As Reported by the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. 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
5727.11, 5727.111, 5727.33, and 5727.80 to 13
5727.95, to enact section 5727.811 of the Revised 14
Code, and to amend Sections 3 and 4 of Am. Sub. 15
S.B. 3 of the 123rd General Assembly and Section
174 of H.B. 283 of the 123rd General Assembly to 17
reduce the assessment rate on tangible personal 18
property owned by natural gas companies, to levy 19
an excise tax on the distribution of natural gas,
and to modify the determination of the true value 20
of current gas 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
5727.11, 5727.111, 5727.33, 5727.80, 5727.81, 5727.82, 5727.83, 25
5727.84, 5727.85, 5727.86, 5727.87, 5727.88, 5727.89, 5727.90, 26
5727.91, 5727.92, 5727.93, 5727.94, and 5727.95 be amended and 27
section 5727.811 of the Revised Code be enacted to read as 28
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
available to the district, including the amount due from the 45
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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 MUNICIPAL 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
REVISED CODE MULTIPLIED BY THE PERCENTAGE USED FOR THAT YEAR IN 81
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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
Revised Code shall be placed in the blank); and 130
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(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
provided in section 5739.104 of the Revised Code. 179
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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. 5727.11. (A) Except as otherwise provided in this 205
section, the true value of all taxable property required by 207
division (A)(2) or (3) of section 5727.06 of the Revised Code to
be assessed by the tax commissioner shall be determined by a 208
method of valuation using cost as capitalized on the public 209
utility's books and records less composite annual allowances as 210
prescribed by the commissioner. If the commissioner finds that 211
application of this method will not result in the determination 212
of true value of the public utility's taxable property, the 213
commissioner may use another method of valuation. 214
(B) The (1) EXCEPT AS PROVIDED DIVISION (B)(2) OF THIS 217
SECTION, THE true value of current gas stored underground is the 218
cost of that gas shown on the books and records of the public
utility on the thirty-first day of December of the preceding 219
year. 220
(2) FOR TAX YEAR 2001 AND THEREAFTER, THE TRUE VALUE OF 222
CURRENT GAS STORED UNDERGROUND IS THE COST OF THAT GAS AS 224
DETERMINED IN THE MANNER PRESCRIBED IN SECTION 5711.15 OF THE 225
REVISED CODE.
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(C) The true value of noncurrent gas stored underground is 227
thirty-five per cent of the cost of that gas shown on the books 228
and records of the public utility on the thirty-first day of 229
December of the preceding year. 230
(D)(1) Except as provided in division (D)(2) of this 233
section, the true value of the production equipment of an 234
electric company and the true value of all taxable property of a 235
rural electric company is the equipment's or property's cost as 236
capitalized on the company's books and records less fifty per 237
cent of that cost as an allowance for depreciation and 238
obsolescence. 239
(2) The true value of the production equipment of an 241
electric company or rural electric company purchased, 242
transferred, or placed into service after the effective date of 244
this amendment is the purchase price of the equipment as 245
capitalized on the company's books and records less composite 246
annual allowances as prescribed by the tax commissioner. 247
(E) The true value of taxable property described in 249
division (A)(2) or (3) of section 5727.06 of the Revised Code 250
shall not include the allowance for funds used during 251
construction or interest during construction that has been 252
capitalized on the public utility's books and records as part of 254
the total cost of the taxable property. This division shall not 255
apply to the taxable property of an electric company or a rural 256
electric company, excluding transmission and distribution 257
property, first placed into service after December 31, 2000, or 258
to the taxable property a person purchases, which includes 259
transfers, if that property was used in business by the seller
prior to the purchase. 260
(F) The true value of watercraft owned or operated by a 262
water transportation company shall be determined by multiplying 264
the true value of the watercraft as determined under division (A) 265
of this section by a fraction, the numerator of which is the 267
number of revenue-earning miles traveled by the watercraft in the
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waters of this state and the denominator of which is the number 268
of revenue-earning miles traveled by the watercraft in all 269
waters.
(G) The cost of property subject to a sale and leaseback 271
transaction is the cost of the property as capitalized on the 272
books and records of the public utility owning the property 274
immediately prior to the sale and leaseback transaction.
(H) The cost as capitalized on the books and records of a 276
public utility includes amounts capitalized that represent 277
regulatory assets, if such amounts previously were included on 278
the company's books and records as capitalized costs of taxable 279
personal property.
Sec. 5727.111. The taxable property of each public 288
utility, except a railroad company, and of each interexchange 289
telecommunications company shall be assessed at the following 290
percentages of true value: 291
(A) Fifty per cent in the case of the taxable transmission 293
and distribution property of a rural electric company, and 295
twenty-five per cent for all its other taxable property; 296
(B) In the case of a telephone or telegraph company, (F) 298
twenty-five per cent for taxable property first subject to 299
taxation in this state for tax year 1995 or thereafter, and 301
eighty-eight per cent for all other taxable property;
(C) Eighty-eight (1) EXCEPT AS PROVIDED IN DIVISION 304
(C)(2) OF THIS SECTION, EIGHTY-EIGHT per cent in the case of a
natural gas or pipe-line company; 306
(2) FOR TAX YEAR 2001 AND THEREAFTER, TWENTY-FIVE PER CENT 308
IN THE CASE OF A NATURAL GAS COMPANY. 309
(D) Eighty-eight per cent in the case of a PIPE-LINE, 311
water-works, or heating company; 313
(E)(1) Except as provided in division (E)(2) of this 316
section, eighty-eight per cent in the case of the taxable 317
transmission and distribution property of an electric company, 318
and twenty-five per cent for all its other taxable property; 319
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(2) Property listed and assessed under divisions (B)(1) 321
and (2) of section 5711.22 of the Revised Code shall continue to 323
be assessed at one hundred per cent for production equipment and
eighty-eight per cent for all other taxable property until 324
January 1, 2002. 325
(F) (F) Twenty-five per cent in the case of an 327
interexchange telecommunications company; 328
(G) Twenty-five per cent in the case of a water 330
transportation company. 331
Sec. 5727.33. (A) For the purpose of computing the excise 340
tax imposed by section 5727.24 or 5727.30 of the Revised Code, 341
the tax commissioner shall ascertain and determine the entire 343
gross receipts actually received from all sources, excluding the 344
receipts described in divisions (B), (C), (D), and (F)(E) of this 345
section, of each combined electric and gas, pipe-line, 346
water-works, heating, and water transportation, AND COMBINED 348
company for business done within this state for the year ending 350
on the thirtieth day of April, of each natural gas company for 351
business done within this state quarterly or yearly as provided
in section 5727.25 of the Revised Code, and of each telegraph and 353
telephone company for business done within this state for the 354
year ending on the thirtieth day of June.
(B) In ascertaining and determining the gross receipts of 356
each of the companies named in this section, the commissioner 357
shall exclude all of the following: 358
(1) All receipts derived wholly from interstate business; 360
(2) All receipts derived wholly from business done for or 362
with the federal government; 363
(3) All RECEIPTS DERIVED WHOLLY FROM THE TRANSMISSION OR 366
DELIVERY OF ELECTRICITY TO OR FOR A RURAL ELECTRIC COMPANY, 367
PROVIDED THAT THE ELECTRICITY THAT HAS BEEN SO TRANSMITTED OR 368
DELIVERED IS FOR RESALE BY THE RURAL ELECTRIC COMPANY. THIS
DIVISION DOES NOT APPLY TO TAX YEARS 2002 AND THEREAFTER. 369
(4) All receipts from the sale of merchandise; 371
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(4)(5) All receipts from sales to other public utilities, 373
except railroad, telegraph, and telephone companies, for resale, 374
provided the other public utility is required to file a statement 375
pursuant to section 5727.31 of the Revised Code. 376
(C) In ascertaining and determining the gross receipts of 378
a telephone company, the commissioner shall exclude all of the 380
following:
(1) Receipts of amounts billed on behalf of other 382
entities; 383
(2) Receipts from sales to other telephone companies for 385
resale, as defined in division (G) of section 5727.32 of the 386
Revised Code; 387
(3) Receipts from incoming or outgoing wide area 389
transmission service or wide area transmission type service, 391
including eight hundred or eight-hundred-type service; 392
(4) Receipts from private communications service as 394
described in division (AA)(2) of section 5739.01 of the Revised 396
Code;
(5) Receipts from sales to providers of telecommunications 399
service for resale, as defined in division (G) of section 5727.32 400
of the Revised Code. 401
(D) IN ASCERTAINING AND DETERMINING THE GROSS RECEIPTS OF 403
AN ELECTRIC COMPANY, THE COMMISSIONER SHALL EXCLUDE RECEIPTS 404
DERIVED FROM THE PROVISION OF ELECTRICITY AND OTHER SERVICES TO A 406
QUALIFIED FORMER OWNER OF THE PRODUCTION FACILITIES THAT 407
GENERATED THE ELECTRICITY FROM WHICH THOSE RECEIPTS WERE DERIVED. 408
THIS DIVISION DOES NOT APPLY TO TAX YEARS 2002 AND THEREAFTER. 409
AS USED IN THIS DIVISION, A "QUALIFIED FORMER OWNER" MEANS A 410
PERSON WHO MEETS BOTH OF THE FOLLOWING CONDITIONS: 411
(1) ON OR BEFORE OCTOBER 11, 1991, THE PERSON HAD SOLD TO 413
AN ELECTRIC COMPANY PART OF THE PRODUCTION FACILITY AT WHICH THE 414
ELECTRICITY IS GENERATED, AND, FOR AT LEAST TWENTY YEARS PRIOR TO 415
THAT SALE, THE FACILITY WAS USED TO GENERATE ELECTRICITY, BUT IT 416
WAS NOT OWNED IN WHOLE OR PART DURING THAT PERIOD BY AN ELECTRIC 417
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COMPANY. 418
(2) AT THE TIME THE ELECTRIC COMPANY PROVIDED THE 420
ELECTRICITY OR OTHER SERVICES FOR WHICH THE EXCLUSION IS CLAIMED, 421
THE PERSON, OR A SUCCESSOR OR ASSIGN OF THE PERSON, OWNED NOT 422
LESS THAN A TWENTY PER CENT OWNERSHIP OF THE PRODUCTION FACILITY 423
AND THE RIGHTS TO NOT LESS THAN TWENTY PER CENT OF THE PRODUCTION 424
OF THAT FACILITY.
(E) In ascertaining and determining the gross receipts of 426
a natural gas company, the commissioner shall exclude receipts of 427
amounts billed on behalf of other entities AND RECEIPTS RECEIVED 429
TO PAY THE TAX IMPOSED BY SECTION 5727.811 OF THE REVISED CODE. 430
Transportation and billing and collection fees charged to other 432
entities shall be included in the gross receipts of a natural gas 433
company.
(F) In ascertaining and determining the gross receipts of 435
a combined electric and gas company subject to the tax imposed by 436
section 5727.30 of the Revised Code, the commissioner shall 438
exclude all receipts derived from operating as a natural gas 439
company that are subject to the tax imposed by section 5727.24 of 440
the Revised Code. 441
(G) Except as provided in division (H) of this section, 444
the amount ascertained by the commissioner under this section, 445
less a deduction of twenty-five thousand dollars, shall be the 446
gross receipts of such companies for business done within this 447
state for that year.
(H) The amount ascertained by the commissioner under this 449
section, less the following deduction, shall be the gross 450
receipts of a natural gas company or combined electric and gas 452
company for business done within this state:
(1) For a natural gas company that files quarterly returns 454
of the tax imposed by section 5727.24 of the Revised Code, six 455
thousand two hundred fifty dollars for each quarterly return; 457
(2) For a natural gas company that files an annual return 459
of the tax imposed by section 5727.24 of the Revised Code, 460
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twenty-five thousand dollars for each annual return; 462
(3) For a combined electric and gas company, twenty-five 464
thousand dollars on the annual statement filed under section 465
5727.31 of the Revised Code. A combined electric and gas company 466
shall not be entitled to a deduction in computing gross receipts 467
subject to the tax imposed by section 5727.24 of the Revised 468
Code.
Sec. 5727.80. As used in sections 5727.80 to 5727.95 of 477
the Revised Code: 479
(A) "Electric distribution company" means either of the 482
following:
(1) A person who distributes electricity through a meter 484
of an end user in this state; 485
(2) The end user of electricity in this state, if the end 488
user obtains electricity that is not distributed or transmitted 489
to the end user by an electric distribution company that is 490
required to remit the tax imposed by section 5727.81 of the 491
Revised Code. "Electric distribution company" does not include 493
the end user of electricity in this state who self-generates 494
electricity that is used directly by that end user on the same 495
site that the electricity is generated. 496
(B) "Kilowatt hour" means one thousand watt hours of 498
electricity. 499
(C) "Meter FOR AN ELECTRIC DISTRIBUTION COMPANY, "METER of 501
an end user in this state" means the last meter used to measure 503
the kilowatt hours distributed by an electric distribution 504
company to a location in this state, the last meter located 505
outside of this state that is used to measure the kilowatt hours 506
consumed at a location in this state, or, if no meter is used, 507
the estimated kilowatt hours distributed to an unmetered location 508
in this state.
(D) "Person" has the same meaning as in section 5701.01 of 510
the Revised Code, but also includes a political subdivision of 511
the state. 512
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(E) "Municipal electric utility" means a municipal 515
corporation that owns or operates a system for the distribution 516
of electricity.
(F) "Qualified end user" means an end user of electricity 518
that uses more than three million kilowatt hours of electricity 520
at one manufacturing location in this state for a calendar day 521
for use in a manufacturing process that features an
electrochemical reaction in which electrons from direct current 523
electricity remain a part of the product being manufactured. 524
(G) "Self-assessing purchaser" means a purchaser that 526
meets all the requirements of, and pays the excise tax in 527
accordance with, division (C) of section 5727.81 of the Revised 528
Code.
(H) "Six month revenue differential for self-assessing 530
purchasers" means thirty-one million six hundred fifty thousand 531
dollars less the amount paid under division (C)(1)(a) of section 532
5727.81 of the Revised Code by all self-assessing purchasers for 533
the six-month period ending in the month prior to the date of the 534
calculations required under divisions (C)(1)(b) and (c) of 535
section 5727.81 of the Revised Code. 536
(I) "Twelve month revenue differential for self-assessing 538
purchasers" means sixty-three million three hundred thousand 539
dollars less the amount paid under division (C)(1)(a) of section 540
5727.81 of the Revised Code by all self-assessing purchasers for 541
the twelve-month period ending in the month prior to the date of 542
the calculation required under division (C)(1)(d) of section 543
5727.81 of the Revised Code. 544
(J) "NATURAL GAS DISTRIBUTION COMPANY" MEANS A PUBLIC 547
UTILITY, AS DEFINED IN SECTION 4905.02 OF THE REVISED CODE, WHO
IS SUBJECT TO THE EXCISE TAX IMPOSED BY SECTION 5727.24 OR 548
5727.30 OF THE REVISED CODE AND THAT DISTRIBUTES NATURAL GAS 549
THROUGH A METER OF AN END USER IN THIS STATE.
(K) "MCF" MEANS ONE THOUSAND CUBIC FEET. 551
(L) FOR A NATURAL GAS DISTRIBUTION COMPANY, "METER OF AN 553
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END USER IN THIS STATE" MEANS THE LAST METER USED TO MEASURE THE 554
MCF OF NATURAL GAS DISTRIBUTED BY A NATURAL GAS DISTRIBUTION 555
COMPANY TO A LOCATION IN THIS STATE, THE LAST METER LOCATED 557
OUTSIDE OF THIS STATE THAT IS USED TO MEASURE THE NATURAL GAS 558
CONSUMED AT A LOCATION IN THIS STATE, OR, IF NO METER IS USED, 559
THE ESTIMATED MCF OF NATURAL GAS DISTRIBUTED TO AN UNMETERED 560
LOCATION IN THIS STATE.
(M) "FLEX CUSTOMER" MEANS AN INDUSTRIAL OR A COMMERCIAL 562
FACILITY THAT HAS CONSUMED MORE THAN ONE BILLION CUBIC FEET OF 563
NATURAL GAS A YEAR AT A SINGLE LOCATION DURING ANY OF THE 564
PREVIOUS FIVE YEARS, OR AN INDUSTRIAL OR A COMMERCIAL END USER OF 565
NATURAL GAS THAT PURCHASES NATURAL GAS DISTRIBUTION SERVICES FROM 566
A NATURAL GAS DISTRIBUTION COMPANY AT DISCOUNTED RATES OR CHARGES 568
ESTABLISHED IN ANY OF THE FOLLOWING:
(1) A SPECIAL ARRANGEMENT SUBJECT TO REVIEW AND REGULATION 570
BY THE PUBLIC UTILITIES COMMISSION UNDER SECTION 4905.31 OF THE 571
REVISED CODE; 572
(2) A SPECIAL ARRANGEMENT WITH A NATURAL GAS DISTRIBUTION 574
COMPANY PURSUANT TO A MUNICIPAL ORDINANCE; 575
(3) A VARIABLE RATE SCHEDULE THAT PERMITS RATES TO VARY 577
BETWEEN DEFINED AMOUNTS, PROVIDED THAT THE SCHEDULE IS ON FILE 578
WITH THE PUBLIC UTILITIES COMMISSION. 579
AN END USER THAT MEETS THIS DEFINITION ON JANUARY 1, 2000, 581
AND THEREAFTER IS A "FLEX CUSTOMER" FOR PURPOSES OF DETERMINING 582
THE RATE OF TAXATION UNDER DIVISION (D) OF SECTION 5727.811 OF 583
THE REVISED CODE. 584
Sec. 5727.81. (A) For the purpose of raising revenue for 594
public education and state and local government operations, an 595
excise tax is hereby levied and imposed on an electric 596
distribution company for all electricity distributed by such 597
company that has May 1, 2001, as part of its measurement period, 598
at the following rates per kilowatt hour of electricity 599
distributed in a thirty-day period by the company through a meter 600
of an end user in this state:
14
KILOWATT HOURS DISTRIBUTED TO RATE PER 603
AN END USER KILOWATT HOUR 604
For the first 2,000 $.00465 605
For the next 2,001 to 15,000 $.00419 606
For 15,001 and above $.00363 607
The electric distribution company shall base the monthly 610
tax on the kilowatt hours of electricity distributed to an end 611
user through the meter of the end user that is not measured for a 612
thirty-day period by dividing the days in the measurement period 614
into the total kilowatt hours measured during the measurement 615
period to obtain a daily average usage. The tax shall be 616
determined by obtaining the sum of divisions (A)(1), (2), and (3) 617
of this section and multiplying that amount by the number of days
in the measurement period: 618
(1) Multiplying $0.00465 per kilowatt hour for the first 620
sixty-seven kilowatt hours distributed using a daily average; 621
(2) Multiplying $0.00419 for the next sixty-eight to five 623
hundred kilowatt hours distributed using a daily average; 624
(3) Multiplying $0.00363 for the remaining kilowatt hours 626
distributed using a daily average. 627
Except as provided in division (C) of this section, the 629
electric distribution company shall pay the tax to the treasurer 630
of state in accordance with section 5727.82 of the Revised Code. 632
Only the distribution of electricity through a meter of an 635
end user in this state shall be used by the electric distribution 636
company to compute the amount or estimated amount of tax due. In 637
the event a meter is not actually read for a measurement period, 638
the estimated kilowatt hours distributed by an electric 639
distribution company to collect its distribution charges may be 640
used.
(B) Except as provided in division (C) of this section, 642
each electric distribution company shall pay the tax imposed by 643
this section in all of the following circumstances: 644
(1) The electricity is distributed by the company through 646
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a meter of an end user in this state; 647
(2) The company is distributing electricity through a 649
meter located in another state, but the electricity is consumed 650
in this state in the manner prescribed by the tax commissioner; 652
(3) The company is distributing electricity in this state 654
without the use of a meter, but the electricity is consumed in 655
this state as estimated and in the manner prescribed by the tax 657
commissioner.
(C)(1)(a) A commercial or industrial purchaser that 660
receives electricity through a meter of an end user in this state 661
and consumes, over the course of the previous calendar year, more
than one hundred twenty million kilowatt hours of electricity may 662
elect to self-assess the excise tax imposed by this section at 663
the rate of $.00075 per kilowatt hour and four per cent of the 664
total price of electricity delivered through a meter of an end 666
user in this state. Payment of the tax shall be made directly to 667
the treasurer of state in accordance with divisions (A)(3)(4) and 668
(4)(5) of section 5727.82 of the Revised Code or, if the electric 670
distribution company serving the self-assessing purchaser is a 671
municipal electric utility and the purchaser is within the 672
municipal corporation's corporate limits, to such municipal 673
corporation's general fund in accordance with division (A)(2)(3) 675
of section 5727.82 of the Revised Code, and upon paying in this 676
manner, the self-assessing purchaser shall not be required to pay 677
the excise tax to the electric distribution company from which 678
its electricity is delivered. 679
(b) On or before December 10, 2001, the tax commissioner 681
shall calculate the six month revenue differential for 682
self-assessing purchasers. If the six month revenue differential 683
is greater than five hundred thousand dollars, the tax 684
commissioner shall increase the percentage of total price tax 685
rate to be charged for the six-month period beginning in the 686
month following that in which the calculation is done. The new 687
tax rate shall be the rate in effect during the current period 688
16
multiplied by the sum of one plus the product of (i) a fraction, 689
the numerator of which is the six month revenue differential 690
multiplied by two and the denominator of which is the amount paid 691
during the period by all self-assessing purchasers on the 692
percentage of total price basis and (ii) a fraction, the 693
numerator of which is total kilowatt hours consumed during the 694
period by self-assessing purchasers and the denominator of which 695
is eleven billion twenty-five million.
If the six month revenue differential is less than negative 697
five hundred thousand dollars, the tax commissioner shall 698
decrease the percentage of total price tax rate to be charged for 699
the six-month period beginning in the month following that in 700
which the calculation is made. The new tax rate shall be the 701
rate in effect during the current period multiplied by the sum of 702
one plus the product of (i) a fraction, the numerator of which is 703
the six month revenue differential multiplied by two and the 704
denominator of which is the amount paid during the period by all 705
self-assessing purchasers on the percentage of total price basis 706
and (ii) a fraction, the numerator of which is eleven billion 707
twenty-five million and the denominator of which is total 708
kilowatt hours consumed during the period by self-assessing 709
purchasers.
(c) On or before June 10, 2002, the tax commissioner shall 711
calculate the six month revenue differential for self-assessing 712
purchasers. If the six month revenue differential is greater 713
than five hundred thousand dollars, the tax commissioner shall 714
increase the percentage of total price tax rate to be charged for 715
the twelve-month period beginning in the month following that in 716
which the calculation is made. The new tax rate shall be the 717
rate in effect during the current period multiplied by the sum of 718
one plus the product of (i) a fraction, the numerator of which is 719
the six month revenue differential and the denominator of which 720
is the amount paid during the period by all self-assessing 721
purchasers on the percentage of total price basis and (ii) a 722
17
fraction, the numerator of which is total kilowatt hours consumed 723
during the period by self-assessing purchasers and the 724
denominator of which is eleven billion twenty-five million. 725
If the six month revenue deferential is less than negative 727
five hundred thousand dollars, the tax commissioner shall 728
decrease the percentage of total price tax rate to be charged for 729
the twelve-month period beginning in the month following that in 730
which the calculation is made. The new tax rate shall be the 731
rate in effect during the current period multiplied by the sum of 732
one plus the product of (i) a fraction, the numerator of which is 733
the six month revenue differential and the denominator of which 734
is the amount paid during the period by all self-assessing 735
purchasers on the percentage of total price basis and (ii) a 736
fraction, the numerator of which is eleven billion twenty-five 737
million and the denominator of which is total kilowatt hours 738
consumed during the period by self-assessing purchasers. 739
(d) On or before June 10, 2003, 2004, 2005, 2006, and 741
2007, the tax commissioner shall calculate the twelve month 742
revenue differential for self-assessing purchasers. If the 743
twelve month revenue differential is greater than one million 744
dollars, the tax commissioner shall increase the percentage of 745
total price tax rate to be charged for the twelve-month period 746
beginning in the month following that in which the calculation is 747
made, except that the rate calculated in 2007 shall become the 748
permanent tax rate. In each year, the new tax rate shall be the 749
rate in effect during the current period multiplied by the sum of 750
one plus a fraction, the numerator of which is the twelve month 751
revenue differential and the denominator of which is the amount 752
paid during the period by all self-assessing purchasers on the 753
percentage of total price basis. 754
If the revenue differential is less than negative one 756
million dollars, the tax commissioner shall decrease the 757
percentage of total price tax rate to be charged for the 758
twelve-month period beginning in the month following that in 759
18
which the calculation is made, except that the rate calculated in 760
2007 shall become the permanent tax rate. In each year, the new 761
tax rate shall be the rate in effect during the current period 762
multiplied by the sum of one plus a fraction, the numerator of 763
which is the twelve month revenue differential and the 764
denominator of which is the amount paid during the period by all 765
self-assessing purchasers on the percentage of price basis. 766
(2) Application for registration as a self-assessing 768
purchaser shall be made on a form prescribed by the tax 769
commissioner. At the time of making the application and by the 771
first day of May of each year, excluding May 1, 2000, a 772
self-assessing purchaser shall pay a fee of five hundred dollars 773
to the treasurer of state for deposit to the kilowatt hour excise 774
tax administration fund, which is hereby created in the state 775
treasury. Money in the fund shall be used to defray the tax 776
commissioner's cost in administering the tax owed under section 777
5727.81 of the Revised Code by self-assessing purchasers. After 778
the application is approved by the tax commissioner, the 779
registration shall remain in effect until canceled by the 780
registrant upon written notification to the commissioner of the 781
election to pay the tax in accordance with division (A) of this 782
section, or by the tax commissioner for not paying the tax or fee 783
under division (C) of this section, or meeting the qualifications 784
in division (C)(1) of this section. The tax commissioner shall 785
give written notice to the electric distribution company from 787
which electricity is delivered to a self-assessing purchaser of 788
the purchaser's self-assessing status, and the electric 789
distribution company is relieved of the obligation to pay the tax 791
imposed by division (A) of this section for electricity 792
distributed to that self-assessing purchaser until it is notified 793
by the tax commissioner that the self-assessing purchaser's 794
registration is canceled. Within fifteen days of notification of 795
the canceled registration, the electric distribution company 796
shall be responsible for payment of the tax imposed by division 797
19
(A) of this section on electricity distributed to a purchaser 798
that is no longer registered as a self-assessing purchaser. A 800
self-assessing purchaser with a canceled registration must file a 801
report and remit the tax imposed by division (A) of this section 802
on all electricity it receives for any measurement period prior 803
to the tax being reported and paid by the electric distribution 805
company. A self-assessing purchaser whose registration is 806
canceled by the tax commissioner is not eligible to register as a 807
self-assessing purchaser for two years after the registration is
canceled. 808
(D) The tax imposed by this section does not apply to the 811
distribution of any kilowatt hours of electricity to the federal 812
government, to an end user located at a federal facility that 813
uses electricity for the enrichment of uranium, or to an end user 814
for any day the end user is a qualified end user. The exemption 815
under this division for a qualified end user only applies to the 816
manufacturing location where the qualified end user uses more 817
than three million kilowatt hours per day.
Sec. 5727.811. (A) FOR THE PURPOSE OF RAISING REVENUE FOR 819
PUBLIC EDUCATION AND STATE AND LOCAL GOVERNMENT OPERATIONS, AN 820
EXCISE TAX IS HEREBY LEVIED ON EVERY NATURAL GAS DISTRIBUTION 822
COMPANY FOR ALL NATURAL GAS VOLUMES BILLED BY, OR ON BEHALF OF, 823
THE COMPANY ON AND AFTER JULY 1, 2001. EXCEPT AS PROVIDED IN
DIVISIONS (C) OR (D) OF THIS SECTION, THE TAX SHALL BE LEVIED AT 825
THE FOLLOWING RATES PER MCF OF NATURAL GAS DISTRIBUTED BY THE 827
COMPANY THROUGH A METER OF AN END USER IN THIS STATE: 828
MCF DISTRIBUTED TO AN END USER RATE PER MCF 832
FOR THE FIRST 100 MCF PER MONTH $.1593 833
FOR THE NEXT 101 TO 2000 MCF PER MONTH $.0877 835
FOR 2001 AND ABOVE MCF PER MONTH $.0411 836
(B) A NATURAL GAS DISTRIBUTION COMPANY SHALL BASE THE TAX 839
ON THE MCF OF NATURAL GAS DISTRIBUTED TO AN END USER THROUGH THE 840
METER OF THE END USER IN THIS STATE THAT IS ESTIMATED TO BE 841
CONSUMED BY THE END USER AS REFLECTED ON THE END USER'S CUSTOMER 843
20
STATEMENT FROM THE NATURAL GAS DISTRIBUTION COMPANY. THE NATURAL 844
GAS DISTRIBUTION COMPANY SHALL PAY THE TAX LEVIED BY THIS SECTION 845
TO THE TREASURER OF STATE IN ACCORDANCE WITH SECTION 5727.82 OF 846
THE REVISED CODE.
(C) A NATURAL GAS DISTRIBUTION COMPANY WITH FIFTY THOUSAND 849
CUSTOMERS OR LESS MAY ELECT TO APPLY THE RATES SPECIFIED IN 850
DIVISION (A) OF THIS SECTION TO THE AGGREGATE OF THE NATURAL GAS 851
DISTRIBUTED BY THE COMPANY THROUGH THE METER OF ALL ITS CUSTOMERS 852
IN THIS STATE, AND UPON SUCH ELECTION, THIS METHOD SHALL BE USED 853
TO DETERMINE THE AMOUNT OF TAX TO BE PAID BY SUCH COMPANY. 854
(D) A NATURAL GAS DISTRIBUTION COMPANY SHALL PAY THE TAX 857
IMPOSED BY THIS SECTION AT THE RATE OF $.02 PER MCF OF NATURAL 858
GAS DISTRIBUTED BY THE COMPANY THROUGH THE METER OF A FLEX 860
CUSTOMER. THE NATURAL GAS DISTRIBUTION COMPANY CORRESPONDINGLY
SHALL REDUCE THE PER MCF RATE THAT IT CHARGES THE FLEX CUSTOMER 861
FOR NATURAL GAS DISTRIBUTION SERVICES BY $.02 PER MCF OF NATURAL 862
GAS DISTRIBUTED TO THE FLEX CUSTOMER. 863
(E) EXCEPT AS PROVIDED IN DIVISION (F) OF THIS SECTION, 865
EACH NATURAL GAS DISTRIBUTION COMPANY SHALL PAY THE TAX IMPOSED 866
BY THIS SECTION IN ALL OF THE FOLLOWING CIRCUMSTANCES: 867
(1) THE NATURAL GAS IS DISTRIBUTED BY THE COMPANY THROUGH 869
A METER OF AN END USER IN THIS STATE; 870
(2) THE NATURAL GAS DISTRIBUTION COMPANY IS DISTRIBUTING 872
NATURAL GAS THROUGH A METER LOCATED IN ANOTHER STATE, BUT THE 873
NATURAL GAS IS CONSUMED IN THIS STATE IN THE MANNER PRESCRIBED BY 874
THE TAX COMMISSIONER; 875
(3) THE NATURAL GAS DISTRIBUTION COMPANY IS DISTRIBUTING 877
NATURAL GAS IN THIS STATE WITHOUT THE USE OF A METER, BUT THE 878
NATURAL GAS IS CONSUMED IN THIS STATE AS ESTIMATED AND IN THE 879
MANNER PRESCRIBED BY THE TAX COMMISSIONER. 880
(F) THE TAX LEVIED BY THIS SECTION DOES NOT APPLY TO THE 882
DISTRIBUTION OF NATURAL GAS TO THE FEDERAL GOVERNMENT, THE 883
DISTRIBUTION OF NATURAL GAS USED TO GENERATE ELECTRICITY FOR 884
RESALE, OR ANY NATURAL GAS PRODUCED BY AN END USER IN THIS STATE 885
21
THAT IS CONSUMED BY THAT END USER OR ITS AFFILIATES AND IS NOT 886
DISTRIBUTED THROUGH THE FACILITIES OF A NATURAL GAS COMPANY. 887
Sec. 5727.82. (A)(1) Except as provided in divisions 897
(A)(2)(3) and (D) of this section, by the twentieth day of each 898
month, each electric distribution company required to pay the tax 899
imposed by section 5727.81 of the Revised Code shall file with 901
the treasurer of state a return as prescribed by the tax 902
commissioner and shall make payment of the full amount of tax due 904
for the preceding month. The first payment of this tax shall be
made on or before June 20, 2001. 905
(2) BY THE TWENTIETH DAY OF MAY, AUGUST, NOVEMBER, AND 908
FEBRUARY, EACH NATURAL GAS DISTRIBUTION COMPANY REQUIRED TO PAY 909
THE TAX IMPOSED BY SECTION 5727.811 OF THE REVISED CODE SHALL 910
FILE WITH THE TREASURER OF STATE A RETURN AS PRESCRIBED BY THE 911
TAX COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF TAX 912
DUE FOR THE PRECEDING QUARTER. THE FIRST PAYMENT OF THIS TAX
SHALL BE MADE ON OR BEFORE NOVEMBER 20, 2001, FOR THE QUARTER 913
ENDING SEPTEMBER 30, 2001. 914
(3) If the electric distribution company required to pay 916
the tax imposed by section 5727.81 of the Revised Code is a 919
municipal electric utility, it may retain in its general fund 920
that portion of the tax on the kilowatt hours distributed to end 921
users located within the boundaries of the municipal corporation. 922
However, the municipal electric utility shall make payment in 923
accordance with division (A)(1) of this section of the tax due on 925
the kilowatt hours distributed to end users located outside the 926
boundaries of the municipal corporation. 927
(3)(4) By the twentieth day of each month, each 930
self-assessing purchaser that under division (C) of section 931
5727.81 of the Revised Code pays directly to the treasurer of 933
state the tax imposed by section 5727.81 of the Revised Code 934
shall file with the treasurer of state a return as prescribed by 935
the tax commissioner and shall make payment of the full amount of 936
the tax due for the preceding month. 937
22
(4)(5) As prescribed by the tax commissioner, the A return 940
shall be signed by the company or self-assessing purchaser 941
required to file it, or an authorized employee, officer, or agent 942
of the company or purchaser. The treasurer of state shall mark 943
on the return the date it was received and indicate payment or 944
nonpayment of the tax shown to be due on the return. The 945
treasurer of state immediately shall transmit all returns to the 946
tax commissioner. The return shall be deemed filed when received 947
by the treasurer of state.
(B) Any NATURAL GAS DISTRIBUTION COMPANY, electric 949
distribution company, or self-assessing purchaser required by 951
this section to file a return who fails to file it and pay the 952
tax within the period prescribed shall pay an additional charge 953
of fifty dollars or ten per cent of the tax required to be paid 954
for the reporting period, whichever is greater. The tax 955
commissioner may collect the additional charge by assessment 956
pursuant to section 5727.89 of the Revised Code. The 958
commissioner may abate all or a portion of the additional charge 959
and may adopt rules governing such abatements. 960
(C) If any tax due is not paid timely in accordance with 963
this section, the NATURAL GAS DISTRIBUTION COMPANY, electric 964
distribution company, or self-assessing purchaser liable for the 965
tax shall pay interest, calculated at the rate per annum 967
prescribed by section 5703.47 of the Revised Code, from the date 969
the tax payment was due to the date of payment or to the date an 970
assessment is issued, whichever occurs first. Interest shall be 971
paid in the same manner as the tax, and the commissioner may 972
collect the interest by assessment pursuant to section 5727.89 of 974
the Revised Code.
(D) Not later than the tenth day of each month, a 976
qualified end user shall report in writing to the electric 977
distribution company that distributes electricity to the end user 978
the kilowatt hours that were consumed as a qualified end user for 979
the prior month and the number of days, if any, on which the end 980
23
user was not a qualified end user. For each calendar day the end 981
user was not a qualified end user, the end user shall report in 982
writing to the electric distribution company the number of 983
kilowatt hours used on that day, and the electric distribution 984
company shall pay the tax imposed under section 5727.81 of the 985
Revised Code on each kilowatt hour that was not distributed to a 986
qualified end user. The electric distribution company may rely 987
in good faith on a qualified end user's report filed under this 988
division. If it is determined that the end user was not a 989
qualified end user for any calendar day or the quantity of 990
electricity used by the qualified end user was overstated, the 991
tax commissioner shall assess and collect any tax imposed under 992
section 5727.81 of the Revised Code directly from the qualified 994
end user. As requested by the commissioner, each end user
reporting to an electric distribution company that it is a 995
qualified end user shall provide documentation to the 996
commissioner that establishes the volume of electricity consumed 998
daily by the qualified end user. 999
Sec. 5727.83. (A) An A NATURAL GAS DISTRIBUTION COMPANY, 1,008
AN electric distribution company, or A self-assessing purchaser 1,010
shall remit each monthly tax payment by electronic funds transfer 1,012
as prescribed by divisions (B) and (C) of this section. 1,013
The tax commissioner shall notify each NATURAL GAS 1,015
DISTRIBUTION COMPANY, electric distribution company, and 1,017
self-assessing purchaser of the obligation to remit taxes by 1,018
electronic funds transfer, shall maintain an updated list of 1,019
those companies and purchasers, and shall timely certify to the 1,021
treasurer of state the list and any additions thereto or 1,022
deletions therefrom. Failure by the tax commissioner to notify a 1,023
company or self-assessing purchaser subject to this section to 1,024
remit taxes by electronic funds transfer does not relieve the 1,025
company or self-assessing purchaser of its obligation to remit
taxes in that manner. 1,026
(B) An A NATURAL GAS DISTRIBUTION COMPANY, AN electric 1,028
24
distribution company, or A self-assessing purchaser required by 1,030
this section to remit payments by electronic funds transfer shall 1,032
remit such payments to the treasurer of state in the manner 1,033
prescribed by rules adopted by the treasurer of state under 1,034
section 113.061 of the Revised Code, and on or before the dates 1,035
specified under section 5727.82 of the Revised Code. The payment
of taxes by electronic funds transfer does not affect a company's 1,037
or self-assessing purchaser's obligation to file the monthly A 1,038
return as required under section 5727.82 of the Revised Code. 1,039
(C) An A NATURAL GAS DISTRIBUTION COMPANY, AN electric 1,041
distribution company, or A self-assessing purchaser required by 1,043
this section to remit taxes by electronic funds transfer may
apply to the treasurer of state in the manner prescribed by the 1,045
treasurer of state to be excused from that requirement. The 1,046
treasurer of state may excuse the company or self-assessing
purchaser from remittance by electronic funds transfer for good 1,048
cause shown for the period of time requested by the company or 1,049
self-assessing purchaser or for a portion of that period. The 1,050
treasurer of state shall notify the tax commissioner and the 1,052
company or self-assessing purchaser of the treasurer of state's
decision as soon as is practicable. 1,053
(D) If an A NATURAL GAS DISTRIBUTION COMPANY, AN electric 1,055
distribution company, or A self-assessing purchaser required by 1,057
this section to remit taxes by electronic funds transfer remits 1,059
those taxes by some means other than by electronic funds transfer 1,060
as prescribed by this section and the rules adopted by the 1,061
treasurer of state, and the treasurer of state determines that 1,062
such failure was not due to reasonable cause or was due to 1,063
willful neglect, the treasurer of state shall notify the tax 1,064
commissioner of the failure to remit by electronic funds transfer 1,065
and shall provide the commissioner with any information used in 1,066
making that determination. The tax commissioner may collect an 1,067
additional charge by assessment in the manner prescribed by 1,068
section 5727.89 of the Revised Code. The additional charge shall 1,069
25
equal five per cent of the amount of the taxes required to be 1,070
paid by electronic funds transfer, but shall not exceed five 1,071
thousand dollars. Any additional charge assessed under this 1,072
section is in addition to any other penalty or charge imposed 1,073
under this chapter, and shall be considered as revenue arising 1,074
from the tax imposed under this chapter. The tax commissioner 1,075
may abate all or a portion of such a charge and may adopt rules 1,076
governing such abatements.
No additional charge shall be assessed under this division 1,078
against A NATURAL GAS DISTRIBUTION COMPANY, an electric 1,079
distribution company, or A self-assessing purchaser that has been 1,081
notified of its obligation to remit taxes under this section and 1,083
that remits its first two tax payments after such notification by 1,084
some means other than electronic funds transfer. The additional 1,085
charge may be assessed upon the remittance of any subsequent tax 1,086
payment that the company or purchaser remits by dome means other 1,088
than electronic funds transfer.
Sec. 5727.84. (A) As used in this section and sections 1,097
5727.85, 5727.86, and 5727.87 of the Revised Code: 1,099
(1) "School district" means a city, local, or exempted 1,101
village school district. 1,102
(2) "Joint vocational school district" means a joint 1,104
vocational school district created under section 3311.16 of the 1,105
Revised Code, and includes a cooperative education school 1,107
district created under section 3311.52 or 3311.521 of the Revised 1,108
Code and a county school financing district created under section 1,109
3311.50 of the Revised Code. 1,110
(3) "Local taxing unit" means a subdivision or taxing 1,112
unit, as defined in section 5705.01 of the Revised Code, a park 1,113
district created under Chapter 1545. of the Revised Code, or a 1,115
township park district established under section 511.23 of the
Revised Code, but excludes school districts and joint vocational 1,118
school districts.
(4) "State education aid" means the sum of the state basic 1,120
26
aid and state special education aid amounts computed for a school 1,121
district under divisions (A) and (C) of section 3317.022 of the 1,122
Revised Code. 1,124
(5) "State education aid offset" means the amount 1,126
certified for each school district under division (A)(1) of 1,127
section 5727.85 of the Revised Code. 1,128
(6) "Adjusted total taxable value" has the same meaning as 1,130
in section 3317.02 of the Revised Code. 1,131
(7) "ELECTRIC COMPANY TAX VALUE LOSS" MEANS THE AMOUNT 1,133
DETERMINED UNDER DIVISION (D) OF THIS SECTION. 1,134
(8) "NATURAL GAS COMPANY TAX VALUE LOSS" MEANS THE AMOUNT 1,136
DETERMINED UNDER DIVISION (E) OF THIS SECTION. 1,137
(9) "Tax value loss" means the amount determined under 1,139
division (C) of this section SUM OF THE ELECTRIC COMPANY TAX 1,140
VALUE LOSS AND THE NATURAL GAS COMPANY TAX VALUE LOSS. 1,141
(8)(10) "Fixed-rate levy" means any tax levied on property 1,143
other than a fixed-sum levy. 1,145
(9)(11) "Fixed-rate levy loss" means the amount determined 1,147
under division (D)(G) of this section. 1,149
(10)(12) "Fixed-sum levy" means a tax levied on property 1,151
at whatever rate is required to produce a specified amount of tax 1,153
money or to pay debt charges, and includes school district 1,154
emergency levies imposed pursuant to section 5705.194 of the 1,155
Revised Code.
(11)(13) "Fixed-sum levy loss" means the amount determined 1,157
under division (E)(H) of this section. 1,159
(12)(14) "Consumer price index" means the consumer price 1,161
index (all items, all urban consumers) prepared by the bureau of 1,163
labor statistics of the United States department of labor. 1,164
(B) All money arising from the tax imposed by section 1,166
5727.81 of the Revised Code shall be credited as follows: 1,167
(1) Fifty-nine and nine hundred seventy-six 1,169
one-thousandths per cent, plus an amount equal to SEVENTY PER 1,170
CENT OF the TOTAL state education aid offset, shall be credited 1,172
27
to the general revenue fund.
(2) Two and six hundred forty-six one-thousandths per cent 1,174
shall be credited to the local government fund, for distribution 1,175
in accordance with section 5747.50 of the Revised Code. 1,176
(3) Three hundred seventy-eight one-thousandths per cent 1,178
shall be credited to the local government revenue assistance 1,179
fund, for distribution in accordance with section 5747.61 of the 1,180
Revised Code. 1,181
(4) Twenty-five and nine-tenths per cent, less an amount 1,183
equal to SEVENTY PER CENT OF the TOTAL state education aid 1,184
offset, shall be credited to the school district property tax 1,186
replacement fund, which is hereby created in the state treasury 1,187
for the purpose of making the payments described in section 1,188
5727.85 of the Revised Code.
(5) Eleven and one-tenth per cent shall be credited to the 1,190
local government property tax replacement fund, which is hereby 1,191
created in the state treasury for the purpose of making the 1,192
payments described in section 5727.86 of the Revised Code. 1,193
(6) Beginning in the fiscal year in which payments are 1,195
required to be made under sections 5727.85 and 5727.86 of the 1,196
Revised Code, if the revenue arising from the tax levied by 1,197
section 5727.81 of the Revised Code is less than five hundred 1,199
fifty-two million dollars, the amount credited to the general 1,200
revenue fund under division (B)(1) of this section shall be 1,201
reduced by the amount necessary to credit to each of the funds in 1,202
divisions (B)(2), (3), (4), and (5) of this section the amount it 1,203
would have received if the tax did raise five hundred fifty-two 1,204
million dollars for that fiscal year. The tax commissioner shall 1,205
certify to the director of budget and management the amounts that 1,206
shall be credited under this division.
(C) ALL MONEY ARISING FROM THE TAX IMPOSED BY SECTION 1,209
5727.811 OF THE REVISED CODE SHALL BE CREDITED AS FOLLOWS: 1,210
(1) SEVENTY PER CENT, LESS AN AMOUNT EQUAL TO THIRTY PER 1,212
CENT OF THE TOTAL STATE EDUCATION AID OFFSET, SHALL BE CREDITED 1,213
28
TO THE SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND FOR THE 1,214
PURPOSE OF MAKING THE PAYMENTS DESCRIBED IN SECTION 5727.85 OF 1,215
THE REVISED CODE. 1,216
(2) THIRTY PER CENT SHALL BE CREDITED TO THE LOCAL 1,218
GOVERNMENT PROPERTY TAX REPLACEMENT FUND FOR THE PURPOSE OF 1,219
MAKING THE PAYMENTS DESCRIBED IN SECTION 5727.86 OF THE REVISED 1,220
CODE.
(3) AN AMOUNT EQUAL TO THIRTY PER CENT OF THE TOTAL STATE 1,222
EDUCATION AID OFFSET SHALL BE CREDITED TO THE GENERAL REVENUE 1,223
FUND.
(4) BEGINNING IN THE FISCAL YEAR IN WHICH PAYMENTS ARE 1,225
REQUIRED TO BE MADE UNDER SECTIONS 5727.85 AND 5727.86 OF THE 1,226
REVISED CODE, IF THE REVENUE ARISING FROM THE TAX LEVIED BY 1,228
SECTION 5727.811 OF THE REVISED CODE IS LESS THAN NINETY MILLION 1,229
DOLLARS, THE AMOUNT CREDITED TO THE GENERAL REVENUE FUND UNDER 1,230
DIVISION (C)(3) OF THIS SECTION SHALL BE REDUCED BY THE AMOUNT 1,231
NECESSARY TO CREDIT TO EACH OF THE FUNDS IN DIVISIONS (C)(1) AND 1,233
(2) OF THIS SECTION THE AMOUNT THAT IT WOULD HAVE RECEIVED IF THE 1,234
TAX DID RAISE NINETY MILLION DOLLARS FOR THAT FISCAL YEAR. THE 1,235
TAX COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 1,236
MANAGEMENT THE AMOUNTS THAT SHALL BE CREDITED UNDER THIS 1,237
DIVISION.
(D) Not later than January 1, 2002, the tax commissioner 1,240
shall determine for each taxing district its ELECTRIC COMPANY tax 1,241
value loss, which is the sum of the amounts described in 1,243
divisions (C)(D)(1) and (2) of this section: 1,244
(1) The difference obtained by subtracting the amount 1,246
described in division (C)(D)(1)(b) from the amount described in 1,247
division (C)(D)(1)(a) of this section. 1,248
(a) The value of electric company and rural electric 1,250
company tangible personal property as assessed by the tax 1,251
commissioner for tax year 1998 on a preliminary assessment, or an 1,253
amended preliminary assessment if issued prior to March 1, 1999, 1,254
and as apportioned to the taxing district for tax year 1998; 1,255
29
(b) The value of electric company and rural electric 1,257
company tangible personal property as assessed by the tax 1,258
commissioner for tax year 1998 had the property been apportioned 1,259
to the taxing district for tax year 2001, and assessed at the 1,260
rates in effect for tax year 2001. 1,261
(2) The difference obtained by subtracting the amount 1,263
described in division (C)(D)(2)(b) from the amount described in 1,264
division (C)(D)(2)(a) of this section. 1,265
(a) The three-year average for tax years 1996, 1997, and 1,267
1998 of the assessed value from nuclear fuel materials and 1,268
assemblies assessed against a person under Chapter 5711. of the 1,269
Revised Code from the leasing of them to an electric company for 1,270
those respective tax years, as reflected in the preliminary 1,271
assessments;
(b) The three-year average assessed value from nuclear 1,273
fuel materials and assemblies assessed under division 1,274
(C)(D)(2)(a) of this section for tax years 1996, 1997, and 1998, 1,276
as reflected in the preliminary assessments, using an assessment 1,277
rate of twenty-five per cent. 1,278
(E) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 1,280
SHALL DETERMINE FOR EACH TAXING DISTRICT ITS NATURAL GAS COMPANY 1,281
TAX VALUE LOSS, WHICH IS THE SUM OF THE AMOUNTS DESCRIBED IN 1,283
DIVISIONS (E)(1) AND (2) OF THIS SECTION: 1,284
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 1,286
DESCRIBED IN DIVISION (E)(1)(b) FROM THE AMOUNT DESCRIBED IN 1,287
DIVISION (E)(1)(a) OF THIS SECTION. 1,289
(a) THE VALUE OF ALL NATURAL GAS COMPANY TANGIBLE PERSONAL 1,291
PROPERTY, OTHER THAN PROPERTY DESCRIBED IN DIVISION (E)(2) OF 1,292
THIS SECTION, AS ASSESSED BY THE TAX COMMISSIONER FOR TAX YEAR 1,293
1999 ON A PRELIMINARY ASSESSMENT, OR AN AMENDED PRELIMINARY 1,295
ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 2000, AND APPORTIONED TO 1,296
THE TAXING DISTRICT FOR TAX YEAR 1999;
(b) THE VALUE OF ALL NATURAL GAS COMPANY TANGIBLE PERSONAL 1,298
PROPERTY, OTHER THAN PROPERTY DESCRIBED IN DIVISION (E)(2) OF 1,299
30
THIS SECTION, AS ASSESSED BY THE TAX COMMISSIONER FOR TAX YEAR 1,300
1999 HAD THE PROPERTY BEEN APPORTIONED TO THE TAXING DISTRICT FOR 1,301
TAX YEAR 2001, AND ASSESSED AT THE RATES IN EFFECT FOR TAX YEAR 1,302
2001.
(2) THE DIFFERENCE IN THE VALUE OF CURRENT GAS OBTAINED BY 1,304
SUBTRACTING THE AMOUNT DESCRIBED IN DIVISION (E)(2)(b) FROM THE 1,306
AMOUNT DESCRIBED IN DIVISION (E)(2)(a) OF THIS SECTION. 1,308
(a) THE THREE-YEAR AVERAGE ASSESSED VALUE OF CURRENT GAS 1,310
AS ASSESSED BY THE TAX COMMISSIONER FOR TAX YEARS 1997, 1998, AND 1,311
1999 ON A PRELIMINARY ASSESSMENT, OR AN AMENDED PRELIMINARY 1,313
ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 2001, AND AS APPORTIONED 1,314
IN THE TAXING DISTRICT FOR THOSE RESPECTIVE YEARS;
(b) THE THREE-YEAR AVERAGE ASSESSED VALUE FROM CURRENT GAS 1,316
UNDER DIVISION (E)(2)(a) OF THIS SECTION FOR TAX YEARS 1997, 1,318
1998, AND 1999, AS REFLECTED IN THE PRELIMINARY ASSESSMENT, USING 1,319
AN ASSESSMENT RATE OF TWENTY-FIVE PER CENT. 1,320
(F) The tax commissioner may request that NATURAL GAS 1,323
COMPANIES, electric companies, and rural electric companies file 1,325
a report to help determine the tax value loss under division (C) 1,326
DIVISIONS (D) AND (E) of this section. The report shall be filed 1,327
within thirty days of the commissioner's request. A company that 1,328
fails to file the report or does not timely file the report is 1,330
subject to the penalty in section 5727.60 of the Revised Code. 1,331
The tax commissioner shall certify to the department of 1,333
education the tax value loss determined under this division for 1,334
each school district and joint vocational school district. 1,335
(D)(G) Not later than January 1, 2002, the tax 1,337
commissioner shall determine for each school district, joint 1,339
vocational school district, and local taxing unit its fixed-rate 1,340
levy loss, which is THE SUM OF its ELECTRIC COMPANY tax value 1,341
loss multiplied by the tax rate in effect in tax year 1998 for 1,343
fixed-rate levies AND ITS NATURAL GAS COMPANY TAX VALUE LOSS 1,344
MULTIPLIED BY THE TAX RATE IN EFFECT IN TAX YEAR 1999 FOR 1,345
FIXED-RATE LEVIES.
31
(E)(H) Not later than January 1, 2002, the tax 1,347
commissioner shall determine for each school district, joint 1,349
vocational school district, and local taxing unit its fixed-sum 1,350
levy loss, which is the amount obtained by subtracting the amount 1,351
described in division (E)(H)(2) of this section from the amount 1,352
described in division (E)(H)(1) of this section: 1,354
(1) The SUM OF THE ELECTRIC COMPANY tax value loss 1,356
multiplied by the tax rate in effect in tax year 1998, AND THE 1,358
NATURAL GAS COMPANY TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN 1,359
EFFECT IN TAX YEAR 1999, for fixed-sum levies for all taxing 1,360
districts within each school district, joint vocational school 1,361
district, and local taxing unit. For the years 2002 through 1,362
2006, this computation shall include school district emergency 1,363
levies that existed in 1998 IN THE CASE OF THE ELECTRIC COMPANY 1,365
TAX VALUE LOSS, AND 1999 IN THE CASE OF THE NATURAL GAS COMPANY 1,366
TAX VALUE LOSS, and all other fixed-sum levies that existed in 1,367
1998 IN THE CASE OF THE ELECTRIC COMPANY TAX VALUE LOSS AND 1999 1,368
IN THE CASE OF THE NATURAL GAS COMPANY TAX VALUE LOSS and 1,370
continue to be charged in the tax year preceding the distribution 1,371
year. For the years 2007 through 2016 in the case of school 1,372
district emergency levies, and for all years after 2006 in the 1,373
case of all other fixed-sum levies, this computation shall 1,374
exclude all fixed-sum levies that existed in 1998 IN THE CASE OF 1,376
THE ELECTRIC COMPANY TAX VALUE LOSS AND 1999 IN THE CASE OF THE 1,377
NATURAL GAS COMPANY TAX VALUE LOSS, but are no longer in effect 1,378
in the tax year preceding the distribution year. For the 1,379
purposes of this section, an emergency levy that existed in 1998 1,380
IN THE CASE OF THE ELECTRIC COMPANY TAX VALUE LOSS, AND 1999 IN 1,381
THE CASE OF THE NATURAL GAS COMPANY TAX VALUE LOSS, continues to 1,382
exist in a year beginning on or after January 1, 2007, but before 1,383
January 1, 2017, if, in that year, the board of education levies 1,384
a school district emergency levy for an annual sum at least equal 1,385
to the annual sum levied by the board in tax year 1998 OR 1999, 1,386
RESPECTIVELY, less the amount of the payment certified under this 1,388
32
division for 2002.
(2) The total taxable value in tax year 1998 IN THE CASE 1,390
OF THE ELECTRIC COMPANY TAX VALUE LOSS AND 1999 IN THE CASE OF 1,391
THE NATURAL GAS COMPANY TAX VALUE LOSS in each school district, 1,393
joint vocational school district, and local taxing unit
multiplied by one-fourth of one mill. 1,394
If the computation AMOUNT COMPUTED under division (E)(H) of 1,397
this section for any school district, joint vocational school 1,398
district, or local taxing unit is greater than zero, the 1,399
one-fourth of one mill that is subtracted AMOUNT SHALL EQUAL THE 1,400
FIXED-SUM LEVY LOSS REIMBURSED pursuant to division (E) of 1,401
section 5727.85 of the Revised Code or division (A)(2) of section 1,403
5727.86 of the Revised Code, AND THE ONE-FOURTH OF ONE MILL THAT 1,404
IS SUBTRACTED UNDER DIVISION (H)(2) OF THIS SECTION shall be 1,405
apportioned among all contributing fixed-sum levies in the 1,407
proportion of each levy to the sum of all fixed-sum levies within 1,408
each school district, joint vocational school district, or local 1,409
taxing unit.
(F)(I) Notwithstanding divisions (C), (D), and (E), (G), 1,412
AND (H) of this section, in computing the tax value loss, 1,413
fixed-rate levy loss, and fixed-sum levy loss, the tax 1,414
commissioner shall use the greater of the 1998 tax rate or the 1,415
1999 tax rate IN THE CASE OF LEVY LOSSES ASSOCIATED WITH THE 1,416
ELECTRIC COMPANY TAX VALUE LOSS, but the 1999 tax rate shall not 1,417
include for this purpose any tax levy approved by the voters 1,418
after June 30, 1999, AND THE TAX COMMISSIONER SHALL USE THE 1,419
GREATER OF THE 1999 OR THE 2000 TAX RATE IN THE CASE OF LEVY 1,420
LOSSES ASSOCIATED WITH THE NATURAL GAS COMPANY TAX VALUE LOSS, 1,421
BUT THE 2000 TAX RATE SHALL NOT INCLUDE FOR THIS PURPOSE ANY TAX 1,422
LEVY APPROVED BY THE VOTERS AFTER MARCH 7, 2000. 1,423
(J) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 1,425
SHALL CERTIFY TO THE DEPARTMENT OF EDUCATION THE TAX VALUE LOSS 1,426
DETERMINED UNDER DIVISIONS (D) AND (E) OF THIS SECTION FOR EACH 1,427
TAXING DISTRICT. 1,428
33
Sec. 5727.85. (A) By the thirty-first day of July of each 1,438
year, beginning in 2002 and ending in 2016, the department of 1,439
education shall determine the following for each school district 1,440
eligible for payment under division (C) of this section: 1,441
(1) The state education aid offset, which is the 1,443
difference obtained by subtracting the amount described in 1,444
division (A)(1)(b) of this section from the amount described in 1,446
division (A)(1)(a) of this section: 1,448
(a) The state education aid computed for the school 1,450
district for the current fiscal year on the basis of the adjusted 1,451
total taxable value; 1,452
(b) The state education aid that would be computed for the 1,454
school district for the current fiscal year if the district's 1,455
adjusted total taxable value included the tax value loss for all 1,456
taxing districts in the school district.
(2) The difference obtained by subtracting the state 1,458
education aid offset determined under division (A)(1) of this 1,459
section from the fixed-rate levy loss determined under division 1,460
(D)(G) of section 5727.84 of the Revised Code for all taxing 1,462
districts in each school district. The department of education 1,463
shall certify the amount so determined to the director of budget 1,464
and management.
(B) Not later than the thirty-first day of October of the 1,467
years 2006 through 2016, the department of education shall 1,468
determine all of the following for each school district: 1,469
(1) The amount obtained by subtracting the district's 1,471
state education aid computed for fiscal year 2002 from the 1,472
district's state education aid computed for the current fiscal 1,473
year;
(2) The inflation-adjusted property tax loss. The 1,475
inflation-adjusted property tax loss equals the fixed-rate levy 1,476
loss determined under division (D)(G) of section 5727.84 of the 1,478
Revised Code for all taxing districts in each school district 1,479
plus the product obtained by multiplying that loss by the 1,480
34
cumulative percentage increase in the consumer price index from 1,481
January 1, 2002, to the thirtieth day of June of the current 1,482
year.
(3) The difference obtained by subtracting the amount 1,484
computed under division (B)(1) from the amount of the 1,485
inflation-adjusted property tax loss. If this difference is zero 1,486
or a negative number, no further payments shall be made under 1,487
division (C) of this section to the school district from the 1,488
school district property tax replacement fund. If the difference 1,490
is greater than zero, the department of education shall certify
the amount calculated in division (A)(2) of this section to the 1,492
director of budget and management not later than the thirty-first 1,493
day of December of each year, beginning in 2006 and ending in 1,495
2016.
(C) For all taxing districts in each school district, the 1,497
director of budget and management shall pay from the school 1,498
district property tax replacement fund to the county undivided 1,499
income tax fund in the proper county treasury all of the 1,500
following: 1,501
(1) In February 2002, one-half of the fixed-rate levy loss 1,503
certified under division (D)(G) of section 5727.84 of the Revised 1,505
Code on or before the day prescribed for the settlement under 1,507
division (A) of section 321.24 of the Revised Code. 1,508
(2) From August 2002 through August 2006, one-half of the 1,511
amount certified for that fiscal year under division (A)(2) of 1,512
this section on or before each of the days prescribed for the 1,513
settlements under divisions (A) and (C) of section 321.24 of the 1,514
Revised Code. 1,515
(3) From February 2007 through August 2016, one-half of 1,517
the amount certified for that calendar year under division (B)(3) 1,519
of this section on or before each of the days prescribed for the 1,520
settlements under divisions (A) and (C) of section 321.24 of the 1,521
Revised Code. 1,522
The county treasurer shall distribute amounts paid under 1,524
35
divisions (C)(1), (2), and (3) of this section to the proper 1,525
school district as if they had been levied and collected as 1,526
taxes, and the school district shall apportion the amounts so 1,527
received among its funds in the same proportions as if those 1,528
amounts had been levied and collected as taxes. 1,529
(D) Not later than January 1, 2002, for all taxing 1,531
districts in each joint vocational school district, the tax 1,533
commissioner shall certify to the director of budget and 1,534
management the fixed-rate levy loss determined under division 1,536
(D)(G) of section 5727.84 of the Revised Code. From February 1,538
2002 to August 2016, the director shall pay from the school 1,539
district property tax replacement fund to the county undivided 1,540
income tax fund in the proper county treasury, one-half of the 1,541
fixed-rate levy loss so certified for each year on or before each 1,542
of the days prescribed for the settlements under divisions (A) 1,543
and (C) of section 321.24 of the Revised Code. The county 1,545
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 1,546
same proportions as if those amounts had been levied and 1,547
collected as taxes. 1,548
(E)(1) Not later than January 1, 2002, for each fixed-sum 1,550
levy levied by each school district or joint vocational school 1,552
district and for each year for which a certification 1,553
DETERMINATION is made under division (E)(H) of section 5727.84 of 1,555
the Revised Code THAT A FIXED-SUM LEVY LOSS IS TO BE REIMBURSED,
the tax commissioner shall certify to the director of budget and 1,557
management the fixed-sum levy loss determined under that 1,559
division. The certification shall cover a time period sufficient 1,560
to include all fixed-sum levies in effect in 1998 to June 30, 1,561
1999, for which the tax commissioner made such a determination. 1,563
The director shall pay from the school district property tax 1,564
replacement fund to the county undivided income tax fund in the 1,565
36
proper county treasury one-half of the fixed-sum levy loss so 1,566
certified for each year on or before each of the days prescribed 1,567
for the settlements under divisions (A) and (C) of section 321.24 1,568
of the Revised Code. The county treasurer shall distribute the 1,569
amounts to the proper school district or joint vocational school 1,570
district as if they had been levied and collected as taxes, and 1,571
the district shall apportion the amounts so received among its 1,572
funds in the same proportions as if those amounts had been levied 1,573
and collected as taxes. No payments shall be made under this 1,574
division once all fixed-sum levies in effect in 1998 to June 30, 1,575
1999, are no longer in effect. 1,576
(2) Beginning in 2003, by the thirty-first day of January 1,579
of each year, the tax commissioner shall review the certification 1,580
originally made under division (E)(1) of this section. If the 1,581
commissioner determines that a fixed-sum levy that had been 1,582
scheduled to be reimbursed in the current year has expired, a 1,584
revised certification for that and all subsequent years shall be 1,585
made to the director of budget and management. 1,586
(F) By August 5, 2002, the tax commissioner shall estimate 1,589
the amount of money in the school district property tax 1,590
replacement fund in excess of the amount necessary to make 1,591
payments in that month under divisions (C), (D), and (E) of this 1,592
section. Notwithstanding division (C) of this section, the 1,593
department of education, in consultation with the tax 1,594
commissioner and from those excess funds, may pay any school 1,596
district four and one-half times the amount certified under
division (A)(2) of this section. Payments shall be made in order 1,597
from the smallest annual loss to the largest annual loss. A 1,598
payment made under this division shall be in lieu of the payment 1,600
to be made in August 2002 under division (C)(2) of this section. 1,601
No payments shall be made in the manner established in this 1,602
division to any school district with annual losses from permanent 1,603
improvement fixed-rate levies in excess of twenty thousand 1,604
dollars, or annual losses from any other fixed-rate levies in 1,605
37
excess of twenty thousand dollars. A school district receiving a 1,606
payment under this division is no longer entitled to any further 1,607
payments under division (C) of this section. 1,608
(G) On the thirty-first day of July of 2003, 2004, 2005, 1,610
and 2006, and on the thirty-first day of January and July of 2007 1,612
and each year thereafter, if the amount credited to the school 1,613
district property tax replacement fund exceeds the amount needed 1,614
to make payments from the fund under divisions (C), (D), and (E) 1,615
of this section in the following month, the director of budget 1,617
and management shall distribute the excess among school districts 1,619
and joint vocational school districts. The amount distributed to 1,622
each district shall bear the same proportion to the excess 1,623
remaining in the fund as the ADM of the district bears to the ADM 1,624
of all of the districts. For the purpose of this division, "ADM" 1,625
means the formula ADM in the case of a school district, and the 1,627
average daily membership reported under section 3317.03 of the 1,629
Revised Code in the case of a joint vocational school district. 1,630
If, in the opinion of the director of budget and 1,632
management, the excess remaining in the school district property 1,633
tax replacement fund in any year is not sufficient to warrant 1,634
distribution under this division, the excess shall remain to the 1,635
credit of the fund.
Amounts received by a school district or joint vocational 1,637
school district under this division shall be used exclusively for 1,638
capital improvements. 1,639
(H) If the total amount in the school district property 1,641
tax replacement fund is insufficient to make all payments under 1,642
divisions (C), (D), and (E) of this section, the payments 1,643
required under division (E) of this section shall be made first 1,644
in their entirety. After all payments are made under division 1,645
(E) of this section, payments under divisions (C) and (D) of this 1,646
section shall be made from the balance of money available in the 1,647
proportion of each school district's or joint vocational school 1,648
district's payment amount to the total amount of payments under 1,649
38
divisions (C) and (D) of this section. 1,650
(I) If all or a part of the territory of a school district 1,652
or joint vocational school district is merged with or transferred 1,653
to another district, the tax commissioner shall adjust the 1,654
payments made under this section to each of the districts in 1,655
proportion to the tax value loss apportioned to the merged or 1,656
transferred territory. 1,657
(J) There is hereby created the electric PUBLIC UTILITY 1,659
property tax study committee, effective January 1, 2011. The 1,661
committee shall consist of the following seven members: the tax 1,662
commissioner, three members of the senate appointed by the 1,663
president of the senate, and three members of the house of 1,664
representatives appointed by the speaker of the house of 1,665
representatives. The appointments shall be made not later than 1,666
January 31, 2011. The tax commissioner shall be the chairperson 1,667
of the committee.
The committee shall study the extent to which each school 1,669
district or joint vocational school district has been 1,670
compensated, under sections 5727.84 and 5727.85 of the Revised 1,671
Code as enacted by Substitute Senate Bill No. 3 of the 123rd 1,672
general assembly and any subsequent acts, for the property tax 1,673
loss caused by the reduction in the assessment rates for NATURAL 1,674
GAS, electric, and rural electric company tangible personal 1,676
property. Not later than June 30, 2011, the committee shall 1,677
issue a report of its findings, including any recommendations for 1,678
providing additional compensation for the property tax loss or 1,679
regarding remedial legislation, to the president of the senate 1,680
and the speaker of the house of representatives, at which time 1,681
the committee shall cease to exist.
The department of taxation and department of education 1,683
shall provide such information and assistance as is required for 1,684
the committee to carry out its duties. 1,685
Sec. 5727.86. (A) Not later than January 1, 2002, the tax 1,694
commissioner shall certify to the director of budget and 1,695
39
management, for all taxing districts in each local taxing unit, 1,696
the fixed-rate levy loss determined under division (D)(G), and 1,697
the fixed-sum levy loss determined under division (E)(H), of 1,699
section 5727.84 of the Revised Code. Based on that 1,701
certification, the director shall compute the payments to be made 1,702
to each local taxing unit for each year according to divisions 1,703
(A)(1), (2), and (3) and division (E) of this section, and shall 1,704
distribute the payments in the manner prescribed by division (C) 1,705
of this section. The certification of the fixed-sum levy loss 1,706
shall cover a period of time PERIOD sufficient to include all 1,707
fixed-sum levies in effect in 1998 to June 30, 1999, until they 1,709
are no longer in effect FOR WHICH THE TAX COMMISSIONER 1,710
DETERMINED, PURSUANT TO DIVISION (H) OF SECTION 5727.84 OF THE 1,711
REVISED CODE, THAT A FIXED-SUM LEVY LOSS IS TO BE REIMBURSED. 1,712
(1) Except as provided in division (A)(3) of this section, 1,714
for fixed-rate levy losses determined under division (D)(G) of 1,715
section 5727.84 of the Revised Code, payments shall be made in 1,717
each of the following years at the following percentage of the 1,718
fixed-rate levy loss certified under division (A) of this 1,719
section:
YEAR PERCENTAGE 1,721
2002 100% 1,723
2003 100% 1,724
2004 100% 1,725
2005 100% 1,726
2006 100% 1,727
2007 80% 1,728
2008 80% 1,729
2009 80% 1,730
2010 80% 1,731
2011 80% 1,732
2012 66.7% 1,733
2013 53.4% 1,734
2014 40.1% 1,735
40
2015 26.8% 1,736
2016 13.5% 1,737
2017 and thereafter 0% 1,738
(2) For fixed-sum levy losses determined under division 1,741
(E)(H) of section 5727.84 of the Revised Code, PAYMENTS SHALL BE 1,743
MADE IN THE AMOUNT OF one hundred per cent of the fixed-sum levy 1,745
loss certified under division (A) of this section for payments 1,746
required to be made in 2002 and thereafter.
(3) A local taxing unit in a county of less than two 1,748
hundred fifty square miles that receives eighty per cent or more 1,749
of its combined general fund and bond retirement fund revenues 1,750
from property taxes and rollbacks based on 1997 actual revenues 1,751
as presented in its 1999 tax budget, and in which electric 1,752
companies and rural electric companies comprise over twenty per 1,753
cent of its property valuation, shall receive one hundred per 1,754
cent of its fixed-rate levy losses FROM ELECTRIC COMPANY TAX 1,755
VALUE LOSSES certified under division (A) of this section in 1,757
years 2002 to 2016.
(B) Beginning in 2003, by the thirty-first day of January 1,759
of each year, the tax commissioner shall review the certification 1,760
originally made under division (A) of this section of the 1,761
fixed-sum levy loss determined under division (E)(H) of section 1,763
5727.84 of the Revised Code. If the commissioner determines that 1,764
a fixed-sum levy that had been scheduled to be reimbursed in the 1,765
current year has expired, a revised certification for that and 1,766
all subsequent years shall be made. 1,767
(C) Payments to local taxing units required to be made 1,769
under divisions (A) and (E) of this section shall be paid from 1,770
the local government property tax replacement fund to the county 1,771
undivided income tax fund in the proper county treasury. 1,772
One-half of the amount certified under those divisions shall be 1,773
paid on or before each of the days prescribed for the settlements 1,774
under divisions (A) and (C) of section 321.24 of the Revised 1,775
Code. The county treasurer shall distribute amounts paid under 1,776
41
division (A) of this section to the proper local taxing unit as 1,777
if they had been levied and collected as taxes, and the local 1,778
taxing unit shall apportion the amounts so received among its 1,779
funds in the same proportions as if those amounts had been levied 1,780
and collected as taxes. Amounts distributed under division (E) 1,781
of this section shall be credited to the general fund of the 1,782
local taxing unit that receives them.
(D) By February 5, 2002, the tax commissioner shall 1,784
estimate the amount of money in the local government property tax 1,785
replacement fund in excess of the amount necessary to make 1,786
payments in that month under division (C) of this section. 1,787
Notwithstanding division (A) of this section, the tax 1,788
commissioner may pay any local taxing unit, from those excess 1,789
funds, nine and four-tenths times the amount computed for 2002 1,790
under division (A)(1) of this section. A payment made under this 1,791
division shall be in lieu of the payment to be made in February 1,792
2002 under division (A)(1) of this section. A local taxing unit 1,793
receiving a payment under this division will no longer be 1,794
entitled to any further payments under division (A)(1) of this 1,795
section. A PAYMENT MADE UNDER THIS DIVISION SHALL BE PAID FROM 1,796
THE LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY 1,797
UNDIVIDED INCOME TAX FUND IN THE PROPER COUNTY TREASURY. THE 1,798
COUNTY TREASURER SHALL DISTRIBUTE THE PAYMENT TO THE PROPER LOCAL 1,799
TAXING UNIT AS IF IT HAD BEEN LEVIED AND COLLECTED AS TAXES, AND 1,800
THE LOCAL TAXING UNIT SHALL APPORTION THE AMOUNTS SO RECEIVED 1,801
AMONG ITS FUNDS IN THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD 1,802
BEEN LEVIED AND COLLECTED AS TAXES. 1,803
(E) On the thirty-first day of July of 2002, 2003, 2004, 1,805
2005, and 2006, and on the thirty-first day of January and July 1,806
of 2007 and each year thereafter, if the amount credited to the 1,807
local government property tax replacement fund exceeds the amount 1,808
needed to be distributed from the fund under division (A) of this 1,809
section in the following month, the director of budget and 1,810
management shall distribute the excess to each county as follows: 1,811
42
(1) One-half shall be distributed to each county in 1,813
proportion to each county's population. 1,814
(2) One-half shall be distributed to each county in the 1,816
proportion that the amounts determined under divisions (D)(G) and 1,818
(E)(H) of section 5727.84 of the Revised Code for all LOCAL 1,819
taxing districts UNITS in the county is of the total amounts so 1,821
determined for all LOCAL taxing districts UNITS in the state. 1,822
The amounts distributed to each county under this division 1,824
shall be distributed by the county budget commission to each 1,825
local taxing unit in the county in the proportion that the unit's 1,826
current taxes charged and payable are of the total current taxes 1,827
charged and payable of all the local taxing units in the county. 1,828
As used in this division, "current taxes charged and payable" 1,829
means the taxes charged and payable as most recently determined 1,830
for local taxing units in the county. 1,831
If, in the opinion of the director of budget and 1,833
management, the excess remaining in the local government property 1,834
tax replacement fund in any year is not sufficient to warrant 1,835
distribution under this division, the excess shall remain to the 1,836
credit of the fund.
(F) If the total amount in the local government property 1,838
tax replacement fund is insufficient to make all payments under 1,839
division (C) of this section, the payments required under 1,840
division (A)(2) of this section shall be made first in their 1,841
entirety. After all such payments are made, payments under 1,842
divisions (A)(1) and (3) of this section shall be made from the 1,843
balance of money available in the proportion of each local taxing 1,844
unit's payment amount to the total amount of all payments to be 1,845
made under divisions (A)(1) and (3) of this section. 1,846
(G) If all or a part of the territories of two or more 1,848
local taxing units are merged, or unincorporated territory of a 1,849
township is annexed by a municipal corporation, the tax 1,850
commissioner shall adjust the payments made under this section to 1,851
each of the local taxing units in proportion to the tax value 1,852
43
loss apportioned to the merged or annexed territory, or as 1,853
otherwise provided by a written agreement between the legislative 1,854
authorities of the local taxing units certified to the tax 1,855
commissioner not later than the first day of June of the calendar 1,856
year in which the payment is to be made. 1,857
Sec. 5727.87. (A) As used in this section: 1,866
(1) "Administrative fees" means the dollar percentages 1,868
allowed by the county auditor for services or by the county 1,869
treasurer as fees, or paid to the credit of the real estate 1,870
assessment fund, under divisions (A) and (B) of section 319.54 1,871
and division (A) of section 321.26 of the Revised Code. 1,872
(2) "Administrative fee loss" means a county's loss of 1,874
administrative fees due to its tax value loss, determined as 1,875
follows: 1,876
(a) For purposes of the determination made under division 1,878
(B) of this section in the years 2002 through 2006, the 1,879
administrative fee loss shall be computed by multiplying the 1,880
amounts determined for all taxing districts in the county under 1,881
divisions (D)(G) and (E)(H) of section 5727.84 of the Revised 1,883
Code by nine thousand six hundred fifty-nine ten-thousandths of a 1,884
per cent, if total taxes collected in the county in tax year 1998 1,885
exceeded one hundred fifty million dollars, or one and one 1,886
thousand one hundred fifty-nine ten-thousandths of a per cent, if 1,887
total taxes collected in the county in tax year 1998 were one 1,888
hundred fifty million dollars or less; 1,889
(b) For purposes of the determination under division (B) 1,891
of this section in the years 2007 through 2011, the 1,892
administrative fee loss shall be determined by subtracting from 1,893
the dollar amount of administrative fees collected in the county 1,894
in tax year 1998, the dollar amount of administrative fees 1,895
collected in the county in the current calendar year. 1,896
(B) Not later than the first day of June of 2002 through 1,898
2011, the county auditor shall determine the administrative fee 1,899
loss for the county and certify it to the county budget 1,900
44
commission. Notwithstanding divisions (C), (D), and (E) of 1,901
section 5727.85 and division (C) of section 5727.86 of the 1,902
Revised Code, prior to distribution by the county treasurer of 1,903
the payments provided under those divisions, the county budget 1,904
commission shall deduct from those payments the amount of the 1,905
administrative fee loss certified by the county auditor, as 1,906
follows:
(1) Seventy per cent of the administrative fee loss shall 1,908
be deducted from the payments provided under divisions (C), (D), 1,909
and (E) of section 5727.85 of the Revised Code. 1,910
(2) Thirty per cent of the administrative fee loss shall 1,912
be deducted from the payments provided under division (C) of 1,913
section 5727.86 of the Revised Code. 1,914
(C) On or before each of the days prescribed for the 1,916
settlements under divisions (A) and (C) of section 321.24 of the 1,917
Revised Code in the years 2002 through 2011, the county budget 1,918
commission shall pay one-half of the amount of the administrative 1,919
fee loss to the county auditor, county treasurer, or real estate 1,920
assessment fund as if the amount had been allowed as 1,921
administrative fees, and shall deposit the amount in the same 1,922
funds as if allowed as administrative fees. 1,923
After payment of the administrative fee loss on or before 1,925
August 10, 2011, all payments under this section shall cease. 1,926
Sec. 5727.88. The tax commissioner shall administer 1,935
sections 5727.80 to 5727.95 of the Revised Code and may adopt 1,938
such rules as are necessary to administer those sections. Upon 1,940
request of the tax commissioner, the public utilities commission
shall assist the tax commissioner by providing information 1,941
regarding any NATURAL GAS DISTRIBUTION COMPANY OR electric 1,942
distribution company that is subject to regulation by the 1,944
commission.
Sec. 5727.89. (A) The tax commissioner may make an 1,954
assessment, based on any information in the commissioner's
possession, against any NATURAL GAS DISTRIBUTION COMPANY, 1,955
45
electric distribution company, self-assessing purchaser, or 1,957
qualified end user that fails to file a return or pay any tax, 1,959
interest, or additional charge as required by sections 5727.80 to 1,960
5727.95 of the Revised Code. 1,961
When information in the possession of the tax commissioner 1,963
indicates that a person liable for the tax imposed by section 1,965
5727.81 OR 5727.811 of the Revised Code has not paid the full 1,967
amount of tax due, the commissioner may audit a representative 1,968
sample of the person's business and may issue an assessment based 1,970
on the audit. The commissioner shall give the person assessed 1,971
written notice of the assessment by personal service or certified 1,972
mail.
The tax commissioner may issue an assessment for which the 1,974
tax imposed by section 5727.81 OR 5727.811 of the Revised Code 1,975
was due and unpaid on the date the person was informed by an 1,978
agent of the tax commissioner of an investigation or audit of the 1,979
person. Any payment of the tax for the period covered by the 1,980
assessment, after the person is so informed, shall be credited 1,981
against the assessment. 1,982
A penalty of fifteen per cent shall be added to all amounts 1,985
assessed under this section. The commissioner may adopt rules 1,986
providing for the remission of penalties.
(B) Unless the party assessed files with the tax 1,989
commissioner within thirty days after service of the notice of 1,990
assessment, either personally or by certified mail, a written 1,991
petition for reassessment signed by the party assessed or the 1,992
party's authorized agent having knowledge of the facts, the 1,993
assessment is final and the amount of the assessment is due and 1,994
payable from the party assessed to the treasurer of state. The 1,995
petition shall indicate the objections of the party assessed, but 1,996
additional objections may be raised in writing prior to the date 1,997
shown on the final determination of the tax commissioner. The 1,998
commissioner shall grant the petitioner a hearing on the 1,999
petition, unless waived by the petitioner. 2,000
46
(C) The commissioner may make any correction to the 2,003
assessment that the commissioner finds proper and shall issue a 2,004
final determination thereon. The commissioner shall serve a copy 2,005
of the final determination on the petitioner either by personal 2,006
service or by certified mail, and the commissioner's decision in 2,007
the matter is final, subject to appeal under section 5717.02 of 2,008
the Revised Code. 2,009
(D) After an assessment becomes final, if any portion of 2,012
the assessment, including accrued interest, remains unpaid, a 2,013
certified copy of the commissioner's entry making the assessment 2,014
final may be filed in the office of the clerk of the court of 2,015
common pleas in the county in which the party assessed resides or 2,016
in which the party's business is conducted. If the party 2,017
assessed maintains no place of business in this state and is not 2,018
a resident of this state, the certified copy of the entry may be 2,020
filed in the office of the clerk of the court of common pleas of 2,021
Franklin county. 2,022
The clerk, immediately upon the filing of the entry, shall 2,024
enter a judgment for the state against the person assessed in the 2,026
amount shown on the entry. The judgment may be filed by the
clerk in a loose-leaf book entitled "special judgments for the 2,027
kilowatt-hour tax DISTRIBUTION EXCISE TAXES," and shall have the 2,028
same effect as other judgments. Execution shall issue upon the 2,030
judgment at the request of the tax commissioner, and all laws 2,031
applicable to sales on execution shall apply to sales made under 2,032
the judgment.
The portion of the assessment not paid within thirty days 2,034
after the day the assessment was issued shall bear interest at 2,035
the rate per annum prescribed by section 5703.47 of the Revised 2,037
Code from the day the tax commissioner issues the assessment 2,039
until the day the assessment is paid. Interest shall be paid in 2,040
the same manner as the tax and may be collected by the issuance 2,041
of an assessment under this section. 2,042
(E) If the tax commissioner believes that collection of 2,045
47
the tax imposed by section 5727.81 OR 5727.811 of the Revised 2,046
Code will be jeopardized unless proceedings to collect or secure 2,048
collection of the tax are instituted without delay, the 2,049
commissioner may issue a jeopardy assessment against the electric 2,050
distribution company, self-assessing purchaser, or qualified end 2,051
user PERSON liable for the tax. Upon issuance of the jeopardy 2,053
assessment, the commissioner immediately shall file an entry with 2,054
the clerk of the court of common pleas in the manner prescribed 2,055
by division (D) of this section. Notice of the jeopardy 2,057
assessment shall be served on the party assessed or the party's 2,058
legal representative within five days of the filing of the entry 2,059
with the clerk. The total amount assessed is immediately due and 2,060
payable, unless the party assessed files a petition for 2,061
reassessment in accordance with division (B) of this section and 2,062
provides security in a form satisfactory to the commissioner and 2,063
in an amount sufficient to satisfy the unpaid balance of the 2,064
assessment. Full or partial payment of the assessment does not 2,065
prejudice the commissioner's consideration of the petition for 2,066
reassessment. 2,067
(F) All money collected by the tax commissioner under this 2,070
section shall be paid to the treasurer of state, and when paid 2,071
shall be considered as revenue arising from the tax TAXES imposed 2,072
by section SECTIONS 5727.81 AND 5727.811 of the Revised Code. 2,074
Sec. 5727.90. No assessment of the tax imposed by section 2,083
5727.81 OR 5727.811 of the Revised Code shall be made by the tax 2,085
commissioner more than four years after the date on which the 2,086
return for the period assessed was due or filed, whichever date 2,087
is later. This section does not bar an assessment when any of 2,088
the following occur: 2,089
(A) The party assessed failed to file a return as required 2,092
by section 5727.82 of the Revised Code; 2,093
(B) The party assessed knowingly filed a false or 2,096
fraudulent return;
(C) The party assessed and the tax commissioner waived in 2,099
48
writing the time limitation. 2,100
Sec. 5727.91. (A) The treasurer of state shall refund the 2,110
amount of tax paid under section 5727.81 OR 5727.811 of the 2,111
Revised Code that was paid illegally or erroneously, or paid on 2,113
an illegal or erroneous assessment. An A NATURAL GAS 2,114
DISTRIBUTION COMPANY, AN electric distribution company, or A 2,116
self-assessing purchaser shall file an application for a refund 2,117
with the tax commissioner on a form prescribed by the
commissioner, within four years of the illegal or erroneous 2,118
payment of the tax. 2,119
Upon the filing of the application, the commissioner shall 2,121
determine the amount of refund due and certify that amount to the 2,123
director of budget and management and the treasurer of state for 2,124
payment from the tax refund fund under section 5703.052 of the 2,125
Revised Code. If the application for refund is for taxes paid on 2,126
an illegal or erroneous assessment, the tax commissioner shall 2,127
include in the certified amount interest calculated at the rate 2,128
per annum under section 5703.47 of the Revised Code from the date 2,129
of overpayment to the date of the commissioner's certification. 2,131
(B) If A NATURAL GAS DISTRIBUTION COMPANY OR an electric 2,133
distribution company entitled to a refund of taxes under this 2,134
section is indebted to the state for any tax or fee administered 2,135
by the tax commissioner that is paid to the state or any charge, 2,137
penalty, or interest arising from such a tax or fee, the amount 2,138
refundable may be applied in satisfaction of the debt. If the 2,139
amount refundable is less than the amount of the debt, it may be 2,140
applied in partial satisfaction of the debt. If the amount 2,141
refundable is greater than the amount of the debt, the amount 2,142
remaining after satisfaction of the debt shall be refunded. If 2,143
the NATURAL GAS DISTRIBUTION COMPANY OR electric distribution 2,144
company has more than one such debt, any debt subject to section 2,146
5739.33 or division (G) of section 5747.07 of the Revised Code 2,148
shall be satisfied first. This section applies only to debts 2,149
that have become final. 2,150
49
(C)(1) Any electric distribution company that can 2,153
substantiate to the tax commissioner that the tax imposed by 2,154
section 5727.81 of the Revised Code was paid on electricity 2,155
distributed via wires and consumed at a location outside of this 2,156
state may claim a refund in the manner and within the time period 2,157
prescribed in division (A) of this section. 2,159
(2) ANY NATURAL GAS DISTRIBUTION COMPANY THAT CAN 2,161
SUBSTANTIATE TO THE TAX COMMISSIONER THAT THE TAX IMPOSED BY 2,162
SECTION 5727.811 OF THE REVISED CODE WAS PAID ON NATURAL GAS 2,163
DISTRIBUTED VIA ITS FACILITIES AND CONSUMED AT A LOCATION OUTSIDE
OF THIS STATE MAY CLAIM A REFUND IN THE MANNER AND WITHIN THE 2,164
TIME PERIOD PRESCRIBED IN DIVISION (A) OF THIS SECTION. 2,165
(D) Before a refund is issued under this section, A 2,167
NATURAL GAS COMPANY OR an electric distribution company shall 2,169
certify, as prescribed by the tax commissioner, that it either 2,170
did not include the tax imposed by section 5727.81 of the Revised 2,171
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 2,172
NATURAL GAS DISTRIBUTION COMPANY, in its distribution charge to 2,173
an electric ITS customer upon which a refund of the tax is 2,174
claimed, or it has refunded or credited to the electric customer 2,176
the excess distribution charge related to the tax that was 2,178
erroneously included in the electric customer's distribution 2,179
charge. 2,180
Sec. 5727.92. Every person liable for the tax imposed by 2,190
section 5727.81 OR 5727.811 of the Revised Code shall keep 2,192
complete and accurate records of all electric AND NATURAL GAS 2,193
distributions and other records as required by the tax 2,194
commissioner. The records shall be preserved for four years 2,195
after the return for the taxes to which the records pertain is 2,196
due or filed, whichever is later. The records shall be available 2,197
for inspection by the tax commissioner or the commissioner's 2,198
authorized agent, upon request of the commissioner or such agent. 2,199
Sec. 5727.93. (A) No person shall distribute electricity 2,209
50
OR NATURAL GAS to a meter of an end user in this state who is not 2,211
registered with the tax commissioner as an electric distribution 2,212
company OR A NATURAL GAS DISTRIBUTION COMPANY.
(B) Each person required to register under division (A) of 2,216
this section shall register prior to distributing electricity OR
NATURAL GAS to a meter of an end user in this state. The tax 2,218
commissioner shall prescribe the form of the registration 2,219
application. The commissioner shall assign an identification 2,220
number to each registration and notify the registrant of that 2,221
number. The registration shall remain in effect until canceled 2,222
in writing by the registrant upon the cessation of distributing 2,223
electricity OR NATURAL GAS to a meter of an end user in this 2,225
state or until such registration is denied, revoked, or canceled 2,226
by the commissioner. A registration may be revoked or canceled 2,227
by the tax commissioner as provided by Chapter 119. of the 2,229
Revised Code, for failure of an electric distribution company to 2,231
pay the tax imposed by section 5727.81 of the Revised Code, 2,232
FAILURE OF A NATURAL GAS DISTRIBUTION COMPANY TO PAY THE TAX 2,233
IMPOSED BY SECTION 5727.811 OF THE REVISED CODE, or FAILURE OF AN 2,234
ELECTRIC DISTRIBUTION COMPANY OR A NATURAL GAS DISTRIBUTION
COMPANY to comply with sections 5727.80 AND 5727.82 to 5727.95 of 2,237
the Revised Code. An electric distribution A company whose 2,239
registration is denied may petition for a hearing, in accordance 2,240
with the procedures set forth in divisions (B) and (C) of section 2,241
5727.89 of the Revised Code, not later than thirty days after 2,243
receiving the denial, and the final determination is subject to 2,244
appeal under section 5717.02 of the Revised Code. 2,245
(C) The tax commissioner shall maintain a list of the 2,248
electric distribution companies registered under this section. 2,249
The list shall contain the name and address of each company 2,250
registered by the commissioner. The list and subsequent updates 2,251
of it shall be open to public inspection.
Sec. 5727.94. Each electric distribution company required 2,260
to pay the tax imposed by section 5727.81 of the Revised Code AND 2,262
51
EACH NATURAL GAS DISTRIBUTION COMPANY REQUIRED TO PAY THE TAX
IMPOSED BY SECTION 5727.811 OF THE REVISED CODE shall provide to 2,263
its customers in this state the statement required by section 2,264
4933.33 of the Revised Code. 2,266
Sec. 5727.95. (A) No NATURAL GAS DISTRIBUTION COMPANY, 2,275
electric distribution company, or self-assessing purchaser shall 2,277
fail to file any return or report required to be filed pursuant 2,278
to section 5727.82 of the Revised Code, or file or cause to be 2,280
filed any incomplete, false, or fraudulent return, report, or 2,281
statement, or aid or abet another in the filing of any false or 2,282
fraudulent return, report, or statement. 2,283
(B) No person shall distribute NATURAL GAS OR electricity 2,286
to a meter of an end user in this state without holding a valid 2,288
registration issued under section 5727.93 of the Revised Code. 2,290
Section 2. That existing sections 3709.28, 4933.33, 2,292
5703.052, 5727.11, 5727.111, 5727.33, 5727.80, 5727.81, 5727.82, 2,293
5727.83, 5727.84, 5727.85, 5727.86, 5727.87, 5727.88, 5727.89, 2,294
5727.90, 5727.91, 5727.92, 5727.93, 5727.94, and 5727.95 of the 2,295
Revised Code are hereby repealed. 2,296
Section 3. That Sections 3 and 4 of Am. Sub. S.B. 3 of the 2,298
123rd General Assembly be amended to read as follows: 2,299
"Sec. 3. Sections 5727.111 and SECTION 5727.15 of the 2,301
Revised Code, as amended by this act AM. SUB. S.B. 3 OF THE 123rd 2,304
GENERAL ASSEMBLY, shall first apply to tax year 2001. 2,305
Sec. 4. Sections 4933.33, 5727.30, AND 5727.32, and 2,307
5727.33 of the Revised Code, as amended by this act AM. SUB. S.B. 2,310
3 OF THE 123rd GENERAL ASSEMBLY, shall first apply to the excise 2,311
tax assessed by the Tax Commissioner for tax year 2002." 2,312
Section 4. That existing Sections 3 and 4 of Am. Sub. S.B. 2,314
3 of the 123rd General Assembly are hereby repealed. 2,315
Section 5. That Section 174 of Am. Sub. H.B. 283 of the 2,317
123rd General Assembly be amended to read as follows: 2,318
"Sec. 174. Sections 122.15, 122.152, 129.55, 129.63, 2,320
129.73, 718.01, 1555.12, 5528.36, 5703.052, 5703.053, 5727.01, 2,321
52
5727.30, 5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 5727.42, 2,322
5727.48, 5727.50, 5727.60, and 5733.16 of the Revised Code, as 2,323
amended by this act AM. SUB. H.B. 283 OF THE 123rd GENERAL 2,325
ASSEMBLY, first apply to the excise tax year beginning May 1, 2,326
2000. Sections 5727.24, 5727.25, 5727.26, 5727.27, 5727.28, and 2,327
5727.29 of the Revised Code, as enacted by this act AM. SUB. H.B. 2,329
283 OF THE 123rd GENERAL ASSEMBLY, first apply to gross receipts 2,330
derived from taxable activities that occur after April 30, 2000. 2,331
Natural gas companies and combined electric and gas companies 2,333
must file an annual statement pursuant to section 5727.31 of the 2,334
Revised Code on or before August 1, 2000, and the Tax 2,335
Commissioner shall issue an assessment pursuant to section 2,336
5727.38 of the Revised Code on or before the first Monday in 2,337
November for the period ending April 30, 2000. Such companies 2,338
shall have made and shall make payments of the excise tax on
gross receipts imposed by section 5727.30 of the Revised Code on 2,340
or before October 15, 1999, March 1, 2000, and June 1, 2000, in 2,341
accordance with section 5727.31 of the Revised Code. Division 2,342
(D) of section 5727.42 of the Revised Code does not apply to the 2,343
portion of any assessment issued by the Tax Commissioner for the 2,344
period ending April 30, 2000, that reflects the excise tax owed 2,345
on those gross receipts from operating as a natural gas company 2,346
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 2,348
123rd GENERAL ASSEMBLY." 2,349
Section 6. That existing Section 174 of Am. Sub. H.B. 283 2,351
of the 123rd General Assembly is hereby repealed. 2,352
Section 7. The excise tax imposed by section 5727.811 of 2,354
the Revised Code shall first apply to natural gas distributed on 2,355
and after July 1, 2001. Before that date, a natural gas 2,356
distribution company shall register with the Tax Commissioner in 2,357
accordance with section 5727.93 of the Revised Code, as amended 2,358
by this act.
Section 8. (A) Not later than 90 days after the effective 2,360
53
date of this act, each natural gas distribution company in this 2,361
state having more than 50,000 customers, and each natural gas 2,362
distribution company in this state with 50,000 customers or less 2,363
that does not make an election under division (C) of section 2,364
5727.811 of the Revised Code, as enacted by this act, shall file
with the Public Utilities Commission revised schedules that do 2,365
both of the following: 2,366
(1) For all customers, except flex customers as defined by 2,368
section 5727.80 of the Revised Code, as amended by this act, 2,369
reduce natural gas MCF rates, effective March 1, 2001, in an 2,371
amount equal to the amount included in rates in each company's
last base rate case for the differential resulting from the 2,372
reduction in the personal property tax assessment rate to 25% of 2,373
true value as provided by section 5727.111 of the Revised Code, 2,375
as amended by this act;
(2) Establish a rider that provides for the collection, 2,377
beginning July 1, 2001, of the excise tax imposed by section 2,379
5727.811 of the Revised Code, as enacted by this act. The 2,380
Commission shall direct that such tax be reflected on bills as a 2,381
separately identified line item. The Commission shall approve a 2,383
revised schedule filed under this section within 60 days after it 2,384
is filed.
(B) To the extent possible, the rate reduction provided by 2,386
division (A)(1) of this section and the tax rider provided by 2,387
division (A)(2) of this section shall be designed to avoid 2,388
revenue responsibility shifts among the natural gas distribution 2,389
company's customer rate schedules or between the natural gas 2,390
distribution company's commodity sales service and distribution 2,391
service.
Section 9. The Department of Taxation, in conjunction with 2,393
the Public Utilities Commission, shall study the net fiscal 2,394
impact of Sub. S.B. 287 of the 123rd General Assembly, on 2,395
commercial and industrial natural gas customers. The study shall 2,396
determine the net fiscal impact of the tax imposed by section 2,397
54
5727.811 of the Revised Code on such customers. 2,398
Not later than February 1, 2001, the Department shall issue 2,400
a report of its findings to the President of the Senate, the 2,401
Speaker of the House of Representatives, the majority leaders of 2,402
the Senate and the House of Representatives, the minority leaders 2,403
of the Senate and the House of Representatives, and the 2,404
chairpersons of the standing committee of the House of 2,405
Representatives and the Senate that primarily considers tax 2,406
legislation.
Section 10. Sections 5703.052, 5727.111, and 5727.33 of 2,408
the Revised Code are presented in this act as composites of those 2,410
sections as amended by both Am. Sub. H.B. 283 and Am. Sub. S.B. 3 2,411
of the 123rd General Assembly, with the new language of neither 2,412
of the acts shown in capital letters. This is in recognition of 2,413
the principle stated in division (B) of section 1.52 of the 2,414
Revised Code that such amendments are to be harmonized where not 2,415
substantively irreconcilable and constitutes a legislative 2,416
finding that such are the resulting versions in effect prior to 2,417
the effective date of this act.