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H. B. No. 685 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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Representatives Foley, Hagan, R.
Cosponsor:
Representative Ramos
A BILL
To amend sections 1509.02, 1509.34, 1509.50, 1513.08,
1513.182, 1514.11, 5705.27, 5705.32, 5731.02,
5731.19, 5731.21, 5731.39, 5731.48, 5747.02,
5747.03, 5749.01, 5749.02, 5749.06, and 5749.11
and to enact sections 321.50 and 3745.15 of the
Revised Code to create the State Environmental
Restoration Authority, to use revenue from an
increase in the income tax rate on the highest
income bracket to fund the Authority, to replace
existing oil and gas severance taxes with a tax on
the first sale of oil or gas and use the revenue
to fund local governments, oil and gas regulation,
and the Authority, and to levy a tax on decedents'
estates and use the revenue to fund local
governments and the Authority.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.02, 1509.34, 1509.50, 1513.08,
1513.182, 1514.11, 5705.27, 5705.32, 5731.02, 5731.19, 5731.21,
5731.39, 5731.48, 5747.02, 5747.03, 5749.01, 5749.02, 5749.06, and
5749.11 be amended and sections 321.50 and 3745.15 of the Revised
Code be enacted to read as follows:
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
5749.02 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. 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 collected by the chief pursuant to sections
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.222,
1509.28, 1509.34, and 1509.50 of the Revised Code, ninety per cent
and the portion of the moneys received by the treasurer of state
from the tax levied in divisions (A)(B)(5) and (6) and (C) of
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.
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. 1509.50. (A) An For oil and gas severed before January
1, 2015, a regulatory cost recovery assessment is hereby imposed
by this section on an owner. An owner shall pay the assessment in
the same manner as a severer who is required to file a return
under section 5749.06 of the Revised Code. However, an owner may
designate a severer who shall pay the owner's assessment on behalf
of the owner on the return that the severer is required to file
under that section. If a severer so pays an owner's assessment,
the severer may recoup from the owner the amount of the
assessment. Except for an exempt domestic well, the assessment
imposed shall be in addition to the taxes levied on the severance
of oil and gas under section 5749.02 of the Revised Code.
(B)(1) Except for an exempt domestic well, the oil and gas
regulatory cost recovery assessment shall be calculated on a
quarterly basis and shall be one of the following:
(a) If the sum of ten cents per barrel of oil for all of the
wells of the owner, one-half of one cent per one thousand cubic
feet of natural gas for all of the wells of the owner, and the
amount of the severance tax levied on each severer for all of the
wells of the owner under divisions (A)(5) and (6) of section
5749.02 of the Revised Code, as applicable, is greater than the
sum of fifteen dollars for each well owned by the owner, the
amount of the assessment is the sum of ten cents per barrel of oil
for all of the wells of the owner and one-half of one cent per one
thousand cubic feet of natural gas for all of the wells of the
owner.
(b) If the sum of ten cents per barrel of oil for all of the
wells of the owner, one-half of one cent per one thousand cubic
feet of natural gas for all of the wells of the owner, and the
amount of the severance tax levied on each severer for all of the
wells of the owner under divisions (A)(5) and (6) of section
5749.02 of the Revised Code, as applicable, is less than the sum
of fifteen dollars for each well owned by the owner, the amount of
the assessment is the sum of fifteen dollars for each well owned
by the owner less the amount of the tax levied on each severer for
all of the wells of the owner under divisions (A)(5) and (6) of
section 5749.02 of the Revised Code, as applicable.
(2) The oil and gas regulatory cost recovery assessment for a
well that becomes an exempt domestic well on and after June 30,
2010, shall be sixty dollars to be paid to the division of oil and
gas resources management on the first day of July of each year.
(C) All money collected pursuant to this section shall be
credited to the severance tax receipts fund. 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 in the severance tax receipts fund from
amounts collected pursuant to this section shall be credited to
the oil and gas well fund created in section 1509.02 of the
Revised Code.
(D) Except for purposes of revenue distribution as specified
in division (B) of section 5749.02 of the Revised Code, the oil
and gas regulatory cost recovery assessment imposed by this
section shall be treated the same and equivalent for all purposes
as the taxes levied on the severance of oil and gas under that
section. However, the assessment imposed by this section is not a
tax under Chapter 5749. 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. 3745.15. (A) There is hereby created within the
environmental protection agency the state environmental
restoration authority, headed by the chief of environmental
restoration. The chief shall be appointed by and shall serve at
the pleasure of the governor. The authority, under the supervision
of the chief, shall be responsible for the restoration of forests
and waterways, promoting and developing urban parks and
greenbelts, and funding environmental programs for primary school
students. The chief may appoint such personnel as are necessary to
assist the chief in carrying out those responsibilities.
(B) There is hereby created in the state treasury the
environmental restoration fund, which shall consist of moneys
credited to the fund under division (C) of this section and from
the tax levied under division (C) of section 5749.02 of the
Revised Code. The chief of environmental restoration shall use
money in the fund to pay for the operations and responsibilities
of the state environmental restoration authority.
(C)(1) On or before the fifteenth day of July of each year,
the tax commissioner shall calculate and certify to the director
of budget and management the extent to which the total revenue
collected from the tax levied under section 5747.02 of the Revised
Code for taxable years ending in the preceding year exceeds the
amount of such revenue that would have been collected for those
taxable years had the tax levied under that section been levied at
the rates in effect for taxable years beginning in 2014. The
director of budget and management shall, on or before the last day
of July of each year, transfer to the environmental restoration
fund an amount from the general revenue fund equal to that excess.
(2) On or before the twentieth day of June of each year, the
chief shall certify to the commissioner the amount of the revenue
described in division (C)(1) of this section that was distributed
to each county in the preceding calendar year.
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. 5731.02. (A) A tax is hereby levied on the transfer of
the taxable estate, determined as provided in section 5731.14 of
the Revised Code, of every person dying on or after July 1, 1968,
and before January 1, 2013, who at the time of death was a
resident of this state, as follows:
If the taxable estate is: |
The tax shall be: |
|
|
Not over $40,000 |
2% of the taxable estate |
|
|
Over $40,000 but not over $100,000 |
$800 plus 3% of the excess over $40,000 |
|
|
Over $100,000 but not over $200,000 |
$2,600 plus 4% of the excess over $100,000 |
|
|
Over $200,000 but not over $300,000 |
$6,600 plus 5% of the excess over $200,000 |
|
|
Over $300,000 but not over $500,000 |
$11,600 plus 6% of the excess over $300,000 |
|
|
Over $500,000 |
$23,600 plus 7% of the excess over $500,000. |
|
|
(B) A credit shall be allowed against the tax imposed by
division (A) of this section equal to the lesser of five hundred
dollars or the amount of the tax for persons dying on or after
July 1, 1968, but before January 1, 2001; the lesser of six
thousand six hundred dollars or the amount of the tax for persons
dying on or after January 1, 2001, but before January 1, 2002; or
the lesser of thirteen thousand nine hundred dollars or the amount
of the tax for persons dying on or after January 1, 2002.
(C) For the purposes of funding local governments and the
state environmental restoration authority, a tax is hereby levied
on the transfer of the taxable estate, determined under section
5731.14 of the Revised Code, of every person dying on or after
January 1, 2015, who at the time of death was a resident of this
state. The rate of the tax shall equal seven per cent of the
amount of the taxable estate.
(D) A credit shall be allowed against the tax imposed by
division (C) of this section equal to the lesser of thirty-five
thousand dollars or the amount of the tax.
Sec. 5731.19. (A) A tax is hereby levied upon the transfer
of so much of the taxable estate of every person dying on or after
July 1, 1968, and before January 1, 2013 or on or after January 1,
2015, who, at the time of death, was not a resident of this state,
as consists of real property situated in this state, tangible
personal property having an actual situs in this state, and
intangible personal property employed in carrying on a business
within this state unless exempted from tax under the provisions of
section 5731.34 of the Revised Code.
(B) The amount of the tax on such real and tangible personal
property shall be determined as follows:
(1) Determine the amount of tax which would be payable under
Chapter 5731. of the Revised Code if the decedent had died a
resident of this state with all the decedent's property situated
or located within this state;
(2) Multiply the tax so determined by a fraction, the
denominator of which shall be the value of the gross estate
wherever situated and the numerator of which shall be the said
gross estate value of the real property situated and the tangible
personal property having an actual situs in this state and
intangible personal property employed in carrying on a business
within this state and not exempted from tax under section 5731.34
of the Revised Code. The product shall be the amount of tax
payable to this state.
(C) In addition to the tax levied by division (A) of this
section, an additional tax is hereby levied on such real and
tangible personal property determined as follows:
(1) Determine the amount of tax which would be payable under
division (A) of section 5731.18 of the Revised Code, if the
decedent had died a resident of this state with all the decedent's
property situated or located within this state;
(2) Multiply the tax so determined by a fraction, the
denominator of which shall be the value of the gross estate
wherever situated and the numerator of which shall be the said
gross estate value of the real property situated and the tangible
property having an actual situs in this state and intangible
personal property employed in carrying on a business within this
state and not exempted from tax under section 5731.34 of the
Revised Code. The product so derived shall be credited with the
amount of the tax determined under division (B) of this section.
Sec. 5731.21. (A)(1)(a) Except as provided under division
(A)(3) of this section, the executor or administrator, or, if no
executor or administrator has been appointed, another person in
possession of property the transfer of which is subject to estate
taxes under section 5731.02 or division (A) of section 5731.19 of
the Revised Code, shall file an estate tax return, within nine
months of the date of the decedent's death, in the form prescribed
by the tax commissioner, in duplicate, with the probate court of
the county. The return shall include all property the transfer of
which is subject to estate taxes, whether that property is
transferred under the last will and testament of the decedent or
otherwise. The time for filing the return may be extended by the
tax commissioner.
(b) The estate tax return described in division (A)(1)(a) of
this section shall be accompanied by a certificate, in the form
prescribed by the tax commissioner, that is signed by the
executor, administrator, or other person required to file the
return, and that states all of the following:
(i) The fact that the return was filed;
(ii) The date of the filing of the return;
(iii) The fact that the estate taxes under section 5731.02 or
division (A) of section 5731.19 of the Revised Code, that are
shown to be due in the return, have been paid in full;
(iv) If applicable, the fact that real property listed in the
inventory for the decedent's estate is included in the return;
(v) If applicable, the fact that real property not listed in
the inventory for the decedent's estate, including, but not
limited to, survivorship tenancy property as described in section
5302.17 of the Revised Code or transfer on death property as
described in sections 5302.22 and 5302.23 of the Revised Code,
also is included in the return. In this regard, the certificate
additionally shall describe that real property by the same
description used in the return.
(2) The probate court shall forward one copy of the estate
tax return described in division (A)(1)(a) of this section to the
tax commissioner.
(3) A person shall not be required to file a return under
division (A) of this section if the decedent was a resident of
this state and the value of the decedent's gross estate is
twenty-five thousand dollars or less in the case of a decedent
dying on or after July 1, 1968, but before January 1, 2001; two
hundred thousand dollars or less in the case of a decedent dying
on or after January 1, 2001, but before January 1, 2002; or three
hundred thirty-eight thousand three hundred thirty-three dollars
or less in the case of a decedent dying on or after January 1,
2002. No return shall be filed for estates of decedents dying on
or after January 1, 2013. A person shall not be required to file a
return if the decedent died on or after January 1, 2015, and the
value of the decedent's gross estate is five hundred thousand
dollars or less.
(4)(a) Upon receipt of the estate tax return described in
division (A)(1)(a) of this section and the accompanying
certificate described in division (A)(1)(b) of this section, the
probate court promptly shall give notice of the return, by a form
prescribed by the tax commissioner, to the county auditor. The
auditor then shall make a charge based upon the notice and shall
certify a duplicate of the charge to the county treasurer. The
treasurer then shall collect, subject to division (A) of section
5731.25 of the Revised Code or any other statute extending the
time for payment of an estate tax, the tax so charged.
(b) Upon receipt of the return and the accompanying
certificate, the probate court also shall forward the certificate
to the auditor. When satisfied that the estate taxes under section
5731.02 or division (A) of section 5731.19 of the Revised Code,
that are shown to be due in the return, have been paid in full,
the auditor shall stamp the certificate so forwarded to verify
that payment. The auditor then shall return the stamped
certificate to the probate court.
(5)(a) The certificate described in division (A)(1)(b) of
this section is a public record subject to inspection and copying
in accordance with section 149.43 of the Revised Code. It shall be
kept in the records of the probate court pertaining to the
decedent's estate and is not subject to the confidentiality
provisions of section 5731.90 of the Revised Code.
(b) All persons are entitled to rely on the statements
contained in a certificate as described in division (A)(1)(b) of
this section if it has been filed in accordance with that
division, forwarded to a county auditor and stamped in accordance
with division (A)(4) of this section, and placed in the records of
the probate court pertaining to the decedent's estate in
accordance with division (A)(5)(a) of this section. The real
property referred to in the certificate shall be free of, and may
be regarded by all persons as being free of, any lien for estate
taxes under section 5731.02 and division (A) of section 5731.19 of
the Revised Code.
(B) An estate tax return filed under this section, in the
form prescribed by the tax commissioner, and showing that no
estate tax is due shall result in a determination that no estate
tax is due, if the tax commissioner within three months after the
receipt of the return by the department of taxation, fails to file
exceptions to the return in the probate court of the county in
which the return was filed. A copy of exceptions to a return of
that nature, when the tax commissioner files them within that
period, shall be sent by ordinary mail to the person who filed the
return. The tax commissioner is not bound under this division by a
determination that no estate tax is due, with respect to property
not disclosed in the return.
(C) If the executor, administrator, or other person required
to file an estate tax return fails to file it within nine months
of the date of the decedent's death, the tax commissioner may
determine the estate tax in that estate and issue a certificate of
determination in the same manner as is provided in division (B) of
section 5731.27 of the Revised Code. A certificate of
determination of that nature has the same force and effect as
though a return had been filed and a certificate of determination
issued with respect to the return.
Sec. 5731.39. This section does not apply to, and the
written permission of the tax commissioner is not required for
asset transfers with respect to, decedents dying on or after
January 1, 2013, or before January 1, 2015.
(A) No corporation organized or existing under the laws of
this state shall transfer on its books or issue a new certificate
for any share of its capital stock registered in the name of a
decedent, or in trust for a decedent, or in the name of a decedent
and another person or persons, without the written consent of the
tax commissioner.
(B) No safe deposit company, trust company, financial
institution as defined in division (A) of section 5725.01 of the
Revised Code, or other corporation or person, having in
possession, control, or custody a deposit standing in the name of
a decedent, or in trust for a decedent, or in the name of a
decedent and another person or persons, shall deliver or transfer
an amount in excess of three-fourths of the total value of such
deposit, including accrued interest and dividends, as of the date
of decedent's death, without the written consent of the tax
commissioner. The written consent of the tax commissioner need not
be obtained prior to the delivery or transfer of amounts having a
value of three-fourths or less of said total value.
(C) No life insurance company shall pay the proceeds of an
annuity or matured endowment contract, or of a life insurance
contract payable to the estate of a decedent, or of any other
insurance contract taxable under Chapter 5731. of the Revised
Code, without the written consent of the tax commissioner. Any
life insurance company may pay the proceeds of any insurance
contract not specified in this division (C) without the written
consent of the tax commissioner.
(D) No trust company or other corporation or person shall pay
the proceeds of any death benefit, retirement, pension, or
profit-sharing plan in excess of two thousand dollars, without the
written consent of the tax commissioner. Such trust company or
other corporation or person, however, may pay the proceeds of any
death benefit, retirement, pension, or profit-sharing plan which
consists of insurance on the life of the decedent payable to a
beneficiary other than the estate of the insured without the
written consent of the tax commissioner.
(E) No safe deposit company, trust company, financial
institution as defined in division (A) of section 5725.01 of the
Revised Code, or other corporation or person, having in
possession, control, or custody securities, assets, or other
property (including the shares of the capital stock of, or other
interest in, such safe deposit company, trust company, financial
institution as defined in division (A) of section 5725.01 of the
Revised Code, or other corporation), standing in the name of a
decedent, or in trust for a decedent, or in the name of a decedent
and another person or persons, and the transfer of which is
taxable under Chapter 5731. of the Revised Code, shall deliver or
transfer any such securities, assets, or other property which have
a value as of the date of decedent's death in excess of
three-fourths of the total value thereof, without the written
consent of the tax commissioner. The written consent of the tax
commissioner need not be obtained prior to the delivery or
transfer of any such securities, assets, or other property having
a value of three-fourths or less of said total value.
(F) No safe deposit company, financial institution as defined
in division (A) of section 5725.01 of the Revised Code, or other
corporation or person having possession or control of a safe
deposit box or similar receptacle standing in the name of a
decedent or in the name of the decedent and another person or
persons, or to which the decedent had a right of access, except
when such safe deposit box or other receptacle stands in the name
of a corporation or partnership, or in the name of the decedent as
guardian or executor, shall deliver any of the contents thereof
unless the safe deposit box or similar receptacle has been opened
and inventoried in the presence of the tax commissioner or the
commissioner's agent, and a written consent to transfer issued;
provided, however, that a safe deposit company, financial
institution, or other corporation or person having possession or
control of a safe deposit box may deliver wills, deeds to burial
lots, and insurance policies to a representative of the decedent,
but that a representative of the safe deposit company, financial
institution, or other corporation or person must supervise the
opening of the box and make a written record of the wills, deeds,
and policies removed. Such written record shall be included in the
tax commissioner's inventory records.
(G) Notwithstanding any provision of this section:
(1) The tax commissioner may authorize any delivery or
transfer or waive any of the foregoing requirements under such
terms and conditions as the commissioner may prescribe;
(2) A home, as defined in section 3721.10 of the Revised
Code, or a residential facility licensed under section 5119.34 of
the Revised Code that provides accommodations, supervision, and
personal care services for three to sixteen unrelated adults, may
transfer or use the money in a personal needs allowance account in
accordance with section 5162.22 of the Revised Code without the
written consent of the tax commissioner, and without the account
having been opened and inventoried in the presence of the
commissioner or the commissioner's agent.
Failure to comply with this section shall render such safe
deposit company, trust company, life insurance company, financial
institution as defined in division (A) of section 5725.01 of the
Revised Code, or other corporation or person liable for the amount
of the taxes and interest due under the provisions of Chapter
5731. of the Revised Code on the transfer of such stock, deposit,
proceeds of an annuity or matured endowment contract or of a life
insurance contract payable to the estate of a decedent, or other
insurance contract taxable under Chapter 5731. of the Revised
Code, proceeds of any death benefit, retirement, pension, or
profit-sharing plan in excess of two thousand dollars, or
securities, assets, or other property of any resident decedent,
and in addition thereto, to a penalty of not less than five
hundred or more than five thousand dollars.
Sec. 5731.48. (A) If a decedent dies on or after July 1,
1989, and before January 1, 2001, sixty-four per cent of the gross
amount of taxes levied and paid under this chapter shall be for
the use of the municipal corporation or township in which the tax
originates, and shall be credited as provided in division (A)(1),
(2), or (3) of this section:
(1) To the general revenue fund in the case of a city;
(2) To the general revenue fund of a village or to the board
of education of a village, for school purposes, as the village
council by resolution may approve;
(3) To the general revenue fund or to the board of education
of the school district of which the township is a part, for school
purposes, as the board of township trustees by resolution may
approve, in the case of a township.
The remainder of the taxes levied and paid shall be for the
use of the state and shall be credited to the general revenue
fund.
(B) If a decedent dies on or after January 1, 2001, and
before January 1, 2002, seventy per cent of the gross amount of
taxes levied and paid under this chapter shall be for the use of
the municipal corporation or township in which the tax originates
and credited as provided in division (A)(1), (2), or (3) of this
section, and the remainder shall be for the use of the state and
credited to the general revenue fund.
(C) If a decedent dies on or after January 1, 2002, and
before January 1, 2013, eighty per cent of the gross amount of
taxes levied and paid under this chapter, less any deduction from
the municipal corporation's or township's share of those taxes for
fees or expenses charged under section 5731.47 of the Revised
Code, shall be for the use of the municipal corporation or
township in which the tax originates and credited as provided in
division (A)(1), (2), or (3) of this section, and the remainder,
less any deduction from the state's share of those taxes for fees
or expenses charged under section 5731.47 of the Revised Code,
shall be for the use of the state and shall be credited to the
general revenue fund.
(D) If a decedent dies on or after January 1, 2015, fifty per
cent of the gross amount of taxes levied and paid under this
chapter, less any deduction from the municipal corporation's or
township's share of those taxes for fees or expenses charged under
section 5731.47 of the Revised Code, shall be for the use of the
municipal corporation or township in which the tax originates and
credited as provided in division (A)(1), (2), or (3) of this
section, and the remainder, less any deduction from the state's
share of those taxes for fees or expenses charged under section
5731.47 of the Revised Code, shall be credited to the
environmental restoration fund created in section 3745.15 of the
Revised Code.
(E) If a municipal corporation is in default with respect to
the principal or interest of any outstanding notes or bonds, one
half of the taxes distributed under this section shall be credited
to the sinking or bond retirement fund of the municipal
corporation, and the residue shall be credited to the general
revenue fund.
(E)(F) The council, board of trustees, or other legislative
authority of a village or township may, by ordinance in the case
of a village, or by resolution in the case of a township, provide
that whenever there is money in the treasury of the village or
township from taxes levied under this chapter, not required for
immediate use, that money may be invested in federal, state,
county, or municipal bonds, upon which there has been no default
of the principal during the preceding five years.
Sec. 5747.02. (A) For the purpose of providing revenue for
the support of schools and local government functions, to provide
relief to property taxpayers, to provide revenue for the general
revenue fund, and to meet the expenses of administering the tax
levied by this chapter, there is hereby levied on every
individual, trust, and estate residing in or earning or receiving
income in this state, on every individual, trust, and estate
earning or receiving lottery winnings, prizes, or awards pursuant
to Chapter 3770. of the Revised Code, on every individual, trust,
and estate earning or receiving winnings on casino gaming, and on
every individual, trust, and estate otherwise having nexus with or
in this state under the Constitution of the United States, an
annual tax measured in the case of individuals by Ohio adjusted
gross income less an exemption for the taxpayer, the taxpayer's
spouse, and each dependent as provided in section 5747.025 of the
Revised Code; measured in the case of trusts by modified Ohio
taxable income under division (D) of this section; and measured in
the case of estates by Ohio taxable income. The tax imposed by
this section on the balance thus obtained is hereby levied as
follows:
(1) For taxable years beginning in 2004:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
|
|
|
OR |
|
|
|
MODIFIED OHIO |
|
|
|
TAXABLE INCOME (TRUSTS) |
|
|
|
OR |
|
|
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
|
$5,000 or less |
|
.743% |
|
|
More than $5,000 but not more than $10,000 |
|
$37.15 plus 1.486% of the amount in excess of $5,000 |
|
|
More than $10,000 but not more than $15,000 |
|
$111.45 plus 2.972% of the amount in excess of $10,000 |
|
|
More than $15,000 but not more than $20,000 |
|
$260.05 plus 3.715% of the amount in excess of $15,000 |
|
|
More than $20,000 but not more than $40,000 |
|
$445.80 plus 4.457% of the amount in excess of $20,000 |
|
|
More than $40,000 but not more than $80,000 |
|
$1,337.20 plus 5.201% of the amount in excess of $40,000 |
|
|
More than $80,000 but not more than $100,000 |
|
$3,417.60 plus 5.943% of the amount in excess of $80,000 |
|
|
More than $100,000 but not more than $200,000 |
|
$4,606.20 plus 6.9% of the amount in excess of $100,000 |
|
|
More than $200,000 |
|
$11,506.20 plus 7.5% of the amount in excess of $200,000 |
|
|
(2) For taxable years beginning in 2005:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
|
|
|
OR |
|
|
|
MODIFIED OHIO |
|
|
|
TAXABLE INCOME (TRUSTS) |
|
|
|
OR |
|
|
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
|
$5,000 or less |
|
.712% |
|
|
More than $5,000 but not more than $10,000 |
|
$35.60 plus 1.424% of the amount in excess of $5,000 |
|
|
More than $10,000 but not more than $15,000 |
|
$106.80 plus 2.847% of the amount in excess of $10,000 |
|
|
More than $15,000 but not more than $20,000 |
|
$249.15 plus 3.559% of the amount in excess of $15,000 |
|
|
More than $20,000 but not more than $40,000 |
|
$427.10 plus 4.27% of the amount in excess of $20,000 |
|
|
More than $40,000 but not more than $80,000 |
|
$1,281.10 plus 4.983% of the amount in excess of $40,000 |
|
|
More than $80,000 but not more than $100,000 |
|
$3,274.30 plus 5.693% of the amount in excess of $80,000 |
|
|
More than $100,000 but not more than $200,000 |
|
$4,412.90 plus 6.61% of the amount in excess of $100,000 |
|
|
More than $200,000 |
|
$11,022.90 plus 7.185% of the amount in excess of $200,000 |
|
|
(3) For taxable years beginning in 2006:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
|
|
|
OR |
|
|
|
MODIFIED OHIO |
|
|
|
TAXABLE INCOME (TRUSTS) |
|
|
|
OR |
|
|
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
|
$5,000 or less |
|
.681% |
|
|
More than $5,000 but not more than $10,000 |
|
$34.05 plus 1.361% of the amount in excess of $5,000 |
|
|
More than $10,000 but not more than $15,000 |
|
$102.10 plus 2.722% of the amount in excess of $10,000 |
|
|
More than $15,000 but not more than $20,000 |
|
$238.20 plus 3.403% of the amount in excess of $15,000 |
|
|
More than $20,000 but not more than $40,000 |
|
$408.35 plus 4.083% of the amount in excess of $20,000 |
|
|
More than $40,000 but not more than $80,000 |
|
$1,224.95 plus 4.764% of the amount in excess of $40,000 |
|
|
More than $80,000 but not more than $100,000 |
|
$3,130.55 plus 5.444% of the amount in excess of $80,000 |
|
|
More than $100,000 but not more than $200,000 |
|
$4,219.35 plus 6.32% of the amount in excess of $100,000 |
|
|
More than $200,000 |
|
$10,539.35 plus 6.87% of the amount in excess of $200,000 |
|
|
(4) For taxable years beginning in 2007:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
|
|
|
OR |
|
|
|
MODIFIED OHIO |
|
|
|
TAXABLE INCOME (TRUSTS) |
|
|
|
OR |
|
|
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
|
$5,000 or less |
|
.649% |
|
|
More than $5,000 but not more than $10,000 |
|
$32.45 plus 1.299% of the amount in excess of $5,000 |
|
|
More than $10,000 but not more than $15,000 |
|
$97.40 plus 2.598% of the amount in excess of $10,000 |
|
|
More than $15,000 but not more than $20,000 |
|
$227.30 plus 3.247% of the amount in excess of $15,000 |
|
|
More than $20,000 but not more than $40,000 |
|
$389.65 plus 3.895% of the amount in excess of $20,000 |
|
|
More than $40,000 but not more than $80,000 |
|
$1,168.65 plus 4.546% of the amount in excess of $40,000 |
|
|
More than $80,000 but not more than $100,000 |
|
$2,987.05 plus 5.194% of the amount in excess of $80,000 |
|
|
More than $100,000 but not more than $200,000 |
|
$4,025.85 plus 6.031% of the amount in excess of $100,000 |
|
|
More than $200,000 |
|
$10,056.85 plus 6.555% of the amount in excess of $200,000 |
|
|
(5) For taxable years beginning in 2008, 2009, or 2010:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
|
|
|
OR |
|
|
|
MODIFIED OHIO |
|
|
|
TAXABLE INCOME (TRUSTS) |
|
|
|
OR |
|
|
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
|
$5,000 or less |
|
.618% |
|
|
More than $5,000 but not more than $10,000 |
|
$30.90 plus 1.236% of the amount in excess of $5,000 |
|
|
More than $10,000 but not more than $15,000 |
|
$92.70 plus 2.473% of the amount in excess of $10,000 |
|
|
More than $15,000 but not more than $20,000 |
|
$216.35 plus 3.091% of the amount in excess of $15,000 |
|
|
More than $20,000 but not more than $40,000 |
|
$370.90 plus 3.708% of the amount in excess of $20,000 |
|
|
More than $40,000 but not more than $80,000 |
|
$1,112.50 plus 4.327% of the amount in excess of $40,000 |
|
|
More than $80,000 but not more than $100,000 |
|
$2,843.30 plus 4.945% of the amount in excess of $80,000 |
|
|
More than $100,000 but not more than $200,000 |
|
$3,832.30 plus 5.741% of the amount in excess of $100,000 |
|
|
More than $200,000 |
|
$9,573.30 plus 6.24% of the amount in excess of $200,000 |
|
|
(6) For taxable years beginning in 2011 or 2012:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
|
|
|
OR |
|
|
|
MODIFIED OHIO |
|
|
|
TAXABLE INCOME (TRUSTS) |
|
|
|
OR |
|
|
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
|
$5,000 or less |
|
.587% |
|
|
More than $5,000 but not more than $10,000 |
|
$29.35 plus 1.174% of the amount in excess of $5,000 |
|
|
More than $10,000 but not more than $15,000 |
|
$88.05 plus 2.348% of the amount in excess of $10,000 |
|
|
More than $15,000 but not more than $20,000 |
|
$205.45 plus 2.935% of the amount in excess of $15,000 |
|
|
More than $20,000 but not more than $40,000 |
|
$352.20 plus 3.521% of the amount in excess of $20,000 |
|
|
More than $40,000 but not more than $80,000 |
|
$1,056.40 plus 4.109% of the amount in excess of $40,000 |
|
|
More than $80,000 but not more than $100,000 |
|
$2,700.00 plus 4.695% of the amount in excess of $80,000 |
|
|
More than $100,000 but not more than $200,000 |
|
$3,639.00 plus 5.451% of the amount in excess of $100,000 |
|
|
More than $200,000 |
|
$9,090.00 plus 5.925% of the amount in excess of $200,000 |
|
|
(7) For taxable years beginning in 2013:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
|
|
|
OR |
|
|
|
MODIFIED OHIO |
|
|
|
TAXABLE INCOME (TRUSTS) |
|
|
|
OR |
|
|
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
|
$5,000 or less |
|
.537% |
|
|
More than $5,000 but not more than $10,000 |
|
$26.86 plus 1.074% of the amount in excess of $5,000 |
|
|
More than $10,000 but not more than $15,000 |
|
$80.57 plus 2.148% of the amount in excess of $10,000 |
|
|
More than $15,000 but not more than $20,000 |
|
$187.99 plus 2.686% of the amount in excess of $15,000 |
|
|
More than $20,000 but not more than $40,000 |
|
$322.26 plus 3.222% of the amount in excess of $20,000 |
|
|
More than $40,000 but not more than $80,000 |
|
$966.61 plus 3.760% of the amount in excess of $40,000 |
|
|
More than $80,000 but not more than $100,000 |
|
$2,470.50 plus 4.296% of the amount in excess of $80,000 |
|
|
More than $100,000 but not more than $200,000 |
|
$3,329.68 plus 4.988% of the amount in excess of $100,000 |
|
|
More than $200,000 |
|
$8,317.35 plus 5.421% of the amount in excess of $200,000 |
|
|
(8) For taxable years beginning in 2014 or thereafter:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
|
|
|
OR |
|
|
|
MODIFIED OHIO |
|
|
|
TAXABLE INCOME (TRUSTS) |
|
|
|
OR |
|
|
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
|
$5,000 or less |
|
.528% |
|
|
More than $5,000 but not more than $10,000 |
|
$26.41 plus 1.057% of the amount in excess of $5,000 |
|
|
More than $10,000 but not more than $15,000 |
|
$79.24 plus 2.113% of the amount in excess of $10,000 |
|
|
More than $15,000 but not more than $20,000 |
|
$184.90 plus 2.642% of the amount in excess of $15,000 |
|
|
More than $20,000 but not more than $40,000 |
|
$316.98 plus 3.169% of the amount in excess of $20,000 |
|
|
More than $40,000 but not more than $80,000 |
|
$950.76 plus 3.698% of the amount in excess of $40,000 |
|
|
More than $80,000 but not more than $100,000 |
|
$2,430.00 plus 4.226% of the amount in excess of $80,000 |
|
|
More than $100,000 but not more than $200,000 |
|
$3,275.10 plus 4.906% of the amount in excess of $100,000 |
|
|
More than $200,000 |
|
$8,181.00 plus 5.333% of the amount in excess of $200,000 |
|
|
(9) For taxable years beginning in 2015 or thereafter:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) |
|
|
|
OR |
|
|
|
MODIFIED OHIO |
|
|
|
TAXABLE INCOME (TRUSTS) |
|
|
|
OR |
|
|
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
|
|
$5,000 or less |
|
.528% |
|
|
More than $5,000 but not more than $10,000 |
|
$26.41 plus 1.057% of the amount in excess of $5,000 |
|
|
More than $10,000 but not more than $15,000 |
|
$79.24 plus 2.113% of the amount in excess of $10,000 |
|
|
More than $15,000 but not more than $20,000 |
|
$184.90 plus 2.642% of the amount in excess of $15,000 |
|
|
More than $20,000 but not more than $40,000 |
|
$316.98 plus 3.169% of the amount in excess of $20,000 |
|
|
More than $40,000 but not more than $80,000 |
|
$950.76 plus 3.698% of the amount in excess of $40,000 |
|
|
More than $80,000 but not more than $100,000 |
|
$2,430.00 plus 4.226% of the amount in excess of $80,000 |
|
|
More than $100,000 but not more than $200,000 |
|
$3,275.10 plus 4.906% of the amount in excess of $100,000 |
|
|
More than $200,000 |
|
$8,181.00 plus 12.333% of the amount in excess of $200,000 |
|
|
Except as otherwise provided in this division, in August of
each year, the tax commissioner shall make a new adjustment to the
income amounts prescribed in this division by multiplying the
percentage increase in the gross domestic product deflator
computed that year under section 5747.025 of the Revised Code by
each of the income amounts resulting from the adjustment under
this division in the preceding year, adding the resulting product
to the corresponding income amount resulting from the adjustment
in the preceding year, and rounding the resulting sum to the
nearest multiple of fifty dollars. The tax commissioner also shall
recompute each of the tax dollar amounts to the extent necessary
to reflect the new adjustment of the income amounts. The rates of
taxation shall not be adjusted.
The adjusted amounts apply to taxable years beginning in the
calendar year in which the adjustments are made and to taxable
years beginning in each ensuing calendar year until a calendar
year in which a new adjustment is made pursuant to this division.
The tax commissioner shall not make a new adjustment in any year
in which the amount resulting from the adjustment would be less
than the amount resulting from the adjustment in the preceding
year. The commissioner shall not make a new adjustment for taxable
years beginning in 2013, 2014, or 2015.
(B) If the director of budget and management makes a
certification to the tax commissioner under division (B) of
section 131.44 of the Revised Code, the amount of tax as
determined under division (A) of this section shall be reduced by
the percentage prescribed in that certification for taxable years
beginning in the calendar year in which that certification is
made.
(C) The levy of this tax on income does not prevent a
municipal corporation, a joint economic development zone created
under section 715.691, or a joint economic development district
created under section 715.70 or 715.71 or sections 715.72 to
715.81 of the Revised Code from levying a tax on income.
(D) This division applies only to taxable years of a trust
beginning in 2002 or thereafter.
(1) The tax imposed by this section on a trust shall be
computed by multiplying the Ohio modified taxable income of the
trust by the rates prescribed by division (A) of this section.
(2) A resident trust may claim a credit against the tax
computed under division (D) of this section equal to the lesser of
(1) the tax paid to another state or the District of Columbia on
the resident trust's modified nonbusiness income, other than the
portion of the resident trust's nonbusiness income that is
qualifying investment income as defined in section 5747.012 of the
Revised Code, or (2) the effective tax rate, based on modified
Ohio taxable income, multiplied by the resident trust's modified
nonbusiness income other than the portion of the resident trust's
nonbusiness income that is qualifying investment income. The
credit applies before any other applicable credits.
(3) The credits enumerated in divisions (A)(1) to (13) of
section 5747.98 of the Revised Code do not apply to a trust
subject to division (D) of this section. Any credits enumerated in
other divisions of section 5747.98 of the Revised Code apply to a
trust subject to division (D) of this section. To the extent that
the trust distributes income for the taxable year for which a
credit is available to the trust, the credit shall be shared by
the trust and its beneficiaries. The tax commissioner and the
trust shall be guided by applicable regulations of the United
States treasury regarding the sharing of credits.
(E) For the purposes of this section, "trust" means any trust
described in Subchapter J of Chapter 1 of the Internal Revenue
Code, excluding trusts that are not irrevocable as defined in
division (I)(3)(b) of section 5747.01 of the Revised Code and that
have no modified Ohio taxable income for the taxable year,
charitable remainder trusts, qualified funeral trusts and preneed
funeral contract trusts established pursuant to sections 4717.31
to 4717.38 of the Revised Code that are not qualified funeral
trusts, endowment and perpetual care trusts, qualified settlement
trusts and funds, designated settlement trusts and funds, and
trusts exempted from taxation under section 501(a) of the Internal
Revenue Code.
Sec. 5747.03. (A) All money collected under this chapter
arising from the taxes imposed by section 5747.02 or 5747.41 of
the Revised Code shall be credited to the general revenue fund,
except that the treasurer of state shall, at the beginning of each
calendar quarter, credit to the Ohio political party fund,
pursuant to section 3517.16 of the Revised Code, an amount equal
to the total dollar value realized from the taxpayer exercise of
the income tax checkoff option on tax forms processed during the
preceding calendar quarter.
(B)(1) Following the crediting of moneys pursuant to division
(A) of this section, the remainder deposited in the general
revenue fund shall be distributed pursuant to division (F) of
section 321.24 and section 323.156 of the Revised Code; to make
subsidy payments to institutions of higher education from
appropriations to the Ohio board of regents; to support
expenditures for programs and services for the mentally ill,
mentally retarded, developmentally disabled, and elderly; for
primary and secondary education; for medical assistance; and for
any other purposes authorized by law, subject to the limitation
that at least fifty per cent of the income tax collected by the
state from the tax imposed by section 5747.02 of the Revised Code
shall be returned pursuant to Section 9 of Article XII, Ohio
Constitution.
(2) To ensure that such constitutional requirement is
satisfied the tax commissioner shall, on or before the thirtieth
day of June of each year, from the best information available to
the tax commissioner, determine and certify for each county to the
director of budget and management the amount of taxes collected
under this chapter from the tax imposed under section 5747.02 of
the Revised Code during the preceding calendar year that are
required to be returned to the county by Section 9 of Article XII,
Ohio Constitution. The director shall provide for payment from the
general revenue fund to the county in the amount, if any, that the
sum of the amount so certified for that county exceeds the sum of
the following:
(a) The sum of the payments from the general revenue fund for
the preceding calendar year credited to the county's undivided
income tax fund pursuant to division (F) of section 321.24 and
section 323.156 of the Revised Code or made directly from the
general revenue fund to political subdivisions located in the
county;
(b) The sum of the amounts from the general revenue fund
distributed in the county during the preceding calendar year for
subsidy payments to institutions of higher education from
appropriations to the Ohio board of regents; for programs and
services for mentally ill, mentally retarded, developmentally
disabled, and elderly persons; for primary and secondary
education; and for medical assistance; and for the activities
described in section 3745.15 of the Revised Code.
(c) In the case of payments made by the director under this
division in 2007, the total amount distributed to the county
during the preceding calendar year from the local government fund
and the local government revenue assistance fund, and, in the case
of payments made by the director under this division in subsequent
calendar years, the amount distributed to the county from the
local government fund;
(d) In the case of payments made by the director under this
division, the total amount distributed to the county during the
preceding calendar year from the public library fund.
Payments under this division shall be credited to the
county's undivided income tax fund, except that, notwithstanding
section 5705.14 of the Revised Code, such payments may be
transferred by the board of county commissioners to the county
general fund by resolution adopted with the affirmative vote of
two-thirds of the members thereof.
(C) All payments received in each month from taxes imposed
under Chapter 5748. of the Revised Code and any penalties or
interest thereon shall be paid into the school district income tax
fund, which is hereby created in the state treasury, except that
an amount equal to the following portion of such payments shall be
paid into the general school district income tax administrative
fund, which is hereby created in the state treasury:
(1) One and three-quarters of one per cent of those received
in fiscal year 1996;
(2) One and one-half per cent of those received in fiscal
year 1997 and thereafter.
Money in the school district income tax administrative fund
shall be used by the tax commissioner to defray costs incurred in
administering the school district's income tax, including the cost
of providing employers with information regarding the rate of tax
imposed by any school district. Any moneys remaining in the fund
after such use shall be deposited in the school district income
tax fund.
All interest earned on moneys in the school district income
tax fund shall be credited to the fund.
(D)(1)(a) Within thirty days of the end of each calendar
quarter ending on the last day of March, June, September, and
December, the director of budget and management shall make a
payment from the school district income tax fund to each school
district for which school district income tax revenue was received
during that quarter. The amount of the payment shall equal the
balance in the school district's account at the end of that
quarter.
(b) After a school district ceases to levy an income tax, the
director of budget and management shall adjust the payments under
division (D)(1)(a) of this section to retain sufficient money in
the school district's account to pay refunds. For the calendar
quarters ending on the last day of March and December of the
calendar year following the last calendar year the tax is levied,
the director shall make the payments in the amount required under
division (D)(1)(a) of this section. For the calendar quarter
ending on the last day of June of the calendar year following the
last calendar year the tax is levied, the director shall make a
payment equal to nine-tenths of the balance in the account at the
end of that quarter. For the calendar quarter ending on the last
day of September of the calendar year following the last calendar
year the tax is levied, the director shall make no payment. For
the second and succeeding calendar years following the last
calendar year the tax is levied, the director shall make one
payment each year, within thirty days of the last day of June, in
an amount equal to the balance in the district's account on the
last day of June.
(2) Moneys paid to a school district under this division
shall be deposited in its school district income tax fund. All
interest earned on moneys in the school district income tax fund
shall be apportioned by the tax commissioner pro rata among the
school districts in the proportions and at the times the districts
are entitled to receive payments under this division.
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 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.
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 impacted by oil and gas
drilling, to provide revenue to fund the activities of the state
environmental restoration authority, 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 before January 1,
2015;
(6) Two and one-half cents per thousand cubic feet of
natural gas severed before January 1, 2015;
(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 on or after January 1,
2015, there is hereby levied a tax on the severer. The tax shall
be levied at the rate of seven 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
division (C) of this section shall be credited to the oil and gas
severance tax fund, which is hereby created in the state treasury.
Not later than the fifteenth day of September of each year, the
tax commissioner shall calculate and certify to the director of
budget and management the total amount that would have been
collected from severances of oil and gas during the preceding
fiscal year if such severances had been taxed under divisions
(A)(5) and (6) of this section as those divisions existed on
October 31, 2014, and not under division (C) of this section. The
director of budget and management shall transfer, on or before the
twenty-fifth day of September, ninety per cent of the amount so
certified from the oil and gas severance tax fund to the oil and
gas well fund and ten per cent of the amount so certified to the
geological mapping fund. Not later than the succeeding thirtieth
day of September, the director of budget and management shall
transfer remaining money in the oil and gas severance tax fund
from tax collected during the preceding fiscal year as follows:
(a) Eighty per cent to the environmental restoration fund
created by section 3745.15 of the Revised Code.
(b) Twenty per cent 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.
(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. 5749.06. (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 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 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 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 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 day of the 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 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 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 and the proportionate amount of such
wellhead gross receipts that are attributable to 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.
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.
Section 2. That existing sections 1509.02, 1509.34, 1509.50,
1513.08, 1513.182, 1514.11, 5705.27, 5705.32, 5731.02, 5731.19,
5731.21, 5731.39, 5731.48, 5747.02, 5747.03, 5749.01, 5749.02,
5749.06, and 5749.11 of the Revised Code are hereby repealed.
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