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S. B. No. 323 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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A BILL
To amend sections 5703.059, 5736.01, 5736.02,
5736.03, 5736.04, 5736.06, 5736.09, 5736.13,
5751.01, and 5751.20 of the Revised Code to change
the motor fuel receipts tax to be imposed on gross
receipts to a petroleum activity tax to be imposed
on a hybrid of gallonage and the average wholesale
price of gasoline and diesel fuel.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5703.059, 5736.01, 5736.02, 5736.03,
5736.04, 5736.06, 5736.09, 5736.13, 5751.01, and 5751.20 of the
Revised Code be amended to read as follows:
Sec. 5703.059. (A) The tax commissioner may adopt rules
requiring returns, including any accompanying schedule or
statement, for any of the following taxes to be filed
electronically using the Ohio business gateway as defined in
section 718.051 of the Revised Code, filed telephonically using
the system known as the Ohio telefile system, or filed by any
other electronic means prescribed by the commissioner:
(1) Employer income tax withholding under Chapter 5747. of
the Revised Code;
(2) Motor fuel tax under Chapter 5735. of the Revised Code;
(3) Cigarette and tobacco product tax under Chapter 5743. of
the Revised Code;
(4) Severance tax under Chapter 5749. of the Revised Code;
(5) Use tax under Chapter 5741. of the Revised Code;
(6) Commercial activity tax under Chapter 5751. of the
Revised Code;
(7) Financial institutions tax under Chapter 5726. of the
Revised Code;
(8) Motor fuel receipts Petroleum activity tax under Chapter
5736. of the Revised Code;
(9) Horse-racing taxes under Chapter 3769. of the Revised
Code.
(B) The tax commissioner may adopt rules requiring any
payment of tax shown on such a return to be due to be made
electronically in a manner approved by the commissioner.
(C) A rule adopted under this section does not apply to
returns or reports filed or payments made before six months after
the effective date of the rule. The commissioner shall publicize
any new electronic filing requirement on the department's web
site. The commissioner shall educate the public of the requirement
through seminars, workshops, conferences, or other outreach
activities.
(D) Any person required to file returns and make payments
electronically under rules adopted under this section may apply to
the commissioner, on a form prescribed by the commissioner, to be
excused from that requirement. For good cause shown, the
commissioner may excuse the applicant from the requirement and
permit the applicant to file the returns or reports or make the
payments required under this section by nonelectronic means.
Sec. 5736.01. As used in this division chapter:
(A) "Calendar quarter" and "person" have the same meanings as
in section 5751.01 of the Revised Code.
(B) "Distribution system" means a bulk transfer or terminal
system for the distribution of motor fuel consisting of
refineries, pipelines, marine vessels, and terminals. For the
purposes of this section, motor fuel that is in a refinery,
pipeline, terminal, or marine vessel or that is transporting motor
fuel en route to a refinery, pipeline, or terminal via any method
of transportation is in a "distribution system." Motor fuel is
"outside of a distribution system" if the fuel is in a fuel
storage facility, including, but not limited to, a bulk plant that
is not part of a refinery or terminal, is in the fuel supply tank
of an engine or motor vehicle, or is being transported by a marine
vessel transporting motor fuel to a fuel storage facility that is
not in a distribution system, or a, tank car, rail car, trailer,
truck, or other suitable equipment suitable for ground
transportation to a fuel storage facility that is not in a
distribution system.
(C) "Dyed diesel fuel," "import," "motor fuel," "public
highways," "gasoline," "diesel fuel," "licensed motor fuel
dealer," "licensed permissive motor fuel dealer," and "terminal"
have the same meanings as in section 5735.01 of the Revised Code.
"Gallons" means gross gallons as defined in section 5735.01 of the
Revised Code.
(D) "First sale of motor fuel within this state" means the
initial sale of motor fuel to a point outside a distribution
system, wherever the sale occurs, when sold for delivery to a
location in this state as that location is shown on the bill of
lading issued by the terminal.
"First sale of motor fuel within
this state" excludes the following:
(1) The sale of motor fuel for export to another state;
(2) Motor fuel exchanges;
(3) The sale of motor fuel on which the petroleum activity
tax imposed by this chapter was paid in a prior quarterly tax
payment period and on which the supplier may claim a bad debt. As
used in this division, "bad debt" has the same meaning as in
section 5751.01 of the Revised Code.
(E) "Gross Modified gross receipts" means the sum of the
following:
(1) The product obtained by multiplying (a) the total amount
received by a person, without deduction for the cost of goods sold
or other expenses incurred, from the first sale number of gallons
of motor fuel
gasoline first sold within this state. For the
purposes of division (E) of this section, "amount received"
includes amounts accrued under the accrual method of accounting.
"Gross receipts" shall not include any of the following amounts:
(1) Receipts derived from the sale of motor fuel when sold
for export to another state;
(2) An amount equal to the federal and state excise taxes
paid by the supplier on the motor fuel;
(3) Bad debts from receipts on the basis of which the tax
imposed by this chapter was paid in a prior quarterly tax payment
period. For the purpose of this division, "bad debts" has the same
meaning as in section 5751.01 of the Revised Code.
(4) Any amount realized from the sale of an account
receivable to the extent the receipts from the underlying
transaction giving rise to the account receivable were included in
the gross receipts of the taxpayer by a supplier during the tax
period by (b) the average wholesale price of a gallon of unleaded
regular gasoline for the tax period that ended six months before
the beginning of the current tax period, as published by the tax
commissioner under division (C) of section 5736.02 of the Revised
Code;
(2) The product obtained by multiplying (a) the total number
of gallons of motor fuel that is not gasoline first sold within
this state by a supplier during the tax period by (b) the average
wholesale price of a gallon of diesel fuel for the tax period that
ended six months before the beginning of the current tax period,
as published by the tax commissioner under division (C) of section
5736.02 of the Revised Code.
(F) "Motor fuel used to propel vehicles on public highways
and waterways" includes motor fuel used for the operation of
licensed motor vehicles employed in the maintenance, construction,
or repair of public highways. "Motor fuel used to propel vehicles
on public highways and waterways" does not include dyed diesel
fuel.
(G) "Rack" means a mechanism capable of delivering motor fuel
from a refinery, terminal, or marine vessel into a railroad tank
car, transport truck, tank wagon, fuel supply tank, marine vessel,
or other means of transport outside of a distribution system.
(H) "Refinery" means a facility used to produce motor fuel
and from which motor fuel may be removed by pipeline, by vessel,
or at a rack.
(I) "Supplier" means either of the following:
(1) A person that sells, exchanges, transfers, or otherwise
distributes motor fuel from a terminal or refinery rack to a point
outside of a distribution system, if the person distributes such
motor fuel at a location in this state;
(2) A person that imports or causes the importation of motor
fuel for sale, exchange, transfer, or other distribution by the
person to a point outside of a distribution system in this state.
(J) "Tax period" means the calendar quarter on the basis of
which a taxpayer is required to pay the tax imposed under this
chapter.
(K) "Taxpayer" means a person subject to the tax imposed by
this chapter.
(L) "Waterways" means all streams, lakes, ponds, marshes,
water courses, and all other bodies of surface water, natural or
artificial, which are situated wholly or partially within this
state or within its jurisdiction, except private impounded bodies
of water.
(M) "Motor fuel exchange" means an exchange of motor fuel
between two or more suppliers, licensed motor fuel dealers, or
licensed permissive motor fuel dealers if delivery occurs at a
refinery, terminal, pipeline, or marine vessel and if the parties
agree that neither party requires monetary compensation from the
other party for the exchanged fuel other than compensation for
differences in product location, grade, or handling.
Sec. 5736.02. (A) Beginning with the tax period that
commences July 1, 2014, and continuing for every tax period
thereafter, there is hereby levied an excise tax on each supplier
measured by the supplier's modified gross receipts derived from
the first sale of motor fuel within this state. The tax due shall
be levied at a rate of six and five-tenths mills for each dollar
of the computed by multiplying sixty-five one hundredths of one
per cent by the supplier's modified gross receipts.
All revenue from the tax shall be distributed as follows:
(1) All revenue from the tax as measured by modified gross
receipts derived from the sale of motor fuel used for propelling
vehicles on public highways and waterways shall be used for the
purposes of maintaining the state highway system, funding the
enforcement of traffic laws, and covering the costs of
hospitalization of indigent persons injured in motor vehicle
accidents on the public highways.
(2) All revenue not distributed as required by division
(A)(1) of this section shall be used for the purpose of funding
the needs of this state and its local governments.
(B) The tax imposed by this section is in addition to any
other taxes or fees imposed under the Revised Code.
(C) The tax commissioner shall determine and publish, on the
web site of the department of taxation, the statewide average
wholesale prices of a gallon of unleaded regular gasoline and of a
gallon of diesel fuel for each calendar quarter. The figure shall
be published at least fifteen days before the beginning of the
second succeeding calendar quarter. The commissioner shall base
the average price on pricing information available from a data
service that regularly reports average prices of motor fuel. The
price shall not include any federal or state excise taxes on the
gasoline or diesel fuel, or the tax imposed by this chapter. The
price shall be rounded up to the nearest one-tenth of one cent.
The commissioner shall not include dyed diesel fuel in determining
the average wholesale price of a gallon of diesel fuel under this
division.
(D) A taxpayer may bill or invoice the tax imposed by this
section to a purchaser of motor fuel and may separately and
proportionally state the amount of the tax on such bill or
invoice.
Sec. 5736.03. (A) No person shall avoid the tax imposed by
this chapter by receiving motor fuel outside of this state and
transferring the motor fuel into this state within one year. Any
such person shall be considered to have received the fuel in this
state and shall include as, in the calculation of modified gross
receipts, the value number of gallons of motor fuel the person
transfers into this state within one year after the person
receives the property outside of this state.
(B) The tax commissioner may adopt rules necessary to
administer this section.
Sec. 5736.04. (A) Not later than the tenth day of the second
month after the end of each calendar quarter, every taxpayer shall
file with the tax commissioner a tax return in such form as the
commissioner prescribes. The return shall include, but is not
limited to, the amount of the taxpayer's modified gross receipts
for the calendar quarter and shall indicate the amount of tax due
under section 5736.02 of the Revised Code for the calendar
quarter. The taxpayer shall indicate on each return the portion of
the taxpayer's gross receipts attributable to motor fuel used for
propelling vehicles on public highways and waterways and the
portion of such receipts attributable to motor fuel used for other
purposes.
(B)(1) The taxpayer shall remit the tax shown to be due on
the return, and, if required by the tax commissioner, file the
return, electronically. The commissioner may require taxpayers to
use the Ohio business gateway as defined in section 718.051 of the
Revised Code to file return returns and remit the tax, or may
provide another means for taxpayers to file and remit the tax
electronically.
(2) A person required by this section to remit taxes or file
returns electronically may apply to the commissioner, on the form
prescribed by the commissioner, to be excused from that
requirement. The commissioner may excuse a person from such
requirement for good cause.
(C) The tax rate with respect to modified gross receipts for
a calendar quarter is not fixed until the end of the measurement
period for each calendar quarter. The total amount of modified
gross receipts reported for a given calendar quarter shall be
subject to the tax rate in effect in that quarter.
Sec. 5736.06. (A) No person subject to the tax imposed by
section 5736.02 of the Revised Code shall distribute, import, or
cause the importation of motor fuel for consumption in this state
without holding a supplier's license issued by the tax
commissioner to engage in such activities.
(B)(1) A person subject to the tax imposed by section 5736.02
of the Revised Code shall, on or before March 1, 2014, or within
thirty days of first becoming subject to the tax imposed by this
chapter, whichever is earlier, apply to the tax commissioner for a
supplier's license on the form prescribed by the commissioner.
(2) Each person issued a supplier's license under division
(B)(1) of this section shall apply to renew the license on or
before the first day of March of each year.
(3) With each license application submitted under division
(B)(1) or (2) of this section, the applicant shall pay an
application fee equal to one of the following amounts:
(a) If the applicant solely imports or causes the importation
of motor fuel for sale, exchange, or transfer by the person in
this state, three hundred dollars;
(b) If the applicant engages in activities in addition to
those described in division (B)(3)(a) of this section, one
thousand dollars.
If an applicant timely submits an application under division
(B)(1) of this section on or after the first day of September of
any year, the fee that would apply to the applicant under division
(B)(3)(a) or (b) of this section shall be reduced by one-half.
(4) The failure to apply to the commissioner for a supplier's
license does not relieve a person from the requirement to file
returns and pay the tax imposed by this chapter.
(C) The tax commissioner may refuse to issue a license to any
applicant under this section in the following circumstances:
(1) The applicant has previously had any license canceled for
cause by the commissioner.
(2) The commissioner believes that the application is not
filed in good faith or is filed as a subterfuge in an attempt to
procure a license for another person.
(3) The applicant has violated any provision of this chapter.
(D) If the tax commissioner refuses to issue a license to an
applicant under this section, the applicant is entitled to a
refund of the application fee in accordance with section 5736.08
of the Revised Code. All application fees collected under this
section shall be deposited into the motor fuel receipts petroleum
activity tax administration fund created in section 5736.13 of the
Revised Code.
(E) No person shall make a false or fraudulent statement on
an application required by this section.
Sec. 5736.09. (A) The tax commissioner may make an
assessment, based on any information in the commissioner's
possession, against any person that fails to file a return or pay
any tax as required by this chapter. The commissioner shall give
the person assessed written notice of the assessment as provided
in section 5703.37 of the Revised Code. With the notice, the
commissioner shall provide instructions on the manner in which to
petition for reassessment and request a hearing with respect to
the petition.
(B) Unless the person assessed, within sixty days after
service of the notice of assessment, files with the commissioner,
either personally or by certified mail, a written petition signed
by the person or the person's authorized agent having knowledge of
the facts, the assessment becomes final, and the amount of the
assessment is due and payable from the person assessed to the
treasurer of state. The petition shall indicate the objections of
the person assessed, but additional objections may be raised in
writing if received by the commissioner prior to the date shown on
the final determination.
If a petition for reassessment has been properly filed, the
commissioner shall proceed under section 5703.60 of the Revised
Code.
(C)(1) After an assessment becomes final, if any portion of
the assessment, including accrued interest, remains unpaid, a
certified copy of the commissioner's entry making the assessment
final may be filed in the office of the clerk of the court of
common pleas in the county in which the person resides or has its
principal place of business in this state, or in the office of the
clerk of court of common pleas of Franklin county.
(2) Immediately upon the filing of the entry, the clerk shall
enter judgment for the state against the person assessed in the
amount shown on the entry. The judgment may be filed by the clerk
in a loose-leaf book entitled, "special judgments for the motor
fuel receipts petroleum activity tax" and shall have the same
effect as other judgments. Execution shall issue upon the judgment
at the request of the commissioner, and all laws applicable to
sales on execution shall apply to sales made under the judgment.
(3) If the assessment is not paid in its entirety within
sixty days after the day the assessment was issued, the portion of
the assessment consisting of tax due shall bear interest at the
rate per annum prescribed by section 5703.47 of the Revised Code
from the day the commissioner issues the assessment until it is
paid or until it is certified to the attorney general for
collection under section 131.02 of the Revised Code, whichever
comes first. If the unpaid portion of the assessment is certified
to the attorney general for collection, the entire unpaid portion
of the assessment shall bear interest at the rate per annum
prescribed by section 5703.47 of the Revised Code from the date of
certification until the date it is paid in its entirety. Interest
shall be paid in the same manner as the tax and may be collected
by the issuance of an assessment under this section.
(D) If the commissioner believes that collection of the tax
will be jeopardized unless proceedings to collect or secure
collection of the tax are instituted without delay, the
commissioner may issue a jeopardy assessment against the person
liable for the tax. Immediately upon the issuance of the jeopardy
assessment, the commissioner shall file an entry with the clerk of
the court of common pleas in the manner prescribed by division (C)
of this section. Notice of the jeopardy assessment shall be served
on the person assessed or the person's authorized agent in the
manner provided in section 5703.37 of the Revised Code within five
days of the filing of the entry with the clerk. The total amount
assessed is immediately due and payable, unless the person
assessed files a petition for reassessment in accordance with
division (B) of this section and provides security in a form
satisfactory to the commissioner and in an amount sufficient to
satisfy the unpaid balance of the assessment. Full or partial
payment of the assessment does not prejudice the commissioner's
consideration of the petition for reassessment.
(E) The commissioner shall immediately forward to the
treasurer of state all amounts the commissioner receives under
this section, and such amounts shall be considered as revenue
arising from the tax imposed under this chapter.
(F) Except as otherwise provided in this division, no
assessment shall be made or issued against a taxpayer for the tax
imposed under this chapter more than four years after the due date
for the filing of the return for the tax period for which the tax
was reported, or more than four years after the return for the tax
period was filed, whichever is later. The time limit may be
extended if both the taxpayer and the commissioner consent in
writing to the extension or enter into an agreement waiving or
extending the time limit. Any such extension shall extend the
four-year time limit in division (A) of section 5736.08 of the
Revised Code for the same period of time. Nothing in this division
bars an assessment against a taxpayer that fails to file a return
required by this chapter or that files a fraudulent return.
(G) If the commissioner possesses information that indicates
that the amount of tax a taxpayer is required to pay under this
chapter exceeds the amount the taxpayer paid, the commissioner may
audit a sample of the taxpayer's modified gross receipts over a
representative period of time to ascertain the amount of tax due,
and may issue an assessment based on the audit. The commissioner
shall make a good faith effort to reach agreement with the
taxpayer in selecting a representative sample. The commissioner
may apply a sampling method only if the commissioner has
prescribed the method by rule.
(H) If the whereabouts of a person subject to this chapter is
not known to the commissioner, the commissioner shall follow the
procedures under section 5703.37 of the Revised Code.
Sec. 5736.13. (A) For the purpose of receiving, accounting
for, and distributing revenue received from the tax imposed by
section 5736.02 of the Revised Code, the following funds are
hereby created in the state treasury:
(1) The motor fuel receipts petroleum activity tax fund;
(2) The motor fuel receipts petroleum activity tax
administration fund. All amounts credited to the motor fuel
receipts petroleum activity tax administration fund shall be used
solely for the purpose of paying the expenses of the department of
taxation incident to the administration of the tax imposed by
section 5736.02 of the Revised Code.
(3) The motor fuel receipts petroleum activity tax public
highways fund.
(B) All money collected from the tax imposed by section
5736.02 of the Revised Code shall be deposited into the motor fuel
receipts petroleum activity tax fund.
(C) From the motor fuel receipts petroleum activity tax fund,
the director of budget and management shall place to the credit of
the tax refund fund established by section 5703.052 of the Revised
Code amounts equal to the refunds certified by the tax
commissioner pursuant to section 5736.08 of the Revised Code.
(D) Not later than the last day of March, June, September,
and December of each year, the director of budget and management
shall provide for the transfer of the balance of the motor fuel
receipts petroleum activity tax fund as of the last day of the
preceding month, excluding any amounts required to be transferred
as provided in division (C) of this section, as follows:
(1) To the motor fuel receipts petroleum activity tax
administration fund, one per cent;
(2) To the motor fuel receipts petroleum activity tax public
highways fund, an amount that bears the same ratio to the balance
in the
motor fuel receipts petroleum activity tax fund, after
subtracting the amount transferred under division (D)(1) of this
section, that (a) the modified gross receipts attributed to motor
fuel used for propelling vehicles on public highways and waterways
as indicated by ascertained from returns filed by the last day of
the preceding month, bears to (b) all modified gross receipts as
indicated by
ascertained from those returns;
(3) To the general revenue fund, the amount remaining after
the transfers required by divisions (D)(1) and (2) of this
section.
Sec. 5751.01. As used in this chapter:
(A) "Person" means, but is not limited to, individuals,
combinations of individuals of any form, receivers, assignees,
trustees in bankruptcy, firms, companies, joint-stock companies,
business trusts, estates, partnerships, limited liability
partnerships, limited liability companies, associations, joint
ventures, clubs, societies, for-profit corporations, S
corporations, qualified subchapter S subsidiaries, qualified
subchapter S trusts, trusts, entities that are disregarded for
federal income tax purposes, and any other entities.
(B) "Consolidated elected taxpayer" means a group of two or
more persons treated as a single taxpayer for purposes of this
chapter as the result of an election made under section 5751.011
of the Revised Code.
(C) "Combined taxpayer" means a group of two or more persons
treated as a single taxpayer for purposes of this chapter under
section 5751.012 of the Revised Code.
(D) "Taxpayer" means any person, or any group of persons in
the case of a consolidated elected taxpayer or combined taxpayer
treated as one taxpayer, required to register or pay tax under
this chapter. "Taxpayer" does not include excluded persons.
(E) "Excluded person" means any of the following:
(1) Any person with not more than one hundred fifty thousand
dollars of taxable gross receipts during the calendar year.
Division (E)(1) of this section does not apply to a person that is
a member of a consolidated elected taxpayer;
(2) A public utility that paid the excise tax imposed by
section 5727.24 or 5727.30 of the Revised Code based on one or
more measurement periods that include the entire tax period under
this chapter, except that a public utility that is a combined
company is a taxpayer with regard to the following gross receipts:
(a) Taxable gross receipts directly attributed to a public
utility activity, but not directly attributed to an activity that
is subject to the excise tax imposed by section 5727.24 or 5727.30
of the Revised Code;
(b) Taxable gross receipts that cannot be directly attributed
to any activity, multiplied by a fraction whose numerator is the
taxable gross receipts described in division (E)(2)(a) of this
section and whose denominator is the total taxable gross receipts
that can be directly attributed to any activity;
(c) Except for any differences resulting from the use of an
accrual basis method of accounting for purposes of determining
gross receipts under this chapter and the use of the cash basis
method of accounting for purposes of determining gross receipts
under section 5727.24 of the Revised Code, the gross receipts
directly attributed to the activity of a natural gas company shall
be determined in a manner consistent with division (D) of section
5727.03 of the Revised Code.
As used in division (E)(2) of this section, "combined
company" and "public utility" have the same meanings as in section
5727.01 of the Revised Code.
(3) A financial institution, as defined in section 5726.01 of
the Revised Code, that paid the tax imposed by section 5726.02 of
the Revised Code based on one or more taxable years that include
the entire tax period under this chapter;
(4) A person directly or indirectly owned by one or more
financial institutions, as defined in section 5726.01 of the
Revised Code, that paid the tax imposed by section 5726.02 of the
Revised Code based on one or more taxable years that include the
entire tax period under this chapter.
For the purposes of division (E)(4) of this section, a person
owns another person under the following circumstances:
(a) In the case of corporations issuing capital stock, one
corporation owns another corporation if it owns fifty per cent or
more of the other corporation's capital stock with current voting
rights;
(b) In the case of a limited liability company, one person
owns the company if that person's membership interest, as defined
in section 1705.01 of the Revised Code, is fifty per cent or more
of the combined membership interests of all persons owning such
interests in the company;
(c) In the case of a partnership, trust, or other
unincorporated business organization other than a limited
liability company, one person owns the organization if, under the
articles of organization or other instrument governing the affairs
of the organization, that person has a beneficial interest in the
organization's profits, surpluses, losses, or distributions of
fifty per cent or more of the combined beneficial interests of all
persons having such an interest in the organization.
(5) A domestic insurance company or foreign insurance
company, as defined in section 5725.01 of the Revised Code, that
paid the insurance company premiums tax imposed by section 5725.18
or Chapter 5729. of the Revised Code, or an unauthorized insurance
company whose gross premiums are subject to tax under section
3905.36 of the Revised Code based on one or more measurement
periods that include the entire tax period under this chapter;
(6) A person that solely facilitates or services one or more
securitizations of phase-in-recovery property pursuant to a final
financing order as those terms are defined in section 4928.23 of
the Revised Code. For purposes of this division, "securitization"
means transferring one or more assets to one or more persons and
then issuing securities backed by the right to receive payment
from the asset or assets so transferred.
(7) Except as otherwise provided in this division, a
pre-income tax trust as defined in division (FF)(4) of section
5747.01 of the Revised Code and any pass-through entity of which
such pre-income tax trust owns or controls, directly, indirectly,
or constructively through related interests, more than five per
cent of the ownership or equity interests. If the pre-income tax
trust has made a qualifying pre-income tax trust election under
division (FF)(3) of section 5747.01 of the Revised Code, then the
trust and the pass-through entities of which it owns or controls,
directly, indirectly, or constructively through related interests,
more than five per cent of the ownership or equity interests,
shall not be excluded persons for purposes of the tax imposed
under section 5751.02 of the Revised Code.
(8) Nonprofit organizations or the state and its agencies,
instrumentalities, or political subdivisions.
(F) Except as otherwise provided in divisions (F)(2), (3),
and (4) of this section, "gross receipts" means the total amount
realized by a person, without deduction for the cost of goods sold
or other expenses incurred, that contributes to the production of
gross income of the person, including the fair market value of any
property and any services received, and any debt transferred or
forgiven as consideration.
(1) The following are examples of gross receipts:
(a) Amounts realized from the sale, exchange, or other
disposition of the taxpayer's property to or with another;
(b) Amounts realized from the taxpayer's performance of
services for another;
(c) Amounts realized from another's use or possession of the
taxpayer's property or capital;
(d) Any combination of the foregoing amounts.
(2) "Gross receipts" excludes the following amounts:
(a) Interest income except interest on credit sales;
(b) Dividends and distributions from corporations, and
distributive or proportionate shares of receipts and income from a
pass-through entity as defined under section 5733.04 of the
Revised Code;
(c) Receipts from the sale, exchange, or other disposition of
an asset described in section 1221 or 1231 of the Internal Revenue
Code, without regard to the length of time the person held the
asset. Notwithstanding section 1221 of the Internal Revenue Code,
receipts from hedging transactions also are excluded to the extent
the transactions are entered into primarily to protect a financial
position, such as managing the risk of exposure to (i) foreign
currency fluctuations that affect assets, liabilities, profits,
losses, equity, or investments in foreign operations; (ii)
interest rate fluctuations; or (iii) commodity price fluctuations.
As used in division (F)(2)(c) of this section, "hedging
transaction" has the same meaning as used in section 1221 of the
Internal Revenue Code and also includes transactions accorded
hedge accounting treatment under statement of financial accounting
standards number 133 of the financial accounting standards board.
For the purposes of division (F)(2)(c) of this section, the actual
transfer of title of real or tangible personal property to another
entity is not a hedging transaction.
(d) Proceeds received attributable to the repayment,
maturity, or redemption of the principal of a loan, bond, mutual
fund, certificate of deposit, or marketable instrument;
(e) The principal amount received under a repurchase
agreement or on account of any transaction properly characterized
as a loan to the person;
(f) Contributions received by a trust, plan, or other
arrangement, any of which is described in section 501(a) of the
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter
1, Subchapter (D) of the Internal Revenue Code applies;
(g) Compensation, whether current or deferred, and whether in
cash or in kind, received or to be received by an employee, former
employee, or the employee's legal successor for services rendered
to or for an employer, including reimbursements received by or for
an individual for medical or education expenses, health insurance
premiums, or employee expenses, or on account of a dependent care
spending account, legal services plan, any cafeteria plan
described in section 125 of the Internal Revenue Code, or any
similar employee reimbursement;
(h) Proceeds received from the issuance of the taxpayer's own
stock, options, warrants, puts, or calls, or from the sale of the
taxpayer's treasury stock;
(i) Proceeds received on the account of payments from
insurance policies, except those proceeds received for the loss of
business revenue;
(j) Gifts or charitable contributions received; membership
dues received by trade, professional, homeowners', or condominium
associations; and payments received for educational courses,
meetings, meals, or similar payments to a trade, professional, or
other similar association; and fundraising receipts received by
any person when any excess receipts are donated or used
exclusively for charitable purposes;
(k) Damages received as the result of litigation in excess of
amounts that, if received without litigation, would be gross
receipts;
(l) Property, money, and other amounts received or acquired
by an agent on behalf of another in excess of the agent's
commission, fee, or other remuneration;
(m) Tax refunds, other tax benefit recoveries, and
reimbursements for the tax imposed under this chapter made by
entities that are part of the same combined taxpayer or
consolidated elected taxpayer group, and reimbursements made by
entities that are not members of a combined taxpayer or
consolidated elected taxpayer group that are required to be made
for economic parity among multiple owners of an entity whose tax
obligation under this chapter is required to be reported and paid
entirely by one owner, pursuant to the requirements of sections
5751.011 and 5751.012 of the Revised Code;
(o) Contributions to capital;
(p) Sales or use taxes collected as a vendor or an
out-of-state seller on behalf of the taxing jurisdiction from a
consumer or other taxes the taxpayer is required by law to collect
directly from a purchaser and remit to a local, state, or federal
tax authority;
(q) In the case of receipts from the sale of cigarettes or
tobacco products by a wholesale dealer, retail dealer,
distributor, manufacturer, or seller, all as defined in section
5743.01 of the Revised Code, an amount equal to the federal and
state excise taxes paid by any person on or for such cigarettes or
tobacco products under subtitle E of the Internal Revenue Code or
Chapter 5743. of the Revised Code;
(r) Receipts from the sale, transfer, exchange, or other
disposition of motor fuel as "motor fuel" is defined in section
5736.01 of the Revised Code, including receipts from billing or
invoicing the tax imposed under section 5736.02 of the Revised
Code to another person;
(s) In the case of receipts from the sale of beer or
intoxicating liquor, as defined in section 4301.01 of the Revised
Code, by a person holding a permit issued under Chapter 4301. or
4303. of the Revised Code, an amount equal to federal and state
excise taxes paid by any person on or for such beer or
intoxicating liquor under subtitle E of the Internal Revenue Code
or Chapter 4301. or 4305. of the Revised Code;
(t) Receipts realized by a new motor vehicle dealer or used
motor vehicle dealer, as defined in section 4517.01 of the Revised
Code, from the sale or other transfer of a motor vehicle, as
defined in that section, to another motor vehicle dealer for the
purpose of resale by the transferee motor vehicle dealer, but only
if the sale or other transfer was based upon the transferee's need
to meet a specific customer's preference for a motor vehicle;
(u) Receipts from a financial institution described in
division (E)(3) of this section for services provided to the
financial institution in connection with the issuance, processing,
servicing, and management of loans or credit accounts, if such
financial institution and the recipient of such receipts have at
least fifty per cent of their ownership interests owned or
controlled, directly or constructively through related interests,
by common owners;
(v) Receipts realized from administering anti-neoplastic
drugs and other cancer chemotherapy, biologicals, therapeutic
agents, and supportive drugs in a physician's office to patients
with cancer;
(w) Funds received or used by a mortgage broker that is not a
dealer in intangibles, other than fees or other consideration,
pursuant to a table-funding mortgage loan or warehouse-lending
mortgage loan. Terms used in division (F)(2)(w) of this section
have the same meanings as in section 1322.01 of the Revised Code,
except "mortgage broker" means a person assisting a buyer in
obtaining a mortgage loan for a fee or other consideration paid by
the buyer or a lender, or a person engaged in table-funding or
warehouse-lending mortgage loans that are first lien mortgage
loans.
(x) Property, money, and other amounts received by a
professional employer organization, as defined in section 4125.01
of the Revised Code, from a client employer, as defined in that
section, in excess of the administrative fee charged by the
professional employer organization to the client employer;
(y) In the case of amounts retained as commissions by a
permit holder under Chapter 3769. of the Revised Code, an amount
equal to the amounts specified under that chapter that must be
paid to or collected by the tax commissioner as a tax and the
amounts specified under that chapter to be used as purse money;
(z) Qualifying distribution center receipts.
(i) For purposes of division (F)(2)(z) of this section:
(I) "Qualifying distribution center receipts" means receipts
of a supplier from qualified property that is delivered to a
qualified distribution center, multiplied by a quantity that
equals one minus the Ohio delivery percentage. If the qualified
distribution center is a refining facility, "supplier" includes
all dealers, brokers, processors, sellers, vendors, cosigners, and
distributors of qualified property.
(II) "Qualified property" means tangible personal property
delivered to a qualified distribution center that is shipped to
that qualified distribution center solely for further shipping by
the qualified distribution center to another location in this
state or elsewhere or, in the case of gold, silver, platinum, or
palladium delivered to a refining facility solely for refining to
a grade and fineness acceptable for delivery to a registered
commodities exchange. "Further shipping" includes storing and
repackaging property into smaller or larger bundles, so long as
the property is not subject to further manufacturing or
processing. "Refining" is limited to extracting impurities from
gold, silver, platinum, or palladium through smelting or some
other process at a refining facility.
(III) "Qualified distribution center" means a warehouse, a
facility similar to a warehouse, or a refining facility in this
state that, for the qualifying year, is operated by a person that
is not part of a combined taxpayer group and that has a qualifying
certificate. All warehouses or facilities similar to warehouses
that are operated by persons in the same taxpayer group and that
are located within one mile of each other shall be treated as one
qualified distribution center. All refining facilities that are
operated by persons in the same taxpayer group and that are
located in the same or adjacent counties may be treated as one
qualified distribution center.
(IV) "Qualifying year" means the calendar year to which the
qualifying certificate applies.
(V) "Qualifying period" means the period of the first day of
July of the second year preceding the qualifying year through the
thirtieth day of June of the year preceding the qualifying year.
(VI) "Qualifying certificate" means the certificate issued by
the tax commissioner after the operator of a distribution center
files an annual application with the commissioner. The application
and annual fee shall be filed and paid for each qualified
distribution center on or before the first day of September before
the qualifying year or within forty-five days after the
distribution center opens, whichever is later.
The applicant must substantiate to the commissioner's
satisfaction that, for the qualifying period, all persons
operating the distribution center have more than fifty per cent of
the cost of the qualified property shipped to a location such that
it would be sitused outside this state under the provisions of
division (E) of section 5751.033 of the Revised Code. The
applicant must also substantiate that the distribution center
cumulatively had costs from its suppliers equal to or exceeding
five hundred million dollars during the qualifying period. (For
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"
excludes any person that is part of the consolidated elected
taxpayer group, if applicable, of the operator of the qualified
distribution center.) The commissioner may require the applicant
to have an independent certified public accountant certify that
the calculation of the minimum thresholds required for a qualified
distribution center by the operator of a distribution center has
been made in accordance with generally accepted accounting
principles. The commissioner shall issue or deny the issuance of a
certificate within sixty days after the receipt of the
application. A denial is subject to appeal under section 5717.02
of the Revised Code. If the operator files a timely appeal under
section 5717.02 of the Revised Code, the operator shall be granted
a qualifying certificate effective for the remainder of the
qualifying year or until the appeal is finalized, whichever is
earlier. If the operator does not prevail in the appeal, the
operator shall pay the ineligible operator's supplier tax
liability.
(VII) "Ohio delivery percentage" means the proportion of the
total property delivered to a destination inside Ohio from the
qualified distribution center during the qualifying period
compared with total deliveries from such distribution center
everywhere during the qualifying period.
(VIII) "Refining facility" means one or more buildings
located in a county in the Appalachian region of this state as
defined by section 107.21 of the Revised Code and utilized for
refining or smelting gold, silver, platinum, or palladium to a
grade and fineness acceptable for delivery to a registered
commodities exchange.
(IX) "Registered commodities exchange" means a board of
trade, such as New York mercantile exchange, inc. or commodity
exchange, inc., designated as a contract market by the commodity
futures trading commission under the "Commodity Exchange Act," 7
U.S.C. 1 et seq., as amended.
(X) "Ineligible operator's supplier tax liability" means an
amount equal to the tax liability of all suppliers of a
distribution center had the distribution center not been issued a
qualifying certificate for the qualifying year. Ineligible
operator's supplier tax liability shall not include interest or
penalties. The tax commissioner shall determine an ineligible
operator's supplier tax liability based on information that the
commissioner may request from the operator of the distribution
center. An operator shall provide a list of all suppliers of the
distribution center and the corresponding costs of qualified
property for the qualifying year at issue within sixty days of a
request by the commissioner under this division.
(ii)(I) If the distribution center is new and was not open
for the entire qualifying period, the operator of the distribution
center may request that the commissioner grant a qualifying
certificate. If the certificate is granted and it is later
determined that more than fifty per cent of the qualified property
during that year was not shipped to a location such that it would
be sitused outside of this state under the provisions of division
(E) of section 5751.033 of the Revised Code or if it is later
determined that the person that operates the distribution center
had average monthly costs from its suppliers of less than forty
million dollars during that year, then the operator of the
distribution center shall pay the ineligible operator's supplier
tax liability. (For purposes of division (F)(2)(z)(ii) of this
section, "supplier" excludes any person that is part of the
consolidated elected taxpayer group, if applicable, of the
operator of the qualified distribution center.)
(II) The commissioner may grant a qualifying certificate to a
distribution center that does not qualify as a qualified
distribution center for an entire qualifying period if the
operator of the distribution center demonstrates that the business
operations of the distribution center have changed or will change
such that the distribution center will qualify as a qualified
distribution center within thirty-six months after the date the
operator first applies for a certificate. If, at the end of that
thirty-six-month period, the business operations of the
distribution center have not changed such that the distribution
center qualifies as a qualified distribution center, the operator
of the distribution center shall pay the ineligible operator's
supplier tax liability for each year that the distribution center
received a certificate but did not qualify as a qualified
distribution center. For each year the distribution center
receives a certificate under division (F)(2)(z)(ii)(II) of this
section, the distribution center shall pay all applicable fees
required under division (F)(2)(z) of this section and shall submit
an updated business plan showing the progress the distribution
center made toward qualifying as a qualified distribution center
during the preceding year.
(III) An operator may appeal a determination under division
(F)(2)(z)(ii)(I) or (II) of this section that the ineligible
operator is liable for the operator's supplier tax liability as a
result of not qualifying as a qualified distribution center, as
provided in section 5717.02 of the Revised Code.
(iii) When filing an application for a qualifying certificate
under division (F)(2)(z)(i)(VI) of this section, the operator of a
qualified distribution center also shall provide documentation, as
the commissioner requires, for the commissioner to ascertain the
Ohio delivery percentage. The commissioner, upon issuing the
qualifying certificate, also shall certify the Ohio delivery
percentage. The operator of the qualified distribution center may
appeal the commissioner's certification of the Ohio delivery
percentage in the same manner as an appeal is taken from the
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)
of this section.
(iv)(I) In the case where the distribution center is new and
not open for the entire qualifying period, the operator shall make
a good faith estimate of an Ohio delivery percentage for use by
suppliers in their reports of taxable gross receipts for the
remainder of the qualifying period. The operator of the facility
shall disclose to the suppliers that such Ohio delivery percentage
is an estimate and is subject to recalculation. By the due date of
the next application for a qualifying certificate, the operator
shall determine the actual Ohio delivery percentage for the
estimated qualifying period and proceed as provided in division
(F)(2)(z)(iii) of this section with respect to the calculation and
recalculation of the Ohio delivery percentage. The supplier is
required to file, within sixty days after receiving notice from
the operator of the qualified distribution center, amended reports
for the impacted calendar quarter or quarters or calendar year,
whichever the case may be. Any additional tax liability or tax
overpayment shall be subject to interest but shall not be subject
to the imposition of any penalty so long as the amended returns
are timely filed.
(II) The operator of a distribution center that receives a
qualifying certificate under division (F)(2)(z)(ii)(II) of this
section shall make a good faith estimate of the Ohio delivery
percentage that the operator estimates will apply to the
distribution center at the end of the thirty-six-month period
after the operator first applied for a qualifying certificate
under that division. The result of the estimate shall be
multiplied by a factor of one and seventy-five one-hundredths. The
product of that calculation shall be the Ohio delivery percentage
used by suppliers in their reports of taxable gross receipts for
each qualifying year that the distribution center receives a
qualifying certificate under division (F)(2)(z)(ii)(II) of this
section, except that, if the product is less than five per cent,
the Ohio delivery percentage used shall be five per cent and that,
if the product exceeds forty-nine per cent, the Ohio delivery
percentage used shall be forty-nine per cent.
(v) Qualifying certificates and Ohio delivery percentages
issued by the commissioner shall be open to public inspection and
shall be timely published by the commissioner. A supplier relying
in good faith on a certificate issued under this division shall
not be subject to tax on the qualifying distribution center
receipts under division (F)(2)(z) of this section. An operator
receiving a qualifying certificate is liable for the ineligible
operator's supplier tax liability for each year the operator
received a certificate but did not qualify as a qualified
distribution center.
(vi) The annual fee for a qualifying certificate shall be one
hundred thousand dollars for each qualified distribution center.
If a qualifying certificate is not issued, the annual fee is
subject to refund after the exhaustion of all appeals provided for
in division (F)(2)(z)(i)(VI) of this section. The first one
hundred thousand dollars of the annual application fees collected
each calendar year shall be credited to the revenue enhancement
fund. The remainder of the annual application fees collected shall
be distributed in the same manner required under section 5751.20
of the Revised Code.
(vii) The tax commissioner may require that adequate security
be posted by the operator of the distribution center on appeal
when the commissioner disagrees that the applicant has met the
minimum thresholds for a qualified distribution center as set
forth in division (F)(2)(z) of this section.
(aa) Receipts of an employer from payroll deductions relating
to the reimbursement of the employer for advancing moneys to an
unrelated third party on an employee's behalf;
(bb) Cash discounts allowed and taken;
(cc) Returns and allowances;
(dd) Bad debts from receipts on the basis of which the tax
imposed by this chapter was paid in a prior quarterly tax payment
period. For the purpose of this division, "bad debts" means any
debts that have become worthless or uncollectible between the
preceding and current quarterly tax payment periods, have been
uncollected for at least six months, and that may be claimed as a
deduction under section 166 of the Internal Revenue Code and the
regulations adopted under that section, or that could be claimed
as such if the taxpayer kept its accounts on the accrual basis.
"Bad debts" does not include repossessed property, uncollectible
amounts on property that remains in the possession of the taxpayer
until the full purchase price is paid, or expenses in attempting
to collect any account receivable or for any portion of the debt
recovered;
(ee) Any amount realized from the sale of an account
receivable to the extent the receipts from the underlying
transaction giving rise to the account receivable were included in
the gross receipts of the taxpayer;
(ff) Any receipts directly attributed to a transfer agreement
or to the enterprise transferred under that agreement under
section 4313.02 of the Revised Code.
(gg)(i) As used in this division:
(I) "Qualified uranium receipts" means receipts from the
sale, exchange, lease, loan, production, processing, or other
disposition of uranium within a uranium enrichment zone certified
by the tax commissioner under division (F)(2)(gg)(ii) of this
section. "Qualified uranium receipts" does not include any
receipts with a situs in this state outside a uranium enrichment
zone certified by the tax commissioner under division
(F)(2)(gg)(ii) of this section.
(II) "Uranium enrichment zone" means all real property that
is part of a uranium enrichment facility licensed by the United
States nuclear regulatory commission and that was or is owned or
controlled by the United States department of energy or its
successor.
(ii) Any person that owns, leases, or operates real or
tangible personal property constituting or located within a
uranium enrichment zone may apply to the tax commissioner to have
the uranium enrichment zone certified for the purpose of excluding
qualified uranium receipts under division (F)(2)(gg) of this
section. The application shall include such information that the
tax commissioner prescribes. Within sixty days after receiving the
application, the tax commissioner shall certify the zone for that
purpose if the commissioner determines that the property qualifies
as a uranium enrichment zone as defined in division (F)(2)(gg) of
this section, or, if the tax commissioner determines that the
property does not qualify, the commissioner shall deny the
application or request additional information from the applicant.
If the tax commissioner denies an application, the commissioner
shall state the reasons for the denial. The applicant may appeal
the denial of an application to the board of tax appeals pursuant
to section 5717.02 of the Revised Code. If the applicant files a
timely appeal, the tax commissioner shall conditionally certify
the applicant's property. The conditional certification shall
expire when all of the applicant's appeals are exhausted. Until
final resolution of the appeal, the applicant shall retain the
applicant's records in accordance with section 5751.12 of the
Revised Code, notwithstanding any time limit on the preservation
of records under that section.
(hh) In the case of amounts collected by a licensed casino
operator from casino gaming, amounts in excess of the casino
operator's gross casino revenue. In this division, "casino
operator" and "casino gaming" have the meanings defined in section
3772.01 of the Revised Code, and "gross casino revenue" has the
meaning defined in section 5753.01 of the Revised Code.
(ii) Receipts realized from the sale of agricultural
commodities by an agricultural commodity handler, both as defined
in section 926.01 of the Revised Code, that is licensed by the
director of agriculture to handle agricultural commodities in this
state.
(jj) Any receipts for which the tax imposed by this chapter
is prohibited by the constitution or laws of the United States or
the constitution of this state.
(3) In the case of a taxpayer when acting as a real estate
broker, "gross receipts" includes only the portion of any fee for
the service of a real estate broker, or service of a real estate
salesperson associated with that broker, that is retained by the
broker and not paid to an associated real estate salesperson or
another real estate broker. For the purposes of this division,
"real estate broker" and "real estate salesperson" have the same
meanings as in section 4735.01 of the Revised Code.
(4) A taxpayer's method of accounting for gross receipts for
a tax period shall be the same as the taxpayer's method of
accounting for federal income tax purposes for the taxpayer's
federal taxable year that includes the tax period. If a taxpayer's
method of accounting for federal income tax purposes changes, its
method of accounting for gross receipts under this chapter shall
be changed accordingly.
(G) "Taxable gross receipts" means gross receipts sitused to
this state under section 5751.033 of the Revised Code.
(H) A person has "substantial nexus with this state" if any
of the following applies. The person:
(1) Owns or uses a part or all of its capital in this state;
(2) Holds a certificate of compliance with the laws of this
state authorizing the person to do business in this state;
(3) Has bright-line presence in this state;
(4) Otherwise has nexus with this state to an extent that the
person can be required to remit the tax imposed under this chapter
under the Constitution of the United States.
(I) A person has "bright-line presence" in this state for a
reporting period and for the remaining portion of the calendar
year if any of the following applies. The person:
(1) Has at any time during the calendar year property in this
state with an aggregate value of at least fifty thousand dollars.
For the purpose of division (I)(1) of this section, owned property
is valued at original cost and rented property is valued at eight
times the net annual rental charge.
(2) Has during the calendar year payroll in this state of at
least fifty thousand dollars. Payroll in this state includes all
of the following:
(a) Any amount subject to withholding by the person under
section 5747.06 of the Revised Code;
(b) Any other amount the person pays as compensation to an
individual under the supervision or control of the person for work
done in this state; and
(c) Any amount the person pays for services performed in this
state on its behalf by another.
(3) Has during the calendar year taxable gross receipts of at
least five hundred thousand dollars.
(4) Has at any time during the calendar year within this
state at least twenty-five per cent of the person's total
property, total payroll, or total gross receipts.
(5) Is domiciled in this state as an individual or for
corporate, commercial, or other business purposes.
(J) "Tangible personal property" has the same meaning as in
section 5739.01 of the Revised Code.
(K) "Internal Revenue Code" means the Internal Revenue Code
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in
this chapter that is not otherwise defined has the same meaning as
when used in a comparable context in the laws of the United States
relating to federal income taxes unless a different meaning is
clearly required. Any reference in this chapter to the Internal
Revenue Code includes other laws of the United States relating to
federal income taxes.
(L) "Calendar quarter" means a three-month period ending on
the thirty-first day of March, the thirtieth day of June, the
thirtieth day of September, or the thirty-first day of December.
(M) "Tax period" means the calendar quarter or calendar year
on the basis of which a taxpayer is required to pay the tax
imposed under this chapter.
(N) "Calendar year taxpayer" means a taxpayer for which the
tax period is a calendar year.
(O) "Calendar quarter taxpayer" means a taxpayer for which
the tax period is a calendar quarter.
(P) "Agent" means a person authorized by another person to
act on its behalf to undertake a transaction for the other,
including any of the following:
(1) A person receiving a fee to sell financial instruments;
(2) A person retaining only a commission from a transaction
with the other proceeds from the transaction being remitted to
another person;
(3) A person issuing licenses and permits under section
1533.13 of the Revised Code;
(4) A lottery sales agent holding a valid license issued
under section 3770.05 of the Revised Code;
(5) A person acting as an agent of the division of liquor
control under section 4301.17 of the Revised Code.
(Q) "Received" includes amounts accrued under the accrual
method of accounting.
(R) "Reporting person" means a person in a consolidated
elected taxpayer or combined taxpayer group that is designated by
that group to legally bind the group for all filings and tax
liabilities and to receive all legal notices with respect to
matters under this chapter, or, for the purposes of section
5751.04 of the Revised Code, a separate taxpayer that is not a
member of such a group.
Sec. 5751.20. (A) As used in sections 5751.20 to 5751.22 of
the Revised Code:
(1) "School district," "joint vocational school district,"
"local taxing unit," "recognized valuation," "fixed-rate levy,"
and "fixed-sum levy" have the same meanings as used in section
5727.84 of the Revised Code.
(2) "State education aid" for a school district means the
following:
(a) For fiscal years prior to fiscal year 2010, the sum of
state aid amounts computed for the district under the following
provisions, as they existed for the applicable fiscal year:
division (A) of section 3317.022 of the Revised Code, including
the amounts calculated under former section 3317.029 and section
3317.0217 of the Revised Code; divisions (C)(1), (C)(4), (D), (E),
and (F) of section 3317.022; divisions (B), (C), and (D) of
section 3317.023; divisions (L) and (N) of section 3317.024;
section 3317.0216; and any unit payments for gifted student
services paid under section 3317.05 and former sections 3317.052
and 3317.053 of the Revised Code; except that, for fiscal years
2008 and 2009, the amount computed for the district under Section
269.20.80 of H.B. 119 of the 127th general assembly and as that
section subsequently may be amended shall be substituted for the
amount computed under division (D) of section 3317.022 of the
Revised Code, and the amount computed under Section 269.30.80 of
H.B. 119 of the 127th general assembly and as that section
subsequently may be amended shall be included.
(b) For fiscal years 2010 and 2011, the sum of the amounts
computed under former sections 3306.052, 3306.12, 3306.13,
3306.19, 3306.191, and 3306.192 of the Revised Code;
(c) For fiscal years 2012 and 2013, the sum of the amounts
paid under Sections 267.30.50, 267.30.53, and 267.30.56 of H.B.
153 of the 129th general assembly;
(d) For fiscal year 2014 and each fiscal year thereafter, the
sum of state amounts computed for the district under section
3317.022 of the Revised Code; except that, for fiscal years 2014
and 2015, the amount computed for the district under the section
of this act entitled "TRANSITIONAL AID FOR CITY, LOCAL, AND
EXEMPTED VILLAGE SCHOOL DISTRICTS" shall be included.
(3) "State education aid" for a joint vocational school
district means the following:
(a) For fiscal years prior to fiscal year 2010, the sum of
the state aid computed for the district under division (N) of
section 3317.024 and former section 3317.16 of the Revised Code,
except that, for fiscal years 2008 and 2009, the amount computed
under Section 269.30.80 of H.B. 119 of the 127th general assembly
and as that section subsequently may be amended shall be included.
(b) For fiscal years 2010 and 2011, the amount paid in
accordance with Section 265.30.50 of H.B. 1 of the 128th general
assembly.
(c) For fiscal years 2012 and 2013, the amount paid in
accordance with Section 267.30.60 of H.B. 153 of the 129th general
assembly.
(d) For fiscal year 2014 and each fiscal year thereafter, the
amount computed for the district under section 3317.16 of the
Revised Code; except that, for fiscal years 2014 and 2015, the
amount computed for the district under the section of this act
entitled "TRANSITIONAL AID FOR JOINT VOCATIONAL SCHOOL DISTRICTS"
shall be included.
(4) "State education aid offset" means the amount determined
for each school district or joint vocational school district under
division (A)(1) of section 5751.21 of the Revised Code.
(5) "Machinery and equipment property tax value loss" means
the amount determined under division (C)(1) of this section.
(6) "Inventory property tax value loss" means the amount
determined under division (C)(2) of this section.
(7) "Furniture and fixtures property tax value loss" means
the amount determined under division (C)(3) of this section.
(8) "Machinery and equipment fixed-rate levy loss" means the
amount determined under division (D)(1) of this section.
(9) "Inventory fixed-rate levy loss" means the amount
determined under division (D)(2) of this section.
(10) "Furniture and fixtures fixed-rate levy loss" means the
amount determined under division (D)(3) of this section.
(11) "Total fixed-rate levy loss" means the sum of the
machinery and equipment fixed-rate levy loss, the inventory
fixed-rate levy loss, the furniture and fixtures fixed-rate levy
loss, and the telephone company fixed-rate levy loss.
(12) "Fixed-sum levy loss" means the amount determined under
division (E) of this section.
(13) "Machinery and equipment" means personal property
subject to the assessment rate specified in division (F) of
section 5711.22 of the Revised Code.
(14) "Inventory" means personal property subject to the
assessment rate specified in division (E) of section 5711.22 of
the Revised Code.
(15) "Furniture and fixtures" means personal property subject
to the assessment rate specified in division (G) of section
5711.22 of the Revised Code.
(16) "Qualifying levies" are levies in effect for tax year
2004 or applicable to tax year 2005 or approved at an election
conducted before September 1, 2005. For the purpose of determining
the rate of a qualifying levy authorized by section 5705.212 or
5705.213 of the Revised Code, the rate shall be the rate that
would be in effect for tax year 2010.
(17) "Telephone property" means tangible personal property of
a telephone, telegraph, or interexchange telecommunications
company subject to an assessment rate specified in section
5727.111 of the Revised Code in tax year 2004.
(18) "Telephone property tax value loss" means the amount
determined under division (C)(4) of this section.
(19) "Telephone property fixed-rate levy loss" means the
amount determined under division (D)(4) of this section.
(20) "Taxes charged and payable" means taxes charged and
payable after the reduction required by section 319.301 of the
Revised Code but before the reductions required by sections
319.302 and 323.152 of the Revised Code.
(21) "Median estate tax collections" means, in the case of a
municipal corporation to which revenue from the taxes levied in
Chapter 5731. of the Revised Code was distributed in each of
calendar years 2006, 2007, 2008, and 2009, the median of those
distributions. In the case of a municipal corporation to which no
distributions were made in one or more of those years, "median
estate tax collections" means zero.
(22) "Total resources," in the case of a school district,
means the sum of the amounts in divisions (A)(22)(a) to (h) of
this section less any reduction required under division (A)(32) or
(33) of this section.
(a) The state education aid for fiscal year 2010;
(b) The sum of the payments received by the school district
in fiscal year 2010 for current expense levy losses pursuant to
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of
section 5751.21 of the Revised Code, excluding the portion of such
payments attributable to levies for joint vocational school
district purposes;
(c) The sum of fixed-sum levy loss payments received by the
school district in fiscal year 2010 pursuant to division (E)(1) of
section 5727.85 and division (E)(1) of section 5751.21 of the
Revised Code for fixed-sum levies charged and payable for a
purpose other than paying debt charges;
(d) Fifty per cent of the school district's taxes charged and
payable against all property on the tax list of real and public
utility property for current expense purposes for tax year 2008,
including taxes charged and payable from emergency levies charged
and payable under section 5709.194 of the Revised Code and
excluding taxes levied for joint vocational school district
purposes;
(e) Fifty per cent of the school district's taxes charged and
payable against all property on the tax list of real and public
utility property for current expenses for tax year 2009, including
taxes charged and payable from emergency levies and excluding
taxes levied for joint vocational school district purposes;
(f) The school district's taxes charged and payable against
all property on the general tax list of personal property for
current expenses for tax year 2009, including taxes charged and
payable from emergency levies;
(g) The amount certified for fiscal year 2010 under division
(A)(2) of section 3317.08 of the Revised Code;
(h) Distributions received during calendar year 2009 from
taxes levied under section 718.09 of the Revised Code.
(23) "Total resources," in the case of a joint vocational
school district, means the sum of amounts in divisions (A)(23)(a)
to (g) of this section less any reduction required under division
(A)(32) of this section.
(a) The state education aid for fiscal year 2010;
(b) The sum of the payments received by the joint vocational
school district in fiscal year 2010 for current expense levy
losses pursuant to division (C)(2) of section 5727.85 and
divisions (C)(8) and (9) of section 5751.21 of the Revised Code;
(c) Fifty per cent of the joint vocational school district's
taxes charged and payable against all property on the tax list of
real and public utility property for current expense purposes for
tax year 2008;
(d) Fifty per cent of the joint vocational school district's
taxes charged and payable against all property on the tax list of
real and public utility property for current expenses for tax year
2009;
(e) Fifty per cent of a city, local, or exempted village
school district's taxes charged and payable against all property
on the tax list of real and public utility property for current
expenses of the joint vocational school district for tax year
2008;
(f) Fifty per cent of a city, local, or exempted village
school district's taxes charged and payable against all property
on the tax list of real and public utility property for current
expenses of the joint vocational school district for tax year
2009;
(g) The joint vocational school district's taxes charged and
payable against all property on the general tax list of personal
property for current expenses for tax year 2009.
(24) "Total resources," in the case of county mental health
and disability related functions, means the sum of the amounts in
divisions (A)(24)(a) and (b) of this section less any reduction
required under division (A)(32) of this section.
(a) The sum of the payments received by the county for mental
health and developmental disability related functions in calendar
year 2010 under division (A)(1) of section 5727.86 and divisions
(A)(1) and (2) of section 5751.22 of the Revised Code as they
existed at that time;
(b) With respect to taxes levied by the county for mental
health and developmental disability related purposes, the taxes
charged and payable for such purposes against all property on the
tax list of real and public utility property for tax year 2009.
(25) "Total resources," in the case of county senior services
related functions, means the sum of the amounts in divisions
(A)(25)(a) and (b) of this section less any reduction required
under division (A)(32) of this section.
(a) The sum of the payments received by the county for senior
services related functions in calendar year 2010 under division
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section
5751.22 of the Revised Code as they existed at that time;
(b) With respect to taxes levied by the county for senior
services related purposes, the taxes charged and payable for such
purposes against all property on the tax list of real and public
utility property for tax year 2009.
(26) "Total resources," in the case of county children's
services related functions, means the sum of the amounts in
divisions (A)(26)(a) and (b) of this section less any reduction
required under division (A)(32) of this section.
(a) The sum of the payments received by the county for
children's services related functions in calendar year 2010 under
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of
section 5751.22 of the Revised Code as they existed at that time;
(b) With respect to taxes levied by the county for children's
services related purposes, the taxes charged and payable for such
purposes against all property on the tax list of real and public
utility property for tax year 2009.
(27) "Total resources," in the case of county public health
related functions, means the sum of the amounts in divisions
(A)(27)(a) and (b) of this section less any reduction required
under division (A)(32) of this section.
(a) The sum of the payments received by the county for public
health related functions in calendar year 2010 under division
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section
5751.22 of the Revised Code as they existed at that time;
(b) With respect to taxes levied by the county for public
health related purposes, the taxes charged and payable for such
purposes against all property on the tax list of real and public
utility property for tax year 2009.
(28) "Total resources," in the case of all county functions
not included in divisions (A)(24) to (27) of this section, means
the sum of the amounts in divisions (A)(28)(a) to (d) of this
section less any reduction required under division (A)(32) or (33)
of this section.
(a) The sum of the payments received by the county for all
other purposes in calendar year 2010 under division (A)(1) of
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of
the Revised Code as they existed at that time;
(b) The county's percentage share of county undivided local
government fund allocations as certified to the tax commissioner
for calendar year 2010 by the county auditor under division (J) of
section 5747.51 of the Revised Code or division (F) of section
5747.53 of the Revised Code multiplied by the total amount
actually distributed in calendar year 2010 from the county
undivided local government fund;
(c) With respect to taxes levied by the county for all other
purposes, the taxes charged and payable for such purposes against
all property on the tax list of real and public utility property
for tax year 2009, excluding taxes charged and payable for the
purpose of paying debt charges;
(d) The sum of the amounts distributed to the county in
calendar year 2010 for the taxes levied pursuant to sections
5739.021 and 5741.021 of the Revised Code.
(29) "Total resources," in the case of a municipal
corporation, means the sum of the amounts in divisions (A)(29)(a)
to (g) of this section less any reduction required under division
(A)(32) or (33) of this section.
(a) The sum of the payments received by the municipal
corporation in calendar year 2010 for current expense levy losses
under division (A)(1) of section 5727.86 and divisions (A)(1) and
(2) of section 5751.22 of the Revised Code as they existed at that
time;
(b) The municipal corporation's percentage share of county
undivided local government fund allocations as certified to the
tax commissioner for calendar year 2010 by the county auditor
under division (J) of section 5747.51 of the Revised Code or
division (F) of section 5747.53 of the Revised Code multiplied by
the total amount actually distributed in calendar year 2010 from
the county undivided local government fund;
(c) The sum of the amounts distributed to the municipal
corporation in calendar year 2010 pursuant to section 5747.50 of
the Revised Code;
(d) With respect to taxes levied by the municipal
corporation, the taxes charged and payable against all property on
the tax list of real and public utility property for current
expenses, defined in division (A)(35) of this section, for tax
year 2009;
(e) The amount of admissions tax collected by the municipal
corporation in calendar year 2008, or if such information has not
yet been reported to the tax commissioner, in the most recent year
before 2008 for which the municipal corporation has reported data
to the commissioner;
(f) The amount of income taxes collected by the municipal
corporation in calendar year 2008, or if such information has not
yet been reported to the tax commissioner, in the most recent year
before 2008 for which the municipal corporation has reported data
to the commissioner;
(g) The municipal corporation's median estate tax
collections.
(30) "Total resources," in the case of a township, means the
sum of the amounts in divisions (A)(30)(a) to (c) of this section
less any reduction required under division (A)(32) or (33) of this
section.
(a) The sum of the payments received by the township in
calendar year 2010 pursuant to division (A)(1) of section 5727.86
of the Revised Code and divisions (A)(1) and (2) of section
5751.22 of the Revised Code as they existed at that time,
excluding payments received for debt purposes;
(b) The township's percentage share of county undivided local
government fund allocations as certified to the tax commissioner
for calendar year 2010 by the county auditor under division (J) of
section 5747.51 of the Revised Code or division (F) of section
5747.53 of the Revised Code multiplied by the total amount
actually distributed in calendar year 2010 from the county
undivided local government fund;
(c) With respect to taxes levied by the township, the taxes
charged and payable against all property on the tax list of real
and public utility property for tax year 2009 excluding taxes
charged and payable for the purpose of paying debt charges.
(31) "Total resources," in the case of a local taxing unit
that is not a county, municipal corporation, or township, means
the sum of the amounts in divisions (A)(31)(a) to (e) of this
section less any reduction required under division (A)(32) of this
section.
(a) The sum of the payments received by the local taxing unit
in calendar year 2010 pursuant to division (A)(1) of section
5727.86 of the Revised Code and divisions (A)(1) and (2) of
section 5751.22 of the Revised Code as they existed at that time;
(b) The local taxing unit's percentage share of county
undivided local government fund allocations as certified to the
tax commissioner for calendar year 2010 by the county auditor
under division (J) of section 5747.51 of the Revised Code or
division (F) of section 5747.53 of the Revised Code multiplied by
the total amount actually distributed in calendar year 2010 from
the county undivided local government fund;
(c) With respect to taxes levied by the local taxing unit,
the taxes charged and payable against all property on the tax list
of real and public utility property for tax year 2009 excluding
taxes charged and payable for the purpose of paying debt charges;
(d) The amount received from the tax commissioner during
calendar year 2010 for sales or use taxes authorized under
sections 5739.023 and 5741.022 of the Revised Code;
(e) For institutions of higher education receiving tax
revenue from a local levy, as identified in section 3358.02 of the
Revised Code, the final state share of instruction allocation for
fiscal year 2010 as calculated by the board of regents and
reported to the state controlling board.
(32) If a fixed-rate levy that is a qualifying levy is not
charged and payable in any year after tax year 2010, "total
resources" used to compute payments to be made under division
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section
5751.22 of the Revised Code in the tax years following the last
year the levy is charged and payable shall be reduced to the
extent that the payments are attributable to the fixed-rate levy
loss of that levy as would be computed under division (C)(2) of
section 5727.85, division (A)(1) of section 5727.85, divisions
(C)(8) and (9) of section 5751.21, or division (A)(1) of section
5751.22 of the Revised Code.
(33) In the case of a county, municipal corporation, school
district, or township with fixed-rate levy losses attributable to
a tax levied under section 5705.23 of the Revised Code, "total
resources" used to compute payments to be made under division
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86,
division (C)(12) of section 5751.21, or division (A)(1)(c) of
section 5751.22 of the Revised Code shall be reduced by the
amounts described in divisions (A)(34)(a) to (c) of this section
to the extent that those amounts were included in calculating the
"total resources" of the school district or local taxing unit
under division (A)(22), (28), (29), or (30) of this section.
(34) "Total library resources," in the case of a county,
municipal corporation, school district, or township public library
that receives the proceeds of a tax levied under section 5705.23
of the Revised Code, means the sum of the amounts in divisions
(A)(34)(a) to (c) of this section less any reduction required
under division (A)(32) of this section.
(a) The sum of the payments received by the county, municipal
corporation, school district, or township public library in
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the
Revised Code, as they existed at that time, for fixed-rate levy
losses attributable to a tax levied under section 5705.23 of the
Revised Code for the benefit of the public library;
(b) The public library's percentage share of county undivided
local government fund allocations as certified to the tax
commissioner for calendar year 2010 by the county auditor under
division (J) of section 5747.51 of the Revised Code or division
(F) of section 5747.53 of the Revised Code multiplied by the total
amount actually distributed in calendar year 2010 from the county
undivided local government fund;
(c) With respect to a tax levied pursuant to section 5705.23
of the Revised Code for the benefit of the public library, the
amount of such tax that is charged and payable against all
property on the tax list of real and public utility property for
tax year 2009 excluding any tax that is charged and payable for
the purpose of paying debt charges.
(35) "Municipal current expense property tax levies" means
all property tax levies of a municipality, except those with the
following levy names: airport resurfacing; bond or any levy name
including the word "bond"; capital improvement or any levy name
including the word "capital"; debt or any levy name including the
word "debt"; equipment or any levy name including the word
"equipment," unless the levy is for combined operating and
equipment; employee termination fund; fire pension or any levy
containing the word "pension," including police pensions;
fireman's fund or any practically similar name; sinking fund; road
improvements or any levy containing the word "road"; fire truck or
apparatus; flood or any levy containing the word "flood";
conservancy district; county health; note retirement; sewage, or
any levy containing the words "sewage" or "sewer"; park
improvement; parkland acquisition; storm drain; street or any levy
name containing the word "street"; lighting, or any levy name
containing the word "lighting"; and water.
(36) "Current expense TPP allocation" means, in the case of a
school district or joint vocational school district, the sum of
the payments received by the school district in fiscal year 2011
pursuant to divisions (C)(10) and (11) of section 5751.21 of the
Revised Code to the extent paid for current expense levies. In the
case of a municipal corporation, "current expense TPP allocation"
means the sum of the payments received by the municipal
corporation in calendar year 2010 pursuant to divisions (A)(1) and
(2) of section 5751.22 of the Revised Code to the extent paid for
municipal current expense property tax levies as defined in
division (A)(35) of this section, excluding any such payments
received for current expense levy losses attributable to a tax
levied under section 5705.23 of the Revised Code. If a fixed-rate
levy that is a qualifying levy is not charged and payable in any
year after tax year 2010, "current expense TPP allocation" used to
compute payments to be made under division (C)(12) of section
5751.21 or division (A)(1)(b) or (c) of section 5751.22 of the
Revised Code in the tax years following the last year the levy is
charged and payable shall be reduced to the extent that the
payments are attributable to the fixed-rate levy loss of that levy
as would be computed under divisions (C)(10) and (11) of section
5751.21 or division (A)(1) of section 5751.22 of the Revised Code.
(37) "TPP allocation" means the sum of payments received by a
local taxing unit in calendar year 2010 pursuant to divisions
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding
any such payments received for fixed-rate levy losses attributable
to a tax levied under section 5705.23 of the Revised Code. If a
fixed-rate levy that is a qualifying levy is not charged and
payable in any year after tax year 2010, "TPP allocation" used to
compute payments to be made under division (A)(1)(b) or (c) of
section 5751.22 of the Revised Code in the tax years following the
last year the levy is charged and payable shall be reduced to the
extent that the payments are attributable to the fixed-rate levy
loss of that levy as would be computed under division (A)(1) of
that section.
(38) "Total TPP allocation" means, in the case of a school
district or joint vocational school district, the sum of the
amounts received in fiscal year 2011 pursuant to divisions (C)(10)
and (11) and (D) of section 5751.21 of the Revised Code. In the
case of a local taxing unit, "total TPP allocation" means the sum
of payments received by the unit in calendar year 2010 pursuant to
divisions (A)(1), (2), and (3) of section 5751.22 of the Revised
Code. If a fixed-rate levy that is a qualifying levy is not
charged and payable in any year after tax year 2010, "total TPP
allocation" used to compute payments to be made under division
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section
5751.22 of the Revised Code in the tax years following the last
year the levy is charged and payable shall be reduced to the
extent that the payments are attributable to the fixed-rate levy
loss of that levy as would be computed under divisions (C)(10) and
(11) of section 5751.21 or division (A)(1) of section 5751.22 of
the Revised Code.
(39) "Non-current expense TPP allocation" means the
difference of total TPP allocation minus the sum of current
expense TPP allocation and the portion of total TPP allocation
constituting reimbursement for debt levies, pursuant to division
(D) of section 5751.21 of the Revised Code in the case of a school
district or joint vocational school district and pursuant to
division (A)(3) of section 5751.22 of the Revised Code in the case
of a municipal corporation.
(40) "TPP allocation for library purposes" means the sum of
payments received by a county, municipal corporation, school
district, or township public library in calendar year 2010
pursuant to section 5751.22 of the Revised Code for fixed-rate
levy losses attributable to a tax levied under section 5705.23 of
the Revised Code. If a fixed-rate levy authorized under section
5705.23 of the Revised Code that is a qualifying levy is not
charged and payable in any year after tax year 2010, "TPP
allocation for library purposes" used to compute payments to be
made under division (A)(1)(d) of section 5751.22 of the Revised
Code in the tax years following the last year the levy is charged
and payable shall be reduced to the extent that the payments are
attributable to the fixed-rate levy loss of that levy as would be
computed under division (A)(1) of section 5751.22 of the Revised
Code.
(41) "Threshold per cent" means, in the case of a school
district or joint vocational school district, two per cent for
fiscal year 2012 and four per cent for fiscal years 2013 and
thereafter. In the case of a local taxing unit or public library
that receives the proceeds of a tax levied under section 5705.23
of the Revised Code, "threshold per cent" means two per cent for
tax year 2011, four per cent for tax year 2012, and six per cent
for tax years 2013 and thereafter.
(B)(1) The commercial activities tax receipts fund is hereby
created in the state treasury and shall consist of money arising
from the tax imposed under this chapter. Eighty-five
one-hundredths of one per cent of the money credited to that fund
shall be credited to the revenue enhancement fund and shall be
used to defray the costs incurred by the department of taxation in
administering the tax imposed by this chapter and in implementing
tax reform measures. The remainder of the money in the commercial
activities tax receipts fund shall first be credited to the
commercial activity tax motor fuel receipts fund, pursuant to
division (B)(2) of this section, and the remainder shall be
credited in the following percentages each fiscal year to the
general revenue fund, to the school district tangible property tax
replacement fund, which is hereby created in the state treasury
for the purpose of making the payments described in section
5751.21 of the Revised Code, and to the local government tangible
property tax replacement fund, which is hereby created in the
state treasury for the purpose of making the payments described in
section 5751.22 of the Revised Code, in the following percentages:
Fiscal year |
General Revenue Fund |
School District Tangible Property Tax Replacement Fund |
Local Government Tangible Property Tax Replacement Fund |
|
|
2006 |
67.7% |
22.6% |
9.7% |
|
|
2007 |
0% |
70.0% |
30.0% |
|
|
2008 |
0% |
70.0% |
30.0% |
|
|
2009 |
0% |
70.0% |
30.0% |
|
|
2010 |
0% |
70.0% |
30.0% |
|
|
2011 |
0% |
70.0% |
30.0% |
|
|
2012 |
25.0% |
52.5% |
22.5% |
|
|
2013 and thereafter |
50.0% |
35.0% |
15.0% |
|
|
(2) Not later than the twentieth day of February, May,
August, and November of each year, the commissioner shall provide
for payment from the commercial activities tax receipts fund to
the commercial activity tax motor fuel receipts fund an amount
that bears the same ratio to the balance in the commercial
activities tax receipts fund that (a) the taxable gross receipts
attributed to motor fuel used for propelling vehicles on public
highways as indicated by returns filed by the tenth day of that
month for a liability that is due and payable on or after July 1,
2013, for a tax period ending before July 1, 2014, bears to (b)
all taxable gross receipts as indicated by those returns for such
liabilities.
(C) Not later than September 15, 2005, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its machinery and equipment,
inventory property, furniture and fixtures property, and telephone
property tax value losses, which are the applicable amounts
described in divisions (C)(1), (2), (3), and (4) of this section,
except as provided in division (C)(5) of this section:
(1) Machinery and equipment property tax value loss is the
taxable value of machinery and equipment property as reported by
taxpayers for tax year 2004 multiplied by:
(a) For tax year 2006, thirty-three and eight-tenths per
cent;
(b) For tax year 2007, sixty-one and three-tenths per cent;
(c) For tax year 2008, eighty-three per cent;
(d) For tax year 2009 and thereafter, one hundred per cent.
(2) Inventory property tax value loss is the taxable value of
inventory property as reported by taxpayers for tax year 2004
multiplied by:
(a) For tax year 2006, a fraction, the numerator of which is
five and three-fourths and the denominator of which is
twenty-three;
(b) For tax year 2007, a fraction, the numerator of which is
nine and one-half and the denominator of which is twenty-three;
(c) For tax year 2008, a fraction, the numerator of which is
thirteen and one-fourth and the denominator of which is
twenty-three;
(d) For tax year 2009 and thereafter a fraction, the
numerator of which is seventeen and the denominator of which is
twenty-three.
(3) Furniture and fixtures property tax value loss is the
taxable value of furniture and fixture property as reported by
taxpayers for tax year 2004 multiplied by:
(a) For tax year 2006, twenty-five per cent;
(b) For tax year 2007, fifty per cent;
(c) For tax year 2008, seventy-five per cent;
(d) For tax year 2009 and thereafter, one hundred per cent.
The taxable value of property reported by taxpayers used in
divisions (C)(1), (2), and (3) of this section shall be such
values as determined to be final by the tax commissioner as of
August 31, 2005. Such determinations shall be final except for any
correction of a clerical error that was made prior to August 31,
2005, by the tax commissioner.
(4) Telephone property tax value loss is the taxable value of
telephone property as taxpayers would have reported that property
for tax year 2004 if the assessment rate for all telephone
property for that year were twenty-five per cent, multiplied by:
(a) For tax year 2006, zero per cent;
(b) For tax year 2007, zero per cent;
(c) For tax year 2008, zero per cent;
(d) For tax year 2009, sixty per cent;
(e) For tax year 2010, eighty per cent;
(f) For tax year 2011 and thereafter, one hundred per cent.
(5) Division (C)(5) of this section applies to any school
district, joint vocational school district, or local taxing unit
in a county in which is located a facility currently or formerly
devoted to the enrichment or commercialization of uranium or
uranium products, and for which the total taxable value of
property listed on the general tax list of personal property for
any tax year from tax year 2001 to tax year 2004 was fifty per
cent or less of the taxable value of such property listed on the
general tax list of personal property for the next preceding tax
year.
In computing the fixed-rate levy losses under divisions
(D)(1), (2), and (3) of this section for any school district,
joint vocational school district, or local taxing unit to which
division (C)(5) of this section applies, the taxable value of such
property as listed on the general tax list of personal property
for tax year 2000 shall be substituted for the taxable value of
such property as reported by taxpayers for tax year 2004, in the
taxing district containing the uranium facility, if the taxable
value listed for tax year 2000 is greater than the taxable value
reported by taxpayers for tax year 2004. For the purpose of making
the computations under divisions (D)(1), (2), and (3) of this
section, the tax year 2000 valuation is to be allocated to
machinery and equipment, inventory, and furniture and fixtures
property in the same proportions as the tax year 2004 values. For
the purpose of the calculations in division (A) of section 5751.21
of the Revised Code, the tax year 2004 taxable values shall be
used.
To facilitate the calculations required under division (C) of
this section, the county auditor, upon request from the tax
commissioner, shall provide by August 1, 2005, the values of
machinery and equipment, inventory, and furniture and fixtures for
all single-county personal property taxpayers for tax year 2004.
(D) Not later than September 15, 2005, the tax commissioner
shall determine for each tax year from 2006 through 2009 for each
school district, joint vocational school district, and local
taxing unit its machinery and equipment, inventory, and furniture
and fixtures fixed-rate levy losses, and for each tax year from
2006 through 2011 its telephone property fixed-rate levy loss.
Except as provided in division (F) of this section, such losses
are the applicable amounts described in divisions (D)(1), (2),
(3), and (4) of this section:
(1) The machinery and equipment fixed-rate levy loss is the
machinery and equipment property tax value loss multiplied by the
sum of the tax rates of fixed-rate qualifying levies.
(2) The inventory fixed-rate loss is the inventory property
tax value loss multiplied by the sum of the tax rates of
fixed-rate qualifying levies.
(3) The furniture and fixtures fixed-rate levy loss is the
furniture and fixture property tax value loss multiplied by the
sum of the tax rates of fixed-rate qualifying levies.
(4) The telephone property fixed-rate levy loss is the
telephone property tax value loss multiplied by the sum of the tax
rates of fixed-rate qualifying levies.
(E) Not later than September 15, 2005, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its fixed-sum levy loss. The
fixed-sum levy loss is the amount obtained by subtracting the
amount described in division (E)(2) of this section from the
amount described in division (E)(1) of this section:
(1) The sum of the machinery and equipment property tax value
loss, the inventory property tax value loss, and the furniture and
fixtures property tax value loss, and, for 2008 through 2010, the
telephone property tax value loss of the district or unit
multiplied by the sum of the fixed-sum tax rates of qualifying
levies. For 2006 through 2010, this computation shall include all
qualifying levies remaining in effect for the current tax year and
any school district levies charged and payable under section
5705.194 or 5705.213 of the Revised Code that are qualifying
levies not remaining in effect for the current year. For 2011
through 2017 in the case of school district levies charged and
payable under section 5705.194 or 5705.213 of the Revised Code and
for all years after 2010 in the case of other fixed-sum levies,
this computation shall include only qualifying levies remaining in
effect for the current year. For purposes of this computation, a
qualifying school district levy charged and payable under section
5705.194 or 5705.213 of the Revised Code remains in effect in a
year after 2010 only if, for that year, the board of education
levies a school district levy charged and payable under section
5705.194, 5705.199, 5705.213, or 5705.219 of the Revised Code for
an annual sum at least equal to the annual sum levied by the board
in tax year 2004 less the amount of the payment certified under
this division for 2006.
(2) The total taxable value in tax year 2004 less the sum of
the machinery and equipment, inventory, furniture and fixtures,
and telephone property tax value losses in each school district,
joint vocational school district, and local taxing unit multiplied
by one-half of one mill per dollar.
(3) For the calculations in divisions (E)(1) and (2) of this
section, the tax value losses are those that would be calculated
for tax year 2009 under divisions (C)(1), (2), and (3) of this
section and for tax year 2011 under division (C)(4) of this
section.
(4) To facilitate the calculation under divisions (D) and (E)
of this section, not later than September 1, 2005, any school
district, joint vocational school district, or local taxing unit
that has a qualifying levy that was approved at an election
conducted during 2005 before September 1, 2005, shall certify to
the tax commissioner a copy of the county auditor's certificate of
estimated property tax millage for such levy as required under
division (B) of section 5705.03 of the Revised Code, which is the
rate that shall be used in the calculations under such divisions.
If the amount determined under division (E) of this section
for any school district, joint vocational school district, or
local taxing unit is greater than zero, that amount shall equal
the reimbursement to be paid pursuant to division (E) of section
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,
and the one-half of one mill that is subtracted under division
(E)(2) of this section shall be apportioned among all contributing
fixed-sum levies in the proportion that each levy bears to the sum
of all fixed-sum levies within each school district, joint
vocational school district, or local taxing unit.
(F) If a school district levies a tax under section 5705.219
of the Revised Code, the fixed-rate levy loss for qualifying
levies, to the extent repealed under that section, shall equal the
sum of the following amounts in lieu of the amounts computed for
such levies under division (D) of this section:
(1) The sum of the rates of qualifying levies to the extent
so repealed multiplied by the sum of the machinery and equipment,
inventory, and furniture and fixtures tax value losses for 2009 as
determined under that division;
(2) The sum of the rates of qualifying levies to the extent
so repealed multiplied by the telephone property tax value loss
for 2011 as determined under that division.
The fixed-rate levy losses for qualifying levies to the
extent not repealed under section 5705.219 of the Revised Code
shall be as determined under division (D) of this section. The
revised fixed-rate levy losses determined under this division and
division (D) of this section first apply in the year following the
first year the district levies the tax under section 5705.219 of
the Revised Code.
(G) Not later than October 1, 2005, the tax commissioner
shall certify to the department of education for every school
district and joint vocational school district the machinery and
equipment, inventory, furniture and fixtures, and telephone
property tax value losses determined under division (C) of this
section, the machinery and equipment, inventory, furniture and
fixtures, and telephone fixed-rate levy losses determined under
division (D) of this section, and the fixed-sum levy losses
calculated under division (E) of this section. The calculations
under divisions (D) and (E) of this section shall separately
display the levy loss for each levy eligible for reimbursement.
(H) Not later than October 1, 2005, the tax commissioner
shall certify the amount of the fixed-sum levy losses to the
county auditor of each county in which a school district, joint
vocational school district, or local taxing unit with a fixed-sum
levy loss reimbursement has territory.
(I) Not later than the twenty-eighth day of February each
year beginning in 2011 and ending in 2014, the tax commissioner
shall certify to the department of education for each school
district first levying a tax under section 5705.219 of the Revised
Code in the preceding year the revised fixed-rate levy losses
determined under divisions (D) and (F) of this section.
(J)(1) There is hereby created in the state treasury the
commercial activity tax motor fuel receipts fund.
(2)(a) On or before June 15, 2014, the director of the Ohio
public works commission shall certify to the director of budget
and management the amount of debt service paid from the general
revenue fund in fiscal years 2013 and 2014 on bonds issued to
finance or assist in the financing of the cost of local
subdivision public infrastructure capital improvement projects, as
provided for in Sections 2k, 2m, and 2p of Article VIII, Ohio
Constitution, that are attributable to costs for construction,
reconstruction, maintenance, or repair of public highways and
bridges and other statutory highway purposes. That certification
shall allocate the total amount of debt service paid from the
general revenue fund and attributable to those costs in each of
fiscal years 2013 and 2014 according to the applicable section of
the Ohio Constitution under which the bonds were originally
issued.
(b) On or before June 30, 2014, the director of budget and
management shall determine an amount up to but not exceeding the
amount certified under division (J)(2)(a) of this section and
shall reserve that amount from the cash balance in the commercial
activity tax motor fuel receipts fund for transfer to the general
revenue fund at times and in amounts to be determined by the
director. The director shall transfer the cash balance in the
commercial activity tax motor fuel receipts fund in excess of the
amount so reserved to the highway operating fund on or before June
30, 2014.
(3)(a) On or before the fifteenth day of June of each fiscal
year beginning with fiscal year 2015, the director of the Ohio
public works commission shall certify to the director of budget
and management the amount of debt service paid from the general
revenue fund in the current fiscal year on bonds issued to finance
or assist in the financing of the cost of local subdivision public
infrastructure capital improvement projects, as provided for in
Sections 2k, 2m, and 2p of Article VIII, Ohio Constitution, that
are attributable to costs for construction, reconstruction,
maintenance, or repair of public highways and bridges and other
statutory highway purposes. That certification shall allocate the
total amount of debt service paid from the general revenue fund
and attributable to those costs in the current fiscal year
according to the applicable section of the Ohio Constitution under
which the bonds were originally issued.
(b) On or before the thirtieth day of June of each fiscal
year beginning with fiscal year 2015, the director of budget and
management shall determine an amount up to but not exceeding the
amount certified under division (J)(3)(a) of this section and
shall reserve that amount from the cash balance in the motor fuel
receipts petroleum activity tax public highways fund or the
commercial activity tax motor fuel receipts fund for transfer to
the general revenue fund at times and in amounts to be determined
by the director. The director shall transfer the cash balance in
the motor fuel receipts petroleum activity tax public highways
fund or the commercial activity tax motor fuel receipts fund in
excess of the amount so reserved to the highway operating fund on
or before the thirtieth day of June of the current fiscal year.
Section 2. That existing sections 5703.059, 5736.01, 5736.02,
5736.03, 5736.04, 5736.06, 5736.09, 5736.13, 5751.01, and 5751.20
of the Revised Code are hereby repealed.
Section 3. Division (J) of section 5751.20 of the Revised
Code is amended by this act and also by H.B. 59 of the 130th
General Assembly (effective July 1, 2014). The amendments of H.B.
59 are included in this act to confirm the intention to retain
them, but are not intended to be effective until July 1, 2014.
Section 4. This act takes effect July 1, 2014.
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