H. B. No. 547 As Introduced

As Introduced

129th General Assembly

Regular Session

2011-2012

H. B. No. 547

Representative Pillich

A BILL

To amend sections 5751.20 and 5751.21 of the Revised

Code to modify the school district reimbursement

schedule for the loss of revenue from the tangible

personal property tax phase-out.

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

Section 1. That sections 5751.20 and 5751.21 of the Revised	5
Code be amended to read as follows:	6

Sec. 5751.20. (A) As used in sections 5751.20 to 5751.22 of	7
the Revised Code:	8

(1) "School district," "joint vocational school district,"	9
"local taxing unit," "recognized valuation," "fixed-rate levy,"	10
and "fixed-sum levy" have the same meanings as used in section	11
5727.84 of the Revised Code.	12

(2) "State education aid" for a school district means the	13
following:	14

(a) For fiscal years prior to fiscal year 2010, the sum of	15
state aid amounts computed for the district under the following	16
provisions, as they existed for the applicable fiscal year:	17
division (A) of section 3317.022 of the Revised Code, including	18
the amounts calculated under sections 3317.029 and 3317.0217 of	19
the Revised Code; divisions (C)(1), (C)(4), (D), (E), and (F) of	20
section 3317.022; divisions (B), (C), and (D) of section 3317.023;	21
divisions (L) and (N) of section 3317.024; section 3317.0216; and	22
any unit payments for gifted student services paid under sections	23
3317.05, 3317.052, and 3317.053 of the Revised Code; except that,	24
for fiscal years 2008 and 2009, the amount computed for the	25
district under Section 269.20.80 of H.B. 119 of the 127th general	26
assembly and as that section subsequently may be amended shall be	27
substituted for the amount computed under division (D) of section	28
3317.022 of the Revised Code, and the amount computed under	29
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	30
that section subsequently may be amended shall be included.	31

(b) For fiscal years 2010 and 2011, the sum of the amounts	32
computed under former sections 3306.052, 3306.12, 3306.13,	33
3306.19, 3306.191, and 3306.192 of the Revised Code;	34

(c) For fiscal years 2012 and 2013, the amount paid in	35
accordance with ~~the section~~Section 267.30.50 of H.B. 153 of the	36
129th general assembly entitled "FUNDING FOR CITY, EXEMPTED	37
VILLAGE, AND LOCAL SCHOOL DISTRICTS."	38

(3) "State education aid" for a joint vocational school	39
district means the following:	40

(a) For fiscal years prior to fiscal year 2010, the sum of	41
the state aid computed for the district under division (N) of	42
section 3317.024 and section 3317.16 of the Revised Code, except	43
that, for fiscal years 2008 and 2009, the amount computed under	44
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	45
that section subsequently may be amended shall be included.	46

(b) For fiscal years 2010 and 2011, the amount paid in	47
accordance with ~~the section~~Section 265.30.50 of H.B. 1 of the	48
128th general assembly entitled "FUNDING FOR JOINT VOCATIONAL	49
SCHOOL DISTRICTS."	50

(c) For fiscal years 2012 and 2013, the amount paid in	51
accordance with ~~the section~~Section 267.30.60 of H.B. 153 of the	52
129th general assembly entitled "FUNDING FOR JOINT VOCATIONAL	53
SCHOOL DISTRICTS."	54

(4) "State education aid offset" means the amount determined	55
for each school district or joint vocational school district under	56
division (A)(1) of section 5751.21 of the Revised Code.	57

(5) "Machinery and equipment property tax value loss" means	58
the amount determined under division (C)(1) of this section.	59

(6) "Inventory property tax value loss" means the amount	60
determined under division (C)(2) of this section.	61

(7) "Furniture and fixtures property tax value loss" means	62
the amount determined under division (C)(3) of this section.	63

(8) "Machinery and equipment fixed-rate levy loss" means the	64
amount determined under division (D)(1) of this section.	65

(9) "Inventory fixed-rate levy loss" means the amount	66
determined under division (D)(2) of this section.	67

(10) "Furniture and fixtures fixed-rate levy loss" means the	68
amount determined under division (D)(3) of this section.	69

(11) "Total fixed-rate levy loss" means the sum of the	70
machinery and equipment fixed-rate levy loss, the inventory	71
fixed-rate levy loss, the furniture and fixtures fixed-rate levy	72
loss, and the telephone company fixed-rate levy loss.	73

(12) "Fixed-sum levy loss" means the amount determined under	74
division (E) of this section.	75

(13) "Machinery and equipment" means personal property	76
subject to the assessment rate specified in division (F) of	77
section 5711.22 of the Revised Code.	78

(14) "Inventory" means personal property subject to the	79
assessment rate specified in division (E) of section 5711.22 of	80
the Revised Code.	81

(15) "Furniture and fixtures" means personal property subject	82
to the assessment rate specified in division (G) of section	83
5711.22 of the Revised Code.	84

(16) "Qualifying levies" are levies in effect for tax year	85
2004 or applicable to tax year 2005 or approved at an election	86
conducted before September 1, 2005. For the purpose of determining	87
the rate of a qualifying levy authorized by section 5705.212 or	88
5705.213 of the Revised Code, the rate shall be the rate that	89
would be in effect for tax year 2010.	90

(17) "Telephone property" means tangible personal property of	91
a telephone, telegraph, or interexchange telecommunications	92
company subject to an assessment rate specified in section	93
5727.111 of the Revised Code in tax year 2004.	94

(18) "Telephone property tax value loss" means the amount	95
determined under division (C)(4) of this section.	96

(19) "Telephone property fixed-rate levy loss" means the	97
amount determined under division (D)(4) of this section.	98

(20) "Taxes charged and payable" means taxes charged and	99
payable after the reduction required by section 319.301 of the	100
Revised Code but before the reductions required by sections	101
319.302 and 323.152 of the Revised Code.	102

(21) "Median estate tax collections" means, in the case of a	103
municipal corporation to which revenue from the taxes levied in	104
Chapter 5731. of the Revised Code was distributed in each of	105
calendar years 2006, 2007, 2008, and 2009, the median of those	106
distributions. In the case of a municipal corporation to which no	107
distributions were made in one or more of those years, "median	108
estate tax collections" means zero.	109

(22) "Total resources," in the case of a school district,	110
means the sum of the amounts in divisions (A)(22)(a) to (h) of	111
this section less any reduction required under division (A)(32) of	112
this section.	113

(a) The state education aid for fiscal year 2010;

114

(b) The sum of the payments received by the school district	115
in fiscal year 2010 for current expense levy losses pursuant to	116
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of	117
section 5751.21 of the Revised Code, excluding the portion of such	118
payments attributable to levies for joint vocational school	119
district purposes;	120

(c) The sum of fixed-sum levy loss payments received by the	121
school district in fiscal year 2010 pursuant to division (E)(1) of	122
section 5727.85 and division (E)(1) of section 5751.21 of the	123
Revised Code for fixed-sum levies imposed for a purpose other than	124
paying debt charges;	125

(d) Fifty per cent of the school district's taxes charged and	126
payable against all property on the tax list of real and public	127
utility property for current expense purposes for tax year 2008,	128
including taxes charged and payable from emergency levies imposed	129
under section 5709.194 of the Revised Code and excluding taxes	130
levied for joint vocational school district purposes;	131

(e) Fifty per cent of the school district's taxes charged and	132
payable against all property on the tax list of real and public	133
utility property for current expenses for tax year 2009, including	134
taxes charged and payable from emergency levies and excluding	135
taxes levied for joint vocational school district purposes;	136

(f) The school district's taxes charged and payable against	137
all property on the general tax list of personal property for	138
current expenses for tax year 2009, including taxes charged and	139
payable from emergency levies;	140

(g) The amount certified for fiscal year 2010 under division	141
(A)(2) of section 3317.08 of the Revised Code;	142

(h) Distributions received during calendar year 2009 from	143
taxes levied under section 718.09 of the Revised Code.	144

(23) "Total resources," in the case of a joint vocational	145
school district, means the sum of amounts in divisions (A)(23)(a)	146
to (g) of this section less any reduction required under division	147
(A)(32) of this section.	148

(a) The state education aid for fiscal year 2010;

149

(b) The sum of the payments received by the joint vocational	150
school district in fiscal year 2010 for current expense levy	151
losses pursuant to division (C)(2) of section 5727.85 and	152
divisions (C)(8) and (9) of section 5751.21 of the Revised Code;	153

(c) Fifty per cent of the joint vocational school district's	154
taxes charged and payable against all property on the tax list of	155
real and public utility property for current expense purposes for	156
tax year 2008;	157

(d) Fifty per cent of the joint vocational school district's	158
taxes charged and payable against all property on the tax list of	159
real and public utility property for current expenses for tax year	160
2009;	161

(e) Fifty per cent of a city, local, or exempted village	162
school district's taxes charged and payable against all property	163
on the tax list of real and public utility property for current	164
expenses of the joint vocational school district for tax year	165
2008;	166

(f) Fifty per cent of a city, local, or exempted village	167
school district's taxes charged and payable against all property	168
on the tax list of real and public utility property for current	169
expenses of the joint vocational school district for tax year	170
2009;	171

(g) The joint vocational school district's taxes charged and	172
payable against all property on the general tax list of personal	173
property for current expenses for tax year 2009.	174

(24) "Total resources," in the case of county mental health	175
and disability related functions, means the sum of the amounts in	176
divisions (A)(24)(a) and (b) of this section less any reduction	177
required under division (A)(32) of this section.	178

(a) The sum of the payments received by the county for mental	179
health and developmental disability related functions in calendar	180
year 2010 under division (A)(1) of section 5727.86 and ~~division~~	181
divisions (A)(1) and (2) of section 5751.22 of the Revised Code as	182
they existed at that time;	183

(b) With respect to taxes levied by the county for mental	184
health and developmental disability related purposes, the taxes	185
charged and payable for such purposes against all property on the	186
tax list of real and public utility property for tax year 2009.	187

(25) "Total resources," in the case of county senior services	188
related functions, means the sum of the amounts in divisions	189
(A)(25)(a) and (b) of this section less any reduction required	190
under division (A)(32) of this section.	191

(a) The sum of the payments received by the county for senior	192
services related functions in calendar year 2010 under division	193
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	194
5751.22 of the Revised Code as they existed at that time;	195

(b) With respect to taxes levied by the county for senior	196
services related purposes, the taxes charged and payable for such	197
purposes against all property on the tax list of real and public	198
utility property for tax year 2009.	199

(26) "Total resources," in the case of county children's	200
services related functions, means the sum of the amounts in	201
divisions (A)(26)(a) and (b) of this section less any reduction	202
required under division (A)(32) of this section.	203

(a) The sum of the payments received by the county for	204
children's services related functions in calendar year 2010 under	205
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of	206
section 5751.22 of the Revised Code as they existed at that time;	207

(b) With respect to taxes levied by the county for children's	208
services related purposes, the taxes charged and payable for such	209
purposes against all property on the tax list of real and public	210
utility property for tax year 2009.	211

(27) "Total resources," in the case of county public health	212
related functions, means the sum of the amounts in divisions	213
(A)(27)(a) and (b) of this section less any reduction required	214
under division (A)(32) of this section.	215

(a) The sum of the payments received by the county for public	216
health related functions in calendar year 2010 under division	217
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	218
5751.22 of the Revised Code as they existed at that time;	219

(b) With respect to taxes levied by the county for public	220
health related purposes, the taxes charged and payable for such	221
purposes against all property on the tax list of real and public	222
utility property for tax year 2009.	223

(28) "Total resources," in the case of all county functions	224
not included in divisions (A)(24) to (27) of this section, means	225
the sum of the amounts in divisions (A)(28)(a) to (d) of this	226
section less any reduction required under division (A)(32) of this	227
section.	228

(a) The sum of the payments received by the county for all	229
other purposes in calendar year 2010 under division (A)(1) of	230
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of	231
the Revised Code as they existed at that time;	232

(b) The county's percentage share of county undivided local	233
government fund allocations as certified to the tax commissioner	234
for calendar year 2010 by the county auditor under division (J) of	235
section 5747.51 of the Revised Code or division (F) of section	236
5747.53 of the Revised Code multiplied by the total amount	237
actually distributed in calendar year 2010 from the county	238
undivided local government fund;	239

(c) With respect to taxes levied by the county for all other	240
purposes, the taxes charged and payable for such purposes against	241
all property on the tax list of real and public utility property	242
for tax year 2009, excluding taxes charged and payable for the	243
purpose of paying debt charges;	244

(d) The sum of the amounts distributed to the county in	245
calendar year 2010 for the taxes levied pursuant to sections	246
5739.021 and 5741.021 of the Revised Code.	247

(29) "Total resources," in the case of a municipal	248
corporation, means the sum of the amounts in divisions (A)(29)(a)	249
to (g) of this section less any reduction required under division	250
(A)(32) of this section.	251

(a) The sum of the payments received by the municipal	252
corporation in calendar year 2010 under division (A)(1) of section	253
5727.86 and divisions (A)(1) and (2) of section 5751.22 of the	254
Revised Code as they existed at that time;	255

(b) The municipal corporation's percentage share of county	256
undivided local government fund allocations as certified to the	257
tax commissioner for calendar year 2010 by the county auditor	258
under division (J) of section 5747.51 of the Revised Code or	259
division (F) of section 5747.53 of the Revised Code multiplied by	260
the total amount actually distributed in calendar year 2010 from	261
the county undivided local government fund;	262

(c) The sum of the amounts distributed to the municipal	263
corporation in calendar year 2010 pursuant to section 5747.50 of	264
the Revised Code;	265

(d) With respect to taxes levied by the municipal	266
corporation, the taxes charged and payable against all property on	267
the tax list of real and public utility property for current	268
expenses, defined in division (A)(33) of this section, for tax	269
year 2009;	270

(e) The amount of admissions tax collected by the municipal	271
corporation in calendar year 2008, or if such information has not	272
yet been reported to the tax commissioner, in the most recent year	273
before 2008 for which the municipal corporation has reported data	274
to the commissioner;	275

(f) The amount of income taxes collected by the municipal	276
corporation in calendar year 2008, or if such information has not	277
yet been reported to the tax commissioner, in the most recent year	278
before 2008 for which the municipal corporation has reported data	279
to the commissioner;	280

(g) The municipal corporation's median estate tax	281
collections.	282

(30) "Total resources," in the case of a township, means the	283
sum of the amounts in divisions (A)(30)(a) to (c) of this section	284
less any reduction required under division (A)(32) of this	285
section.	286

(a) The sum of the payments received by the township in	287
calendar year 2010 pursuant to division (A)(1) of section 5727.86	288
of the Revised Code and divisions (A)(1) and (2) of section	289
5751.22 of the Revised Code as they existed at that time,	290
excluding payments received for debt purposes;	291

(b) The township's percentage share of county undivided local	292
government fund allocations as certified to the tax commissioner	293
for calendar year 2010 by the county auditor under division (J) of	294
section 5747.51 of the Revised Code or division (F) of section	295
5747.53 of the Revised Code multiplied by the total amount	296
actually distributed in calendar year 2010 from the county	297
undivided local government fund;	298

(c) With respect to taxes levied by the township, the taxes	299
charged and payable against all property on the tax list of real	300
and public utility property for tax year 2009 excluding taxes	301
charged and payable for the purpose of paying debt charges.	302

(31) "Total resources," in the case of a local taxing unit	303
that is not a county, municipal corporation, or township, means	304
the sum of the amounts in divisions (A)(31)(a) to (e) of this	305
section less any reduction required under division (A)(32) of this	306
section.	307

(a) The sum of the payments received by the local taxing unit	308
in calendar year 2010 pursuant to division (A)(1) of section	309
5727.86 of the Revised Code and divisions (A)(1) and (2) of	310
section 5751.22 of the Revised Code as they existed at that time;	311

(b) The local taxing unit's percentage share of county	312
undivided local government fund allocations as certified to the	313
tax commissioner for calendar year 2010 by the county auditor	314
under division (J) of section 5747.51 of the Revised Code or	315
division (F) of section 5747.53 of the Revised Code multiplied by	316
the total amount actually distributed in calendar year 2010 from	317
the county undivided local government fund;	318

(c) With respect to taxes levied by the local taxing unit,	319
the taxes charged and payable against all property on the tax list	320
of real and public utility property for tax year 2009 excluding	321
taxes charged and payable for the purpose of paying debt charges;	322

(d) The amount received from the tax commissioner during	323
calendar year 2010 for sales or use taxes authorized under	324
sections 5739.023 and 5741.022 of the Revised Code;	325

(e) For institutions of higher education receiving tax	326
revenue from a local levy, as identified in section 3358.02 of the	327
Revised Code, the final state share of instruction allocation for	328
fiscal year 2010 as calculated by the board of regents and	329
reported to the state controlling board.	330

(32) If a fixed-rate levy that is a qualifying levy is not	331
imposed in any year after tax year 2010, "total resources" used to	332
compute payments to be made under division (C)(12) of section	333
5751.21 or division (A)(1)(b) or (c) of section 5751.22 of the	334
Revised Code in the tax years following the last year the levy is	335
imposed shall be reduced by the amount of payments attributable to	336
the fixed-rate levy loss of that levy as would be computed under	337
division (C)(2) of section 5727.85, division (A)(1) of section	338
5727.85, divisions (C)(8) and (9) of section 5751.21, or division	339
(A)(1) of section 5751.22 of the Revised Code.	340

(33) "Municipal current expense property tax levies" means	341
all property tax levies of a municipality, except those with the	342
following levy names: airport resurfacing; bond or any levy name	343
including the word "bond"; capital improvement or any levy name	344
including the word "capital"; debt or any levy name including the	345
word "debt"; equipment or any levy name including the word	346
"equipment," unless the levy is for combined operating and	347
equipment; employee termination fund; fire pension or any levy	348
containing the word "pension," including police pensions;	349
fireman's fund or any practically similar name; sinking fund; road	350
improvements or any levy containing the word "road"; fire truck or	351
apparatus; flood or any levy containing the word "flood";	352
conservancy district; county health; note retirement; sewage, or	353
any levy containing the words "sewage" or "sewer"; park	354
improvement; parkland acquisition; storm drain; street or any levy	355
name containing the word "street"; lighting, or any levy name	356
containing the word "lighting"; and water.	357

(34) "Current expense TPP allocation" means, in the case of a	358
school district or joint vocational school district, the sum of	359
the payments received by the school district in fiscal year 2011	360
pursuant to divisions (C)(10) and (11) of section 5751.21 of the	361
Revised Code to the extent paid for current expense levies. In the	362
case of a municipal corporation, "current expense TPP allocation"	363
means the sum of the payments received by the municipal	364
corporation in calendar year 2010 pursuant to divisions (A)(1) and	365
(2) of section 5751.22 of the Revised Code to the extent paid for	366
municipal current expense property tax levies as defined in	367
division (A)(33) of this section. If a fixed-rate levy that is a	368
qualifying levy is not imposed in any year after tax year 2010,	369
"current expense TPP allocation" used to compute payments to be	370
made under division (C)(12) of section 5751.21 or division	371
(A)(1)(b) or (c) of section 5751.22 of the Revised Code in the tax	372
years following the last year the levy is imposed shall be reduced	373
by the amount of payments attributable to the fixed-rate levy loss	374
of that levy as would be computed under divisions (C)(10) and (11)	375
of section 5751.21 or division (A)(1) of section 5751.22 of the	376
Revised Code.	377

(35) "TPP allocation" means the sum of payments received by a	378
local taxing unit in calendar year 2010 pursuant to divisions	379
(A)(1) and (2) of section 5751.22 of the Revised Code. If a	380
fixed-rate levy that is a qualifying levy is not imposed in any	381
year after tax year 2010, "TPP allocation" used to compute	382
payments to be made under division (A)(1)(b) or (c) of section	383
5751.22 of the Revised Code in the tax years following the last	384
year the levy is imposed shall be reduced by the amount of payment	385
attributable to the fixed-rate levy loss of that levy as would be	386
computed under division (A)(1) of that section.	387

(36) "Total TPP allocation" means, in the case of a school	388
district or joint vocational school district, the sum of the	389
amounts received in fiscal year 2011 pursuant to divisions (C)(10)	390
and (11) and (D) of section 5751.21 of the Revised Code. In the	391
case of a local taxing unit, "total TPP allocation" means the sum	392
of payments received by the unit in calendar year 2010 pursuant to	393
divisions (A)(1), (2), and (3) of section 5751.22 of the Revised	394
Code. If a fixed-rate levy that is a qualifying levy is not	395
imposed in any year after tax year 2010, "total TPP allocation"	396
used to compute payments to be made under division (C)(12) of	397
section 5751.21 or division (A)(1)(b) or (c) of section 5751.22 of	398
the Revised Code in the tax years following the last year the levy	399
is imposed shall be reduced by the amount of payments attributable	400
to the fixed-rate levy loss of that levy as would be computed	401
under divisions (C)(10) and (11) of section 5751.21 or division	402
(A)(1) of section 5751.22 of the Revised Code.	403

(37) "Non-current expense TPP allocation" means the	404
difference of total TPP allocation minus the sum of current	405
expense TPP allocation and the portion of total TPP allocation	406
constituting reimbursement for debt levies, pursuant to division	407
(D) of section 5751.21 of the Revised Code in the case of a school	408
district or joint vocational school district and pursuant to	409
division (A)(3) of section 5751.22 of the Revised Code in the case	410
of a municipal corporation.	411

(38) "Threshold per cent" means, in the case of a school	412
district or joint vocational school district, two per cent for	413
fiscal year 2012 and four per cent for fiscal ~~years~~year 2013 ~~and~~	414
~~thereafter~~. In the case of a local taxing unit, "threshold per	415
cent" means two per cent for tax year 2011, four per cent for tax	416
year 2012, and six per cent for tax years 2013 and thereafter.	417

(B) The commercial activities tax receipts fund is hereby	418
created in the state treasury and shall consist of money arising	419
from the tax imposed under this chapter. Eighty-five	420
one-hundredths of one per cent of the money credited to that fund	421
shall be credited to the tax reform system implementation fund,	422
which is hereby created in the state treasury, and shall be used	423
to defray the costs incurred by the department of taxation in	424
administering the tax imposed by this chapter and in implementing	425
tax reform measures. The remainder in the commercial activities	426
tax receipts fund shall be credited for each fiscal year in the	427
following percentages to the general revenue fund, to the school	428
district tangible property tax replacement fund, which is hereby	429
created in the state treasury for the purpose of making the	430
payments described in section 5751.21 of the Revised Code, and to	431
the local government tangible property tax replacement fund, which	432
is hereby created in the state treasury for the purpose of making	433
the payments described in section 5751.22 of the Revised Code, in	434
the following percentages:	435

Fiscal year	General Revenue Fund	School District Tangible Property Tax Replacement Fund	Local Government Tangible Property Tax Replacement Fund	436
2006	67.7%	22.6%	9.7%	437
2007	0%	70.0%	30.0%	438
2008	0%	70.0%	30.0%	439
2009	0%	70.0%	30.0%	440
2010	0%	70.0%	30.0%	441
2011	0%	70.0%	30.0%	442
2012	25.0%	52.5%	22.5%	443
2013 and thereafter	50.0%	35.0%	15.0%	444

(C) Not later than September 15, 2005, the tax commissioner	445
shall determine for each school district, joint vocational school	446
district, and local taxing unit its machinery and equipment,	447
inventory property, furniture and fixtures property, and telephone	448
property tax value losses, which are the applicable amounts	449
described in divisions (C)(1), (2), (3), and (4) of this section,	450
except as provided in division (C)(5) of this section:	451

(1) Machinery and equipment property tax value loss is the	452
taxable value of machinery and equipment property as reported by	453
taxpayers for tax year 2004 multiplied by:	454

(a) For tax year 2006, thirty-three and eight-tenths per	455
cent;	456

(b) For tax year 2007, sixty-one and three-tenths per cent;

457

458

(d) For tax year 2009 and thereafter, one hundred per cent.

459

(2) Inventory property tax value loss is the taxable value of	460
inventory property as reported by taxpayers for tax year 2004	461
multiplied by:	462

(a) For tax year 2006, a fraction, the numerator of which is	463
five and three-fourths and the denominator of which is	464
twenty-three;	465

(b) For tax year 2007, a fraction, the numerator of which is	466
nine and one-half and the denominator of which is twenty-three;	467

(c) For tax year 2008, a fraction, the numerator of which is	468
thirteen and one-fourth and the denominator of which is	469
twenty-three;	470

(d) For tax year 2009 and thereafter a fraction, the	471
numerator of which is seventeen and the denominator of which is	472
twenty-three.	473

(3) Furniture and fixtures property tax value loss is the	474
taxable value of furniture and fixture property as reported by	475
taxpayers for tax year 2004 multiplied by:	476

(a) For tax year 2006, twenty-five per cent;

477

(b) For tax year 2007, fifty per cent;

478

479

(d) For tax year 2009 and thereafter, one hundred per cent.

480

The taxable value of property reported by taxpayers used in	481
divisions (C)(1), (2), and (3) of this section shall be such	482
values as determined to be final by the tax commissioner as of	483
August 31, 2005. Such determinations shall be final except for any	484
correction of a clerical error that was made prior to August 31,	485
2005, by the tax commissioner.	486

(4) Telephone property tax value loss is the taxable value of	487
telephone property as taxpayers would have reported that property	488
for tax year 2004 if the assessment rate for all telephone	489
property for that year were twenty-five per cent, multiplied by:	490

(a) For tax year 2006, zero per cent;

491

(b) For tax year 2007, zero per cent;

492

493

(d) For tax year 2009, sixty per cent;

494

(e) For tax year 2010, eighty per cent;

495

(f) For tax year 2011 and thereafter, one hundred per cent.

496

(5) Division (C)(5) of this section applies to any school	497
district, joint vocational school district, or local taxing unit	498
in a county in which is located a facility currently or formerly	499
devoted to the enrichment or commercialization of uranium or	500
uranium products, and for which the total taxable value of	501
property listed on the general tax list of personal property for	502
any tax year from tax year 2001 to tax year 2004 was fifty per	503
cent or less of the taxable value of such property listed on the	504
general tax list of personal property for the next preceding tax	505
year.	506

In computing the fixed-rate levy losses under divisions	507
(D)(1), (2), and (3) of this section for any school district,	508
joint vocational school district, or local taxing unit to which	509
division (C)(5) of this section applies, the taxable value of such	510
property as listed on the general tax list of personal property	511
for tax year 2000 shall be substituted for the taxable value of	512
such property as reported by taxpayers for tax year 2004, in the	513
taxing district containing the uranium facility, if the taxable	514
value listed for tax year 2000 is greater than the taxable value	515
reported by taxpayers for tax year 2004. For the purpose of making	516
the computations under divisions (D)(1), (2), and (3) of this	517
section, the tax year 2000 valuation is to be allocated to	518
machinery and equipment, inventory, and furniture and fixtures	519
property in the same proportions as the tax year 2004 values. For	520
the purpose of the calculations in division (A) of section 5751.21	521
of the Revised Code, the tax year 2004 taxable values shall be	522
used.	523

To facilitate the calculations required under division (C) of	524
this section, the county auditor, upon request from the tax	525
commissioner, shall provide by August 1, 2005, the values of	526
machinery and equipment, inventory, and furniture and fixtures for	527
all single-county personal property taxpayers for tax year 2004.	528

(D) Not later than September 15, 2005, the tax commissioner	529
shall determine for each tax year from 2006 through 2009 for each	530
school district, joint vocational school district, and local	531
taxing unit its machinery and equipment, inventory, and furniture	532
and fixtures fixed-rate levy losses, and for each tax year from	533
2006 through 2011 its telephone property fixed-rate levy loss.	534
Except as provided in division (F) of this section, such losses	535
are the applicable amounts described in divisions (D)(1), (2),	536
(3), and (4) of this section:	537

(1) The machinery and equipment fixed-rate levy loss is the	538
machinery and equipment property tax value loss multiplied by the	539
sum of the tax rates of fixed-rate qualifying levies.	540

(2) The inventory fixed-rate loss is the inventory property	541
tax value loss multiplied by the sum of the tax rates of	542
fixed-rate qualifying levies.	543

(3) The furniture and fixtures fixed-rate levy loss is the	544
furniture and fixture property tax value loss multiplied by the	545
sum of the tax rates of fixed-rate qualifying levies.	546

(4) The telephone property fixed-rate levy loss is the	547
telephone property tax value loss multiplied by the sum of the tax	548
rates of fixed-rate qualifying levies.	549

(E) Not later than September 15, 2005, the tax commissioner	550
shall determine for each school district, joint vocational school	551
district, and local taxing unit its fixed-sum levy loss. The	552
fixed-sum levy loss is the amount obtained by subtracting the	553
amount described in division (E)(2) of this section from the	554
amount described in division (E)(1) of this section:	555

(1) The sum of the machinery and equipment property tax value	556
loss, the inventory property tax value loss, ~~and~~ the furniture and	557
fixtures property tax value loss, and~~, for 2008 through 2010,~~ the	558
telephone property tax value loss of the district or unit	559
multiplied by the sum of the fixed-sum tax rates of qualifying	560
levies. For 2006 through 2010, this computation shall include all	561
qualifying levies remaining in effect for the current tax year and	562
any school district levies imposed under section 5705.194 or	563
5705.213 of the Revised Code that are qualifying levies not	564
remaining in effect for the current year. For 2011 ~~through 2017 in~~	565
~~the case of school district levies imposed under section 5705.194~~	566
~~or 5705.213 of the Revised Code and for all years after 2010 in~~	567
~~the case of other fixed-sum levies~~and thereafter, this	568
computation shall include only qualifying levies remaining in	569
effect for the current year. For purposes of this computation, a	570
qualifying school district levy imposed under section 5705.194 or	571
5705.213 of the Revised Code remains in effect in a year after	572
2010 only if, for that year, the board of education levies a	573
school district levy imposed under section 5705.194, 5705.199,	574
5705.213, or 5705.219 of the Revised Code for an annual sum at	575
least equal to the annual sum levied by the board in tax year 2004	576
less the amount of the payment certified under this division for	577
2006.	578

(2) The total taxable value in tax year 2004 less the sum of	579
the machinery and equipment, inventory, furniture and fixtures,	580
and telephone property tax value losses in each school district,	581
joint vocational school district, and local taxing unit multiplied	582
by one-half of one mill per dollar.	583

(3) For the calculations in divisions (E)(1) and (2) of this	584
section, the tax value losses are those that would be calculated	585
for tax year 2009 under divisions (C)(1), (2), and (3) of this	586
section and for tax year 2011 under division (C)(4) of this	587
section.	588

(4) To facilitate the calculation under divisions (D) and (E)	589
of this section, not later than September 1, 2005, any school	590
district, joint vocational school district, or local taxing unit	591
that has a qualifying levy that was approved at an election	592
conducted during 2005 before September 1, 2005, shall certify to	593
the tax commissioner a copy of the county auditor's certificate of	594
estimated property tax millage for such levy as required under	595
division (B) of section 5705.03 of the Revised Code, which is the	596
rate that shall be used in the calculations under such divisions.	597

If the amount determined under division (E) of this section	598
for any school district, joint vocational school district, or	599
local taxing unit is greater than zero, that amount shall equal	600
the reimbursement to be paid pursuant to division (E) of section	601
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,	602
and the one-half of one mill that is subtracted under division	603
(E)(2) of this section shall be apportioned among all contributing	604
fixed-sum levies in the proportion that each levy bears to the sum	605
of all fixed-sum levies within each school district, joint	606
vocational school district, or local taxing unit.	607

(F) If a school district levies a tax under section 5705.219	608
of the Revised Code, the fixed-rate levy loss for qualifying	609
levies, to the extent repealed under that section, shall equal the	610
sum of the following amounts in lieu of the amounts computed for	611
such levies under division (D) of this section:	612

(1) The sum of the rates of qualifying levies to the extent	613
so repealed multiplied by the sum of the machinery and equipment,	614
inventory, and furniture and fixtures tax value losses for 2009 as	615
~~determined under that division~~;	616

(2) The sum of the rates of qualifying levies to the extent	617
so repealed multiplied by the telephone property tax value loss	618
for 2011 ~~as determined under that division~~.	619

The fixed-rate levy losses for qualifying levies to the	620
extent not repealed under section 5705.219 of the Revised Code	621
shall be as determined under division (D) of this section. The	622
revised fixed-rate levy losses determined under this division and	623
division (D) of this section first apply in the year following the	624
first year the district levies the tax under section 5705.219 of	625
the Revised Code.	626

(G) Not later than October 1, 2005, the tax commissioner	627
shall certify to the department of education for every school	628
district and joint vocational school district the machinery and	629
equipment, inventory, furniture and fixtures, and telephone	630
property tax value losses determined under division (C) of this	631
section, the machinery and equipment, inventory, furniture and	632
fixtures, and telephone fixed-rate levy losses determined under	633
division (D) of this section, and the fixed-sum levy losses	634
calculated under division (E) of this section. The calculations	635
under divisions (D) and (E) of this section shall separately	636
display the levy loss for each levy eligible for reimbursement.	637

(H) Not later than October 1, 2005, the tax commissioner	638
shall certify the amount of the fixed-sum levy losses to the	639
county auditor of each county in which a school district, joint	640
vocational school district, or local taxing unit with a fixed-sum	641
levy loss reimbursement has territory.	642

(I) Not later than the twenty-eighth day of February each	643
year beginning in 2011 and ending in 2014, the tax commissioner	644
shall certify to the department of education for each school	645
district first levying a tax under section 5705.219 of the Revised	646
Code in the preceding year the revised fixed-rate levy losses	647
determined under divisions (D) and (F) of this section.	648

Sec. 5751.21. (A) Not later than the thirtieth day of July	649
of 2007 through 2010, the department of education shall consult	650
with the director of budget and management and determine the	651
following for each school district and each joint vocational	652
school district eligible for payment under division (B) of this	653
section:	654

(1) The state education aid offset, which, except as provided	655
in division (A)(1)(c) of this section, is the difference obtained	656
by subtracting the amount described in division (A)(1)(b) of this	657
section from the amount described in division (A)(1)(a) of this	658
section:	659

(a) The state education aid computed for the school district	660
or joint vocational school district for the current fiscal year as	661
of the thirtieth day of July;	662

(b) The state education aid that would be computed for the	663
school district or joint vocational school district for the	664
current fiscal year as of the thirtieth day of July if the	665
valuation used in the calculation in division (B)(1) of section	666
3306.13 of the Revised Code as that division existed for fiscal	667
years 2010 and 2011 included the machinery and equipment,	668
inventory, furniture and fixtures, and telephone property tax	669
value losses for the school district or joint vocational school	670
district for the second preceding tax year, and if taxes charged	671
and payable associated with the tax value losses are accounted for	672
in any state education aid computation dependent on taxes charged	673
and payable.	674

(c) The state education aid offset for fiscal year 2010 and	675
fiscal year 2011 equals the greater of the state education aid	676
offset calculated for that fiscal year under divisions (A)(1)(a)	677
and (b) of this section and the state education aid offset	678
calculated for fiscal year 2009. For fiscal year 2012 and 2013,	679
the state education aid offset equals the state education aid	680
offset for fiscal year 2011.	681

(2) For fiscal years 2008 through 2011, the greater of zero	682
or the difference obtained by subtracting the state education aid	683
offset determined under division (A)(1) of this section from the	684
sum of the machinery and equipment fixed-rate levy loss, the	685
inventory fixed-rate levy loss, furniture and fixtures fixed-rate	686
levy loss, and telephone property fixed-rate levy loss certified	687
under divisions (G) and (I) of section 5751.20 of the Revised Code	688
for all taxing districts in each school district and joint	689
vocational school district for the second preceding tax year.	690

By the thirtieth day of July of each such year, the	691
department of education and the director of budget and management	692
shall agree upon the amount to be determined under division (A)(1)	693
of this section.	694

(B) On or before the thirty-first day of August of 2008,	695
2009, and 2010, the department of education shall recalculate the	696
offset described under division (A) of this section for the	697
previous fiscal year and recalculate the payments made under	698
division (C) of this section in the preceding fiscal year using	699
the offset calculated under this division. If the payments	700
calculated under this division differ from the payments made under	701
division (C) of this section in the preceding fiscal year, the	702
difference shall either be paid to a school district or recaptured	703
from a school district through an adjustment at the same times	704
during the current fiscal year that the payments under division	705
(C) of this section are made. In August and October of the current	706
fiscal year, the amount of each adjustment shall be three-sevenths	707
of the amount calculated under this division. In May of the	708
current fiscal year, the adjustment shall be one-seventh of the	709
amount calculated under this division.	710

(C) The department of education shall pay from the school	711
district tangible property tax replacement fund to each school	712
district and joint vocational school district all of the following	713
for fixed-rate levy losses certified under divisions (G) and (I)	714
of section 5751.20 of the Revised Code:	715

(1) On or before May 31, 2006, one-seventh of the total	716
fixed-rate levy loss for tax year 2006;	717

(2) On or before August 31, 2006, and October 31, 2006,	718
one-half of six-sevenths of the total fixed-rate levy loss for tax	719
year 2006;	720

(3) On or before May 31, 2007, one-seventh of the total	721
fixed-rate levy loss for tax year 2007;	722

(4) On or before August 31, 2007, and October 31, 2007,	723
forty-three per cent of the amount determined under division	724
(A)(2) of this section for fiscal year 2008, but not less than	725
zero, plus one-half of six-sevenths of the difference between the	726
total fixed-rate levy loss for tax year 2007 and the total	727
fixed-rate levy loss for tax year 2006.	728

(5) On or before May 31, 2008, fourteen per cent of the	729
amount determined under division (A)(2) of this section for fiscal	730
year 2008, but not less than zero, plus one-seventh of the	731
difference between the total fixed-rate levy loss for tax year	732
2008 and the total fixed-rate levy loss for tax year 2006.	733

(6) On or before August 31, 2008, and October 31, 2008,	734
forty-three per cent of the amount determined under division	735
(A)(2) of this section for fiscal year 2009, but not less than	736
zero, plus one-half of six-sevenths of the difference between the	737
total fixed-rate levy loss in tax year 2008 and the total	738
fixed-rate levy loss in tax year 2007.	739

(7) On or before May 31, 2009, fourteen per cent of the	740
amount determined under division (A)(2) of this section for fiscal	741
year 2009, but not less than zero, plus one-seventh of the	742
difference between the total fixed-rate levy loss for tax year	743
2009 and the total fixed-rate levy loss for tax year 2007.	744

(8) On or before August 31, 2009, and October 31, 2009,	745
forty-three per cent of the amount determined under division	746
(A)(2) of this section for fiscal year 2010, but not less than	747
zero, plus one-half of six-sevenths of the difference between the	748
total fixed-rate levy loss in tax year 2009 and the total	749
fixed-rate levy loss in tax year 2008.	750

(9) On or before May 31, 2010, fourteen per cent of the	751
amount determined under division (A)(2) of this section for fiscal	752
year 2010, but not less than zero, plus one-seventh of the	753
difference between the total fixed-rate levy loss in tax year 2010	754
and the total fixed-rate levy loss in tax year 2008.	755

(10) On or before August 31, 2010, and October 31, 2010,	756
forty-three per cent of the amount determined under division	757
(A)(2) of this section for fiscal year 2011, but not less than	758
zero, plus one-half of six-sevenths of the difference between the	759
telephone property fixed-rate levy loss for tax year 2010 and the	760
telephone property fixed-rate levy loss for tax year 2009.	761

(11) On or before May 31, 2011, fourteen per cent of the	762
amount determined under division (A)(2) of this section for fiscal	763
year 2011, but not less than zero, plus one-seventh of the	764
difference between the telephone property fixed-rate levy loss for	765
tax year 2011 and the telephone property fixed-rate levy loss for	766
tax year 2009.	767

(12) For fiscal years 2012 and ~~thereafter~~2013, the sum of	768
the amounts in divisions (C)(12)(a) or (b) and (c) of this section	769
shall be paid on or before the twentieth day of November and the	770
last day of May:	771

(a) If the ratio of current expense TPP allocation to total	772
resources is equal to or less than the threshold per cent, zero;	773

(b) If the ratio of current expense TPP allocation to total	774
resources is greater than the threshold per cent, fifty per cent	775
of the difference of current expense TPP allocation minus the	776
product of total resources multiplied by the threshold per cent;	777

(c) Fifty per cent of the product of non-current expense TPP	778
allocation multiplied by seventy-five per cent for fiscal year	779
2012 and fifty per cent for fiscal years 2013 and thereafter.	780

(13) For fiscal years 2014 and thereafter, one-half of the	781
amount calculated under division (C)(13)(a) of this section shall	782
be paid on or before the twentieth day of November and the last	783
day of May.	784

(a) The sum of the payments received by the school district	785
or joint vocational school district in fiscal year 2011 pursuant	786
to divisions (C)(10) and (11) of this section, multiplied by the	787
applicable percentage according to the following table:	788

Fiscal Year

School District Classes

789

	Class I	Class II	Class III	Class IV	790
2014	100%	100%	100%	100%	791
2015	100%	95%	90%	90%	792
2016	100%	95%	90%	80%	793
2017	100%	90%	80%	70%	794
2018	100%	90%	80%	60%	795
2019	100%	85%	70%	50%	796
2020	100%	85%	70%	40%	797
2021	100%	80%	60%	30%	798
2022	100%	80%	60%	20%	799
2023	100%	75%	50%	10%	800
2024	100%	75%	50%	0%	801
2025 and 2026	100%	70%	40%	0%	802
2027 and 2028	100%	65%	30%	0%	803
2029 and 2030	100%	60%	20%	0%	804
2031 and 2032	100%	55%	10%	0%	805
2033 and 2034	100%	50%	0%	0%	806
2035 and 2036	100%	45%	0%	0%	807
2037 and 2038	100%	40%	0%	0%	808
2039 and 2040	100%	35%	0%	0%	809
2041 and 2042	100%	30%	0%	0%	810
2043 and 2044	100%	25%	0%	0%	811
2045 and 2046	100%	20%	0%	0%	812
2047 and 2048	100%	15%	0%	0%	813
2049 and 2050	100%	10%	0%	0%	814
2051 and 2052	100%	5%	0%	0%	815
2053 and thereafter	100%	0%	0%	0%	816

(b) For purposes of this division:

817

(i) "Class I" includes each school district and joint	818
vocational district whose total fixed-rate levy loss as of tax	819
year 2011 is at least ten per cent of the district's total	820
resources.	821

(ii) "Class II" includes each school district and joint	822
vocational district whose total fixed-rate levy loss as of tax	823
year 2011 is at least five and four-fifths per cent but less than	824
ten per cent of the district's total resources.	825

(iii) "Class III" includes each school district and joint	826
vocational district whose total fixed-rate levy loss as of tax	827
year 2011 is at least three and three-tenths per cent but less	828
than five and four-fifths per cent of the district's total	829
resources.	830

(iv) "Class IV" includes each school district and joint	831
vocational district whose total fixed-rate levy loss as of tax	832
year 2011 is less than three and three-tenths per cent of the	833
district's total resources.	834

The department of education shall report to each school	835
district and joint vocational school district the apportionment of	836
the payments among the school district's or joint vocational	837
school district's funds based on the certifications under	838
divisions (G) and (I) of section 5751.20 of the Revised Code.	839

(D) For taxes levied within the ten-mill limitation for debt	840
purposes in tax year 2005, payments shall be made equal to one	841
hundred per cent of the loss computed as if the tax were a	842
fixed-rate levy, ~~but~~and those payments shall extend ~~from fiscal~~	843
~~year 2006 through fiscal year 2018,~~ as long as the qualifying levy	844
continues to be used for debt purposes. If the purpose of such a	845
qualifying levy is changed, that levy becomes subject to the	846
payments determined in division (C) of this section.	847

(E)(1) Not later than January 1, 2006, for each fixed-sum	848
levy of each school district or joint vocational school district	849
and for each year for which a determination is made under division	850
(E) of section 5751.20 of the Revised Code that a fixed-sum levy	851
loss is to be reimbursed, the tax commissioner shall certify to	852
the department of education the fixed-sum levy loss determined	853
under that division. The certification shall cover a time period	854
sufficient to include all fixed-sum levies for which the	855
commissioner made such a determination. On or before the last day	856
of May of the current year, the department shall pay from the	857
school district property tax replacement fund to the school	858
district or joint vocational school district one-third of the	859
fixed-sum levy loss so certified, plus one-third of the amount	860
certified under division (I) of section 5751.20 of the Revised	861
Code, and on or before the twentieth day of November, two-thirds	862
of the fixed-sum levy loss so certified, plus two-thirds of the	863
amount certified under division (I) of section 5751.20 of the	864
Revised Code. Payments under this division of the amounts	865
certified under division (I) of section 5751.20 of the Revised	866
Code shall continue until the levy adopted under section 5705.219	867
of the Revised Code expires.	868

(2) Beginning in 2006, by the first day of January of each	869
year, the tax commissioner shall review the certification	870
originally made under division (E)(1) of this section. If the	871
commissioner determines that a debt levy that had been scheduled	872
to be reimbursed in the current year has expired, a revised	873
certification for that and all subsequent years shall be made to	874
the department of education.	875

(F) Beginning in September 2007 and through June 2013, the	876
director of budget and management shall transfer from the school	877
district tangible property tax replacement fund to the general	878
revenue fund each of the following:	879

(1) On the first day of September, one-fourth of the amount	880
determined for that fiscal year under division (A)(1) of this	881
section;	882

(2) On the first day of December, one-fourth of the amount	883
determined for that fiscal year under division (A)(1) of this	884
section;	885

(3) On the first day of March, one-fourth of the amount	886
determined for that fiscal year under division (A)(1) of this	887
section;	888

(4) On the first day of June, one-fourth of the amount	889
determined for that fiscal year under division (A)(1) of this	890
section.	891

If, when a transfer is required under division (F)(1), (2),	892
(3), or (4) of this section, there is not sufficient money in the	893
school district tangible property tax replacement fund to make the	894
transfer in the required amount, the director shall transfer the	895
balance in the fund to the general revenue fund and may make	896
additional transfers on later dates as determined by the director	897
in a total amount that does not exceed one-fourth of the amount	898
determined for the fiscal year.	899

(G) If the total amount in the school district tangible	900
property tax replacement fund is insufficient to make all payments	901
under divisions (C), (D), and (E) of this section at the times the	902
payments are to be made, the director of budget and management	903
shall transfer from the general revenue fund to the school	904
district tangible property tax replacement fund the difference	905
between the total amount to be paid and the amount in the school	906
district tangible property tax replacement fund.	907

(H) On the fifteenth day of June of each year, the director	908
of budget and management may transfer any balance in the school	909
district tangible property tax replacement fund to the general	910
revenue fund.	911

(I) If all of the territory of a school district or joint	912
vocational school district is merged with another district, or if	913
a part of the territory of a school district or joint vocational	914
school district is transferred to an existing or newly created	915
district, the department of education, in consultation with the	916
tax commissioner, shall adjust the payments made under this	917
section as follows:	918

(1) For a merger of two or more districts, the fixed-sum levy	919
losses, total resources, current expense TPP allocation, total TPP	920
allocation, and non-current expense TPP allocation of the	921
successor district shall be the sum of such items for each of the	922
districts involved in the merger.	923

(2) If property is transferred from one district to a	924
previously existing district, the amount of total resources,	925
current expense TPP allocation, total TPP allocation, and	926
non-current expense TPP allocation that shall be transferred to	927
the recipient district shall be an amount equal to total	928
resources, current expense TPP allocation, total TPP allocation,	929
and non-current expense TPP allocation of the transferor district	930
times a fraction, the numerator of which is the number of pupils	931
being transferred to the recipient district, measured, in the case	932
of a school district, by average daily membership as reported	933
under division (A) of section 3317.03 of the Revised Code or, in	934
the case of a joint vocational school district, by formula ADM as	935
reported in division (D) of that section, and the denominator of	936
which is the average daily membership or formula ADM of the	937
transferor district.	938

(3) After December 31, 2010, if property is transferred from	939
one or more districts to a district that is newly created out of	940
the transferred property, the newly created district shall be	941
deemed not to have any total resources, current expense TPP	942
allocation, total TPP allocation, or non-current expense TPP	943
allocation.	944

(4) If the recipient district under division (I)(2) of this	945
section or the newly created district under division (I)(3) of	946
this section is assuming debt from one or more of the districts	947
from which the property was transferred and any of the districts	948
losing the property had fixed-sum levy losses, the department of	949
education, in consultation with the tax commissioner, shall make	950
an equitable division of the fixed-sum levy loss reimbursements.	951

Section 2. That existing sections 5751.20 and 5751.21 of the	952
Revised Code are hereby repealed.	953