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H. B. No. 464 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
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Representatives Winburn, Phillips
Cosponsors:
Representatives Letson, Murray, Mallory, Domenick, Fende, Lundy, Yuko, Williams, S., Garland, Brown, Hagan
A BILL
To amend sections 5727.01, 5727.02, 5727.06, 5727.11,
5727.111, and 5727.15 and to enact section 5727.75
of the Revised Code to exempt qualifying wind and
solar energy facilities from property taxation for
up to 20 years and to require payments in lieu of
taxes on the basis of each megawatt of production
capacity of such facilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5727.01, 5727.02, 5727.06, 5727.11,
5727.111, and 5727.15 be amended and section 5727.75 of the
Revised Code be enacted to read as follows:
Sec. 5727.01. As used in this chapter:
(A) "Public utility" means each person referred to as a
telephone company, telegraph company, electric company, natural
gas company, pipe-line company, water-works company, water
transportation company, heating company, rural electric company,
railroad company, or combined company, wind energy company, or
solar energy company.
(B) "Gross receipts" means the entire receipts for business
done by any person from operations as a public utility, or
incidental thereto, or in connection therewith, including any
receipts received under Chapter 4928. of the Revised Code. The
gross receipts for business done by an incorporated company
engaged in operation as a public utility includes the entire
receipts for business done by such company under the exercise of
its corporate powers, whether from the operation as a public
utility or from any other business.
(C) "Rural electric company" means any nonprofit corporation,
organization, association, or cooperative engaged in the business
of supplying electricity to its members or persons owning an
interest therein in an area the major portion of which is rural.
(1) Is a telegraph company when engaged in the business of
transmitting telegraphic messages to, from, through, or in this
state;
(2) Is a telephone company when primarily engaged in the
business of providing local exchange telephone service, excluding
cellular radio service, in this state;
(3) Is an electric company when engaged in the business of
generating, transmitting, or distributing electricity within this
state for use by others, but excludes a rural electric company;
(4) Is a natural gas company when engaged in the business of
supplying or distributing natural gas for lighting, power, or
heating purposes to consumers within this state, excluding a
person that is a governmental aggregator or retail natural gas
supplier as defined in section 4929.01 of the Revised Code;
(5) Is a pipe-line company when engaged in the business of
transporting natural gas, oil, or coal or its derivatives through
pipes or tubing, either wholly or partially within this state;
(6) Is a water-works company when engaged in the business of
supplying water through pipes or tubing, or in a similar manner,
to consumers within this state;
(7) Is a water transportation company when engaged in the
transportation of passengers or property, by boat or other
watercraft, over any waterway, whether natural or artificial, from
one point within this state to another point within this state, or
between points within this state and points without this state;
(8) Is a heating company when engaged in the business of
supplying water, steam, or air through pipes or tubing to
consumers within this state for heating purposes;
(9) Is a railroad company when engaged in the business of
owning or operating a railroad either wholly or partially within
this state on rights-of-way acquired and held exclusively by such
company, or otherwise, and includes a passenger, street, suburban,
or interurban railroad company;
(10) Is a wind energy company when engaged in the business of
generating, transmitting, or distributing electricity within this
state for use by others through means of a wind turbine or wind
turbines with an aggregate nameplate capacity in excess of two
hundred fifty kilowatts;
(11) Is a solar energy company when engaged in the business
of generating, transmitting, or distributing electricity within
this state for use by others through means of equipment located at
a solar energy facility and designed to capture the radiant light
and heat from the sun with a nameplate capacity in excess of two
hundred fifty kilowatts.
As used in division (D)(2) of this section, "local exchange
telephone service" means making available or furnishing access and
a dial tone to all persons within a local calling area for use in
originating and receiving voice grade communications over a
switched network operated by the provider of the service within
the area and for gaining access to other telecommunication
services.
(E) "Taxable property" means the property required by section
5727.06 of the Revised Code to be assessed by the tax
commissioner, but does not include either of the following:
(1) An item of tangible personal property that for the period
subsequent to the effective date of an air, water, or noise
pollution control certificate and continuing so long as the
certificate is in force, has been certified as part of the
pollution control facility with respect to which the certificate
has been issued;
(2) An item of tangible personal property that during the
construction of a plant or facility and until the item is first
capable of operation, whether actually used in operation or not,
is incorporated in or being held exclusively for incorporation in
that plant or facility.
Notwithstanding section 5701.03 of the Revised Code, for tax
year 2006 and thereafter, "taxable property" includes patterns,
jigs, dies, and drawings of an electric company or a combined
company for use in the activity of an electric company.
(F) "Taxing district" means a municipal corporation of or
township, or part thereof, in which the aggregate rate of taxation
is uniform.
(G) "Telecommunications service" has the same meaning as in
division (AA) of section 5739.01 of the Revised Code.
(H) "Interexchange telecommunications company" means a person
that is engaged in the business of transmitting telephonic
messages to, from, through, or in this state, but that is not a
telephone company.
(I) "Sale and leaseback transaction" means a transaction in
which a public utility or interexchange telecommunications company
sells any tangible personal property to a person other than a
public utility or interexchange telecommunications company and
leases that property back from the buyer.
(J) "Production equipment" means all taxable steam, nuclear,
hydraulic, and other production plant equipment used to generate
electricity. For tax years prior to 2001, "production equipment"
includes taxable station equipment that is located at a production
plant.
(K) "Tax year" means the year for which property or gross
receipts are subject to assessment under this chapter. This
division does not limit the tax commissioner's ability to assess
and value property or gross receipts outside the tax year.
(L) "Combined company" means any person engaged in the
activity of an electric company or rural electric company that is
also engaged in the activity of a heating company or a natural gas
company, or any combination thereof.
(M) "Public utility property lessor" means any person, other
than a public utility or an interexchange telecommunications
company, that leases personal property, other than in a sale and
leaseback transaction, to a public utility, other than a railroad,
water transportation, telephone, or telegraph company if the
property would be taxable property if owned by the public utility.
A public utility property lessor is subject to this chapter only
for the purposes of reporting and paying tax on taxable property
it leases to a public utility other than a telephone or telegraph
company. A public utility property lessor that leases property to
a public utility other than a telephone or telegraph company is
not a public utility, but it shall report its property and be
assessed in the same manner as the utility to which it leases the
property.
(N) "Wind energy conversion equipment" means tangible
personal property connected to a wind turbine tower and through
which electricity is transferred from the turbine generator to
controls, transformers, or power electronics and to the
transmission interconnection point. "Wind energy conversion
equipment" includes, but is not limited to, collection lines,
ancillary tangible personal property, substations, and any lines
and associated tangible personal property located between
substations and the transmission interconnection point.
(O) "Solar energy conversion equipment" means tangible
personal property that is connected to and behind solar radiation
collector areas and that is designed to convert the radiant energy
of the sun into electricity or heat. "Solar energy conversion
equipment" includes, but is not limited to, inverters, batteries,
switch gears, wiring, collection lines, substations, ancillary
tangible personal property necessary for radiant energy conversion
or storage, or any lines and associated tangible personal property
located between substations and the transmission interconnection
point that operate on direct current or generate direct current.
(P) "Wind energy facility" means one or more interconnected
wind turbines owned by the same person, including:
(1) All interconnection equipment, devices, and related
apparatus connected to the wind turbine generators;
(2) All cables, equipment, devices, and related apparatus
that connect the wind turbine generators to an electricity grid or
to a building or facility that directly consumes the electricity
produced, that facilitate the transmission of electrical energy
from the generators to the grid, building, or facility, and, where
applicable, that transform voltage before ultimate delivery of
electricity to the grid, building, or facility.
(Q) "Solar energy facility" means one or more interconnected
solar panels owned by the same person, including:
(1) All interconnection equipment, devices, and related
apparatus connected to the solar panels;
(2) All cables, equipment, devices, and related apparatus
that connect the solar panels to an electricity grid or to a
building or facility that directly consumes the electricity
produced, that facilitate the transmission of electrical energy
from the solar panels to the grid, building, or facility, and,
where applicable, that transform voltage before ultimate delivery
of electricity to the grid, building, or facility.
(R) "Nameplate capacity" means the original maximum rated
output of a generator or other electric production equipment under
specific conditions designated by the manufacturer, expressed in
the number of kilowatts or megawatts.
Sec. 5727.02. As used in this chapter, "public utility,"
"electric company," "natural gas company," "pipe-line company,"
"water-works company," "water transportation company" or "heating
company" does not include any of the following:
(A)(1) Except as provided in division (A)(2) of this section,
any person that is engaged in some other primary business to which
the supplying of electricity, heat, natural gas, water, water
transportation, steam, or air to others is incidental. As used in
division (A) of this section and in section 5727.031 of the
Revised Code, "supplying of electricity" means generating,
transmitting, or distributing electricity.
(2) For tax year 2009 and each tax year thereafter, a person
that is engaged in some other primary business to which the
supplying of electricity to others is incidental shall be treated
as an "electric company" and a "public utility" for purposes of
this chapter solely to the extent required by section 5727.031 of
the Revised Code.
(3) For purposes of division (A) of this section and section
5727.031 of the Revised Code:
(a) "Supplying of electricity" means generating,
transmitting, or distributing electricity.
(b) A person that leases to others wind energy facilities or
solar energy facilities with an aggregate nameplate capacity in
this state of two hundred fifty kilowatts or less per lease is not
supplying electricity to others.
(c) A person that owns, or leases from another person, wind
energy facilities or solar energy facilities with an aggregate
nameplate capacity in this state of two hundred fifty kilowatts or
less is not supplying electricity to others, regardless of whether
the owner or lessee engages in net metering as defined in section
4928.01 of the Revised Code.
(B) Any person that supplies electricity, natural gas, water,
water transportation, steam, or air to its tenants, whether for a
separate charge or otherwise;
(C) Any person whose primary business in this state consists
of producing, refining, or marketing petroleum or its products.
(D) Any person whose primary business in this state consists
of producing or gathering natural gas rather than supplying or
distributing natural gas to consumers.
Sec. 5727.06. (A) Except as otherwise provided by law, the
following constitutes the taxable property of a public utility,
interexchange telecommunications company, or public utility
property lessor that shall be assessed by the tax commissioner:
(1) For tax years before tax year 2006:
(a) In the case of a railroad company, all real property and
tangible personal property owned or operated by the railroad
company in this state on the thirty-first day of December of the
preceding year;
(b) In the case of a water transportation company, all
tangible personal property, except watercraft, owned or operated
by the water transportation company in this state on the
thirty-first day of December of the preceding year and all
watercraft owned or operated by the water transportation company
in this state during the preceding calendar year;
(c) In the case of all other public utilities and
interexchange telecommunications companies, all tangible personal
property that on the thirty-first day of December of the preceding
year was both located in this state and:
(i) Owned by the public utility or interexchange
telecommunications company; or
(ii) Leased by the public utility or interexchange
telecommunications company under a sale and leaseback transaction.
(2) For tax years 2006, 2007, and 2008:
(a) In the case of a railroad company, all real property used
in railroad operations and tangible personal property owned or
operated by the railroad company in this state on the thirty-first
day of December of the preceding year;
(b) In the case of a water transportation company, all
tangible personal property, except watercraft, owned or operated
by the water transportation company in this state on the
thirty-first day of December of the preceding year and all
watercraft owned or operated by the water transportation company
in this state during the preceding calendar year;
(c) In the case of all other public utilities except
telephone and telegraph companies, all tangible personal property
that on the thirty-first day of December of the preceding year was
both located in this state and either owned by the public utility
or leased by the public utility under a sale and leaseback
transaction.
(3) For tax year 2009 and each tax year thereafter:
(a) In the case of a railroad company, all real property used
in railroad operations and tangible personal property owned or
operated by the railroad company in this state on the thirty-first
day of December of the preceding year;
(b) In the case of a water transportation company, all
tangible personal property, except watercraft, owned or operated
by the water transportation company in this state on the
thirty-first day of December of the preceding year and all
watercraft owned or operated by the water transportation company
in this state during the preceding calendar year;
(c) In the case of all other public utilities except
telephone and telegraph companies, all tangible personal property
that on the thirty-first day of December of the preceding year was
both located in this state and either owned by the public utility
or leased by the public utility under a sale and leaseback
transaction;
(d) In the case of a public utility property lessor, all
personal property that on the thirty-first day of December of the
preceding year was both located in this state and leased, in other
than a sale and leaseback transaction, to a public utility other
than a railroad, telephone, telegraph, or water transportation
company. The assessment rate used under section 5727.111 of the
Revised Code shall be based on the assessment rate that would
apply if the public utility owned the property.
(4) For tax years 2005 and 2006, in the case of telephone,
telegraph, or interexchange telecommunications companies, all
tangible personal property that on the thirty-first day of
December of the preceding year was both located in this state and
either owned by the telephone, telegraph, or interexchange
telecommunications company or leased by the telephone, telegraph,
or interexchange telecommunications company under a sale and
leaseback transaction.
(5)(a) For tax year 2007 and thereafter, in the case of
telephone, telegraph, or interexchange telecommunications
companies, all tangible personal property shall be listed and
assessed for taxation under Chapter 5711. of the Revised Code, but
the tangible personal property shall be valued in accordance with
this chapter using the composite annual allowances and other
valuation procedures prescribed under section 5727.11 of the
Revised Code by the tax commissioner for such property for tax
year 2006, notwithstanding any section of Chapter 5711. of the
Revised Code to the contrary.
(b) A telephone, telegraph, or interexchange
telecommunications company subject to division (A)(5)(a) of this
section shall file a combined return with the tax commissioner in
accordance with section 5711.13 of the Revised Code even if the
company has tangible personal property in only one county. Such a
company also is subject to the issuance of a preliminary
assessment certificate by the tax commissioner under section
5711.25 of the Revised Code. Such a company is not required to
file a county supplemental return under section 5711.131 of the
Revised Code.
(6) In the case of a wind energy company or a solar energy
company, for tax year 2011 and each tax year thereafter, all
tangible personal property that on the thirty-first day of
December of the preceding year was both located in this state and
either owned by the wind energy company or solar energy company or
leased by the wind energy company or solar energy company under a
sale and leaseback transaction, and that is not exempted from
taxation under section 5727.75 of the Revised Code.
(B) This division applies to tax years before tax year 2007.
In the case of an interexchange telecommunications company,
all taxable property shall be subject to the provisions of this
chapter and shall be valued by the commissioner in accordance with
division (A) of section 5727.11 of the Revised Code. A person
described by this division shall file the report required by
section 5727.08 of the Revised Code. Persons described in this
division shall not be considered taxpayers, as defined in division
(B) of section 5711.01 of the Revised Code, and shall not be
required to file a return and list their taxable property under
any provision of Chapter 5711. of the Revised Code.
(C) The lien of the state for taxes levied each year on the
real and personal property of public utilities and interexchange
telecommunications companies and on the personal property of
public utility property lessors shall attach thereto on the
thirty-first day of December of the preceding year.
(D) Property that is required by division (A)(3)(b) of this
section to be assessed by the tax commissioner under this chapter
shall not be listed by the owner of the property under Chapter
5711. of the Revised Code.
(E) The ten-thousand-dollar exemption provided for in
division (C)(3) of section 5709.01 of the Revised Code does not
apply to any personal property that is valued under this chapter.
(F) The tax commissioner may adopt rules governing the
listing of the taxable property of public utilities and
interexchange telecommunications companies and the determination
of true value.
Sec. 5727.11. (A) Except as otherwise provided in this
section, the true value of all taxable property, except property
of a railroad company, required by 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)(1) Except as provided in 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 quotient obtained by
dividing (a) the average value of the current gas stored
underground, which shall be determined by adding the value of the
gas on hand at the end of each calendar month in the calendar year
preceding the tax year, or, if applicable, the last day of
business of each month for a partial month, divided by (b) the
total number of months the natural gas company was in business
during the calendar year prior to the beginning of the tax year.
with the approval of the tax commissioner, a natural gas company
may use a date other than the end of a calendar month to value its
current gas stored underground.
(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, wind energy
conversion equipment, or solar energy conversion equipment of an
electric company or, rural electric company, wind energy company,
or solar energy company purchased, transferred, or placed into
service after the effective date of this amendment October 5,
1999, 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, except property of a
railroad company, required by section 5727.06 of the Revised Code
to be assessed by the tax commissioner 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.
(I) Any change in the composite annual allowances as
prescribed by the commissioner on a prospective basis shall not be
admissible in any judicial or administrative action or proceeding
as evidence of value with regard to prior years' taxes.
Information about the business, property, or transactions of any
taxpayer obtained by the commissioner for the purpose of adopting
or modifying the composite annual allowances shall not be subject
to discovery or disclosure.
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 In the case of a rural electric company, fifty per
cent in the case of
the its taxable transmission and distribution
property of a rural electric company, eighty-five per cent in the
case of its wind or solar energy conversion equipment, and
twenty-five per cent for all its other taxable property;
(B) In the case of a telephone or telegraph company,
twenty-five per cent for taxable property first subject to
taxation in this state for tax year 1995 or thereafter for tax
years before tax year 2007, and pursuant to division (H) of
section 5711.22 of the Revised Code for tax year 2007 and
thereafter, and the following for all other taxable property:
(1) For tax years prior to 2005, eighty-eight per cent;
(2) For tax year 2005, sixty-seven per cent;
(3) For tax year 2006, forty-six per cent;
(4) For tax year 2007 and thereafter, pursuant to division
(H) of section 5711.22 of the Revised Code.
(C) 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) For tax year 2005, 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) For tax year 2006 and each tax year thereafter,
eighty-five per cent in the case of the taxable transmission and
distribution property of an electric company, and twenty-four per
cent for all its other taxable property.
(F)(1) Twenty-five per cent in the case of an interexchange
telecommunications company for tax years before tax year 2007;
(2) Pursuant to division (H) of section 5711.22 of the
Revised Code for tax year 2007 and thereafter.
(G) Twenty-five per cent in the case of a water
transportation company;
(H) For tax year 2011 and each tax year thereafter,
twenty-four per cent in the case of the taxable production
equipment of a solar energy company or wind energy company, and
eighty-five per cent for all other taxable property.
Sec. 5727.15. When all the taxable property of a public
utility is located in one taxing district, the tax commissioner
shall apportion the total taxable value thereof to that taxing
district.
When taxable property of a public utility is located in more
than one taxing district, the commissioner shall apportion the
total taxable value thereof among the taxing districts as follows:
(A)(1) In the case of a telegraph, interexchange
telecommunications, or telephone company that owns miles of wire
in this state, the value apportioned to each taxing district shall
be the same percentage of the total value apportioned to all
taxing districts as the miles of wire owned by the company within
the taxing district are to the total miles of wire owned by the
company within this state;
(2) In the case of a telegraph, interexchange
telecommunications, or telephone company that does not own miles
of wire in this state, the value apportioned to each taxing
district shall be the same percentage of the total value
apportioned to all taxing districts as the cost of the taxable
property physically located in the taxing district is of the total
cost of all taxable property physically located in this state.
(B) In the case of a railroad company:
(1) The taxable value of real and personal property not used
in railroad operations shall be apportioned according to its
situs;
(2) The taxable value of personal property used in railroad
operations shall be apportioned to each taxing district in
proportion to the miles of track and trackage rights, weighted to
reflect the relative use of such personal property in each taxing
district;
(3) The taxable value of real property used in railroad
operations shall be apportioned to each taxing district in
proportion to its relative value in each taxing district.
(C)(1) Prior to tax year 2001, in the case of an electric
company:
(a) Seventy per cent of the taxable value of all production
equipment and of all station equipment that is not production
equipment shall be apportioned to the taxing district in which
such property is physically located; and
(b) The remaining value of such property, together with the
value of all other taxable personal property, shall be apportioned
to each taxing district in the per cent that the cost of all
transmission and distribution property physically located in the
taxing district is of the total cost of all transmission and
distribution property physically located in this state.
(c) If an electric company's taxable value for the current
year includes the value of any production equipment at a plant at
which the initial cost of the plant's production equipment
exceeded one billion dollars, then prior to making the
apportionments required for that company by division (C)(1)(a) and
(b) of this section, the tax commissioner shall do the following:
(i) Subtract four hundred twenty million dollars from the
total taxable value of the production equipment at that plant for
the current tax year.
(ii) Multiply the difference thus obtained by a fraction, the
numerator of which is the portion of the taxable value of that
plant's production equipment included in the company's total value
for the current tax year, and the denominator of which is the
total taxable value of such equipment included in the total
taxable value of all electric companies for such year;
(iii) Apportion the product thus obtained to taxing districts
in the manner prescribed in division (C)(1)(b) of this section.
(iv) Deduct the amounts so apportioned from the taxable value
of the company's production equipment at the plant, prior to
making the apportionments required by divisions (C)(1)(a) and (b)
of this section.
For purposes of division (C)(1)(c) of this section, "initial
cost" applies only to production equipment of plants placed in
commercial operation on or after January 1, 1987, and means the
cost of all production equipment at a plant for the first year the
plant's equipment was subject to taxation.
(2) For tax year 2001 and thereafter, in the case of an
electric company:
(a) The taxable value of all production equipment shall be
apportioned to the taxing district in which such property is
physically located; and
(b) The value of taxable personal property, other than
including wind and solar energy conversion equipment but excluding
production equipment, shall be apportioned to each taxing district
in the proportion that the cost of such other taxable personal
property physically located in each taxing district is of the
total cost of such other taxable personal property physically
located in this state.
(D) For tax year 2011 and thereafter, in the case of the
taxable property of a wind energy company or solar energy company:
(1) The taxable value of all production equipment shall be
apportioned to the taxing district in which such property is
physically located.
(2) The taxable value of all other taxable property,
including wind or solar energy conversion equipment, shall be
apportioned to each taxing district in the proportion that the
cost of such other taxable property physically located in each
taxing district is of the total cost of such other taxable
property physically located in this state.
(E) For tax year 2011 and thereafter, in the case of the
taxable property of a rural electric company:
(1) The taxable value of all production equipment shall be
apportioned to the taxing district in which such property is
physically located.
(2) The taxable value of all its other taxable property,
including wind or solar energy conversion equipment and excluding
production equipment, shall be apportioned to each taxing district
in the proportion that the cost of such other taxable property
physically located in each taxing district is of the total cost of
such other taxable property physically located in this state.
(F) In the case of all other public utilities, the value of
the property to be apportioned shall be apportioned to each taxing
district in proportion to the entire value of such property within
this state.
Sec. 5727.75. (A) For purposes of this section:
(1) "Full-time employee" means an individual employed at a
qualified energy project for services to be performed for not less
than two thousand eighty hours per year, including hours for leave
granted by contract, law, or custom.
(2) "Qualified energy project" means a wind or solar energy
project certified by the director of development pursuant to this
section.
(3) "Wind or solar energy project" means a project to provide
electric power through the construction, installation, and use of
a wind or solar energy facility.
(B)(1) Tangible personal property of a wind energy project
that is a qualified energy project is exempt from taxation for tax
years 2011 and 2012 if both of the following circumstances exist
on December 31, 2010:
(a) The owner or a lessee pursuant to a sale and leaseback
transaction of the wind energy project has obtained a certificate
from the power siting board required under section 4906.20 of the
Revised Code, or if that section does not apply, has obtained any
approval, consent, permit, or certificate or has satisfied any
condition required by a public agency or political subdivision of
this state for the construction of a wind energy project.
(b) Project construction has commenced.
(2) Tangible personal property of a solar energy project that
is a qualified energy project is exempt from taxation for tax year
2011. Personal property of a solar energy project that is a
qualified energy project is exempt from taxation for tax year 2012
if both of the following occur:
(a) The owner or a lessee pursuant to a sale and leaseback
transaction of the solar energy project obtains any approval,
consent, permit, or certificate or has satisfied any condition
required by a public agency or political subdivision of this state
for the construction or initial operation of a solar energy
project before January 1, 2011.
(b) Project construction commenced before August 1, 2011.
(3) If tangible personal property of a qualified energy
project was exempt from taxation under this section for tax years
2011 and 2012 and the certification under division (C) of this
section has not been revoked, the tangible personal property of
the qualified energy project is exempt from taxation for tax year
2013 and the ensuing seventeen tax years if the property was
placed into service before January 1, 2013. Tangible personal
property not placed into service on that date is taxable property
subject to taxation. A wind or solar energy project for which
certification has been revoked is ineligible for further exemption
under this section. Revocation does not affect the tax-exempt
status of the wind or solar energy project tangible personal
property for the tax year in which revocation occurs or any prior
tax year.
(C) On or before September 30, 2010, a person may apply to
the director of development for certification of a wind or solar
energy project as a qualified energy project. At the time the
application is submitted, the person shall submit an application
fee established by the director. The director shall certify a wind
or solar energy project if the application and fee have been
timely submitted and the director determines that the person, upon
placement of the wind or solar energy facility into service, would
be a wind or solar energy company. The director shall revoke a
certification if the director determines the person, or subsequent
owner or lessee pursuant to a sale and leaseback transaction of
the qualified energy project, has failed to comply with any
requirement under this section. Upon certification or revocation,
the director shall notify the person, owner, or lessee, the tax
commissioner, and the county auditor of a county in which the wind
or solar energy project is located of the certification or
revocation. Notice shall be provided in a manner convenient to the
director.
(D) The owner or a lessee pursuant to a sale and leaseback
transaction of a qualified energy project shall do each of the
following:
(1) Comply with all applicable regulations;
(2) With respect to a wind energy project, require in any
contract for the construction or installation of the wind energy
facility that all laborers and mechanics employed for the
construction or installation of the facility shall be paid at the
prevailing rates of wages of laborers and mechanics for the class
of work called for, which wages shall be determined in accordance
with the requirements of Chapter 4115. of the Revised Code for the
determination of prevailing wage rates.
(3)(a) Establish a procurement goal of five per cent for
contracting with minority or EDGE business enterprises in the
award of contracts for the construction, installation, or
maintenance of a wind or solar energy facility based on the
availability of eligible program participants by region or
geographic area.
(b) Establish a minority workforce goal of ten per cent in
the construction, installation, or maintenance of a wind or solar
energy facility.
If either goal is not attained, the owner or lessee shall
show evidence of a good faith effort to attain the goal. For
purposes of division (D)(3) of this section, "minority business
enterprise" has the same meaning as in section 122.71 of the
Revised Code, "EDGE business enterprise" means a business
certified as such pursuant to section 123.152 of the Revised Code,
and "minority" means African Americans, American Indians,
Hispanics or Latinos, and Asians.
(4) File with the director of development a certificate of
completion not later than sixty days after completion of the wind
or solar energy facility's construction and, if applicable, file a
certificate of partial completion on or before March 1, 2013. A
certificate of partial completion shall state the nameplate
capacity of the facility as of January 1, 2013.
(5) File with the director of development, in a manner
prescribed by the director, a report of jobs created at the
qualified energy project, the total number of full-time employees
employed at the project, and the total number of full-time
employees employed at the project who are domiciled in Ohio;
(6) Repair all roads affected by construction as reasonably
required to restore them to their preconstruction condition;
(7) Provide or facilitate training for fire and emergency
responders for response to emergency situations related to the
qualified energy project and, at the person's expense, equip the
fire and emergency responders with proper equipment as reasonably
required to enable them to respond to such emergency situations;
(8) Maintain a ratio of full-time, Ohio-domiciled employees
employed in the qualified energy project to total full-time
employees employed in the qualified energy project of not less
than eighty per cent in the case of a solar energy project and not
less than fifty per cent in the case of a wind energy project. In
the case of a wind energy project for which certification from the
power siting board is required under section 4906.20 of the
Revised Code, the number of employees employed in the qualified
energy project equals the number actually employed or the number
projected to be employed in the certificate application, if such
projection is required under regulations adopted pursuant to
section 4906.03 of the Revised Code, whichever is greater.
(9) In the case of a wind or solar energy project with a
nameplate capacity in excess of two megawatts, establish a
relationship with a member of the university system of Ohio as
defined in section 3345.011 of the Revised Code or with a person
offering an apprenticeship program registered with the employment
and training administration within the United States department of
labor or with the apprenticeship council created by section
4139.02 of the Revised Code, to educate and train individuals for
careers in the wind or solar energy industry. The relationship may
include endowments, cooperative programs, internships,
apprenticeships, research and development projects, and curriculum
development.
(10) Offer to sell power or renewable energy credits from the
qualified energy project to electric distribution utilities or
electric service companies subject to renewable energy resource
requirements under section 4928.64 of the Revised Code that have
issued requests for proposal for such power or renewable energy
credits. If no electric distribution utility or electric service
company issues a request for proposal on or before December 31,
2010, or accepts an offer for power or renewable energy credits
within forty-five days after the offer is submitted, power or
renewable energy credits from the qualified energy project may be
sold to other persons. Contracts for the sale of power or
renewable energy credits before the effective date of this section
as enacted by this act are not subject to division (D)(10) of this
section.
(11) Make annual service payments as required by division (E)
of this section.
(E) The owner or a lessee pursuant to a sale and leaseback
transaction of a qualified energy project shall make annual
service payments in lieu of taxes to the county treasurer on or
before the final dates for payments of taxes on public utility
personal property on the real and public utility personal property
tax list for each tax year for which property of the wind or solar
energy project is exempt from taxation under this section. Each
payment shall be charged and collected in the same manner as such
taxes and in the following amount:
(1) In the case of a solar energy project that is a qualified
energy project, for tax year 2011, seven dollars per kilowatt of
nameplate capacity as of January 1, 2013;
(2) In the case of a wind energy project that is a qualified
energy project, the following for tax year 2011:
(a) If the project maintains a ratio of full-time,
Ohio-domiciled employees to total full-time employees of not less
than seventy-five per cent, six dollars per kilowatt of nameplate
capacity as of January 1, 2013;
(b) If the project maintains a ratio of full-time,
Ohio-domiciled employees to total full-time employees of less than
seventy-five per cent but not less than sixty per cent, seven
dollars per kilowatt of nameplate capacity as of January 1, 2013;
(c) If the project maintains a ratio of full-time,
Ohio-domiciled employees to total full-time employees of less than
sixty per cent but not less than fifty per cent, eight dollars per
kilowatt of nameplate capacity as of January 1, 2013.
(3) For tax year 2012 and each subsequent tax year, the
amounts stated in divisions (E)(1) and (2) of this section shall
increase by an amount equal to the amount applicable to the prior
tax year multiplied by one hundred two per cent.
(F) The director of development in consultation with the tax
commissioner shall adopt rules pursuant to Chapter 119. of the
Revised Code to implement and enforce this section.
Section 2. That existing sections 5727.01, 5727.02, 5727.06,
5727.11, 5727.111, and 5727.15 of the Revised Code are hereby
repealed.
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