REPRESENTATIVES Hoops, Jolivette, Sykes, Latta, Widowfield, Niehaus, S. Smith, Coates, Evans, Buehrer, Schmidt, Sferra, Redfern, Carano, Allen, Lendrum, Barrett, Cirelli, Perry, Barnes, Fedor, Sulzer, Distel, Flowers, G. Smith

To amend section 5731.49 of the Revised Code to

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prohibit the charging of interest on recoupments of

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erroneously distributed estate tax revenue, to

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provide a procedure for converting certain

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municipal permanent property tax levies to

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five-year term levies, subject to voter approval,

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and to repeal Section 3 of this act, effective

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January 1, 2004.

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

Section 1. That section 5731.49 of the Revised Code be	9
amended to read as follows:	10

Sec. 5731.49.  At each semiannual settlement provided for by	11
section 5731.46 of the Revised Code, the county auditor shall	12
certify to the county auditor of any other county in which is	13
located in whole or in part any municipal corporation or township	14
to which any of the taxes collected under this chapter and not	15
previously accounted for, is due, a statement of the amount of	16
such taxes due to each corporation or township in such county	17
entitled to share in the distribution thereof. The amount due	18
upon such settlement to each such municipal corporation or	19
township, and to each municipal corporation and township in the	20
county in which the taxes are collected, shall be paid upon the	21
warrant of the county auditor to the county treasurer or other	22
proper officer of such municipal corporation or township. The	23
amount of any refund chargeable against any such municipal	24
corporation or township at the time of making such settlement,	25
shall be adjusted in determining the amount due to such municipal	26
corporation or township at such settlement; provided that if the	27
municipal corporation or township against which such refund is	28
chargeable is not entitled to share in the fund to be distributed	29
at such settlement, the auditor shall draw hisa warrant for the	30
amount in favor of the treasurer payable from any undivided	31
general taxes in the possession of such treasurer, unless such	32
municipal corporation or township is located in another county, in	33
which event the auditor shall issue a certificate for such amount	34
to the auditor of the proper county, who shall draw a like warrant	35
therefor payable from any undivided general taxes in the	36
possession of the treasurer of such county. In either case at the	37
next semiannual settlement of such undivided general taxes, the	38
amount of such warrant shall be deducted from the distribution of	39
taxes of such municipal corporation or township and charged	40
against the proceeds of levies for the general fund of such	41
municipal corporation or township, and a similar deduction shall	42
be made at each next semiannual settlement of such undivided	43
general taxes until such warrant has been satisfied in full.	44

If it is discovered that an amount of taxes collected under	45
this chapter has been paid in error to a township or municipal	46
corporation to which the taxes are not due under this chapter, the	47
township or municipal corporation to which the amount was	48
erroneously paid, when repaying that amount to any subdivision to	49
which the taxes were due, shall not be required to pay interest on	50
that amount.	51

Section 2. That existing section 5731.49 of the Revised Code	52
is hereby repealed.	53

Section 3. (A) As used in this section, "qualifying	54
continuing tax" means a tax authorized to be levied by the	55
legislative authority of a municipal corporation for a continuing	56
period of time for a purpose other than those enumerated in	57
divisions (D), (I), (J), (U), (CC), and (KK) of section 5705.19 of	58
the Revised Code pursuant to a ballot proposition submitted and	59
approved by electors of a municipal corporation under section	60
5705.19 or 5705.191 and section 5705.25 of the Revised Code	61
before the effective date of this act.	62

(B) Notwithstanding section 5705.19 or 5705.191 of the	63
Revised Code to the contrary, any qualifying continuing tax shall	64
continue to be levied through the following tax year, whichever	65
tax year ends earliest:	66

(1) Tax year 2003;

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(2) The tax year immediately preceding the first tax year in	68
which the tax approved pursuant to division (C) of this section is	69
levied;	70

(3) A tax year as may be designated by resolution of the	71
legislative authority.	72

(C) The legislative authority of a municipal corporation	73
levying a qualifying continuing tax may declare by resolution	74
that, upon the expiration or termination of the tax pursuant to	75
division (B) of this section, the amount of taxes that may be	76
raised within the ten-mill limitation will be insufficient to	77
provide for the necessary requirements of the municipal	78
corporation, and that it is therefore necessary to replace that	79
tax by levying a tax in excess of that limitation for the same	80
purpose for which that tax is levied. The resolution shall state	81
the rate of the tax, which shall not exceed the rate of the	82
qualifying continuing tax; the number of years the tax is to be	83
levied, which may not exceed five years; and the first year in	84
which the tax is to be levied, which shall be the tax year ensuing	85
the tax year in which the election is held. The legislative	86
authority shall cause a copy of the resolution to be certified to	87
the county board of elections not later than seventy-five days	88
before the day of the election at which the question of the tax	89
will be submitted. The question of the tax may be submitted at	90
any special election, as defined in section 3501.01 of the Revised	91
Code, held in the municipal corporation on a date consistent with	92
division (D) of that section, but not later than November 4, 2003.	93

Upon receiving the copy of the resolution, the board of	94
elections shall make the necessary arrangements for submission of	95
the question, and the election shall be conducted, canvassed, and	96
certified in the manner provided under section 5705.25 of the	97
Revised Code, and the board shall provide notice of the election	98
as prescribed by that section.	99

The form of the ballot shall be as follows:

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"A tax to replace an existing tax for the benefit of	101
............... (name of municipal corporation) for the purpose of	102
............ (purpose of the tax) at a rate not exceeding	103
.......... mills per dollar of valuation, which amounts to	104
.......... (rate expressed in dollars and cents) per one hundred	105
dollars in valuation for .......... (number of years for which the	106
tax will be levied).	107

(D) The question of the tax shall be submitted as a separate	113
proposition but may be printed on the same ballot with any other	114
proposition submitted at the same election other than the election	115
of officers. Immediately after the canvass, the board of	116
elections shall certify the results of the election to the Tax	117
Commissioner and the legislative authority. A tax levied pursuant	118
to this section shall be considered to be a tax levied pursuant to	119
section 5705.19 or section 5705.191 and sections 5705.25 and	120
5705.26 of the Revised Code for the purpose of any section of the	121
Revised Code referring to taxes levied pursuant to those sections.	122
For the purpose of division (D)(1) of section 319.301 of the	123
Revised Code, a tax levied pursuant to this section shall be	124
considered to be a renewal of an existing tax, and not a	125
replacement levy under section 5705.192 of the Revised Code.	126

If a majority of electors voting on the question vote in	127
favor thereof, the legislative authority shall certify the levy to	128
the county auditor, who shall extend it on the tax lists for the	129
succeeding tax year; the qualifying continuing tax that is	130
replaced shall not be extended on the tax list in any succeeding	131
tax year. If a majority of electors voting on the question do not	132
vote in favor thereof, the qualifying continuing tax shall	133
continue to be extended on the tax lists as prescribed in division	134
(B)(1), (2), or (3) of this section.	135

(E) If a majority of electors voting on the question vote in	136
favor thereof, the legislative authority may anticipate a fraction	137
of the proceeds of the levy by issuing anticipation notes prior to	138
the first collection of taxes from the levy. The principal amount	139
of the notes shall not exceed fifty per cent of the total	140
estimated proceeds of the levy throughout the term of the levy.	141
The notes shall be issued pursuant to section 133.24 of the	142
Revised Code.	143

(F) This section is supplemental to sections 5705.19 and	144
5705.191 of the Revised Code.	145

Section 4. Section 3 of this act is hereby repealed,	146
effective January 1, 2004.	147