Bill Text: OH SB376 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To revise the law governing classroom facilities assistance programs and to restore the application of the 10% and 2.5% property tax rollbacks to school district tax levies approved on or after the effective date of Am. Sub. H.B. 59 of the 130th General Assembly.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-10-28 - To Ways & Means [SB376 Detail]

Download: Ohio-2013-SB376-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 376

Senator Schiavoni 

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A BILL

To amend sections 319.302, 3318.032, and 3318.37 of

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the Revised Code to revise the law governing

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classroom facilities assistance programs and to

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restore the application of the 10% and 2.5%

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property tax rollbacks to school district tax

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levies approved on or after the effective date of

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Am. Sub. H.B. 59 of the 130th General Assembly.

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

Section 1. That sections 319.302, 3318.032, and 3318.37 of	8
the Revised Code be amended to read as follows:	9

Sec. 319.302. (A)(1) Real property that is not intended	10
primarily for use in a business activity shall qualify for a	11
partial exemption from real property taxation. For purposes of	12
this partial exemption, "business activity" includes all uses of	13
real property, except farming; leasing property for farming;	14
occupying or holding property improved with single-family,	15
two-family, or three-family dwellings; leasing property improved	16
with single-family, two-family, or three-family dwellings; or	17
holding vacant land that the county auditor determines will be	18
used for farming or to develop single-family, two-family, or	19
three-family dwellings. For purposes of this partial exemption,	20
"farming" does not include land used for the commercial production	21
of timber that is receiving the tax benefit under section 5713.23	22
or 5713.31 of the Revised Code and all improvements connected with	23
such commercial production of timber.	24

(2) Each year, the county auditor shall review each parcel of	25
real property to determine whether it qualifies for the partial	26
exemption provided for by this section as of the first day of	27
January of the current tax year.	28

(B) After complying with section 319.301 of the Revised Code,	29
the county auditor shall reduce the remaining sums to be levied by	30
qualifying levies against each parcel of real property that is	31
listed on the general tax list and duplicate of real and public	32
utility property for the current tax year and that qualifies for	33
partial exemption under division (A) of this section, and against	34
each manufactured and mobile home that is taxed pursuant to	35
division (D)(2) of section 4503.06 of the Revised Code and that is	36
on the manufactured home tax list for the current tax year, by ten	37
per cent, to provide a partial exemption for that parcel or home.	38
For the purposes of this division:	39

(1) "Qualifying levy" means a tax levied outside the ten-mill	40
limitation by a school district; a levy proposed by a taxing	41
authority other than a school district and approved at an election	42
held before September 29, 2013; a levy within the ten-mill	43
limitation; a levy provided for by the charter of a municipal	44
corporation that was levied on the tax list for tax year 2013; a	45
subsequent renewal of any such levy; or a subsequent substitute	46
for such a levy under section 5705.199 of the Revised Code.	47

(2) "Qualifying levy" does not include any replacement	48
imposed under section 5705.192 of the Revised Code of any levy	49
described in division (B)(1) of this section except a levy outside	50
the ten-mill limitation imposed by a school district.	51

(3) "School district" means a city, local, exempted village,	52
cooperative education, or joint vocational school district.	53

(C) Except as otherwise provided in sections 323.152,	54
323.158, 505.06, and 715.263 of the Revised Code, the amount of	55
the taxes remaining after any such reduction shall be the real and	56
public utility property taxes charged and payable on each parcel	57
of real property, including property that does not qualify for	58
partial exemption under division (A) of this section, and the	59
manufactured home tax charged and payable on each manufactured or	60
mobile home, and shall be the amounts certified to the county	61
treasurer for collection. Upon receipt of the real and public	62
utility property tax duplicate, the treasurer shall certify to the	63
tax commissioner the total amount by which the real property taxes	64
were reduced under this section, as shown on the duplicate. Such	65
reduction shall not directly or indirectly affect the	66
determination of the principal amount of notes that may be issued	67
in anticipation of any tax levies or the amount of bonds or notes	68
for any planned improvements. If after application of sections	69
5705.31 and 5705.32 of the Revised Code and other applicable	70
provisions of law, including divisions (F) and (I) of section	71
321.24 of the Revised Code, there would be insufficient funds for	72
payment of debt charges on bonds or notes payable from taxes	73
reduced by this section, the reduction of taxes provided for in	74
this section shall be adjusted to the extent necessary to provide	75
funds from such taxes.	76

(D) The tax commissioner may adopt rules governing the	77
administration of the partial exemption provided for by this	78
section.	79

(E) The determination of whether property qualifies for	80
partial exemption under division (A) of this section is solely for	81
the purpose of allowing the partial exemption under division (B)	82
of this section.	83

Sec. 3318.032.  (A) Except as otherwise provided in divisions	84
(C) and (D) of this section, the portion of the basic project cost	85
supplied by the school district shall be the greater of:	86

(1) The required percentage of the basic project costs;

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(2)(a) For all districts except a district that opts to	88
divide its entire classroom facilities needs into segments to be	89
completed separately as authorized by section 3318.034 of the	90
Revised Code, an amount necessary to raise the school district's	91
net bonded indebtedness, as of the date the controlling board	92
approved the project, to within five thousand dollars of the	93
required level of indebtedness;	94

(b) For a district that opts to divide its entire classroom	95
facilities needs into segments to be completed separately as	96
authorized by section 3318.034 of the Revised Code, an amount	97
necessary to raise the school district's net bonded indebtedness,	98
as of the date the controlling board approved the project, to	99
within five thousand dollars of the following:	100

The required level of indebtedness X (the basic	101

project cost of the segment as approved	102

by the controlling board / the estimated basic	103

project cost of the district's entire classroom facilities	104

needs as determined jointly by the staff of the Ohio	105

school facilities commission and the district)	106

(B) The amount of the district's share determined under this	107
section shall be calculated only as of the date the controlling	108
board approved the project, and that amount applies throughout the	109
thirteen-month period permitted under section 3318.05 of the	110
Revised Code for the district's electors to approve the	111
propositions described in that section. If the amount reserved and	112
encumbered for a project is released because the electors do not	113
approve those propositions within that period, and the school	114
district later receives the controlling board's approval for the	115
project, subject to a new project scope and estimated costs under	116
section 3318.054 of the Revised Code, the district's portion shall	117
be recalculated in accordance with this section as of the date of	118
the controlling board's subsequent approval.	119

(C) At no time shall a school district's portion of the basic	120
project cost be greater than ninety-fiveseventy-five per cent of	121
the total basic project cost.	122

(D) If the controlling board approves a project under	123
sections 3318.01 to 3318.20 of the Revised Code for a school	124
district that previously received assistance under those sections	125
or section 3318.37 of the Revised Code within the twenty-year	126
period prior to the date on which the controlling board approves	127
the new project, the district's portion of the basic project cost	128
for the new project shall be the lesser of the following:	129

(1) The portion calculated under division (A) of this	130
section;	131

(2) The greater of the following:

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(a) The required percentage of the basic project costs for	133
the new project;	134

(b) The percentage of the basic project cost paid by the	135
district for the previous project.	136

Sec. 3318.37.  (A)(1) As used in this section:

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(a) "Full maintenance amount" has the same meaning as in	138
section 3318.034 of the Revised Code.	139

(b) A "school district with an exceptional need for immediate	140
classroom facilities assistance" means a school district with an	141
exceptional need for new facilities in order to protect the health	142
and safety of all or a portion of its students.	143

(c) "Basic project cost" has the same meaning as in section	144
3318.01 of the Revised Code.	145

(2) No school district that participates in the school	146
building assistance expedited local partnership program under	147
section 3318.36 of the Revised Code shall receive assistance under	148
the program established under this section unless the following	149
conditions are satisfied:	150

(a) The district board adopted a resolution certifying its	151
intent to participate in the school building assistance expedited	152
local partnership program under section 3318.36 of the Revised	153
Code prior to September 14, 2000.	154

(b) The district was selected by the Ohio school facilities	155
commission for participation in the school building assistance	156
expedited local partnership program under section 3318.36 of the	157
Revised Code in the manner prescribed by the commission under that	158
section as it existed prior to September 14, 2000.	159

(B)(1) There is hereby established the exceptional needs	160
school facilities assistance program. Under the program, the Ohio	161
school facilities commission may set aside from the moneys	162
annually appropriated to it for classroom facilities assistance	163
projects up to twenty-five per cent for assistance to school	164
districts with exceptional needs for immediate classroom	165
facilities assistance.	166

(2)(a) After consulting with education and construction	167
experts, the commission shall adopt guidelines for identifying	168
school districts with an exceptional need for immediate classroom	169
facilities assistance.	170

(b) The guidelines shall include application forms and	171
instructions for school districts to use in applying for	172
assistance under this section.	173

(3) The commission shall evaluate the classroom facilities,	174
and the need for replacement classroom facilities from the	175
applications received under this section. The commission,	176
utilizing the guidelines adopted under division (B)(2)(a) of this	177
section, shall prioritize the school districts to be assessed.	178

Notwithstanding section 3318.02 of the Revised Code, the	179
commission may conduct on-site evaluation of the school districts	180
prioritized under this section and approve and award funds until	181
such time as all funds set aside under division (B)(1) of this	182
section have been encumbered. However, the commission need not	183
conduct the evaluation of facilities if the commission determines	184
that a district's assessment conducted under section 3318.36 of	185
the Revised Code is sufficient for purposes of this section.	186

(4) Notwithstanding division (A) of section 3318.05 of the	187
Revised Code, the school district's portion of the basic project	188
cost under this section shall be the "required percentage of the	189
basic project costs," as defined in division (K) of section	190
3318.01 of the Revised Codefifty per cent.	191

(5) Except as otherwise specified in this section, any	192
project undertaken with assistance under this section shall comply	193
with all provisions of sections 3318.01 to 3318.20 of the Revised	194
Code. A school district may receive assistance under sections	195
3318.01 to 3318.20 of the Revised Code for the remainder of the	196
district's classroom facilities needs as assessed under this	197
section when the district is eligible for such assistance pursuant	198
to section 3318.02 of the Revised Code, but any classroom facility	199
constructed with assistance under this section shall not be	200
included in a district's project at that time unless the	201
commission determines the district has experienced the increased	202
enrollment specified in division (B)(1) of section 3318.04 of the	203
Revised Code.	204

(C) No school district shall receive assistance under this	205
section for a classroom facility that has been included in the	206
discrete part of the district's classroom facilities needs	207
identified and addressed in the district's project pursuant to an	208
agreement entered into under section 3318.36 of the Revised Code,	209
unless the district's entire classroom facilities plan consists of	210
only a single building designed to house grades kindergarten	211
through twelve.	212

(D)(1) When undertaking a project under this section, a	213
school district may elect to prorate its full maintenance amount	214
by setting aside for maintenance the amount calculated under	215
division (D)(2) of this section to maintain the classroom	216
facilities acquired under the project, if the district will use	217
one or more of the alternative methods authorized in sections	218
3318.051, 3318.052, and 3318.084 of the Revised Code to generate	219
the entire amount calculated under that division. If the district	220
so elects, the commission and the district shall include in the	221
agreement entered into under section 3318.08 of the Revised Code a	222
statement specifying that the district will use the amount	223
calculated under that division only to maintain the classroom	224
facilities acquired under the project under this section.	225

(2) The commission shall calculate the amount for a school	226
district to maintain the classroom facilities acquired under a	227
project under this section as follows:	228

The full maintenance amount X (the school district's portion	229
of the basic project cost under this section / the school	230
district's portion of the basic project cost for the district's	231
entire classroom facilities needs, as determined jointly by the	232
staff of the commission and the district)	233

(3) A school district may elect to prorate its full	234
maintenance amount for any number of projects under this section,	235
provided the district will use one or more of the alternative	236
methods authorized in sections 3318.051, 3318.052, and 3318.084 of	237
the Revised Code to generate the entire amount calculated under	238
division (D)(2) of this section to maintain the classroom	239
facilities acquired under each project for which it so elects. If	240
the district cannot use one or more of those alternative methods	241
to generate the entire amount calculated under that division, the	242
district shall levy the tax described in division (B) of section	243
3318.05 of the Revised Code or an extension of that tax under	244
section 3318.061 of the Revised Code in an amount necessary to	245
generate the remainder of its full maintenance amount. The	246
commission shall calculate the remainder of the district's full	247
maintenance amount as follows:	248

The full maintenance amount - the sum of the amounts	249
calculated for the district under division (D)(2) of this section	250
for each of the district's prior projects under this section	251

(4) In no case shall the sum of the amounts calculated for a	252
school district's maintenance of classroom facilities under	253
divisions (D)(2) and (3) of this section exceed the amount that	254
would have been required for maintenance if the district had	255
elected to meet its entire classroom facilities needs with a	256
project under sections 3318.01 to 3318.20 of the Revised Code and	257
had not undertaken one or more projects under this section.	258

(5) If a school district commenced a project under this	259
section prior to the effective date of this amendmentSeptember	260
10, 2012, but has not completed that project, and has not levied	261
the tax described in division (B) of section 3318.05 of the	262
Revised Code or an extension of that tax under section 3318.061 of	263
the Revised Code, the district may request approval from the	264
commission to prorate its full maintenance amount in accordance	265
with divisions (D)(1) to (4) of this section. If the commission	266
approves the request, the commission and the district shall amend	267
the agreement entered into under section 3318.08 of the Revised	268
Code to reflect the change.	269

(E) No district shall be prohibited from receiving assistance	270
under this section or section 3318.371 of the Revised Code because	271
it elected not to receive funding under sections 3318.01 to	272
3318.20 of the Revised Code or because the electors of the	273
district failed to approve the required levy for the district to	274
receive funding under sections 3318.01 to 3318.20 of the Revised	275
Code.	276

Section 2. That existing sections 319.302, 3318.032, and	277
3318.37 of the Revised Code are hereby repealed.	278

Section 3. Section 3318.37 of the Revised Code is presented	279
in this act as a composite of the section as amended by both Am.	280
Sub. H.B. 487 and Am. Sub. S.B. 316 of the 129th General Assembly.	281
The General Assembly, applying the principle stated in division	282
(B) of section 1.52 of the Revised Code that amendments are to be	283
harmonized if reasonably capable of simultaneous operation, finds	284
that the composite is the resulting version of the section in	285
effect prior to the effective date of the section as presented in	286
this act.	287