The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
Am. Sub. H. B. No. 375 As Passed by the HouseAs Passed by the House
130th General Assembly | Regular Session | 2013-2014 |
| |
Cosponsors:
Speaker Batchelder Representatives Hall, Grossman, Sears, Hayes, Boose, Beck, Stebelton, Hill, Wachtmann, Amstutz, Landis, Scherer, Baker, Buchy, Rosenberger, DeVitis, McClain, Sprague, Terhar
A BILL
To amend sections 1509.02, 1509.071, 1509.11,
1509.34, 1513.08, 1513.182, 1514.11, 5703.052,
5705.27, 5705.32, 5747.98, 5749.01, 5749.02,
5749.03, 5749.06, 5749.07, 5749.08, 5749.10,
5749.11, 5749.12, 5749.13, 5749.14, 5749.15, and
5751.01, to enact sections 187.14, 190.01 to
190.05, 321.50, 1509.075, 5747.56, 5747.63,
5749.031, and 5749.18, and to repeal section
1509.50 of the Revised Code to change the basis,
rates, and revenue distribution of the severance
tax on oil and gas, authorize an income tax credit
for oil or gas royalty holders, and to exclude
some oil and gas sale receipts from the commercial
activity tax base.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.02, 1509.071, 1509.11, 1509.34,
1513.08, 1513.182, 1514.11, 5703.052, 5705.27, 5705.32, 5747.98,
5749.01, 5749.02, 5749.03, 5749.06, 5749.07, 5749.08, 5749.10,
5749.11, 5749.12, 5749.13, 5749.14, 5749.15, and 5751.01 be
amended and sections 187.14, 190.01, 190.02, 190.03, 190.04,
190.05, 321.50, 1509.075, 5747.56, 5747.63, 5749.031, and 5749.18
of the Revised Code be enacted to read as follows:
Sec. 187.14. JobsOhio shall do both of the following:
(A) Determine the industries that may relocate to the state
to take advantage of inexpensive energy that is available in
counties with active oil and gas development, and research and
report on programs to encourage those industries to relocate to
those counties;
(B) Develop programs to encourage job creation related to the
industries described in division (A) of this section.
Sec. 190.01. As used in this chapter:
(A) "Subdivision" and "permanent improvement" have the same
meanings as in section 5705.01 of the Revised Code.
(B) "Eligible subdivision" means an eligible county or a
subdivision that is located in an eligible county.
(C) "Eligible county" means a county appearing on the most
recent determination certified by the chief of the division of oil
and gas resources management under division (C) of section 1509.11
of the Revised Code.
Sec. 190.02. (A) There is hereby created the Ohio shale gas
regional commission, which shall be composed of the following
eleven members:
(1) Three members appointed by the governor as follows:
(a) One county commissioner of an eligible county, selected
from a list of such commissioners submitted by the county
commissioners association of Ohio;
(b) One township trustee of a township that is an eligible
subdivision, selected from a list of such trustees submitted by
the Ohio township association;
(c) One member of the legislative authority of a municipal
corporation that is an eligible subdivision, selected from a list
of such members submitted by the Ohio municipal league.
(2) Four members appointed by the speaker of the house of
representatives as follows:
(a) One county commissioner of an eligible county, selected
from a list of such commissioners submitted by the county
commissioners association of Ohio;
(b) One township trustee of a township that is an eligible
subdivision, selected from a list of such trustees submitted by
the Ohio township association;
(c) One member of the legislative authority of a municipal
corporation that is an eligible subdivision, selected from a list
of such members submitted by the Ohio municipal league;
(d) One member representing an economic development
organization representing an area that includes one or more
eligible counties.
(3) Four members appointed by the president of the senate as
follows:
(a) One county commissioner of an eligible county, selected
from a list of such commissioners submitted by the county
commissioners association of Ohio;
(b) One township trustee of a township that is an eligible
subdivision, selected from a list of such trustees submitted by
the Ohio township association;
(c) One member of the legislative authority of a municipal
corporation that is an eligible subdivision, selected from a list
of such members submitted by the Ohio municipal league;
(d) One member representing the oil and gas industry.
(4) No two members of the commission may be representatives
of the same county, township, or municipal corporation.
(B) Members of the commission may be removed by the members'
appointing authority. Members may be reappointed to the
commission. For the first term occurring after the effective date
of this section:
(1) Members described in divisions (A)(1)(a), (2)(b), and
(3)(c) of this section shall serve a two-year term.
(2) Members described in divisions (A)(1)(b), (2)(c) and (d),
and (3)(a) of this section shall serve a three-year term.
(3) Members described in divisions (A)(1)(c), (2)(a), and
(3)(b) and (d) of this section shall serve a four-year term.
For every term thereafter, members shall serve four-year
terms. Any member appointed to the commission under this section
shall hold office until the later of the end of the term for which
the member is appointed or the date the member's successor takes
office. A vacancy occurring among the members shall be filled in
the same manner as the original appointment. Members of the
commission shall not be compensated or reimbursed for members'
expenses.
(C) At the first meeting, which shall occur not later than
one year after the effective date of this section, members of the
commission shall elect a chair. The commission shall meet annually
or more frequently at the call of the chair. A majority of the
commission constitutes a quorum. The commission is a public body
for purposes of section 121.22 of the Revised Code. Records of the
commission are public records for the purposes of section 149.43
of the Revised Code.
(D) Serving as a member of the Ohio shale gas regional
commission does not constitute holding a public office or position
of employment under the laws of this state and does not confer a
right to compensation from any agency of this state. A member of
the commission does not have an unlawful interest in a public
contract under section 2921.42 of the Revised Code solely because
the eligible subdivision of which the member is also a public
official receives a grant from the Ohio shale gas infrastructure
development fund or the severance tax legacy fund.
Sections 101.82 to 101.87 of the Revised Code do not apply to
the Ohio shale gas regional commission.
Sec. 190.03. There is hereby created in the state treasury
the Ohio shale gas infrastructure development fund. The fund shall
consist of moneys transferred to it from the local government
reimbursement fund under section 5747.56 of the Revised Code.
Money in the fund shall be used to award grants under section
190.05 of the Revised Code to eligible subdivisions exclusively to
pay for permanent improvements. Interest earned on the money in
the fund shall be credited to the fund.
Sec. 190.04. There is hereby created in the state treasury
the severance tax legacy fund. The fund shall consist of moneys
transferred to it from the local government reimbursement fund
under section 5747.56 of the Revised Code. The general assembly
shall not appropriate money from the fund until fiscal year 2025.
The general assembly shall not appropriate money from the
severance tax legacy fund for any fiscal year in excess of the
amount of interest earned by the fund in the preceding fiscal
year. Beginning fiscal year 2025, money in the fund shall be used
to award grants under section 190.05 of the Revised Code for
projects in subdivisions that are or were eligible subdivisions
for any fiscal year to foster long-term prosperity and a positive
legacy in the subdivision. Interest earned on the money in the
fund shall be credited to the fund.
Sec. 190.05. (A)(1) An eligible subdivision may submit a
request to the Ohio shale gas regional commission to receive a
grant from the Ohio shale gas infrastructure development fund to
fund permanent improvements. The commission shall review each
submitted request and recommend to the Ohio public works
commission whether the Ohio public works commission should approve
a grant from the fund to the requesting eligible subdivision to
pay all or a portion of the cost of permanent improvements.
(2) On or after July 1, 2024, a subdivision that is or has
been an eligible subdivision may submit a request to the Ohio
shale gas regional commission to receive a grant from the
severance tax legacy fund. The commission shall review each
submitted request and recommend to the Ohio public works
commission whether the Ohio public works commission should approve
a grant from the severance tax legacy fund to the requesting
subdivision.
(B) The Ohio public works commission shall not approve a
grant to a subdivision whose request does not meet the
requirements of this chapter. The director of the Ohio public
works commission shall notify the director of budget and
management of the amount of any grant awarded by the Ohio public
works commission under division (A) of this section.
Notwithstanding section 126.14 of the Revised Code, the director
of budget and management shall release appropriations from the
Ohio shale gas infrastructure development fund or the severance
tax legacy fund for the purpose of awarding a grant to a
subdivision on the presentation of a request to do so by the
director of the Ohio public works commission.
Sec. 321.50. Every county treasurer shall create in the
county treasury a severance tax infrastructure fund. The treasurer
shall deposit any money received by the treasurer under section
5747.56 of the Revised Code into the fund. The treasurer shall
notify the county auditor whenever the treasurer deposits money
into the fund.
Within ten days after receiving such a notice from the
treasurer, the auditor shall schedule a hearing of the county
budget commission and notify applicable taxing authorities as
provided in section 5705.27 of the Revised Code.
Sec. 1509.02. (A) There is hereby created in the department
of natural resources the division of oil and gas resources
management, which shall be administered by the chief of the
division of oil and gas resources management. The division has
sole and exclusive authority to regulate the permitting, location,
and spacing of oil and gas wells and production operations within
the state, excepting only those activities regulated under federal
laws for which oversight has been delegated to the environmental
protection agency and activities regulated under sections 6111.02
to 6111.028 of the Revised Code. The regulation of oil and gas
activities is a matter of general statewide interest that requires
uniform statewide regulation, and this chapter and rules adopted
under it constitute a comprehensive plan with respect to all
aspects of the locating, drilling, well stimulation, completing,
and operating of oil and gas wells within this state, including
site construction and restoration, permitting related to those
activities, and the disposal of wastes from those wells. In order
to assist the division in the furtherance of its sole and
exclusive authority as established in this section, the chief may
enter into cooperative agreements with other state agencies for
advice and consultation, including visitations at the surface
location of a well on behalf of the division. Such cooperative
agreements do not confer on other state agencies any authority to
administer or enforce this chapter and rules adopted under it. In
addition, such cooperative agreements shall not be construed to
dilute or diminish the division's sole and exclusive authority as
established in this section. Nothing in this section affects the
authority granted to the director of transportation and local
authorities in section 723.01 or 4513.34 of the Revised Code,
provided that the authority granted under those sections shall not
be exercised in a manner that discriminates against, unfairly
impedes, or obstructs oil and gas activities and operations
regulated under this chapter.
The chief shall not hold any other public office, nor shall
the chief be engaged in any occupation or business that might
interfere with or be inconsistent with the duties as chief.
All moneys The following shall be credited to the oil and gas
well fund, which is hereby created in the state treasury: all
money collected by the chief pursuant to sections 1509.06,
1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.222, 1509.28,
and 1509.34, and 1509.50 of the Revised Code, ninety per cent of
moneys received by the treasurer of state from the tax levied in
divisions (A)(5) and (6) of money transferred from the oil and gas
severance tax fund created in section 5749.02 of the Revised Code,
all civil penalties paid under section 1509.33 of the Revised
Code, and, notwithstanding any section of the Revised Code
relating to the distribution or crediting of fines for violations
of the Revised Code, all fines imposed under divisions (A) and (B)
of section 1509.99 of the Revised Code and fines imposed under
divisions (C) and (D) of section 1509.99 of the Revised Code for
all violations prosecuted by the attorney general and for
violations prosecuted by prosecuting attorneys that do not involve
the transportation of brine by vehicle shall be deposited into the
state treasury to the credit of the oil and gas well fund, which
is hereby created. Fines imposed under divisions (C) and (D) of
section 1509.99 of the Revised Code for violations prosecuted by
prosecuting attorneys that involve the transportation of brine by
vehicle and penalties associated with a compliance agreement
entered into pursuant to this chapter shall be paid to the county
treasury of the county where the violation occurred.
The fund shall be used solely and exclusively for the
purposes enumerated in division (B) of section 1509.071 of the
Revised Code, for the expenses of the division associated with the
administration of this chapter and Chapter 1571. of the Revised
Code and rules adopted under them, and for expenses that are
critical and necessary for the protection of human health and
safety and the environment related to oil and gas production in
this state. The expenses of the division in excess of the moneys
available in the fund shall be paid from general revenue fund
appropriations to the department.
(B) Not less than fourteen per cent of the revenue credited
to the oil and gas well fund from sources other than the oil and
gas severance tax fund shall be transferred to the well plugging
fund created in section 1509.075 of the Revised Code.
Sec. 1509.071. (A) When the chief of the division of oil and
gas resources management finds that an owner has failed to comply
with a final nonappealable order issued or compliance agreement
entered into under section 1509.04, the restoration requirements
of section 1509.072, plugging requirements of section 1509.12, or
permit provisions of section 1509.13 of the Revised Code, or rules
and orders relating thereto, the chief shall make a finding of
that fact and declare any surety bond filed to ensure compliance
with those sections and rules forfeited in the amount set by rule
of the chief. The chief thereupon shall certify the total
forfeiture to the attorney general, who shall proceed to collect
the amount of the forfeiture. In addition, the chief may require
an owner, operator, producer, or other person who forfeited a
surety bond to post a new surety bond in the amount of fifteen
thousand dollars for a single well, thirty thousand dollars for
two wells, or fifty thousand dollars for three or more wells.
In lieu of total forfeiture, the surety or owner, at the
surety's or owner's option, may cause the well to be properly
plugged and abandoned and the area properly restored or pay to the
treasurer of state the cost of plugging and abandonment.
(B) All moneys collected because of forfeitures of bonds as
provided in this section shall be deposited in the state treasury
to the credit of the oil and gas well fund created in section
1509.02 of the Revised Code.
The chief annually shall may spend not less than fourteen per
cent of the revenue credited to the oil and gas well fund during
the previous fiscal year for the following purposes:
(1) In accordance with division (D) of this section, to plug
idle and orphaned wells or to restore the land surface properly as
required in section 1509.072 of the Revised Code;
(2) In accordance with division (E) of this section, to
correct conditions that the chief reasonably has determined are
causing imminent health or safety risks at an idle and orphaned
well or a well for which the owner cannot be contacted in order to
initiate a corrective action within a reasonable period of time as
determined by the chief.
Expenditures from the fund shall be made only for lawful
purposes. In addition, expenditures from the fund shall not be
made to purchase real property or to remove a dwelling in order to
access a well.
(C)(1) Upon determining that the owner of a well has failed
to properly plug and abandon it or to properly restore the land
surface at the well site in compliance with the applicable
requirements of this chapter and applicable rules adopted and
orders issued under it or that a well is an abandoned well for
which no funds are available to plug the well in accordance with
this chapter, the chief shall do all of the following:
(a) Determine from the records in the office of the county
recorder of the county in which the well is located the identity
of the owner of the land on which the well is located, the
identity of the owner of the oil or gas lease under which the well
was drilled or the identity of each person owning an interest in
the lease, and the identities of the persons having legal title
to, or a lien upon, any of the equipment appurtenant to the well;
(b) Mail notice to the owner of the land on which the well is
located informing the landowner that the well is to be plugged. If
the owner of the oil or gas lease under which the well was drilled
is different from the owner of the well or if any persons other
than the owner of the well own interests in the lease, the chief
also shall mail notice that the well is to be plugged to the owner
of the lease or to each person owning an interest in the lease, as
appropriate.
(c) Mail notice to each person having legal title to, or a
lien upon, any equipment appurtenant to the well, informing the
person that the well is to be plugged and offering the person the
opportunity to plug the well and restore the land surface at the
well site at the person's own expense in order to avoid forfeiture
of the equipment to this state.
(2) If none of the persons described in division (C)(1)(c) of
this section plugs the well within sixty days after the mailing of
the notice required by that division, all equipment appurtenant to
the well is hereby declared to be forfeited to this state without
compensation and without the necessity for any action by the state
for use to defray the cost of plugging and abandoning the well and
restoring the land surface at the well site.
(D) Expenditures from the fund for the purpose of division
(B)(1) of this section shall be made in accordance with either of
the following:
(1) The expenditures may be made pursuant to contracts
entered into by the chief with persons who agree to furnish all of
the materials, equipment, work, and labor as specified and
provided in such a contract for activities associated with the
restoration or plugging of a well as determined by the chief. The
activities may include excavation to uncover a well, geophysical
methods to locate a buried well when clear evidence of leakage
from the well exists, cleanout of wellbores to remove material
from a failed plugging of a well, plugging operations,
installation of vault and vent systems, including associated
engineering certifications and permits, restoration of property,
and repair of damage to property that is caused by such
activities. Expenditures shall not be used for salaries,
maintenance, equipment, or other administrative purposes, except
for costs directly attributed to the plugging of an idle and
orphaned well. Agents or employees of persons contracting with the
chief for a restoration or plugging project may enter upon any
land, public or private, on which the well is located for the
purpose of performing the work. Prior to such entry, the chief
shall give to the following persons written notice of the
existence of a contract for a project to restore or plug a well,
the names of the persons with whom the contract is made, and the
date that the project will commence: the owner of the well, the
owner of the land upon which the well is located, the owner or
agents of adjoining land, and, if the well is located in the same
township as or in a township adjacent to the excavations and
workings of a mine and the owner or lessee of that mine has
provided written notice identifying those townships to the chief
at any time during the immediately preceding three years, the
owner or lessee of the mine.
(2)(a) The owner of the land on which a well is located who
has received notice under division (C)(1)(b) of this section may
plug the well and be reimbursed by the division of oil and gas
resources management for the reasonable cost of plugging the well.
In order to plug the well, the landowner shall submit an
application to the chief on a form prescribed by the chief and
approved by the technical advisory council on oil and gas created
in section 1509.38 of the Revised Code. The application, at a
minimum, shall require the landowner to provide the same
information as is required to be included in the application for a
permit to plug and abandon under section 1509.13 of the Revised
Code. The application shall be accompanied by a copy of a proposed
contract to plug the well prepared by a contractor regularly
engaged in the business of plugging oil and gas wells. The
proposed contract shall require the contractor to furnish all of
the materials, equipment, work, and labor necessary to plug the
well properly and shall specify the price for doing the work,
including a credit for the equipment appurtenant to the well that
was forfeited to the state through the operation of division
(C)(2) of this section. Expenditures under division (D)(2)(a) of
this section shall be consistent with the expenditures for
activities described in division (D)(1) of this section. The
application also shall be accompanied by the permit fee required
by section 1509.13 of the Revised Code unless the chief, in the
chief's discretion, waives payment of the permit fee. The
application constitutes an application for a permit to plug and
abandon the well for the purposes of section 1509.13 of the
Revised Code.
(b) Within thirty days after receiving an application and
accompanying proposed contract under division (D)(2)(a) of this
section, the chief shall determine whether the plugging would
comply with the applicable requirements of this chapter and
applicable rules adopted and orders issued under it and whether
the cost of the plugging under the proposed contract is
reasonable. If the chief determines that the proposed plugging
would comply with those requirements and that the proposed cost of
the plugging is reasonable, the chief shall notify the landowner
of that determination and issue to the landowner a permit to plug
and abandon the well under section 1509.13 of the Revised Code.
Upon approval of the application and proposed contract, the chief
shall transfer ownership of the equipment appurtenant to the well
to the landowner. The chief may disapprove an application
submitted under division (D)(2)(a) of this section if the chief
determines that the proposed plugging would not comply with the
applicable requirements of this chapter and applicable rules
adopted and orders issued under it, that the cost of the plugging
under the proposed contract is unreasonable, or that the proposed
contract is not a bona fide, arm's length contract.
(c) After receiving the chief's notice of the approval of the
application and permit to plug and abandon a well under division
(D)(2)(b) of this section, the landowner shall enter into the
proposed contract to plug the well.
(d) Upon determining that the plugging has been completed in
compliance with the applicable requirements of this chapter and
applicable rules adopted and orders issued under it, the chief
shall reimburse the landowner for the cost of the plugging as set
forth in the proposed contract approved by the chief. The
reimbursement shall be paid from the oil and gas well fund. If the
chief determines that the plugging was not completed in accordance
with the applicable requirements, the chief shall not reimburse
the landowner for the cost of the plugging, and the landowner or
the contractor, as applicable, promptly shall transfer back to
this state title to and possession of the equipment appurtenant to
the well that previously was transferred to the landowner under
division (D)(2)(b) of this section. If any such equipment was
removed from the well during the plugging and sold, the landowner
shall pay to the chief the proceeds from the sale of the
equipment, and the chief promptly shall pay the moneys so received
to the treasurer of state for deposit into the oil and gas well
fund.
The chief may establish an annual limit on the number of
wells that may be plugged under division (D)(2) of this section or
an annual limit on the expenditures to be made under that
division.
As used in division (D)(2) of this section, "plug" and
"plugging" include the plugging of the well and the restoration of
the land surface disturbed by the plugging.
(E) Expenditures from the oil and gas well fund for the
purpose of division (B)(2) of this section may be made pursuant to
contracts entered into by the chief with persons who agree to
furnish all of the materials, equipment, work, and labor as
specified and provided in such a contract. The competitive bidding
requirements of Chapter 153. of the Revised Code do not apply if
the chief reasonably determines that an emergency situation exists
requiring immediate action for the correction of the applicable
health or safety risk. A contract or purchase of materials for
purposes of addressing the emergency situation is not subject to
division (B) of section 127.16 of the Revised Code. The chief,
designated representatives of the chief, and agents or employees
of persons contracting with the chief under this division may
enter upon any land, public or private, for the purpose of
performing the work.
(F) Contracts entered into by the chief under this section
are not subject to any of the following:
(1) Chapter 4115. of the Revised Code;
(2) Section 153.54 of the Revised Code, except that the
contractor shall obtain and provide to the chief as a bid guaranty
a surety bond or letter of credit in an amount equal to ten per
cent of the amount of the contract;
(3) Section 4733.17 of the Revised Code.
(G) The owner of land on which a well is located who has
received notice under division (C)(1)(b) of this section, in lieu
of plugging the well in accordance with division (D)(2) of this
section, may cause ownership of the well to be transferred to an
owner who is lawfully doing business in this state and who has met
the financial responsibility requirements established under
section 1509.07 of the Revised Code, subject to the approval of
the chief. The transfer of ownership also shall be subject to the
landowner's filing the appropriate forms required under section
1509.31 of the Revised Code and providing to the chief sufficient
information to demonstrate the landowner's or owner's right to
produce a formation or formations. That information may include a
deed, a lease, or other documentation of ownership or property
rights.
The chief shall approve or disapprove the transfer of
ownership of the well. If the chief approves the transfer, the
owner is responsible for operating the well in accordance with
this chapter and rules adopted under it, including, without
limitation, all of the following:
(1) Filing an application with the chief under section
1509.06 of the Revised Code if the owner intends to drill deeper
or produce a formation that is not listed in the records of the
division for that well;
(2) Taking title to and possession of the equipment
appurtenant to the well that has been identified by the chief as
having been abandoned by the former owner;
(3) Complying with all applicable requirements that are
necessary to drill deeper, plug the well, or plug back the well.
(H) The chief shall issue an order that requires the owner of
a well to pay the actual documented costs of a corrective action
that is described in division (B)(2) of this section concerning
the well. The chief shall transmit the money so recovered to the
treasurer of state who shall deposit the money in the state
treasury to the credit of the oil and gas well fund.
(I) The chief may engage in cooperative projects under this
section with any agency of this state, another state, or the
United States; any other governmental agencies; or any state
university or college as defined in section 3345.27 of the Revised
Code. A contract entered into for purposes of a cooperative
project is not subject to division (B) of section 127.16 of the
Revised Code.
(J) On or before the last day of June of each year, the chief
shall deliver to the speaker of the house of representatives and
the president of the senate a report listing the projected amount
of money to be spent from the oil or gas well fund or the well
plugging fund to plug each idle or orphaned well that the chief
estimates will begin to be plugged in the following fiscal year
and the locations of such wells, and the number and location of
all idle or orphaned wells plugged in the preceding fiscal year
using money from the oil or gas well fund or the well plugging
fund and the amount spent from each fund to plug such wells.
Sec. 1509.075. (A) There is hereby created in the division
of oil and gas resources management the idle and orphaned well
program. The chief shall provide staff for the program sufficient
to identify, locate, and plug idle and orphaned wells located in
this state and perform the duties required under this section.
(B) Subject to the supervision of the chief, the idle and
orphaned well program shall do both of the following:
(1) Develop and maintain an inventory of all known and
suspected idle and orphaned wells located in this state;
(2) Prioritize the plugging of idle and orphaned wells
identified in that inventory based on the relative risk of those
wells to public health and safety.
(C) There is hereby created in the state treasury the well
plugging fund, which shall consist of money transferred to the
fund from the oil and gas severance tax fund under division (D)(7)
of section 5749.02 of the Revised Code and the oil and gas well
fund under division (B) of section 1509.02 of the Revised Code.
The chief shall use the money in the well plugging fund
exclusively for the purposes described in division (B) of section
1509.071 of the Revised Code and subject to the requirements and
limitations imposed by that section related to the expenditure of
funds for those purposes.
Expenditures from the fund shall be made only for lawful
purposes and shall not be made to purchase real property or to
remove a dwelling in order to access a well.
Sec. 1509.11. (A)(1) The owner of any well, except a
horizontal well, that is producing or capable of producing oil or
gas shall file with the chief of the division of oil and gas
resources management, on or before the thirty-first day of March,
a statement of production of oil, gas, and brine for the last
preceding calendar year in such form as the chief may prescribe.
An owner that has more than one hundred such wells in this state
shall submit electronically the statement of production in a
format that is approved by the chief. The chief shall include on
the form, at the minimum, a request for the submittal of the
information that a person who is regulated under this chapter is
required to submit under the "Emergency Planning and Community
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and
regulations adopted under it, and that the division of oil and gas
resources management does not obtain through other reporting
mechanisms.
(2) The owner of any horizontal well that is producing or
capable of producing oil or gas shall file with the chief, on the
forty-fifth day following the close of each calendar quarter, a
statement of production of oil, gas, and brine for the preceding
calendar quarter in a form that the chief prescribes. An owner
that has more than one hundred horizontal wells in this state
shall submit electronically the statement of production in a
format that is approved by the chief. The chief shall include on
the form, at a minimum, a request for the submittal of the
information that a person who is regulated under this chapter is
required to submit under the "Emergency Planning and Community
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C. 11001, and
regulations adopted under it, and that the division does not
obtain through other reporting mechanisms.
(B) The chief shall not disclose information received from
the department of taxation under division (C)(12) of section
5703.21 of the Revised Code until the related statement of
production required by division (A) of this section is filed with
the chief.
(C) Not later than the fifteenth day of June of each year,
the chief shall determine the counties in the state in which at
least one well producing oil or gas in the Utica or Marcellus
formation in the preceding calendar year was located and certify
that determination to the chair of the Ohio shale gas regional
commission and the director of the Ohio public works commission.
(D) The chief, through the idle and orphaned well program,
shall investigate a well to determine if it is an idle or orphaned
well if either of the following occurs, unless the well is under
temporary inactive well status pursuant to section 1509.062 of the
Revised Code:
(1) If the well is not a horizontal well, the owner of the
well does not submit a statement of production required under
division (A)(1) of this section for two consecutive years.
(2) If the well is a horizontal well, the owner of the well
does not submit a statement of production required under division
(A)(2) of this section for eight consecutive calendar quarters.
Sec. 1509.34. (A)(1) If an owner fails to pay the fees
imposed by this chapter, or if the chief of the division of oil
and gas resources management incurs costs under division (E) of
section 1509.071 of the Revised Code to correct conditions
associated with the owner's well that the chief reasonably has
determined are causing imminent health or safety risks, the
division of oil and gas resources management shall have a priority
lien against that owner's interest in the applicable well in front
of all other creditors for the amount of any such unpaid fees and
costs incurred. The chief shall file a statement in the office of
the county recorder of the county in which the applicable well is
located of the amount of the unpaid fees and costs incurred as
described in this division. The statement shall constitute a lien
on the owner's interest in the well as of the date of the filing.
The lien shall remain in force so long as any portion of the lien
remains unpaid or until the chief issues a certificate of release
of the lien. If the chief issues a certificate of release of the
lien, the chief shall file the certificate of release in the
office of the applicable county recorder.
(2) A lien imposed under division (A)(1) of this section
shall be in addition to any lien imposed by the attorney general
for failure to pay the assessment imposed by section 1509.50 of
the Revised Code or the tax levied under division (A)(B)(5) or (6)
or (C) of section 5749.02 of the Revised Code, as applicable.
(3) If the attorney general cannot collect from a severer or
an owner for an outstanding balance of amounts due under section
1509.50 of the Revised Code or of unpaid taxes levied under
division (A)(B)(5) or (6) or (C) of section 5749.02 of the Revised
Code, as applicable, the tax commissioner may request the chief to
impose a priority lien against the owner's interest in the
applicable well. Such a lien has priority in front of all other
creditors.
(B) The chief promptly shall issue a certificate of release
of a lien under either of the following circumstances:
(1) Upon the repayment in full of the amount of unpaid fees
imposed by this chapter or costs incurred by the chief under
division (E) of section 1509.071 of the Revised Code to correct
conditions associated with the owner's well that the chief
reasonably has determined are causing imminent health or safety
risks;
(2) Any other circumstance that the chief determines to be in
the best interests of the state.
(C) The chief may modify the amount of a lien under this
section. If the chief modifies a lien, the chief shall file a
statement in the office of the county recorder of the applicable
county of the new amount of the lien.
(D) An owner regarding which the division has recorded a lien
against the owner's interest in a well in accordance with this
section shall not transfer a well, lease, or mineral rights to
another owner or person until the chief issues a certificate of
release for each lien against the owner's interest in the well.
(E) All money from the collection of liens under this section
shall be deposited in the state treasury to the credit of the oil
and gas well fund created in section 1509.02 of the Revised Code.
Sec. 1513.08. (A) After a coal mining and reclamation permit
application has been approved, the applicant shall file with the
chief of the division of mineral resources management, on a form
prescribed and furnished by the chief, the performance security
required under this section that shall be payable to the state and
conditioned on the faithful performance of all the requirements of
this chapter and rules adopted under it and the terms and
conditions of the permit.
(B) Using the information contained in the permit
application; the requirements contained in the approved permit and
reclamation plan; and, after considering the topography, geology,
hydrology, and revegetation potential of the area of the approved
permit, the probable difficulty of reclamation; the chief shall
determine the estimated cost of reclamation under the initial term
of the permit if the reclamation has to be performed by the
division of mineral resources management in the event of
forfeiture of the performance security by the applicant. The chief
shall send written notice of the amount of the estimated cost of
reclamation by certified mail to the applicant. The applicant
shall send written notice to the chief indicating the method by
which the applicant will provide the performance security pursuant
to division (C) of this section.
(C) The applicant shall provide the performance security in
an amount using one of the following:
(1) If the applicant elects to provide performance security
without reliance on the reclamation forfeiture fund created in
section 1513.18 of the Revised Code, the amount of the estimated
cost of reclamation as determined by the chief under division (B)
of this section for the increments of land on which the operator
will conduct a coal mining and reclamation operation under the
initial term of the permit as indicated in the application;
(2) If the applicant elects to provide performance security
together with reliance on the reclamation forfeiture fund through
payment of the additional tax on the severance of coal that is
levied under division (A)(B)(8) of section 5749.02 of the Revised
Code, an amount of twenty-five hundred dollars per acre of land on
which the operator will conduct coal mining and reclamation under
the initial term of the permit as indicated in the application.
However, in order for an applicant to be eligible to provide
performance security in accordance with division (C)(2) of this
section, the applicant, an owner and controller of the applicant,
or an affiliate of the applicant shall have held a permit issued
under this chapter for any coal mining and reclamation operation
for a period of not less than five years. In the event of
forfeiture of performance security that was provided in accordance
with division (C)(2) of this section, the difference between the
amount of that performance security and the estimated cost of
reclamation as determined by the chief under division (B) of this
section shall be obtained from money in the reclamation forfeiture
fund as needed to complete the reclamation.
The performance security provided under division (C) of this
section for the entire area to be mined under one permit issued
under this chapter shall not be less than ten thousand dollars.
The performance security shall cover areas of land affected
by mining within or immediately adjacent to the permitted area, so
long as the total number of acres does not exceed the number of
acres for which the performance security is provided. However, the
authority for the performance security to cover areas of land
immediately adjacent to the permitted area does not authorize a
permittee to mine areas outside an approved permit area. As
succeeding increments of coal mining and reclamation operations
are to be initiated and conducted within the permit area, the
permittee shall file with the chief additional performance
security to cover the increments in accordance with this section.
If a permittee intends to mine areas outside the approved permit
area, the permittee shall provide additional performance security
in accordance with this section to cover the areas to be mined.
If an applicant or permittee has not held a permit issued
under this chapter for any coal mining and reclamation operation
for a period of five years or more, the applicant or permittee
shall provide performance security in accordance with division
(C)(1) of this section in the full amount of the estimated cost of
reclamation as determined by the chief for a permitted coal
preparation plant or coal refuse disposal area that is not located
within a permitted area of a mine. If an applicant for a permit
for a coal preparation plant or coal refuse disposal area or a
permittee of a permitted coal preparation plant or coal refuse
disposal area that is not located within a permitted area of a
mine has held a permit issued under this chapter for any coal
mining and reclamation operation for a period of five years or
more, the applicant or permittee may provide performance security
for the coal preparation plant or coal refuse disposal area either
in accordance with division (C)(1) of this section in the full
amount of the estimated cost of reclamation as determined by the
chief or in accordance with division (C)(2) of this section in an
amount of twenty-five hundred dollars per acre of land with
reliance on the reclamation forfeiture fund. If a permittee has
previously provided performance security under division (C)(1) of
this section for a coal preparation plant or coal refuse disposal
area that is not located within a permitted area of a mine and
elects to provide performance security in accordance with division
(C)(2) of this section, the permittee shall submit written notice
to the chief indicating that the permittee elects to provide
performance security in accordance with division (C)(2) of this
section. Upon receipt of such a written notice, the chief shall
release to the permittee the amount of the performance security
previously provided under division (C)(1) of this section that
exceeds the amount of performance security that is required to be
provided under division (C)(2) of this section.
(D) A permittee's liability under the performance security
shall be limited to the obligations established under the permit,
which include completion of the reclamation plan in order to make
the land capable of supporting the postmining land use that was
approved in the permit. The period of liability under the
performance security shall be for the duration of the coal mining
and reclamation operation and for a period coincident with the
operator's responsibility for revegetation requirements under
section 1513.16 of the Revised Code.
(E) The amount of the estimated cost of reclamation
determined under division (B) of this section and the amount of a
permittee's performance security provided in accordance with
division (C)(1) of this section shall be adjusted by the chief as
the land that is affected by mining increases or decreases or if
the cost of reclamation increases or decreases. If the performance
security was provided in accordance with division (C)(2) of this
section and the chief has issued a cessation order under division
(D)(2) of section 1513.02 of the Revised Code for failure to abate
a violation of the contemporaneous reclamation requirement under
division (A)(15) of section 1513.16 of the Revised Code, the chief
may require the permittee to increase the amount of performance
security from twenty-five hundred dollars per acre of land to five
thousand dollars per acre of land.
The chief shall notify the permittee, each surety, and any
person who has a property interest in the performance security and
who has requested to be notified of any proposed adjustment to the
performance security. The permittee may request an informal
conference with the chief concerning the proposed adjustment, and
the chief shall provide such an informal conference.
If the chief increases the amount of performance security
under this division, the permittee shall provide additional
performance security in an amount determined by the chief. If the
chief decreases the amount of performance security under this
division, the chief shall determine the amount of the reduction of
the performance security and send written notice of the amount of
reduction to the permittee. The permittee may reduce the amount of
the performance security in the amount determined by the chief.
(F) A permittee may request a reduction in the amount of the
performance security by submitting to the chief documentation
proving that the amount of the performance security provided by
the permittee exceeds the estimated cost of reclamation if the
reclamation would have to be performed by the division in the
event of forfeiture of the performance security. The chief shall
examine the documentation and determine whether the permittee's
performance security exceeds the estimated cost of reclamation. If
the chief determines that the performance security exceeds that
estimated cost, the chief shall determine the amount of the
reduction of the performance security and send written notice of
the amount to the permittee. The permittee may reduce the amount
of the performance security in the amount determined by the chief.
Adjustments in the amount of performance security under this
division shall not be considered release of performance security
and are not subject to section 1513.16 of the Revised Code.
(G) If the performance security is a bond, it shall be
executed by the operator and a corporate surety licensed to do
business in this state. If the performance security is a cash
deposit or negotiable certificates of deposit of a bank or savings
and loan association, the bank or savings and loan association
shall be licensed and operating in this state. The cash deposit or
market value of the securities shall be equal to or greater than
the amount of the performance security required under this
section. The chief shall review any documents pertaining to the
performance security and approve or disapprove the documents. The
chief shall notify the applicant of the chief's determination.
(H) If the performance security is a bond, the chief may
accept the bond of the applicant itself without separate surety
when the applicant demonstrates to the satisfaction of the chief
the existence of a suitable agent to receive service of process
and a history of financial solvency and continuous operation
sufficient for authorization to self-insure or bond the amount.
(I) Performance security provided under this section may be
held in trust, provided that the state is the primary beneficiary
of the trust and the custodian of the performance security held in
trust is a bank, trust company, or other financial institution
that is licensed and operating in this state. The chief shall
review the trust document and approve or disapprove the document.
The chief shall notify the applicant of the chief's determination.
(J) If a surety, bank, savings and loan association, trust
company, or other financial institution that holds the performance
security required under this section becomes insolvent, the
permittee shall notify the chief of the insolvency, and the chief
shall order the permittee to submit a plan for replacement
performance security within thirty days after receipt of notice
from the chief. If the permittee provided performance security in
accordance with division (C)(1) of this section, the permittee
shall provide the replacement performance security within ninety
days after receipt of notice from the chief. If the permittee
provided performance security in accordance with division (C)(2)
of this section, the permittee shall provide the replacement
performance security within one year after receipt of notice from
the chief, and, for a period of one year after the permittee's
receipt of notice from the chief or until the permittee provides
the replacement performance security, whichever occurs first,
money in the reclamation forfeiture fund shall be the permittee's
replacement performance security in an amount not to exceed the
estimated cost of reclamation as determined by the chief.
(K) If a permittee provided performance security in
accordance with division (C)(1) of this section, the permittee's
responsibility for repairing material damage and replacement of
water supply resulting from subsidence shall be satisfied by
either of the following:
(1) The purchase prior to mining of a noncancelable
premium-prepaid liability insurance policy in lieu of the
permittee's performance security for subsidence damage. The
insurance policy shall contain terms and conditions that
specifically provide coverage for repairing material damage and
replacement of water supply resulting from subsidence.
(2) The provision of additional performance security in the
amount of the estimated cost to the division of mineral resources
management to repair material damage and replace water supplies
resulting from subsidence until the repair or replacement is
completed. However, if such repair or replacement is completed, or
compensation for structures that have been damaged by subsidence
is provided, by the permittee within ninety days of the occurrence
of the subsidence, additional performance security is not
required. In addition, the chief may extend the ninety-day period
for a period not to exceed one year if the chief determines that
the permittee has demonstrated in writing that subsidence is not
complete and that probable subsidence-related damage likely will
occur and, as a result, the completion of repairs of
subsidence-related material damage to lands or protected
structures or the replacement of water supply within ninety days
of the occurrence of the subsidence would be unreasonable.
(L) If the performance security provided in accordance with
this section exceeds the estimated cost of reclamation, the chief
may authorize the amount of the performance security that exceeds
the estimated cost of reclamation together with any interest or
other earnings on the performance security to be paid to the
permittee.
(M) A permittee that held a valid coal mining and reclamation
permit immediately prior to April 6, 2007, shall provide, not
later than a date established by the chief, performance security
in accordance with division (C)(1) or (2) of this section, rather
than in accordance with the law as it existed prior to that date,
by filing it with the chief on a form that the chief prescribes
and furnishes. Accordingly, for purposes of this section,
"applicant" is deemed to include such a permittee.
(N) As used in this section:
(1) "Affiliate of the applicant" means an entity that has a
parent entity in common with the applicant.
(2) "Owner and controller of the applicant" means a person
that has any relationship with the applicant that gives the person
authority to determine directly or indirectly the manner in which
the applicant conducts coal mining operations.
Sec. 1513.182. (A) There is hereby created the reclamation
forfeiture fund advisory board consisting of the director of
natural resources, the director of insurance, and seven members
appointed by the governor with the advice and consent of the
senate. Of the governor's appointments, one shall be a certified
public accountant, one shall be a registered professional engineer
with experience in reclamation of mined land, two shall represent
agriculture, agronomy, or forestry, one shall be a representative
of operators of coal mining operations that have valid permits
issued under this chapter and that have provided performance
security under division (C)(1) of section 1513.08 of the Revised
Code, one shall be a representative of operators of coal mining
operations that have valid permits issued under this chapter and
that have provided performance security under division (C)(2) of
section 1513.08 of the Revised Code, and one shall be a
representative of the public.
Of the original members appointed by the governor, two shall
serve an initial term of two years, three an initial term of three
years, and two an initial term of four years. Thereafter, terms of
appointed members shall be for four years, with each term ending
on the same date as the original date of appointment. An appointed
member shall hold office from the date of appointment until the
end of the term for which the member was appointed. Vacancies
shall be filled in the same manner as original appointments. A
member appointed to fill a vacancy occurring prior to the
expiration of the term for which the member's predecessor was
appointed shall hold office for the remainder of that term. A
member shall continue in office subsequent to the expiration date
of the member's term until the member's successor takes office or
until a period of sixty days has elapsed, whichever occurs first.
The governor may remove an appointed member of the board for
misfeasance, nonfeasance, or malfeasance.
The directors of natural resources and insurance shall not
receive compensation for serving on the board, but shall be
reimbursed for the actual and necessary expenses incurred in the
performance of their duties as members of the board. The members
appointed by the governor shall receive per diem compensation
fixed pursuant to division (J) of section 124.15 of the Revised
Code and reimbursement for the actual and necessary expenses
incurred in the performance of their duties.
(B) The board annually shall elect from among its members a
chairperson, a vice-chairperson, and a secretary to record the
board's meetings.
(C) The board shall hold meetings as often as necessary as
the chairperson or a majority of the members determines.
(D) The board shall establish procedures for conducting
meetings and for the election of its chairperson,
vice-chairperson, and secretary.
(E) The board shall do all of the following:
(1) Review the deposits into and expenditures from the
reclamation forfeiture fund created in section 1513.18 of the
Revised Code;
(2) Retain periodically a qualified actuary to perform an
actuarial study of the reclamation forfeiture fund;
(3) Based on an actuarial study and as determined necessary
by the board, adopt rules in accordance with Chapter 119. of the
Revised Code to adjust the rate of the tax levied under division
(A)(B)(8) of section 5749.02 of the Revised Code and the balance
of the reclamation forfeiture fund that pertains to that rate;
(4) Evaluate any rules, procedures, and methods for
estimating the cost of reclamation for purposes of determining the
amount of performance security that is required under section
1513.08 of the Revised Code; the collection of forfeited
performance security; payments to the reclamation forfeiture fund;
reclamation of sites for which operators have forfeited the
performance security; and the compliance of operators with their
reclamation plans;
(5) Provide a forum for discussion of issues related to the
reclamation forfeiture fund and the performance security that is
required under section 1513.08 of the Revised Code;
(6) Submit a report biennially to the governor that describes
the financial status of the reclamation forfeiture fund and the
adequacy of the amount of money in the fund to accomplish the
purposes of the fund and that may discuss any matter related to
the performance security that is required under section 1513.08 of
the Revised Code;
(7) Make recommendations to the governor, if necessary, of
alternative methods of providing money for or using money in the
reclamation forfeiture fund and issues related to the reclamation
of land or water resources that have been adversely affected by
past coal mining for which the performance security was forfeited;
(8) Adopt rules in accordance with Chapter 119. of the
Revised Code that are necessary to administer this section.
Sec. 1514.11. In addition to the purposes authorized in
section 1514.06 of the Revised Code, the chief of the division of
mineral resources management may use moneys in the surface mining
fund created under that section for the administration and
enforcement of this chapter, for the reclamation of land affected
by surface or in-stream mining under a permit issued under this
chapter that the operator failed to reclaim and for which the
performance bond filed by the operator is insufficient to complete
the reclamation, and for the reclamation of land affected by
surface or in-stream mining that was abandoned and left
unreclaimed and for which no permit was issued or bond filed under
this chapter. Also, the chief may use the portion of the surface
mining fund that consists of moneys collected from the severance
taxes levied under section 5749.02 of the Revised Code for mine
safety and first aid training. For purposes of this section, the
chief shall expend moneys in the fund in accordance with the
procedures and requirements established in section 1514.06 of the
Revised Code and may enter into contracts and perform work in
accordance with that section.
Fees collected under sections 1514.02 and 1514.03 of the
Revised Code, one-half of the moneys collected from the severance
taxes levied under divisions (A)(B)(3) and (4) of section 5749.02
of the Revised Code, and all of the moneys collected from the
severance tax levied under division (A)(B)(7) of section 5749.02
of the Revised Code shall be credited to the fund in accordance
with those sections. Notwithstanding any section of the Revised
Code relating to the distribution or crediting of fines for
violations of the Revised Code, all fines imposed under section
1514.99 of the Revised Code shall be credited to the fund.
Sec. 5703.052. (A) There is hereby created in the state
treasury the tax refund fund, from which refunds shall be paid for
taxes illegally or erroneously assessed or collected, or for any
other reason overpaid, that are levied by Chapter 4301., 4305.,
5726., 5728., 5729., 5731., 5733., 5735., 5736., 5739., 5741.,
5743., 5747., 5748., 5749., 5751., or 5753. and sections 3737.71,
3905.35, 3905.36, 4303.33, 5707.03, 5725.18, 5727.28, 5727.38,
5727.81, and 5727.811 of the Revised Code. Refunds for fees or
wireless 9-1-1 charges illegally or erroneously assessed or
collected, or for any other reason overpaid, that are levied by
sections 128.42 or 3734.90 to 3734.9014 of the Revised Code also
shall be paid from the fund. Refunds for amounts illegally or
erroneously assessed or collected by the tax commissioner, or for
any other reason overpaid, that are due under former section
1509.50 of the Revised Code as that section existed before its
repeal by H.B. 375 of the 130th general assembly shall be paid
from the fund. However, refunds for taxes levied under section
5739.101 of the Revised Code shall not be paid from the tax refund
fund, but shall be paid as provided in section 5739.104 of the
Revised Code.
(B)(1) Upon certification by the tax commissioner to the
treasurer of state of a tax refund, a wireless 9-1-1 charge
refund, or another amount refunded, or by the superintendent of
insurance of a domestic or foreign insurance tax refund, the
treasurer of state shall place the amount certified to the credit
of the fund. The certified amount transferred shall be derived
from the receipts of the same tax, fee, wireless 9-1-1 charge, or
other amount from which the refund arose.
(2) When a refund is for a tax, fee, wireless 9-1-1 charge,
or other amount that is not levied by the state or that was
illegally or erroneously distributed to a taxing jurisdiction, the
tax commissioner shall recover the amount of that refund from the
next distribution of that tax, fee, wireless 9-1-1 charge, or
other amount that otherwise would be made to the taxing
jurisdiction. If the amount to be recovered would exceed
twenty-five per cent of the next distribution of that tax, fee,
wireless 9-1-1 charge, or other amount, the commissioner may
spread the recovery over more than one future distribution, taking
into account the amount to be recovered and the amount of the
anticipated future distributions. In no event may the commissioner
spread the recovery over a period to exceed twenty-four months.
Sec. 5705.27. There is hereby created in each county a
county budget commission consisting of the county auditor, the
county treasurer, and the prosecuting attorney. Upon petition
filed with the board of elections, signed by the number of
electors of the county equal in amount to three per cent of the
total number of votes cast for governor at the most recent
election therefor, there shall be submitted to the electors of the
county at the next general election occurring not sooner than
ninety days after the filing of the petition, the question "Shall
the county budget commission consist of two additional members to
be elected from the county?" Provision shall be made on the ballot
for the election from the county at large of two additional
members of the county budget commission who shall be electors of
the county if a majority of the electors voting on the question
shall have voted in the affirmative. In such counties, where the
electors have voted in the affirmative, the county budget
commission shall consist of such two elected members in addition
to the county auditor, the county treasurer and the prosecuting
attorney. Such members, who shall not hold any other public
office, shall serve for a term of four years. The
The commission shall meet at the office of the county auditor
in each county on the first Monday in February and on the first
Monday in August, annually, and shall complete its work on or
before the first day of September, annually, unless for good cause
the tax commissioner extends the time for completing the work. A
The commission shall meet at the call of the county auditor to
hold a hearing not later than forty days following the deposit of
any money into the severance tax infrastructure fund created under
section 321.50 of the Revised Code for the purpose of distributing
such money to subdivisions in accordance with division (G) of
section 5705.32 of the Revised Code. At least thirty days before
the hearing, the auditor shall notify the taxing authorities of
all subdivisions located in the county that money has been
deposited in the severance tax infrastructure fund and that each
taxing authority receiving notice may appear and testify to
demonstrate the subdivision's need, if any, for such money to pay
for permanent improvements or for reconstructing, improving,
repairing, or equipping roads or bridges. The notification shall
require a subdivision to respond within fifteen days after the
auditor sends the notification to the subdivision notifying the
auditor that a representative of the subdivision will appear and
give testimony or evidence at the hearing. If no subdivision
responds within this period, the commission may cancel the
scheduled hearing. In any event, the commission shall proceed as
provided in division (G) of section 5705.32 of the Revised Code.
A majority of members shall constitute a quorum, provided
that no action of the commission shall be valid unless agreed to
by a majority of the members of the commission. The auditor shall
be the secretary of the commission and shall keep a full and
accurate record of all proceedings. The
The county auditor shall appoint such messengers and clerks
as the commission deems necessary, and the budget commissioners
shall be allowed their actual and necessary expenses. The elected
members of the commission shall also receive twenty dollars for
each day in attendance at commission meetings and in discharge of
official duties. Any vacancy among such elected members shall be
filled by the presiding judge of the court of common pleas. In
In adjusting the rates of taxation and fixing the amount of
taxes to be levied each year, the commissioners shall be governed
by the amount of the taxable property shown on the auditor's tax
list for the current year; provided that if the auditor's tax list
has not been completed, the auditor shall estimate, as nearly as
practicable, the amount of the taxable property for such year, and
such officers shall be governed by such estimate.
In any county in which two members of the commission are
elected, upon petition filed with the board of elections, signed
by the number of electors of the county equal in amount to three
per cent of the votes cast for governor at the most recent
election therefor, there shall be submitted to the electors of the
county at the next general election occurring not sooner than
ninety days after the filing of the petition, the question "Shall
the elected members be eliminated from the county budget
commission?" If the majority of the electors voting thereon shall
have voted in the affirmative, the county budget commission shall
consist solely of the county auditor, the county treasurer, and
the prosecuting attorney.
Sec. 5705.32. (A) The county budget commission shall adjust
the estimated amounts required from the general property tax for
each fund, as shown by the tax budgets or other information
required to be provided under section 5705.281 of the Revised
Code, so as to bring the tax levies required therefor within the
limitations specified in sections 5705.01 to 5705.47 of the
Revised Code, for such levies, but no levy shall be reduced below
a minimum fixed by law. The commission may revise and adjust the
estimate of balances and receipts from all sources for each fund
and shall determine the total appropriations that may be made
therefrom.
(B) The commission shall fix the amount of the county public
library fund to be distributed to each board of public library
trustees that has qualified under section 5705.28 of the Revised
Code for participation in the proceeds of such fund. The amount
paid to all libraries in the county from such fund shall never be
a smaller per cent of the fund than the average of the percentages
of the county's classified taxes that were distributed to
libraries in 1982, 1983, and 1984, as determined by the county
auditor. The commission shall base the amount for distribution on
the needs of such library for the construction of new library
buildings, parts of buildings, improvements, operation,
maintenance, or other expenses. In determining the needs of each
library board of trustees, and in calculating the amount to be
distributed to any library board of trustees on the basis of its
needs, the commission shall make no reduction in its allocation
from the fund on account of additional revenues realized by a
library from increased taxes or service charges voted by its
electorate, from revenues received through federal or state
grants, projects, or programs, or from grants from private
sources.
(C) Notwithstanding the fact that alternative methods of
financing such needs are available, after fixing the amount to be
distributed to libraries, the commission shall fix the amount, if
any, of the county public library fund to be distributed to each
board of township park commissioners, the county, and each
municipal corporation in accordance with the following:
(1) Each municipal corporation in the county shall receive a
per cent of the remainder that equals the per cent that the county
auditor determines the classified property taxes originating in
such municipal corporation in 1984 were of the total of all of the
county's classified property taxes in 1984. The commission may
deduct from this amount any amount that the budget commission
allows to the board of township park commissioners of a township
park district, the boundaries of which are coextensive with or
contained within the boundaries of the municipal corporation.
(2) The county shall receive a per cent of the remainder that
equals the per cent that the county auditor determines the
classified property taxes originating outside of the boundaries of
municipal corporations in the county in 1984 were of the total of
all of the county's classified property taxes in 1984. The
commission may deduct from this amount any amount that the budget
commission allows to the board of township park commissioners of a
township park district, the boundaries of which are not
coextensive with or contained within those of any municipal
corporation in the county.
(D) The commission shall separately set forth the amounts
fixed and determined under divisions (B) and (C) of this section
in the "official certificate of estimated resources," as provided
in section 5705.35 of the Revised Code, and separately certify
such amount to the county auditor who shall be guided thereby in
the distribution of the county public library fund for and during
the fiscal year. In determining such amounts, the commission shall
be guided by the estimate certified by the tax commissioner and
presented by the auditor under section 5705.31 of the Revised
Code, as to the total amount of revenue to be received in the
county public library fund during such fiscal year.
(E)(1) At least five days before the date of any meeting at
which the budget commission plans to discuss the distribution of
the county public library fund, it shall notify each legislative
authority and board of public library trustees, county
commissioners, and township park commissioners eligible to
participate in the distribution of the fund of the date, time,
place, and agenda for the meeting. Any legislative authority or
board entitled to notice under this division may designate an
officer or employee of such legislative authority or board to whom
the commission shall deliver the notice.
(2) Before the final determination of the amount to be
allotted to each subdivision from any source, the commission shall
permit representatives of each subdivision and of each board of
public library trustees to appear before it to explain its
financial needs.
(F) If any public library receives and expends any funds
allocated to it under this section for the construction of new
library buildings or parts of buildings, such library shall be
free and open to the inhabitants of the county in which it is
located. Any board of library trustees that receives funds under
this section and section 5747.48 of the Revised Code shall have
its financial records open for public inspection at all reasonable
times.
(G)(1) A representative of a subdivision that has responded
to the notice of a hearing as provided in section 5705.27 of the
Revised Code may appear and give testimony and evidence
demonstrating the need of the subdivision for money from the
severance tax infrastructure fund to pay for permanent
improvements or for reconstructing, improving, repairing, or
equipping roads or bridges.
Subject to division (G)(2) of this section, the commission
shall determine the amount, if any, to be distributed to each
subdivision represented at the hearing on the basis of the
testimony and evidence presented, and shall issue an order to the
county treasurer distributing all or a portion of the money in the
severance tax infrastructure fund to such subdivisions. An order
of the commission under this division may not be appealed. If the
commission canceled the hearing because no subdivisions responded
to the notice, the commission shall hold a meeting to determine
whether money in the fund shall be distributed and, if so, the
amounts to be distributed, based on any information in the
commission's possession.
The county treasurer shall distribute money in the severance
tax infrastructure fund in accordance with the order of the
commission. A taxing authority may use money received from the
severance tax infrastructure fund to pay for permanent
improvements or for reconstructing, improving, repairing, or
equipping roads or bridges.
(2) The county budget commission shall distribute at least
twenty per cent of any revenue deposited in the severance tax
infrastructure fund to one or more townships for the purpose of
reconstructing, improving, repairing, or equipping roads or
bridges owned by the township, the necessity of which is directly
associated with the presence of producing oil and gas wells.
(3) In distributing funds under divisions (G)(1) and (2) of
this section, the county budget commission shall prioritize
permanent improvements and road or bridge repairs directly
associated with the presence of producing oil and gas wells.
Sec. 5747.56. (A) Not later than the fifteenth day of June of
each year, the tax commissioner shall calculate and certify to the
director of budget and management both of the following:
(1) Revenue forgone to the local government fund during the
preceding calendar year because of the credit authorized under
section 5747.63 and the exclusion authorized under division
(F)(2)(jj) of section 5751.01 of the Revised Code.
(2) Revenue forgone to the public library fund during the
preceding calendar year because of the credit authorized under
section 5747.63 and the exclusion authorized under division
(F)(2)(jj) of section 5751.01 of the Revised Code.
(B) There is hereby created in the state treasury the local
government reimbursement fund. On or before the thirtieth day of
June of each year, the director of budget and management shall
transfer or distribute from the fund the following amounts:
(1) An amount equal to the lesser of the money in the local
government reimbursement fund or the sum of the amounts certified
by the tax commissioner under divisions (A)(1) and (2) of this
section to the undivided local government fund and the public
library fund of each county and to each municipal corporation
receiving money that calendar year under division (C) of section
5747.50 of the Revised Code in the same proportions as money from
the local government fund is distributed to undivided local
government funds and those municipal corporations under divisions
(B) and (C) of section 5747.50 of the Revised Code and from the
public library fund to county public library funds under section
5747.47 of the Revised Code for that calendar year.
(2) Twenty-five per cent of any money remaining in the local
government reimbursement fund after making the distribution
described in division (B)(1) of this section to the severance tax
infrastructure fund of each county in the county's proportion most
recently certified to the director by the tax commissioner under
division (J)(2) of section 5749.06 of the Revised Code.
(3) Sixty-three and three-fourths per cent of any money
remaining in the local government reimbursement fund after making
the distribution under division (B)(1) of this section to the Ohio
shale gas infrastructure development fund created in section
190.03 of the Revised Code.
(4) Eleven and one-fourth per cent of any money remaining in
the local government reimbursement fund after making the
distribution described in division (B)(1) of this section to the
severance tax legacy fund created in section 190.04 of the Revised
Code.
The county budget commission shall apportion money
distributed to the undivided local government fund or public
library fund of the county under this section to subdivisions or
libraries according to the formula used by the county to
distribute money from the undivided local government fund under
section 5747.51 or 5747.53 or from the county public library fund
under section 5705.32 or 5705.321 of the Revised Code.
Payments received by a municipal corporation directly from
the director of budget and management under this section shall be
paid into its general fund and may be used for any lawful purpose.
Money received by a subdivision under this section shall be paid
into its general fund and used for the current operating expenses
of the subdivision.
Sec. 5747.63. (A) As used in this section:
(1) "Royalty interest" and "well" have the same meanings as
in section 1509.01 of the Revised Code.
(2) "Oil and gas severance tax" means the tax imposed under
division (B)(5) or (6) or (C) of section 5749.02 of the Revised
Code.
(3) "Severer" has the same meaning as in division (I)(2) of
section 5749.01 of the Revised Code.
(B) For taxable years beginning on or after January 1, 2014,
a taxpayer holding a royalty interest in a well producing oil or
gas may claim a nonrefundable credit against the tax imposed by
section 5747.02 of the Revised Code. The amount of the credit
equals the amount of oil and gas severance tax paid by the severer
for calendar quarters that end in or coincide with the taxpayer's
taxable year multiplied by the lesser of twelve and one-half per
cent or the proportion on the last day of the taxable year of that
tax by which the taxpayer's royalty payments are reduced or for
which the taxpayer is contractually required to pay the severer.
A taxpayer who has a direct or indirect ownership interest in
a pass-through entity that owns a royalty interest may claim a
credit under this section with respect to each well for which the
pass-through entity receives a royalty payment. The amount of the
credit with respect to each well shall be the taxpayer's
distributive or proportionate share of oil and gas severance tax
paid by the severer for the calendar quarters that end in or
coincide with the taxpayer's taxable year multiplied by the lesser
of twelve and one-half per cent or the proportion, on the last day
of the taxable year, of that tax by which the pass-through
entity's royalty payments are reduced or for which the
pass-through entity is contractually required to pay the severer.
(C) The taxpayer shall claim the credit in the order required
under section 5747.98 of the Revised Code. If the credit exceeds
the amount of tax otherwise due for the taxable year, the excess
may not be carried forward.
(D) On or before the last day of January of each year, a
severer shall deliver to each taxpayer or pass-through entity that
holds a royalty interest in the severer's well a written report
that lists the amount of oil and gas severance tax the severer
paid on oil and gas severed and sold from that well in the
preceding calendar year unless that information has already been
provided by a severer to each taxpayer or pass-through entity in
one or more written periodic reports. If requested by the tax
commissioner, a taxpayer or pass-through entity shall furnish to
the commissioner such reports or other documentation
substantiating the taxpayer's or entity's royalty interest or the
proportion of oil and gas severance tax by which the taxpayer's or
entity's royalty payments are reduced or for which the taxpayer or
entity is required to pay the severer.
(E) With respect to any well in which a taxpayer has a direct
or indirect interest, the taxpayer may not claim the credit
authorized by this section and deduct, under division (A)(31) of
section 5747.01 of the Revised Code, the taxpayer's royalty
payments received from the severer.
Sec. 5747.98. (A) To provide a uniform procedure for
calculating the amount of tax due under section 5747.02 of the
Revised Code, a taxpayer shall claim any credits to which the
taxpayer is entitled in the following order:
(1) The retirement income credit under division (B) of
section 5747.055 of the Revised Code;
(2) The senior citizen credit under division (C) of section
5747.05 of the Revised Code;
(3) The lump sum distribution credit under division (D) of
section 5747.05 of the Revised Code;
(4) The dependent care credit under section 5747.054 of the
Revised Code;
(5) The lump sum retirement income credit under division (C)
of section 5747.055 of the Revised Code;
(6) The lump sum retirement income credit under division (D)
of section 5747.055 of the Revised Code;
(7) The lump sum retirement income credit under division (E)
of section 5747.055 of the Revised Code;
(8) The low-income credit under section 5747.056 of the
Revised Code;
(9) The credit for displaced workers who pay for job training
under section 5747.27 of the Revised Code;
(10) The campaign contribution credit under section 5747.29
of the Revised Code;
(11) The twenty-dollar personal exemption credit under
section 5747.022 of the Revised Code;
(12) The joint filing credit under division (G) of section
5747.05 of the Revised Code;
(13) The nonresident credit under division (A) of section
5747.05 of the Revised Code;
(14) The credit for a resident's out-of-state income under
division (B) of section 5747.05 of the Revised Code;
(15) The earned income credit under section 5747.71 of the
Revised Code;
(16) The credit for employers that reimburse employee child
care expenses under section 5747.36 The oil and gas royalty
interest holder credit for severance tax paid under section
5747.63 of the Revised Code;
(17) The credit for adoption of a minor child under section
5747.37 of the Revised Code;
(18) The credit for purchases of lights and reflectors under
section 5747.38 of the Revised Code;
(19) The nonrefundable job retention credit under division
(B) of section 5747.058 of the Revised Code;
(20) The credit for selling alternative fuel under section
5747.77 of the Revised Code;
(21) The second credit for purchases of new manufacturing
machinery and equipment and the credit for using Ohio coal under
section 5747.31 of the Revised Code;
(22) The job training credit under section 5747.39 of the
Revised Code;
(23) The enterprise zone credit under section 5709.66 of the
Revised Code;
(24) The credit for the eligible costs associated with a
voluntary action under section 5747.32 of the Revised Code;
(25) The credit for employers that establish on-site child
day-care centers under section 5747.35 of the Revised Code;
(26) The ethanol plant investment credit under section
5747.75 of the Revised Code;
(27) The credit for purchases of qualifying grape production
property under section 5747.28 of the Revised Code;
(28) The small business investment credit under section
5747.81 of the Revised Code;
(29) The enterprise zone credits under section 5709.65 of the
Revised Code;
(30) The research and development credit under section
5747.331 of the Revised Code;
(31) The credit for rehabilitating a historic building under
section 5747.76 of the Revised Code;
(32) The refundable credit for rehabilitating a historic
building under section 5747.76 of the Revised Code;
(33) The refundable jobs creation credit or job retention
credit under division (A) of section 5747.058 of the Revised Code;
(34) The refundable credit for taxes paid by a qualifying
entity granted under section 5747.059 of the Revised Code;
(35) The refundable credits for taxes paid by a qualifying
pass-through entity granted under division (J) of section 5747.08
of the Revised Code;
(36) The refundable credit under section 5747.80 of the
Revised Code for losses on loans made to the Ohio venture capital
program under sections 150.01 to 150.10 of the Revised Code;
(37) The refundable motion picture production credit under
section 5747.66 of the Revised Code.;
(38) The refundable credit for financial institution taxes
paid by a pass-through entity granted under section 5747.65 of the
Revised Code.
(B) For any credit, except the refundable credits enumerated
in this section and the credit granted under division (I) of
section 5747.08 of the Revised Code, the amount of the credit for
a taxable year shall not exceed the tax due after allowing for any
other credit that precedes it in the order required under this
section. Any excess amount of a particular credit may be carried
forward if authorized under the section creating that credit.
Nothing in this chapter shall be construed to allow a taxpayer to
claim, directly or indirectly, a credit more than once for a
taxable year.
Sec. 5749.01. As used in this chapter:
(A) "Ton" shall mean two thousand pounds as measured at the
point and time of severance, after the removal of any impurities,
under such rules and regulations as the tax commissioner may
prescribe.
(B) "Taxpayer" means any person required to pay the tax
levied by Chapter 5749. of the Revised Code.
(C) "Natural resource" means all forms of coal, salt,
limestone, dolomite, sand, gravel, natural gas, and oil.
(D) "Owner," has "horizontal well," and "condensate" have the
same meaning
meanings as in section 1509.01 of the Revised Code.
(E) "Person" means any individual, firm, partnership,
association, joint stock company, corporation, or estate, or
combination thereof.
(F) "Return" means any report or statement required to be
filed pursuant to Chapter 5749. of the Revised Code used to
determine the tax due.
(G) "Severance" means the extraction or other removal of a
natural resource from the soil or water of this state.
(H) "Severed" means the point at which the natural resource
has been separated from the soil or water in this state.
(I) "Severer" means any one of the following:
(1) For the purposes of a tax levied under division (B) of
section 5749.02 of the Revised Code, except for divisions (B)(5)
and (6) of that section, the person who actually removes the
natural resources from the soil or water in this state.
(2) For the purposes of the taxes levied under divisions
(B)(5) and (6) and (C) of section 5749.02 of the Revised Code, the
person that has the right to first sell severed oil or gas.
(J) "First day of production" means the date on which oil or
gas is first severed through the use of a well. "First day of
production" does not include days on which gas is flared from a
well exclusively for testing and oil is not produced when the gas
is flared.
(K) "Oil" means crude petroleum oil and all other
hydrocarbons, regardless of gravity, that are produced in liquid
form by ordinary production methods, including condensate.
(L) "Gas" means natural gas and all other hydrocarbons that
are not oil.
(M) "Wellhead gross receipts" means the total amount received
by a severer or another person from the first sale of oil and gas,
whether or not the sale occurs at the wellhead, after deduction
for any fees paid or costs incurred or accrued by or on behalf of
the severer or an affiliate of the severer for processing,
gathering, transporting, fractionating, stabilizing, compressing,
dehydrating, shrinkage, brokering, delivering, and market access
for such oil and gas, but not including fees paid or costs
incurred or accrued for oil and gas lease acquisitions,
geophysical and geologic services, well site preparation, well
drilling, well completion services, related tangible or intangible
drilling costs, natural gas storage services, general
merchandising, and lease operating costs for the production of oil
and gas at the wellhead.
(N) "Point of first sale" means the first point after the
production of oil or gas from a well at which the severer or
another person transfers ownership of the oil or gas for
consideration. The point of first sale determines when oil or gas
is first sold for the purposes of this chapter.
(O) "Affiliate" means a person that owns or controls either
directly or indirectly more than fifty per cent of the ownership
interest of one or more other persons, or has more than fifty per
cent of its ownership interests owned or controlled either
directly or indirectly by another person, or by related interests
that own or control either directly or indirectly more than fifty
per cent of the ownership interests of one or more other persons.
(P) "Former section 1509.50 of the Revised Code" means
section 1509.50 of the Revised Code as it existed before its
repeal by H.B. 375 of the 130th general assembly.
Sec. 5749.02. (A) For the purpose of providing revenue to
administer the state's coal mining and reclamation regulatory
program and oil and gas regulatory program, to meet the
environmental and resource management needs of this state, to
provide revenue for local governments, to provide revenue for
temporary income tax reductions, and to reclaim land affected by
mining, an excise
a tax is hereby levied on the privilege of
engaging in the severance of natural resources from the soil or
water of this state under divisions (B) and (C) of this section.
The tax
(B) There shall be a tax imposed upon the severer at the
rates prescribed by divisions (A)(B)(1) to (9) of this section:
(1) Ten cents per ton of coal;
(2) Four cents per ton of salt;
(3) Two cents per ton of limestone or dolomite;
(4) Two cents per ton of sand and gravel;
(5) Ten cents per barrel of oil severed from a well that is
not a horizontal well;
(6) Two One and one-half cents per thousand cubic feet of
natural gas severed from a well that is not a horizontal well;
(7) One cent per ton of clay, sandstone or conglomerate,
shale, gypsum, or quartzite;
(8) Except as otherwise provided in this division or in rules
adopted by the reclamation forfeiture fund advisory board under
section 1513.182 of the Revised Code, an additional fourteen cents
per ton of coal produced from an area under a coal mining and
reclamation permit issued under Chapter 1513. of the Revised Code
for which the performance security is provided under division
(C)(2) of section 1513.08 of the Revised Code. Beginning July 1,
2007, if at the end of a fiscal biennium the balance of the
reclamation forfeiture fund created in section 1513.18 of the
Revised Code is equal to or greater than ten million dollars, the
rate levied shall be twelve cents per ton. Beginning July 1, 2007,
if at the end of a fiscal biennium the balance of the fund is at
least five million dollars, but less than ten million dollars, the
rate levied shall be fourteen cents per ton. Beginning July 1,
2007, if at the end of a fiscal biennium the balance of the fund
is less than five million dollars, the rate levied shall be
sixteen cents per ton. Beginning July 1, 2009, not later than
thirty days after the close of a fiscal biennium, the chief of the
division of mineral resources management shall certify to the tax
commissioner the amount of the balance of the reclamation
forfeiture fund as of the close of the fiscal biennium. Any
necessary adjustment of the rate levied shall take effect on the
first day of the following January and shall remain in effect
during the calendar biennium that begins on that date.
(9) An additional one and two-tenths cents per ton of coal
mined by surface mining methods.
(B)(C)(1) For oil and gas severed from a horizontal well on
or after October 1, 2014, there is hereby levied a tax on the
severer. The tax shall be levied at the rate of two and one-half
per cent of the severer's or other person's wellhead gross
receipts from the first sale of that oil or gas.
(2)(a) If the tax commissioner establishes by a preponderance
of the evidence either that the first sale of oil and gas is
between affiliates and is not comparable to other transactions in
the Appalachian basin or that the first sale of oil or gas is
between parties that are not affiliates and is not conducted at
arm's length, the commissioner shall prescribe the price paid for
that oil and gas as follows:
(i) The price paid under the most comparable arm's length
contract or contracts, to which the person paying the tax is a
party, for the sale of oil or gas of similar quality, from the
same well or, if none, from a nearby well.
(ii) If the commissioner cannot apply the price described in
division (C)(2)(a)(i) of this section to the oil or gas, the price
paid under the most comparable arm's length contract or contracts,
between parties other than the person paying the tax, for the sale
of oil or gas of similar quality from a similar well.
(iii) If the commissioner cannot apply the price described in
division (C)(2)(a)(i) or (ii) of this section to the oil or gas,
the price determined by consideration of a posted price that is
relevant in valuing oil or gas of similar quality from a similar
well.
(b) When determining whether a contract is comparable for
purposes of division (C)(2)(a)(i) or (ii) of this section, the
commissioner shall consider the contract price for oil or gas, the
time of the contract's execution, the basin where oil and gas is
being sold, any markets served and costs to access the markets,
the quality and volume of the oil or gas, and any other factor.
(c) After prescribing a price under division (C)(2)(a) of
this section, the commissioner shall recalculate wellhead gross
receipts for that oil and gas based on the prescribed price. The
commissioner may collect any amount resulting from the
commissioner's recalculation by assessment in the manner provided
under section 5749.07 of the Revised Code.
(D) After the director of budget and management transfers
money from the severance tax receipts fund as required in division
(H) of section 5749.06 of the Revised Code, money remaining in the
severance tax receipts fund, except for money in the fund from the
amounts due under section 1509.50 of the Revised Code, shall be
credited as follows:
(1) Of the moneys in the fund from the tax levied in division
(A)(B)(1) of this section, four and seventy-six-hundredths per
cent shall be credited to the geological mapping fund created in
section 1505.09 of the Revised Code, eighty and
ninety-five-hundredths per cent shall be credited to the coal
mining administration and reclamation reserve fund created in
section 1513.181 of the Revised Code, and fourteen and
twenty-nine-hundredths per cent shall be credited to the
unreclaimed lands fund created in section 1513.30 of the Revised
Code.
(2) The money in the fund from the tax levied in division
(A)(B)(2) of this section shall be credited to the geological
mapping fund.
(3) Of the moneys in the fund from the tax levied in
divisions (A)(B)(3) and (4) of this section, seven and five-tenths
per cent shall be credited to the geological mapping fund,
forty-two and five-tenths per cent shall be credited to the
unreclaimed lands fund, and the remainder shall be credited to the
surface mining fund created in section 1514.06 of the Revised
Code.
(4) Of the moneys in the fund from the tax levied in
divisions (A)(5) and (6) of this section, ninety per cent shall be
credited to the oil and gas well fund created in section 1509.02
of the Revised Code and ten per cent shall be credited to the
geological mapping fund. All of the moneys in the fund from the
tax levied in division (A)(B)(7) of this section shall be credited
to the surface mining fund.
(5) All of the moneys in the fund from the tax levied in
division (A)(B)(8) of this section shall be credited to the
reclamation forfeiture fund.
(6) All of the moneys in the fund from the tax levied in
division (A)(B)(9) of this section shall be credited to the
unreclaimed lands fund.
(7) All of the money in the fund from the tax levied under
divisions (B)(5) and (6) and (C) of this section shall be credited
to the oil and gas severance tax fund, which is hereby created in
the state treasury.
On or before the twenty-fifth day of June of each year, the
director of budget and management shall transfer the following
amounts from the oil and gas severance tax fund:
(a) Fifteen million dollars to the oil and gas well fund,
three million dollars to the well plugging fund, and three million
dollars to the geological mapping fund. If the balance in the oil
and gas severance tax fund does not exceed twenty-one million
dollars, the director shall proportionately reduce the amount
transferred to the oil and gas well fund, well plugging fund, and
geological mapping fund.
(b) After transferring the amounts described in division
(D)(7)(a) of this section, to the local government reimbursement
fund created by section 5747.56 of the Revised Code, the lesser of
the amount remaining in the oil and gas severance tax fund or
seventeen and one-half per cent of the balance in the oil and gas
severance tax fund before accounting for the transfer under
division (D)(7)(a) of this section.
(c) To the income tax reduction fund created by section
131.44 of the Revised Code, any money remaining in the oil and gas
severance tax fund after accounting for the transfers described in
divisions (D)(7)(a) and (b) of this section.
(C)(E) When, at the close of any fiscal year, the chief finds
that the balance of the reclamation forfeiture fund, plus
estimated transfers to it from the coal mining administration and
reclamation reserve fund under section 1513.181 of the Revised
Code, plus the estimated revenues from the tax levied by division
(A)(B)(8) of this section for the remainder of the calendar year
that includes the close of the fiscal year, are sufficient to
complete the reclamation of all lands for which the performance
security has been provided under division (C)(2) of section
1513.08 of the Revised Code, the purposes for which the tax under
division (A)(B)(8) of this section is levied shall be deemed
accomplished at the end of that calendar year. The chief, within
thirty days after the close of the fiscal year, shall certify
those findings to the tax commissioner, and the tax levied under
division (A)(B)(8) of this section shall cease to be imposed for
the subsequent calendar year after the last day of that calendar
year on coal produced under a coal mining and reclamation permit
issued under Chapter 1513. of the Revised Code if the permittee
has made tax payments under division (A)(B)(8) of this section
during each of the preceding five full calendar years. Not later
than thirty days after the close of a fiscal year, the chief shall
certify to the tax commissioner the identity of any permittees who
accordingly no longer are required to pay the tax levied under
division (A)(B)(8) of this section for the subsequent calendar
year.
Sec. 5749.03. The following shall be exempt from the tax
imposed by section 5749.02 of the Revised Code and the amount due
under section 1509.50 of the Revised Code:
The severance of natural resources from land or water in this
state owned legally or beneficially by the severer, which natural
resources will be used on the land from which they are taken by
the severer as part of the improvement of or use in the severer's
homestead and which have a yearly cumulative market value of not
greater than one thousand dollars. When severed natural resources
so used exceed a cumulative market value of one thousand dollars
during any year, the further severance of natural resources shall
be subject to the tax imposed by section 5749.02 of the Revised
Code.
Sec. 5749.031. The first ten million dollars of wellhead
gross receipts after deduction for payments to holders of a
royalty interest from the first sale of oil and gas and received
by a severer or other person for oil and gas severed from a
horizontal well the first day of production of which is on or
after October 1, 2013, is exempt from the tax imposed under
division (C) of section 5749.02 of the Revised Code. As used in
this section, "holder of a royalty interest" means a person
authorized by written agreement to share in the value or proceeds
of a horizontal well's production, except a person that has a
working interest in that well.
Sec. 5749.06. (A)(1) Each severer liable for the tax imposed
by section 5749.02 of the Revised Code and each severer or owner
liable for the amounts due under section 1509.50 of the Revised
Code or required to report the information described in division
(J)(1) of this section shall make and file returns with the tax
commissioner in the prescribed form and as of the prescribed
times, computing and reflecting therein the tax as required by
this chapter and amounts due under section 1509.50 of the Revised
Code.
(2) The returns shall be filed for every quarterly period,
which periods shall end on the thirty-first day of March, the
thirtieth day of June, the thirtieth day of September, and the
thirty-first day of December of each year, as required by this
section, unless a different return period is prescribed for a
taxpayer by the commissioner.
(B)(1) A separate return shall be filed for each calendar
quarterly period, or other period, or any part thereof, during
which the severer holds a license as provided by section 5749.04
of the Revised Code, or is required to hold the license, or during
which an owner is required to file a return. The return shall be
filed within forty-five sixty days after the last day of each such
calendar month, or other period, or any part thereof, for which
the return is required. The tax due is payable along with the
return. All such returns shall contain such information as the
commissioner may require to fairly administer the tax.
(2) All returns shall be signed by the severer or owner, as
applicable, shall contain the full and complete information
requested, and shall be made under penalty of perjury.
(C) If the commissioner believes that quarterly payments of
tax would result in a delay that might jeopardize the collection
of such tax payments, the commissioner may order that such
payments be made weekly, or more frequently if necessary, such
payments to be made not later than seven days following the close
of the period for which the jeopardy payment is required. Such an
order shall be delivered to the taxpayer personally or by
certified mail and shall remain in effect until the commissioner
notifies the taxpayer to the contrary.
(D) Upon good cause the commissioner may extend for thirty
days the period for filing any notice or return required to be
filed under this section, and may remit all or a part of penalties
that may become due under this chapter.
(E) Any tax and any amount due under section 1509.50 of the
Revised Code not paid by the day the tax or amount is due shall
bear interest computed at the rate per annum prescribed by section
5703.47 of the Revised Code on that amount due from the day that
the amount tax was originally required to be paid to the day of
actual payment or to the day an assessment was issued under
section 5749.07 or 5749.10 of the Revised Code, whichever occurs
first.
(F) A severer or owner, as applicable, that fails to file a
complete return or pay the full amount due under this chapter
within the time prescribed, including any extensions of time
granted by the commissioner, shall be subject to a penalty not to
exceed the greater of fifty dollars or ten per cent of the amount
due for the period.
(G)(1) A severer or owner, as applicable, shall remit
payments electronically and, if required by the commissioner, file
each return electronically. The commissioner may require that the
severer or owner use the Ohio business gateway, as defined in
section 718.051 of the Revised Code, or another electronic means
to file returns and remit payments electronically.
(2) A severer or owner that is required to remit payments
electronically under this section may apply to the commissioner,
in the manner prescribed by the commissioner, to be excused from
that requirement. The commissioner may excuse a severer or owner
from the requirements of division (G) of this section for good
cause.
(3) If a severer or owner that is required to remit payments
or file returns electronically under this section fails to do so,
the commissioner may impose a penalty on the severer or owner not
to exceed the following:
(a) For the first or second payment or return the severer or
owner fails to remit or file electronically, the greater of five
per cent of the amount of the payment that was required to be
remitted or twenty-five dollars;
(b) For every payment or return after the second that the
severer or owner fails to remit or file electronically, the
greater of ten per cent of the amount of the payment that was
required to be remitted or fifty dollars.
(H)(1) All amounts that the commissioner receives under this
section shall be deemed to be revenue from taxes imposed under
this chapter or from the amount due under former section 1509.50
of the Revised Code, as applicable, and shall be deposited in the
severance tax receipts fund, which is hereby created in the state
treasury.
(2) The director of budget and management shall transfer from
the severance tax receipts fund to the tax refund fund amounts
equal to the refunds certified by the commissioner under section
5749.08 of the Revised Code. Any amount transferred under division
(H)(2) of this section shall be derived from receipts of the same
tax or other amount from which the refund arose.
(3) After the director of budget and management makes any
transfer required by division (H)(2) of this section, but not
later than the fifteenth first day of the second month following
the end of each calendar quarter, the commissioner shall certify
to the director the total amount remaining in the severance tax
receipts fund organized according to the amount attributable to
each natural resource and according to the amount attributable to
a each tax imposed by this chapter and the amounts due under
section 1509.50 of the Revised Code.
(I) Penalties imposed under this section are in addition to
any other penalty imposed under this chapter and shall be
considered as revenue arising from the tax levied under this
chapter or the amount due under former section 1509.50 of the
Revised Code, as applicable. The commissioner may collect any
penalty or interest imposed under this section in the same manner
as provided for the making of an assessment in section 5749.07 of
the Revised Code. The commissioner may abate all or a portion of
such interest or penalties and may adopt rules governing such
abatements.
(J)(1) Each severer subject to the tax levied under division
(C) of section 5749.02 of the Revised Code shall report on its
return filed under this section the severer's or other person's
wellhead gross receipts, even if those receipts are exempt from
that tax under section 5749.031 of the Revised Code, and the
proportionate amount of such wellhead gross receipts that are
attributable to horizontal wells located in each county, arranged
according to those counties.
(2) Not later than the fifteenth day of June of each year,
the commissioner shall report to the director of budget and
management the proportion of wellhead gross receipts attributable
to each county by dividing wellhead gross receipts reported under
division (J)(1) of this section attributable to each county for
the preceding calendar year by the total amount of wellhead gross
receipts for all counties reported under that division for the
preceding calendar year.
(K) For the purposes of this section:
(1) "Tax imposed by section 5749.02 of the Revised Code" and
"tax" includes amounts due under former section 1509.50 of the
Revised Code.
(2) "Severer" includes an owner with regard to amounts due
from an owner under former section 1509.50 of the Revised Code.
Sec. 5749.07. (A) If any severer required by this chapter to
make and file returns and pay the tax levied imposed by section
5749.02 of the Revised Code, or any severer or owner liable for
the amounts due under section 1509.50 of the Revised Code, fails
to make such return or pay such tax or amounts, the tax
commissioner may make an assessment against the severer or owner
based upon any information in the commissioner's possession.
No assessment shall be made or issued against any severer for
any tax imposed by section 5749.02 of the Revised Code
or against
any severer or owner for any amount due under section 1509.50 of
the Revised Code more than four years after the return was due or
was filed, whichever is later. This section does not bar an
assessment against a severer or owner who fails to file a return
as required by this chapter, or who files a fraudulent return.
The commissioner shall give the party assessed written notice
of such assessment in the manner provided in section 5703.37 of
the Revised Code. With the notice, the commissioner shall provide
instructions on how to petition for reassessment and request a
hearing on the petition.
(B) Unless the party assessed files with the commissioner
within sixty days after service of the notice of assessment,
either personally or by certified mail, a written petition for
reassessment signed by the party assessed or that party's
authorized agent having knowledge of the facts, the assessment
becomes final and the amount of the assessment is due and payable
from the party assessed to the treasurer of state. The petition
shall indicate the objections of the party assessed, but
additional objections may be raised in writing if received by the
commissioner prior to the date shown on the final determination.
If the petition has been properly filed, the commissioner shall
proceed under section 5703.60 of the Revised Code.
(C) After an assessment becomes final, if any portion of the
assessment remains unpaid, including accrued interest, a certified
copy of the commissioner's entry making the assessment final may
be filed in the office of the clerk of the court of common pleas
in the county in which the party assessed resides or in which the
party's business is conducted. If the party assessed maintains no
place of business in this state and is not a resident of this
state, the certified copy of the entry may be filed in the office
of the clerk of the court of common pleas of Franklin county.
Immediately upon the filing of such entry, the clerk shall
enter a judgment for the state against the party assessed in the
amount shown on the entry. The judgment may be filed by the clerk
in a loose-leaf book entitled "special judgments for state
severance tax," and shall have the same effect as other judgments.
Execution shall issue upon the judgment upon the request of the
commissioner, and all laws applicable to sales on execution shall
apply to sales made under the judgment.
If the assessment is not paid in its entirety within sixty
days after the day the assessment is issued, the portion of the
assessment consisting of tax due or amounts due under section
1509.50 of the Revised Code shall bear interest at the rate per
annum prescribed by section 5703.47 of the Revised Code from the
day the commissioner issues the assessment until it is paid or
until it is certified to the attorney general for collection under
section 131.02 of the Revised Code, whichever comes first. If the
unpaid portion of the assessment is certified to the attorney
general for collection, the entire unpaid portion of the
assessment shall bear interest at the rate per annum prescribed by
section 5703.47 of the Revised Code from the date of certification
until the date it is paid in its entirety. Interest shall be paid
in the same manner as the tax and may be collected by the issuance
of an assessment under this section.
(D) All money collected by the commissioner under this
section shall be paid to the treasurer of state, and when paid
shall be considered as revenue arising from the tax imposed by
section 5749.02 of the Revised Code and the amount due under
former section 1509.50 of the Revised Code, as applicable.
(E) For the purposes of this section:
(1) "Tax imposed by section 5749.02 of the Revised Code" and
"tax" includes amounts due under former section 1509.50 of the
Revised Code.
(2) "Severer" includes an owner with regard to amounts due
from an owner under former section 1509.50 of the Revised Code.
Sec. 5749.08. The tax commissioner shall refund to taxpayers
the amount of taxes levied by section 5749.02 of the Revised Code
and amounts due under former section 1509.50 of the Revised Code
that were paid illegally or erroneously or paid on an illegal or
erroneous assessment. Applications for refund shall be filed with
the commissioner, on the form prescribed by the commissioner,
within four years from the date of the illegal or erroneous
payment. On the filing of the application, the commissioner shall
determine the amount of refund to which the applicant is entitled,
plus interest computed in accordance with section 5703.47 of the
Revised Code from the date of the payment of an erroneous or
illegal assessment until the date the refund is paid. If the
amount is not less than that claimed, the commissioner shall
certify the amount to the director of budget and management and
treasurer of state for payment from the tax refund fund created by
section 5703.052 of the Revised Code. If the amount is less than
that claimed, the commissioner shall proceed in accordance with
section 5703.70 of the Revised Code.
Sec. 5749.10. If the tax commissioner finds that a taxpayer,
person liable for tax under this chapter or for any amount due
under former section 1509.50 of the Revised Code is about to
depart from the state, or remove the taxpayer's person's property
therefrom, or conceal the taxpayer's person themselves or their
property, or do any other act tending to prejudice or to render
wholly or partly ineffectual proceedings to collect such tax or
other amount due unless such proceedings are brought without
delay, or if the commissioner believes that the collection of the
tax or amount due from any taxpayer person will be jeopardized by
delay, the commissioner shall give notice of such findings to such
taxpayer the person together with the demand for an immediate
return and immediate payment of such tax or other amount due, with
penalty as provided in section 5749.15 of the Revised Code,
whereupon such tax or other amount due shall become immediately
due and payable. In such cases the commissioner may immediately
file an entry with the clerk of the court of common pleas in the
same manner and with the same effect as provided in section
5749.07 of the Revised Code, provided that if such taxpayer the
person, within five days from notice of the assessment, furnishes
evidence satisfactory to the commissioner, under the regulations
prescribed rules adopted by the commissioner, that the taxpayer is
not in default in making returns or paying any tax prescribed by
this chapter or amount due under former section 1509.50 of the
Revised Code, or that the taxpayer person will duly return and
pay, or post bond satisfactory to the commissioner conditioned
upon payment of the tax or other amount finally determined to be
due, then such tax or other amount due shall not be payable prior
to the time and manner otherwise fixed for payment under section
5749.07 of the Revised Code, and the person assessed shall be
restored the rights granted under such section. Upon satisfaction
of the assessment the commissioner shall order the bond cancelled,
securities released, and judgment vacated.
Any assessment issued under this section shall bear interest
as prescribed under section 5749.07 of the Revised Code.
Sec. 5749.11. (A) There is hereby allowed a nonrefundable
credit against the taxes imposed under division (A)(B)(8) of
section 5749.02 of the Revised Code for any severer to which a
reclamation tax credit certificate is issued under section
1513.171 of the Revised Code. The credit shall be claimed in the
amount shown on the certificate. The credit shall be claimed by
deducting the amount of the credit from the amount of the first
tax payment due under section 5749.06 of the Revised Code after
the certificate is issued.
If the amount of the credit shown on a certificate exceeds
the amount of the tax otherwise due with that first payment, the
excess shall be claimed against the amount of tax otherwise due on
succeeding payment dates until the entire credit amount has been
deducted. The total amount of credit claimed against payments
shall not exceed the total amount of credit shown on the
certificate.
(B) A severer claiming a credit under this section shall
retain a reclamation tax credit certificate for not less than four
years following the date of the last tax payment against which the
credit allowed under that certificate was applied. Severers shall
make tax credit certificates available for inspection by the tax
commissioner upon the tax commissioner's request.
Sec. 5749.12. Any nonresident of this state who accepts the
privilege extended by the laws of this state to nonresidents
severing natural resources in this state, and any resident of this
state who subsequently becomes a nonresident or conceals the
resident's whereabouts, makes the secretary of state of Ohio the
person's agent for the service of process or notice in any
assessment, action, or proceedings instituted in this state
against such person under this chapter or for purposes of amounts
due under section 1509.50 of the Revised Code.
Such process or notice shall be served as provided under
section 5703.37 of the Revised Code.
Sec. 5749.13. The tax commissioner may prescribe
requirements as to the keeping of records and other pertinent
documents and the filing of copies of federal income tax returns
and determinations. The commissioner may require any person, by
rule or by notice served on that person, to keep such records as
the commissioner considers necessary to show whether that person
is liable, and the extent of liability, for the tax imposed under
this chapter and the amount due under former section 1509.50 of
the Revised Code. Such records and other documents shall be open
during business hours to the inspection of the commissioner, and
shall be preserved for a period of four years after the date the
return was required to be filed or actually was filed, whichever
is later, unless the commissioner, in writing, consents to their
destruction within that period, or by order requires that they be
kept longer.
Sec. 5749.14. The tax commissioner shall enforce and
administer this chapter and applicable provisions of section
1509.50 of the Revised Code. In addition to any other powers
conferred upon the commissioner by law, the commissioner may:
(A) Prescribe all forms required to be filed pursuant to this
chapter;
(B) Promulgate Adopt such rules as the commissioner finds
necessary to carry out this chapter and applicable provisions of
section 1509.50 of the Revised Code;
(C) Appoint and employ such personnel as may be necessary to
carry out the duties imposed upon the commissioner by this
chapter.
Sec. 5749.15. Any person who fails to file a return or pay
the tax as required under this chapter or other amount due under
former section 1509.50 of the Revised Code who is assessed such
taxes or other amount due pursuant to section 5749.07 or 5749.10
of the Revised Code may be liable for a penalty of up to
twenty-five per cent of the amount assessed. The tax commissioner
may adopt rules relating to the imposition and remission of
penalties imposed under this section.
Sec. 5749.18. (A) Any term used in this section has the same
meaning as in Chapter 5751. of the Revised Code.
(B) There is allowed a nonrefundable credit against the tax
imposed under division (C) of section 5749.02 of the Revised Code
to a severer that paid the tax imposed by section 5751.02 of the
Revised Code in a calendar quarter beginning on or after October
1, 2014. The amount of the credit shall equal the amount of tax
paid by the severer with respect to taxable gross receipts
realized from the first sale of oil or gas severed from a
horizontal well. The severer shall claim the credit for the
calendar quarter in which the tax was paid. If the credit exceeds
the tax otherwise due under section 5749.02 of the Revised Code
for the calendar quarter, the excess shall not be carried forward
to subsequent calendar quarters.
If a taxpayer is allowed a credit under this section and
under section 5749.11 of the Revised Code for the same calendar
quarter, the credit allowed under this section shall be subtracted
from the amount of tax otherwise due before subtracting the credit
allowed under section 5749.11 of the Revised Code.
Sec. 5751.01. As used in this chapter:
(A) "Person" means, but is not limited to, individuals,
combinations of individuals of any form, receivers, assignees,
trustees in bankruptcy, firms, companies, joint-stock companies,
business trusts, estates, partnerships, limited liability
partnerships, limited liability companies, associations, joint
ventures, clubs, societies, for-profit corporations, S
corporations, qualified subchapter S subsidiaries, qualified
subchapter S trusts, trusts, entities that are disregarded for
federal income tax purposes, and any other entities.
(B) "Consolidated elected taxpayer" means a group of two or
more persons treated as a single taxpayer for purposes of this
chapter as the result of an election made under section 5751.011
of the Revised Code.
(C) "Combined taxpayer" means a group of two or more persons
treated as a single taxpayer for purposes of this chapter under
section 5751.012 of the Revised Code.
(D) "Taxpayer" means any person, or any group of persons in
the case of a consolidated elected taxpayer or combined taxpayer
treated as one taxpayer, required to register or pay tax under
this chapter. "Taxpayer" does not include excluded persons.
(E) "Excluded person" means any of the following:
(1) Any person with not more than one hundred fifty thousand
dollars of taxable gross receipts during the calendar year.
Division (E)(1) of this section does not apply to a person that is
a member of a consolidated elected taxpayer;
(2) A public utility that paid the excise tax imposed by
section 5727.24 or 5727.30 of the Revised Code based on one or
more measurement periods that include the entire tax period under
this chapter, except that a public utility that is a combined
company is a taxpayer with regard to the following gross receipts:
(a) Taxable gross receipts directly attributed to a public
utility activity, but not directly attributed to an activity that
is subject to the excise tax imposed by section 5727.24 or 5727.30
of the Revised Code;
(b) Taxable gross receipts that cannot be directly attributed
to any activity, multiplied by a fraction whose numerator is the
taxable gross receipts described in division (E)(2)(a) of this
section and whose denominator is the total taxable gross receipts
that can be directly attributed to any activity;
(c) Except for any differences resulting from the use of an
accrual basis method of accounting for purposes of determining
gross receipts under this chapter and the use of the cash basis
method of accounting for purposes of determining gross receipts
under section 5727.24 of the Revised Code, the gross receipts
directly attributed to the activity of a natural gas company shall
be determined in a manner consistent with division (D) of section
5727.03 of the Revised Code.
As used in division (E)(2) of this section, "combined
company" and "public utility" have the same meanings as in section
5727.01 of the Revised Code.
(3) A financial institution, as defined in section 5726.01 of
the Revised Code, that paid the tax imposed by section 5726.02 of
the Revised Code based on one or more taxable years that include
the entire tax period under this chapter;
(4) A person directly or indirectly owned by one or more
financial institutions, as defined in section 5726.01 of the
Revised Code, that paid the tax imposed by section 5726.02 of the
Revised Code based on one or more taxable years that include the
entire tax period under this chapter.
For the purposes of division (E)(4) of this section, a person
owns another person under the following circumstances:
(a) In the case of corporations issuing capital stock, one
corporation owns another corporation if it owns fifty per cent or
more of the other corporation's capital stock with current voting
rights;
(b) In the case of a limited liability company, one person
owns the company if that person's membership interest, as defined
in section 1705.01 of the Revised Code, is fifty per cent or more
of the combined membership interests of all persons owning such
interests in the company;
(c) In the case of a partnership, trust, or other
unincorporated business organization other than a limited
liability company, one person owns the organization if, under the
articles of organization or other instrument governing the affairs
of the organization, that person has a beneficial interest in the
organization's profits, surpluses, losses, or distributions of
fifty per cent or more of the combined beneficial interests of all
persons having such an interest in the organization.
(5) A domestic insurance company or foreign insurance
company, as defined in section 5725.01 of the Revised Code, that
paid the insurance company premiums tax imposed by section 5725.18
or Chapter 5729. of the Revised Code, or an unauthorized insurance
company whose gross premiums are subject to tax under section
3905.36 of the Revised Code based on one or more measurement
periods that include the entire tax period under this chapter;
(6) A person that solely facilitates or services one or more
securitizations of phase-in-recovery property pursuant to a final
financing order as those terms are defined in section 4928.23 of
the Revised Code. For purposes of this division, "securitization"
means transferring one or more assets to one or more persons and
then issuing securities backed by the right to receive payment
from the asset or assets so transferred.
(7) Except as otherwise provided in this division, a
pre-income tax trust as defined in division (FF)(4) of section
5747.01 of the Revised Code and any pass-through entity of which
such pre-income tax trust owns or controls, directly, indirectly,
or constructively through related interests, more than five per
cent of the ownership or equity interests. If the pre-income tax
trust has made a qualifying pre-income tax trust election under
division (FF)(3) of section 5747.01 of the Revised Code, then the
trust and the pass-through entities of which it owns or controls,
directly, indirectly, or constructively through related interests,
more than five per cent of the ownership or equity interests,
shall not be excluded persons for purposes of the tax imposed
under section 5751.02 of the Revised Code.
(8) Nonprofit organizations or the state and its agencies,
instrumentalities, or political subdivisions.
(F) Except as otherwise provided in divisions (F)(2), (3),
and (4) of this section, "gross receipts" means the total amount
realized by a person, without deduction for the cost of goods sold
or other expenses incurred, that contributes to the production of
gross income of the person, including the fair market value of any
property and any services received, and any debt transferred or
forgiven as consideration.
(1) The following are examples of gross receipts:
(a) Amounts realized from the sale, exchange, or other
disposition of the taxpayer's property to or with another;
(b) Amounts realized from the taxpayer's performance of
services for another;
(c) Amounts realized from another's use or possession of the
taxpayer's property or capital;
(d) Any combination of the foregoing amounts.
(2) "Gross receipts" excludes the following amounts:
(a) Interest income except interest on credit sales;
(b) Dividends and distributions from corporations, and
distributive or proportionate shares of receipts and income from a
pass-through entity as defined under section 5733.04 of the
Revised Code;
(c) Receipts from the sale, exchange, or other disposition of
an asset described in section 1221 or 1231 of the Internal Revenue
Code, without regard to the length of time the person held the
asset. Notwithstanding section 1221 of the Internal Revenue Code,
receipts from hedging transactions also are excluded to the extent
the transactions are entered into primarily to protect a financial
position, such as managing the risk of exposure to (i) foreign
currency fluctuations that affect assets, liabilities, profits,
losses, equity, or investments in foreign operations; (ii)
interest rate fluctuations; or (iii) commodity price fluctuations.
As used in division (F)(2)(c) of this section, "hedging
transaction" has the same meaning as used in section 1221 of the
Internal Revenue Code and also includes transactions accorded
hedge accounting treatment under statement of financial accounting
standards number 133 of the financial accounting standards board.
For the purposes of division (F)(2)(c) of this section, the actual
transfer of title of real or tangible personal property to another
entity is not a hedging transaction.
(d) Proceeds received attributable to the repayment,
maturity, or redemption of the principal of a loan, bond, mutual
fund, certificate of deposit, or marketable instrument;
(e) The principal amount received under a repurchase
agreement or on account of any transaction properly characterized
as a loan to the person;
(f) Contributions received by a trust, plan, or other
arrangement, any of which is described in section 501(a) of the
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter
1, Subchapter (D) of the Internal Revenue Code applies;
(g) Compensation, whether current or deferred, and whether in
cash or in kind, received or to be received by an employee, former
employee, or the employee's legal successor for services rendered
to or for an employer, including reimbursements received by or for
an individual for medical or education expenses, health insurance
premiums, or employee expenses, or on account of a dependent care
spending account, legal services plan, any cafeteria plan
described in section 125 of the Internal Revenue Code, or any
similar employee reimbursement;
(h) Proceeds received from the issuance of the taxpayer's own
stock, options, warrants, puts, or calls, or from the sale of the
taxpayer's treasury stock;
(i) Proceeds received on the account of payments from
insurance policies, except those proceeds received for the loss of
business revenue;
(j) Gifts or charitable contributions received; membership
dues received by trade, professional, homeowners', or condominium
associations; and payments received for educational courses,
meetings, meals, or similar payments to a trade, professional, or
other similar association; and fundraising receipts received by
any person when any excess receipts are donated or used
exclusively for charitable purposes;
(k) Damages received as the result of litigation in excess of
amounts that, if received without litigation, would be gross
receipts;
(l) Property, money, and other amounts received or acquired
by an agent on behalf of another in excess of the agent's
commission, fee, or other remuneration;
(m) Tax refunds, other tax benefit recoveries, and
reimbursements for the tax imposed under this chapter made by
entities that are part of the same combined taxpayer or
consolidated elected taxpayer group, and reimbursements made by
entities that are not members of a combined taxpayer or
consolidated elected taxpayer group that are required to be made
for economic parity among multiple owners of an entity whose tax
obligation under this chapter is required to be reported and paid
entirely by one owner, pursuant to the requirements of sections
5751.011 and 5751.012 of the Revised Code;
(o) Contributions to capital;
(p) Sales or use taxes collected as a vendor or an
out-of-state seller on behalf of the taxing jurisdiction from a
consumer or other taxes the taxpayer is required by law to collect
directly from a purchaser and remit to a local, state, or federal
tax authority;
(q) In the case of receipts from the sale of cigarettes or
tobacco products by a wholesale dealer, retail dealer,
distributor, manufacturer, or seller, all as defined in section
5743.01 of the Revised Code, an amount equal to the federal and
state excise taxes paid by any person on or for such cigarettes or
tobacco products under subtitle E of the Internal Revenue Code or
Chapter 5743. of the Revised Code;
(r) Receipts from the sale, transfer, exchange, or other
disposition of motor fuel as "motor fuel" is defined in section
5736.01 of the Revised Code;
(s) In the case of receipts from the sale of beer or
intoxicating liquor, as defined in section 4301.01 of the Revised
Code, by a person holding a permit issued under Chapter 4301. or
4303. of the Revised Code, an amount equal to federal and state
excise taxes paid by any person on or for such beer or
intoxicating liquor under subtitle E of the Internal Revenue Code
or Chapter 4301. or 4305. of the Revised Code;
(t) Receipts realized by a new motor vehicle dealer or used
motor vehicle dealer, as defined in section 4517.01 of the Revised
Code, from the sale or other transfer of a motor vehicle, as
defined in that section, to another motor vehicle dealer for the
purpose of resale by the transferee motor vehicle dealer, but only
if the sale or other transfer was based upon the transferee's need
to meet a specific customer's preference for a motor vehicle;
(u) Receipts from a financial institution described in
division (E)(3) of this section for services provided to the
financial institution in connection with the issuance, processing,
servicing, and management of loans or credit accounts, if such
financial institution and the recipient of such receipts have at
least fifty per cent of their ownership interests owned or
controlled, directly or constructively through related interests,
by common owners;
(v) Receipts realized from administering anti-neoplastic
drugs and other cancer chemotherapy, biologicals, therapeutic
agents, and supportive drugs in a physician's office to patients
with cancer;
(w) Funds received or used by a mortgage broker that is not a
dealer in intangibles, other than fees or other consideration,
pursuant to a table-funding mortgage loan or warehouse-lending
mortgage loan. Terms used in division (F)(2)(w) of this section
have the same meanings as in section 1322.01 of the Revised Code,
except "mortgage broker" means a person assisting a buyer in
obtaining a mortgage loan for a fee or other consideration paid by
the buyer or a lender, or a person engaged in table-funding or
warehouse-lending mortgage loans that are first lien mortgage
loans.
(x) Property, money, and other amounts received by a
professional employer organization, as defined in section 4125.01
of the Revised Code, from a client employer, as defined in that
section, in excess of the administrative fee charged by the
professional employer organization to the client employer;
(y) In the case of amounts retained as commissions by a
permit holder under Chapter 3769. of the Revised Code, an amount
equal to the amounts specified under that chapter that must be
paid to or collected by the tax commissioner as a tax and the
amounts specified under that chapter to be used as purse money;
(z) Qualifying distribution center receipts.
(i) For purposes of division (F)(2)(z) of this section:
(I) "Qualifying distribution center receipts" means receipts
of a supplier from qualified property that is delivered to a
qualified distribution center, multiplied by a quantity that
equals one minus the Ohio delivery percentage. If the qualified
distribution center is a refining facility, "supplier" includes
all dealers, brokers, processors, sellers, vendors, cosigners, and
distributors of qualified property.
(II) "Qualified property" means tangible personal property
delivered to a qualified distribution center that is shipped to
that qualified distribution center solely for further shipping by
the qualified distribution center to another location in this
state or elsewhere or, in the case of gold, silver, platinum, or
palladium delivered to a refining facility solely for refining to
a grade and fineness acceptable for delivery to a registered
commodities exchange. "Further shipping" includes storing and
repackaging property into smaller or larger bundles, so long as
the property is not subject to further manufacturing or
processing. "Refining" is limited to extracting impurities from
gold, silver, platinum, or palladium through smelting or some
other process at a refining facility.
(III) "Qualified distribution center" means a warehouse, a
facility similar to a warehouse, or a refining facility in this
state that, for the qualifying year, is operated by a person that
is not part of a combined taxpayer group and that has a qualifying
certificate. All warehouses or facilities similar to warehouses
that are operated by persons in the same taxpayer group and that
are located within one mile of each other shall be treated as one
qualified distribution center. All refining facilities that are
operated by persons in the same taxpayer group and that are
located in the same or adjacent counties may be treated as one
qualified distribution center.
(IV) "Qualifying year" means the calendar year to which the
qualifying certificate applies.
(V) "Qualifying period" means the period of the first day of
July of the second year preceding the qualifying year through the
thirtieth day of June of the year preceding the qualifying year.
(VI) "Qualifying certificate" means the certificate issued by
the tax commissioner after the operator of a distribution center
files an annual application with the commissioner. The
application and annual fee shall be filed and paid for each
qualified distribution center on or before the first day of
September before the qualifying year or within forty-five days
after the distribution center opens, whichever is later.
The applicant must substantiate to the commissioner's
satisfaction that, for the qualifying period, all persons
operating the distribution center have more than fifty per cent of
the cost of the qualified property shipped to a location such that
it would be sitused outside this state under the provisions of
division (E) of section 5751.033 of the Revised Code. The
applicant must also substantiate that the distribution center
cumulatively had costs from its suppliers equal to or exceeding
five hundred million dollars during the qualifying period. (For
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"
excludes any person that is part of the consolidated elected
taxpayer group, if applicable, of the operator of the qualified
distribution center.) The commissioner may require the applicant
to have an independent certified public accountant certify that
the calculation of the minimum thresholds required for a qualified
distribution center by the operator of a distribution center has
been made in accordance with generally accepted accounting
principles. The commissioner shall issue or deny the issuance of a
certificate within sixty days after the receipt of the
application. A denial is subject to appeal under section 5717.02
of the Revised Code. If the operator files a timely appeal under
section 5717.02 of the Revised Code, the operator shall be granted
a qualifying certificate effective for the remainder of the
qualifying year or until the appeal is finalized, whichever is
earlier. If the operator does not prevail in the appeal, the
operator shall pay the ineligible operator's supplier tax
liability.
(VII) "Ohio delivery percentage" means the proportion of the
total property delivered to a destination inside Ohio from the
qualified distribution center during the qualifying period
compared with total deliveries from such distribution center
everywhere during the qualifying period.
(VIII) "Refining facility" means one or more buildings
located in a county in the Appalachian region of this state as
defined by section 107.21 of the Revised Code and utilized for
refining or smelting gold, silver, platinum, or palladium to a
grade and fineness acceptable for delivery to a registered
commodities exchange.
(IX) "Registered commodities exchange" means a board of
trade, such as New York mercantile exchange, inc. or commodity
exchange, inc., designated as a contract market by the commodity
futures trading commission under the "Commodity Exchange Act," 7
U.S.C. 1 et seq., as amended.
(X) "Ineligible operator's supplier tax liability" means an
amount equal to the tax liability of all suppliers of a
distribution center had the distribution center not been issued a
qualifying certificate for the qualifying year. Ineligible
operator's supplier tax liability shall not include interest or
penalties. The tax commissioner shall determine an ineligible
operator's supplier tax liability based on information that the
commissioner may request from the operator of the distribution
center. An operator shall provide a list of all suppliers of the
distribution center and the corresponding costs of qualified
property for the qualifying year at issue within sixty days of a
request by the commissioner under this division.
(ii)(I) If the distribution center is new and was not open
for the entire qualifying period, the operator of the distribution
center may request that the commissioner grant a qualifying
certificate. If the certificate is granted and it is later
determined that more than fifty per cent of the qualified property
during that year was not shipped to a location such that it would
be sitused outside of this state under the provisions of division
(E) of section 5751.033 of the Revised Code or if it is later
determined that the person that operates the distribution center
had average monthly costs from its suppliers of less than forty
million dollars during that year, then the operator of the
distribution center shall pay the ineligible operator's supplier
tax liability. (For purposes of division (F)(2)(z)(ii) of this
section, "supplier" excludes any person that is part of the
consolidated elected taxpayer group, if applicable, of the
operator of the qualified distribution center.)
(II) The commissioner may grant a qualifying certificate to a
distribution center that does not qualify as a qualified
distribution center for an entire qualifying period if the
operator of the distribution center demonstrates that the business
operations of the distribution center have changed or will change
such that the distribution center will qualify as a qualified
distribution center within thirty-six months after the date the
operator first applies for a certificate. If, at the end of that
thirty-six-month period, the business operations of the
distribution center have not changed such that the distribution
center qualifies as a qualified distribution center, the operator
of the distribution center shall pay the ineligible operator's
supplier tax liability for each year that the distribution center
received a certificate but did not qualify as a qualified
distribution center. For each year the distribution center
receives a certificate under division (F)(2)(z)(ii)(II) of this
section, the distribution center shall pay all applicable fees
required under division (F)(2)(z) of this section and shall submit
an updated business plan showing the progress the distribution
center made toward qualifying as a qualified distribution center
during the preceding year.
(III) An operator may appeal a determination under division
(F)(2)(z)(ii)(I) or (II) of this section that the ineligible
operator is liable for the operator's supplier tax liability as a
result of not qualifying as a qualified distribution center, as
provided in section 5717.02 of the Revised Code.
(iii) When filing an application for a qualifying certificate
under division (F)(2)(z)(i)(VI) of this section, the operator of a
qualified distribution center also shall provide documentation, as
the commissioner requires, for the commissioner to ascertain the
Ohio delivery percentage. The commissioner, upon issuing the
qualifying certificate, also shall certify the Ohio delivery
percentage. The operator of the qualified distribution center may
appeal the commissioner's certification of the Ohio delivery
percentage in the same manner as an appeal is taken from the
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)
of this section.
(iv)(I) In the case where the distribution center is new and
not open for the entire qualifying period, the operator shall make
a good faith estimate of an Ohio delivery percentage for use by
suppliers in their reports of taxable gross receipts for the
remainder of the qualifying period. The operator of the facility
shall disclose to the suppliers that such Ohio delivery percentage
is an estimate and is subject to recalculation. By the due date of
the next application for a qualifying certificate, the operator
shall determine the actual Ohio delivery percentage for the
estimated qualifying period and proceed as provided in division
(F)(2)(z)(iii) of this section with respect to the calculation and
recalculation of the Ohio delivery percentage. The supplier is
required to file, within sixty days after receiving notice from
the operator of the qualified distribution center, amended reports
for the impacted calendar quarter or quarters or calendar year,
whichever the case may be. Any additional tax liability or tax
overpayment shall be subject to interest but shall not be subject
to the imposition of any penalty so long as the amended returns
are timely filed.
(II) The operator of a distribution center that receives a
qualifying certificate under division (F)(2)(z)(ii)(II) of this
section shall make a good faith estimate of the Ohio delivery
percentage that the operator estimates will apply to the
distribution center at the end of the thirty-six-month period
after the operator first applied for a qualifying certificate
under that division. The result of the estimate shall be
multiplied by a factor of one and seventy-five one-hundredths. The
product of that calculation shall be the Ohio delivery percentage
used by suppliers in their reports of taxable gross receipts for
each qualifying year that the distribution center receives a
qualifying certificate under division (F)(2)(z)(ii)(II) of this
section, except that, if the product is less than five per cent,
the Ohio delivery percentage used shall be five per cent and that,
if the product exceeds forty-nine per cent, the Ohio delivery
percentage used shall be forty-nine per cent.
(v) Qualifying certificates and Ohio delivery percentages
issued by the commissioner shall be open to public inspection and
shall be timely published by the commissioner. A supplier relying
in good faith on a certificate issued under this division shall
not be subject to tax on the qualifying distribution center
receipts under division (F)(2)(z) of this section. An operator
receiving a qualifying certificate is liable for the ineligible
operator's supplier tax liability for each year the operator
received a certificate but did not qualify as a qualified
distribution center.
(vi) The annual fee for a qualifying certificate shall be one
hundred thousand dollars for each qualified distribution center.
If a qualifying certificate is not issued, the annual fee is
subject to refund after the exhaustion of all appeals provided for
in division (F)(2)(z)(i)(VI) of this section. The first one
hundred thousand dollars of the annual application fees collected
each calendar year shall be credited to the revenue enhancement
fund. The remainder of the annual application fees collected shall
be distributed in the same manner required under section 5751.20
of the Revised Code.
(vii) The tax commissioner may require that adequate security
be posted by the operator of the distribution center on appeal
when the commissioner disagrees that the applicant has met the
minimum thresholds for a qualified distribution center as set
forth in division (F)(2)(z) of this section.
(aa) Receipts of an employer from payroll deductions relating
to the reimbursement of the employer for advancing moneys to an
unrelated third party on an employee's behalf;
(bb) Cash discounts allowed and taken;
(cc) Returns and allowances;
(dd) Bad debts from receipts on the basis of which the tax
imposed by this chapter was paid in a prior quarterly tax payment
period. For the purpose of this division, "bad debts" means any
debts that have become worthless or uncollectible between the
preceding and current quarterly tax payment periods, have been
uncollected for at least six months, and that may be claimed as a
deduction under section 166 of the Internal Revenue Code and the
regulations adopted under that section, or that could be claimed
as such if the taxpayer kept its accounts on the accrual basis.
"Bad debts" does not include repossessed property, uncollectible
amounts on property that remains in the possession of the taxpayer
until the full purchase price is paid, or expenses in attempting
to collect any account receivable or for any portion of the debt
recovered;
(ee) Any amount realized from the sale of an account
receivable to the extent the receipts from the underlying
transaction giving rise to the account receivable were included in
the gross receipts of the taxpayer;
(ff) Any receipts directly attributed to a transfer agreement
or to the enterprise transferred under that agreement under
section 4313.02 of the Revised Code.
(gg)(i) As used in this division:
(I) "Qualified uranium receipts" means receipts from the
sale, exchange, lease, loan, production, processing, or other
disposition of uranium within a uranium enrichment zone certified
by the tax commissioner under division (F)(2)(gg)(ii) of this
section. "Qualified uranium receipts" does not include any
receipts with a situs in this state outside a uranium enrichment
zone certified by the tax commissioner under division
(F)(2)(gg)(ii) of this section.
(II) "Uranium enrichment zone" means all real property that
is part of a uranium enrichment facility licensed by the United
States nuclear regulatory commission and that was or is owned or
controlled by the United States department of energy or its
successor.
(ii) Any person that owns, leases, or operates real or
tangible personal property constituting or located within a
uranium enrichment zone may apply to the tax commissioner to have
the uranium enrichment zone certified for the purpose of excluding
qualified uranium receipts under division (F)(2)(gg) of this
section. The application shall include such information that the
tax commissioner prescribes. Within sixty days after receiving the
application, the tax commissioner shall certify the zone for that
purpose if the commissioner determines that the property qualifies
as a uranium enrichment zone as defined in division (F)(2)(gg) of
this section, or, if the tax commissioner determines that the
property does not qualify, the commissioner shall deny the
application or request additional information from the applicant.
If the tax commissioner denies an application, the commissioner
shall state the reasons for the denial. The applicant may appeal
the denial of an application to the board of tax appeals pursuant
to section 5717.02 of the Revised Code. If the applicant files a
timely appeal, the tax commissioner shall conditionally certify
the applicant's property. The conditional certification shall
expire when all of the applicant's appeals are exhausted. Until
final resolution of the appeal, the applicant shall retain the
applicant's records in accordance with section 5751.12 of the
Revised Code, notwithstanding any time limit on the preservation
of records under that section.
(hh) In the case of amounts collected by a licensed casino
operator from casino gaming, amounts in excess of the casino
operator's gross casino revenue. In this division, "casino
operator" and "casino gaming" have the meanings defined in section
3772.01 of the Revised Code, and "gross casino revenue" has the
meaning defined in section 5753.01 of the Revised Code.
(ii) Receipts realized from the sale of agricultural
commodities by an agricultural commodity handler, both as defined
in section 926.01 of the Revised Code, that is licensed by the
director of agriculture to handle agricultural commodities in this
state.
(jj) Receipts realized by a taxpayer that is a severer from
the first sale of oil or gas severed from the soil or water of
this state on or after October 1, 2014, on the basis of which the
severer is liable for a tax imposed under section 5749.02 of the
Revised Code, if the severer is subject to the tax imposed under
section 5747.02 of the Revised Code on income from that sale or is
a pass-through entity, the direct or indirect owners of which are
subject to that tax on the income from that sale. A pass-through
entity may exclude only those receipts proportionate to such
direct or indirect owners' distributive or proportionate shares of
the pass-through entity. As used in division (F)(2)(jj) of this
section, "severer" has the same meaning as in division (I)(2) of
section 5749.01 of the Revised Code.
(kk) Any receipts for which the tax imposed by this chapter
is prohibited by the constitution or laws of the United States or
the constitution of this state.
(3) In the case of a taxpayer when acting as a real estate
broker, "gross receipts" includes only the portion of any fee for
the service of a real estate broker, or service of a real estate
salesperson associated with that broker, that is retained by the
broker and not paid to an associated real estate salesperson or
another real estate broker. For the purposes of this division,
"real estate broker" and "real estate salesperson" have the same
meanings as in section 4735.01 of the Revised Code.
(4) A taxpayer's method of accounting for gross receipts for
a tax period shall be the same as the taxpayer's method of
accounting for federal income tax purposes for the taxpayer's
federal taxable year that includes the tax period. If a taxpayer's
method of accounting for federal income tax purposes changes, its
method of accounting for gross receipts under this chapter shall
be changed accordingly.
(G) "Taxable gross receipts" means gross receipts sitused to
this state under section 5751.033 of the Revised Code.
(H) A person has "substantial nexus with this state" if any
of the following applies. The person:
(1) Owns or uses a part or all of its capital in this state;
(2) Holds a certificate of compliance with the laws of this
state authorizing the person to do business in this state;
(3) Has bright-line presence in this state;
(4) Otherwise has nexus with this state to an extent that the
person can be required to remit the tax imposed under this chapter
under the Constitution of the United States.
(I) A person has "bright-line presence" in this state for a
reporting period and for the remaining portion of the calendar
year if any of the following applies. The person:
(1) Has at any time during the calendar year property in this
state with an aggregate value of at least fifty thousand dollars.
For the purpose of division (I)(1) of this section, owned property
is valued at original cost and rented property is valued at eight
times the net annual rental charge.
(2) Has during the calendar year payroll in this state of at
least fifty thousand dollars. Payroll in this state includes all
of the following:
(a) Any amount subject to withholding by the person under
section 5747.06 of the Revised Code;
(b) Any other amount the person pays as compensation to an
individual under the supervision or control of the person for work
done in this state; and
(c) Any amount the person pays for services performed in this
state on its behalf by another.
(3) Has during the calendar year taxable gross receipts of at
least five hundred thousand dollars.
(4) Has at any time during the calendar year within this
state at least twenty-five per cent of the person's total
property, total payroll, or total gross receipts.
(5) Is domiciled in this state as an individual or for
corporate, commercial, or other business purposes.
(J) "Tangible personal property" has the same meaning as in
section 5739.01 of the Revised Code.
(K) "Internal Revenue Code" means the Internal Revenue Code
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in
this chapter that is not otherwise defined has the same meaning as
when used in a comparable context in the laws of the United States
relating to federal income taxes unless a different meaning is
clearly required. Any reference in this chapter to the Internal
Revenue Code includes other laws of the United States relating to
federal income taxes.
(L) "Calendar quarter" means a three-month period ending on
the thirty-first day of March, the thirtieth day of June, the
thirtieth day of September, or the thirty-first day of December.
(M) "Tax period" means the calendar quarter or calendar year
on the basis of which a taxpayer is required to pay the tax
imposed under this chapter.
(N) "Calendar year taxpayer" means a taxpayer for which the
tax period is a calendar year.
(O) "Calendar quarter taxpayer" means a taxpayer for which
the tax period is a calendar quarter.
(P) "Agent" means a person authorized by another person to
act on its behalf to undertake a transaction for the other,
including any of the following:
(1) A person receiving a fee to sell financial instruments;
(2) A person retaining only a commission from a transaction
with the other proceeds from the transaction being remitted to
another person;
(3) A person issuing licenses and permits under section
1533.13 of the Revised Code;
(4) A lottery sales agent holding a valid license issued
under section 3770.05 of the Revised Code;
(5) A person acting as an agent of the division of liquor
control under section 4301.17 of the Revised Code.
(Q) "Received" includes amounts accrued under the accrual
method of accounting.
(R) "Reporting person" means a person in a consolidated
elected taxpayer or combined taxpayer group that is designated by
that group to legally bind the group for all filings and tax
liabilities and to receive all legal notices with respect to
matters under this chapter, or, for the purposes of section
5751.04 of the Revised Code, a separate taxpayer that is not a
member of such a group.
Section 2. That existing sections 1509.02, 1509.071,
1509.11, 1509.34, 1513.08, 1513.182, 1514.11, 5703.052, 5705.27,
5705.32, 5747.98, 5749.01, 5749.02, 5749.03, 5749.06, 5749.07,
5749.08, 5749.10, 5749.11, 5749.12, 5749.13, 5749.14, 5749.15, and
5751.01, and section
1509.50 of the Revised Code are hereby
repealed.
Section 3. This act takes effect October 1, 2014.
Section 4. On or before the effective date of this act, the
Chief of the Division of Oil and Gas Resources Management shall
prepare a plan for the development of the inventory described in
division (B) of section 1509.075 of the Revised Code and deliver
that plan to the Speaker of the House of Representatives and the
President of the Senate. The plan shall include the time and
internal or external resources that the Chief believes are
necessary to complete that inventory.
|
|