OR ITS AFFILIATES AND IS NOT 921
DISTRIBUTED THROUGH THE FACILITIES OF A NATURAL GAS COMPANY. 922
Sec. 5727.82. (A)(1) Except as provided in divisions 932
(A)(2)(3) and (D) of this section, by the twentieth day of each 933
month, each electric distribution company required to pay the tax 934
imposed by section 5727.81 of the Revised Code shall file with 936
the treasurer of state a return as prescribed by the tax 937
commissioner and shall make payment of the full amount of tax due 939
for the preceding month. The first payment of this tax shall be
made on or before June 20, 2001. 940
(2) BY THE TWENTIETH DAY OF MAY, AUGUST, NOVEMBER, AND 943
FEBRUARY, EACH NATURAL GAS DISTRIBUTION COMPANY REQUIRED TO PAY 944
THE TAX IMPOSED BY SECTION 5727.811 OF THE REVISED CODE SHALL 945
FILE WITH THE TREASURER OF STATE A RETURN AS PRESCRIBED BY THE 946
TAX COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF TAX 947
DUE FOR THE PRECEDING QUARTER. THE FIRST PAYMENT OF THIS TAX
SHALL BE MADE ON OR BEFORE NOVEMBER 20, 2001, FOR THE QUARTER 948
ENDING SEPTEMBER 30, 2001. 949
(3) If the electric distribution company required to pay 951
the tax imposed by section 5727.81 of the Revised Code is a 954
municipal electric utility, it may retain in its general fund 955
that portion of the tax on the kilowatt hours distributed to end 956
users located within the boundaries of the municipal corporation. 957
However, the municipal electric utility shall make payment in 958
accordance with division (A)(1) of this section of the tax due on 960
the kilowatt hours distributed to end users located outside the 961
boundaries of the municipal corporation. 962
(3)(4) By the twentieth day of each month, each 965
self-assessing purchaser that under division (C) of section 966
5727.81 of the Revised Code pays directly to the treasurer of 968
state the tax imposed by section 5727.81 of the Revised Code 969
shall file with the treasurer of state a return as prescribed by 970
23
the tax commissioner and shall make payment of the full amount of 971
the tax due for the preceding month. 972
(4)(5) As prescribed by the tax commissioner, the A return 975
shall be signed by the company or self-assessing purchaser 976
required to file it, or an authorized employee, officer, or agent 977
of the company or purchaser. The treasurer of state shall mark 978
on the return the date it was received and indicate payment or 979
nonpayment of the tax shown to be due on the return. The 980
treasurer of state immediately shall transmit all returns to the 981
tax commissioner. The return shall be deemed filed when received 982
by the treasurer of state.
(B) Any NATURAL GAS DISTRIBUTION COMPANY, electric 984
distribution company, or self-assessing purchaser required by 986
this section to file a return who fails to file it and pay the 987
tax within the period prescribed shall pay an additional charge 988
of fifty dollars or ten per cent of the tax required to be paid 989
for the reporting period, whichever is greater. The tax 990
commissioner may collect the additional charge by assessment 991
pursuant to section 5727.89 of the Revised Code. The 993
commissioner may abate all or a portion of the additional charge 994
and may adopt rules governing such abatements. 995
(C) If any tax due is not paid timely in accordance with 998
this section, the NATURAL GAS DISTRIBUTION COMPANY, electric 999
distribution company, or self-assessing purchaser liable for the 1,000
tax shall pay interest, calculated at the rate per annum 1,002
prescribed by section 5703.47 of the Revised Code, from the date 1,004
the tax payment was due to the date of payment or to the date an 1,005
assessment is issued, whichever occurs first. Interest shall be 1,006
paid in the same manner as the tax, and the commissioner may 1,007
collect the interest by assessment pursuant to section 5727.89 of 1,009
the Revised Code.
(D) Not later than the tenth day of each month, a 1,011
qualified end user shall report in writing to the electric 1,012
distribution company that distributes electricity to the end user 1,013
24
the kilowatt hours that were consumed as a qualified end user for 1,014
the prior month and the number of days, if any, on which the end 1,015
user was not a qualified end user. For each calendar day the end 1,016
user was not a qualified end user, the end user shall report in 1,017
writing to the electric distribution company the number of 1,018
kilowatt hours used on that day, and the electric distribution 1,019
company shall pay the tax imposed under section 5727.81 of the 1,020
Revised Code on each kilowatt hour that was not distributed to a 1,021
qualified end user. The electric distribution company may rely 1,022
in good faith on a qualified end user's report filed under this 1,023
division. If it is determined that the end user was not a 1,024
qualified end user for any calendar day or the quantity of 1,025
electricity used by the qualified end user was overstated, the 1,026
tax commissioner shall assess and collect any tax imposed under 1,027
section 5727.81 of the Revised Code directly from the qualified 1,029
end user. As requested by the commissioner, each end user
reporting to an electric distribution company that it is a 1,030
qualified end user shall provide documentation to the 1,031
commissioner that establishes the volume of electricity consumed 1,033
daily by the qualified end user. 1,034
Sec. 5727.83. (A) An A NATURAL GAS DISTRIBUTION COMPANY, 1,043
AN electric distribution company, or A self-assessing purchaser 1,045
shall remit each monthly tax payment by electronic funds transfer 1,047
as prescribed by divisions (B) and (C) of this section. 1,048
The tax commissioner shall notify each NATURAL GAS 1,050
DISTRIBUTION COMPANY, electric distribution company, and 1,052
self-assessing purchaser of the obligation to remit taxes by 1,053
electronic funds transfer, shall maintain an updated list of 1,054
those companies and purchasers, and shall timely certify to the 1,056
treasurer of state the list and any additions thereto or 1,057
deletions therefrom. Failure by the tax commissioner to notify a 1,058
company or self-assessing purchaser subject to this section to 1,059
remit taxes by electronic funds transfer does not relieve the 1,060
company or self-assessing purchaser of its obligation to remit
25
taxes in that manner. 1,061
(B) An A NATURAL GAS DISTRIBUTION COMPANY, AN electric 1,063
distribution company, or A self-assessing purchaser required by 1,065
this section to remit payments by electronic funds transfer shall 1,067
remit such payments to the treasurer of state in the manner 1,068
prescribed by rules adopted by the treasurer of state under 1,069
section 113.061 of the Revised Code, and on or before the dates 1,070
specified under section 5727.82 of the Revised Code. The payment
of taxes by electronic funds transfer does not affect a company's 1,072
or self-assessing purchaser's obligation to file the monthly A 1,073
return as required under section 5727.82 of the Revised Code. 1,074
(C) An A NATURAL GAS DISTRIBUTION COMPANY, AN electric 1,076
distribution company, or A self-assessing purchaser required by 1,078
this section to remit taxes by electronic funds transfer may
apply to the treasurer of state in the manner prescribed by the 1,080
treasurer of state to be excused from that requirement. The 1,081
treasurer of state may excuse the company or self-assessing
purchaser from remittance by electronic funds transfer for good 1,083
cause shown for the period of time requested by the company or 1,084
self-assessing purchaser or for a portion of that period. The 1,085
treasurer of state shall notify the tax commissioner and the 1,087
company or self-assessing purchaser of the treasurer of state's
decision as soon as is practicable. 1,088
(D) If an A NATURAL GAS DISTRIBUTION COMPANY, AN electric 1,090
distribution company, or A self-assessing purchaser required by 1,092
this section to remit taxes by electronic funds transfer remits 1,094
those taxes by some means other than by electronic funds transfer 1,095
as prescribed by this section and the rules adopted by the 1,096
treasurer of state, and the treasurer of state determines that 1,097
such failure was not due to reasonable cause or was due to 1,098
willful neglect, the treasurer of state shall notify the tax 1,099
commissioner of the failure to remit by electronic funds transfer 1,100
and shall provide the commissioner with any information used in 1,101
making that determination. The tax commissioner may collect an 1,102
26
additional charge by assessment in the manner prescribed by 1,103
section 5727.89 of the Revised Code. The additional charge shall 1,104
equal five per cent of the amount of the taxes required to be 1,105
paid by electronic funds transfer, but shall not exceed five 1,106
thousand dollars. Any additional charge assessed under this 1,107
section is in addition to any other penalty or charge imposed 1,108
under this chapter, and shall be considered as revenue arising 1,109
from the tax imposed under this chapter. The tax commissioner 1,110
may abate all or a portion of such a charge and may adopt rules 1,111
governing such abatements.
No additional charge shall be assessed under this division 1,113
against A NATURAL GAS DISTRIBUTION COMPANY, an electric 1,114
distribution company, or A self-assessing purchaser that has been 1,116
notified of its obligation to remit taxes under this section and 1,118
that remits its first two tax payments after such notification by 1,119
some means other than electronic funds transfer. The additional 1,120
charge may be assessed upon the remittance of any subsequent tax 1,121
payment that the company or purchaser remits by some means other 1,123
than electronic funds transfer.
Sec. 5727.84. (A) As used in this section and sections 1,132
5727.85, 5727.86, and 5727.87 of the Revised Code: 1,134
(1) "School district" means a city, local, or exempted 1,136
village school district. 1,137
(2) "Joint vocational school district" means a joint 1,139
vocational school district created under section 3311.16 of the 1,140
Revised Code, and includes a cooperative education school 1,142
district created under section 3311.52 or 3311.521 of the Revised 1,143
Code and a county school financing district created under section 1,144
3311.50 of the Revised Code. 1,145
(3) "Local taxing unit" means a subdivision or taxing 1,147
unit, as defined in section 5705.01 of the Revised Code, a park 1,148
district created under Chapter 1545. of the Revised Code, or a 1,150
township park district established under section 511.23 of the
Revised Code, but excludes school districts and joint vocational 1,152
27
school districts.
(4) "State education aid" means the sum of the state basic 1,154
aid and state special education aid amounts computed for a school 1,155
district under divisions (A) and (B)(C) of section 3317.022 of 1,156
the Revised Code. 1,158
(5) "State education aid offset" means the amount 1,160
certified for each school district under division (A)(1) of 1,161
section 5727.85 of the Revised Code. 1,162
(6) "Adjusted total taxable value" has the same meaning as 1,164
in section 3317.02 of the Revised Code. 1,165
(7) "ELECTRIC COMPANY TAX VALUE LOSS" MEANS THE AMOUNT 1,167
DETERMINED UNDER DIVISION (D) OF THIS SECTION. 1,168
(8) "NATURAL GAS COMPANY TAX VALUE LOSS" MEANS THE AMOUNT 1,170
DETERMINED UNDER DIVISION (E) OF THIS SECTION. 1,171
(9) "Tax value loss" means the amount determined under 1,173
division (C) of this section SUM OF THE ELECTRIC COMPANY TAX 1,174
VALUE LOSS AND THE NATURAL GAS COMPANY TAX VALUE LOSS. 1,175
(8)(10) "Fixed-rate levy" means any tax levied on property 1,177
other than a fixed-sum levy. 1,179
(9)(11) "Fixed-rate levy loss" means the amount determined 1,181
under division (D)(G) of this section. 1,183
(10)(12) "Fixed-sum levy" means a tax levied on property 1,185
at whatever rate is required to produce a specified amount of tax 1,187
money or to pay debt charges, and includes school district 1,188
emergency levies imposed pursuant to section 5705.194 of the 1,189
Revised Code.
(11)(13) "Fixed-sum levy loss" means the amount determined 1,191
under division (E)(H) of this section. 1,193
(12)(14) "Consumer price index" means the consumer price 1,195
index (all items, all urban consumers) prepared by the bureau of 1,197
labor statistics of the United States department of labor. 1,198
(B) All money arising from the tax imposed by section 1,200
5727.81 of the Revised Code shall be credited as follows: 1,201
(1) Fifty-nine and nine hundred seventy-six 1,203
28
one-thousandths per cent, plus an amount equal to SEVENTY PER 1,204
CENT OF the TOTAL state education aid offset, shall be credited 1,206
to the general revenue fund.
(2) Two and six hundred forty-six one-thousandths per cent 1,208
shall be credited to the local government fund, for distribution 1,209
in accordance with section 5747.50 of the Revised Code. 1,210
(3) Three hundred seventy-eight one-thousandths per cent 1,212
shall be credited to the local government revenue assistance 1,213
fund, for distribution in accordance with section 5747.61 of the 1,214
Revised Code. 1,215
(4) Twenty-five and nine-tenths per cent, less an amount 1,217
equal to SEVENTY PER CENT OF the TOTAL state education aid 1,218
offset, shall be credited to the school district property tax 1,220
replacement fund, which is hereby created in the state treasury 1,221
for the purpose of making the payments described in section 1,222
5727.85 of the Revised Code.
(5) Eleven and one-tenth per cent shall be credited to the 1,224
local government property tax replacement fund, which is hereby 1,225
created in the state treasury for the purpose of making the 1,226
payments described in section 5727.86 of the Revised Code. 1,227
(6) Beginning in the fiscal year in which payments are 1,229
required to be made under sections 5727.85 and 5727.86 of the 1,230
Revised Code, if the revenue arising from the tax levied by 1,231
section 5727.81 of the Revised Code is less than five hundred 1,233
fifty-two million dollars, the amount credited to the general 1,234
revenue fund under division (B)(1) of this section shall be 1,235
reduced by the amount necessary to credit to each of the funds in 1,236
divisions (B)(2), (3), (4), and (5) of this section the amount it 1,237
would have received if the tax did raise five hundred fifty-two 1,238
million dollars for that fiscal year. The tax commissioner shall 1,239
certify to the director of budget and management the amounts that 1,240
shall be credited under this division.
(C) ALL MONEY ARISING FROM THE TAX IMPOSED BY SECTION 1,242
5727.811 OF THE REVISED CODE SHALL BE CREDITED AS FOLLOWS: 1,243
29
(1) SEVENTY PER CENT, LESS AN AMOUNT EQUAL TO THIRTY PER 1,245
CENT OF THE TOTAL STATE EDUCATION AID OFFSET, SHALL BE CREDITED 1,246
TO THE SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND FOR THE 1,247
PURPOSE OF MAKING THE PAYMENTS DESCRIBED IN SECTION 5727.85 OF 1,248
THE REVISED CODE. 1,249
(2) THIRTY PER CENT SHALL BE CREDITED TO THE LOCAL 1,251
GOVERNMENT PROPERTY TAX REPLACEMENT FUND FOR THE PURPOSE OF 1,252
MAKING THE PAYMENTS DESCRIBED IN SECTION 5727.86 OF THE REVISED 1,253
CODE.
(3) AN AMOUNT EQUAL TO THIRTY PER CENT OF THE TOTAL STATE 1,255
EDUCATION AID OFFSET SHALL BE CREDITED TO THE GENERAL REVENUE 1,256
FUND.
(4) BEGINNING IN THE FISCAL YEAR IN WHICH PAYMENTS ARE 1,258
REQUIRED TO BE MADE UNDER SECTIONS 5727.85 AND 5727.86 OF THE 1,259
REVISED CODE, IF THE REVENUE ARISING FROM THE TAX LEVIED BY 1,261
SECTION 5727.811 OF THE REVISED CODE IS LESS THAN NINETY MILLION 1,262
DOLLARS, THE AMOUNT CREDITED TO THE GENERAL REVENUE FUND UNDER 1,263
DIVISION (C)(3) OF THIS SECTION SHALL BE REDUCED BY THE AMOUNT 1,264
NECESSARY TO CREDIT TO EACH OF THE FUNDS IN DIVISIONS (C)(1) AND 1,266
(2) OF THIS SECTION THE AMOUNT THAT IT WOULD HAVE RECEIVED IF THE 1,267
TAX DID RAISE NINETY MILLION DOLLARS FOR THAT FISCAL YEAR. THE 1,268
TAX COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 1,269
MANAGEMENT THE AMOUNTS THAT SHALL BE CREDITED UNDER THIS 1,270
DIVISION.
(D) Not later than January 1, 2002, the tax commissioner 1,272
shall determine for each taxing district its ELECTRIC COMPANY tax 1,273
value loss, which is the sum of the amounts described in 1,275
divisions (C)(D)(1) and (2) of this section: 1,276
(1) The difference obtained by subtracting the amount 1,278
described in division (C)(D)(1)(b) from the amount described in 1,279
division (C)(D)(1)(a) of this section. 1,280
(a) The value of electric company and rural electric 1,282
company tangible personal property as assessed by the tax 1,283
commissioner for tax year 1998 on a preliminary assessment, or an 1,285
30
amended preliminary assessment if issued prior to March 1, 1999, 1,286
and as apportioned to the taxing district for tax year 1998; 1,287
(b) The value of electric company and rural electric 1,289
company tangible personal property as assessed by the tax 1,290
commissioner for tax year 1998 had the property been apportioned 1,291
to the taxing district for tax year 2001, and assessed at the 1,292
rates in effect for tax year 2001. 1,293
(2) The difference obtained by subtracting the amount 1,295
described in division (C)(D)(2)(b) from the amount described in 1,296
division (C)(D)(2)(a) of this section. 1,297
(a) The three-year average for tax years 1996, 1997, and 1,299
1998 of the assessed value from nuclear fuel materials and 1,300
assemblies assessed against a person under Chapter 5711. of the 1,301
Revised Code from the leasing of them to an electric company for 1,302
those respective tax years, as reflected in the preliminary 1,303
assessments;
(b) The three-year average assessed value from nuclear 1,305
fuel materials and assemblies assessed under division 1,306
(C)(D)(2)(a) of this section for tax years 1996, 1997, and 1998, 1,308
as reflected in the preliminary assessments, using an assessment 1,309
rate of twenty-five per cent. 1,310
(E) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 1,312
SHALL DETERMINE FOR EACH TAXING DISTRICT ITS NATURAL GAS COMPANY 1,313
TAX VALUE LOSS, WHICH IS THE SUM OF THE AMOUNTS DESCRIBED IN 1,315
DIVISIONS (E)(1) AND (2) OF THIS SECTION: 1,316
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 1,318
DESCRIBED IN DIVISION (E)(1)(b) FROM THE AMOUNT DESCRIBED IN 1,319
DIVISION (E)(1)(a) OF THIS SECTION. 1,321
(a) THE VALUE OF ALL NATURAL GAS COMPANY TANGIBLE PERSONAL 1,323
PROPERTY, OTHER THAN PROPERTY DESCRIBED IN DIVISION (E)(2) OF 1,324
THIS SECTION, AS ASSESSED BY THE TAX COMMISSIONER FOR TAX YEAR 1,325
1999 ON A PRELIMINARY ASSESSMENT, OR AN AMENDED PRELIMINARY 1,327
ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 2000, AND APPORTIONED TO 1,328
THE TAXING DISTRICT FOR TAX YEAR 1999;
31
(b) THE VALUE OF ALL NATURAL GAS COMPANY TANGIBLE PERSONAL 1,330
PROPERTY, OTHER THAN PROPERTY DESCRIBED IN DIVISION (E)(2) OF 1,331
THIS SECTION, AS ASSESSED BY THE TAX COMMISSIONER FOR TAX YEAR 1,332
1999 HAD THE PROPERTY BEEN APPORTIONED TO THE TAXING DISTRICT FOR 1,333
TAX YEAR 2001, AND ASSESSED AT THE RATES IN EFFECT FOR TAX YEAR 1,334
2001.
(2) THE DIFFERENCE IN THE VALUE OF CURRENT GAS OBTAINED BY 1,336
SUBTRACTING THE AMOUNT DESCRIBED IN DIVISION (E)(2)(b) FROM THE 1,338
AMOUNT DESCRIBED IN DIVISION (E)(2)(a) OF THIS SECTION. 1,340
(a) THE THREE-YEAR AVERAGE ASSESSED VALUE OF CURRENT GAS 1,342
AS ASSESSED BY THE TAX COMMISSIONER FOR TAX YEARS 1997, 1998, AND 1,343
1999 ON A PRELIMINARY ASSESSMENT, OR AN AMENDED PRELIMINARY 1,345
ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 2001, AND AS APPORTIONED 1,346
IN THE TAXING DISTRICT FOR THOSE RESPECTIVE YEARS;
(b) THE THREE-YEAR AVERAGE ASSESSED VALUE FROM CURRENT GAS 1,348
UNDER DIVISION (E)(2)(a) OF THIS SECTION FOR TAX YEARS 1997, 1,350
1998, AND 1999, AS REFLECTED IN THE PRELIMINARY ASSESSMENT, USING 1,351
AN ASSESSMENT RATE OF TWENTY-FIVE PER CENT. 1,352
(F) The tax commissioner may request that NATURAL GAS 1,354
COMPANIES, electric companies, and rural electric companies file 1,356
a report to help determine the tax value loss under division (C) 1,357
DIVISIONS (D) AND (E) of this section. The report shall be filed 1,359
within thirty days of the commissioner's request. A company that 1,360
fails to file the report or does not timely file the report is 1,362
subject to the penalty in section 5727.60 of the Revised Code. 1,363
(D)(G) Not later than January 1, 2002, the tax 1,365
commissioner shall determine for each school district, joint 1,367
vocational school district, and local taxing unit its fixed-rate 1,368
levy loss, which is THE SUM OF its ELECTRIC COMPANY tax value 1,369
loss multiplied by the tax rate in effect in tax year 1998 for 1,371
fixed-rate levies AND ITS NATURAL GAS COMPANY TAX VALUE LOSS 1,372
MULTIPLIED BY THE TAX RATE IN EFFECT IN TAX YEAR 1999 FOR 1,373
FIXED-RATE LEVIES.
(E)(H) Not later than January 1, 2002, the tax 1,375
32
commissioner shall determine for each school district, joint 1,377
vocational school district, and local taxing unit its fixed-sum 1,378
levy loss, which is the amount obtained by subtracting the amount 1,379
described in division (E)(H)(2) of this section from the amount 1,380
described in division (E)(H)(1) of this section: 1,382
(1) The SUM OF THE ELECTRIC COMPANY tax value loss 1,384
multiplied by the tax rate in effect in tax year 1998, AND THE 1,387
NATURAL GAS COMPANY TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN 1,388
EFFECT IN TAX YEAR 1999, for fixed-sum levies for all taxing 1,389
districts within each school district, joint vocational school 1,390
district, and local taxing unit. For the years 2002 through 1,391
2006, this computation shall include school district emergency 1,392
levies that existed in 1998 IN THE CASE OF THE ELECTRIC COMPANY 1,393
TAX VALUE LOSS, AND 1999 IN THE CASE OF THE NATURAL GAS COMPANY 1,394
TAX VALUE LOSS, and all other fixed-sum levies that existed in 1,395
1998 IN THE CASE OF THE ELECTRIC COMPANY TAX VALUE LOSS AND 1999 1,396
IN THE CASE OF THE NATURAL GAS COMPANY TAX VALUE LOSS and 1,397
continue to be charged in the tax year preceding the distribution 1,398
year. For the years 2007 through 2016, this computation shall 1,399
exclude all IN THE CASE OF school district emergency levies, and 1,401
FOR all other YEARS AFTER 2006 IN THE CASE OF ALL OTHER FIXED-SUM 1,402
LEVIES, THIS COMPUTATION SHALL EXCLUDE ALL fixed-sum levies that 1,403
existed in 1998 IN THE CASE OF THE ELECTRIC COMPANY TAX VALUE 1,404
LOSS AND 1999 IN THE CASE OF THE NATURAL GAS TAX VALUE LOSS, but 1,405
are no longer in effect in the tax year preceding the 1,407
distribution year. AN EMERGENCY LEVY THAT EXISTED IN 1998 IN THE 1,408
CASE OF THE ELECTRIC COMPANY TAX VALUE LOSS, AND 1999 IN THE CASE 1,409
OF THE NATURAL GAS COMPANY TAX VALUE LOSS, CONTINUES TO EXIST IN 1,410
YEARS 2007 THROUGH 2016 IF THE SCHOOL DISTRICT LEVIES IN THAT 1,411
YEAR EMERGENCY TAXES AT LEAST EQUAL TO THE EMERGENCY TAXES LEVIED 1,412
IN 1998 OR 1999, RESPECTIVELY, LESS THE FIXED SUM LEVY LOSS 1,413
REIMBURSED WITH RESPECT TO THAT LEVY FOR 2002. 1,414
(2) The total taxable value in tax year 1998 IN THE CASE 1,416
OF THE ELECTRIC COMPANY TAX VALUE LOSS AND 1999 IN THE CASE OF 1,417
33
THE NATURAL GAS COMPANY TAX VALUE LOSS in each school district, 1,419
joint vocational school district, and local taxing unit
multiplied by one-fourth of one mill. 1,420
If the computation AMOUNT COMPUTED under division (E)(H) of 1,423
this section for any school district, joint vocational school 1,424
district, or local taxing unit is greater than zero, the 1,425
one-fourth of one mill that is subtracted THAT AMOUNT SHALL EQUAL 1,426
THE FIXED SUM LEVY LOSS REIMBURSED pursuant to division (E) of 1,427
section 5727.85 of the Revised Code or division (A)(2) of section 1,429
5727.86 of the Revised Code, AND THE ONE-FOURTH OF ONE MILL THAT 1,430
IS SUBTRACTED UNDER DIVISION (H)(2) OF THIS SECTION shall be 1,431
apportioned among all contributing fixed-sum levies in the 1,433
proportion of each levy to the sum of all fixed-sum levies within 1,434
each school district, joint vocational school district, or local 1,435
taxing unit.
(F)(I) Notwithstanding divisions (C), (D), and (E), (G), 1,438
AND (H) of this section, in computing the tax value loss, 1,440
fixed-rate levy loss, and fixed-sum levy loss, the tax 1,441
commissioner shall use the greater of the 1998 tax rate or the 1,442
1999 tax rate IN THE CASE OF LEVY LOSSES ASSOCIATED WITH THE 1,443
ELECTRIC COMPANY TAX VALUE LOSS, but the 1999 tax rate shall not 1,444
include for this purpose any tax levy approved by the voters 1,445
after June 30, 1999, AND THE TAX COMMISSIONER SHALL USE THE 1,446
GREATER OF THE 1999 OR THE 2000 TAX RATE IN THE CASE OF LEVY 1,447
LOSSES ASSOCIATED WITH THE NATURAL GAS COMPANY TAX VALUE LOSS, 1,448
BUT THE 2000 TAX RATE SHALL NOT INCLUDE FOR THIS PURPOSE ANY TAX 1,449
LEVY APPROVED BY THE VOTERS AFTER MARCH 7, 2000. 1,450
(J) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 1,452
SHALL CERTIFY TO THE DEPARTMENT OF EDUCATION THE TAX VALUE LOSS 1,453
DETERMINED UNDER DIVISIONS (D) AND (E) OF THIS SECTION FOR EACH 1,454
TAXING DISTRICT. 1,455
Sec. 5727.85. (A) By the thirty-first day of July of each 1,465
year, beginning in 2002 and ending in 2016, the department of 1,466
education shall determine the following for each school district 1,467
34
eligible for payment under division (C) of this section: 1,468
(1) The state education aid offset, which is the 1,470
difference obtained by subtracting the amount described in 1,471
division (A)(1)(b) of this section from the amount described in 1,473
division (A)(1)(a) of this section: 1,475
(a) The state education aid computed for the school 1,477
district for the current fiscal year on the basis of the adjusted 1,478
total taxable value; 1,479
(b) The state education aid that would be computed for the 1,481
school district for the current fiscal year if the district's 1,482
adjusted total taxable value included the tax value loss for all 1,483
taxing districts in the school district.
(2) The difference obtained by subtracting the state 1,485
education aid offset determined under division (A)(1) of this 1,486
section from the fixed-rate levy loss determined under division 1,487
(D)(G) of section 5727.84 of the Revised Code for all taxing 1,489
districts in each school district. The department of education 1,490
shall certify the amount so determined to the director of budget 1,491
and management.
(B) Not later than the thirty-first day of October of the 1,494
years 2006 through 2016, the department of education shall 1,495
determine all of the following for each school district: 1,496
(1) The amount obtained by subtracting the district's 1,498
state education aid computed for fiscal year 2002 from the 1,499
district's state education aid computed for the current fiscal 1,500
year;
(2) The inflation-adjusted property tax loss. The 1,502
inflation-adjusted property tax loss equals the fixed-rate levy 1,503
loss determined under division (D)(G) of section 5727.84 of the 1,505
Revised Code for all taxing districts in each school district 1,506
plus the product obtained by multiplying that loss by the 1,507
cumulative percentage increase in the consumer price index from 1,508
January 1, 2002, to the thirtieth day of June of the current 1,509
year.
35
(3) The difference obtained by subtracting the amount 1,511
computed under division (B)(1) from the amount of the 1,512
inflation-adjusted property tax loss. If this difference is zero 1,513
or a negative number, no further payments shall be made under 1,514
division (C) of this section to the school district from the 1,515
school district property tax replacement fund. If the difference 1,517
is greater than zero, the department of education shall certify
the amount calculated in division (A)(2) of this section to the 1,519
director of budget and management not later than the thirty-first 1,520
day of December of each year, beginning in 2006 and ending in 1,522
2016.
(C) For all taxing districts in each school district, the 1,524
director of budget and management shall pay from the school 1,525
district property tax replacement fund to the county undivided 1,526
income tax fund in the proper county treasury all of the 1,527
following: 1,528
(1) In February 2002, one-half of the fixed-rate levy loss 1,530
certified under division (D)(G) of section 5727.84 of the Revised 1,532
Code on or before the day prescribed for the settlement under 1,534
division (A) of section 321.24 of the Revised Code. 1,535
(2) From August 2002 through August 2006, one-half of the 1,538
amount certified for that fiscal year under division (A)(2) of 1,539
this section on or before each of the days prescribed for the 1,540
settlements under divisions (A) and (C) of section 321.24 of the 1,541
Revised Code. 1,542
(3) From February 2007 through August 2016, one-half of 1,544
the amount certified for that calendar year under division (B)(3) 1,546
of this section on or before each of the days prescribed for the 1,547
settlements under divisions (A) and (C) of section 321.24 of the 1,548
Revised Code. 1,549
The county treasurer shall distribute amounts paid under 1,551
divisions (C)(1), (2), and (3) of this section to the proper 1,552
school district as if they had been levied and collected as 1,553
taxes, and the school district shall apportion the amounts so 1,554
36
received among its funds in the same proportions as if those 1,555
amounts had been levied and collected as taxes. 1,556
(D) Not later than January 1, 2002, for all taxing 1,558
districts in each joint vocational school district, the tax 1,560
commissioner shall certify to the director of budget and 1,561
management the fixed-rate levy loss determined under division 1,563
(D)(G) of section 5727.84 of the Revised Code. From February 1,565
2002 to August 2016, the director shall pay from the school 1,566
district property tax replacement fund to the county undivided 1,567
income tax fund in the proper county treasury, one-half of the 1,568
fixed-rate levy loss so certified for each year on or before each 1,569
of the days prescribed for the settlements under divisions (A) 1,570
and (C) of section 321.24 of the Revised Code. The county 1,572
treasurer shall distribute such amounts to the proper joint
vocational school district as if they had been levied and
collected as taxes, and the joint vocational school district
shall apportion the amounts so received among its funds in the 1,573
same proportions as if those amounts had been levied and 1,574
collected as taxes. 1,575
(E)(1) Not later than January 1, 2002, for each FIXED-SUM 1,577
LEVY LEVIED BY EACH school district and OR joint vocational 1,578
school district, the tax commissioner shall certify to the 1,580
director of budget and management the fixed-sum levy loss
determined under division (E)(H) of section 5727.84 of the 1,581
Revised Code. The certification shall cover a time period 1,583
sufficient to include all fixed-sum levies in effect in 1998 to 1,584
June 30, 1999, until they are no longer in effect FOR WHICH THE 1,585
COMMISSIONER DETERMINED, PURSUANT TO DIVISION (H) OF SECTION 1,586
5727.84 OF THE REVISED CODE, THAT A FIXED-SUM LEVY LOSS IS TO BE 1,587
REIMBURSED. The director shall pay from the school district 1,588
property tax replacement fund to the county undivided income tax 1,589
fund in the proper county treasury one-half of the fixed-sum levy 1,590
loss so certified for each year on or before each of the days 1,591
prescribed for the settlements under divisions (A) and (C) of 1,592
37
section 321.24 of the Revised Code. The county treasurer shall 1,593
distribute the amounts to the proper school district or joint 1,594
vocational school district as if they had been levied and 1,595
collected as taxes, and the district shall apportion the amounts 1,596
so received among its funds in the same proportions as if those 1,597
amounts had been levied and collected as taxes. No payments 1,598
shall be made under this division once all fixed-sum levies in 1,599
effect in 1998 to June 30, 1999, are no longer in effect. 1,600
(2) Beginning in 2003 and ending in 2016, by the 1,602
thirty-first day of January of each year, the tax commissioner 1,603
shall review the certification originally made under division 1,605
(E)(1) of this section. If the commissioner determines that a 1,606
fixed-sum levy that had been scheduled to be reimbursed in the 1,607
current year has expired, a revised certification for that and 1,608
all subsequent years shall be made to the director of budget and 1,609
management. 1,610
(F) By August 5, 2002, the tax commissioner shall estimate 1,613
the amount of money in the school district property tax 1,614
replacement fund in excess of the amount necessary to make 1,615
payments in that month under divisions (C), (D), and (E) of this 1,616
section. Notwithstanding division (C) of this section, the 1,617
department of education, in consultation with the tax 1,618
commissioner and from those excess funds, may pay any school 1,620
district four and one-half times the amount certified under
division (A)(2) of this section. Payments shall be made in order 1,621
from the smallest annual loss to the largest annual loss. A 1,622
payment made under this division shall be in lieu of the payment 1,624
to be made in August 2002 under division (C)(2) of this section. 1,625
No payments shall be made in the manner established in this 1,626
division to any school district with annual losses from permanent 1,627
improvement fixed-rate levies in excess of twenty thousand 1,628
dollars, or annual losses from any other fixed-rate levies in 1,629
excess of twenty thousand dollars. A school district receiving a 1,630
payment under this division is no longer entitled to any further 1,631
38
payments under division (C) of this section. 1,632
(G) On the thirty-first day of July of 2003, 2004, 2005, 1,634
and 2006, and on the thirty-first day of January and July of 2007 1,636
and each year thereafter, if the amount credited to the school 1,637
district property tax replacement fund exceeds the amount needed 1,638
to make payments from the fund under divisions (C), (D), and (E) 1,639
of this section in the following month, the director of budget 1,641
and management shall distribute the excess among school districts 1,643
and joint vocational school districts. The amount distributed to 1,646
each district shall bear the same proportion to the excess 1,647
remaining in the fund as the ADM of the district bears to the ADM 1,648
of all of the districts. For the purpose of this division, "ADM" 1,649
means the formula ADM in the case of a school district, and the 1,651
average daily membership reported under section 3317.03 of the 1,653
Revised Code in the case of a joint vocational school district. 1,654
If, in the opinion of the director of budget and 1,656
management, the excess remaining in the school district property 1,657
tax replacement fund in any year is not sufficient to warrant 1,658
distribution under this division, the excess shall remain to the 1,659
credit of the fund.
Amounts received by a school district or joint vocational 1,661
school district under this division shall be used exclusively for 1,662
capital improvements. 1,663
(H) If the total amount in the school district property 1,665
tax replacement fund is insufficient to make all payments under 1,666
divisions (C), (D), and (E) of this section, the payments 1,667
required under division (E) of this section shall be made first 1,668
in their entirety. After all payments are made under division 1,669
(E) of this section, payments under divisions (C) and (D) of this 1,670
section shall be made from the balance of money available in the 1,671
proportion of each school district's or joint vocational school 1,672
district's payment amount to the total amount of payments under 1,673
divisions (C) and (D) of this section. 1,674
(I) If all or a part of the territory of a school district 1,676
39
or joint vocational school district is merged with or transferred 1,677
to another district, the tax commissioner shall adjust the 1,678
payments made under this section to each of the districts in 1,679
proportion to the tax value loss apportioned to the merged or 1,680
transferred territory. 1,681
(J) There is hereby created the electric PUBLIC UTILITY 1,683
property tax study committee, effective January 1, 2011. The 1,685
committee shall consist of the following seven members: the tax 1,686
commissioner, three members of the senate appointed by the 1,687
president of the senate, and three members of the house of 1,688
representatives appointed by the speaker of the house of 1,689
representatives. The appointments shall be made not later than 1,690
January 31, 2011. The tax commissioner shall be the chairperson 1,691
of the committee.
The committee shall study the extent to which each school 1,693
district or joint vocational school district has been 1,694
compensated, under sections 5727.84 and 5727.85 of the Revised 1,695
Code as enacted by Substitute Senate Bill No. 3 of the 123rd 1,696
general assembly and any subsequent acts, for the property tax 1,697
loss caused by the reduction in the assessment rates for NATURAL 1,698
GAS, electric, and rural electric company tangible personal 1,700
property. Not later than June 30, 2011, the committee shall 1,701
issue a report of its findings, including any recommendations for 1,702
providing additional compensation for the property tax loss or 1,703
regarding remedial legislation, to the president of the senate 1,704
and the speaker of the house of representatives, at which time 1,705
the committee shall cease to exist.
The department of taxation and department of education 1,707
shall provide such information and assistance as is required for 1,708
the committee to carry out its duties. 1,709
Sec. 5727.86. (A) Not later than January 1, 2002, the tax 1,718
commissioner shall certify to the director of budget and 1,719
management, for all taxing districts in each local taxing unit, 1,720
the fixed-rate levy loss determined under division (D)(G), and 1,721
40
the fixed-sum levy loss determined under division (E)(H), of 1,723
section 5727.84 of the Revised Code. Based on that 1,725
certification, the director shall compute the payments to be made 1,726
to each local taxing unit for each year according to divisions 1,727
(A)(1), (2), and (3) and division (E) of this section, and shall 1,728
distribute the payments in the manner prescribed by division (C) 1,729
of this section. The certification of the fixed-sum levy loss 1,730
shall cover a period of time PERIOD sufficient to include all 1,731
fixed-sum levies in effect in 1998 to June 30, 1999, until they 1,733
are no longer in effect FOR WHICH THE TAX COMMISSIONER 1,734
DETERMINED, PURSUANT TO DIVISION (H) OF SECTION 5727.84 OF THE 1,735
REVISED CODE, THAT A FIXED-SUM LEVY LOSS IS TO BE REIMBURSED. 1,736
(1) Except as provided in division (A)(3) of this section, 1,738
for fixed-rate levy losses determined under division (D)(G) of 1,739
section 5727.84 of the Revised Code, payments shall be made in 1,741
each of the following years at the following percentage of the 1,742
fixed-rate levy loss certified under division (A) of this 1,743
section:
YEAR PERCENTAGE 1,745
2002 100% 1,747
2003 100% 1,748
2004 100% 1,749
2005 100% 1,750
2006 100% 1,751
2007 80% 1,752
2008 80% 1,753
2009 80% 1,754
2010 80% 1,755
2011 80% 1,756
2012 66.7% 1,757
2013 53.4% 1,758
2014 40.1% 1,759
2015 26.8% 1,760
2016 13.5% 1,761
41
2017 and thereafter 0% 1,762
(2) For fixed-sum levy losses determined under division 1,765
(E)(H) of section 5727.84 of the Revised Code, PAYMENTS SHALL BE 1,767
MADE IN THE AMOUNT OF one hundred per cent of the fixed-sum levy 1,769
loss certified under division (A) of this section for payments 1,770
required to be made in 2002 and thereafter.
(3) A local taxing unit in a county of less than two 1,772
hundred fifty square miles that receives eighty per cent or more 1,773
of its combined general fund and bond retirement fund revenues 1,774
from property taxes and rollbacks based on 1997 actual revenues 1,775
as presented in its 1999 tax budget, and in which electric 1,776
companies and rural electric companies comprise over twenty per 1,777
cent of its property valuation, shall receive one hundred per 1,778
cent of its fixed-rate levy losses FROM ELECTRIC COMPANY TAX 1,779
VALUE LOSSES certified under division (A) of this section in 1,781
years 2002 to 2016.
(B) Beginning in 2003, by the thirty-first day of January 1,783
of each year, the tax commissioner shall review the certification 1,784
originally made under division (A) of this section of the 1,785
fixed-sum levy loss determined under division (E)(H) of section 1,787
5727.84 of the Revised Code. If the commissioner determines that 1,788
a fixed-sum levy that had been scheduled to be reimbursed in the 1,789
current year has expired, a revised certification for that and 1,790
all subsequent years shall be made. 1,791
(C) Payments to local taxing units required to be made 1,793
under divisions (A) and (E) of this section shall be paid from 1,794
the local government property tax replacement fund to the county 1,795
undivided income tax fund in the proper county treasury. 1,796
One-half of the amount certified under those divisions shall be 1,797
paid on or before each of the days prescribed for the settlements 1,798
under divisions (A) and (C) of section 321.24 of the Revised 1,799
Code. The county treasurer shall distribute amounts paid under 1,800
division (A) of this section to the proper local taxing unit as 1,801
if they had been levied and collected as taxes, and the local 1,802
42
taxing unit shall apportion the amounts so received among its 1,803
funds in the same proportions as if those amounts had been levied 1,804
and collected as taxes. Amounts distributed under division (E) 1,805
of this section shall be credited to the general fund of the 1,806
local taxing unit that receives them.
(D) By February 5, 2002, the tax commissioner shall 1,808
estimate the amount of money in the local government property tax 1,809
replacement fund in excess of the amount necessary to make 1,810
payments in that month under division (C) of this section. 1,811
Notwithstanding division (A) of this section, the tax 1,812
commissioner may pay any local taxing unit, from those excess 1,813
funds, nine and four-tenths times the amount computed for 2002 1,814
under division (A)(1) of this section. A payment made under this 1,815
division shall be in lieu of the payment to be made in February 1,816
2002 under division (A)(1) of this section. A local taxing unit 1,817
receiving a payment under this division will no longer be 1,818
entitled to any further payments under division (A)(1) of this 1,819
section. A PAYMENT MADE UNDER THIS DIVISION SHALL BE PAID FROM 1,820
THE LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY 1,821
UNDIVIDED INCOME TAX FUND IN THE PROPER COUNTY TREASURY. THE 1,822
COUNTY TREASURER SHALL DISTRIBUTE THE PAYMENT TO THE PROPER LOCAL 1,823
TAXING UNIT AS IF IT HAD BEEN LEVIED AND COLLECTED AS TAXES, AND 1,824
THE LOCAL TAXING UNIT SHALL APPORTION THE AMOUNTS SO RECEIVED 1,825
AMONG ITS FUNDS IN THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD 1,826
BEEN LEVIED AND COLLECTED AS TAXES. 1,827
(E) On the thirty-first day of July of 2002, 2003, 2004, 1,829
2005, and 2006, and on the thirty-first day of January and July 1,830
of 2007 and each year thereafter, if the amount credited to the 1,831
local government property tax replacement fund exceeds the amount 1,832
needed to be distributed from the fund under division (A) of this 1,833
section in the following month, the director of budget and 1,834
management shall distribute the excess to each county as follows: 1,835
(1) One-half shall be distributed to each county in 1,837
proportion to each county's population. 1,838
43
(2) One-half shall be distributed to each county in the 1,840
proportion that the amounts determined under divisions (D)(G) and 1,842
(E)(H) of section 5727.84 of the Revised Code for all LOCAL 1,843
taxing districts UNITS in the county is of the total amounts so 1,845
determined for all LOCAL taxing districts UNITS in the state. 1,846
The amounts distributed to each county under this division 1,848
shall be distributed by the county budget commission to each 1,849
local taxing unit in the county in the proportion that the unit's 1,850
current taxes charged and payable are of the total current taxes 1,851
charged and payable of all the local taxing units in the county. 1,852
As used in this division, "current taxes charged and payable" 1,853
means the taxes charged and payable as most recently determined 1,854
for local taxing units in the county. 1,855
If, in the opinion of the director of budget and 1,857
management, the excess remaining in the local government property 1,858
tax replacement fund in any year is not sufficient to warrant 1,859
distribution under this division, the excess shall remain to the 1,860
credit of the fund.
(F) If the total amount in the local government property 1,862
tax replacement fund is insufficient to make all payments under 1,863
division (C) of this section, the payments required under 1,864
division (A)(2) of this section shall be made first in their 1,865
entirety. After all such payments are made, payments under 1,866
divisions (A)(1) and (3) of this section shall be made from the 1,867
balance of money available in the proportion of each local taxing 1,868
unit's payment amount to the total amount of all payments to be 1,869
made under divisions (A)(1) and (3) of this section. 1,870
(G) If all or a part of the territories of two or more 1,872
local taxing units are merged, or unincorporated territory of a 1,873
township is annexed by a municipal corporation, the tax 1,874
commissioner shall adjust the payments made under this section to 1,875
each of the local taxing units in proportion to the tax value 1,876
loss apportioned to the merged or annexed territory, or as 1,877
otherwise provided by a written agreement between the legislative 1,878
44
authorities of the local taxing units certified to the tax 1,879
commissioner not later than the first day of June of the calendar 1,880
year in which the payment is to be made. 1,881
Sec. 5727.87. (A) As used in this section: 1,890
(1) "Administrative fees" means the dollar percentages 1,892
allowed by the county auditor for services or by the county 1,893
treasurer as fees, or paid to the credit of the real estate 1,894
assessment fund, under divisions (A) and (B) of section 319.54 1,895
and division (A) of section 321.26 of the Revised Code. 1,896
(2) "Administrative fee loss" means a county's loss of 1,898
administrative fees due to its tax value loss, determined as 1,899
follows: 1,900
(a) For purposes of the determination made under division 1,902
(B) of this section in the years 2002 through 2006, the 1,903
administrative fee loss shall be computed by multiplying the 1,904
amounts determined for all taxing districts in the county under 1,905
divisions (D)(G) and (E)(H) of section 5727.84 of the Revised 1,907
Code by nine thousand six hundred fifty-nine ten-thousandths of a 1,908
per cent, if total taxes collected in the county in tax year 1998 1,909
exceeded one hundred fifty million dollars, or one and one 1,910
thousand one hundred fifty-nine ten-thousandths of a per cent, if 1,911
total taxes collected in the county in tax year 1998 were one 1,912
hundred fifty million dollars or less; 1,913
(b) For purposes of the determination under division (B) 1,915
of this section in the years 2007 through 2011, the 1,916
administrative fee loss shall be determined by subtracting from 1,917
the dollar amount of administrative fees collected in the county 1,918
in tax year 1998, the dollar amount of administrative fees 1,919
collected in the county in the current calendar year. 1,920
(B) Not later than the first day of June of 2002 through 1,922
2011, the county auditor shall determine the administrative fee 1,923
loss for the county and certify it to the county budget 1,924
commission. Notwithstanding divisions (C), (D), and (E) of 1,925
section 5727.85 and division (C) of section 5727.86 of the 1,926
45
Revised Code, prior to distribution by the county treasurer of 1,927
the payments provided under those divisions, the county budget 1,928
commission shall deduct from those payments the amount of the 1,929
administrative fee loss certified by the county auditor, as 1,930
follows:
(1) Seventy per cent of the administrative fee loss shall 1,932
be deducted from the payments provided under divisions (C), (D), 1,933
and (E) of section 5727.85 of the Revised Code. 1,934
(2) Thirty per cent of the administrative fee loss shall 1,936
be deducted from the payments provided under division (C) of 1,937
section 5727.86 of the Revised Code. 1,938
(C) On or before each of the days prescribed for the 1,940
settlements under divisions (A) and (C) of section 321.24 of the 1,941
Revised Code in the years 2002 through 2011, the county budget 1,942
commission shall pay one-half of the amount of the administrative 1,943
fee loss to the county auditor, county treasurer, or real estate 1,944
assessment fund as if the amount had been allowed as 1,945
administrative fees, and shall deposit the amount in the same 1,946
funds as if allowed as administrative fees. 1,947
After payment of the administrative fee loss on or before 1,949
August 10, 2011, all payments under this section shall cease. 1,950
Sec. 5727.88. The tax commissioner shall administer 1,959
sections 5727.80 to 5727.95 of the Revised Code and may adopt 1,962
such rules as are necessary to administer those sections. Upon 1,964
request of the tax commissioner, the public utilities commission
shall assist the tax commissioner by providing information 1,965
regarding any NATURAL GAS DISTRIBUTION COMPANY OR electric 1,966
distribution company that is subject to regulation by the 1,968
commission.
Sec. 5727.89. (A) The tax commissioner may make an 1,978
assessment, based on any information in the commissioner's
possession, against any NATURAL GAS DISTRIBUTION COMPANY, 1,979
electric distribution company, self-assessing purchaser, or 1,981
qualified end user that fails to file a return or pay any tax, 1,983
46
interest, or additional charge as required by sections 5727.80 to 1,984
5727.95 of the Revised Code. 1,985
When information in the possession of the tax commissioner 1,987
indicates that a person liable for the tax imposed by section 1,989
5727.81 OR 5727.811 of the Revised Code has not paid the full 1,991
amount of tax due, the commissioner may audit a representative 1,992
sample of the person's business and may issue an assessment based 1,994
on the audit. The commissioner shall give the person assessed 1,995
written notice of the assessment by personal service or certified 1,996
mail.
The tax commissioner may issue an assessment for which the 1,998
tax imposed by section 5727.81 OR 5727.811 of the Revised Code 1,999
was due and unpaid on the date the person was informed by an 2,002
agent of the tax commissioner of an investigation or audit of the 2,003
person. Any payment of the tax for the period covered by the 2,004
assessment, after the person is so informed, shall be credited 2,005
against the assessment. 2,006
A penalty of fifteen per cent shall be added to all amounts 2,009
assessed under this section. The commissioner may adopt rules 2,010
providing for the remission of penalties.
(B) Unless the party assessed files with the tax 2,013
commissioner within thirty days after service of the notice of 2,014
assessment, either personally or by certified mail, a written 2,015
petition for reassessment signed by the party assessed or the 2,016
party's authorized agent having knowledge of the facts, the 2,017
assessment is final and the amount of the assessment is due and 2,018
payable from the party assessed to the treasurer of state. The 2,019
petition shall indicate the objections of the party assessed, but 2,020
additional objections may be raised in writing prior to the date 2,021
shown on the final determination of the tax commissioner. The 2,022
commissioner shall grant the petitioner a hearing on the 2,023
petition, unless waived by the petitioner. 2,024
(C) The commissioner may make any correction to the 2,027
assessment that the commissioner finds proper and shall issue a 2,028
47
final determination thereon. The commissioner shall serve a copy 2,029
of the final determination on the petitioner either by personal 2,030
service or by certified mail, and the commissioner's decision in 2,031
the matter is final, subject to appeal under section 5717.02 of 2,032
the Revised Code. 2,033
(D) After an assessment becomes final, if any portion of 2,036
the assessment, including accrued interest, remains unpaid, a 2,037
certified copy of the commissioner's entry making the assessment 2,038
final may be filed in the office of the clerk of the court of 2,039
common pleas in the county in which the party assessed resides or 2,040
in which the party's business is conducted. If the party 2,041
assessed maintains no place of business in this state and is not 2,042
a resident of this state, the certified copy of the entry may be 2,044
filed in the office of the clerk of the court of common pleas of 2,045
Franklin county. 2,046
The clerk, immediately upon the filing of the entry, shall 2,048
enter a judgment for the state against the person assessed in the 2,050
amount shown on the entry. The judgment may be filed by the
clerk in a loose-leaf book entitled "special judgments for the 2,051
kilowatt-hour tax DISTRIBUTION EXCISE TAXES," and shall have the 2,052
same effect as other judgments. Execution shall issue upon the 2,054
judgment at the request of the tax commissioner, and all laws 2,055
applicable to sales on execution shall apply to sales made under 2,056
the judgment.
The portion of the assessment not paid within thirty days 2,058
after the day the assessment was issued shall bear interest at 2,059
the rate per annum prescribed by section 5703.47 of the Revised 2,061
Code from the day the tax commissioner issues the assessment 2,063
until the day the assessment is paid. Interest shall be paid in 2,064
the same manner as the tax and may be collected by the issuance 2,065
of an assessment under this section. 2,066
(E) If the tax commissioner believes that collection of 2,069
the tax imposed by section 5727.81 OR 5727.811 of the Revised 2,070
Code will be jeopardized unless proceedings to collect or secure 2,072
48
collection of the tax are instituted without delay, the 2,073
commissioner may issue a jeopardy assessment against the electric 2,074
distribution company, self-assessing purchaser, or qualified end 2,075
user PERSON liable for the tax. Upon issuance of the jeopardy 2,077
assessment, the commissioner immediately shall file an entry with 2,078
the clerk of the court of common pleas in the manner prescribed 2,079
by division (D) of this section. Notice of the jeopardy 2,081
assessment shall be served on the party assessed or the party's 2,082
legal representative within five days of the filing of the entry 2,083
with the clerk. The total amount assessed is immediately due and 2,084
payable, unless the party assessed files a petition for 2,085
reassessment in accordance with division (B) of this section and 2,086
provides security in a form satisfactory to the commissioner and 2,087
in an amount sufficient to satisfy the unpaid balance of the 2,088
assessment. Full or partial payment of the assessment does not 2,089
prejudice the commissioner's consideration of the petition for 2,090
reassessment. 2,091
(F) All money collected by the tax commissioner under this 2,094
section shall be paid to the treasurer of state, and when paid 2,095
shall be considered as revenue arising from the tax TAXES imposed 2,096
by section SECTIONS 5727.81 AND 5727.811 of the Revised Code. 2,098
Sec. 5727.90. No assessment of the tax imposed by section 2,107
5727.81 OR 5727.811 of the Revised Code shall be made by the tax 2,109
commissioner more than four years after the date on which the 2,110
return for the period assessed was due or filed, whichever date 2,111
is later. This section does not bar an assessment when any of 2,112
the following occur: 2,113
(A) The party assessed failed to file a return as required 2,116
by section 5727.82 of the Revised Code; 2,117
(B) The party assessed knowingly filed a false or 2,120
fraudulent return;
(C) The party assessed and the tax commissioner waived in 2,123
writing the time limitation. 2,124
Sec. 5727.91. (A) The treasurer of state shall refund the 2,134
49
amount of tax paid under section 5727.81 OR 5727.811 of the 2,135
Revised Code that was paid illegally or erroneously, or paid on 2,137
an illegal or erroneous assessment. An A NATURAL GAS 2,138
DISTRIBUTION COMPANY, AN electric distribution company, or A 2,140
self-assessing purchaser shall file an application for a refund 2,141
with the tax commissioner on a form prescribed by the
commissioner, within four years of the illegal or erroneous 2,142
payment of the tax. 2,143
Upon the filing of the application, the commissioner shall 2,145
determine the amount of refund due and certify that amount to the 2,147
director of budget and management and the treasurer of state for 2,148
payment from the tax refund fund under section 5703.052 of the 2,149
Revised Code. If the application for refund is for taxes paid on 2,150
an illegal or erroneous assessment, the tax commissioner shall 2,151
include in the certified amount interest calculated at the rate 2,152
per annum under section 5703.47 of the Revised Code from the date 2,153
of overpayment to the date of the commissioner's certification. 2,155
(B) If A NATURAL GAS DISTRIBUTION COMPANY OR an electric 2,157
distribution company entitled to a refund of taxes under this 2,158
section is indebted to the state for any tax or fee administered 2,159
by the tax commissioner that is paid to the state or any charge, 2,161
penalty, or interest arising from such a tax or fee, the amount 2,162
refundable may be applied in satisfaction of the debt. If the 2,163
amount refundable is less than the amount of the debt, it may be 2,164
applied in partial satisfaction of the debt. If the amount 2,165
refundable is greater than the amount of the debt, the amount 2,166
remaining after satisfaction of the debt shall be refunded. If 2,167
the NATURAL GAS DISTRIBUTION COMPANY OR electric distribution 2,168
company has more than one such debt, any debt subject to section 2,170
5739.33 or division (G) of section 5747.07 of the Revised Code 2,172
shall be satisfied first. This section applies only to debts 2,173
that have become final. 2,174
(C)(1) Any electric distribution company that can 2,177
substantiate to the tax commissioner that the tax imposed by 2,178
50
section 5727.81 of the Revised Code was paid on electricity 2,179
distributed via wires and consumed at a location outside of this 2,180
state may claim a refund in the manner and within the time period 2,181
prescribed in division (A) of this section. 2,183
(2) ANY NATURAL GAS DISTRIBUTION COMPANY THAT CAN 2,185
SUBSTANTIATE TO THE TAX COMMISSIONER THAT THE TAX IMPOSED BY 2,186
SECTION 5727.811 OF THE REVISED CODE WAS PAID ON NATURAL GAS 2,187
DISTRIBUTED VIA ITS FACILITIES AND CONSUMED AT A LOCATION OUTSIDE
OF THIS STATE MAY CLAIM A REFUND IN THE MANNER AND WITHIN THE 2,188
TIME PERIOD PRESCRIBED IN DIVISION (A) OF THIS SECTION. 2,189
(D) Before a refund is issued under this section, A 2,191
NATURAL GAS COMPANY OR an electric distribution company shall 2,193
certify, as prescribed by the tax commissioner, that it either 2,194
did not include the tax imposed by section 5727.81 of the Revised 2,195
Code IN THE CASE OF AN ELECTRIC DISTRIBUTION COMPANY, OR THE TAX
IMPOSED BY SECTION 5727.811 OF THE REVISED CODE IN THE CASE OF A 2,196
NATURAL GAS DISTRIBUTION COMPANY, in its distribution charge to 2,197
an electric ITS customer upon which a refund of the tax is 2,198
claimed, or it has refunded or credited to the electric customer 2,200
the excess distribution charge related to the tax that was 2,202
erroneously included in the electric customer's distribution 2,203
charge. 2,204
Sec. 5727.92. Every person liable for the tax imposed by 2,214
section 5727.81 OR 5727.811 of the Revised Code shall keep 2,216
complete and accurate records of all electric AND NATURAL GAS 2,217
distributions and other records as required by the tax 2,218
commissioner. The records shall be preserved for four years 2,219
after the return for the taxes to which the records pertain is 2,220
due or filed, whichever is later. The records shall be available 2,221
for inspection by the tax commissioner or the commissioner's 2,222
authorized agent, upon request of the commissioner or such agent. 2,223
Sec. 5727.93. (A) No person shall distribute electricity 2,233
OR NATURAL GAS to a meter of an end user in this state who is not 2,235
registered with the tax commissioner as an electric distribution 2,236
51
company OR A NATURAL GAS DISTRIBUTION COMPANY.
(B) Each person required to register under division (A) of 2,240
this section shall register prior to distributing electricity OR
NATURAL GAS to a meter of an end user in this state. The tax 2,242
commissioner shall prescribe the form of the registration 2,243
application. The commissioner shall assign an identification 2,244
number to each registration and notify the registrant of that 2,245
number. The registration shall remain in effect until canceled 2,246
in writing by the registrant upon the cessation of distributing 2,247
electricity OR NATURAL GAS to a meter of an end user in this 2,249
state or until such registration is denied, revoked, or canceled 2,250
by the commissioner. A registration may be revoked or canceled 2,251
by the tax commissioner as provided by Chapter 119. of the 2,253
Revised Code, for failure of an electric distribution company to 2,255
pay the tax imposed by section 5727.81 of the Revised Code, 2,256
FAILURE OF A NATURAL GAS DISTRIBUTION COMPANY TO PAY THE TAX 2,257
IMPOSED BY SECTION 5727.811 OF THE REVISED CODE, or FAILURE OF AN 2,258
ELECTRIC DISTRIBUTION COMPANY OR A NATURAL GAS DISTRIBUTION
COMPANY to comply with sections 5727.80 AND 5727.82 to 5727.95 of 2,261
the Revised Code. An electric distribution A company whose 2,263
registration is denied may petition for a hearing, in accordance 2,264
with the procedures set forth in divisions (B) and (C) of section 2,265
5727.89 of the Revised Code, not later than thirty days after 2,267
receiving the denial, and the final determination is subject to 2,268
appeal under section 5717.02 of the Revised Code. 2,269
(C) The tax commissioner shall maintain a list of the 2,272
electric distribution companies registered under this section. 2,273
The list shall contain the name and address of each company 2,274
registered by the commissioner. The list and subsequent updates 2,275
of it shall be open to public inspection.
Sec. 5727.94. Each electric distribution company required 2,284
to pay the tax imposed by section 5727.81 of the Revised Code AND 2,286
EACH NATURAL GAS DISTRIBUTION COMPANY REQUIRED TO PAY THE TAX
IMPOSED BY SECTION 5727.811 OF THE REVISED CODE shall provide to 2,287
52
its customers in this state the statement required by section 2,288
4933.33 of the Revised Code. 2,290
Sec. 5727.95. (A) No NATURAL GAS DISTRIBUTION COMPANY, 2,299
electric distribution company, or self-assessing purchaser shall 2,301
fail to file any return or report required to be filed pursuant 2,302
to section 5727.82 of the Revised Code, or file or cause to be 2,304
filed any incomplete, false, or fraudulent return, report, or 2,305
statement, or aid or abet another in the filing of any false or 2,306
fraudulent return, report, or statement. 2,307
(B) No person shall distribute NATURAL GAS OR electricity 2,310
to a meter of an end user in this state without holding a valid 2,312
registration issued under section 5727.93 of the Revised Code. 2,314
Section 2. That existing sections 3709.28, 4933.33, 2,316
5703.052, 5705.34, 5727.11, 5727.111, 5727.33, 5727.80, 5727.81, 2,317
5727.82, 5727.83, 5727.84, 5727.85, 5727.86, 5727.87, 5727.88, 2,318
5727.89, 5727.90, 5727.91, 5727.92, 5727.93, 5727.94, and 5727.95 2,319
of the Revised Code are hereby repealed. 2,320
Section 3. That Sections 3 and 4 of Am. Sub. S.B. 3 of the 2,322
123rd General Assembly be amended to read as follows: 2,323
"Sec. 3. Sections 5727.111 and SECTION 5727.15 of the 2,325
Revised Code, as amended by this act AM. SUB. S.B. 3 OF THE 123rd 2,328
GENERAL ASSEMBLY, shall first apply to tax year 2001. 2,329
Sec. 4. Sections 4933.33, 5727.30, AND 5727.32, and 2,331
5727.33 of the Revised Code, as amended by this act AM. SUB. S.B. 2,334
3 OF THE 123rd GENERAL ASSEMBLY, shall first apply to the excise 2,335
tax assessed by the Tax Commissioner for tax year 2002." 2,336
Section 4. That existing Sections 3 and 4 of Am. Sub. S.B. 2,338
3 of the 123rd General Assembly are hereby repealed. 2,339
Section 5. That Section 174 of Am. Sub. H.B. 283 of the 2,341
123rd General Assembly be amended to read as follows: 2,342
"Sec. 174. Sections 122.15, 122.152, 129.55, 129.63, 2,344
129.73, 718.01, 1555.12, 5528.36, 5703.052, 5703.053, 5727.01, 2,345
5727.30, 5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 5727.42, 2,346
5727.48, 5727.50, 5727.60, and 5733.16 of the Revised Code, as 2,347
53
amended by this act AM. SUB. H.B. 283 OF THE 123rd GENERAL 2,349
ASSEMBLY, first apply to the excise tax year beginning May 1, 2,350
2000. Sections 5727.24, 5727.25, 5727.26, 5727.27, 5727.28, and 2,351
5727.29 of the Revised Code, as enacted by this act AM. SUB. H.B. 2,353
283 OF THE 123rd GENERAL ASSEMBLY, first apply to gross receipts 2,354
derived from taxable activities that occur after April 30, 2000. 2,355
Natural gas companies and combined electric and gas companies 2,357
must file an annual statement pursuant to section 5727.31 of the 2,358
Revised Code on or before August 1, 2000, and the Tax 2,359
Commissioner shall issue an assessment pursuant to section 2,360
5727.38 of the Revised Code on or before the first Monday in 2,361
November for the period ending April 30, 2000. Such companies 2,362
shall have made and shall make payments of the excise tax on
gross receipts imposed by section 5727.30 of the Revised Code on 2,364
or before October 15, 1999, March 1, 2000, and June 1, 2000, in 2,365
accordance with section 5727.31 of the Revised Code. Division 2,366
(D) of section 5727.42 of the Revised Code does not apply to the 2,367
portion of any assessment issued by the Tax Commissioner for the 2,368
period ending April 30, 2000, that reflects the excise tax owed 2,369
on those gross receipts from operating as a natural gas company 2,370
that would have been subject to the tax under section 5727.24 of
the Revised Code, as enacted by this act AM. SUB. H.B. 283 OF THE 2,372
123rd GENERAL ASSEMBLY." 2,373
Section 6. That existing Section 174 of Am. Sub. H.B. 283 2,375
of the 123rd General Assembly is hereby repealed. 2,376
Section 7. The excise tax imposed by section 5727.811 of 2,378
the Revised Code shall first apply to natural gas distributed on 2,379
and after July 1, 2001. Before that date, a natural gas 2,380
distribution company shall register with the Tax Commissioner in 2,381
accordance with section 5727.93 of the Revised Code, as amended 2,382
by this act.
Section 8. Not later than 90 days after the effective date 2,384
of this act, each natural gas company in this state shall file 2,385
with the Public Utilities Commission revised schedules that do 2,386
54
both of the following: 2,387
(A) For all customers, except flex customers as defined by 2,389
section 5727.80 of the Revised Code, as amended by this act, 2,390
reduce natural gas MCF rates, effective January 1, 2001, in an 2,392
amount equal to the amount included in rates in each company's
last base rate case for the differential resulting from the 2,393
reduction in personal property tax assessment rates from 88% to 2,394
25% of true value as provided by section 5727.111 of the Revised 2,396
Code, as amended by this act;
(B) Provide for the collection, beginning July 1, 2001, of 2,398
the excise tax imposed by section 5727.811 of the Revised Code, 2,399
as enacted by this act, through a rider. The Commission shall 2,400
direct that such tax be reflected on bills as a separately 2,401
identified line item. 2,402
The Commission shall approve a revised schedule filed under 2,404
this section within 30 days after it is filed. 2,405
Section 9. Sections 5703.052, 5727.111, and 5727.33 of the 2,407
Revised Code are presented in this act as composites of those 2,409
sections as amended by both Am. Sub. H.B. 283 and Am. Sub. S.B. 3 2,410
of the 123rd General Assembly, with the new language of neither 2,411
of the acts shown in capital letters. This is in recognition of 2,412
the principle stated in division (B) of section 1.52 of the 2,413
Revised Code that such amendments are to be harmonized where not 2,414
substantively irreconcilable and constitutes a legislative 2,415
finding that such are the resulting versions in effect prior to 2,416
the effective date of this act.