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.