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As Reported by the Senate Ways and Means Committee
123rd General Assembly
Regular Session
1999-2000 | Sub. S. B. No. 287 |
SENATOR BLESSING
A BILL
To amend sections 3709.28, 4933.33, 5703.052, 5727.11,
5727.111, 5727.33, and 5727.80 to 5727.95, to enact section
5727.811 of the Revised Code, and to amend Sections 3 and 4 of Am.
Sub. S.B. 3 of the 123rd General Assembly and Section 174 of H.B. 283 of the
123rd General Assembly
to reduce the assessment rate
on tangible personal property owned by natural gas companies,
to levy an excise tax on the distribution of natural gas, and to modify the
determination of the true value of current gas stored underground.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3709.28, 4933.33, 5703.052,
5727.11, 5727.111, 5727.33, 5727.80, 5727.81, 5727.82, 5727.83,
5727.84, 5727.85, 5727.86, 5727.87, 5727.88, 5727.89, 5727.90,
5727.91, 5727.92, 5727.93, 5727.94, and 5727.95 be amended and
section 5727.811 of the Revised Code be enacted to read as
follows:
Sec. 3709.28. The board of health of a general health
district shall, annually, on or before the first Monday of April,
adopt an itemized appropriation measure. Such appropriation
measure shall set forth the amounts for the current expenses of
such district for the fiscal year beginning on the first day of
January next ensuing. The appropriation measure, together with
an estimate in itemized form, of the several sources of revenue
available to the district, including the amount due from the
state for the next fiscal year as provided in section 3709.32 of
the Revised Code and the amount which the board anticipates will
be collected in fees during the next ensuing fiscal year, shall
be certified to the county auditor and by him THE COUNTY AUDITOR
submitted to the county budget commission which may reduce any item in such
appropriation measure but may not increase any item or the
aggregate of all items.
The aggregate appropriation, as fixed by the commission,
less the amounts available to the general health district from
the several sources of revenue, including the estimated balance
from the previous appropriation, shall be apportioned, by the
auditor among the townships and municipal corporations composing
the health district on the basis of taxable valuations in such
townships and municipal corporations. The auditor, when making
his THE AUDITOR'S semiannual apportionment of funds, shall
retain at each
semiannual apportionment one-half of the amount apportioned to
each township and municipal corporation. Such moneys and all
other sources of revenue shall be placed in a separate fund, to
be known as the "district health fund." When a general health
district is composed of townships and municipal corporations in
two or more counties, the auditor making the original
apportionment shall certify to the auditor of each county
concerned the amount apportioned to each township and municipal
corporation in such county. Each auditor shall withhold from the
semiannual apportionment to each such township or municipal
corporation the amount certified, and shall pay the amounts
withheld to the custodian of the funds of the health district
concerned, to be credited to the district health fund. IN MAKING THE
APPORTIONMENT UNDER THIS PARAGRAPH FOR EACH YEAR FROM 2002 THROUGH 2016, THE
COUNTY AUDITOR SHALL ADD TO THE TAXABLE VALUATION OF EACH TOWNSHIP AND
MUNICIPAL CORPORATION THE TAX VALUE LOSS DETERMINED FOR EACH TOWNSHIP AND
MUNICIPAL CORPORATION UNDER DIVISIONS (D) AND (E) OF
SECTION 5727.84 OF THE REVISED CODE MULTIPLIED BY THE
PERCENTAGE USED FOR THAT YEAR IN DETERMINING REPLACEMENT PAYMENTS UNDER
DIVISION (A)(1) OF SECTION 5727.86 OF THE REVISED
CODE. THE TAX COMMISSIONER SHALL CERTIFY TO THE COUNTY AUDITOR THE
TAX VALUE LOSS FOR EACH TOWNSHIP AND MUNICIPAL CORPORATION FOR WHICH THE
AUDITOR MUST MAKE AN APPORTIONMENT.
Subject to the aggregate amount as has been apportioned
among the townships and municipalities and as may become
available from the several sources of revenue, the board of
health may, by resolution, transfer funds from one item in their
appropriation to another item, reduce or increase any item,
create new items, and make additional appropriations or reduce
the total appropriation. Any such action shall forthwith be
certified by the secretary of the board of health to the auditor
for submission to and approval by the budget commission.
When any general health district has been united with or
has contracted with a city health district located therein, the
chief executive of the city shall, annually, on or before the
first day of June, certify to the county auditor the total amount
due for the ensuing fiscal year from the municipal corporations
and townships in the district as provided in the contract between
such city and the district advisory council of the original
general health district. After approval by the county budget
commission, the county auditor shall thereupon apportion the
amount certified to the townships and municipal corporations, and
shall withhold the sums apportioned as provided in this section.
Sec. 4933.33. (A) Annually, each electric distribution
company, as defined in section 5727.80 of the Revised Code,
shall
cause to appear STATE on each customer bill, or shall distribute
to
each of its customers, the following statement:
"Under state law, the amount you are being billed includes:
(1) Kilowatt-hour taxes that have been in effect
since 2001 and are currently at $.........
(The current dollar figure of the
kilowatt-hour taxes levied by section 5727.81 of the
Revised Code
shall be placed in the blank); and
(2) Assessments to assist in the support of the operations
of the PUCO and the office of the consumers' counsel that have
been in effect since 1912 and 1977, respectively."
(B) ANNUALLY, EACH NATURAL GAS DISTRIBUTION COMPANY, AS DEFINED
IN SECTION 5727.80 OF THE REVISED CODE, SHALL STATE ON EACH
CUSTOMER BILL, OR SHALL DISTRIBUTE TO EACH OF ITS CUSTOMERS, THE
FOLLOWING STATEMENT:
"UNDER STATE LAW, THE AMOUNT YOU ARE BEING BILLED INCLUDES:
(1) NATURAL GAS DISTRIBUTION TAXES THAT HAVE BEEN IN EFFECT SINCE
2001 AND ARE CURRENTLY AT $ ......... (THE CURRENT DOLLAR FIGURE OF THE
NATURAL GAS DISTRIBUTION EXCISE TAXES LEVIED BY SECTION 5727.811 OF THE
REVISED CODE SHALL BE PLACED IN THE BLANK); AND
(2) ASSESSMENTS TO ASSIST IN THE SUPPORT OF THE OPERATIONS OF THE
PUCO AND THE OFFICE OF THE CONSUMERS' COUNSEL THAT HAVE BEEN IN
EFFECT SINCE 1912 AND 1977, RESPECTIVELY."
(C) Nothing in this section shall be construed to mean
that an electric distribution company OR A NATURAL GAS DISTRIBUTION
COMPANY subject to this
section may not cause such appearance or distribute such
statement on a more frequent basis.
Sec. 5703.052. There is hereby created in the state
treasury the tax refund fund, from which refunds shall be paid
for taxes illegally or erroneously assessed or collected, or for
any other reason overpaid, that are levied by Chapter 4301.,
4305., 5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747.,
5748., 5749., or 5753., and sections 3737.71, 3905.35, 3905.36,
4303.33, 5707.03, 5725.18, 5727.28, and 5727.38, and
5727.81, AND 5727.811 of the
Revised
Code. Refunds for fees illegally or erroneously assessed or
collected, or for any other reason overpaid, that are levied by
sections 3734.90 to 3734.9014 of the Revised Code also shall be
paid from the fund. However, refunds for taxes levied under
section 5739.101 of the Revised Code shall not be paid from the
tax refund fund, but shall be paid as provided in section
5739.104 of the Revised Code.
Upon certification by the tax commissioner to the treasurer
of state of a tax refund, fee refund, or tax credit due, or by
the superintendent of insurance of a domestic or foreign
insurance tax refund, the treasurer of state may place the amount
certified to the credit of the fund. The certified amount
transferred shall be derived from current receipts of the same
tax or the fee for which the refund arose or, in the case of a
tax credit refund, from the current receipts of the taxes levied
by sections 5739.02 and 5741.02 of the Revised Code.
If the tax refund arises from a tax payable to the general
revenue fund, and current receipts from that source are
inadequate to make the transfer of the amount so certified, the
treasurer of state may transfer such certified amount from
current receipts of the sales tax levied by section 5739.02 of
the Revised Code.
Sec. 5727.11. (A) Except as otherwise provided in this section, the true
value of all taxable property required
by division (A)(2) or (3) of section 5727.06 of the Revised Code to be
assessed by the tax commissioner shall be determined by a method
of valuation using cost as capitalized on the public utility's
books and records less composite annual allowances as prescribed
by the commissioner. If the commissioner finds that application
of this method will not result in the determination of true value
of the public utility's taxable property, the commissioner
may use another method of valuation.
(B) The (1) EXCEPT AS PROVIDED DIVISION (B)(2)
OF THIS SECTION, THE true value of current gas stored underground is
the cost of that gas shown on the books and records of the public
utility on the thirty-first day of December of the preceding
year.
(2) FOR TAX YEAR 2001 AND THEREAFTER, THE TRUE VALUE OF CURRENT
GAS STORED
UNDERGROUND IS THE COST OF THAT GAS AS DETERMINED IN THE MANNER PRESCRIBED IN
SECTION 5711.15 OF THE REVISED CODE.
(C) The true value of noncurrent gas stored underground is
thirty-five per cent of the cost of that gas shown on the books
and records of the public utility on the thirty-first day of
December of the preceding year.
(D)(1) Except as provided in division
(D)(2) of this section, the true value of the production
equipment of an
electric company and the true value of all taxable property of a
rural electric company is the equipment's or property's cost as
capitalized on the company's books and records less fifty per
cent of that cost as an allowance for depreciation and
obsolescence.
(2) The true value of the production equipment of an
electric company or rural electric company purchased, transferred, or placed
into service
after the effective date of this
amendment is the purchase price of the equipment as capitalized on
the company's books and records less composite annual allowances
as prescribed by the tax commissioner.
(E) The true value of taxable property described in
division (A)(2) or (3) of section 5727.06 of the Revised Code shall not
include the allowance for funds used during construction or
interest during construction that has been capitalized on
the
public utility's books and records as part of the total cost of
the taxable property. This division shall not apply to the taxable
property of an electric company or a rural electric company, excluding
transmission and distribution property, first placed into service after
December 31, 2000, or to the taxable property a person purchases,
which includes transfers, if that property was used in business by the seller
prior to the purchase.
(F) The true value of watercraft owned or operated by a
water transportation
company shall be determined by multiplying the true value of the watercraft as
determined under division (A) of this section by a
fraction, the numerator of
which is the number of revenue-earning miles traveled by the watercraft in the
waters of this state and the denominator of which is the number of
revenue-earning miles traveled by the watercraft in all waters.
(G) The cost of property subject to a sale and leaseback
transaction is the cost of the property as capitalized on the books and
records of the public utility owning the
property immediately prior to the sale and leaseback transaction.
(H) The cost as capitalized on the books and records of a public
utility includes amounts capitalized that represent regulatory assets, if such
amounts previously were included on the company's books and records as
capitalized costs of taxable personal property.
Sec. 5727.111. The taxable property of each public
utility, except a railroad company, and of each interexchange
telecommunications company shall be assessed at the following
percentages of true value:
(A) Fifty per cent in the case of the taxable transmission and
distribution property of a rural electric
company, and twenty-five per cent for all its other taxable
property;
(B) In the case of a telephone or telegraph company, (F) twenty-five
per cent for taxable property first subject to taxation in this state for tax
year
1995 or thereafter, and eighty-eight per cent for all other taxable property;
(C) Eighty-eight (1) EXCEPT AS PROVIDED IN DIVISION
(C)(2) OF THIS SECTION, EIGHTY-EIGHT per cent in the case of a
natural gas or
pipe-line company;
(2) FOR TAX YEAR 2001 AND THEREAFTER, TWENTY-FIVE PER CENT IN THE
CASE OF A NATURAL GAS COMPANY.
(D) Eighty-eight per cent in the case of a PIPE-LINE,
water-works, or
heating company;
(E)(1) Except as provided in division
(E)(2) of this section, eighty-eight per cent in the case of
the taxable transmission and distribution property of an
electric company, and twenty-five per cent for all its other taxable
property;
(2) Property listed and assessed under divisions (B)(1)
and (2) of section 5711.22 of the Revised Code shall
continue to be assessed at one hundred per cent for production equipment and
eighty-eight per cent for all other taxable property until January
1, 2002.
(F) (F) Twenty-five per cent in the case of an
interexchange telecommunications company;
(G) Twenty-five per cent in the case of a water
transportation company.
Sec. 5727.33. (A) For the purpose of computing the excise tax imposed by
section 5727.24 or 5727.30 of the Revised Code, the
tax commissioner shall ascertain and
determine the entire gross receipts actually received from all
sources, excluding the receipts described in divisions (B), (C),
(D), and (F)(E) of this section, of each
combined electric and gas, pipe-line, water-works,
heating, and water
transportation, AND COMBINED company for business done within
this state for
the year ending on the thirtieth day of April, of each natural gas company
for business done within this state quarterly or yearly as provided in section
5727.25 of the Revised Code, and of each
telegraph and telephone company for business done within this
state for the year ending on the thirtieth day of June.
(B) In ascertaining and determining the gross receipts of
each of the companies named in this section, the commissioner
shall exclude all of the following:
(1) All receipts derived wholly from interstate business;
(2) All receipts derived wholly from business done for or
with the federal government;
(3) All
RECEIPTS DERIVED WHOLLY FROM THE TRANSMISSION OR DELIVERY OF ELECTRICITY TO
OR FOR A RURAL ELECTRIC COMPANY, PROVIDED THAT THE ELECTRICITY THAT HAS BEEN
SO TRANSMITTED OR DELIVERED IS FOR RESALE BY THE RURAL ELECTRIC COMPANY. THIS
DIVISION DOES NOT APPLY TO TAX YEARS 2002 AND THEREAFTER.
(4) All receipts from the sale of merchandise;
(4)(5) All receipts from sales to other public utilities,
except railroad, telegraph, and telephone companies, for resale,
provided the other public utility is required to file a statement
pursuant to section 5727.31 of the Revised Code.
(C) In ascertaining and determining the gross receipts of a
telephone company, the commissioner shall exclude all
of the following:
(1) Receipts of amounts billed on behalf of other
entities;
(2) Receipts from sales to other telephone companies for
resale, as defined in division (G) of section 5727.32 of the
Revised Code;
(3) Receipts from incoming or outgoing wide area
transmission
service or wide area transmission type service, including eight
hundred or eight-hundred-type service;
(4) Receipts from private communications service as
described
in division (AA)(2) of section 5739.01 of the Revised Code;
(5) Receipts from sales to providers of
telecommunications
service for resale, as defined in division (G) of section 5727.32
of the Revised Code.
(D) IN ASCERTAINING AND DETERMINING THE GROSS RECEIPTS OF AN ELECTRIC
COMPANY, THE COMMISSIONER SHALL EXCLUDE RECEIPTS DERIVED FROM THE PROVISION OF
ELECTRICITY AND OTHER
SERVICES TO A QUALIFIED FORMER OWNER OF THE PRODUCTION FACILITIES
THAT GENERATED THE ELECTRICITY FROM WHICH THOSE RECEIPTS WERE
DERIVED. THIS DIVISION DOES NOT APPLY TO TAX YEARS
2002 AND THEREAFTER. AS USED IN THIS DIVISION, A "QUALIFIED
FORMER OWNER" MEANS A PERSON WHO MEETS BOTH OF THE FOLLOWING
CONDITIONS:
(1) ON OR BEFORE OCTOBER 11, 1991, THE PERSON HAD SOLD TO AN
ELECTRIC COMPANY PART OF THE PRODUCTION FACILITY AT WHICH THE ELECTRICITY IS
GENERATED, AND, FOR AT LEAST TWENTY YEARS PRIOR TO
THAT SALE, THE FACILITY WAS USED TO GENERATE ELECTRICITY, BUT IT
WAS NOT OWNED IN WHOLE OR PART DURING THAT PERIOD BY AN ELECTRIC
COMPANY.
(2) AT THE TIME THE ELECTRIC COMPANY PROVIDED THE ELECTRICITY OR
OTHER SERVICES FOR WHICH THE EXCLUSION IS CLAIMED, THE PERSON, OR A
SUCCESSOR OR ASSIGN OF THE PERSON, OWNED NOT LESS THAN A TWENTY PER CENT
OWNERSHIP OF THE PRODUCTION FACILITY AND THE RIGHTS TO NOT LESS
THAN TWENTY PER CENT OF THE PRODUCTION OF THAT FACILITY.
(E) In ascertaining and determining the gross receipts of a
natural gas company, the commissioner shall exclude receipts of amounts
billed
on behalf of other entities AND RECEIPTS RECEIVED TO PAY THE TAX IMPOSED BY
SECTION 5727.811 OF THE REVISED CODE. Transportation
and billing and collection fees
charged to other entities shall be included in the gross receipts of a natural
gas company.
(F) In ascertaining and determining the gross receipts of
a combined electric and gas company subject to the tax imposed by
section
5727.30 of the Revised Code, the commissioner shall exclude
all receipts derived from operating as a natural gas company that are
subject to the tax imposed by section 5727.24 of the
Revised Code.
(G) Except as provided in division (H)
of this section, the amount ascertained by the commissioner under this
section, less a deduction of twenty-five thousand dollars, shall
be the gross receipts of such companies for business done within
this state for that year.
(H) The amount ascertained by the commissioner under this
section, less the following deduction, shall be the gross receipts of a
natural gas company or combined electric
and gas company for business done within this state:
(1) For a natural gas company that files quarterly returns of the
tax imposed by section 5727.24 of the Revised Code, six
thousand
two hundred fifty dollars for each quarterly return;
(2) For a natural gas company that files an annual return of the
tax imposed by section 5727.24 of the Revised Code,
twenty-five
thousand dollars for each annual return;
(3) For a combined electric and gas company, twenty-five thousand
dollars on the annual statement filed under section 5727.31 of the
Revised Code. A combined electric and gas company shall
not be entitled to a deduction in computing gross receipts subject to the
tax imposed by section 5727.24 of the Revised Code.
Sec. 5727.80. As used in sections 5727.80 to 5727.95 of
the Revised
Code:
(A) "Electric
distribution company" means either of the following:
(1) A person who distributes electricity through a meter
of an end user in this state;
(2) The end user of electricity in this state,
if the end user obtains
electricity that is not distributed or transmitted to the end
user by an electric distribution company that is required to
remit the tax imposed by section 5727.81 of the
Revised
Code. "Electric distribution company" does not include the end user
of electricity in this state who self-generates electricity that is used
directly by that end user on the same site that the electricity is
generated.
(B) "Kilowatt hour" means one thousand watt hours of
electricity.
(C) "Meter FOR AN ELECTRIC DISTRIBUTION COMPANY, "METER of an
end
user in this state" means the last meter used to measure the kilowatt hours
distributed by an electric distribution company to
a location in this state, the last meter located outside of this state
that is used to measure the kilowatt hours consumed at a location in this
state, or, if no meter is used, the estimated
kilowatt hours distributed to an unmetered location in this state.
(D) "Person" has the same meaning as in section 5701.01 of the
Revised Code, but also includes a political subdivision of
the state.
(E) "Municipal electric
utility" means a municipal corporation that owns or operates a
system for the distribution of electricity.
(F) "Qualified end user" means an end user of electricity that
uses more than three million
kilowatt hours of electricity at one manufacturing location in this state for
a calendar day for use in a manufacturing process that features an
electrochemical reaction in
which electrons from direct current electricity remain a part of
the product being manufactured.
(G) "Self-assessing purchaser" means a purchaser that meets all
the requirements of, and pays the excise tax in accordance with, division
(C) of section 5727.81 of the Revised Code.
(H) "Six month revenue differential for self-assessing
purchasers" means thirty-one million six hundred fifty thousand
dollars less the amount paid under division (C)(1)(a) of section
5727.81 of the Revised Code by all self-assessing purchasers for
the six-month period ending in the month prior to the date of the
calculations required under divisions (C)(1)(b) and (c) of section
5727.81 of the Revised Code.
(I) "Twelve month revenue differential for self-assessing
purchasers" means sixty-three million three hundred thousand
dollars less the amount paid under division (C)(1)(a) of section
5727.81 of the Revised Code by all self-assessing purchasers for
the twelve-month period ending in the month prior to the date of
the calculation required under division (C)(1)(d) of section
5727.81 of the Revised Code.
(J) "NATURAL GAS DISTRIBUTION COMPANY" MEANS A
PUBLIC UTILITY, AS DEFINED IN SECTION 4905.02 of the Revised Code, WHO IS SUBJECT TO THE
EXCISE TAX IMPOSED BY SECTION 5727.24 OR 5727.30 of the Revised Code AND THAT DISTRIBUTES
NATURAL GAS THROUGH A METER OF AN END USER IN THIS STATE.
(K) "MCF" MEANS ONE THOUSAND CUBIC FEET.
(L) FOR A NATURAL GAS DISTRIBUTION COMPANY, "METER OF AN END USER
IN THIS STATE" MEANS THE LAST METER USED TO MEASURE THE MCF OF
NATURAL GAS DISTRIBUTED BY A NATURAL GAS DISTRIBUTION COMPANY TO A LOCATION IN
THIS STATE, THE LAST
METER LOCATED OUTSIDE OF THIS STATE THAT IS USED TO MEASURE THE
NATURAL GAS CONSUMED AT A LOCATION IN THIS STATE, OR, IF NO METER
IS USED, THE ESTIMATED MCF OF NATURAL GAS DISTRIBUTED TO AN
UNMETERED LOCATION IN THIS STATE.
(M) "FLEX CUSTOMER" MEANS AN INDUSTRIAL OR A COMMERCIAL FACILITY
THAT HAS CONSUMED MORE THAN ONE BILLION CUBIC FEET OF NATURAL GAS A YEAR AT A
SINGLE LOCATION DURING ANY OF THE PREVIOUS FIVE YEARS, OR AN INDUSTRIAL OR
A COMMERCIAL END USER OF
NATURAL GAS THAT PURCHASES NATURAL GAS DISTRIBUTION SERVICES FROM A NATURAL
GAS DISTRIBUTION COMPANY AT DISCOUNTED
RATES OR CHARGES ESTABLISHED IN ANY OF THE FOLLOWING:
(1) A SPECIAL ARRANGEMENT SUBJECT TO REVIEW AND REGULATION BY THE
PUBLIC UTILITIES COMMISSION UNDER SECTION 4905.31 OF THE REVISED
CODE;
(2) A SPECIAL ARRANGEMENT WITH A NATURAL GAS DISTRIBUTION COMPANY
PURSUANT TO A MUNICIPAL ORDINANCE;
(3) A VARIABLE RATE SCHEDULE THAT PERMITS RATES TO VARY BETWEEN
DEFINED AMOUNTS, PROVIDED THAT THE SCHEDULE IS ON FILE WITH THE PUBLIC
UTILITIES COMMISSION.
AN END USER THAT MEETS THIS DEFINITION ON JANUARY 1, 2000, AND
THEREAFTER IS A "FLEX CUSTOMER" FOR PURPOSES OF DETERMINING THE RATE OF
TAXATION UNDER DIVISION (D) OF SECTION 5727.811 OF THE
REVISED CODE.
Sec. 5727.81. (A) For
the purpose of raising revenue for public education and state
and local government operations, an excise tax is hereby levied
and imposed on an electric distribution company for all electricity
distributed by such company that has May 1, 2001, as part of its
measurement period, at the following rates
per kilowatt hour of electricity distributed in a thirty-day period by
the company through a meter of an end user in this state:
KILOWATT HOURS DISTRIBUTED TO | RATE PER |
AN END USER | KILOWATT HOUR |
For the first 2,000 | $.00465 |
For the next 2,001 to 15,000 | $.00419 |
For 15,001 and above | $.00363 |
The electric distribution company shall base the monthly tax on the
kilowatt hours of electricity distributed to an end user
through the meter of the end user that is not measured for a thirty-day period
by dividing the days
in the measurement period into the total kilowatt hours measured during
the measurement period to obtain a daily average usage. The tax shall
be determined by obtaining the sum of divisions (A)(1), (2), and
(3) of this section and multiplying that amount by the number of days in
the measurement period:
(1) Multiplying $0.00465 per kilowatt hour for the first
sixty-seven kilowatt hours distributed using a daily average;
(2) Multiplying $0.00419 for the next sixty-eight to five hundred
kilowatt hours distributed using a daily average;
(3) Multiplying $0.00363 for the remaining kilowatt hours
distributed using a daily average.
Except as provided in division (C) of this section, the
electric distribution company shall pay the tax to the treasurer of
state in accordance with section 5727.82 of the Revised
Code.
Only the distribution of electricity through
a meter of an end user in
this state shall be used by the electric distribution company to
compute the amount or estimated amount of tax due. In the event a meter is
not actually read for a measurement period, the estimated kilowatt hours
distributed by an electric distribution company to collect its distribution
charges may be used.
(B) Except as provided in division (C) of this section,
each electric distribution company shall pay the tax imposed by this
section in all of the following circumstances:
(1) The electricity is distributed by the company through
a meter of an end user in this state;
(2) The company is distributing electricity through a
meter located in another state, but the electricity is consumed
in this state in the manner prescribed by the tax
commissioner;
(3) The company is distributing electricity in this state
without the use of a meter, but the electricity is consumed in
this state as estimated and in the manner prescribed by
the tax commissioner.
(C)(1)(a) A commercial or industrial
purchaser that receives electricity through a meter of an end user in this
state and consumes, over the course of the previous calendar year, more than
one hundred twenty million kilowatt hours of electricity may
elect to self-assess the excise tax imposed by this section at the
rate of $.00075 per kilowatt hour and four per cent of the total price of
electricity delivered
through a meter of an end user in this state. Payment of the tax
shall be made directly to the treasurer of state in accordance
with divisions (A)(3)(4) and (4)(5) of section
5727.82 of the
Revised Code or, if the electric
distribution company serving the self-assessing purchaser is a
municipal electric utility and the purchaser is within the
municipal corporation's corporate limits, to such municipal
corporation's general fund in accordance with division
(A)(2)(3) of
section 5727.82 of the Revised Code, and upon paying in this
manner, the self-assessing purchaser shall not be required to pay the excise
tax to the electric distribution company from which its
electricity is delivered.
(b) On or before December 10, 2001, the tax commissioner shall
calculate the six month revenue differential for self-assessing
purchasers. If the six month revenue differential is greater than
five hundred thousand dollars, the tax commissioner shall increase
the percentage of total price tax rate to be charged for the
six-month period beginning in the month following that in which
the calculation is done. The new tax rate shall be the rate in
effect during the current period multiplied by the sum of one plus
the product of (i) a fraction, the numerator of which is the six
month revenue differential multiplied by two and the denominator
of which is the amount paid during the period by all
self-assessing purchasers on the percentage of total price basis
and (ii) a fraction, the numerator of which is total kilowatt
hours consumed during the period by self-assessing purchasers and
the denominator of which is eleven billion twenty-five million.
If the six month revenue differential is less than negative five
hundred thousand dollars, the tax commissioner shall decrease the
percentage of total price tax rate to be charged for the six-month
period beginning in the month following that in which the
calculation is made. The new tax rate shall be the rate in effect
during the current period multiplied by the sum of one plus the
product of (i) a fraction, the numerator of which is the six month
revenue differential multiplied by two and the denominator of
which is the amount paid during the period by all self-assessing
purchasers on the percentage of total price basis and (ii) a
fraction, the numerator of which is eleven billion twenty-five
million and the denominator of which is total kilowatt hours
consumed during the period by self-assessing purchasers.
(c) On or before June 10, 2002, the tax commissioner shall
calculate the six month revenue differential for self-assessing
purchasers. If the six month revenue differential is greater than
five hundred thousand dollars, the tax commissioner shall increase
the percentage of total price tax rate to be charged for the
twelve-month period beginning in the month following that in which
the calculation is made. The new tax rate shall be the rate in
effect during the current period multiplied by the sum of one plus
the product of (i) a fraction, the numerator of which is the six
month revenue differential and the denominator of which is the
amount paid during the period by all self-assessing purchasers on
the percentage of total price basis and (ii) a fraction, the
numerator of which is total kilowatt hours consumed during the
period by self-assessing purchasers and the denominator of which
is eleven billion twenty-five million.
If the six month revenue deferential is less than negative five
hundred thousand dollars, the tax commissioner shall decrease the
percentage of total price tax rate to be charged for the twelve-month
period beginning in the month following that in which the
calculation is made. The new tax rate shall be the rate in effect
during the current period multiplied by the sum of one plus the
product of (i) a fraction, the numerator of which is the six month
revenue differential and the denominator of which is the amount
paid during the period by all self-assessing purchasers on the
percentage of total price basis and (ii) a fraction, the numerator
of which is eleven billion twenty-five million and the denominator
of which is total kilowatt hours consumed during the period by
self-assessing purchasers.
(d) On or before June 10, 2003, 2004, 2005, 2006, and 2007, the
tax commissioner shall calculate the twelve month revenue
differential for self-assessing purchasers. If the twelve month
revenue differential is greater than one million dollars, the tax
commissioner shall increase the percentage of total price tax rate
to be charged for the twelve-month period beginning in the month
following that in which the calculation is made, except that the
rate calculated in 2007 shall become the permanent tax rate. In
each year, the new tax rate shall be the rate in effect during the
current period multiplied by the sum of one plus a fraction, the
numerator of which is the twelve month revenue differential and
the denominator of which is the amount paid during the period by
all self-assessing purchasers on the percentage of total price
basis.
If the revenue differential is less than negative one million
dollars, the tax commissioner shall decrease the percentage of
total price tax rate to be charged for the twelve-month period
beginning in the month following that in which the calculation is
made, except that the rate calculated in 2007 shall become the
permanent tax rate. In each year, the new tax rate shall be the
rate in effect during the current period multiplied by the sum of
one plus a fraction, the numerator of which is the twelve month
revenue differential and the denominator of which is the amount
paid during the period by all self-assessing purchasers on the
percentage of price basis.
(2) Application for registration as a self-assessing purchaser
shall be made on a form prescribed by the tax commissioner. At the time of
making the
application and by the first day of May of each year, excluding
May 1, 2000, a self-assessing purchaser shall pay a fee of five
hundred dollars to the treasurer of state for deposit to the
kilowatt hour excise tax administration fund, which is hereby
created in the state treasury. Money in the fund shall be used to
defray the tax commissioner's cost in administering the tax owed
under section 5727.81 of the Revised Code by self-assessing
purchasers. After the application is approved by the tax
commissioner, the
registration shall remain in effect until canceled by the
registrant upon written notification to the commissioner of the
election to pay the tax in accordance with division (A) of this
section, or by the tax commissioner for not paying the tax or fee under
division (C) of this section, or meeting the qualifications in
division (C)(1) of this section. The tax commissioner shall give
written notice to the electric
distribution company from which
electricity is delivered to a self-assessing purchaser of the purchaser's
self-assessing status, and the electric
distribution company is relieved of the obligation
to pay the tax imposed by division (A) of this section for
electricity distributed to that self-assessing purchaser
until it is notified by
the tax commissioner that the self-assessing purchaser's
registration is canceled. Within fifteen days of notification of
the canceled registration, the electric distribution company shall
be responsible for payment of the tax imposed by division (A) of
this section on electricity distributed to a purchaser that is no longer
registered as a
self-assessing purchaser. A self-assessing purchaser with a canceled
registration must file a
report and remit the tax imposed by division (A) of this section
on all electricity it receives for any measurement period prior to the tax
being reported and paid
by the electric distribution company. A self-assessing purchaser
whose registration is canceled by the tax commissioner is not eligible to
register as a self-assessing purchaser for two years after the registration is
canceled.
(D) The tax imposed by
this section does not apply to the distribution of any kilowatt hours
of electricity to the federal government, to an end user located at a federal
facility that uses electricity for the enrichment of uranium, or to an end
user for any day the end
user is a qualified end user. The exemption under this division for a
qualified end user only applies to the manufacturing location where the
qualified end user uses more than three million kilowatt hours per day.
Sec. 5727.811. (A) FOR THE PURPOSE OF RAISING REVENUE FOR PUBLIC
EDUCATION AND STATE AND LOCAL GOVERNMENT OPERATIONS, AN EXCISE TAX IS HEREBY
LEVIED ON EVERY NATURAL
GAS DISTRIBUTION COMPANY FOR ALL NATURAL GAS VOLUMES BILLED BY, OR ON BEHALF
OF, THE COMPANY ON AND AFTER JULY 1, 2001. EXCEPT AS PROVIDED IN
DIVISIONS (C) OR (D) OF THIS SECTION, THE TAX SHALL BE
LEVIED AT THE
FOLLOWING
RATES PER MCF OF NATURAL GAS DISTRIBUTED BY THE
COMPANY THROUGH A METER OF AN END USER IN THIS STATE:
MCF DISTRIBUTED TO AN END USER | RATE PER MCF |
FOR THE FIRST 100 MCF PER MONTH | $.1593 |
FOR THE NEXT 101 TO 2000 MCF PER
MONTH | $.0877 |
FOR 2001 AND ABOVE MCF PER MONTH | $.0411 |
(B) A NATURAL GAS DISTRIBUTION COMPANY SHALL BASE THE TAX ON
THE MCF OF NATURAL GAS DISTRIBUTED TO AN END USER THROUGH THE
METER OF THE END USER IN THIS STATE THAT IS ESTIMATED TO BE CONSUMED BY THE
END USER AS REFLECTED ON THE END USER'S
CUSTOMER STATEMENT FROM THE NATURAL GAS DISTRIBUTION COMPANY. THE
NATURAL GAS DISTRIBUTION COMPANY SHALL PAY THE TAX LEVIED BY THIS
SECTION TO THE TREASURER OF STATE IN ACCORDANCE WITH SECTION
5727.82 OF THE REVISED CODE.
(C)
A NATURAL GAS DISTRIBUTION COMPANY WITH FIFTY THOUSAND CUSTOMERS
OR LESS MAY ELECT TO APPLY THE RATES SPECIFIED IN DIVISION (A) OF
THIS SECTION TO THE AGGREGATE OF THE NATURAL GAS DISTRIBUTED BY THE COMPANY
THROUGH THE METER OF ALL ITS CUSTOMERS IN THIS
STATE, AND UPON SUCH ELECTION, THIS METHOD SHALL BE USED TO DETERMINE THE
AMOUNT OF TAX TO BE PAID BY SUCH COMPANY.
(D)
A NATURAL GAS DISTRIBUTION COMPANY SHALL PAY THE TAX IMPOSED
BY THIS SECTION AT THE RATE OF $.02 PER MCF OF NATURAL GAS
DISTRIBUTED BY THE COMPANY THROUGH THE METER OF
A FLEX CUSTOMER. THE NATURAL GAS DISTRIBUTION COMPANY CORRESPONDINGLY SHALL
REDUCE THE PER MCF RATE THAT IT CHARGES THE FLEX CUSTOMER FOR
NATURAL GAS DISTRIBUTION SERVICES BY $.02 PER MCF OF NATURAL GAS
DISTRIBUTED TO THE FLEX CUSTOMER.
(E) EXCEPT AS PROVIDED IN DIVISION (F) OF THIS SECTION,
EACH NATURAL GAS DISTRIBUTION COMPANY SHALL PAY THE TAX IMPOSED BY THIS
SECTION IN ALL OF THE FOLLOWING CIRCUMSTANCES:
(1) THE NATURAL GAS IS DISTRIBUTED BY THE COMPANY THROUGH A METER
OF AN END USER IN THIS STATE;
(2) THE NATURAL GAS DISTRIBUTION COMPANY IS DISTRIBUTING NATURAL
GAS THROUGH A METER LOCATED IN ANOTHER STATE, BUT THE NATURAL GAS IS
CONSUMED IN THIS STATE IN THE MANNER PRESCRIBED BY THE TAX
COMMISSIONER;
(3) THE NATURAL GAS DISTRIBUTION COMPANY IS DISTRIBUTING NATURAL
GAS IN THIS STATE WITHOUT THE USE OF A METER, BUT THE NATURAL GAS IS
CONSUMED IN THIS STATE AS ESTIMATED AND IN THE MANNER PRESCRIBED BY THE
TAX COMMISSIONER.
(F) THE TAX LEVIED BY THIS SECTION DOES NOT APPLY TO THE
DISTRIBUTION OF NATURAL GAS TO THE FEDERAL GOVERNMENT, THE DISTRIBUTION OF
NATURAL GAS USED TO GENERATE ELECTRICITY FOR RESALE, OR ANY
NATURAL GAS PRODUCED BY AN END USER IN THIS STATE THAT IS CONSUMED
BY THAT END USER OR ITS AFFILIATES AND IS NOT DISTRIBUTED THROUGH
THE FACILITIES OF A NATURAL GAS COMPANY.
Sec. 5727.82. (A)(1) Except as provided in divisions
(A)(2)(3) and (D) of this section, by the
twentieth day of each month, each electric distribution company
required to pay the tax imposed by section 5727.81 of the
Revised
Code shall file with the
treasurer of state a return as prescribed by the tax
commissioner and shall make payment of the full amount of tax
due for the preceding month. The first payment of this tax shall be made on
or before June 20, 2001.
(2) BY THE TWENTIETH DAY OF MAY, AUGUST,
NOVEMBER, AND FEBRUARY, EACH NATURAL GAS DISTRIBUTION
COMPANY REQUIRED TO PAY THE TAX IMPOSED BY SECTION 5727.811 OF THE
REVISED CODE SHALL FILE WITH THE TREASURER OF STATE A RETURN
AS PRESCRIBED BY THE TAX COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL
AMOUNT OF TAX DUE FOR THE PRECEDING QUARTER. THE FIRST PAYMENT OF THIS TAX
SHALL BE MADE ON OR BEFORE NOVEMBER 20, 2001, FOR THE QUARTER ENDING
SEPTEMBER 30, 2001.
(3) If the electric distribution company required to pay
the tax imposed by section 5727.81 of the
Revised
Code is a municipal electric
utility, it may retain in its general fund that portion
of the tax on the kilowatt hours distributed to end users
located within the boundaries of the municipal corporation.
However, the municipal electric utility shall make payment in
accordance with division (A)(1)
of this section of the tax due on the kilowatt hours distributed
to end users located outside the boundaries of the municipal
corporation.
(3)(4) By the twentieth day of each
month, each self-assessing purchaser that under division (C) of
section 5727.81 of the Revised Code pays directly to the
treasurer
of state the tax imposed by section 5727.81 of the Revised
Code
shall file with the treasurer of state a return as prescribed by the tax
commissioner and shall make payment of the full amount of
the tax due for the preceding month.
(4)(5) As prescribed by the tax commissioner, the
A return shall be signed by
the company or self-assessing purchaser required to
file it, or an authorized employee, officer, or agent of the
company or purchaser. The treasurer of state shall mark on the return the
date it was received and indicate payment or nonpayment of the tax shown to
be due on the return. The treasurer of state immediately shall transmit
all returns to the tax commissioner. The return shall be deemed
filed when received by the treasurer of state.
(B) Any NATURAL GAS DISTRIBUTION COMPANY, electric distribution
company, or self-assessing purchaser
required by this section to file a return
who fails to file it and pay the tax within the period prescribed shall pay an
additional charge of fifty dollars or ten per cent of the tax
required to be paid for the reporting period, whichever is
greater. The tax commissioner may collect the additional charge
by assessment pursuant to section 5727.89 of the
Revised
Code. The commissioner may
abate all or a portion of the additional charge and may adopt
rules governing such abatements.
(C) If any tax due is
not paid timely in accordance with this section, the NATURAL GAS
DISTRIBUTION COMPANY, electric
distribution company, or self-assessing purchaser liable for the tax
shall pay
interest, calculated at the rate per annum prescribed by section 5703.47
of the Revised
Code, from the date the tax
payment was due to the date of payment or to the date an
assessment is issued, whichever occurs first. Interest shall be
paid in the same manner as the tax, and the commissioner may
collect the interest by assessment pursuant to section 5727.89
of the Revised Code.
(D) Not later than the tenth day of each month, a qualified end
user shall report in writing to the electric distribution company
that distributes electricity to the end user the kilowatt hours
that were consumed as a qualified end user for the prior month and
the number of days, if any, on which the end user was not a
qualified end user. For each calendar day the end user was not a
qualified end user, the end user shall report in writing to the
electric distribution company the number of kilowatt hours used on
that day, and the electric distribution company shall pay the tax
imposed under section 5727.81 of the Revised Code on each
kilowatt hour that was not distributed to a qualified end user.
The electric distribution company may rely in good faith on a
qualified end user's report filed under this division. If it
is determined that the end user was not a qualified end user for
any calendar day or the quantity of electricity used by the
qualified end user was overstated, the tax commissioner shall
assess and collect any tax imposed under section 5727.81 of the
Revised Code directly from the
qualified end user. As requested by the commissioner, each end user
reporting to an electric distribution company that it is a
qualified end user shall provide documentation to the commissioner that
establishes
the volume of electricity consumed daily by the qualified end
user.
Sec. 5727.83. (A) An A NATURAL GAS DISTRIBUTION COMPANY, AN
electric distribution company, or
A self-assessing purchaser
shall remit each monthly tax payment by
electronic funds transfer as
prescribed by divisions (B) and (C) of this section.
The tax commissioner shall notify each NATURAL GAS DISTRIBUTION
COMPANY, electric distribution company,
and self-assessing purchaser of the obligation to
remit taxes by electronic funds transfer,
shall maintain an updated list of those companies and purchasers, and
shall timely
certify to the treasurer of state the list and any additions
thereto or deletions therefrom. Failure by the tax
commissioner to notify a company or self-assessing purchaser subject to
this section to remit taxes by electronic funds transfer does not
relieve the company or self-assessing purchaser of its obligation to remit
taxes in that manner.
(B) An A NATURAL GAS DISTRIBUTION COMPANY, AN electric
distribution company, or A self-assessing purchaser
required by this section to
remit
payments by electronic funds transfer shall remit
such payments to the treasurer of state in the manner prescribed by
rules adopted by the treasurer of state under section 113.061 of the Revised Code, and on or
before the dates specified under section 5727.82 of the Revised Code. The payment of taxes
by electronic
funds transfer does not affect a company's or self-assessing purchaser's
obligation to file the monthly A return as required under
section 5727.82 of the Revised Code.
(C) An A NATURAL GAS DISTRIBUTION COMPANY, AN electric
distribution company, or A self-assessing purchaser
required by this section to remit taxes by electronic funds transfer may apply
to the treasurer of state in
the manner prescribed by the treasurer of state to be excused from that
requirement. The treasurer of state may excuse the company or self-assessing
purchaser from
remittance by electronic funds transfer for good cause shown for
the period of time requested by the company or self-assessing purchaser or for
a portion of that period. The treasurer of state shall notify the tax
commissioner and
the company or self-assessing purchaser of the treasurer of state's decision
as soon as is practicable.
(D) If an A NATURAL GAS DISTRIBUTION COMPANY, AN electric
distribution company, or A self-assessing
purchaser required by this section
to remit taxes by
electronic funds transfer remits those taxes by some means other
than by electronic funds transfer as prescribed by this section
and the rules adopted by the treasurer of state, and the
treasurer of state determines that such failure was not due to reasonable
cause or was due to willful neglect, the treasurer of state shall notify
the tax commissioner of the failure to remit by electronic funds
transfer and shall provide the commissioner with any information
used in making that determination. The tax commissioner may
collect an additional charge by assessment in the manner
prescribed by section 5727.89 of the Revised Code. The
additional charge shall equal five per cent of the amount of the
taxes required to be paid by electronic funds transfer, but shall
not exceed five thousand dollars. Any additional charge assessed
under this section is in addition to any other penalty or charge
imposed under this chapter, and shall be considered as revenue
arising from the tax imposed under this chapter. The tax
commissioner may abate all or a portion of such a charge and may
adopt rules governing such abatements.
No additional charge shall be assessed under this division
against A NATURAL GAS DISTRIBUTION COMPANY, an electric
distribution company, or A self-assessing purchaser that has
been notified of its
obligation
to remit taxes under this section and that remits its first two tax
payments after such notification by some means other than
electronic funds transfer. The additional charge may be assessed
upon the remittance of any subsequent tax payment that the company or
purchaser remits by
dome means other than electronic funds transfer.
Sec. 5727.84. (A) As used in this section and sections 5727.85,
5727.86, and
5727.87 of the Revised Code:
(1) "School district" means a city, local, or exempted village
school district.
(2) "Joint vocational school district" means a joint vocational
school district created under section 3311.16 of the Revised
Code,
and includes a cooperative education school district created under
section 3311.52 or 3311.521 of the Revised Code and a county
school financing district created under section 3311.50 of the
Revised Code.
(3) "Local taxing unit" means a subdivision or taxing unit, as defined in
section 5705.01 of the Revised Code, a park district
created under Chapter 1545. of the Revised Code, or
a township park district established under section 511.23 of the Revised Code,
but excludes
school districts
and joint vocational school districts.
(4) "State education aid" means the sum of the state basic aid
and state special education aid amounts computed for a school district
under divisions (A) and (C) of section 3317.022 of the
Revised
Code.
(5) "State education aid offset" means the amount certified for
each school district under division (A)(1) of section 5727.85 of
the Revised Code.
(6) "Adjusted total taxable value" has the same meaning as in
section 3317.02 of the Revised Code.
(7) "ELECTRIC COMPANY TAX VALUE LOSS" MEANS THE AMOUNT DETERMINED
UNDER DIVISION (D) OF THIS SECTION.
(8) "NATURAL GAS COMPANY TAX VALUE LOSS" MEANS THE AMOUNT DETERMINED UNDER
DIVISION (E) OF THIS SECTION.
(9) "Tax value loss" means the amount determined under division
(C) of this section SUM OF THE ELECTRIC COMPANY TAX VALUE LOSS AND THE
NATURAL GAS COMPANY TAX VALUE LOSS.
(8)(10) "Fixed-rate levy" means any tax levied on property
other than
a fixed-sum levy.
(9)(11) "Fixed-rate levy loss" means the amount determined
under
division (D)(G) of this section.
(10)(12) "Fixed-sum levy" means a tax levied on property at
whatever
rate is required to produce a specified amount of tax money or to pay
debt charges, and includes school district emergency levies imposed
pursuant to section 5705.194 of the Revised Code.
(11)(13) "Fixed-sum levy loss" means the amount determined
under
division (E)(H) of this section.
(12)(14) "Consumer price index" means the consumer price
index (all
items, all urban consumers) prepared by the bureau of labor statistics
of the United States department of labor.
(B) All money arising from the tax imposed by section 5727.81 of
the Revised Code shall be credited as follows:
(1) Fifty-nine and nine hundred seventy-six one-thousandths per
cent, plus an amount equal to SEVENTY PER CENT OF the TOTAL
state education aid offset, shall be
credited to the general revenue fund.
(2) Two and six hundred forty-six one-thousandths per cent shall
be credited to the local government fund, for distribution in accordance
with section 5747.50 of the Revised Code.
(3) Three hundred seventy-eight one-thousandths per cent shall be
credited to the local government revenue assistance fund, for
distribution in accordance with section 5747.61 of the Revised
Code.
(4) Twenty-five and nine-tenths per cent, less an amount equal to
SEVENTY PER CENT OF the TOTAL state education aid offset, shall
be credited to the school district
property tax replacement fund, which is hereby created in the state
treasury for the purpose of making the payments described in
section 5727.85 of the Revised Code.
(5) Eleven and one-tenth per cent shall be credited to the local
government property tax replacement fund, which is hereby created in the
state treasury for the purpose of making the payments described in
section 5727.86 of the Revised Code.
(6) Beginning in the fiscal year in which payments are required to be made
under sections 5727.85 and 5727.86 of the Revised Code, if the revenue arising
from the tax levied by
section 5727.81 of the Revised Code is less than five
hundred fifty-two million
dollars, the amount credited to the general revenue fund under division
(B)(1) of this section shall be reduced by the amount
necessary to credit to each of the funds in divisions
(B)(2), (3), (4), and (5) of this section the amount it would have
received if the tax did raise five hundred fifty-two million dollars for that
fiscal year. The tax commissioner shall certify to the director of budget and
management the amounts that shall be credited under this division.
(C)
ALL MONEY ARISING FROM THE TAX IMPOSED BY SECTION 5727.811 OF THE
REVISED CODE SHALL BE CREDITED AS FOLLOWS:
(1) SEVENTY PER CENT, LESS AN AMOUNT EQUAL TO THIRTY PER CENT OF
THE TOTAL STATE EDUCATION AID OFFSET, SHALL BE CREDITED TO THE SCHOOL
DISTRICT PROPERTY TAX REPLACEMENT FUND FOR THE PURPOSE OF MAKING THE
PAYMENTS DESCRIBED IN SECTION 5727.85 OF THE REVISED
CODE.
(2) THIRTY PER CENT SHALL BE CREDITED TO THE LOCAL GOVERNMENT
PROPERTY TAX REPLACEMENT FUND FOR THE PURPOSE OF MAKING THE PAYMENTS
DESCRIBED IN SECTION 5727.86 OF THE REVISED CODE.
(3) AN AMOUNT EQUAL TO THIRTY PER CENT OF THE TOTAL STATE
EDUCATION AID OFFSET SHALL BE CREDITED TO THE GENERAL REVENUE FUND.
(4) BEGINNING IN THE FISCAL YEAR IN WHICH PAYMENTS ARE REQUIRED
TO BE MADE UNDER SECTIONS 5727.85 AND 5727.86 OF THE REVISED
CODE,
IF THE REVENUE ARISING FROM THE TAX LEVIED BY SECTION 5727.811 OF THE
REVISED CODE IS LESS THAN NINETY MILLION DOLLARS, THE
AMOUNT CREDITED TO THE GENERAL REVENUE FUND UNDER DIVISION (C)(3)
OF THIS SECTION SHALL BE REDUCED BY THE AMOUNT NECESSARY TO CREDIT TO EACH OF
THE FUNDS IN
DIVISIONS (C)(1) AND (2) OF THIS SECTION THE AMOUNT THAT IT WOULD
HAVE RECEIVED IF THE TAX DID RAISE NINETY MILLION DOLLARS FOR THAT FISCAL
YEAR. THE TAX
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND
MANAGEMENT THE AMOUNTS THAT SHALL BE CREDITED UNDER THIS DIVISION.
(D)
Not later than January 1, 2002, the tax commissioner shall
determine for each taxing district its ELECTRIC COMPANY tax value loss,
which is the sum
of the amounts described in divisions (C)(D)(1) and (2) of
this section:
(1) The difference obtained by subtracting the amount described
in division (C)(D)(1)(b) from the amount described in division
(C)(D)(1)(a) of this section.
(a) The value of electric company and rural electric company
tangible personal property as assessed by the tax commissioner for tax year
1998 on a preliminary
assessment, or an amended preliminary assessment if issued prior to
March 1, 1999, and as apportioned to the taxing district
for tax year 1998;
(b) The value of electric company and rural electric company
tangible personal property as assessed by the tax commissioner for
tax year 1998 had the property been apportioned to the taxing
district for tax year 2001, and assessed at the rates in effect
for tax year 2001.
(2) The difference obtained by subtracting the amount described
in division (C)(D)(2)(b) from the amount described in division
(C)(D)(2)(a) of this section.
(a) The three-year average for tax years 1996, 1997, and 1998 of
the assessed value from nuclear fuel materials and assemblies assessed
against a person under Chapter 5711. of the Revised Code
from the leasing of them to an electric company for those respective tax
years, as reflected in the preliminary assessments;
(b) The three-year average assessed value from nuclear fuel
materials and assemblies assessed under division (C)(D)(2)(a)
of this
section for tax years 1996, 1997, and 1998, as reflected in the preliminary
assessments, using an assessment rate of
twenty-five per cent.
(E) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER
SHALL DETERMINE FOR EACH TAXING DISTRICT ITS NATURAL GAS COMPANY TAX VALUE
LOSS, WHICH
IS THE SUM OF THE AMOUNTS DESCRIBED IN DIVISIONS (E)(1) AND
(2) OF THIS SECTION:
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED
IN DIVISION (E)(1)(b) FROM THE AMOUNT DESCRIBED IN
DIVISION
(E)(1)(a) OF THIS SECTION.
(a) THE VALUE OF ALL NATURAL GAS COMPANY TANGIBLE PERSONAL
PROPERTY, OTHER THAN PROPERTY DESCRIBED IN DIVISION (E)(2) OF THIS
SECTION, AS ASSESSED BY THE TAX COMMISSIONER FOR TAX YEAR 1999 ON A
PRELIMINARY ASSESSMENT, OR AN
AMENDED PRELIMINARY ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 2000,
AND APPORTIONED TO THE TAXING DISTRICT FOR TAX YEAR 1999;
(b) THE VALUE OF ALL NATURAL GAS COMPANY TANGIBLE PERSONAL
PROPERTY, OTHER THAN PROPERTY DESCRIBED IN DIVISION (E)(2) OF THIS
SECTION, AS ASSESSED BY THE TAX COMMISSIONER FOR TAX YEAR 1999 HAD
THE PROPERTY BEEN APPORTIONED TO THE TAXING DISTRICT FOR TAX YEAR
2001, AND ASSESSED AT THE RATES IN EFFECT FOR TAX YEAR 2001.
(2) THE DIFFERENCE IN THE VALUE OF CURRENT GAS OBTAINED BY
SUBTRACTING THE AMOUNT DESCRIBED IN DIVISION
(E)(2)(b) FROM THE
AMOUNT DESCRIBED IN DIVISION (E)(2)(a) OF THIS
SECTION.
(a) THE THREE-YEAR AVERAGE ASSESSED VALUE OF CURRENT GAS AS
ASSESSED BY THE TAX COMMISSIONER FOR TAX YEARS 1997, 1998, AND 1999 ON A
PRELIMINARY ASSESSMENT, OR AN AMENDED
PRELIMINARY ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 2001, AND AS
APPORTIONED IN THE TAXING DISTRICT FOR THOSE RESPECTIVE YEARS;
(b) THE THREE-YEAR AVERAGE ASSESSED VALUE FROM CURRENT GAS UNDER
DIVISION (E)(2)(a) OF THIS SECTION FOR TAX YEARS
1997, 1998, AND
1999, AS REFLECTED IN THE PRELIMINARY ASSESSMENT, USING AN ASSESSMENT
RATE OF TWENTY-FIVE PER CENT.
(F)
The tax commissioner may request that NATURAL GAS COMPANIES,
electric companies, and rural
electric companies file a report to help determine the tax value loss
under division (C) DIVISIONS (D) AND (E) of
this section. The report shall be filed
within thirty days of the commissioner's request. A company that fails to
file the report or does not timely file the
report is subject to the penalty in section 5727.60 of the Revised
Code.
The tax commissioner shall certify to the department of education the tax
value loss determined under this division for each school district and joint
vocational school district.
(D)(G) Not later than January 1, 2002, the tax commissioner
shall
determine for each school district, joint vocational school district, and
local taxing unit its fixed-rate levy loss, which is THE SUM OF its
ELECTRIC COMPANY tax value loss
multiplied by
the tax rate in effect in tax year 1998 for fixed-rate levies AND ITS
NATURAL GAS COMPANY TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN EFFECT IN TAX
YEAR 1999 FOR FIXED-RATE LEVIES.
(E)(H) Not later than January 1, 2002, the tax commissioner
shall
determine for each school district, joint vocational school district, and
local taxing unit its fixed-sum levy loss, which is
the amount obtained by subtracting the amount described in
division (E)(H)(2) of this section from the amount described
in
division (E)(H)(1) of this section:
(1) The SUM OF THE ELECTRIC COMPANY tax value loss multiplied by the
tax rate in effect in
tax year 1998, AND THE NATURAL GAS COMPANY TAX VALUE LOSS MULTIPLIED
BY THE TAX RATE IN EFFECT IN TAX YEAR 1999, for fixed-sum levies
for all taxing districts within
each school district, joint vocational school district, and local
taxing unit. For the years 2002 through 2006, this computation shall
include school district emergency levies that existed in 1998
IN THE CASE
OF THE ELECTRIC COMPANY TAX VALUE LOSS, AND 1999 IN THE CASE OF THE NATURAL
GAS COMPANY TAX VALUE LOSS, and
all other fixed-sum levies that existed in 1998 IN THE CASE OF THE ELECTRIC
COMPANY TAX VALUE LOSS AND 1999 IN THE CASE OF THE NATURAL GAS COMPANY TAX
VALUE LOSS
and continue to be
charged in the tax year preceding the distribution year. For the years 2007
through 2016 in the case of school district emergency levies, and for all
years after 2006 in the case of all other fixed-sum levies, this
computation shall exclude all
fixed-sum levies that
existed in 1998 IN THE CASE OF THE ELECTRIC COMPANY TAX VALUE LOSS AND 1999
IN THE CASE OF THE NATURAL GAS COMPANY TAX VALUE LOSS, but are no
longer in effect in the tax year
preceding the distribution year. For the purposes of this section, an
emergency levy that existed in 1998 IN THE CASE OF THE ELECTRIC COMPANY TAX
VALUE LOSS, AND 1999 IN THE CASE OF THE NATURAL GAS COMPANY TAX VALUE
LOSS, continues to exist in a year beginning on
or after January 1, 2007, but before January 1, 2017, if, in
that year, the board of education levies a school district emergency levy for
an annual sum at least equal to the annual sum levied by the board in tax year
1998 OR 1999, RESPECTIVELY, less the amount of the payment
certified under
this division for 2002.
(2) The total taxable value in tax year 1998 IN THE CASE OF THE ELECTRIC
COMPANY TAX VALUE LOSS AND 1999 IN THE CASE OF THE NATURAL GAS COMPANY TAX
VALUE LOSS in each school
district, joint vocational school district, and local taxing unit
multiplied by one-fourth of one mill.
If the computation AMOUNT COMPUTED under division
(E)(H) of this section for any
school district, joint vocational school district, or local taxing unit is
greater than zero, the one-fourth of one mill that is
subtracted AMOUNT SHALL EQUAL THE FIXED-SUM LEVY LOSS REIMBURSED
pursuant to division (E) of section 5727.85 of the
Revised Code or division (A)(2)
of section 5727.86 of the Revised Code, AND THE ONE-FOURTH OF ONE
MILL THAT IS SUBTRACTED UNDER DIVISION (H)(2) OF THIS SECTION
shall be apportioned
among
all contributing fixed-sum levies in the proportion of each levy to the sum of
all fixed-sum levies within each school district,
joint vocational school district, or local taxing unit.
(F)(I) Notwithstanding divisions (C), (D), and
(E), (G), AND (H) of this section, in
computing the tax value loss, fixed-rate levy
loss, and fixed-sum levy loss, the tax commissioner shall use the greater of
the 1998 tax rate or the 1999 tax rate IN THE CASE OF LEVY LOSSES
ASSOCIATED WITH THE ELECTRIC COMPANY TAX VALUE LOSS, but the 1999 tax rate
shall not
include for this purpose any tax levy approved by the voters after
June 30, 1999, AND THE TAX COMMISSIONER SHALL USE THE GREATER OF THE
1999 OR THE 2000 TAX RATE IN THE CASE OF LEVY LOSSES ASSOCIATED WITH THE
NATURAL GAS COMPANY TAX VALUE LOSS, BUT THE 2000 TAX RATE SHALL NOT INCLUDE
FOR THIS PURPOSE ANY TAX LEVY APPROVED BY THE VOTERS AFTER MARCH 7,
2000.
(J) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER
SHALL CERTIFY TO THE DEPARTMENT OF EDUCATION THE TAX VALUE LOSS DETERMINED
UNDER DIVISIONS (D) AND (E) OF THIS SECTION FOR EACH TAXING
DISTRICT.
Sec. 5727.85. (A) By the thirty-first day of July of
each year, beginning in 2002 and
ending in 2016, the department of education shall determine the following for
each school district eligible for payment under division
(C) of this section:
(1) The state education aid offset, which is the difference
obtained by subtracting the amount described in division
(A)(1)(b)
of this section from the amount described in division
(A)(1)(a) of
this section:
(a) The state education aid computed for the school district for
the current fiscal year on the basis of the adjusted total taxable
value;
(b) The state education aid that would be computed for the school
district for the current fiscal year if the district's adjusted total taxable value included the tax
value loss for all taxing districts in the school district.
(2) The difference obtained by subtracting the state education
aid offset determined under division (A)(1) of this section from
the fixed-rate levy loss determined under division (D)(G) of
section
5727.84 of the Revised Code for all taxing districts in each
school district. The department of education shall certify the amount so
determined to the director of budget and management.
(B) Not later than the thirty-first day of October of
the years 2006 through 2016, the
department of education shall determine all of the following for each
school district:
(1) The amount obtained by subtracting the district's state
education aid computed for fiscal year 2002 from the district's state
education aid computed for the current fiscal year;
(2) The inflation-adjusted property tax loss. The
inflation-adjusted property tax loss equals the fixed-rate levy loss
determined
under division (D)(G) of section 5727.84 of the Revised
Code for all taxing districts in each school district plus the
product obtained by multiplying that loss by the cumulative percentage
increase in the consumer price index from January 1, 2002, to the
thirtieth day of June of the current year.
(3) The difference obtained by subtracting the amount computed
under division (B)(1) from the amount of the inflation-adjusted
property tax loss. If this difference is zero or a negative number, no
further payments shall be made under division (C) of this
section to the school district from the school district property tax
replacement fund. If
the difference is greater than zero, the department of education shall certify
the amount
calculated in division (A)(2) of this section to the director of
budget and management not later than the thirty-first day of December
of each year,
beginning in 2006 and ending in 2016.
(C) For all taxing districts in each school district, the
director of budget and management shall pay from the school district property
tax replacement fund to the county undivided
income tax fund in the proper county treasury all of the
following:
(1) In February 2002, one-half of the fixed-rate levy loss
certified under division (D)(G) of section 5727.84 of the
Revised
Code on or before the day prescribed for
the settlement under division (A) of section 321.24 of the
Revised Code.
(2) From August 2002 through August 2006, one-half of
the
amount certified for that fiscal year under division (A)(2) of
this section on or before each of the days prescribed for the settlements
under divisions (A) and (C) of section 321.24 of the
Revised Code.
(3) From February 2007 through August 2016, one-half of
the
amount certified for that calendar year under division (B)(3) of
this section on or before each of the days prescribed for the settlements
under divisions (A) and (C) of section 321.24 of the
Revised Code.
The county treasurer shall distribute amounts paid under divisions
(C)(1), (2), and (3) of this section to the proper school district
as if they had been levied and collected as taxes, and the school district
shall apportion the amounts so received among
its funds in the same proportions as if those amounts had been
levied and collected as taxes.
(D) Not later than January 1, 2002, for all taxing
districts in
each joint vocational school district, the tax commissioner shall certify to
the director of budget and management the fixed-rate levy loss determined
under
division (D)(G) of section 5727.84 of the Revised
Code. From
February 2002 to August 2016, the director shall pay from
the school district property tax replacement fund to the county
undivided income tax fund in the proper county treasury, one-half
of the fixed-rate levy loss so certified for each year on or
before each of the days prescribed for the settlements under
divisions (A) and (C) of section 321.24 of the
Revised Code. The
county treasurer shall distribute such amounts to the proper joint vocational school district as if they had been levied and collected as taxes, and the joint vocational school district shall
apportion the amounts so received among its funds in the same
proportions as if those amounts had been levied and collected as
taxes.
(E)(1) Not later than January 1, 2002, for each fixed-sum levy levied
by each school district
or joint vocational school district and for each year for
which a certification DETERMINATION is made under division
(E)(H) of section 5727.84
of the Revised Code THAT A FIXED-SUM LEVY LOSS IS TO BE REIMBURSED, the
tax commissioner shall certify to the director of
budget and
management the fixed-sum levy loss determined under
that division. The
certification shall cover a time period sufficient to include all fixed-sum
levies in effect in 1998 to June 30, 1999,
for which the tax commissioner made such a
determination. The director shall pay from the
school district property tax replacement fund to the county
undivided income tax fund in the proper county treasury one-half
of the fixed-sum levy loss so certified for each year on or before
each of the days prescribed for the settlements under divisions
(A) and (C) of section 321.24 of
the Revised Code. The county treasurer shall distribute the
amounts to the proper school district or joint vocational school district as
if they had been levied and collected as taxes, and the
district shall apportion the amounts so received among its funds
in the same proportions as if those amounts had been levied and
collected as taxes. No payments shall be made under this division
once all fixed-sum levies in effect in 1998 to June 30, 1999, are no
longer in effect.
(2) Beginning in 2003, by the thirty-first day of
January of each year, the tax commissioner shall review the
certification originally made
under division (E)(1) of this section. If the commissioner
determines that a fixed-sum levy that had been scheduled to be reimbursed in
the current
year has expired, a revised certification for that and all
subsequent years shall be made to the director of budget and
management.
(F) By August 5, 2002, the tax commissioner shall
estimate the
amount of money in the school district property tax replacement fund in
excess of the amount necessary to make payments in that month under
divisions (C), (D), and (E) of this section.
Notwithstanding division (C) of this section, the department of
education, in consultation with the tax commissioner and from those excess
funds, may pay any
school district four and one-half times the amount certified under
division (A)(2) of this section. Payments shall be made in order
from the smallest annual loss to the largest annual loss. A payment made
under this division shall
be in lieu of the payment to be made in August 2002 under
division (C)(2) of this section. No payments shall be made in the
manner established in this division to any school district with annual losses
from permanent
improvement fixed-rate levies in excess of twenty thousand
dollars, or annual losses from any other fixed-rate levies in
excess of twenty thousand dollars. A school district receiving a
payment under this division is no longer entitled to any further
payments under division (C) of this section.
(G) On the thirty-first day of July of 2003, 2004, 2005,
and 2006, and on the
thirty-first day of January and July of 2007 and each year
thereafter, if the amount credited to the school district property
tax replacement fund exceeds the amount needed to make payments
from the fund under divisions (C), (D), and (E) of
this section in
the following month, the director of budget and management shall
distribute
the excess among school districts and joint vocational school
districts. The
amount
distributed to each district shall bear the same proportion to the
excess remaining in the fund as the ADM of the district bears to
the ADM of all of the districts. For the purpose of this
division, "ADM" means the formula ADM in the case of a
school
district, and the average daily membership reported under section
3317.03
of the Revised Code in the case of a joint vocational
school district.
If, in the opinion of the director of budget and management, the
excess remaining in the school district property tax replacement
fund in any year is not sufficient to warrant distribution under
this division, the excess shall remain to the credit of the fund.
Amounts received by a school district or joint vocational school
district under this division shall be used exclusively for capital
improvements.
(H) If the total amount in the school district property tax
replacement fund is insufficient to make all payments under
divisions (C), (D), and (E) of this section, the payments required
under division (E) of this section shall be made first in their
entirety. After all payments are made under division (E) of this
section, payments under divisions (C) and (D) of this section
shall be made from the balance of money available in the
proportion of each school district's or joint vocational school
district's payment amount to the total amount of payments under
divisions (C) and (D) of this section.
(I) If all or a part of the territory of a school district or
joint vocational school district is merged with or transferred to
another district, the tax commissioner shall adjust the payments
made under this section to each of the districts in proportion to
the tax value loss apportioned to the merged or transferred
territory.
(J) There is hereby created the electric PUBLIC UTILITY
property tax study
committee, effective January 1, 2011. The committee shall consist
of the following seven members: the tax commissioner, three
members of the senate appointed by the president of the senate,
and three members of the house of representatives appointed by the
speaker of the house of representatives. The appointments shall
be made not later than January 31, 2011. The tax commissioner shall be the
chairperson of the committee.
The committee shall study the extent to which each school district
or joint vocational school district has been compensated, under
sections 5727.84 and 5727.85 of the Revised Code as enacted by
Substitute Senate Bill No. 3 of the 123rd general assembly and any
subsequent acts, for the property tax loss caused by the reduction
in the assessment rates for NATURAL GAS, electric, and
rural electric company
tangible personal property. Not later than June 30, 2011, the
committee shall issue a report of its findings, including any
recommendations for providing additional compensation for the
property tax loss or regarding remedial legislation, to the
president of the senate and the speaker of the house of
representatives, at which time the committee shall cease to exist.
The department of taxation and department of education shall
provide such information and assistance as is required for the
committee to carry out its duties.
Sec. 5727.86. (A) Not later than January 1, 2002, the tax
commissioner shall certify to the director of budget and
management, for all taxing districts in each local taxing unit,
the fixed-rate levy loss determined under division (D)(G), and
the
fixed-sum levy loss determined under division (E)(H), of
section
5727.84 of the Revised Code. Based on that certification, the
director shall compute the payments to be made to each local
taxing unit for each year according to divisions (A)(1), (2), and
(3) and division (E) of this section, and shall distribute the
payments in the manner prescribed by division (C) of this section.
The certification of the fixed-sum levy loss shall cover a period
of time PERIOD sufficient to include all fixed-sum levies in
effect in
1998 to June 30, 1999, until they are no longer in effect FOR WHICH THE
TAX COMMISSIONER DETERMINED, PURSUANT TO DIVISION (H) OF SECTION
5727.84 OF THE REVISED CODE, THAT A FIXED-SUM LEVY LOSS IS
TO BE REIMBURSED.
(1) Except as provided in division (A)(3) of this section, for
fixed-rate levy losses determined under division (D)(G) of
section
5727.84 of the Revised Code, payments shall be made in each of the
following years at the following percentage of the fixed-rate levy
loss certified under division (A) of this section:
2002 | 100% |
2003 | 100% |
2004 | 100% |
2005 | 100% |
2006 | 100% |
2007 | 80% |
2008 | 80% |
2009 | 80% |
2010 | 80% |
2011 | 80% |
2012 | 66.7% |
2013 | 53.4% |
2014 | 40.1% |
2015 | 26.8% |
2016 | 13.5% |
2017 and thereafter | 0% |
(2) For fixed-sum levy losses determined under division
(E)(H) of
section 5727.84 of the Revised Code, PAYMENTS SHALL BE MADE IN THE AMOUNT
OF one hundred per cent of the
fixed-sum levy loss certified under division (A) of this section
for payments required to be made in 2002 and thereafter.
(3) A local taxing unit in a county of less than two hundred
fifty square miles that receives eighty per cent or more of its
combined general fund and bond retirement fund revenues from
property taxes and rollbacks based on 1997 actual revenues as
presented in its 1999 tax budget, and in which electric companies
and rural electric companies comprise over twenty per cent of its
property valuation, shall receive one hundred per cent of its
fixed-rate levy losses FROM ELECTRIC COMPANY TAX VALUE LOSSES certified
under division (A) of this
section in years 2002 to 2016.
(B) Beginning in 2003, by the thirty-first day of January of each
year, the tax commissioner shall review the certification
originally made under division (A) of this section of the
fixed-sum levy loss determined under division (E)(H) of
section
5727.84 of the Revised Code. If the commissioner determines that
a fixed-sum levy that had been scheduled to be reimbursed in the
current year has expired, a revised certification for that and all
subsequent years shall be made.
(C) Payments to local taxing units required to be made under
divisions (A) and (E) of this section shall be paid from the local
government property tax replacement fund to the county undivided
income tax fund in the proper county treasury. One-half of the
amount certified under those divisions shall be paid on or before
each of the days prescribed for the settlements under divisions
(A) and (C) of section 321.24 of the Revised Code. The county
treasurer shall distribute amounts paid under division (A) of this
section to the proper local taxing unit as if they had been levied
and collected as taxes, and the local taxing unit shall apportion
the amounts so received among its funds in the same proportions as
if those amounts had been levied and collected as taxes. Amounts
distributed under division (E) of this section shall be credited
to the general fund of the local taxing unit that receives them.
(D) By February 5, 2002, the tax commissioner shall estimate the
amount of money in the local government property tax replacement
fund in excess of the amount necessary to make payments in that
month under division (C) of this section. Notwithstanding
division (A) of this section, the tax commissioner may pay any
local taxing unit, from those excess funds, nine and four-tenths
times the amount computed for 2002 under division (A)(1) of this
section. A payment made under this division shall be in lieu of
the payment to be made in February 2002 under division (A)(1) of
this section. A local taxing unit receiving a payment under this
division will no longer be entitled to any further payments under
division (A)(1) of this section.
A PAYMENT MADE UNDER THIS DIVISION SHALL BE PAID FROM THE LOCAL
GOVERNMENT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED INCOME
TAX FUND IN THE PROPER COUNTY TREASURY. THE COUNTY TREASURER
SHALL DISTRIBUTE THE PAYMENT TO THE PROPER LOCAL TAXING UNIT AS IF
IT HAD BEEN LEVIED AND COLLECTED AS TAXES, AND THE LOCAL TAXING
UNIT SHALL APPORTION THE AMOUNTS SO RECEIVED AMONG ITS FUNDS IN
THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED AND
COLLECTED AS TAXES.
(E) On the thirty-first day of July of 2002, 2003, 2004, 2005,
and 2006, and on the thirty-first day of January and July of 2007
and each year thereafter, if the amount credited to the local
government property tax replacement fund exceeds the amount needed
to be distributed from the fund under division (A) of this section
in the following month, the director of budget and management
shall distribute the excess to each county as follows:
(1) One-half shall be distributed to each county in proportion to
each county's population.
(2) One-half shall be distributed to each county in the
proportion that the amounts determined under divisions (D)(G)
and (E)(H)
of section 5727.84 of the Revised Code for all LOCAL taxing
districts UNITS in
the county is of the total amounts so determined for all LOCAL taxing
districts UNITS in the state.
The amounts distributed to each county under this division shall
be distributed by the county budget commission to each local
taxing unit in the county in the proportion that the unit's
current taxes charged and payable are of the total current taxes
charged and payable of all the local taxing units in the county.
As used in this division, "current taxes charged and payable"
means the taxes charged and payable as most recently determined
for local taxing units in the county.
If, in the opinion of the director of budget and management, the
excess remaining in the local government property tax replacement
fund in any year is not sufficient to warrant distribution under
this division, the excess shall remain to the credit of the fund.
(F) If the total amount in the local government property tax
replacement fund is insufficient to make all payments under
division (C) of this section, the payments required under division
(A)(2) of this section shall be made first in their entirety.
After all such payments are made, payments under divisions (A)(1)
and (3) of this section shall be made from the balance of money
available in the proportion of each local taxing unit's payment
amount to the total amount of all payments to be made under
divisions (A)(1) and (3) of this section.
(G) If all or a part of the territories of two or more local
taxing units are merged, or unincorporated territory of a township
is annexed by a municipal corporation, the tax commissioner shall
adjust the payments made under this section to each of the local
taxing units in proportion to the tax value loss apportioned to
the merged or annexed territory, or as otherwise provided by a
written agreement between the legislative authorities of the local
taxing units certified to the tax commissioner not later than the
first day of June of the calendar year in which the payment is to
be made.
Sec. 5727.87. (A) As used in this section:
(1) "Administrative fees" means the dollar percentages allowed by
the county auditor for services or by the county treasurer as
fees, or paid to the credit of the real estate assessment fund,
under divisions (A) and (B) of section 319.54 and division (A) of
section 321.26 of the Revised Code.
(2) "Administrative fee loss" means a county's loss of
administrative fees due to its tax value loss, determined as
follows:
(a) For purposes of the determination made under division (B) of
this section in the years 2002 through 2006, the administrative
fee loss shall be computed by multiplying the amounts determined
for all taxing districts in the county under divisions (D)(G)
and (E)(H)
of section 5727.84 of the Revised Code by nine thousand six
hundred fifty-nine ten-thousandths of a per cent, if total taxes
collected in the county in tax year 1998 exceeded one hundred
fifty million dollars, or one and one thousand one hundred
fifty-nine ten-thousandths of a per cent, if total taxes collected
in the county in tax year 1998 were one hundred fifty million
dollars or less;
(b) For purposes of the determination under division (B) of this
section in the years 2007 through 2011, the administrative fee
loss shall be determined by subtracting from the dollar amount of
administrative fees collected in the county in tax year 1998, the
dollar amount of administrative fees collected in the county in
the current calendar year.
(B) Not later than the first day of June of 2002 through 2011,
the county auditor shall determine the administrative fee loss for
the county and certify it to the county budget commission.
Notwithstanding divisions (C), (D), and (E) of section 5727.85 and
division (C) of section 5727.86 of the Revised Code, prior to
distribution by the county treasurer of the payments provided
under those divisions, the county budget commission shall deduct
from those payments the amount of the administrative fee loss
certified by the county auditor, as follows:
(1) Seventy per cent of the administrative fee loss shall be
deducted from the payments provided under divisions (C), (D), and
(E) of section 5727.85 of the Revised Code.
(2) Thirty per cent of the administrative fee loss shall be
deducted from the payments provided under division (C) of section
5727.86 of the Revised Code.
(C) On or before each of the days prescribed for the settlements
under divisions (A) and (C) of section 321.24 of the Revised Code
in the years 2002 through 2011, the county budget commission shall
pay one-half of the amount of the administrative fee loss to the
county auditor, county treasurer, or real estate assessment fund
as if the amount had been allowed as administrative fees, and
shall deposit the amount in the same funds as if allowed as
administrative fees.
After payment of the administrative fee loss on or before August
10, 2011, all payments under this section shall cease.
Sec. 5727.88. The tax commissioner shall administer
sections 5727.80 to 5727.95 of the
Revised
Code and may adopt such rules
as are necessary to administer those sections.
Upon request of the tax commissioner, the public utilities commission
shall assist the tax commissioner by providing information
regarding any NATURAL GAS DISTRIBUTION COMPANY OR electric distribution
company that is subject to
regulation by the commission.
Sec. 5727.89. (A) The tax commissioner may make
an assessment, based on any information in the commissioner's
possession, against any NATURAL GAS DISTRIBUTION COMPANY,
electric distribution company, self-assessing
purchaser, or qualified end user
that fails
to file a return or pay any tax, interest, or additional charge
as required by sections 5727.80 to 5727.95 of the
Revised Code.
When information in the possession of the tax commissioner
indicates that a person liable for the
tax imposed by section 5727.81 OR 5727.811 of the
Revised
Code has not paid the full
amount of tax due, the commissioner may audit a representative
sample of the person's business and may issue an assessment
based on the audit. The commissioner shall give the person
assessed written notice of the assessment by personal service or
certified mail.
The tax commissioner may issue an assessment for which the tax
imposed by section 5727.81 OR 5727.811 of the Revised Code was
due and
unpaid
on the date the person was informed by an agent of the tax
commissioner of an investigation or audit of the person. Any
payment of the tax for the period covered by the assessment, after
the person is so informed, shall be credited against the
assessment.
A penalty of fifteen per cent shall be added to all
amounts assessed under this section. The commissioner may adopt
rules providing for the remission of penalties.
(B) Unless the party
assessed files with the tax commissioner within thirty days
after service of the notice of assessment, either personally or
by certified mail, a written petition for reassessment signed by
the party assessed or the party's authorized agent having
knowledge of the facts, the assessment is final and the amount
of the assessment is due and payable from the party assessed to
the treasurer of state. The petition shall indicate the
objections of the party assessed, but additional objections may
be raised in writing prior to the date shown on the final
determination of the tax commissioner. The commissioner shall
grant the petitioner a hearing on the petition, unless waived by
the petitioner.
(C) The commissioner may
make any correction to the assessment that the commissioner
finds proper and shall issue a final determination thereon. The
commissioner shall serve a copy of the final determination on
the petitioner either by personal service or by certified mail,
and the commissioner's decision in the matter is final, subject
to appeal under section 5717.02 of the
Revised Code.
(D) After an assessment
becomes final, if any portion of the assessment, including
accrued interest, remains unpaid, a certified copy of the
commissioner's entry making the assessment final may be filed in
the office of the clerk of the court of common pleas in the
county in which the party assessed resides or in which the
party's business is conducted. If the party assessed maintains
no place of business in this state and is not
a resident of this state, the certified copy of the entry
may be filed in the office of the clerk of the court of common
pleas of Franklin
county.
The clerk, immediately upon the filing of the entry, shall
enter a judgment for the state against the person assessed in
the amount shown on the entry. The judgment may be filed by the
clerk in a loose-leaf book entitled "special judgments for the
kilowatt-hour tax DISTRIBUTION EXCISE TAXES," and shall have the
same effect as other
judgments. Execution shall issue upon the judgment at the request
of the tax commissioner, and all laws applicable to sales on
execution shall apply to sales made under the judgment.
The portion of the assessment not paid within thirty days
after the day the assessment was issued shall bear interest at
the rate per annum prescribed by section 5703.47 of the
Revised
Code from the day the tax
commissioner issues the assessment until the day the assessment
is paid. Interest shall be paid in the same manner as the tax
and may be collected by the issuance of an assessment under this
section.
(E) If the tax
commissioner believes that collection of the tax imposed by
section 5727.81 OR 5727.811 of the Revised
Code will be jeopardized unless
proceedings to collect or secure collection of the tax are
instituted without delay, the commissioner may issue a jeopardy
assessment against the electric distribution company, self-assessing
purchaser, or qualified end user PERSON
liable for
the tax. Upon issuance of the jeopardy assessment, the
commissioner immediately shall file an entry with the clerk of
the court of common pleas in the manner prescribed by division
(D) of this section. Notice of
the jeopardy assessment shall be served on the party assessed or
the party's legal representative within five days of the filing
of the entry with the clerk. The total amount assessed is
immediately due and payable, unless the party assessed files a
petition for reassessment in accordance with division
(B) of this section and
provides security in a form satisfactory to the commissioner and
in an amount sufficient to satisfy the unpaid balance of the
assessment. Full or partial payment of the assessment does not
prejudice the commissioner's consideration of the petition for
reassessment.
(F) All money collected
by the tax commissioner under this section shall be paid to the
treasurer of state, and when paid shall be considered as revenue
arising from the tax TAXES imposed by section
SECTIONS 5727.81 AND 5727.811 of the
Revised Code.
Sec. 5727.90. No assessment of the tax imposed by section
5727.81 OR 5727.811 of the Revised
Code shall be made by the tax
commissioner more than four years after the date on which the
return for the period assessed was due or filed, whichever date
is later. This section does not bar an assessment when any of
the following occur:
(A) The party assessed
failed to file a return as required by section 5727.82 of the
Revised Code;
(B) The party assessed
knowingly filed a false or fraudulent return;
(C) The party assessed
and the tax commissioner waived in writing the time
limitation.
Sec. 5727.91. (A) The
treasurer of state shall refund the amount of tax paid under
section 5727.81 OR 5727.811 of the Revised
Code that was paid illegally or
erroneously, or paid on an illegal or erroneous assessment. An
A NATURAL GAS DISTRIBUTION COMPANY, AN electric distribution
company, or
A self-assessing purchaser shall file an
application for a refund with the tax commissioner on a form prescribed by the
commissioner, within four years of the illegal or erroneous
payment of the tax.
Upon the filing of the application, the commissioner shall
determine the amount of refund due and certify that amount to
the director of budget and management and the treasurer of state
for payment from the tax refund fund under section 5703.052 of
the Revised Code. If the application for
refund is for taxes paid on an illegal or erroneous assessment,
the tax commissioner shall include in the certified amount
interest calculated at the rate per annum under section 5703.47
of the Revised Code from the date of
overpayment to the date of the commissioner's
certification.
(B) If A NATURAL GAS DISTRIBUTION COMPANY OR an electric
distribution company entitled to a refund of taxes under this
section is indebted to the state for any tax or fee administered
by the tax commissioner that is paid to the state
or any charge, penalty,
or interest arising from such a tax or fee, the amount
refundable may be applied in satisfaction of the debt. If the
amount refundable is less than the amount of the debt, it may be
applied in partial satisfaction of the debt. If the amount
refundable is greater than the amount of the debt, the amount
remaining after satisfaction of the debt shall be refunded. If
the NATURAL GAS DISTRIBUTION COMPANY OR electric distribution company
has more than one such debt,
any debt subject to section 5739.33 or division
(G) of section 5747.07 of the
Revised Code shall be satisfied first.
This section applies only to debts that have become
final.
(C)(1) Any electric
distribution company that can substantiate to the tax
commissioner that the tax imposed by section 5727.81 of the
Revised Code was paid on electricity distributed via wires and consumed at a
location outside of this state may
claim a refund in the manner and within the time period
prescribed in division (A) of
this section.
(2) ANY NATURAL GAS DISTRIBUTION COMPANY THAT CAN SUBSTANTIATE TO
THE TAX COMMISSIONER THAT THE TAX IMPOSED BY SECTION 5727.811 of the Revised Code WAS PAID ON
NATURAL GAS DISTRIBUTED VIA ITS FACILITIES AND CONSUMED AT A LOCATION OUTSIDE
OF THIS STATE MAY CLAIM A REFUND IN THE MANNER AND WITHIN THE TIME PERIOD
PRESCRIBED IN DIVISION (A) OF THIS SECTION.
(D) Before a refund is issued under this section, A NATURAL GAS COMPANY
OR an electric
distribution company shall certify, as prescribed by the tax commissioner,
that it either did not include the tax imposed by section 5727.81 of the
Revised Code IN THE CASE OF AN ELECTRIC DISTRIBUTION COMPANY, OR THE TAX
IMPOSED BY SECTION 5727.811 of the Revised Code IN THE CASE OF A NATURAL GAS DISTRIBUTION
COMPANY, in its distribution charge to an electric
ITS customer upon which a refund of the tax is claimed, or it has
refunded or
credited to the electric customer the excess distribution charge
related to
the tax that was erroneously included in the electric customer's
distribution
charge.
Sec. 5727.92. Every person liable
for the tax imposed by section 5727.81 OR 5727.811 of the
Revised
Code shall keep complete and
accurate records of all electric AND NATURAL GAS distributions and
other records as required by the tax commissioner. The records shall
be preserved for four years after the return for the taxes to
which the records pertain is due or filed, whichever is later.
The records shall be available for inspection by
the tax commissioner or the commissioner's authorized agent,
upon request of the commissioner or such agent.
Sec. 5727.93. (A) No
person shall distribute electricity OR NATURAL GAS to a meter of an end
user in
this state who is not registered with the tax commissioner as an
electric distribution company OR A NATURAL GAS DISTRIBUTION COMPANY.
(B) Each person required
to register under division (A)
of this section shall register prior to distributing electricity OR NATURAL
GAS
to a meter of an end user in this state. The tax commissioner
shall prescribe the form of the registration application. The
commissioner shall assign an identification number to each
registration and notify the registrant of that number. The
registration shall remain in effect until canceled in writing by
the registrant upon the cessation of distributing electricity OR NATURAL
GAS to
a meter of an end user in this state or until such registration
is denied, revoked, or canceled by the commissioner. A
registration may be revoked or canceled by the tax commissioner
as provided by Chapter 119. of
the Revised
Code, for failure of an
electric distribution company to pay the tax imposed by section
5727.81 of the Revised Code, FAILURE OF A NATURAL GAS DISTRIBUTION
COMPANY TO PAY THE TAX IMPOSED BY SECTION 5727.811 of the Revised Code, or
FAILURE OF AN ELECTRIC DISTRIBUTION COMPANY OR A NATURAL GAS DISTRIBUTION
COMPANY to
comply with sections
5727.80 AND 5727.82 to 5727.95 of the Revised
Code. An electric distribution A
company whose registration is denied may petition for a hearing,
in accordance with the procedures set forth in divisions
(B) and (C) of section 5727.89 of the
Revised Code, not later than thirty
days after receiving the denial, and the final determination is
subject to appeal under section 5717.02 of the Revised
Code.
(C) The tax commissioner
shall maintain a list of the electric distribution companies
registered under this section. The list shall contain the name
and address of each company registered by the commissioner. The
list and subsequent updates of it shall be open to public inspection.
Sec. 5727.94. Each electric distribution company required
to pay the tax imposed by section 5727.81 of the Revised
Code AND EACH NATURAL GAS DISTRIBUTION COMPANY REQUIRED TO PAY THE TAX
IMPOSED BY SECTION 5727.811 of the Revised Code shall provide to its
customers in this state the statement required by section
4933.33 of the Revised
Code.
Sec. 5727.95. (A) No NATURAL GAS DISTRIBUTION COMPANY,
electric distribution company, or
self-assessing purchaser shall fail to file any return or
report required to be filed pursuant to section 5727.82 of the
Revised
Code, or file or cause to be
filed any incomplete, false, or fraudulent return, report, or
statement, or aid or abet another in the filing of any false or
fraudulent return, report, or statement.
(B) No person shall
distribute NATURAL GAS OR electricity to a meter of an end user in this
state
without holding a valid registration issued under section
5727.93 of the Revised
Code.
Section 2. That existing sections 3709.28, 4933.33, 5703.052,
5727.11, 5727.111, 5727.33, 5727.80, 5727.81, 5727.82,
5727.83, 5727.84, 5727.85, 5727.86, 5727.87, 5727.88, 5727.89,
5727.90, 5727.91, 5727.92, 5727.93, 5727.94, and 5727.95 of the
Revised Code are hereby repealed.
Section 3. That Sections 3 and 4 of Am. Sub. S.B. 3 of the 123rd
General Assembly be amended to read as follows:
"Sec. 3. Sections 5727.111 and SECTION 5727.15 of the Revised
Code, as amended by
this act AM. SUB. S.B. 3 OF THE
123rd GENERAL ASSEMBLY, shall first
apply to tax year 2001.
Sec. 4. Sections 4933.33, 5727.30, AND 5727.32, and 5727.33 of
the
Revised Code, as amended by this act AM. SUB.
S.B. 3 OF THE 123rd GENERAL
ASSEMBLY, shall first apply to the excise tax
assessed by the Tax Commissioner for tax year 2002."
Section 4. That existing Sections 3 and 4 of Am. Sub. S.B. 3 of
the 123rd General Assembly are hereby repealed.
Section 5. That Section 174 of Am. Sub. H.B. 283 of the 123rd
General Assembly be amended to read as follows:
"Sec. 174. Sections 122.15, 122.152, 129.55, 129.63, 129.73,
718.01, 1555.12, 5528.36, 5703.052, 5703.053, 5727.01, 5727.30,
5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 5727.42, 5727.48,
5727.50, 5727.60, and 5733.16 of the Revised Code, as amended by
this act AM. SUB. H.B. 283 OF
THE 123rd GENERAL ASSEMBLY, first
apply to the excise tax year beginning May 1, 2000. Sections
5727.24, 5727.25, 5727.26, 5727.27, 5727.28, and 5727.29 of the Revised Code,
as enacted by this act AM. SUB.
H.B. 283 OF THE 123rd GENERAL
ASSEMBLY, first apply to gross receipts derived from taxable
activities that occur after April 30, 2000. Natural gas
companies and combined
electric and gas companies must file an annual statement pursuant
to section 5727.31 of the Revised Code on or before August 1,
2000, and the Tax Commissioner shall issue an assessment pursuant
to section 5727.38 of the Revised Code on or before the first
Monday in November for the period ending April 30, 2000. Such
companies shall have made and shall make payments of the excise tax on gross
receipts
imposed by section 5727.30 of the Revised Code on or before
October 15, 1999, March 1, 2000, and June 1, 2000, in accordance
with section 5727.31 of the Revised Code. Division (D) of section 5727.42 of
the Revised Code does not apply to the portion of any assessment issued by the
Tax Commissioner for the period ending April 30, 2000, that reflects the
excise tax owed on those gross receipts from operating as a natural gas
company that would have been subject to the tax under section 5727.24 of the
Revised Code, as enacted by this act AM. SUB.
H.B. 283 OF THE 123rd GENERAL
ASSEMBLY."
Section 6. That existing Section 174 of Am. Sub. H.B. 283 of the
123rd General Assembly is hereby repealed.
Section 7. The excise tax imposed by section 5727.811 of the
Revised Code shall first apply to natural gas distributed on and
after July 1, 2001. Before that date, a natural gas distribution
company shall register with the Tax Commissioner in accordance
with section 5727.93 of the Revised Code, as amended by this act.
Section 8. (A) Not later than 90 days after the effective date of
this act, each natural gas distribution company in this state having more than
50,000 customers, and each natural gas distribution company in this state with
50,000 customers or less that does not make an election under division (C) of
section 5727.811 of the Revised Code, as enacted by this act, shall file with
the Public Utilities Commission revised schedules that do both of
the following:
(1) For all customers, except flex customers as defined by section 5727.80 of
the Revised Code, as amended by this act, reduce natural gas MCF rates,
effective March 1, 2001, in
an amount equal to the amount included in rates in each company's
last base rate case for the differential resulting from the reduction in
the personal property tax assessment rate to 25% of true value as
provided by section 5727.111 of
the Revised Code, as amended by this act;
(2) Establish a rider that provides for the collection, beginning July 1,
2001, of the
excise tax imposed by section 5727.811 of the Revised Code, as
enacted by this act. The Commission shall direct
that such tax be reflected on bills as a separately identified
line item.
The Commission shall approve a revised schedule filed under this
section within 60 days after it is filed.
(B) To the extent possible, the rate reduction provided by
division (A)(1) of this section and the tax rider provided by
division (A)(2) of this section shall be designed to avoid revenue
responsibility shifts among the natural gas distribution company's
customer rate schedules or between the natural gas distribution
company's commodity sales service and distribution service.
Section 9. The Department of Taxation, in conjunction with the Public
Utilities Commission, shall study the net fiscal impact of Sub.
S.B. 287 of the 123rd General Assembly, on commercial and
industrial natural gas customers. The study shall determine the
net fiscal impact of the tax imposed by section 5727.811 of the
Revised Code on such customers.
Not later than February 1, 2001, the Department shall issue a
report of its findings to the President of the Senate, the Speaker
of the House of Representatives, the majority leaders of the
Senate and the House of Representatives, the minority leaders of
the Senate and the House of Representatives, and the chairpersons
of the standing committee of the House of Representatives and the
Senate that primarily considers tax legislation.
Section 10. Sections 5703.052, 5727.111, and 5727.33 of the Revised Code are
presented in this act
as composites of those sections as amended by both
Am. Sub. H.B. 283 and Am. Sub. S.B. 3 of the 123rd General Assembly,
with the new language of neither of the acts shown in capital letters.
This is in recognition of the principle stated in division (B) of section
1.52 of the Revised Code that such amendments are to be
harmonized where not substantively irreconcilable and constitutes
a legislative finding that such are the resulting versions in
effect prior to the effective date of this act.
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