Bill Text: OH SB111 | 2009-2010 | 128th General Assembly | Introduced

---

Bill Title: To make permanent the temporary reimbursements for local government and school district tangible personal property tax losses.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2009-04-16 - To Ways & Means & Economic Development [SB111 Detail]

Download: Ohio-2009-SB111-Introduced.html

---

As Introduced

128th General Assembly Regular Session 2009-2010

S. B. No. 111

Senator Stewart 

Cosponsors: Senators Carey, Schaffer, Hughes 

---

A BILL

To amend sections 5751.20, 5751.21, 5751.22, and

1

5751.23 of the Revised Code to make permanent the

2

temporary reimbursements for local government and

3

school district tangible personal property tax

4

losses.

5

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 5751.20, 5751.21, 5751.22, and	6
5751.23 of the Revised Code be amended to read as follows:	7

Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of	8
the Revised Code:	9

(1) "School district," "joint vocational school district,"	10
"local taxing unit," "recognized valuation," "fixed-rate levy,"	11
and "fixed-sum levy" have the same meanings as used in section	12
5727.84 of the Revised Code.	13

(2) "State education aid" for a school district means the sum	14
of state aid amounts computed for the district under division (A)	15
of section 3317.022 of the Revised Code, including the amounts	16
calculated under sections 3317.029 and 3317.0217 of the Revised	17
Code; divisions (C)(1), (C)(4), (D), (E), and (F) of section	18
3317.022; divisions (B), (C), and (D) of section 3317.023;	19
divisions (L) and (N) of section 3317.024; section 3317.0216; and	20
any unit payments for gifted student services paid under sections	21
3317.05, 3317.052, and 3317.053 of the Revised Code; except that,	22
for fiscal years 2008 and 2009, the amount computed for the	23
district under Section 269.20.80 of H.B. 119 of the 127th general	24
assembly and as that section subsequently may be amended shall be	25
substituted for the amount computed under division (D) of section	26
3317.022 of the Revised Code, and the amount computed under	27
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	28
that section subsequently may be amended shall be included.	29

(3) "State education aid" for a joint vocational school	30
district means the sum of the state aid computed for the district	31
under division (N) of section 3317.024 and section 3317.16 of the	32
Revised Code, except that, for fiscal years 2008 and 2009, the	33
amount computed under Section 269.30.80 of H.B. 119 of the 127th	34
general assembly and as that section subsequently may be amended	35
shall be included.	36

(4) "State education aid offset" means the amount determined	37
for each school district or joint vocational school district under	38
division (A)(1) of section 5751.21 of the Revised Code.	39

(5) "Machinery and equipment property tax value loss" means	40
the amount determined under division (C)(1) of this section.	41

(6) "Inventory property tax value loss" means the amount	42
determined under division (C)(2) of this section.	43

(7) "Furniture and fixtures property tax value loss" means	44
the amount determined under division (C)(3) of this section.	45

(8) "Machinery and equipment fixed-rate levy loss" means the	46
amount determined under division (D)(1) of this section.	47

(9) "Inventory fixed-rate levy loss" means the amount	48
determined under division (D)(2) of this section.	49

(10) "Furniture and fixtures fixed-rate levy loss" means the	50
amount determined under division (D)(3) of this section.	51

(11) "Total fixed-rate levy loss" means the sum of the	52
machinery and equipment fixed-rate levy loss, the inventory	53
fixed-rate levy loss, the furniture and fixtures fixed-rate levy	54
loss, and the telephone company fixed-rate levy loss.	55

(12) "Fixed-sum levy loss" means the amount determined under	56
division (E) of this section.	57

(13) "Machinery and equipment" means personal property	58
subject to the assessment rate specified in division (F) of	59
section 5711.22 of the Revised Code.	60

(14) "Inventory" means personal property subject to the	61
assessment rate specified in division (E) of section 5711.22 of	62
the Revised Code.	63

(15) "Furniture and fixtures" means personal property	64
subject to the assessment rate specified in division (G) of	65
section 5711.22 of the Revised Code.	66

(16) "Qualifying levies" are levies in effect for tax year	67
2004 or applicable to tax year 2005 or approved at an election	68
conducted before September 1, 2005. For the purpose of	69
determining the rate of a qualifying levy authorized by section	70
5705.212 or 5705.213 of the Revised Code, the rate shall be the	71
rate that would be in effect for tax year 2010.	72

(17) "Telephone property" means tangible personal property	73
of a telephone, telegraph, or interexchange telecommunications	74
company subject to an assessment rate specified in section	75
5727.111 of the Revised Code in tax year 2004.	76

(18) "Telephone property tax value loss" means the amount	77
determined under division (C)(4) of this section.	78

(19) "Telephone property fixed-rate levy loss" means the	79
amount determined under division (D)(4) of this section.	80

(B) The commercial activities tax receipts fund is hereby	81
created in the state treasury and shall consist of money arising	82
from the tax imposed under this chapter. All money in that fund	83
shall be credited for each fiscal year in the following	84
percentages to the general revenue fund, to the school district	85
tangible property tax replacement fund, which is hereby created in	86
the state treasury for the purpose of making the payments	87
described in section 5751.21 of the Revised Code, and to the local	88
government tangible property tax replacement fund, which is hereby	89
created in the state treasury for the purpose of making the	90
payments described in section 5751.22 of the Revised Code, in the	91
following percentages:	92

Fiscal year	General Revenue Fund	School District Tangible Property Tax Replacement Fund	Local Government Tangible Property Tax Replacement Fund		93
2006	67.7%	22.6%	9.7%		94
2007	0%	70.0%	30.0%		95
2008	0%	70.0%	30.0%		96
2009	0%	70.0%	30.0%		97
2010	0%	70.0%	30.0%		98
2011 and thereafter	0%	70.0%	30.0%		99
2012	5.3%	70.0%	24.7%		100
2013	10.6%	70.0%	19.4%		101
2014	14.1%	70.0%	15.9%		102
2015	17.6%	70.0%	12.4%		103
2016	21.1%	70.0%	8.9%		104
2017	24.6%	70.0%	5.4%		105
2018	28.1%	70.0%	1.9%		106
2019 and thereafter	30%	70%	0%		107

(C) Not later than September 15, 2005, the tax commissioner	108
shall determine for each school district, joint vocational school	109
district, and local taxing unit its machinery and equipment,	110
inventory property, furniture and fixtures property, and telephone	111
property tax value losses, which are the applicable amounts	112
described in divisions (C)(1), (2), (3), and (4) of this section,	113
except as provided in division (C)(5) of this section:	114

(1) Machinery and equipment property tax value loss is the	115
taxable value of machinery and equipment property as reported by	116
taxpayers for tax year 2004 multiplied by:	117

(a) For tax year 2006, thirty-three and eight-tenths per	118
cent;	119

(b) For tax year 2007, sixty-one and three-tenths per cent;

120

(c) For tax year 2008, eighty-three per cent;

121

(d) For tax year 2009 and thereafter, one hundred per cent.

122

(2) Inventory property tax value loss is the taxable value of	123
inventory property as reported by taxpayers for tax year 2004	124
multiplied by:	125

(a) For tax year 2006, a fraction, the numerator of which is	126
five and three-fourths and the denominator of which is	127
twenty-three;	128

(b) For tax year 2007, a fraction, the numerator of which is	129
nine and one-half and the denominator of which is twenty-three;	130

(c) For tax year 2008, a fraction, the numerator of which is	131
thirteen and one-fourth and the denominator of which is	132
twenty-three;	133

(d) For tax year 2009 and thereafter a fraction, the	134
numerator of which is seventeen and the denominator of which is	135
twenty-three.	136

(3) Furniture and fixtures property tax value loss is the	137
taxable value of furniture and fixture property as reported by	138
taxpayers for tax year 2004 multiplied by:	139

(a) For tax year 2006, twenty-five per cent;

140

(b) For tax year 2007, fifty per cent;

141

(c) For tax year 2008, seventy-five per cent;

142

(d) For tax year 2009 and thereafter, one hundred per cent.

143

The taxable value of property reported by taxpayers used in	144
divisions (C)(1), (2), and (3) of this section shall be such	145
values as determined to be final by the tax commissioner as of	146
August 31, 2005. Such determinations shall be final except for any	147
correction of a clerical error that was made prior to August 31,	148
2005, by the tax commissioner.	149

(4) Telephone property tax value loss is the taxable value of	150
telephone property as taxpayers would have reported that property	151
for tax year 2004 if the assessment rate for all telephone	152
property for that year were twenty-five per cent, multiplied by:	153

(a) For tax year 2006, zero per cent;

154

(b) For tax year 2007, zero per cent;

155

(c) For tax year 2008, zero per cent;

156

(d) For tax year 2009, sixty per cent;

157

(e) For tax year 2010, eighty per cent;

158

(f) For tax year 2011 and thereafter, one hundred per cent.

159

(5) Division (C)(5) of this section applies to any school	160
district, joint vocational school district, or local taxing unit	161
in a county in which is located a facility currently or formerly	162
devoted to the enrichment or commercialization of uranium or	163
uranium products, and for which the total taxable value of	164
property listed on the general tax list of personal property for	165
any tax year from tax year 2001 to tax year 2004 was fifty per	166
cent or less of the taxable value of such property listed on the	167
general tax list of personal property for the next preceding tax	168
year.	169

In computing the fixed-rate levy losses under divisions	170
(D)(1), (2), and (3) of this section for any school district,	171
joint vocational school district, or local taxing unit to which	172
division (C)(5) of this section applies, the taxable value of such	173
property as listed on the general tax list of personal property	174
for tax year 2000 shall be substituted for the taxable value of	175
such property as reported by taxpayers for tax year 2004, in the	176
taxing district containing the uranium facility, if the taxable	177
value listed for tax year 2000 is greater than the taxable value	178
reported by taxpayers for tax year 2004. For the purpose of making	179
the computations under divisions (D)(1), (2), and (3) of this	180
section, the tax year 2000 valuation is to be allocated to	181
machinery and equipment, inventory, and furniture and fixtures	182
property in the same proportions as the tax year 2004 values. For	183
the purpose of the calculations in division (A) of section 5751.21	184
of the Revised Code, the tax year 2004 taxable values shall be	185
used.	186

To facilitate the calculations required under division (C) of	187
this section, the county auditor, upon request from the tax	188
commissioner, shall provide by August 1, 2005, the values of	189
machinery and equipment, inventory, and furniture and fixtures for	190
all single-county personal property taxpayers for tax year 2004.	191

(D) Not later than September 15, 2005, the tax commissioner	192
shall determine for each tax year from 2006 through 2009 for each	193
school district, joint vocational school district, and local	194
taxing unit its machinery and equipment, inventory, and furniture	195
and fixtures fixed-rate levy losses, and for each tax year from	196
2006 through 2011 its telephone property fixed-rate levy loss,	197
which are the applicable amounts described in divisions (D)(1),	198
(2), (3), and (4) of this section:	199

(1) The machinery and equipment fixed-rate levy loss is the	200
machinery and equipment property tax value loss multiplied by the	201
sum of the tax rates of fixed-rate qualifying levies.	202

(2) The inventory fixed-rate loss is the inventory property	203
tax value loss multiplied by the sum of the tax rates of	204
fixed-rate qualifying levies.	205

(3) The furniture and fixtures fixed-rate levy loss is the	206
furniture and fixture property tax value loss multiplied by the	207
sum of the tax rates of fixed-rate qualifying levies.	208

(4) The telephone property fixed-rate levy loss is the	209
telephone property tax value loss multiplied by the sum of the tax	210
rates of fixed-rate qualifying levies.	211

(E) Not later than September 15, 2005, the tax commissioner	212
shall determine for each school district, joint vocational school	213
district, and local taxing unit its fixed-sum levy loss. The	214
fixed-sum levy loss is the amount obtained by subtracting the	215
amount described in division (E)(2) of this section from the	216
amount described in division (E)(1) of this section:	217

(1) The sum of the machinery and equipment property tax value	218
loss, the inventory property tax value loss, and the furniture and	219
fixtures property tax value loss, and, for 2008 through 2017and	220
thereafter the telephone property tax value loss of the district	221
or unit multiplied by the sum of the fixed-sum tax rates of	222
qualifying levies. For 2006 through 2010, this computation shall	223
include all qualifying levies remaining in effect for the current	224
tax year and any school district levies imposed under section	225
5705.194 or 5705.213 of the Revised Code that are qualifying	226
levies not remaining in effect for the current year. For 2011	227
through 2017 in the case of school district levies imposed	228
under section 5705.194 or 5705.213 of the Revised Code and for	229
all years after 2010 in the case of other fixed-sum leviesand	230
thereafter, this computation shall include only qualifying	231
levies remaining in effect for the current year. For purposes	232
of this computation, a qualifying school district levy imposed	233
under section 5705.194 or 5705.213 of the Revised Code remains	234
in effect in a year after 2010 only if, for that year, the board	235
of education levies a school district levy imposed under section	236
5705.194 or 5705.213 of the Revised Code for an annual sum at	237
least equal to the annual sum levied by the board in tax year	238
2004 less the amount of the payment certified under this	239
division for 2006.	240

(2) The total taxable value in tax year 2004 less the sum of	241
the machinery and equipment, inventory, furniture and fixtures,	242
and telephone property tax value losses in each school district,	243
joint vocational school district, and local taxing unit multiplied	244
by one-half of one mill per dollar.	245

(3) For the calculations in divisions (E)(1) and (2) of this	246
section, the tax value losses are those that would be calculated	247
for tax year 2009 under divisions (C)(1), (2), and (3) of this	248
section and for tax year 2011 under division (C)(4) of this	249
section.	250

(4) To facilitate the calculation under divisions (D) and (E)	251
of this section, not later than September 1, 2005, any school	252
district, joint vocational school district, or local taxing unit	253
that has a qualifying levy that was approved at an election	254
conducted during 2005 before September 1, 2005, shall certify to	255
the tax commissioner a copy of the county auditor's certificate of	256
estimated property tax millage for such levy as required under	257
division (B) of section 5705.03 of the Revised Code, which is the	258
rate that shall be used in the calculations under such divisions.	259

If the amount determined under division (E) of this section	260
for any school district, joint vocational school district, or	261
local taxing unit is greater than zero, that amount shall equal	262
the reimbursement to be paid pursuant to division (E) of section	263
5751.21 or division (A)(3) of section 5751.22 of the Revised	264
Code, and the one-half of one mill that is subtracted under	265
division (E)(2) of this section shall be apportioned among all	266
contributing fixed-sum levies in the proportion that each levy	267
bears to the sum of all fixed-sum levies within each school	268
district, joint vocational school district, or local taxing unit.	269

(F) Not later than October 1, 2005, the tax commissioner	270
shall certify to the department of education for every school	271
district and joint vocational school district the machinery and	272
equipment, inventory, furniture and fixtures, and telephone	273
property tax value losses determined under division (C) of this	274
section, the machinery and equipment, inventory, furniture and	275
fixtures, and telephone fixed-rate levy losses determined under	276
division (D) of this section, and the fixed-sum levy losses	277
calculated under division (E) of this section. The calculations	278
under divisions (D) and (E) of this section shall separately	279
display the levy loss for each levy eligible for reimbursement.	280

(G) Not later than October 1, 2005, the tax commissioner	281
shall certify the amount of the fixed-sum levy losses to the	282
county auditor of each county in which a school district, joint	283
vocational school district, or local taxing unit with a fixed-sum	284
levy loss reimbursement has territory.	285

Sec. 5751.21.  (A) Not later than the thirtieth day of July	286
of 2007 through 2017and of each year thereafter, the department	287
of education shall consult with the director of budget and	288
management and determine the following for each school district	289
and each joint vocational school district eligible for payment	290
under division (B) of this section:	291

(1) The state education aid offset, which is the difference	292
obtained by subtracting the amount described in division (A)(1)(b)	293
of this section from the amount described in division (A)(1)(a) of	294
this section:	295

(a) The state education aid computed for the school district	296
or joint vocational school district for the current fiscal year as	297
of the thirtieth day of July;	298

(b) The state education aid that would be computed for the	299
school district or joint vocational school district for the	300
current fiscal year as of the thirtieth day of July if the	301
recognized valuation included the machinery and equipment,	302
inventory, furniture and fixtures, and telephone property tax	303
value losses for the school district or joint vocational school	304
district for the second preceding tax year, and if taxes charged	305
and payable associated with the tax value losses are accounted for	306
in any state education aid computation dependent on taxes charged	307
and payable.	308

(2) The greater of zero or the difference obtained by	309
subtracting the state education aid offset determined under	310
division (A)(1) of this section from the sum of the machinery and	311
equipment fixed-rate levy loss, the inventory fixed-rate levy	312
loss, furniture and fixtures fixed-rate levy loss, and telephone	313
property fixed-rate levy loss certified under division (F) of	314
section 5751.20 of the Revised Code for all taxing districts in	315
each school district and joint vocational school district for the	316
second preceding tax year.	317

By the thirtieth day of July of each such year, the	318
department of education and the director of budget and management	319
shall agree upon the amount to be determined under division	320
(A)(1) of this section.	321

(B) On or before the thirty-first day of August of each year	322
beginning in 2008, the department of education shall recalculate	323
the offset described under division (A) of this section for the	324
previous fiscal year and recalculate the payments made under	325
division (C) of this section in the preceding fiscal year using	326
the offset calculated under this division. If the payments	327
calculated under this division differ from the payments made under	328
division (C) of this section in the preceding fiscal year, the	329
difference shall either be paid to a school district or recaptured	330
from a school district through an adjustment at the same times	331
during the current fiscal year that the payments under division	332
(C) of this section are made. In August and October of the current	333
fiscal year, the amount of each adjustment shall be three-sevenths	334
of the amount calculated under this division. In May of the	335
current fiscal year, the adjustment shall be one-seventh of the	336
amount calculated under this division.	337

(C) The department of education shall pay from the school	338
district tangible property tax replacement fund to each school	339
district and joint vocational school district all of the following	340
for fixed-rate levy losses certified under division (F) of section	341
5751.20 of the Revised Code:	342

(1) On or before May 31, 2006, one-seventh of the total	343
fixed-rate levy loss for tax year 2006;	344

(2) On or before August 31, 2006, and October 31, 2006,	345
one-half of six-sevenths of the total fixed-rate levy loss for tax	346
year 2006;	347

(3) On or before May 31, 2007, one-seventh of the total	348
fixed-rate levy loss for tax year 2007;	349

(4) On or before August 31, 2007, and October 31, 2007,	350
forty-three per cent of the amount determined under division	351
(A)(2) of this section for fiscal year 2008, but not less than	352
zero, plus one-half of six-sevenths of the difference between the	353
total fixed-rate levy loss for tax year 2007 and the total	354
fixed-rate levy loss for tax year 2006.	355

(5) On or before May 31, 2008, fourteen per cent of the	356
amount determined under division (A)(2) of this section for	357
fiscal year 2008, but not less than zero, plus one-seventh of the	358
difference between the total fixed-rate levy loss for tax year	359
2008 and the total fixed-rate levy loss for tax year 2006.	360

(6) On or before August 31, 2008, and October 31, 2008,	361
forty-three per cent of the amount determined under division	362
(A)(2) of this section for fiscal year 2009, but not less than	363
zero, plus one-half of six-sevenths of the difference between the	364
total fixed-rate levy loss in tax year 2008 and the total	365
fixed-rate levy loss in tax year 2007.	366

(7) On or before May 31, 2009, fourteen per cent of the	367
amount determined under division (A)(2) of this section for	368
fiscal year 2009, but not less than zero, plus one-seventh of the	369
difference between the total fixed-rate levy loss for tax year	370
2009 and the total fixed-rate levy loss for tax year 2007.	371

(8) On or before August 31, 2009, and October 31, 2009,	372
forty-three per cent of the amount determined under division	373
(A)(2) of this section for fiscal year 2010, but not less than	374
zero, plus one-half of six-sevenths of the difference between the	375
total fixed-rate levy loss in tax year 2009 and the total	376
fixed-rate levy loss in tax year 2008.	377

(9) On or before May 31, 2010, fourteen per cent of the	378
amount determined under division (A)(2) of this section for	379
fiscal year 2010, but not less than zero, plus one-seventh of the	380
difference between the total fixed-rate levy loss in tax year 2010	381
and the total fixed-rate levy loss in tax year 2008.	382

(10) On or before August 31, 2010, and October 31, 2010,	383
forty-three per cent of the amount determined under division	384
(A)(2) of this section for fiscal year 2011, but not less than	385
zero, plus one-half of six-sevenths of the difference between the	386
telephone property fixed-rate levy loss for tax year 2010 and the	387
telephone property fixed-rate levy loss for tax year 2009.	388

(11) On or before May 31, 2011, fourteen per cent of the	389
amount determined under division (A)(2) of this section for	390
fiscal year 2011, but not less than zero, plus one-seventh of the	391
difference between the telephone property fixed-rate levy loss for	392
tax year 2011 and the telephone property fixed-rate levy loss for	393
tax year 2009.	394

(12) On or before August 31, 2011, and October 31, 2011,	395
forty-three per cent of the amount determined under division	396
(A)(2) of this section multiplied by a fraction, the numerator	397
of which is fourteen and the denominator of which is seventeen,	398
but not less than zero, multiplied by forty-three per cent, plus	399
one-half of six-sevenths of the difference between the telephone	400
property fixed-rate levy loss for tax year 2011 and the telephone	401
property fixed-rate levy loss for tax year 2010.	402

(13) On or before May 31, 2012, fourteen per cent of the	403
amount determined under division (A)(2) of this section for	404
fiscal year 2012, multiplied by a fraction, the numerator of	405
which is fourteen and the denominator of which is seventeenbut	406
not less than zero, plus one-seventh of the difference between	407
the telephone property fixed-rate levy loss for tax year 2011 and	408
the telephone property fixed-rate levy loss for tax year 2010.	409

(14) On or before August 31, 2012, October 31, 2012, and May	410
31, 2013, the amount determined under division (A)(2) of this	411
section multiplied by a fraction, the numerator of which is	412
eleven and the denominator of which is seventeen, but not less	413
than zero, multiplied by one-third.	414

(15) On or before August 31, 2013, October 31, 2013, and May	415
31, 2014, the amount determined under division (A)(2) of this	416
section multiplied by a fraction, the numerator of which is nine	417
and the denominator of which is seventeen, but not less than	418
zero, multiplied by one-third.	419

(16) On or before August 31, 2014, October 31, 2014, and May	420
31, 2015, the amount determined under division (A)(2) of this	421
section multiplied by a fraction, the numerator of which is seven	422
and the denominator of which is seventeen, but not less than	423
zero, multiplied by one-third.	424

(17) On or before August 31, 2015, October 31, 2015, and May	425
31, 2016, the amount determined under division (A)(2) of this	426
section multiplied by a fraction, the numerator of which is five	427
and the denominator of which is seventeen, but not less than	428
zero, multiplied by one-third.	429

(18) On or before August 31, 2016, October 31, 2016, and May	430
31, 2017, the amount determined under division (A)(2) of this	431
section multiplied by a fraction, the numerator of which is three	432
and the denominator of which is seventeen, but not less than	433
zero, multiplied by one-third.	434

(19) On or before August 31, 2017, October 31, 2017, and May	435
31, 2018, the amount determined under division (A)(2) of this	436
section multiplied by a fraction, the numerator of which is one	437
and the denominator of which is seventeen, but not less than	438
zero, multiplied by one-thirdthe thirty-first day of August and	439
October of 2012 and of each year thereafter and the thirty-first	440
day of May of 2013 and of each year thereafter, one-third of the	441
amount determined under division (A)(2) of this section, but not	442
less than zero.	443

The department of education shall report to each school	444
district and joint vocational school district the apportionment of	445
the payments among the school district's or joint vocational	446
school district's funds based on the certifications under division	447
(F) of section 5751.20 of the Revised Code.	448

Any qualifying levy that is a fixed-rate levy that is not	449
applicable to a tax year after 2010 does not qualify for any	450
reimbursement after the tax year to which it is last applicable.	451

(D) For taxes levied within the ten-mill limitation for debt	452
purposes in tax year 2005, payments shall be made equal to one	453
hundred per cent of the loss computed as if the tax were a	454
fixed-rate levy, but those payments shall extend from fiscal year	455
2006 through fiscal year 2018, as long as the qualifying levy	456
continues to be used for debt purposes. If the purpose of such a	457
qualifying levy is changed, that levy becomes subject to the	458
payments determined in division (C) of this section.	459

(E)(1) Not later than January 1, 2006, for each fixed-sum	460
levy of each school district or joint vocational school district	461
and for each year for which a determination is made under division	462
(F)(E) of section 5751.20 of the Revised Code that a fixed-sum	463
levy loss is to be reimbursed, the tax commissioner shall certify	464
to the department of education the fixed-sum levy loss determined	465
under that division. The certification shall cover a time period	466
sufficient to include all fixed-sum levies for which the	467
commissioner made such a determination. The department shall pay	468
from the school district property tax replacement fund to the	469
school district or joint vocational school district one-third of	470
the fixed-sum levy loss so certified for each year on or before	471
the last day of May, August, and October of the current year.	472

(2) Beginning in 2006, by the first day of January of each	473
year, the tax commissioner shall review the certification	474
originally made under division (E)(1) of this section. If the	475
commissioner determines that a debt levy that had been scheduled	476
to be reimbursed in the current year has expired, a revised	477
certification for that and all subsequent years shall be made to	478
the department of education.	479

(F) Beginning in September 2007 and through June 2018, the	480
director of budget and management shall transfer from the school	481
district tangible property tax replacement fund to the general	482
revenue fund each of the following:	483

(1) On the first day of September, one-fourth of the amount	484
determined for that fiscal year under division (A)(1) of this	485
section;	486

(2) On the first day of December, one-fourth of the amount	487
determined for that fiscal year under division (A)(1) of this	488
section;	489

(3) On the first day of March, one-fourth of the amount	490
determined for that fiscal year under division (A)(1) of this	491
section;	492

(4) On the first day of June, one-fourth of the amount	493
determined for that fiscal year under division (A)(1) of this	494
section.	495

If, when a transfer is required under division (F)(1), (2),	496
(3), or (4) of this section, there is not sufficient money in the	497
school district tangible property tax replacement fund to make	498
the transfer in the required amount, the director shall transfer	499
the balance in the fund to the general revenue fund and may make	500
additional transfers on later dates as determined by the director	501
in a total amount that does not exceed one-fourth of the amount	502
determined for the fiscal year.	503

(G) For each of the fiscal years 2006 through 2018, ifIf the	504
total amount in the school district tangible property tax	505
replacement fund is insufficient to make all payments under	506
divisions (C), (D), and (E) of this section at the times the	507
payments are to be made, the director of budget and management	508
shall transfer from the general revenue fund to the school	509
district tangible property tax replacement fund the difference	510
between the total amount to be paid and the amount in the school	511
district tangible property tax replacement fund. For each fiscal	512
year after 2018, at the time payments under division (E) of this	513
section are to be made, the director of budget and management	514
shall transfer from the general revenue fund to the school	515
district property tax replacement fund the amount necessary to	516
make such payments.	517

(H)(1) On the fifteenth day of June of 2006 through 2011,	518
the director of budget and management may transfer any balance in	519
the school district tangible property tax replacement fund to the	520
general revenue fund. At the end of fiscal years 2012 through	521
2018, any balance in the school district tangible property tax	522
replacement fund shall remain in the fund to be used in future	523
fiscal years for school purposes.	524

(2) In each fiscal year beginning with fiscal year 2019In	525
each fiscal year thereafter, all amounts credited to the school	526
district tangible personal property tax replacement fund shall be	527
appropriated for school purposes.	528

(I) If all of the territory of a school district or joint	529
vocational school district is merged with another district, or if	530
a part of the territory of a school district or joint vocational	531
school district is transferred to an existing or newly created	532
district, the department of education, in consultation with the	533
tax commissioner, shall adjust the payments made under this	534
section as follows:	535

(1) For a merger of two or more districts, the machinery and	536
equipment, inventory, furniture and fixtures, and telephone	537
property fixed-rate levy losses and the fixed-sum levy losses of	538
the successor district shall be equal to the sum of the machinery	539
and equipment, inventory, furniture and fixtures, and telephone	540
property fixed-rate levy losses and debt levy losses as determined	541
in section 5751.20 of the Revised Code, for each of the districts	542
involved in the merger.	543

(2) If property is transferred from one district to a	544
previously existing district, the amount of machinery and	545
equipment, inventory, furniture and fixtures, and telephone	546
property tax value losses and fixed-rate levy losses that shall be	547
transferred to the recipient district shall be an amount equal to	548
the total machinery and equipment, inventory, furniture and	549
fixtures, and telephone property fixed-rate levy losses times a	550
fraction, the numerator of which is the value of business tangible	551
personal property on the land being transferred in the most recent	552
year for which data are available, and the denominator of which is	553
the total value of business tangible personal property in the	554
district from which the land is being transferred in the most	555
recent year for which data are available. For each of the first	556
five years after the property is transferred, but not after fiscal	557
year 2012, if the tax rate in the recipient district is less than	558
the tax rate of the district from which the land was transferred,	559
one-half of the payments arising from the amount of fixed-rate	560
levy losses so transferred to the recipient district shall be paid	561
to the recipient district and one-half of the payments arising	562
from the fixed-rate levy losses so transferred shall be paid to	563
the district from which the land was transferred. Fixed-rate levy	564
losses so transferred shall be computed on the basis of the sum of	565
the rates of fixed-rate qualifying levies of the district from	566
which the land was transferred, notwithstanding division (E) of	567
this section.	568

(3) After December 31, 2004, if property is transferred from	569
one or more districts to a district that is newly created out of	570
the transferred property, the newly created district shall be	571
deemed not to have any machinery and equipment, inventory,	572
furniture and fixtures, or telephone property fixed-rate levy	573
losses and the districts from which the property was transferred	574
shall have no reduction in their machinery and equipment,	575
inventory, furniture and fixtures, and telephone property	576
fixed-rate levy losses.	577

(4) If the recipient district under division (I)(2) of this	578
section or the newly created district under divisions (I)(3) of	579
this section is assuming debt from one or more of the districts	580
from which the property was transferred and any of the districts	581
losing the property had fixed-sum levy losses, the department of	582
education, in consultation with the tax commissioner, shall make	583
an equitable division of the fixed-sum levy loss reimbursements.	584

Sec. 5751.22.  (A) Not later than January 1, 2006, the tax	585
commissioner shall compute the payments to be made to each local	586
taxing unit for each year according to divisions (A)(1), (2), (3),	587
and (4) of this section, and shall distribute the payments in the	588
manner prescribed by division (C) of this section. The calculation	589
of the fixed-sum levy loss shall cover a time period sufficient to	590
include all fixed-sum levies for which the commissioner	591
determined, pursuant to division (E) of section 5751.20 of the	592
Revised Code, that a fixed-sum levy loss is to be reimbursed.	593

(1) Except as provided in division (A)(4) of this section,	594
forFor machinery and equipment, inventory, and furniture and	595
fixtures fixed-rate levy losses determined under division (D) of	596
section 5751.20 of the Revised Code, payments shall be made in an	597
amount equal to each of those losses multiplied by the following:	598

(a) For tax years 2006 through 2010, one hundred per cent;

599

(b) For tax year 2011, a fraction, the numerator of which is	600
fourteen and the denominator of which is seventeen;	601

(c) For tax year 2012, a fraction, the numerator of which is	602
eleven and the denominator of which is seventeen;	603

(d) For tax year 2013, a fraction, the numerator of which is	604
nine and the denominator of which is seventeen;	605

(e) For tax year 2014, a fraction, the numerator of which is	606
seven and the denominator of which is seventeen;	607

(f) For tax year 2015, a fraction, the numerator of which is	608
five and the denominator of which is seventeen;	609

(g) For tax year 2016, a fraction, the numerator of which is	610
three and the denominator of which is seventeen;	611

(h) For tax year 2017, a fraction, the numerator of which is	612
one and the denominator of which is seventeen;	613

(i) For tax years 2018 and thereafter, no fixed-rate payments	614
shall be made.	615

Any qualifying levy that is a fixed-rate levy that is not	616
applicable to a tax year after 2010 shall not qualify for any	617
reimbursement after the tax year to which it is last applicable.	618

(2) Except as provided in division (A)(4) of this section,	619
forFor telephone property fixed-rate levy losses determined under	620
division (D)(4) of section 5751.20 of the Revised Code, payments	621
shall be made in an amount equal to each of those losses	622
multiplied by the following:	623

(a) For tax years 2009 through 2011, one hundred per cent;

624

(b) For tax year 2012, seven-eighths;

625

(c) For tax year 2013, six-eighths;

626

(d) For tax year 2014, five-eighths;

627

(e) For tax year 2015, four-eighths;

628

(f) For tax year 2016, three-eighths;

629

(g) For tax year 2017, two-eighths;

630

(h) For tax year 2018, one-eighth;

631

(i) For tax years 2019 and thereafter, no fixed-rate payments	632
shall be made.	633

Any qualifying levy that is a fixed-rate levy that is not	634
applicable to a tax year after 2011 shall not qualify for any	635
reimbursement after the tax year to which it is last applicable.	636

(3) For fixed-sum levy losses determined under division (E)	637
of section 5751.20 of the Revised Code, payments shall be made in	638
the amount of one hundred per cent of the fixed-sum levy loss for	639
payments required to be made in 2006 and thereafter.	640

(4) For taxes levied within the ten-mill limitation for debt	641
purposes in tax year 2005, payments shall be made based on the	642
schedule in division (A)(1) of this section for each of the	643
calendar years 2006 through 2010. For each of the calendar years	644
2011 through 2017, the percentages for calendar year 2010 shall be	645
used, as long as the qualifying levy continues to be used for debt	646
purposes. If the purpose of such a qualifying levy is changed,	647
that levy becomes subject to the payment schedules in divisions	648
(A)(1)(a) to (h) of this section. No payments shall be made for	649
such levies after calendar year 2017equal to one-hundred per cent	650
of the loss computed as if the tax were a fixed-rate levy.	651

(B) Beginning in 2007, by the thirty-first day of January of	652
each year, the tax commissioner shall review the calculation	653
originally made under division (A) of this section of the	654
fixed-sum levy losses determined under division (E) of section	655
5751.20 of the Revised Code. If the commissioner determines that a	656
fixed-sum levy that had been scheduled to be reimbursed in the	657
current year has expired, a revised calculation for that and all	658
subsequent years shall be made.	659

(C) Payments to local taxing units required to be made under	660
division (A) of this section shall be paid from the local	661
government tangible property tax replacement fund to the county	662
undivided income tax fund in the proper county treasury. Beginning	663
in May 2006, one-seventh of the amount certified under that	664
division shall be paid by the last day of May each year, and	665
three-sevenths shall be paid by the last day of August and October	666
each year. Within forty-five days after receipt of such payments,	667
the county treasurer shall distribute amounts determined under	668
division (A) of this section to the proper local taxing unit as if	669
they had been levied and collected as taxes, and the local taxing	670
unit shall apportion the amounts so received among its funds in	671
the same proportions as if those amounts had been levied and	672
collected as taxes.	673

(D) For each of the fiscal years 2006 through 2019, ifIf the	674
total amount in the local government tangible property tax	675
replacement fund is insufficient to make all payments under	676
division (C) of this section at the times the payments are to be	677
made, the director of budget and management shall transfer from	678
the general revenue fund to the local government tangible property	679
tax replacement fund the difference between the total amount to be	680
paid and the amount in the local government tangible property tax	681
replacement fund. For each fiscal year after 2019, at the time	682
payments under division (A)(2) of this section are to be made, the	683
director of budget and management shall transfer from the general	684
revenue fund to the local government property tax replacement fund	685
the amount necessary to make such payments.	686

(E) On the fifteenth day of June of each year from 2006	687
through 2018beginning in 2006, the director of budget and	688
management may transfer any balance in the local government	689
tangible property tax replacement fund to the general revenue	690
fund.	691

(F) If all or a part of the territories of two or more local	692
taxing units are merged, or unincorporated territory of a township	693
is annexed by a municipal corporation, the tax commissioner shall	694
adjust the payments made under this section to each of the local	695
taxing units in proportion to the tax value loss apportioned to	696
the merged or annexed territory, or as otherwise provided by a	697
written agreement between the legislative authorities of the local	698
taxing units certified to the commissioner not later than the	699
first day of June of the calendar year in which the payment is to	700
be made.	701

Sec. 5751.23.  (A) As used in this section:

702

(1) "Administrative fees" means the dollar percentages	703
allowed by the county auditor for services or by the county	704
treasurer as fees, or paid to the credit of the real estate	705
assessment fund, under divisions (A) and (C) of section 319.54	706
and division (A) of section 321.26 of the Revised Code.	707

(2) "Administrative fee loss" means a county's loss of	708
administrative fees due to its tax value loss, determined as	709
follows:	710

(a) For purposes of the determination made under division (B)	711
of this section in the years 2006 through 2010, the administrative	712
fee loss shall be computed by multiplying the amounts determined	713
for all taxing districts in the county under divisions (D) and (E)	714
of section 5751.20 of the Revised Code by nine thousand six	715
hundred fifty-nine ten-thousandths of one per cent if total taxes	716
collected in the county in 2004 exceeded one hundred fifty million	717
dollars, or one and one thousand one hundred fifty-nine	718
ten-thousandths of one per cent if total taxes collected in the	719
county in 2004 were one hundred fifty million dollars or less;	720

(b) For purposes of the determination under division (B) of	721
this section in the years after 2010, the administrative fee	722
losses shall be determined by multiplying the administrative fee	723
losses calculated for 2010 by the fractions in divisions (A)(1)(b)	724
to (i) of section 5751.22 of the Revised Code.	725

(3) "Total taxes collected" means all money collected on any	726
tax duplicate of the county, other than the estate tax duplicates.	727
"Total taxes collected" does not include amounts received pursuant	728
to divisions (F) and (G) of section 321.24 or section 323.156 of	729
the Revised Code.	730

(B) Not later than December 31, 2005, the tax commissioner	731
shall certify to each county auditor the tax levy losses	732
calculated under divisions (D) and (E) of section 5751.20 of the	733
Revised Code for each school district, joint vocational school	734
district, and local taxing unit in the county. Not later than the	735
thirty-first day of January of 2006 through 2017, the county	736
auditor shall determine the administrative fee loss for the county	737
and apportion that loss ratably among the school districts, joint	738
vocational school districts, and local taxing units on the basis	739
of the tax levy losses certified under this division.	740

(C) On or before each of the days prescribed for the	741
settlements under divisions (A) and (C) of section 321.24 of the	742
Revised Code in the years 2006 through 2017, the county treasurer	743
shall deduct one-half of the amount apportioned to each school	744
district, joint vocational school district, and local taxing unit	745
from the portions of revenue payable to them.	746

(D) On or before each of the days prescribed for settlements	747
under divisions (A) and (C) of section 321.24 of the Revised Code	748
in the years 2006 through 2017, the county auditor shall cause to	749
be deposited an amount equal to one-half of the amount of the	750
administrative fee loss in the same funds as if allowed as	751
administrative fees.	752

Section 2. That existing sections 5751.20, 5751.21, 5751.22,	753
and 5751.23 of the Revised Code are hereby repealed.	754