Bill Text: OH HB117 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To require 30% of commercial activity tax revenue to be used indefinitely for local government purposes.

Spectrum: Partisan Bill (Republican 13-0)

Status: (Introduced - Dead) 2009-04-01 - To Ways & Means [HB117 Detail]

Download: Ohio-2009-HB117-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 117

Representative Jones 

Cosponsors: Representatives Boose, Combs, Evans, Gardner, Grossman, Hall, Hite, Morgan, Ruhl, Uecker, Wagner, Zehringer 

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A BILL

To amend sections 5751.20 and 5751.22 of the Revised

1

Code to require 30% of commercial activity tax

2

revenue to be used indefinitely for local

3

government purposes.

4

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

Section 1. That sections 5751.20 and 5751.22 of the Revised	5
Code be amended to read as follows:	6

Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of	7
the Revised Code:	8

(1) "School district," "joint vocational school district,"	9
"local taxing unit," "recognized valuation," "fixed-rate levy,"	10
and "fixed-sum levy" have the same meanings as used in section	11
5727.84 of the Revised Code.	12

(2) "State education aid" for a school district means the sum	13
of state aid amounts computed for the district under division (A)	14
of section 3317.022 of the Revised Code, including the amounts	15
calculated under sections 3317.029 and 3317.0217 of the Revised	16
Code; divisions (C)(1), (C)(4), (D), (E), and (F) of section	17
3317.022; divisions (B), (C), and (D) of section 3317.023;	18
divisions (L) and (N) of section 3317.024; section 3317.0216; and	19
any unit payments for gifted student services paid under sections	20
3317.05, 3317.052, and 3317.053 of the Revised Code; except that,	21
for fiscal years 2008 and 2009, the amount computed for the	22
district under Section 269.20.80 of H.B. 119 of the 127th general	23
assembly and as that section subsequently may be amended shall be	24
substituted for the amount computed under division (D) of section	25
3317.022 of the Revised Code, and the amount computed under	26
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	27
that section subsequently may be amended shall be included.	28

(3) "State education aid" for a joint vocational school	29
district means the sum of the state aid computed for the district	30
under division (N) of section 3317.024 and section 3317.16 of the	31
Revised Code, except that, for fiscal years 2008 and 2009, the	32
amount computed under Section 269.30.80 of H.B. 119 of the 127th	33
general assembly and as that section subsequently may be amended	34
shall be included.	35

(4) "State education aid offset" means the amount determined	36
for each school district or joint vocational school district under	37
division (A)(1) of section 5751.21 of the Revised Code.	38

(5) "Machinery and equipment property tax value loss" means	39
the amount determined under division (C)(1) of this section.	40

(6) "Inventory property tax value loss" means the amount	41
determined under division (C)(2) of this section.	42

(7) "Furniture and fixtures property tax value loss" means	43
the amount determined under division (C)(3) of this section.	44

(8) "Machinery and equipment fixed-rate levy loss" means the	45
amount determined under division (D)(1) of this section.	46

(9) "Inventory fixed-rate levy loss" means the amount	47
determined under division (D)(2) of this section.	48

(10) "Furniture and fixtures fixed-rate levy loss" means the	49
amount determined under division (D)(3) of this section.	50

(11) "Total fixed-rate levy loss" means the sum of the	51
machinery and equipment fixed-rate levy loss, the inventory	52
fixed-rate levy loss, the furniture and fixtures fixed-rate levy	53
loss, and the telephone company fixed-rate levy loss.	54

(12) "Fixed-sum levy loss" means the amount determined under	55
division (E) of this section.	56

(13) "Machinery and equipment" means personal property	57
subject to the assessment rate specified in division (F) of	58
section 5711.22 of the Revised Code.	59

(14) "Inventory" means personal property subject to the	60
assessment rate specified in division (E) of section 5711.22 of	61
the Revised Code.	62

(15) "Furniture and fixtures" means personal property	63
subject to the assessment rate specified in division (G) of	64
section 5711.22 of the Revised Code.	65

(16) "Qualifying levies" are levies in effect for tax year	66
2004 or applicable to tax year 2005 or approved at an election	67
conducted before September 1, 2005. For the purpose of	68
determining the rate of a qualifying levy authorized by section	69
5705.212 or 5705.213 of the Revised Code, the rate shall be the	70
rate that would be in effect for tax year 2010.	71

(17) "Telephone property" means tangible personal property	72
of a telephone, telegraph, or interexchange telecommunications	73
company subject to an assessment rate specified in section	74
5727.111 of the Revised Code in tax year 2004.	75

(18) "Telephone property tax value loss" means the amount	76
determined under division (C)(4) of this section.	77

(19) "Telephone property fixed-rate levy loss" means the	78
amount determined under division (D)(4) of this section.	79

(B) The commercial activities tax receipts fund is hereby	80
created in the state treasury and shall consist of money arising	81
from the tax imposed under this chapter. All money in that fund	82
shall be credited for each fiscal year in the following	83
percentages to the general revenue fund, to the school district	84
tangible property tax replacement fund, which is hereby created in	85
the state treasury for the purpose of making the payments	86
described in section 5751.21 of the Revised Code, and to the local	87
government tangible property tax replacement fund, which is hereby	88
created in the state treasury for the purpose of making the	89
payments described in section 5751.22 of the Revised Code, in the	90
following percentages:	91

Fiscal year	General Revenue Fund	School District Tangible Property Tax Replacement Fund	Local Government Tangible Property Tax Replacement Fund		92
2006	67.7%	22.6%	9.7%		93
2007	0%	70.0%	30.0%		94
2008	0%	70.0%	30.0%		95
2009	0%	70.0%	30.0%		96
2010	0%	70.0%	30.0%		97
2011	0%	70.0%	30.0%		98
2012	5.3%	70.0%	24.7%		99
2013	10.6%	70.0%	19.4%		100
2014	14.1%	70.0%	15.9%		101
2015	17.6%	70.0%	12.4%		102
2016	21.1%	70.0%	8.9%		103
2017	24.6%	70.0%	5.4%		104
2018	28.1%	70.0%	1.9%		105
2019 2011 and thereafter	30 0%	70%	0 30%		106

(C) Not later than September 15, 2005, the tax commissioner	107
shall determine for each school district, joint vocational school	108
district, and local taxing unit its machinery and equipment,	109
inventory property, furniture and fixtures property, and telephone	110
property tax value losses, which are the applicable amounts	111
described in divisions (C)(1), (2), (3), and (4) of this section,	112
except as provided in division (C)(5) of this section:	113

(1) Machinery and equipment property tax value loss is the	114
taxable value of machinery and equipment property as reported by	115
taxpayers for tax year 2004 multiplied by:	116

(a) For tax year 2006, thirty-three and eight-tenths per	117
cent;	118

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

119

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

120

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

121

(2) Inventory property tax value loss is the taxable value of	122
inventory property as reported by taxpayers for tax year 2004	123
multiplied by:	124

(a) For tax year 2006, a fraction, the numerator of which is	125
five and three-fourths and the denominator of which is	126
twenty-three;	127

(b) For tax year 2007, a fraction, the numerator of which is	128
nine and one-half and the denominator of which is twenty-three;	129

(c) For tax year 2008, a fraction, the numerator of which is	130
thirteen and one-fourth and the denominator of which is	131
twenty-three;	132

(d) For tax year 2009 and thereafter a fraction, the	133
numerator of which is seventeen and the denominator of which is	134
twenty-three.	135

(3) Furniture and fixtures property tax value loss is the	136
taxable value of furniture and fixture property as reported by	137
taxpayers for tax year 2004 multiplied by:	138

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

139

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

140

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

141

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

142

The taxable value of property reported by taxpayers used in	143
divisions (C)(1), (2), and (3) of this section shall be such	144
values as determined to be final by the tax commissioner as of	145
August 31, 2005. Such determinations shall be final except for any	146
correction of a clerical error that was made prior to August 31,	147
2005, by the tax commissioner.	148

(4) Telephone property tax value loss is the taxable value of	149
telephone property as taxpayers would have reported that property	150
for tax year 2004 if the assessment rate for all telephone	151
property for that year were twenty-five per cent, multiplied by:	152

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

153

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

154

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

155

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

156

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

157

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

158

(5) Division (C)(5) of this section applies to any school	159
district, joint vocational school district, or local taxing unit	160
in a county in which is located a facility currently or formerly	161
devoted to the enrichment or commercialization of uranium or	162
uranium products, and for which the total taxable value of	163
property listed on the general tax list of personal property for	164
any tax year from tax year 2001 to tax year 2004 was fifty per	165
cent or less of the taxable value of such property listed on the	166
general tax list of personal property for the next preceding tax	167
year.	168

In computing the fixed-rate levy losses under divisions	169
(D)(1), (2), and (3) of this section for any school district,	170
joint vocational school district, or local taxing unit to which	171
division (C)(5) of this section applies, the taxable value of such	172
property as listed on the general tax list of personal property	173
for tax year 2000 shall be substituted for the taxable value of	174
such property as reported by taxpayers for tax year 2004, in the	175
taxing district containing the uranium facility, if the taxable	176
value listed for tax year 2000 is greater than the taxable value	177
reported by taxpayers for tax year 2004. For the purpose of making	178
the computations under divisions (D)(1), (2), and (3) of this	179
section, the tax year 2000 valuation is to be allocated to	180
machinery and equipment, inventory, and furniture and fixtures	181
property in the same proportions as the tax year 2004 values. For	182
the purpose of the calculations in division (A) of section 5751.21	183
of the Revised Code, the tax year 2004 taxable values shall be	184
used.	185

To facilitate the calculations required under division (C) of	186
this section, the county auditor, upon request from the tax	187
commissioner, shall provide by August 1, 2005, the values of	188
machinery and equipment, inventory, and furniture and fixtures for	189
all single-county personal property taxpayers for tax year 2004.	190

(D) Not later than September 15, 2005, the tax commissioner	191
shall determine for each tax year from 2006 through 2009 for each	192
school district, joint vocational school district, and local	193
taxing unit its machinery and equipment, inventory, and furniture	194
and fixtures fixed-rate levy losses, and for each tax year from	195
2006 through 2011 its telephone property fixed-rate levy loss,	196
which are the applicable amounts described in divisions (D)(1),	197
(2), (3), and (4) of this section:	198

(1) The machinery and equipment fixed-rate levy loss is the	199
machinery and equipment property tax value loss multiplied by the	200
sum of the tax rates of fixed-rate qualifying levies.	201

(2) The inventory fixed-rate loss is the inventory property	202
tax value loss multiplied by the sum of the tax rates of	203
fixed-rate qualifying levies.	204

(3) The furniture and fixtures fixed-rate levy loss is the	205
furniture and fixture property tax value loss multiplied by the	206
sum of the tax rates of fixed-rate qualifying levies.	207

(4) The telephone property fixed-rate levy loss is the	208
telephone property tax value loss multiplied by the sum of the tax	209
rates of fixed-rate qualifying levies.	210

(E) Not later than September 15, 2005, the tax commissioner	211
shall determine for each school district, joint vocational school	212
district, and local taxing unit its fixed-sum levy loss. The	213
fixed-sum levy loss is the amount obtained by subtracting the	214
amount described in division (E)(2) of this section from the	215
amount described in division (E)(1) of this section:	216

(1) The sum of the machinery and equipment property tax value	217
loss, the inventory property tax value loss, and the furniture and	218
fixtures property tax value loss, and, for 2008 through 2017 the	219
telephone property tax value loss of the district or unit	220
multiplied by the sum of the fixed-sum tax rates of qualifying	221
levies. For 2006 through 2010, this computation shall include all	222
qualifying levies remaining in effect for the current tax year and	223
any school district levies imposed under section 5705.194 or	224
5705.213 of the Revised Code that are qualifying levies not	225
remaining in effect for the current year. For 2011 through 2017	226
in the case of school district levies imposed under section	227
5705.194 or 5705.213 of the Revised Code and for all years after	228
2010 in the case of other fixed-sum levies, this computation	229
shall include only qualifying levies remaining in effect for the	230
current year. For purposes of this computation, a qualifying	231
school district levy imposed under section 5705.194 or 5705.213	232
of the Revised Code remains in effect in a year after 2010 only	233
if, for that year, the board of education levies a school	234
district levy imposed under section 5705.194 or 5705.213 of the	235
Revised Code for an annual sum at least equal to the annual sum	236
levied by the board in tax year 2004 less the amount of the	237
payment certified under this division for 2006.	238

(2) The total taxable value in tax year 2004 less the sum of	239
the machinery and equipment, inventory, furniture and fixtures,	240
and telephone property tax value losses in each school district,	241
joint vocational school district, and local taxing unit multiplied	242
by one-half of one mill per dollar.	243

(3) For the calculations in divisions (E)(1) and (2) of this	244
section, the tax value losses are those that would be calculated	245
for tax year 2009 under divisions (C)(1), (2), and (3) of this	246
section and for tax year 2011 under division (C)(4) of this	247
section.	248

(4) To facilitate the calculation under divisions (D) and (E)	249
of this section, not later than September 1, 2005, any school	250
district, joint vocational school district, or local taxing unit	251
that has a qualifying levy that was approved at an election	252
conducted during 2005 before September 1, 2005, shall certify to	253
the tax commissioner a copy of the county auditor's certificate of	254
estimated property tax millage for such levy as required under	255
division (B) of section 5705.03 of the Revised Code, which is the	256
rate that shall be used in the calculations under such divisions.	257

If the amount determined under division (E) of this section	258
for any school district, joint vocational school district, or	259
local taxing unit is greater than zero, that amount shall equal	260
the reimbursement to be paid pursuant to division (E) of section	261
5751.21 or division (A)(3) of section 5751.22 of the Revised	262
Code, and the one-half of one mill that is subtracted under	263
division (E)(2) of this section shall be apportioned among all	264
contributing fixed-sum levies in the proportion that each levy	265
bears to the sum of all fixed-sum levies within each school	266
district, joint vocational school district, or local taxing unit.	267

(F) Not later than October 1, 2005, the tax commissioner	268
shall certify to the department of education for every school	269
district and joint vocational school district the machinery and	270
equipment, inventory, furniture and fixtures, and telephone	271
property tax value losses determined under division (C) of this	272
section, the machinery and equipment, inventory, furniture and	273
fixtures, and telephone fixed-rate levy losses determined under	274
division (D) of this section, and the fixed-sum levy losses	275
calculated under division (E) of this section. The calculations	276
under divisions (D) and (E) of this section shall separately	277
display the levy loss for each levy eligible for reimbursement.	278

(G) Not later than October 1, 2005, the tax commissioner	279
shall certify the amount of the fixed-sum levy losses to the	280
county auditor of each county in which a school district, joint	281
vocational school district, or local taxing unit with a fixed-sum	282
levy loss reimbursement has territory.	283

Sec. 5751.22.  (A) Not later than January 1, 2006, the tax	284
commissioner shall compute the payments to be made to each local	285
taxing unit for each year according to divisions (A)(1), (2), (3),	286
and (4) of this section, and shall distribute the payments in the	287
manner prescribed by division (C) of this section. The calculation	288
of the fixed-sum levy loss shall cover a time period sufficient to	289
include all fixed-sum levies for which the commissioner	290
determined, pursuant to division (E) of section 5751.20 of the	291
Revised Code, that a fixed-sum levy loss is to be reimbursed.	292

(1) Except as provided in division (A)(4) of this section,	293
for machinery and equipment, inventory, and furniture and fixtures	294
fixed-rate levy losses determined under division (D) of section	295
5751.20 of the Revised Code, payments shall be made in an amount	296
equal to each of those losses multiplied by the following:	297

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

298

(b) For tax year 2011, a fraction, the numerator of which is	299
fourteen and the denominator of which is seventeen;	300

(c) For tax year 2012, a fraction, the numerator of which is	301
eleven and the denominator of which is seventeen;	302

(d) For tax year 2013, a fraction, the numerator of which is	303
nine and the denominator of which is seventeen;	304

(e) For tax year 2014, a fraction, the numerator of which is	305
seven and the denominator of which is seventeen;	306

(f) For tax year 2015, a fraction, the numerator of which is	307
five and the denominator of which is seventeen;	308

(g) For tax year 2016, a fraction, the numerator of which is	309
three and the denominator of which is seventeen;	310

(h) For tax year 2017, a fraction, the numerator of which is	311
one and the denominator of which is seventeen;	312

(i) For tax years 2018 and thereafter, no fixed-rate payments	313
shall be made.	314

Any qualifying levy that is a fixed-rate levy that is not	315
applicable to a tax year after 2010 shall not qualify for any	316
reimbursement after the tax year to which it is last applicable.	317

(2) Except as provided in division (A)(4) of this section,	318
for telephone property fixed-rate levy losses determined under	319
division (D)(4) of section 5751.20 of the Revised Code, payments	320
shall be made in an amount equal to each of those losses	321
multiplied by the following:	322

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

323

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

324

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

325

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

326

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

327

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

328

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

329

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

330

(i) For tax years 2019 and thereafter, no fixed-rate payments	331
shall be made.	332

Any qualifying levy that is a fixed-rate levy that is not	333
applicable to a tax year after 2011 shall not qualify for any	334
reimbursement after the tax year to which it is last applicable.	335

(3) For fixed-sum levy losses determined under division (E)	336
of section 5751.20 of the Revised Code, payments shall be made in	337
the amount of one hundred per cent of the fixed-sum levy loss for	338
payments required to be made in 2006 and thereafter.	339

(4) For taxes levied within the ten-mill limitation for debt	340
purposes in tax year 2005, payments shall be made based on the	341
schedule in division (A)(1) of this section for each of the	342
calendar years 2006 through 2010. For each of the calendar years	343
2011 through 2017, the percentages for calendar year 2010 shall be	344
used, as long as the qualifying levy continues to be used for debt	345
purposes. If the purpose of such a qualifying levy is changed,	346
that levy becomes subject to the payment schedules in divisions	347
(A)(1)(a) to (h) of this section. No payments shall be made for	348
such levies after calendar year 2017.	349

(B) Beginning in 2007, by the thirty-first day of January of	350
each year, the tax commissioner shall review the calculation	351
originally made under division (A) of this section of the	352
fixed-sum levy losses determined under division (E) of section	353
5751.20 of the Revised Code. If the commissioner determines that a	354
fixed-sum levy that had been scheduled to be reimbursed in the	355
current year has expired, a revised calculation for that and all	356
subsequent years shall be made.	357

(C) Payments to local taxing units required to be made under	358
division (A) of this section shall be paid from the local	359
government tangible property tax replacement fund to the county	360
undivided income tax fund in the proper county treasury. Beginning	361
in May 2006, one-seventh of the amount certified under that	362
division shall be paid by the last day of May each year, and	363
three-sevenths shall be paid by the last day of August and October	364
each year. Within forty-five days after receipt of such payments,	365
the county treasurer shall distribute amounts determined under	366
division (A) of this section to the proper local taxing unit as if	367
they had been levied and collected as taxes, and the local taxing	368
unit shall apportion the amounts so received among its funds in	369
the same proportions as if those amounts had been levied and	370
collected as taxes.	371

(D) For each of the fiscal years 2006 through 2019, if the	372
total amount in the local government tangible property tax	373
replacement fund is insufficient to make all payments under	374
division (C) of this section at the times the payments are to be	375
made, the director of budget and management shall transfer from	376
the general revenue fund to the local government tangible property	377
tax replacement fund the difference between the total amount to be	378
paid and the amount in the local government tangible property tax	379
replacement fund. For each fiscal year after 2019, at the time	380
payments under division (A)(2) of this section are to be made, the	381
director of budget and management shall transfer from the general	382
revenue fund to the local government property tax replacement fund	383
the amount necessary to make such payments.	384

(E) On the fifteenth day of June of each year from 2006	385
through 20182011, the director of budget and management may	386
transfer any balance in the local government tangible property tax	387
replacement fund to the general revenue fund. At the end of each	388
fiscal year beginning with fiscal year 2012 and ending with	389
fiscal year 2018, any balance in the local government tangible	390
property tax replacement fund shall remain in the fund to be used	391
in future fiscal years for local government purposes. In each	392
fiscal year beginning with fiscal year 2019, all amounts credited	393
to the local government tangible property tax replacement fund	394
shall be appropriated for local government purposes. As used in	395
this division, "local government purposes" means providing	396
monetary assistance to local taxing units including, but not	397
limited to, supplementing payments from the local government fund	398
and continuing the payments provided in divisions (A) and (C) of	399
this section.	400

(F) If all or a part of the territories of two or more local	401
taxing units are merged, or unincorporated territory of a township	402
is annexed by a municipal corporation, the tax commissioner shall	403
adjust the payments made under this section to each of the local	404
taxing units in proportion to the tax value loss apportioned to	405
the merged or annexed territory, or as otherwise provided by a	406
written agreement between the legislative authorities of the local	407
taxing units certified to the commissioner not later than the	408
first day of June of the calendar year in which the payment is to	409
be made.	410

Section 2.  That existing sections 5751.20 and 5751.22 of the	411
Revised Code are hereby repealed.	412