130th Ohio General Assembly
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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 TORATE PER
AN END USERKILOWATT 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 USERRATE 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:
YEARPERCENTAGE

2002100%
2003100%
2004100%
2005100%
2006100%
200780%
200880%
200980%
201080%
201180%
201266.7%
201353.4%
201440.1%
201526.8%
201613.5%
2017 and thereafter0%

(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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