As Introduced

127th General Assembly
Regular Session
2007-2008
H. B. No. 319


Representative Gibbs 

Cosponsors: Representatives DeGeeter, McGregor, J., Batchelder, Seitz 

A BILL
To amend sections 5727.111, 5727.30, and 5727.38 of 1
the Revised Code to reduce the public utility 2
property tax assessment rate for new pipe-line 3
company property and to exempt the gross receipts 4
of a pipe-line company from the public utility 5
excise tax.6


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

       Section 1. That sections 5727.111, 5727.30, and 5727.38 of 7
the Revised Code be amended to read as follows:8

       Sec. 5727.111.  The taxable property of each public utility,9
except a railroad company, and of each interexchange10
telecommunications company shall be assessed at the following11
percentages of true value:12

        (A) Fifty per cent in the case of the taxable transmission 13
and distribution property of a rural electric company, and 14
twenty-five per cent for all its other taxable property;15

       (B) In the case of a telephone or telegraph company,16
twenty-five per cent for taxable property first subject to17
taxation in this state for tax year 1995 or thereafter for tax 18
years before tax year 2007, and pursuant to division (H) of 19
section 5711.22 of the Revised Code for tax year 2007 and 20
thereafter, and the following for all other taxable property:21

       (1) For tax years prior to 2005, eighty-eight per cent;22

       (2) For tax year 2005, sixty-seven per cent;23

       (3) For tax year 2006, forty-six per cent;24

       (4) For tax year 2007 and thereafter, pursuant to division 25
(H) of section 5711.22 of the Revised Code.26

       (C) Twenty-five per cent in the case of a natural gas 27
company.28

       (D) Eighty-eight per cent in the case of a pipe-line,29
water-works, or heating company;30

       (E)(1) For tax year 2005, eighty-eight per cent in the case 31
of the taxable transmission and distribution property of an32
electric company, and twenty-five per cent for all its other33
taxable property;34

        (2) For tax year 2006 and each tax year thereafter, 35
eighty-five per cent in the case of the taxable transmission and 36
distribution property of an electric company, and twenty-four per 37
cent for all its other taxable property.38

       (F)(1) Twenty-five per cent in the case of an interexchange39
telecommunications company for tax years before tax year 2007;40

       (2) Pursuant to division (H) of section 5711.22 of the 41
Revised Code for tax year 2007 and thereafter.42

       (G) Twenty-five per cent in the case of a water43
transportation company.44

       (H) In the case of a pipe-line company, for tax years after 45
2006, twenty-five per cent for taxable property first subject to 46
taxation in this state for tax year 2007 or thereafter, and 47
eighty-eight per cent for all its other taxable property.48

       Sec. 5727.30.  (A) Except as provided in divisions (B), (C), 49
and (D), and (E) of this section, each public utility, except50
railroad companies, shall be subject to an annual excise tax, as 51
provided by sections 5727.31 to 5727.62 of the Revised Code, for 52
the privilege of owning property in this state or doing business 53
in this state during the twelve-month period next succeeding the54
period upon which the tax is based. The tax shall be imposed 55
against each such public utility that, on the first day of such 56
twelve-month period, owns property in this state or is doing 57
business in this state, and the lien for the tax, including any 58
penalties and interest accruing thereon, shall attach on such day 59
to the property of the public utility in this state.60

       (B) An electric company's or a rural electric company's gross 61
receipts received after April 30, 2001, are not subject to the 62
annual excise tax imposed by this section.63

       (C) A natural gas company's gross receipts received after64
April 30, 2000, are not subject to the annual excise tax imposed 65
by this section.66

       (D) A telephone company's gross receipts derived from amounts 67
billed to customers after June 30, 2004, are not subject to the 68
annual excise tax imposed by this section. Notwithstanding any 69
other provision of law, gross receipts derived from amounts billed 70
by a telephone company to customers prior to July 1, 2004, shall 71
be included in the telephone company's annual statement filed on 72
or before August 1, 2004, which shall be the last statement or 73
report filed under section 5727.31 of the Revised Code by a 74
telephone company. A telephone company shall not deduct from its 75
gross receipts included in that last statement any receipts it was 76
unable to collect from its customers for the period of July 1, 77
2003, to June 30, 2004.78

       (E) A pipe-line company's gross receipts received after April 79
30, 2007, are not subject to the annual excise tax imposed by this 80
section.81

       Sec. 5727.38.  On or before the first Monday of November, 82
annually, the tax commissioner shall assess an excise tax against 83
each public utility subject to the excise tax under section84
5727.30 of the Revised Code. The tax shall be computed by 85
multiplying the taxable gross receipts as determined by the86
commissioner under section 5727.33 of the Revised Code by six and 87
three-fourths per cent in the case of pipe-line companies, and88
four and three-fourths per cent in the case of all other 89
companies. The minimum tax for any such company for owning 90
property or doing business in this state shall be fifty dollars. 91
The assessment shall be certified to the taxpayer and treasurer of 92
state. 93

       Section 2. That existing sections 5727.111, 5727.30, and 94
5727.38 of the Revised Code are hereby repealed.95