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(123rd General Assembly)(Substitute House Bill Number 589)
AN ACT
To amend sections 3317.01, 3317.021, 3317.025, 5709.61, 5727.08, 5727.47, and
5727.471 of the Revised
Code to require public
utilities
to pay only the undisputed portion of property taxes if the
utility disputes the Tax Commissioner's valuation, to provide for
notification of any disputes to be given to county auditors and affected
taxing districts, and to allow electricity
generation plants and equipment to be exempted from taxation under the
enterprise zone law even if they operate during nonpeak periods and for more
than one-half of a year.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1 . That sections 3317.01, 3317.021, 3317.025, 5709.61, 5727.08,
5727.47, and 5727.471 of the Revised Code be amended to
read as follows:
Sec. 3317.01. As used in this section and section 3317.011
of the Revised Code, "school district," unless otherwise
specified, means any city, local, exempted village, joint
vocational, or cooperative education school district and
any educational service center. This chapter shall be administered by the state board of
education. The superintendent of public instruction shall
calculate the amounts payable to each school district and shall
certify the amounts payable to each eligible district to the
treasurer of the district as provided by this chapter. No moneys
shall be distributed pursuant to this chapter without the
approval of the controlling board. The state board of education shall, in accordance with
appropriations made by the general assembly, meet the financial
obligations of this chapter. Annually, the department of education shall calculate and report to each
school district the district's total state and local funds for providing an
adequate basic education to the district's nonhandicapped students, utilizing
the determination in section 3317.012 of the Revised Code. In addition, the
department shall
calculate and report separately for each school district the district's total
state and local funds for providng providing an adequate
education for its handicapped
students, utilizing the determinations in both sections 3317.012 and 3317.013
of the Revised Code. Not later than the thirty-first day of August of each fiscal year,
the department of education shall provide to each school district and
county MR/DD board a preliminary estimate of the amount of funding
that the department calculates the district will receive under each of
divisions (C)(1) and (5) of section 3317.022 of the Revised Code. No later
than the first day of December of each fiscal year, the department shall
update that preliminary estimate. Moneys distributed pursuant to this chapter shall be
calculated and paid on a fiscal year basis, beginning with the
first day of July and extending through the thirtieth day of
June. The moneys appropriated for each fiscal year shall be
distributed at least monthly to each school district unless
otherwise provided for. The state board shall submit a yearly
distribution plan to the controlling board at its
first meeting in July. The state board shall submit any proposed midyear
revision of the plan to the controlling
board in January. Any year-end revision of the plan shall be submitted to
the controlling board in June. If moneys appropriated for each
fiscal year are distributed other than monthly, such distribution
shall be on the same basis for each school district. The total amounts paid each month shall constitute, as
nearly as possible, one-twelfth of the total amount payable for
the entire year. Payments made during the first six months of
the fiscal year may be based on an estimate of the amounts
payable for the entire year. Payments made in the last six
months shall be based on the final calculation of the amounts
payable to each school district for that fiscal year. Payments
made in the last six months may be adjusted, if necessary, to
correct the amounts distributed in the first six months, and to
reflect enrollment increases when such are at least three per
cent. Except as otherwise provided, payments under this chapter
shall be made only to those school districts in which: (A) The school district, except for any
educational service center and any joint
vocational or cooperative education school district, levies for
current operating expenses at least twenty mills.
Levies for
joint vocational or cooperative education school districts or
county school financing districts, limited to or to the extent
apportioned to current expenses, shall be included in this
qualification requirement. School district income tax levies
under Chapter 5748. of the Revised Code, limited to or to the
extent apportioned to current operating expenses, shall be
included in this qualification requirement to the extent
determined by the tax commissioner under division (C)(D) of
section
3317.021 of the Revised Code. (B) The school year next preceding the fiscal year for
which such payments are authorized meets the requirement of
section 3313.48 or 3313.481 of the Revised Code, with regard to
the minimum number of days or hours school must be open for
instruction with pupils in attendance, for individualized
parent-teacher conference and reporting periods, and for
professional meetings of teachers. This requirement shall be
waived by the superintendent of public instruction if it had been
necessary for a school to be closed because of disease epidemic,
hazardous weather conditions, inoperability of school buses or other equipment
necessary to the school's operation, damage to a school building, or
other temporary circumstances due to utility failure rendering
the school building unfit for school use, provided that for those
school districts operating pursuant to section 3313.48 of the
Revised Code the number of days the school was actually open for
instruction with pupils in attendance and for individualized
parent-teacher conference and reporting periods is not less than
one hundred seventy-five, or for those school districts operating
on a trimester plan the number of days the school was actually
open for instruction with pupils in attendance not less than
seventy-nine days in any trimester, for those school districts
operating on a quarterly plan the number of days the school was
actually open for instruction with pupils in attendance not less
than fifty-nine days in any quarter, or for those school
districts operating on a pentamester plan the number of days the
school was actually open for instruction with pupils in
attendance not less than forty-four days in any pentamester. A school district shall not be considered to have failed to
comply with this division or section 3313.481 of the Revised Code
because schools were open for instruction but either twelfth
grade students were excused from attendance for up to three days
or only a portion of the kindergarten students were in attendance
for up to three days in order to allow for the gradual
orientation to school of such students. The superintendent of public instruction shall waive the
requirements of this section with reference to the minimum number
of days or hours school must be in session with pupils in
attendance for the school year succeeding the school year in
which a board of education initiates a plan of operation pursuant
to section 3313.481 of the Revised Code. The minimum
requirements of this section shall again be applicable to such a
district beginning with the school year commencing the second
July succeeding the initiation of one such plan, and for each
school year thereafter. A school district shall not be considered to have failed to comply with
this division or section 3313.48 or 3313.481 of the Revised Code because
schools were open for instruction but the length of the regularly scheduled
school day, for any number of days during the school year, was reduced by not
more than two hours due to hazardous weather conditions. (C) The school district has on file, and is paying in
accordance with, a teachers' salary schedule
which complies with section 3317.13 of the Revised Code. A board of education or governing board of an educational service center which
has not conformed with other law
and the rules pursuant thereto, shall not participate in the
distribution of funds authorized by sections 3317.022 to
3317.0211, 3317.11, 3317.16, 3317.17, and 3317.19 of the Revised
Code, except for good and sufficient reason established to the
satisfaction of the state board of education and the state
controlling board. All funds allocated to school districts under this chapter,
except those specifically allocated for other purposes, shall be
used to pay current operating expenses only. Sec. 3317.021. (A) On or before the first day of June of
each year, the tax commissioner shall certify to the department
of education the following information for each city, exempted
village, and local school district and the information required
by divisions (A)(1) and (2) of this section for each joint
vocational school district, and it shall be used, along with the
information certified under division (B) of this section, in
making the computations for the district under section 3317.022
or 3317.16 of the Revised Code: (1) The taxable value of real and public utility real
property in the school district subject to taxation in the
preceding tax year, by class and by county of location; (2) The taxable value of tangible personal property,
including public utility personal property, subject to taxation
by the district for the preceding tax year; (3)(a) The total property tax rate and total taxes charged
and payable for the current expenses for the preceding tax year
and the total property tax rate and the total taxes charged and
payable to a joint vocational district for the preceding tax year
that are limited to or to the extent apportioned to current
expenses; (b) The portion of the amount of taxes charged and payable
reported for each city, local, and exempted village school district under
division (A)(3)(a) of this section attributable to a
joint vocational school district. (4) The value of all real and public utility real property
in the school district exempted from taxation minus both of the
following: (a) The value of real and public utility real property in
the district owned by the United States government and used
exclusively for a public purpose; (b) The value of real and public utility real property in
the district exempted from taxation under Chapter 725. or 1728. or section
3735.67, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73, or 5709.78 of
the Revised Code. (5) The total effective operating tax rate for the
district in the tax year for which the most recent data are available. (B) On or before the first day of May each year, the tax
commissioner shall certify to the department of education the
total taxable real property value of railroads and, separately,
the total taxable tangible personal property value of all public
utilities for the preceding tax year, by school district and by
county of location. (C) If a public utility has properly and timely filed a petition for
reassessment under section 5727.47 of the Revised Code with respect to an assessment issued
under section 5727.23 of the Revised Code affecting taxable property apportioned by the tax
commissioner to a school district, the taxable value of public utility
tangible personal property
included in the certification under divisions (a)(2) and (b)
of
this section for the school district shall include only the amount of taxable
value on the basis of
which the public utility paid tax for the preceding year as provided in
division (B)(1) or (2)
of section 5727.47 of the Revised Code. (D) If on the basis of the information certified under
division (A) of this section, the department determines that any
district fails in any year to meet the qualification requirement
specified in division (A) of section 3317.01 of the Revised Code,
the department shall immediately request the tax commissioner to
determine the extent to which any school district income tax
levied by the district under Chapter 5748. of the Revised Code
shall be included in meeting that requirement. Within five days
of receiving such a request from the department, the tax
commissioner shall make the determination required by this
division and report the quotient obtained under division
(C)(D)(3)
of this section to the department. This quotient represents the
number of mills that the department shall include in determining
whether the district meets the qualification requirement of
division (A) of section 3317.01 of the Revised Code. The tax commissioner shall make the determination required
by this division as follows: (1) Multiply one mill times the total taxable value of the
district as determined in divisions (A)(1) and (2) of this
section; (2) Estimate the total amount of tax liability for the
current tax year under taxes levied by Chapter 5748. of the
Revised Code that are apportioned to current operating expenses
of the district; (3) Divide the amount estimated under division (C)(D)(2) of
this section by the product obtained under division (C)(D)(1)
of
this section. (D)(E) As used in this section:
(1) "Class I taxes charged and payable for
current expenses" means taxes charged and payable for current expenses on land
and improvements classified as residential/agricultural real
property under section 5713.041 of the
Revised Code. (2) "Class I taxable value" means the
taxable value of land and improvements classified as
residential/agricultural real property under section 5713.041 of
the Revised Code. (3) "Class I effective operating tax rate"
of a school district means the quotient obtained by dividing the
school district's Class I taxes charged and payable for
current expenses by the district's Class I taxable value. (4) "Income tax equivalent tax rate" of a school district means the
quotient obtained by dividing the
income tax revenue
disbursed during the current fiscal year under
any tax levied pursuant to Chapter 5748. of the
Revised Code by total taxable
value of the district to the extent the revenue from the tax is allocated or
apportioned to current expenses. (5) "Total effective
operating tax rate" means the sum of the
Class I effective operating tax rate
and the income tax equivalent tax rate. Sec. 3317.025. On or before the first day of June of each
year, the tax commissioner shall certify the following
information to the department of education, for each school
district in which the value of the property described under
division (A) of this section exceeds one per cent of the taxable
value of all real and tangible personal property in the district
or in which is located tangible personal property designed for
use or used in strip mining operations, whose taxable value
exceeds five million dollars, and the taxes upon which the
district is precluded from collecting by virtue of legal
proceedings to determine the value of such property: (A) The total taxable value of all property in the
district owned by a public utility or railroad that has filed a
petition for reorganization under the "Bankruptcy Act," 47 Stat.
1474 (1898), 11 U.S.C. 205, as amended, and all tangible personal
property in the district designed for use or used in strip mining
operations whose taxable value exceeds five million dollars upon
which have not been paid in full on or before the first day of
April of that calendar year all real and tangible personal
property taxes levied for the preceding calendar year and which
the district was precluded from collecting by virtue of
proceedings under section 205 of said act or by virtue of legal
proceedings to determine the tax liability of such strip mining
equipment; (B) The percentage of the total operating taxes charged
and payable for school district purposes levied against such
valuation for the preceding calendar year which have not been
paid by such date; (C) The product obtained by multiplying the value
certified under division (A) of this section by the percentage
certified under
division (B) of this section. If the value certified under
division (A) of this section includes taxable property owned by a
public utility or railroad that has filed a petition for
reorganization under the bankruptcy act, the amount used in
making the calculation under this division shall be reduced by
one per cent of the total value of all real and tangible personal
property in the district or the value of the utility's
or railroad's property, whichever is less. Upon receipt of the certification, the department shall
recompute the payments required under section 3317.022
of the Revised Code in the manner the payments would
have been computed if: (1) The amount certified under division (C) of this
section was not subject to taxation by the district and was not
included in the certification made under division (A)(1), (A)(2), or
(C)(D) of section 3317.021 of the Revised Code. (2) The amount of taxes charged and payable and unpaid and
used to make the computation under division (B) of this section
had not been levied and had not been used in the computation
required by division (B) of section 3317.021 of the Revised Code.
The department shall pay the district that amount in the ensuing
fiscal year in lieu of the amounts computed under
section
3317.022 of the Revised Code. Sec. 5709.61. As used in sections 5709.61 to 5709.69 of
the Revised Code: (A) "Enterprise zone" or "zone" means any of the
following: (1) An area with a single continuous boundary designated
in the manner set forth in section 5709.62 or 5709.63 of the
Revised Code and certified by the director of development as
having a population of at least four thousand according to the
best and most recent data available to the director and having at
least two of the following characteristics: (a) It is located in a municipal corporation defined by
the United States office of management and budget as a central
city of a metropolitan statistical area; (b) It is located in a county designated as being in the
"Appalachian region" under the "Appalachian Regional Development
Act of 1965," 79 Stat. 5, 40 App. U.S.C.A. 403, as amended; (c) Its average rate of unemployment, during the most
recent twelve-month period for which data are available, is equal
to at least one hundred twenty-five per cent of the average rate
of unemployment for the state of Ohio for the same period; (d) There is a prevalence of commercial or industrial
structures in the area that are vacant or demolished, or are
vacant and the taxes charged thereon are delinquent, and
certification of the area as an enterprise zone would likely
result in the reduction of the rate of vacant or demolished
structures or the rate of tax delinquency in the area; (e) The population of all census tracts in the area,
according to the federal census of 1990, decreased by at least
ten per cent between the years 1970 and 1990; (f) At least fifty-one per cent of the residents of the
area have incomes of less than eighty per cent of the median
income of residents of the municipal corporation or municipal
corporations in which the area is located, as determined in the
same manner specified under section 119(b) of the "Housing and
Community Development Act of 1974," 88 Stat. 633, 42 U.S.C. 5318,
as amended; (g) The area contains structures previously used for
industrial purposes but currently not so used due to age,
obsolescence, deterioration, relocation of the former occupant's
operations, or cessation of operations resulting from unfavorable
economic conditions either generally or in a specific economic
sector; (h) It is located within one or more adjacent city,
local, or exempted village school districts, the income-weighted
tax capacity of each of which is less than seventy per cent of
the average of the income-weighted tax capacity of all city,
local, or exempted village school districts in the state
according to the most recent data available to the director from
the department of taxation. The director of development shall adopt rules in accordance
with Chapter 119. of the Revised Code establishing conditions
constituting the characteristics described in divisions
(A)(1)(d), (g), and (h) of this section. If an area could not be certified as an enterprise zone
unless it satisfied division (A)(1)(g) of this section, the
legislative authority may enter into agreements in that zone
under section 5709.62, 5709.63, or 5709.632 of the Revised Code
only if such agreements result in the development of the
facilities described in that division, the parcel of land on
which such facilities are situated, or adjacent parcels. The
director of development annually shall review all agreements in
such zones to determine whether the agreements have resulted in
such development; if the director determines that the agreements
have not resulted in such development, the director immediately
shall revoke certification of the zone and notify the legislative
authority of such revocation. Any agreements entered into prior
to revocation under this paragraph shall continue in effect for
the period provided in the agreement. (2) An area with a single continuous boundary designated
in the manner set forth in section 5709.63 of the Revised Code
and certified by the director of development as: (a) Being located within a county that contains a
population of three hundred thousand or less; (b) Having a population of at least one thousand according
to the best and most recent data available to the director; (c) Having at least two of the characteristics described
in divisions (A)(1)(b) to (h) of this section. (3) An area with a single continuous boundary designated
in the manner set forth under division (A)(1) of section 5709.632
of the Revised Code and certified by the director of development
as having a population of at least four thousand, or under
division (A)(2) of that section and certified as having a
population of at least one thousand, according to the best and
most recent data available to the director. (B) "Enterprise" means any form of business organization
including, but not limited to, any partnership, sole
proprietorship, or corporation, including an S corporation as
defined in section 1361 of the Internal Revenue Code and any
corporation that is majority work-owned either directly through
the ownership of stock or indirectly through participation in an
employee stock ownership plan. (C) "Facility" means an enterprise's place of business in
a zone, including land, buildings, machinery, equipment, and
other materials, except inventory, used in business. "Facility"
includes land, buildings, machinery, production and station equipment,
other equipment, and other
materials, except inventory, used in business to generate electricity
that is designed and intended to operate during peak load periods and to
generate electricity during no more than four thousand three hundred fifty
hours in a calendar year, provided that, for purposes of sections
5709.61 to 5709.69 of the Revised Code, the value of the
property
at such a facility shall be reduced by the value, if any, that is
not apportioned under section 5727.15 of the Revised Code to
the taxing district in which the facility is
physically located. In the case of such a facility that is
physically located in two adjacent taxing districts, the property located in
each
taxing district constitutes a separate facility. "Facility" does not include any portion of an enterprise's place
of business
used primarily for making retail sales unless the place of
business is located in an impacted city as defined in section
1728.01 of the Revised Code. (D) "Vacant facility" means a facility that has been
vacant for at least ninety days immediately preceding the date on
which an agreement is entered into under section 5709.62 or 5709.63 of
the Revised Code. (E) "Expand" means to make expenditures to add land,
buildings, machinery, equipment, or other materials, except
inventory, to a facility that equal at least ten per cent of the
market value of the facility prior to such expenditures, as
determined for the purposes of local property taxation. (F) "Renovate" means to make expenditures to alter or
repair a facility that equal at least fifty per cent of the
market value of the facility prior to such expenditures, as
determined for the purposes of local property taxation. (G) "Occupy" means to make expenditures to alter or repair
a vacant facility equal to at least twenty per cent of the market
value of the facility prior to such expenditures, as determined
for the purposes of local property taxation. (H) "Project site" means all or any part of a facility
that is newly constructed, expanded, renovated, or occupied by an
enterprise. (I) "Project" means any undertaking by an enterprise to
establish a facility or to improve a project site by expansion,
renovation, or occupancy. (J) "Position" means the position of one full-time
employee performing a particular set of tasks and duties. (K) "Full-time employee" means an individual who is
employed for consideration by an enterprise for at least
thirty-five hours a week, or who renders any other standard of
service generally accepted by custom or specified by contract as
full-time employment. (L) "New employee" means a full-time employee first
employed by an enterprise at a facility that is a project site
after the enterprise enters an agreement under section 5709.62 or
5709.63 of the Revised Code. "New employee" does not include an
employee if, immediately prior to being employed by the
enterprise, the employee was employed by an enterprise that is a
related member or predecessor enterprise of that enterprise. (M) "Unemployed person" means any person who is totally
unemployed in this state, as that term is defined in division (M)
of section 4141.01 of the Revised Code, for at least ten
consecutive weeks immediately preceding that person's
employment at a
facility that is a project site, or who is so unemployed for at
least twenty-six of the fifty-two weeks immediately preceding
that person's
employment at such a facility. (N) "JTPA eligible employee" means any individual who is
eligible for employment or training under the "Job Training
Partnership Act," 96 Stat. 1324 (1982), 29 U.S.C. 1501, as amended. (O) "First used in business" means that the property
referred to has not been used in business in this state by the
enterprise that owns it, or by an enterprise that is a related
member or predecessor enterprise of such an enterprise, other
than as inventory, prior to being used in business at a facility
as the result of a project. (P) "Training program" means any noncredit training
program or course of study that is offered by any state college
or university; university branch district; community college;
technical college; nonprofit college or university certified
under section 1713.02 of the Revised Code; school district; joint
vocational school district; school registered and authorized to
offer programs under section 3332.05 of the Revised Code; an
entity administering any federal, state, or local adult education
and training program; or any enterprise; and that meets all of
the following requirements: (1) It is approved by the director of development; (2) It is established or operated to satisfy the need of a
particular industry or enterprise for skilled or semi-skilled
employees; (3) An individual is required to complete the course or
program before filling a position at a project site. (Q) "Development" means to engage in the process of
clearing and grading land, making, installing, or constructing
water distribution systems, sewers, sewage collection systems,
steam, gas, and electric lines, roads, curbs, gutters, sidewalks,
storm drainage facilities, and construction of other facilities
or buildings equal to at least fifty per cent of the market value
of the facility prior to the expenditures, as determined for the
purposes of local property taxation. (R) "Large manufacturing facility" means a single Ohio
facility that employed an average of at least one thousand
individuals during the five calendar years preceding an
agreement authorized under division (C)(3) of section 5709.62 or
division (B)(2) of section 5709.63 of the Revised Code. For purposes of this
division, both of the following apply: (1) A single Ohio
manufacturing facility employed an average of at least one
thousand individuals during the five calendar years preceding
entering into such an agreement if one-fifth of the sum of the
number of employees employed on the highest employment day
during each of the five calendar years equals or exceeds one
thousand. (2) The highest employment day is the day or days during
a calendar year on which the number of employees employed at a
single Ohio manufacturing facility was
greater than on any other day during the calendar year. (S) "Business cycle" means the cycle of business activity
usually regarded as passing through alternating stages of
prosperity and depression. (T) "Making retail sales" means the effecting of
transactions wherein one party is obligated to pay the price and
the other party is obligated to provide a service or to transfer
title to or possession of the item sold. (U) "Environmentally contaminated" means that hazardous
substances exist at a facility under conditions that have caused
or would cause the facility to be identified as contaminated by
the state or federal environmental protection agency. These may
include facilities located at sites identified in the master
sites list or similar database maintained by the state
environmental protection agency if the sites have been
investigated by the agency and found to be contaminated. (V) "Remediate" means to make expenditures to clean up an
environmentally contaminated facility so that it is no longer
environmentally contaminated that equal at least ten per cent of
the real property market value of the facility prior to such
expenditures as determined for the purposes of property taxation. (W) "Related member" has the same meaning as defined in
section 5733.042 of the Revised Code without regard to division
(B) of that section, except that it is used with respect to an
enterprise rather than a taxpayer. (X) "Predecessor enterprise" means an enterprise from
which the assets or equity of another enterprise has been
transferred, which transfer resulted in the full or partial
nonrecognition of gain or loss, or resulted in a carryover basis,
both as determined by rule adopted by the tax commissioner. (Y) "Successor enterprise" means an enterprise to which
the assets or equity of another enterprise has been transferred,
which transfer resulted in the full or partial nonrecognition of
gain or loss, or resulted in a carryover basis, both as
determined by rule adopted by the tax commissioner. Sec. 5727.08. On or before the first day of March,
annually, each public utility shall file a report with the tax
commissioner, on a form prescribed by him the tax commissioner.
The report shall include such information as the tax
commissioner requires
to enable
him the tax commissioner to make any assessment or apportionment
required under this
chapter. Such The report shall be signed by either the owner of the
public utility or the president, secretary, treasurer, or another
duly authorized person.
If a public utility fails to file the report on or before
the first day of March, or the date it is due under an extension
allowed pursuant to section 5727.48 of the Revised Code, or fails
to accurately report all taxable property, the
tax commissioner shall may impose a penalty of up to
fifty per cent of the taxable
value of
the property that was not timely or accurately
reported. However, if such the public utility
files, within sixty days after
the first day of March or the extended due date, the report or an
amended report and discloses all items of taxable property that
are required by this chapter to be reported,
the penalty shall be
up to not be more than five per cent of the taxable value that was
not
timely or
accurately reported. The penalty shall
be added to and
considered a part of the total taxable value of the property that
was not timely or accurately reported, and may be
abated in whole
or in part by the tax commissioner pursuant to a petition for
reassessment filed under section 5727.47 of the Revised Code. Sec. 5727.47. (A) A copy of each assessment certified pursuant
to section 5727.23 or 5727.38 of the Revised Code
shall be mailed to the public utility, and its mailing shall be
prima-facie evidence of its receipt by the public utility to
which it is addressed. If a public utility objects to any
assessment certified to it pursuant to such sections, it may file
a petition for reassessment with the tax commissioner. The
petition must be made in writing, signed by the authorized agent
of the utility having knowledge of the facts, and filed with the
tax commissioner, in person or by certified mail, within thirty
days
from the date that the assessment was mailed. If the petition is
filed by certified mail, the date of the United States postmark
placed on the sender's receipt by the postal employee to whom the
petition is presented shall be treated as the date of filing. A
true copy of the assessment objected to shall be attached to the
petition and shall be incorporated by reference into the
petition, but the failure to attach a copy of the assessment and
incorporate it by reference does not invalidate the petition.
The petition also shall indicate the utility's objections, but
additional objections may be raised in writing if received prior
to the date shown on the final determination by the commissioner. Notwithstanding the fact that a petition has been filed,
In the case of a petition seeking a reduction in taxable value filed with
respect to an assessment issued under section 5727.23 of the Revised Code, the petitioner
shall state in the
petition the total amount of reduction in taxable value sought by
the petitioner. If the petitioner objects to the
percentage of true value at which taxable property is assessed
by the tax commissioner, the petitioner shall state in the petition the total
amount of reduction in taxable
value sought both with and
without regard to the objection pertaining to the percentage of
true value at which its taxable property is assessed.
If a petitioner objects
to the tax commissioner's apportionment of the taxable value of
the petitioner's taxable property, the petitioner shall distinctly state in
the petition that the petitioner objects
to the tax commissioner's apportionment, and, within forty-five days
after filing the petition for reassessment, shall submit the
petitioner's proposed apportionment of the taxable value of its
taxable property among taxing districts. If a petitioner that objects to the
tax commissioner's apportionment fails to
state its objections to that apportionment in
its petition for reassessment or fails to submit its proposed
apportionment within forty-five days after filing the petition for
reassessment, the tax commissioner shall dismiss the petitioner's
objection to the tax commissioner's apportionment, and the taxable
value of the petitioner's taxable property, subject to any
adjustment to taxable value pursuant to the petition or appeal, shall be
apportioned in the manner used by the tax commissioner in the preliminary or
amended preliminary assessment issued under
section 5727.23 of the Revised Code.
If an additional objection seeking a reduction in taxable value in
excess of the reduction stated in the original petition is properly and timely
raised with respect to an assessment issued under section 5727.23 of the Revised Code, the
petitioner shall state the total amount of the
reduction in taxable value sought in the additional
objection both with and without regard to any reduction in taxable value
pertaining
to the percentage of true value at which taxable property is
assessed. If a petitioner fails to state the reduction in taxable
value sought in the original petition or in additional
objections properly raised after the petition is filed, the tax
commissioner shall notify the petitioner of the failure by
certified mail. If the petitioner fails to notify the tax
commissioner in writing of the reduction in taxable value sought
in the petition or in an additional objection within thirty days after
receiving the tax commissioner's notice, the tax
commissioner shall dismiss the petition or the additional objection in which
that reduction is sought. (B)(1) Subject to divisions (B)(2) and (3) of this
section, a public utility filing a petition
for reassessment regarding an assessment issued under section 5727.23 or
5727.38 of the Revised Code shall pay
the tax with respect to the assessment objected to shall be paid
as required by law. The acceptance of the any tax payment by
the
treasurer of state or any county treasurer shall not prejudice
any claim for taxes on final determination by the tax commissioner or
final decision by the board of tax appeals or any court. (2) If a public utility properly and timely files a petition for
reassessment regarding an assessment issued under section 5727.23 of the Revised Code, the
petitioner shall pay the tax as prescribed
by divisions (B)(2)(a), (b), and
(c) of this section: (a) If the petitioner does not object to the tax
commissioner's
apportionment of the taxable value of the petitioner's taxable property, the
petitioner
is not required to pay the part of the tax otherwise due on the taxable value
that the petitioner seeks to have reduced,
subject to division (B)(2)(c) of this section. (b) If the petitioner objects to the tax commissioner's
apportionment of the taxable value of the petitioner's taxable property, the
petitioner is not required to pay the
tax otherwise due on the part of the taxable value apportioned to
any taxing district that the petitioner objects to, subject to
division (B)(2)(c) of this section. If,
pursuant to division (A) of this section, the petitioner has,
in a proper and timely manner, apportioned taxable value to a taxing
district to which the tax commissioner did not apportion the
petitioner's taxable value, the petitioner shall pay the tax due on the
taxable value that the petitioner has apportioned to the taxing
district, subject to division (B)(2)(c) of this
section. (c) If a petitioner objects to the percentage of true value at
which taxable property is assessed by the tax commissioner, the
petitioner shall pay the tax due on the
basis of the percentage of true value at which the public utility's
taxable property is assessed by the tax commissioner. In
any case, the petitioner's payment of tax shall not be less
than the amount of tax due based on the taxable value reflected on the
last appeal notice issued by the tax commissioner under division
(C) of this section. Until
the county auditor receives notification under division (E) of
this section and proceeds under section 5727.471 of the Revised Code to issue any refund that
is found to be due, the county auditor shall not issue a refund for
any increase in the reduction in taxable value that is sought by a petitioner
later than forty-five days after the petitioner files
the original petition as required under division (A) of this
section. (3) Any part of the tax that, under division
(B)(2)(a) or (b) of
this section, is not paid shall be collected
upon
receipt of the notification as provided in section 5727.471 of the Revised Code
with interest thereon computed in the same manner as interest is computed
under division (E) of section 5715.19 of the Revised Code,
subject to
any correction of the assessment
by the tax commissioner under division (E) of this section or the
final judgment of the board
of tax appeals or a court to which the board's
final judgment is appealed. The
penalty imposed under section 323.121 of the Revised Code
shall apply only to the unpaid portion of the tax if the petitioner's tax
payment is less than the amount of tax due based on the taxable value
reflected on the
last appeal notice issued by the tax commissioner under division
(C) of this section. (C) Upon receipt of a properly filed petition for
reassessment, the tax commissioner
shall notify the treasurer of state or the auditor of each county
to which the assessment objected to has been certified.
In the case of a petition with respect to an assessment issued
under section 5727.23 of the Revised Code, the
tax commissioner shall issue an appeal notice within thirty days
after receiving the amount of the taxable value reduction and
apportionment changes sought by the petitioner in the original
petition or in any additional objections properly and timely
raised by the petitioner. The appeal
notice shall
indicate the amount of the reduction in taxable value sought in the petition
or in the additional objections and the extent to which the reduction in
taxable value
and any change in apportionment requested by the petitioner
would affect the tax
commissioner's apportionment of the taxable value among taxing
districts in the county as shown in the assessment.
If a petitioner is seeking a reduction in taxable value on the
basis of a lower percentage of true value than the percentage at which
the tax commissioner assessed the petitioner's taxable property, the
appeal notice shall indicate the reduction in taxable value sought
by the petitioner without regard to the reduction sought on the
basis of the lower percentage and shall indicate that the
petitioner is required to pay tax on the reduced taxable value
determined without regard to the reduction sought on the basis of
a lower percentage of true value, as provided under division
(B)(2)(c)
of this section. The appeal notice
shall include a statement that the reduced taxable value and the
apportionment indicated in the notice are not final and are
subject to adjustment by the tax commissioner or by the board of
tax appeals or a court on appeal.
If the tax commissioner finds an error in the appeal notice, the
tax commissioner may amend the notice, but the notice is only for
informational and tax payment purposes; the notice is not subject
to appeal by any person. The tax commissioner also shall mail a
copy of the appeal notice to the petitioner. Upon the request of a taxing
authority, the
county auditor may disclose to the taxing authority the extent to
which a reduction in taxable value sought by a petitioner would
affect the apportionment of taxable value to the taxing district or districts
under the taxing authority's jurisdiction,
but such a disclosure does not constitute a notice required by law
to be given for the purpose of section 5717.02 of the Revised Code. (D) Unless the petitioner waives a hearing, the commissioner
shall assign a time and place for the hearing on the petition and
notify the petitioner of the time and place of the hearing by
personal service or certified mail, but the commissioner may
continue the hearing from time to time if necessary. (E) The tax commissioner may make such correction to the
assessment
as the tax commissioner finds proper. The tax commissioner
shall
serve a copy of the commissioner's
final determination on the petitioner by personal service or
certified mail, and the tax commissioner's decision in the
matter shall be final,
subject to appeal as provided in section 5717.02 of the Revised
Code. The tax commissioner also shall transmit a copy of the
final
determination to the treasurer of state or applicable county
auditor. In the absence of any further appeal, or when a
decision of the board of tax appeals or of any court to which the
decision has been appealed becomes final, the tax commissioner shall
notify the public utility and, as appropriate, the treasurer of
state who shall proceed under section 5727.42 of the Revised
Code, or the applicable county auditor who shall proceed under
section 5727.471 of the Revised Code. The
in any notification
regarding an assessment issued under section 5727.23 of the Revised Code, the tax
commissioner shall include a notice of the amount of
any state basic aid overpayment, as defined in section 5727.471 of the Revised Code, to a
school district affected by the
notification. upon the tax commissioner's request, the department of
education shall certify to the tax commissioner the
amount of any state basic aid overpayment to a school district. The notification made under this division is not
subject to further appeal. (F) On appeal, no adjustment shall be made in the tax
commissioner's assessment issued under section 5727.23 of the Revised Code that reduces the
taxable value of a petitioner's taxable property by an amount that exceeds the
reduction sought by
the petitioner in its petition for reassessment or in any
additional objections properly and timely raised after the
petition is filed with the tax commissioner. Sec. 5727.471. (A) As used in this section,
"notification: (1) "Notification" means notification required by section 5727.47 of
the Revised Code to be sent by the tax commissioner to the county
auditor as to the disposition of a petition for reassessment, or
of a decision of the board of tax appeals or any court with
respect to an assessment of public utility property taxes. (2) "State basic aid overpayment" for a school district means the
amount by which the payment computed for a fiscal year under section
3317.022 of the Revised Code exceeds the amount that would
have been computed for that fiscal year if the taxable value certified
under division (A)(2) and (B) of section 3317.021 of the Revised Code for
the tax year preceding that fiscal year had been the taxable
value shown in the notification for that tax year. (B) On receipt of the notification, the auditor shall
determine whether there has been an underpayment or overpayment
of taxes by the public utility. In the case of an underpayment
of taxes, the auditor shall notify the county treasurer of the
amount, and the treasurer shall proceed to collect the
underpayment as required by law. In
From the proceeds of the underpayment so collected that are
otherwise payable to a city, local, or exempted village school district,
the county treasurer shall deduct and withhold an amount equal to the
state basic aid overpayment, if any, to the school district, plus
interest on that amount at the rate prescribed by section 5703.47
of the Revised Code from the last day of the fiscal year for which
the state basic aid payment was made to the day the underpayment is collected.
The county treasurer shall pay the amount deducted and withheld to the
treasurer of state, who shall credit the payment to the general
revenue fund. If the state basic aid overpayment and interest
exceeds the amount of the tax underpayment collected that is
otherwise payable to the school district, the county treasurer
shall collect the difference from the school district or deduct
and withhold the difference from the next distribution or advance
payment of property taxes to the district, and shall pay that
difference to the treasurer of state, who shall credit the payment
to the general revenue fund. In the case of an overpayment
of taxes, the auditor shall do any one of the following: (1) Refund the full amount of the overpayment; (2) Refund a portion of the overpayment and prorate the
remaining balance as a credit against future taxes that may be
charged to the public utility; (3) Prorate the full amount of the overpayment as a credit
against future taxes that may be charged to the public utility. (C)(1) The auditor shall have discretion as to which
method to use and shall advise the public utility of his the
auditor's decision
within sixty days after receipt of the notification. The auditor
shall make payment of any refund under division (B)(1) or (2) of
this section within ninety days after receipt of the
notification. Except as otherwise provided in division (C)(2) of
this section, any amount to be credited under division (B)(2) or
(3) of this section shall be applied to all or a part of the
taxes otherwise due from the public utility on real and public
utility property tax installment due dates after the date on
which the notification was received, but shall not be spread over
more than the next ten ensuing installment due dates. If any
portion of the overpayment has not been refunded or credited by
the tenth such tax installment due date after the date on which
the notification was received, the auditor immediately shall
refund that portion. (2) The tax commissioner may certify to a county auditor,
in writing, that a public utility is no longer required to file a
report under section 5727.08 of the Revised Code. Within ninety
days of the date of such certification, the auditor shall refund
to the utility, with applicable interest, the portion of any
overpayment that has not been refunded or credited to the utility
under this section. (D) The auditor shall add interest to the amount of any
overpayment of taxes at the rate per calendar month, rounded to
the nearest one-hundredth of one per cent, equal to one-twelfth
of the rate per annum prescribed by section 5703.47 of the
Revised Code. The interest shall begin to accrue from the first
day of the month following the date of the overpayment until the
last day of the month preceding the date the overpayment or
portion of the overpayment is refunded or credited, and shall be
computed separately on each amount actually refunded or credited.
In computing interest on credits, when an overpayment is credited
against an installment of current taxes due from the utility
pursuant to this section, the overpayment shall be considered to
have been credited on the last date on which those taxes may be
paid without penalty. (E) The refund and crediting of any overpayment, including
interest, shall be paid from or credited against the fund or
funds and the taxing districts to which the overpayment
originally was paid, in proportion to the amount of the
overpayment received. The auditor shall correct his the
auditor's tax lists in
accordance with the refund or credit, and shall certify
corrections in the tax duplicates to the county treasurer. At
each settlement affected by a refund or credit under this
section, the amount of the refund or credit shall be deducted
from the amount of any taxes or assessments distributable to the
county or any taxing unit in the county that has received the
benefit of the taxes or assessment previously overpaid, in
proportion to the overpayment previously received. SECTION 2 . That existing sections 3317.01, 3317.021, 3317.025, 5709.61,
5727.08, 5727.47, and 5727.471 of the Revised Code are
hereby repealed.
SECTION 3 . The amendment by this act of sections 5727.08 and 5727.47 of the
Revised Code applies to tax years 2001 and thereafter.
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