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H. B. No. 510 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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Cosponsors:
Representatives Butler, Becker, Hood, Adams, J., Terhar, Retherford, Roegner
A BILL
To amend sections 5751.03 and 5751.20 and to enact
section 5751.031 of the Revised Code to reduce the
commercial activity tax (CAT) rate and minimum
payment amounts and to reduce the proportion of
CAT revenue allocated to the general revenue fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5751.03 and 5751.20 be amended and
section 5751.031 of the Revised Code be enacted to read as
follows:
Sec. 5751.03. (A) Except as provided in division (B) of this
section and in section 5751.031 of the Revised Code, the tax levied
under this section for each tax period shall be the product of two
one and six-tenths ninety-five hundredths mills per dollar times
the remainder of the taxpayer's taxable gross receipts for the tax
period after subtracting the exclusion amount provided for in
division (C) of this section.
(B) Notwithstanding division (C) of this section, the tax on
the first one million dollars in taxable gross receipts each
calendar year shall be calculated as follows:
(1) For taxpayers with annual taxable gross receipts of one
million dollars or less for the calendar year, one hundred fifty
twelve dollars and fifty cents;
(2) For taxpayers with annual taxable gross receipts greater
than one million dollars, but less than or equal to two million
dollars for the calendar year, eight six hundred dollars;
(3) For taxpayers with annual taxable gross receipts greater
than two million dollars, but less than or equal to four million
dollars for the calendar year, two one thousand one five hundred
seventy-five dollars;
(4) For taxpayers with annual taxable gross receipts greater
than four million dollars for the calendar year, two one thousand
six
nine hundred fifty dollars.
The tax imposed under division (B)(1) of this section shall
be paid not later than the tenth day of May of each year along
with the annual tax return. The tax imposed under divisions
(B)(2), (3), and (4) of this section shall be paid not later than
the tenth day of May of each year along with the first quarter tax
return.
(C)(1) Each taxpayer may exclude the first one million
dollars of taxable gross receipts for a calendar year. Calendar
quarter taxpayers shall apply the full exclusion amount to the
first calendar quarter return the taxpayer files that calendar
year and may carry forward and apply any unused exclusion amount
to subsequent calendar quarters within that same calendar year.
(2) A taxpayer switching from a calendar year tax period to a
calendar quarter tax period may, for the first quarter of the
change, apply the full one-million-dollar exclusion amount to the
first calendar quarter return the taxpayer files that calendar
year. Such taxpayers may carry forward and apply any unused
exclusion amount to subsequent calendar quarters within that same
calendar year. The tax rate shall be based on the rate imposed
that calendar quarter when the taxpayer switches from a calendar
year to a calendar quarter tax period.
(3) A taxpayer shall not exclude more than one million
dollars pursuant to division (C) of this section in a calendar
year.
Sec. 5751.031. The tax imposed under section 5751.03 of the
Revised Code shall be computed as follows:
(A) For tax periods beginning in fiscal year 2014, by
multiplying the tax otherwise due by one and three hundred
thirty-three one thousandths;
(B) For tax periods beginning in fiscal year 2015, by
multiplying the tax otherwise due by one and two hundred
sixty-seven one thousandths;
(C) For tax periods beginning in fiscal year 2016, by
multiplying the tax otherwise due by one and two-tenths;
(D) For tax periods beginning in fiscal year 2017, by
multiplying the tax otherwise due by one and one hundred
thirty-three one thousandths;
(E) For tax periods beginning in fiscal year 2018, by
multiplying the tax otherwise due by one and sixty-seven one
thousandths;
(F) For tax periods beginning in fiscal year 2019 and
thereafter, by multiplying the tax otherwise due by one.
Sec. 5751.20. (A) As used in sections 5751.20 to 5751.22 of
the Revised Code:
(1) "School district," "joint vocational school district,"
"local taxing unit," "recognized valuation," "fixed-rate levy,"
and "fixed-sum levy" have the same meanings as used in section
5727.84 of the Revised Code.
(2) "State education aid" for a school district means the
following:
(a) For fiscal years prior to fiscal year 2010, the sum of
state aid amounts computed for the district under the following
provisions, as they existed for the applicable fiscal year:
division (A) of section 3317.022 of the Revised Code, including
the amounts calculated under former section 3317.029 and section
3317.0217 of the Revised Code; divisions (C)(1), (C)(4), (D), (E),
and (F) of section 3317.022; divisions (B), (C), and (D) of
section 3317.023; divisions (L) and (N) of section 3317.024;
section 3317.0216; and any unit payments for gifted student
services paid under section 3317.05 and former sections 3317.052
and 3317.053 of the Revised Code; except that, for fiscal years
2008 and 2009, the amount computed for the district under Section
269.20.80 of H.B. 119 of the 127th general assembly and as that
section subsequently may be amended shall be substituted for the
amount computed under division (D) of section 3317.022 of the
Revised Code, and the amount computed under Section 269.30.80 of
H.B. 119 of the 127th general assembly and as that section
subsequently may be amended shall be included.
(b) For fiscal years 2010 and 2011, the sum of the amounts
computed under former sections 3306.052, 3306.12, 3306.13,
3306.19, 3306.191, and 3306.192 of the Revised Code;
(c) For fiscal years 2012 and 2013, the sum of the amounts
paid under Sections 267.30.50, 267.30.53, and 267.30.56 of H.B.
153 of the 129th general assembly;
(d) For fiscal year 2014 and each fiscal year thereafter, the
sum of state amounts computed for the district under section
3317.022 of the Revised Code; except that, for fiscal years 2014
and 2015, the amount computed for the district under the section
of this act entitled "TRANSITIONAL AID FOR CITY, LOCAL, AND
EXEMPTED VILLAGE SCHOOL DISTRICTS" shall be included.
(3) "State education aid" for a joint vocational school
district means the following:
(a) For fiscal years prior to fiscal year 2010, the sum of
the state aid computed for the district under division (N) of
section 3317.024 and former section 3317.16 of the Revised Code,
except that, for fiscal years 2008 and 2009, the amount computed
under Section 269.30.80 of H.B. 119 of the 127th general assembly
and as that section subsequently may be amended shall be included.
(b) For fiscal years 2010 and 2011, the amount paid in
accordance with Section 265.30.50 of H.B. 1 of the 128th general
assembly.
(c) For fiscal years 2012 and 2013, the amount paid in
accordance with Section 267.30.60 of H.B. 153 of the 129th general
assembly.
(d) For fiscal year 2014 and each fiscal year thereafter, the
amount computed for the district under section 3317.16 of the
Revised Code; except that, for fiscal years 2014 and 2015, the
amount computed for the district under the section of this act
entitled "TRANSITIONAL AID FOR JOINT VOCATIONAL SCHOOL DISTRICTS"
shall be included.
(4) "State education aid offset" means the amount determined
for each school district or joint vocational school district under
division (A)(1) of section 5751.21 of the Revised Code.
(5) "Machinery and equipment property tax value loss" means
the amount determined under division (C)(1) of this section.
(6) "Inventory property tax value loss" means the amount
determined under division (C)(2) of this section.
(7) "Furniture and fixtures property tax value loss" means
the amount determined under division (C)(3) of this section.
(8) "Machinery and equipment fixed-rate levy loss" means the
amount determined under division (D)(1) of this section.
(9) "Inventory fixed-rate levy loss" means the amount
determined under division (D)(2) of this section.
(10) "Furniture and fixtures fixed-rate levy loss" means the
amount determined under division (D)(3) of this section.
(11) "Total fixed-rate levy loss" means the sum of the
machinery and equipment fixed-rate levy loss, the inventory
fixed-rate levy loss, the furniture and fixtures fixed-rate levy
loss, and the telephone company fixed-rate levy loss.
(12) "Fixed-sum levy loss" means the amount determined under
division (E) of this section.
(13) "Machinery and equipment" means personal property
subject to the assessment rate specified in division (F) of
section 5711.22 of the Revised Code.
(14) "Inventory" means personal property subject to the
assessment rate specified in division (E) of section 5711.22 of
the Revised Code.
(15) "Furniture and fixtures" means personal property subject
to the assessment rate specified in division (G) of section
5711.22 of the Revised Code.
(16) "Qualifying levies" are levies in effect for tax year
2004 or applicable to tax year 2005 or approved at an election
conducted before September 1, 2005. For the purpose of determining
the rate of a qualifying levy authorized by section 5705.212 or
5705.213 of the Revised Code, the rate shall be the rate that
would be in effect for tax year 2010.
(17) "Telephone property" means tangible personal property of
a telephone, telegraph, or interexchange telecommunications
company subject to an assessment rate specified in section
5727.111 of the Revised Code in tax year 2004.
(18) "Telephone property tax value loss" means the amount
determined under division (C)(4) of this section.
(19) "Telephone property fixed-rate levy loss" means the
amount determined under division (D)(4) of this section.
(20) "Taxes charged and payable" means taxes charged and
payable after the reduction required by section 319.301 of the
Revised Code but before the reductions required by sections
319.302 and 323.152 of the Revised Code.
(21) "Median estate tax collections" means, in the case of a
municipal corporation to which revenue from the taxes levied in
Chapter 5731. of the Revised Code was distributed in each of
calendar years 2006, 2007, 2008, and 2009, the median of those
distributions. In the case of a municipal corporation to which no
distributions were made in one or more of those years, "median
estate tax collections" means zero.
(22) "Total resources," in the case of a school district,
means the sum of the amounts in divisions (A)(22)(a) to (h) of
this section less any reduction required under division (A)(32) or
(33) of this section.
(a) The state education aid for fiscal year 2010;
(b) The sum of the payments received by the school district
in fiscal year 2010 for current expense levy losses pursuant to
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of
section 5751.21 of the Revised Code, excluding the portion of such
payments attributable to levies for joint vocational school
district purposes;
(c) The sum of fixed-sum levy loss payments received by the
school district in fiscal year 2010 pursuant to division (E)(1) of
section 5727.85 and division (E)(1) of section 5751.21 of the
Revised Code for fixed-sum levies charged and payable for a
purpose other than paying debt charges;
(d) Fifty per cent of the school district's taxes charged and
payable against all property on the tax list of real and public
utility property for current expense purposes for tax year 2008,
including taxes charged and payable from emergency levies charged
and payable under section 5709.194 of the Revised Code and
excluding taxes levied for joint vocational school district
purposes;
(e) Fifty per cent of the school district's taxes charged and
payable against all property on the tax list of real and public
utility property for current expenses for tax year 2009, including
taxes charged and payable from emergency levies and excluding
taxes levied for joint vocational school district purposes;
(f) The school district's taxes charged and payable against
all property on the general tax list of personal property for
current expenses for tax year 2009, including taxes charged and
payable from emergency levies;
(g) The amount certified for fiscal year 2010 under division
(A)(2) of section 3317.08 of the Revised Code;
(h) Distributions received during calendar year 2009 from
taxes levied under section 718.09 of the Revised Code.
(23) "Total resources," in the case of a joint vocational
school district, means the sum of amounts in divisions (A)(23)(a)
to (g) of this section less any reduction required under division
(A)(32) of this section.
(a) The state education aid for fiscal year 2010;
(b) The sum of the payments received by the joint vocational
school district in fiscal year 2010 for current expense levy
losses pursuant to division (C)(2) of section 5727.85 and
divisions (C)(8) and (9) of section 5751.21 of the Revised Code;
(c) Fifty per cent of the joint vocational school district's
taxes charged and payable against all property on the tax list of
real and public utility property for current expense purposes for
tax year 2008;
(d) Fifty per cent of the joint vocational school district's
taxes charged and payable against all property on the tax list of
real and public utility property for current expenses for tax year
2009;
(e) Fifty per cent of a city, local, or exempted village
school district's taxes charged and payable against all property
on the tax list of real and public utility property for current
expenses of the joint vocational school district for tax year
2008;
(f) Fifty per cent of a city, local, or exempted village
school district's taxes charged and payable against all property
on the tax list of real and public utility property for current
expenses of the joint vocational school district for tax year
2009;
(g) The joint vocational school district's taxes charged and
payable against all property on the general tax list of personal
property for current expenses for tax year 2009.
(24) "Total resources," in the case of county mental health
and disability related functions, means the sum of the amounts in
divisions (A)(24)(a) and (b) of this section less any reduction
required under division (A)(32) of this section.
(a) The sum of the payments received by the county for mental
health and developmental disability related functions in calendar
year 2010 under division (A)(1) of section 5727.86 and divisions
(A)(1) and (2) of section 5751.22 of the Revised Code as they
existed at that time;
(b) With respect to taxes levied by the county for mental
health and developmental disability related purposes, the taxes
charged and payable for such purposes against all property on the
tax list of real and public utility property for tax year 2009.
(25) "Total resources," in the case of county senior services
related functions, means the sum of the amounts in divisions
(A)(25)(a) and (b) of this section less any reduction required
under division (A)(32) of this section.
(a) The sum of the payments received by the county for senior
services related functions in calendar year 2010 under division
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section
5751.22 of the Revised Code as they existed at that time;
(b) With respect to taxes levied by the county for senior
services related purposes, the taxes charged and payable for such
purposes against all property on the tax list of real and public
utility property for tax year 2009.
(26) "Total resources," in the case of county children's
services related functions, means the sum of the amounts in
divisions (A)(26)(a) and (b) of this section less any reduction
required under division (A)(32) of this section.
(a) The sum of the payments received by the county for
children's services related functions in calendar year 2010 under
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of
section 5751.22 of the Revised Code as they existed at that time;
(b) With respect to taxes levied by the county for children's
services related purposes, the taxes charged and payable for such
purposes against all property on the tax list of real and public
utility property for tax year 2009.
(27) "Total resources," in the case of county public health
related functions, means the sum of the amounts in divisions
(A)(27)(a) and (b) of this section less any reduction required
under division (A)(32) of this section.
(a) The sum of the payments received by the county for public
health related functions in calendar year 2010 under division
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section
5751.22 of the Revised Code as they existed at that time;
(b) With respect to taxes levied by the county for public
health related purposes, the taxes charged and payable for such
purposes against all property on the tax list of real and public
utility property for tax year 2009.
(28) "Total resources," in the case of all county functions
not included in divisions (A)(24) to (27) of this section, means
the sum of the amounts in divisions (A)(28)(a) to (d) of this
section less any reduction required under division (A)(32) or (33)
of this section.
(a) The sum of the payments received by the county for all
other purposes in calendar year 2010 under division (A)(1) of
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of
the Revised Code as they existed at that time;
(b) The county's percentage share of county undivided local
government fund allocations as certified to the tax commissioner
for calendar year 2010 by the county auditor under division (J) of
section 5747.51 of the Revised Code or division (F) of section
5747.53 of the Revised Code multiplied by the total amount
actually distributed in calendar year 2010 from the county
undivided local government fund;
(c) With respect to taxes levied by the county for all other
purposes, the taxes charged and payable for such purposes against
all property on the tax list of real and public utility property
for tax year 2009, excluding taxes charged and payable for the
purpose of paying debt charges;
(d) The sum of the amounts distributed to the county in
calendar year 2010 for the taxes levied pursuant to sections
5739.021 and 5741.021 of the Revised Code.
(29) "Total resources," in the case of a municipal
corporation, means the sum of the amounts in divisions (A)(29)(a)
to (g) of this section less any reduction required under division
(A)(32) or (33) of this section.
(a) The sum of the payments received by the municipal
corporation in calendar year 2010 for current expense levy losses
under division (A)(1) of section 5727.86 and divisions (A)(1) and
(2) of section 5751.22 of the Revised Code as they existed at that
time;
(b) The municipal corporation's percentage share of county
undivided local government fund allocations as certified to the
tax commissioner for calendar year 2010 by the county auditor
under division (J) of section 5747.51 of the Revised Code or
division (F) of section 5747.53 of the Revised Code multiplied by
the total amount actually distributed in calendar year 2010 from
the county undivided local government fund;
(c) The sum of the amounts distributed to the municipal
corporation in calendar year 2010 pursuant to section 5747.50 of
the Revised Code;
(d) With respect to taxes levied by the municipal
corporation, the taxes charged and payable against all property on
the tax list of real and public utility property for current
expenses, defined in division (A)(35) of this section, for tax
year 2009;
(e) The amount of admissions tax collected by the municipal
corporation in calendar year 2008, or if such information has not
yet been reported to the tax commissioner, in the most recent year
before 2008 for which the municipal corporation has reported data
to the commissioner;
(f) The amount of income taxes collected by the municipal
corporation in calendar year 2008, or if such information has not
yet been reported to the tax commissioner, in the most recent year
before 2008 for which the municipal corporation has reported data
to the commissioner;
(g) The municipal corporation's median estate tax
collections.
(30) "Total resources," in the case of a township, means the
sum of the amounts in divisions (A)(30)(a) to (c) of this section
less any reduction required under division (A)(32) or (33) of this
section.
(a) The sum of the payments received by the township in
calendar year 2010 pursuant to division (A)(1) of section 5727.86
of the Revised Code and divisions (A)(1) and (2) of section
5751.22 of the Revised Code as they existed at that time,
excluding payments received for debt purposes;
(b) The township's percentage share of county undivided local
government fund allocations as certified to the tax commissioner
for calendar year 2010 by the county auditor under division (J) of
section 5747.51 of the Revised Code or division (F) of section
5747.53 of the Revised Code multiplied by the total amount
actually distributed in calendar year 2010 from the county
undivided local government fund;
(c) With respect to taxes levied by the township, the taxes
charged and payable against all property on the tax list of real
and public utility property for tax year 2009 excluding taxes
charged and payable for the purpose of paying debt charges.
(31) "Total resources," in the case of a local taxing unit
that is not a county, municipal corporation, or township, means
the sum of the amounts in divisions (A)(31)(a) to (e) of this
section less any reduction required under division (A)(32) of this
section.
(a) The sum of the payments received by the local taxing unit
in calendar year 2010 pursuant to division (A)(1) of section
5727.86 of the Revised Code and divisions (A)(1) and (2) of
section 5751.22 of the Revised Code as they existed at that time;
(b) The local taxing unit's percentage share of county
undivided local government fund allocations as certified to the
tax commissioner for calendar year 2010 by the county auditor
under division (J) of section 5747.51 of the Revised Code or
division (F) of section 5747.53 of the Revised Code multiplied by
the total amount actually distributed in calendar year 2010 from
the county undivided local government fund;
(c) With respect to taxes levied by the local taxing unit,
the taxes charged and payable against all property on the tax list
of real and public utility property for tax year 2009 excluding
taxes charged and payable for the purpose of paying debt charges;
(d) The amount received from the tax commissioner during
calendar year 2010 for sales or use taxes authorized under
sections 5739.023 and 5741.022 of the Revised Code;
(e) For institutions of higher education receiving tax
revenue from a local levy, as identified in section 3358.02 of the
Revised Code, the final state share of instruction allocation for
fiscal year 2010 as calculated by the board of regents and
reported to the state controlling board.
(32) If a fixed-rate levy that is a qualifying levy is not
charged and payable in any year after tax year 2010, "total
resources" used to compute payments to be made under division
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section
5751.22 of the Revised Code in the tax years following the last
year the levy is charged and payable shall be reduced to the
extent that the payments are attributable to the fixed-rate levy
loss of that levy as would be computed under division (C)(2) of
section 5727.85, division (A)(1) of section 5727.85, divisions
(C)(8) and (9) of section 5751.21, or division (A)(1) of section
5751.22 of the Revised Code.
(33) In the case of a county, municipal corporation, school
district, or township with fixed-rate levy losses attributable to
a tax levied under section 5705.23 of the Revised Code, "total
resources" used to compute payments to be made under division
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86,
division (C)(12) of section 5751.21, or division (A)(1)(c) of
section 5751.22 of the Revised Code shall be reduced by the
amounts described in divisions (A)(34)(a) to (c) of this section
to the extent that those amounts were included in calculating the
"total resources" of the school district or local taxing unit
under division (A)(22), (28), (29), or (30) of this section.
(34) "Total library resources," in the case of a county,
municipal corporation, school district, or township public library
that receives the proceeds of a tax levied under section 5705.23
of the Revised Code, means the sum of the amounts in divisions
(A)(34)(a) to (c) of this section less any reduction required
under division (A)(32) of this section.
(a) The sum of the payments received by the county, municipal
corporation, school district, or township public library in
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the
Revised Code, as they existed at that time, for fixed-rate levy
losses attributable to a tax levied under section 5705.23 of the
Revised Code for the benefit of the public library;
(b) The public library's percentage share of county undivided
local government fund allocations as certified to the tax
commissioner for calendar year 2010 by the county auditor under
division (J) of section 5747.51 of the Revised Code or division
(F) of section 5747.53 of the Revised Code multiplied by the total
amount actually distributed in calendar year 2010 from the county
undivided local government fund;
(c) With respect to a tax levied pursuant to section 5705.23
of the Revised Code for the benefit of the public library, the
amount of such tax that is charged and payable against all
property on the tax list of real and public utility property for
tax year 2009 excluding any tax that is charged and payable for
the purpose of paying debt charges.
(35) "Municipal current expense property tax levies" means
all property tax levies of a municipality, except those with the
following levy names: airport resurfacing; bond or any levy name
including the word "bond"; capital improvement or any levy name
including the word "capital"; debt or any levy name including the
word "debt"; equipment or any levy name including the word
"equipment," unless the levy is for combined operating and
equipment; employee termination fund; fire pension or any levy
containing the word "pension," including police pensions;
fireman's fund or any practically similar name; sinking fund; road
improvements or any levy containing the word "road"; fire truck or
apparatus; flood or any levy containing the word "flood";
conservancy district; county health; note retirement; sewage, or
any levy containing the words "sewage" or "sewer"; park
improvement; parkland acquisition; storm drain; street or any levy
name containing the word "street"; lighting, or any levy name
containing the word "lighting"; and water.
(36) "Current expense TPP allocation" means, in the case of a
school district or joint vocational school district, the sum of
the payments received by the school district in fiscal year 2011
pursuant to divisions (C)(10) and (11) of section 5751.21 of the
Revised Code to the extent paid for current expense levies. In the
case of a municipal corporation, "current expense TPP allocation"
means the sum of the payments received by the municipal
corporation in calendar year 2010 pursuant to divisions (A)(1) and
(2) of section 5751.22 of the Revised Code to the extent paid for
municipal current expense property tax levies as defined in
division (A)(35) of this section, excluding any such payments
received for current expense levy losses attributable to a tax
levied under section 5705.23 of the Revised Code. If a fixed-rate
levy that is a qualifying levy is not charged and payable in any
year after tax year 2010, "current expense TPP allocation" used to
compute payments to be made under division (C)(12) of section
5751.21 or division (A)(1)(b) or (c) of section 5751.22 of the
Revised Code in the tax years following the last year the levy is
charged and payable shall be reduced to the extent that the
payments are attributable to the fixed-rate levy loss of that levy
as would be computed under divisions (C)(10) and (11) of section
5751.21 or division (A)(1) of section 5751.22 of the Revised Code.
(37) "TPP allocation" means the sum of payments received by a
local taxing unit in calendar year 2010 pursuant to divisions
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding
any such payments received for fixed-rate levy losses attributable
to a tax levied under section 5705.23 of the Revised Code. If a
fixed-rate levy that is a qualifying levy is not charged and
payable in any year after tax year 2010, "TPP allocation" used to
compute payments to be made under division (A)(1)(b) or (c) of
section 5751.22 of the Revised Code in the tax years following the
last year the levy is charged and payable shall be reduced to the
extent that the payments are attributable to the fixed-rate levy
loss of that levy as would be computed under division (A)(1) of
that section.
(38) "Total TPP allocation" means, in the case of a school
district or joint vocational school district, the sum of the
amounts received in fiscal year 2011 pursuant to divisions (C)(10)
and (11) and (D) of section 5751.21 of the Revised Code. In the
case of a local taxing unit, "total TPP allocation" means the sum
of payments received by the unit in calendar year 2010 pursuant to
divisions (A)(1), (2), and (3) of section 5751.22 of the Revised
Code. If a fixed-rate levy that is a qualifying levy is not
charged and payable in any year after tax year 2010, "total TPP
allocation" used to compute payments to be made under division
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section
5751.22 of the Revised Code in the tax years following the last
year the levy is charged and payable shall be reduced to the
extent that the payments are attributable to the fixed-rate levy
loss of that levy as would be computed under divisions (C)(10) and
(11) of section 5751.21 or division (A)(1) of section 5751.22 of
the Revised Code.
(39) "Non-current expense TPP allocation" means the
difference of total TPP allocation minus the sum of current
expense TPP allocation and the portion of total TPP allocation
constituting reimbursement for debt levies, pursuant to division
(D) of section 5751.21 of the Revised Code in the case of a school
district or joint vocational school district and pursuant to
division (A)(3) of section 5751.22 of the Revised Code in the case
of a municipal corporation.
(40) "TPP allocation for library purposes" means the sum of
payments received by a county, municipal corporation, school
district, or township public library in calendar year 2010
pursuant to section 5751.22 of the Revised Code for fixed-rate
levy losses attributable to a tax levied under section 5705.23 of
the Revised Code. If a fixed-rate levy authorized under section
5705.23 of the Revised Code that is a qualifying levy is not
charged and payable in any year after tax year 2010, "TPP
allocation for library purposes" used to compute payments to be
made under division (A)(1)(d) of section 5751.22 of the Revised
Code in the tax years following the last year the levy is charged
and payable shall be reduced to the extent that the payments are
attributable to the fixed-rate levy loss of that levy as would be
computed under division (A)(1) of section 5751.22 of the Revised
Code.
(41) "Threshold per cent" means, in the case of a school
district or joint vocational school district, two per cent for
fiscal year 2012 and four per cent for fiscal years 2013 and
thereafter. In the case of a local taxing unit or public library
that receives the proceeds of a tax levied under section 5705.23
of the Revised Code, "threshold per cent" means two per cent for
tax year 2011, four per cent for tax year 2012, and six per cent
for tax years 2013 and thereafter.
(B)(1) The commercial activities tax receipts fund is hereby
created in the state treasury and shall consist of money arising
from the tax imposed under this chapter. Eighty-five
one-hundredths of one per cent of the money credited to that fund
shall be credited to the revenue enhancement fund and shall be
used to defray the costs incurred by the department of taxation in
administering the tax imposed by this chapter and in implementing
tax reform measures. The remainder of the money in the commercial
activities tax receipts fund shall first be credited to the
commercial activity tax motor fuel receipts fund, pursuant to
division (B)(2) of this section, and the remainder shall be
credited in the following percentages each fiscal year to the
general revenue fund, to the school district tangible property tax
replacement fund, which is hereby created in the state treasury
for the purpose of making the payments described in section
5751.21 of the Revised Code, and to the local government tangible
property tax replacement fund, which is hereby created in the
state treasury for the purpose of making the payments described in
section 5751.22 of the Revised Code, in the following percentages:
Fiscal year |
General Revenue Fund |
School District Tangible Property Tax Replacement Fund |
Local Government Tangible Property Tax Replacement Fund |
|
|
2006 |
67.7% |
22.6% |
9.7% |
|
|
2007 |
0% |
70.0% |
30.0% |
|
|
2008 |
0% |
70.0% |
30.0% |
|
|
2009 |
0% |
70.0% |
30.0% |
|
|
2010 |
0% |
70.0% |
30.0% |
|
|
2011 |
0% |
70.0% |
30.0% |
|
|
2012 |
25.0% |
52.5% |
22.5% |
|
|
2013 and thereafter |
50.0% |
35.0% |
15.0% |
|
|
2014 |
50.0% |
35.0% |
15.0% |
|
|
2015 |
46.7% |
37.3% |
16.0% |
|
|
2016 |
43.3% |
39.7% |
17.0% |
|
|
2017 |
40.0% |
42.0% |
18.0% |
|
|
2018 |
36.7% |
44.3% |
19.0% |
|
|
2019 |
33.3% |
46.7% |
20.0% |
|
|
and thereafter |
|
|
|
|
|
(2) Not later than the twentieth day of February, May,
August, and November of each year, the commissioner shall provide
for payment from the commercial activities tax receipts fund to
the commercial activity tax motor fuel receipts fund an amount
that bears the same ratio to the balance in the commercial
activities tax receipts fund that (a) the taxable gross receipts
attributed to motor fuel used for propelling vehicles on public
highways as indicated by returns filed by the tenth day of that
month for a liability that is due and payable on or after July 1,
2013, for a tax period ending before July 1, 2014, bears to (b)
all taxable gross receipts as indicated by those returns for such
liabilities.
(C) Not later than September 15, 2005, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its machinery and equipment,
inventory property, furniture and fixtures property, and telephone
property tax value losses, which are the applicable amounts
described in divisions (C)(1), (2), (3), and (4) of this section,
except as provided in division (C)(5) of this section:
(1) Machinery and equipment property tax value loss is the
taxable value of machinery and equipment property as reported by
taxpayers for tax year 2004 multiplied by:
(a) For tax year 2006, thirty-three and eight-tenths per
cent;
(b) For tax year 2007, sixty-one and three-tenths per cent;
(c) For tax year 2008, eighty-three per cent;
(d) For tax year 2009 and thereafter, one hundred per cent.
(2) Inventory property tax value loss is the taxable value of
inventory property as reported by taxpayers for tax year 2004
multiplied by:
(a) For tax year 2006, a fraction, the numerator of which is
five and three-fourths and the denominator of which is
twenty-three;
(b) For tax year 2007, a fraction, the numerator of which is
nine and one-half and the denominator of which is twenty-three;
(c) For tax year 2008, a fraction, the numerator of which is
thirteen and one-fourth and the denominator of which is
twenty-three;
(d) For tax year 2009 and thereafter a fraction, the
numerator of which is seventeen and the denominator of which is
twenty-three.
(3) Furniture and fixtures property tax value loss is the
taxable value of furniture and fixture property as reported by
taxpayers for tax year 2004 multiplied by:
(a) For tax year 2006, twenty-five per cent;
(b) For tax year 2007, fifty per cent;
(c) For tax year 2008, seventy-five per cent;
(d) For tax year 2009 and thereafter, one hundred per cent.
The taxable value of property reported by taxpayers used in
divisions (C)(1), (2), and (3) of this section shall be such
values as determined to be final by the tax commissioner as of
August 31, 2005. Such determinations shall be final except for any
correction of a clerical error that was made prior to August 31,
2005, by the tax commissioner.
(4) Telephone property tax value loss is the taxable value of
telephone property as taxpayers would have reported that property
for tax year 2004 if the assessment rate for all telephone
property for that year were twenty-five per cent, multiplied by:
(a) For tax year 2006, zero per cent;
(b) For tax year 2007, zero per cent;
(c) For tax year 2008, zero per cent;
(d) For tax year 2009, sixty per cent;
(e) For tax year 2010, eighty per cent;
(f) For tax year 2011 and thereafter, one hundred per cent.
(5) Division (C)(5) of this section applies to any school
district, joint vocational school district, or local taxing unit
in a county in which is located a facility currently or formerly
devoted to the enrichment or commercialization of uranium or
uranium products, and for which the total taxable value of
property listed on the general tax list of personal property for
any tax year from tax year 2001 to tax year 2004 was fifty per
cent or less of the taxable value of such property listed on the
general tax list of personal property for the next preceding tax
year.
In computing the fixed-rate levy losses under divisions
(D)(1), (2), and (3) of this section for any school district,
joint vocational school district, or local taxing unit to which
division (C)(5) of this section applies, the taxable value of such
property as listed on the general tax list of personal property
for tax year 2000 shall be substituted for the taxable value of
such property as reported by taxpayers for tax year 2004, in the
taxing district containing the uranium facility, if the taxable
value listed for tax year 2000 is greater than the taxable value
reported by taxpayers for tax year 2004. For the purpose of making
the computations under divisions (D)(1), (2), and (3) of this
section, the tax year 2000 valuation is to be allocated to
machinery and equipment, inventory, and furniture and fixtures
property in the same proportions as the tax year 2004 values. For
the purpose of the calculations in division (A) of section 5751.21
of the Revised Code, the tax year 2004 taxable values shall be
used.
To facilitate the calculations required under division (C) of
this section, the county auditor, upon request from the tax
commissioner, shall provide by August 1, 2005, the values of
machinery and equipment, inventory, and furniture and fixtures for
all single-county personal property taxpayers for tax year 2004.
(D) Not later than September 15, 2005, the tax commissioner
shall determine for each tax year from 2006 through 2009 for each
school district, joint vocational school district, and local
taxing unit its machinery and equipment, inventory, and furniture
and fixtures fixed-rate levy losses, and for each tax year from
2006 through 2011 its telephone property fixed-rate levy loss.
Except as provided in division (F) of this section, such losses
are the applicable amounts described in divisions (D)(1), (2),
(3), and (4) of this section:
(1) The machinery and equipment fixed-rate levy loss is the
machinery and equipment property tax value loss multiplied by the
sum of the tax rates of fixed-rate qualifying levies.
(2) The inventory fixed-rate loss is the inventory property
tax value loss multiplied by the sum of the tax rates of
fixed-rate qualifying levies.
(3) The furniture and fixtures fixed-rate levy loss is the
furniture and fixture property tax value loss multiplied by the
sum of the tax rates of fixed-rate qualifying levies.
(4) The telephone property fixed-rate levy loss is the
telephone property tax value loss multiplied by the sum of the tax
rates of fixed-rate qualifying levies.
(E) Not later than September 15, 2005, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its fixed-sum levy loss. The
fixed-sum levy loss is the amount obtained by subtracting the
amount described in division (E)(2) of this section from the
amount described in division (E)(1) of this section:
(1) The sum of the machinery and equipment property tax value
loss, the inventory property tax value loss, and the furniture and
fixtures property tax value loss, and, for 2008 through 2010, the
telephone property tax value loss of the district or unit
multiplied by the sum of the fixed-sum tax rates of qualifying
levies. For 2006 through 2010, this computation shall include all
qualifying levies remaining in effect for the current tax year and
any school district levies charged and payable under section
5705.194 or 5705.213 of the Revised Code that are qualifying
levies not remaining in effect for the current year. For 2011
through 2017 in the case of school district levies charged and
payable under section 5705.194 or 5705.213 of the Revised Code and
for all years after 2010 in the case of other fixed-sum levies,
this computation shall include only qualifying levies remaining in
effect for the current year. For purposes of this computation, a
qualifying school district levy charged and payable under section
5705.194 or 5705.213 of the Revised Code remains in effect in a
year after 2010 only if, for that year, the board of education
levies a school district levy charged and payable under section
5705.194, 5705.199, 5705.213, or 5705.219 of the Revised Code for
an annual sum at least equal to the annual sum levied by the board
in tax year 2004 less the amount of the payment certified under
this division for 2006.
(2) The total taxable value in tax year 2004 less the sum of
the machinery and equipment, inventory, furniture and fixtures,
and telephone property tax value losses in each school district,
joint vocational school district, and local taxing unit multiplied
by one-half of one mill per dollar.
(3) For the calculations in divisions (E)(1) and (2) of this
section, the tax value losses are those that would be calculated
for tax year 2009 under divisions (C)(1), (2), and (3) of this
section and for tax year 2011 under division (C)(4) of this
section.
(4) To facilitate the calculation under divisions (D) and (E)
of this section, not later than September 1, 2005, any school
district, joint vocational school district, or local taxing unit
that has a qualifying levy that was approved at an election
conducted during 2005 before September 1, 2005, shall certify to
the tax commissioner a copy of the county auditor's certificate of
estimated property tax millage for such levy as required under
division (B) of section 5705.03 of the Revised Code, which is the
rate that shall be used in the calculations under such divisions.
If the amount determined under division (E) of this section
for any school district, joint vocational school district, or
local taxing unit is greater than zero, that amount shall equal
the reimbursement to be paid pursuant to division (E) of section
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,
and the one-half of one mill that is subtracted under division
(E)(2) of this section shall be apportioned among all contributing
fixed-sum levies in the proportion that each levy bears to the sum
of all fixed-sum levies within each school district, joint
vocational school district, or local taxing unit.
(F) If a school district levies a tax under section 5705.219
of the Revised Code, the fixed-rate levy loss for qualifying
levies, to the extent repealed under that section, shall equal the
sum of the following amounts in lieu of the amounts computed for
such levies under division (D) of this section:
(1) The sum of the rates of qualifying levies to the extent
so repealed multiplied by the sum of the machinery and equipment,
inventory, and furniture and fixtures tax value losses for 2009 as
determined under that division;
(2) The sum of the rates of qualifying levies to the extent
so repealed multiplied by the telephone property tax value loss
for 2011 as determined under that division.
The fixed-rate levy losses for qualifying levies to the
extent not repealed under section 5705.219 of the Revised Code
shall be as determined under division (D) of this section. The
revised fixed-rate levy losses determined under this division and
division (D) of this section first apply in the year following the
first year the district levies the tax under section 5705.219 of
the Revised Code.
(G) Not later than October 1, 2005, the tax commissioner
shall certify to the department of education for every school
district and joint vocational school district the machinery and
equipment, inventory, furniture and fixtures, and telephone
property tax value losses determined under division (C) of this
section, the machinery and equipment, inventory, furniture and
fixtures, and telephone fixed-rate levy losses determined under
division (D) of this section, and the fixed-sum levy losses
calculated under division (E) of this section. The calculations
under divisions (D) and (E) of this section shall separately
display the levy loss for each levy eligible for reimbursement.
(H) Not later than October 1, 2005, the tax commissioner
shall certify the amount of the fixed-sum levy losses to the
county auditor of each county in which a school district, joint
vocational school district, or local taxing unit with a fixed-sum
levy loss reimbursement has territory.
(I) Not later than the twenty-eighth day of February each
year beginning in 2011 and ending in 2014, the tax commissioner
shall certify to the department of education for each school
district first levying a tax under section 5705.219 of the Revised
Code in the preceding year the revised fixed-rate levy losses
determined under divisions (D) and (F) of this section.
(J)(1) There is hereby created in the state treasury the
commercial activity tax motor fuel receipts fund.
(2)(a) On or before June 15, 2014, the director of the Ohio
public works commission shall certify to the director of budget
and management the amount of debt service paid from the general
revenue fund in fiscal years 2013 and 2014 on bonds issued to
finance or assist in the financing of the cost of local
subdivision public infrastructure capital improvement projects, as
provided for in Sections 2k, 2m, and 2p of Article VIII, Ohio
Constitution, that are attributable to costs for construction,
reconstruction, maintenance, or repair of public highways and
bridges and other statutory highway purposes. That certification
shall allocate the total amount of debt service paid from the
general revenue fund and attributable to those costs in each of
fiscal years 2013 and 2014 according to the applicable section of
the Ohio Constitution under which the bonds were originally
issued.
(b) On or before June 30, 2014, the director of budget and
management shall determine an amount up to but not exceeding the
amount certified under division (J)(2)(a) of this section and
shall reserve that amount from the cash balance in the commercial
activity tax motor fuel receipts fund for transfer to the general
revenue fund at times and in amounts to be determined by the
director. The director shall transfer the cash balance in the
commercial activity tax motor fuel receipts fund in excess of the
amount so reserved to the highway operating fund on or before June
30, 2014.
(3)(a) On or before the fifteenth day of June of each fiscal
year beginning with fiscal year 2015, the director of the Ohio
public works commission shall certify to the director of budget
and management the amount of debt service paid from the general
revenue fund in the current fiscal year on bonds issued to finance
or assist in the financing of the cost of local subdivision public
infrastructure capital improvement projects, as provided for in
Sections 2k, 2m, and 2p of Article VIII, Ohio Constitution, that
are attributable to costs for construction, reconstruction,
maintenance, or repair of public highways and bridges and other
statutory highway purposes. That certification shall allocate the
total amount of debt service paid from the general revenue fund
and attributable to those costs in the current fiscal year
according to the applicable section of the Ohio Constitution under
which the bonds were originally issued.
(b) On or before the thirtieth day of June of each fiscal
year beginning with fiscal year 2015, the director of budget and
management shall determine an amount up to but not exceeding the
amount certified under division (J)(3)(a) of this section and
shall reserve that amount from the cash balance in the motor fuel
receipts tax public highways fund or the commercial activity tax
motor fuel receipts fund for transfer to the general revenue fund
at times and in amounts to be determined by the director. The
director shall transfer the cash balance in the motor fuel
receipts tax public highways fund or the commercial activity tax
motor fuel receipts fund in excess of the amount so reserved to
the highway operating fund on or before the thirtieth day of June
of the current fiscal year.
Section 2. That existing sections 5751.03 and 5751.20 of the
Revised Code are hereby repealed.
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