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H. B. No. 516 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsors:
Representatives Belcher, Dyer, Evans, Pryor, Yuko, Harwood
A BILL
To amend sections 5751.20 and 5751.21 of the Revised
Code to modify the school district reimbursement
schedule for the loss of revenue from the tangible
personal property tax phase-out.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5751.20 and 5751.21 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
following:
(a) For fiscal years prior to fiscal year 2010, 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.
(b) For fiscal year 2010 and for each fiscal year thereafter,
the sum of the amounts computed under sections 3306.052, 3306.12,
3306.13, 3306.19, 3306.191, and 3306.192 of the Revised Code.
(3) "State education aid" for a joint vocational school
district means the following:
(a) For fiscal years prior to fiscal year 2010, 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.
(b) For fiscal years 2010 and 2011, the amount paid in
accordance with the section of this act entitled "FUNDING FOR
JOINT VOCATIONAL SCHOOL DISTRICTS."
(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. Eighty-five
one-hundredths of one per cent of the money credited to that fund
shall be credited to the tax reform system implementation fund,
which is hereby created in the state treasury, and shall be used
to defray the costs incurred by the department of taxation in
administering the tax imposed by this chapter and in implementing
tax reform measures. The remainder in the commercial activities
tax receipts 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 and thereafter |
30% |
70% |
0% |
(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.
Except as provided in division (F) of this section, such losses
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 and thereafter, 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, 5705.199,
5705.213, or 5705.219 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) If a school district levies a tax under section 5705.219
of the Revised Code, the fixed-rate levy loss for qualifying
levies, to the extent repealed under that section, shall equal the
sum of the following amounts in lieu of the amounts computed for
such levies under division (D) of this section:
(1) The sum of the rates of qualifying levies to the extent
so repealed multiplied by the sum of the machinery and equipment,
inventory, and furniture and fixtures tax value losses for 2009 as
determined under that division;
(2) The sum of the rates of qualifying levies to the extent
so repealed multiplied by the telephone property tax value loss
for 2011 as determined under that division.
The fixed-rate levy losses for qualifying levies to the
extent not repealed under section 5705.219 of the Revised Code
shall be as determined under division (D) of this section. The
revised fixed-rate levy losses determined under this division and
division (D) of this section first apply in the year following the
first year the district levies the tax under section 5705.219 of
the Revised Code.
(G) 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.
(H) 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.
(I) Not later than the twenty-eighth day of February each
year beginning in 2011 and ending in 2014, the tax commissioner
shall certify to the department of education for each school
district first levying a tax under section 5705.219 of the Revised
Code in the preceding year the revised fixed-rate levy losses
determined under divisions (D) and (F) of this section.
Sec. 5751.21. (A) Not later than the thirtieth day of July
of 2007 through 2017 and each year thereafter, the department of
education shall consult with the director of budget and management
and determine the following for each school district and each
joint vocational school district eligible for payment under
division (B) or (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
or joint vocational school district for the current fiscal year as
of the thirtieth day of July;
(b) The state education aid that would be computed for the
school district or joint vocational school district for the
current fiscal year as of the thirtieth day of July if the
recognized valuation included the machinery and equipment,
inventory, furniture and fixtures, and telephone property tax
value losses for the school district or joint vocational school
district for the second preceding tax year, and if taxes charged
and payable associated with the tax value losses are accounted for
in any state education aid computation dependent on taxes charged
and payable.
(2) The greater of zero or the difference obtained by
subtracting the state education aid offset determined under
division (A)(1) of this section from the sum of the machinery and
equipment fixed-rate levy loss, the inventory fixed-rate levy
loss, furniture and fixtures fixed-rate levy loss, and telephone
property fixed-rate levy loss certified under divisions (G) and
(I) of section 5751.20 of the Revised Code for all taxing
districts in each school district and joint vocational school
district for the second preceding tax year.
By the thirtieth day of July of each such year, the
department of education and the director of budget and management
shall agree upon the amount to be determined under division (A)(1)
of this section.
(B) On or before the thirty-first day of August of each year
beginning in 2008, the department of education shall recalculate
the offset described under division (A) of this section for the
previous fiscal year and recalculate the payments made under
division (C) of this section in the preceding fiscal year using
the offset calculated under this division. If the payments
calculated under this division differ from the payments made under
division (C) of this section in the preceding fiscal year, the
difference shall either be paid to a school district or recaptured
from a school district through an adjustment at the same times
during the current fiscal year that the payments under division
(C) of this section are made. In August and October of the current
fiscal year, the amount of each adjustment shall be three-sevenths
of the amount calculated under this division. In May of the
current fiscal year, the adjustment shall be one-seventh of the
amount calculated under this division.
(C)(1) The department of education shall pay from the school
district tangible property tax replacement fund to each school
district and joint vocational school district all of the following
for fixed-rate levy losses certified under divisions (G) and (I)
of section 5751.20 of the Revised Code:
(1)(a) On or before May 31, 2006, one-seventh of the total
fixed-rate levy loss for tax year 2006;
(2)(b) On or before August 31, 2006, and October 31, 2006,
one-half of six-sevenths of the total fixed-rate levy loss for tax
year 2006;
(3)(c) On or before May 31, 2007, one-seventh of the total
fixed-rate levy loss for tax year 2007;
(4)(d) On or before August 31, 2007, and October 31, 2007,
forty-three per cent of the amount determined under division
(A)(2) of this section for fiscal year 2008, but not less than
zero, plus one-half of six-sevenths of the difference between the
total fixed-rate levy loss for tax year 2007 and the total
fixed-rate levy loss for tax year 2006.
(5)(e) On or before May 31, 2008, fourteen per cent of the
amount determined under division (A)(2) of this section for fiscal
year 2008, but not less than zero, plus one-seventh of the
difference between the total fixed-rate levy loss for tax year
2008 and the total fixed-rate levy loss for tax year 2006.
(6)(f) On or before August 31, 2008, and October 31, 2008,
forty-three per cent of the amount determined under division
(A)(2) of this section for fiscal year 2009, but not less than
zero, plus one-half of six-sevenths of the difference between the
total fixed-rate levy loss in tax year 2008 and the total
fixed-rate levy loss in tax year 2007.
(7)(g) On or before May 31, 2009, fourteen per cent of the
amount determined under division (A)(2) of this section for fiscal
year 2009, but not less than zero, plus one-seventh of the
difference between the total fixed-rate levy loss for tax year
2009 and the total fixed-rate levy loss for tax year 2007.
(8)(h) On or before August 31, 2009, and October 31, 2009,
forty-three per cent of the amount determined under division
(A)(2) of this section for fiscal year 2010, but not less than
zero, plus one-half of six-sevenths of the difference between the
total fixed-rate levy loss in tax year 2009 and the total
fixed-rate levy loss in tax year 2008.
(9)(i) On or before May 31, 2010, fourteen per cent of the
amount determined under division (A)(2) of this section for fiscal
year 2010, but not less than zero, plus one-seventh of the
difference between the total fixed-rate levy loss in tax year 2010
and the total fixed-rate levy loss in tax year 2008.
(10)(j) On or before August 31, 2010, and October 31, 2010,
forty-three per cent of the amount determined under division
(A)(2) of this section for fiscal year 2011, but not less than
zero, plus one-half of six-sevenths of the difference between the
telephone property fixed-rate levy loss for tax year 2010 and the
telephone property fixed-rate levy loss for tax year 2009.
(11)(k) On or before May 31, 2011, fourteen per cent of the
amount determined under division (A)(2) of this section for fiscal
year 2011, but not less than zero, plus one-seventh of the
difference between the telephone property fixed-rate levy loss for
tax year 2011 and the telephone property fixed-rate levy loss for
tax year 2009.
(12)(l) On or before August 31, 2011, and October 31, 2011,
forty-three per cent of the amount determined under division
(A)(2) of this section, but not less than zero, plus one-half of
six-sevenths of the difference between the telephone property
fixed-rate levy loss for tax year 2011 and the telephone property
fixed-rate levy loss for tax year 2010.
(13)(m) On or before May 31, 2012, fourteen per cent of the
amount determined under division (A)(2) of this section for fiscal
year 2012, but not less than zero, plus one-seventh of the
difference between the telephone property fixed-rate levy loss for
tax year 2011 and the telephone property fixed-rate levy loss for
tax year 2010.
(14)(n) On or before August 31, 2012, October 31, 2012, and
May 31, 2013, the amount determined under division (A)(2) of this
section but not less than zero, multiplied by one-third.
(15) On or before August 31, 2013, October 31, 2013, and May
31, 2014, the amount determined under division (A)(2) of this
section multiplied by a fraction, the numerator of which is nine
and the denominator of which is seventeen, but not less than zero,
multiplied by one-third.
(16) On or before August 31, 2014, October 31, 2014, and May
31, 2015, the amount determined under division (A)(2) of this
section multiplied by a fraction, the numerator of which is seven
and the denominator of which is seventeen, but not less than zero,
multiplied by one-third.
(17) On or before August 31, 2015, October 31, 2015, and May
31, 2016, the amount determined under division (A)(2) of this
section multiplied by a fraction, the numerator of which is five
and the denominator of which is seventeen, but not less than zero,
multiplied by one-third.
(18) On or before August 31, 2016, October 31, 2016, and May
31, 2017, the amount determined under division (A)(2) of this
section multiplied by a fraction, the numerator of which is three
and the denominator of which is seventeen, but not less than zero,
multiplied by one-third.
(19) On or before August 31, 2017, October 31, 2017, and May
31, 2018, the amount determined under division (A)(2) of this
section multiplied by a fraction, the numerator of which is one
and the denominator of which is seventeen, but not less than zero,
multiplied by one-third.
(2) Beginning in fiscal year 2014, on or before August 31,
October 31, and May 31 of that fiscal year and each fiscal year
thereafter, the department of education shall pay from the school
district tangible property tax replacement fund to each school
district and joint vocational district one-third of the amount
calculated under division (C)(2)(a) of this section.
(a) The amount determined under division (A)(2) of this
section for that year, multiplied by the applicable percentage
according to the following table:
Fiscal Year |
|
School District Classes |
|
Class I |
Class II |
Class III |
Class IV |
2014 |
100% |
95% |
90% |
90% |
2015 |
100% |
95% |
90% |
80% |
2016 |
100% |
90% |
80% |
70% |
2017 |
100% |
90% |
80% |
60% |
2018 |
100% |
85% |
70% |
50% |
2019 |
100% |
85% |
70% |
40% |
2020 |
100% |
80% |
60% |
30% |
2021 |
100% |
80% |
60% |
20% |
2022 |
100% |
75% |
50% |
10% |
2023 |
100% |
75% |
50% |
0% |
2024 and 2025 |
100% |
70% |
40% |
0% |
2026 and 2027 |
100% |
65% |
30% |
0% |
2028 and 2029 |
100% |
60% |
20% |
0% |
2030 and 2031 |
100% |
55% |
10% |
0% |
2032 and 2033 |
100% |
50% |
0% |
0% |
2034 and 2035 |
100% |
45% |
0% |
0% |
2036 and 2037 |
100% |
40% |
0% |
0% |
2038 and 2039 |
100% |
35% |
0% |
0% |
2040 and 2041 |
100% |
30% |
0% |
0% |
2042 and 2043 |
100% |
25% |
0% |
0% |
2044 and 2045 |
100% |
20% |
0% |
0% |
2046 and 2047 |
100% |
15% |
0% |
0% |
2048 and 2049 |
100% |
10% |
0% |
0% |
2050 and 2051 |
100% |
5% |
0% |
0% |
2052 and thereafter |
100% |
0% |
0% |
0% |
(b) For purposes of this division:
(i) "Class I" includes each school district and joint
vocational district whose total fixed-rate levy loss as of tax
year 2011 is at least ten per cent of the district's operating
budget for fiscal year 2010.
(ii) "Class II" includes each school district and joint
vocational district whose total fixed-rate levy loss as of tax
year 2011 is at least five and four-fifths per cent but less than
ten per cent of the district's operating budget for fiscal year
2010.
(iii) "Class III" includes each school district and joint
vocational district whose total fixed-rate levy loss as of tax
year 2011 is at least three and three-tenths per cent but less
than five and four-fifths per cent of the district's operating
budget for fiscal year 2010.
(iv) "Class IV" includes each school district and joint
vocational district whose total fixed-rate levy loss as of tax
year 2011 is less than three and three-tenths per cent of the
district's operating budget for fiscal year 2010.
(v) "Operating budget" means the sum of a school district's
state education aid for the fiscal year and its total taxes
charged and payable for current expenses from the district's
property taxes and income taxes that are appropriated for that
fiscal year.
The department of education shall report to each school
district and joint vocational school district the apportionment of
the payments among the school district's or joint vocational
school district's funds based on the certifications under
divisions (G) and (I) of section 5751.20 of the Revised Code.
Any qualifying levy that is a fixed-rate levy that is not
applicable to a tax year after 2010 does not qualify for any
reimbursement after the tax year to which it is last applicable.
(D) For taxes levied within the ten-mill limitation for debt
purposes in tax year 2005, payments shall be made equal to one
hundred per cent of the loss computed as if the tax were a
fixed-rate levy, but and those payments shall extend from fiscal
year 2006 through fiscal year 2018, 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
payments determined in division (C) of this section.
(E)(1) Not later than January 1, 2006, for each fixed-sum
levy of each school district or joint vocational school district
and for each year for which a determination is made under division
(E) of section 5751.20 of the Revised Code that a fixed-sum levy
loss is to be reimbursed, the tax commissioner shall certify to
the department of education the fixed-sum levy loss determined
under that division. The certification shall cover a time period
sufficient to include all fixed-sum levies for which the
commissioner made such a determination. The department shall pay
from the school district property tax replacement fund to the
school district or joint vocational school district one-third of
the fixed-sum levy loss so certified for each year, plus one-third
of the amount certified under division (I) of section 5751.20 of
the Revised Code, on or before the last day of May, August, and
October of the current year. Payments under this division of the
amounts certified under division (I) of section 5751.20 of the
Revised Code shall continue until the levy adopted under section
5705.219 of the Revised Code expires.
(2) Beginning in 2006, by the 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 debt 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 department of education.
(F) Beginning in September 2007 and through June 2018 and for
each year thereafter, the director of budget and management shall
transfer from the school district tangible property tax
replacement fund to the general revenue fund each of the
following:
(1) On the first day of September, one-fourth of the amount
determined for that fiscal year under division (A)(1) of this
section;
(2) On the first day of December, one-fourth of the amount
determined for that fiscal year under division (A)(1) of this
section;
(3) On the first day of March, one-fourth of the amount
determined for that fiscal year under division (A)(1) of this
section;
(4) On the first day of June, one-fourth of the amount
determined for that fiscal year under division (A)(1) of this
section.
If, when a transfer is required under division (F)(1), (2),
(3), or (4) of this section, there is not sufficient money in the
school district tangible property tax replacement fund to make the
transfer in the required amount, the director shall transfer the
balance in the fund to the general revenue fund and may make
additional transfers on later dates as determined by the director
in a total amount that does not exceed one-fourth of the amount
determined for the fiscal year.
(G) For each of the fiscal years year beginning with fiscal
year 2006 through 2018, if the total amount in the school district
tangible property tax replacement fund is insufficient to make all
payments under divisions (C), (D), and (E) 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
school district tangible property tax replacement fund the
difference between the total amount to be paid and the amount in
the school district tangible property tax replacement fund. For
each fiscal year after 2018, at the time payments under division
(E) of this section are to be made, the director of budget and
management shall transfer from the general revenue fund to the
school district property tax replacement fund the amount necessary
to make such payments.
(H)(1) On the fifteenth day of June of 2006 through 2011, the
director of budget and management may transfer any balance in the
school district tangible property tax replacement fund to the
general revenue fund. At the end of fiscal years year 2012 through
2018 and each fiscal year thereafter, any balance in the school
district tangible property tax replacement fund shall remain in
the fund to be used in future fiscal years for school purposes.
(2) In each fiscal year beginning with fiscal year 2019, all
amounts credited to the school district tangible personal property
tax replacement fund shall be appropriated for school purposes.
(I) If all of the territory of a school district or joint
vocational school district is merged with another district, or if
a part of the territory of a school district or joint vocational
school district is transferred to an existing or newly created
district, the department of education, in consultation with the
tax commissioner, shall adjust the payments made under this
section as follows:
(1) For a merger of two or more districts, the machinery and
equipment, inventory, furniture and fixtures, and telephone
property fixed-rate levy losses and the fixed-sum levy losses of
the successor district shall be equal to the sum of the machinery
and equipment, inventory, furniture and fixtures, and telephone
property fixed-rate levy losses and debt levy losses as determined
in section 5751.20 of the Revised Code, for each of the districts
involved in the merger.
(2) If property is transferred from one district to a
previously existing district, the amount of machinery and
equipment, inventory, furniture and fixtures, and telephone
property tax value losses and fixed-rate levy losses that shall be
transferred to the recipient district shall be an amount equal to
the total machinery and equipment, inventory, furniture and
fixtures, and telephone property fixed-rate levy losses times a
fraction, the numerator of which is the value of business tangible
personal property on the land being transferred in the most recent
year for which data are available, and the denominator of which is
the total value of business tangible personal property in the
district from which the land is being transferred in the most
recent year for which data are available. For each of the first
five years after the property is transferred, but not after fiscal
year 2012, if the tax rate in the recipient district is less than
the tax rate of the district from which the land was transferred,
one-half of the payments arising from the amount of fixed-rate
levy losses so transferred to the recipient district shall be paid
to the recipient district and one-half of the payments arising
from the fixed-rate levy losses so transferred shall be paid to
the district from which the land was transferred. Fixed-rate levy
losses so transferred shall be computed on the basis of the sum of
the rates of fixed-rate qualifying levies of the district from
which the land was transferred, notwithstanding division (E) of
this section.
(3) After December 31, 2004, if property is transferred from
one or more districts to a district that is newly created out of
the transferred property, the newly created district shall be
deemed not to have any machinery and equipment, inventory,
furniture and fixtures, or telephone property fixed-rate levy
losses and the districts from which the property was transferred
shall have no reduction in their machinery and equipment,
inventory, furniture and fixtures, and telephone property
fixed-rate levy losses.
(4) If the recipient district under division (I)(2) of this
section or the newly created district under division (I)(3) of
this section is assuming debt from one or more of the districts
from which the property was transferred and any of the districts
losing the property had fixed-sum levy losses, the department of
education, in consultation with the tax commissioner, shall make
an equitable division of the fixed-sum levy loss reimbursements.
Section 2. That existing sections 5751.20 and 5751.21 of the
Revised Code are hereby repealed.
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