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H. B. No. 117 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsors:
Representatives Boose, Combs, Evans, Gardner, Grossman, Hall, Hite, Morgan, Ruhl, Uecker, Wagner, Zehringer
A BILL
To amend sections 5751.20 and 5751.22 of the Revised
Code to require 30% of commercial activity tax
revenue to be used indefinitely for local
government purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5751.20 and 5751.22 of the Revised
Code be amended to read as follows:
Sec. 5751.20. (A) As used in sections 5751.20 to 5751.22 of
the Revised Code:
(1) "School district," "joint vocational school district,"
"local taxing unit," "recognized
valuation," "fixed-rate levy,"
and "fixed-sum levy" have the same
meanings as used in section
5727.84 of the Revised Code.
(2) "State education aid" for a school district means the sum
of state aid amounts computed for the district under division (A)
of section 3317.022 of the Revised Code, including the amounts
calculated under sections 3317.029 and 3317.0217 of the Revised
Code; divisions (C)(1), (C)(4), (D), (E), and (F) of section
3317.022; divisions (B), (C), and (D) of section 3317.023;
divisions (L) and (N) of section 3317.024; section 3317.0216; and
any unit payments for gifted student services paid under sections
3317.05, 3317.052, and 3317.053 of the Revised Code; except that,
for fiscal years 2008 and 2009, the amount computed for the
district under Section 269.20.80 of H.B. 119 of the 127th general
assembly and as that section subsequently may be amended shall be
substituted for the amount computed under division (D) of section
3317.022 of the Revised Code, and the amount computed under
Section 269.30.80 of H.B. 119 of the 127th general assembly and as
that section subsequently may be amended shall be included.
(3) "State education aid" for a joint vocational school
district means the sum of the state aid computed for the district
under division (N) of section 3317.024 and section 3317.16 of the
Revised Code, except that, for fiscal years 2008 and 2009, the
amount computed under Section 269.30.80 of H.B. 119 of the 127th
general assembly and as that section subsequently may be amended
shall be included.
(4) "State education aid offset" means the amount determined
for each school district or joint vocational school district under
division (A)(1) of section 5751.21 of the Revised Code.
(5) "Machinery and equipment property tax value loss"
means
the amount determined under division (C)(1) of this section.
(6) "Inventory property tax value loss" means the amount
determined under division (C)(2) of this section.
(7) "Furniture and fixtures property tax value loss" means
the amount determined under division (C)(3) of this section.
(8)
"Machinery and equipment fixed-rate levy loss" means
the
amount determined under division (D)(1) of this section.
(9) "Inventory fixed-rate levy loss" means the amount
determined under division (D)(2) of this section.
(10) "Furniture and fixtures fixed-rate levy loss" means
the
amount determined under division (D)(3) of this section.
(11) "Total fixed-rate levy loss" means the sum of the
machinery and equipment fixed-rate levy loss, the inventory
fixed-rate levy loss, the furniture and fixtures fixed-rate levy
loss, and the telephone company fixed-rate levy loss.
(12)
"Fixed-sum levy loss" means the amount determined
under
division (E) of this section.
(13) "Machinery and equipment" means personal property
subject to the assessment rate specified in division (F) of
section 5711.22 of the Revised Code.
(14) "Inventory" means personal property subject to the
assessment rate specified in division (E) of section 5711.22 of
the Revised Code.
(15) "Furniture and fixtures" means personal property
subject to the assessment rate specified in division (G) of
section 5711.22 of the Revised Code.
(16) "Qualifying levies" are levies in effect for tax
year
2004 or applicable to tax year 2005 or approved at an
election
conducted before September 1, 2005. For the purpose of
determining the rate of a qualifying levy authorized by section
5705.212 or 5705.213 of the Revised Code, the rate shall be the
rate that would be in effect for tax year 2010.
(17) "Telephone property" means tangible personal
property
of a telephone, telegraph, or interexchange
telecommunications
company subject to an assessment rate specified
in section
5727.111 of the Revised Code in tax year 2004.
(18) "Telephone property tax value loss" means the amount
determined under division (C)(4) of this section.
(19) "Telephone property fixed-rate levy loss" means the
amount determined under division (D)(4) of this section.
(B) The commercial activities tax receipts fund is hereby
created in the state treasury and shall consist of money arising
from the tax imposed under this chapter. All money in that fund
shall be credited for each fiscal year in the following
percentages to the general revenue fund, to the school district
tangible property tax replacement fund, which is hereby created in
the state treasury for the purpose of making the payments
described in section 5751.21 of the Revised Code, and to the local
government tangible property tax replacement fund, which is hereby
created in the state treasury for the purpose of making the
payments described in section 5751.22 of the Revised Code, in the
following percentages:
Fiscal year |
General Revenue Fund |
School District Tangible Property Tax Replacement Fund |
Local Government Tangible Property Tax Replacement Fund |
2006 |
67.7% |
22.6% |
9.7% |
2007 |
0% |
70.0% |
30.0% |
2008 |
0% |
70.0% |
30.0% |
2009 |
0% |
70.0% |
30.0% |
2010 |
0% |
70.0% |
30.0% |
2011 |
0% |
70.0% |
30.0% |
2012 |
5.3% |
70.0% |
24.7% |
2013 |
10.6% |
70.0% |
19.4% |
2014 |
14.1% |
70.0% |
15.9% |
2015 |
17.6% |
70.0% |
12.4% |
2016 |
21.1% |
70.0% |
8.9% |
2017 |
24.6% |
70.0% |
5.4% |
2018 |
28.1% |
70.0% |
1.9% |
2019 2011 and thereafter |
30 0% |
70% |
0 30% |
(C) Not later than September 15, 2005, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its machinery and equipment,
inventory property, furniture and fixtures property, and telephone
property tax value losses, which are the applicable amounts
described in divisions (C)(1), (2), (3), and (4) of this section,
except as provided in division (C)(5) of this section:
(1) Machinery and equipment property tax value loss is the
taxable value of machinery and equipment property as reported by
taxpayers for tax year 2004 multiplied by:
(a) For tax year 2006, thirty-three and eight-tenths per
cent;
(b) For tax year 2007, sixty-one and three-tenths per cent;
(c) For tax year 2008, eighty-three per cent;
(d) For tax year 2009 and thereafter, one hundred per cent.
(2) Inventory property tax value loss is the taxable value of
inventory property as reported by taxpayers for tax year 2004
multiplied by:
(a) For tax year 2006, a fraction, the numerator of which is
five and three-fourths and the denominator of which is
twenty-three;
(b) For tax year 2007, a fraction, the numerator of which is
nine and one-half and the denominator of which is twenty-three;
(c) For tax year 2008, a fraction, the numerator of which is
thirteen and one-fourth and the denominator of which is
twenty-three;
(d) For tax year 2009 and thereafter a fraction, the
numerator of which is seventeen and the denominator of which is
twenty-three.
(3) Furniture and fixtures property tax value loss is the
taxable value of furniture and fixture property as reported by
taxpayers for tax year 2004 multiplied by:
(a) For tax year 2006, twenty-five per cent;
(b) For tax year 2007, fifty per cent;
(c) For tax year 2008, seventy-five per cent;
(d) For tax year 2009 and thereafter, one hundred per cent.
The taxable value of property reported by taxpayers used in
divisions (C)(1), (2), and (3) of this section shall be such
values as determined to be final by the tax commissioner as of
August 31, 2005. Such determinations shall be final except for any
correction of a clerical error that was made prior to August 31,
2005, by the tax commissioner.
(4) Telephone property tax value loss is the taxable value of
telephone property as taxpayers would have reported that property
for tax year 2004 if the assessment rate for all telephone
property for that year were twenty-five per cent, multiplied by:
(a) For tax year 2006, zero per cent;
(b) For tax year 2007, zero per cent;
(c) For tax year 2008, zero per cent;
(d) For tax year 2009, sixty per cent;
(e) For tax year 2010, eighty per cent;
(f) For tax year 2011 and thereafter, one hundred per cent.
(5) Division (C)(5) of this section applies to any school
district, joint vocational school district, or local taxing unit
in a county in which is located a facility currently or formerly
devoted to the enrichment or commercialization of uranium or
uranium products, and for which the total taxable value of
property listed on the general tax list of personal property for
any tax year from tax year 2001 to tax year 2004 was fifty per
cent or less of the taxable value of such property listed on the
general tax list of personal property for the next preceding tax
year.
In computing the fixed-rate levy losses under divisions
(D)(1), (2), and (3) of this section for any school district,
joint vocational school district, or local taxing unit to which
division (C)(5) of this section applies, the taxable value of such
property as listed on the general tax list of personal property
for tax year 2000 shall be substituted for the taxable value of
such property as reported by taxpayers for tax year 2004, in the
taxing district containing the uranium facility, if the taxable
value listed for tax year 2000 is greater than the taxable value
reported by taxpayers for tax year 2004. For the purpose of making
the computations under divisions (D)(1), (2), and (3) of this
section, the tax year 2000 valuation is to be allocated to
machinery and equipment, inventory, and furniture and fixtures
property in the same proportions as the tax year 2004 values. For
the purpose of the calculations in division (A) of section 5751.21
of the Revised Code, the tax year 2004 taxable values shall be
used.
To facilitate the calculations required under division (C) of
this section, the county auditor, upon request from the tax
commissioner, shall provide by August 1, 2005, the values of
machinery and equipment, inventory, and furniture and fixtures for
all single-county personal property taxpayers for tax year 2004.
(D) Not later than September 15, 2005, the tax commissioner
shall determine for each tax year from 2006 through 2009 for each
school district, joint vocational school district, and local
taxing unit its machinery and equipment, inventory, and furniture
and fixtures fixed-rate levy losses, and for each tax year from
2006 through 2011 its telephone property fixed-rate levy loss,
which are the applicable amounts described in divisions (D)(1),
(2), (3), and (4) of this section:
(1) The machinery and equipment fixed-rate levy loss is the
machinery and equipment property tax value loss multiplied by the
sum of the tax rates of fixed-rate qualifying levies.
(2) The inventory fixed-rate loss is the inventory property
tax value loss multiplied by the sum of the tax rates of
fixed-rate qualifying levies.
(3) The furniture and fixtures fixed-rate levy loss is the
furniture and fixture property tax value loss multiplied by the
sum of the tax rates of fixed-rate qualifying levies.
(4) The telephone property fixed-rate levy loss is the
telephone property tax value loss multiplied by the sum of the tax
rates of fixed-rate qualifying levies.
(E)
Not later than September 15, 2005, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its fixed-sum levy loss. The
fixed-sum levy loss is the amount obtained by subtracting the
amount described in division (E)(2) of this section from the
amount described in division (E)(1) of this section:
(1) The sum of the machinery and equipment property tax value
loss, the inventory property tax value loss, and the furniture and
fixtures property tax value loss, and, for 2008 through 2017 the
telephone property tax value loss of the district or unit
multiplied by the sum of the fixed-sum tax rates of qualifying
levies. For 2006 through 2010, this computation shall include all
qualifying levies remaining in effect for the current tax year and
any school district levies imposed under section
5705.194 or
5705.213 of the Revised Code that are qualifying
levies
not
remaining in effect for the current year. For 2011
through
2017
in the case of school district levies
imposed under section
5705.194 or 5705.213 of the Revised Code and
for all
years after
2010 in the case of other fixed-sum levies,
this
computation
shall include only qualifying levies remaining
in
effect for the
current year. For purposes of this computation,
a
qualifying
school district levy imposed under section
5705.194 or 5705.213
of the Revised Code remains in effect in a
year after 2010 only
if, for that year, the board of education
levies a school
district levy imposed under section
5705.194 or 5705.213 of the
Revised Code for an annual sum at
least
equal to the annual sum
levied by the board in tax year
2004 less
the amount of the
payment certified under this division
for 2006.
(2) The total taxable value in tax year 2004 less the sum of
the machinery and equipment, inventory, furniture and fixtures,
and telephone property tax value losses in each school district,
joint vocational school district, and local taxing unit multiplied
by one-half of one mill per dollar.
(3) For the calculations in divisions (E)(1) and (2) of this
section, the tax value losses are those that would be calculated
for tax year 2009 under divisions (C)(1), (2), and (3) of this
section and for tax year 2011 under division (C)(4) of this
section.
(4) To facilitate the calculation under divisions (D) and (E)
of this section, not later than September 1, 2005, any school
district, joint vocational school district, or local taxing unit
that has a qualifying levy that was approved at an election
conducted during 2005 before September 1, 2005, shall certify to
the tax commissioner a copy of the county auditor's certificate of
estimated property tax millage for such levy as required under
division (B) of section 5705.03 of the Revised Code, which is the
rate that shall be used in the calculations under such divisions.
If the amount determined under division (E) of this section
for any school district, joint vocational school district, or
local taxing unit is greater than zero, that amount shall equal
the reimbursement to be paid pursuant to division (E) of
section
5751.21 or division (A)(3) of section 5751.22 of the
Revised
Code,
and the one-half of one mill that is subtracted
under
division
(E)(2) of this section shall be apportioned among
all
contributing
fixed-sum levies in the proportion that each
levy
bears to the sum
of all fixed-sum levies within each school
district, joint
vocational school district, or local taxing unit.
(F) Not later than October 1, 2005, the tax commissioner
shall certify to the department of education for every school
district and joint vocational school district the machinery and
equipment, inventory, furniture and fixtures, and telephone
property tax value losses determined under division (C) of this
section, the machinery and equipment, inventory, furniture and
fixtures, and telephone fixed-rate levy losses determined under
division (D) of this section, and the fixed-sum levy losses
calculated under division (E) of this section. The calculations
under divisions (D) and (E) of this section shall separately
display the levy loss for each levy eligible for reimbursement.
(G) Not later than October 1, 2005, the tax commissioner
shall certify the amount of the fixed-sum levy losses to the
county auditor of each county in which a school district, joint
vocational school district, or local taxing unit with a fixed-sum
levy loss reimbursement has territory.
Sec. 5751.22. (A) Not later than January 1, 2006, the tax
commissioner shall compute the payments to be made to each local
taxing unit for each year according to divisions (A)(1), (2), (3),
and (4) of this section, and shall distribute the payments in the
manner prescribed by division (C) of this section. The calculation
of the fixed-sum levy loss shall cover a time period sufficient to
include all fixed-sum levies for which the commissioner
determined, pursuant to division (E) of section 5751.20 of the
Revised Code, that a fixed-sum levy loss is to be reimbursed.
(1) Except as provided in division (A)(4) of this section,
for machinery and equipment, inventory, and furniture and fixtures
fixed-rate levy losses determined under division (D) of section
5751.20 of the Revised Code, payments shall be made in an amount
equal to each of those losses multiplied by the following:
(a) For tax years 2006 through 2010, one hundred per cent;
(b) For tax year 2011, a fraction, the numerator of which is
fourteen and the denominator of which is seventeen;
(c) For tax year 2012, a fraction, the numerator of which is
eleven and the denominator of which is seventeen;
(d) For tax year 2013, a fraction, the numerator of which is
nine and the denominator of which is seventeen;
(e) For tax year 2014, a fraction, the numerator of which is
seven and the denominator of which is seventeen;
(f) For tax year 2015, a fraction, the numerator of which is
five and the denominator of which is seventeen;
(g) For tax year 2016, a fraction, the numerator of which is
three and the denominator of which is seventeen;
(h) For tax year 2017, a fraction, the numerator of which is
one and the denominator of which is seventeen;
(i) For tax years 2018 and thereafter, no fixed-rate payments
shall be made.
Any qualifying levy that is a fixed-rate levy that is not
applicable to a tax year after 2010 shall not qualify for any
reimbursement after the tax year to which it is last applicable.
(2) Except as provided in division (A)(4) of this section,
for telephone property fixed-rate levy losses determined under
division (D)(4) of section 5751.20 of the Revised Code, payments
shall be made in an amount equal to each of those losses
multiplied by the following:
(a) For tax years 2009 through 2011, one hundred per cent;
(b) For tax year 2012, seven-eighths;
(c) For tax year 2013, six-eighths;
(d) For tax year 2014, five-eighths;
(e) For tax year 2015, four-eighths;
(f) For tax year 2016, three-eighths;
(g) For tax year 2017, two-eighths;
(h) For tax year 2018, one-eighth;
(i) For tax years 2019 and thereafter, no fixed-rate payments
shall be made.
Any qualifying levy that is a fixed-rate levy that is not
applicable to a tax year after 2011 shall not qualify for any
reimbursement after the tax year to which it is last applicable.
(3) For fixed-sum levy losses determined under division (E)
of section 5751.20 of the Revised Code, payments shall be made in
the amount of one hundred per cent of the fixed-sum levy loss for
payments required to be made in 2006 and thereafter.
(4) For taxes levied within the ten-mill limitation for debt
purposes in tax year 2005, payments shall be made based on the
schedule in division (A)(1) of this section for each of the
calendar years 2006 through 2010. For each of the calendar years
2011 through 2017, the percentages for calendar year 2010 shall be
used, as long as the qualifying levy continues to be used for debt
purposes. If the purpose of such a qualifying levy is changed,
that levy becomes subject to the payment schedules in divisions
(A)(1)(a) to (h) of this section. No payments shall be made for
such levies after calendar year 2017.
(B) Beginning in 2007, by the thirty-first day of January of
each year, the tax commissioner shall review the calculation
originally made under division (A) of this section of the
fixed-sum levy losses determined under division (E) of section
5751.20 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 calculation for that and all
subsequent years shall be made.
(C) Payments to local taxing units required to be made under
division (A) of this section shall be paid from the local
government tangible property tax replacement fund to the county
undivided income tax fund in the proper county treasury. Beginning
in May 2006, one-seventh of the amount certified under that
division shall be paid by the last day of May each year, and
three-sevenths shall be paid by the last day of August and October
each year. Within forty-five days after receipt of such payments,
the county treasurer shall distribute amounts determined 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.
(D) For each of the fiscal years 2006 through 2019, if the
total amount in the local government tangible property tax
replacement fund is insufficient to make all payments under
division (C) of this section at the times the payments are to be
made, the director of budget and management shall transfer from
the general revenue fund to the local government tangible property
tax replacement fund the difference between the total amount to be
paid and the amount in the local government tangible property tax
replacement fund. For each fiscal year after 2019, at the time
payments under division (A)(2) of this section are to be made, the
director of budget and management shall transfer from the general
revenue fund to the local government property tax replacement fund
the amount necessary to make such payments.
(E) On the fifteenth day of June of each year from 2006
through 2018 2011, the director of budget and management may
transfer any balance in the local government tangible property tax
replacement fund to the general revenue fund. At the end of each
fiscal year beginning with fiscal year
2012 and ending with
fiscal year 2018, any balance in the local
government tangible
property tax replacement fund shall remain in
the fund to be used
in future fiscal years for local government
purposes. In each
fiscal year beginning with fiscal year 2019, all
amounts credited
to the local government tangible property tax
replacement fund
shall be appropriated for local government
purposes. As used in
this division, "local government purposes"
means providing
monetary assistance to local taxing units
including, but not
limited to, supplementing payments from the
local government fund
and continuing the payments provided in
divisions (A) and (C) of
this section.
(F) 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 commissioner not later than the
first day of June of the calendar year in which the payment is to
be made.
Section 2. That existing sections 5751.20 and 5751.22 of the
Revised Code are hereby repealed.
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