Bill Text: OH HB571 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To authorize subdivisions to levy a fixed-sum emergency property tax for police, fire, or emergency medical services purposes.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-05-27 - To Ways and Means [HB571 Detail]

Download: Ohio-2013-HB571-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 571

Representative Rogers 

Cosponsor: Representative Hagan, R. 

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A BILL

To amend sections 9.65, 319.301, 505.43, 505.51,

1

742.33, 742.34, and 5705.26 and to enact section

2

5705.73 of the Revised Code to authorize

3

subdivisions to levy a fixed-sum emergency

4

property tax for police, fire, or emergency

5

medical services purposes.

6

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

Section 1. That sections 9.65, 319.301, 505.43, 505.51,	7
742.33, 742.34, and 5705.26 be amended and section 5705.73 of the	8
Revised Code be enacted to read as follows:	9

Sec. 9.65.  (A) A board of township trustees, a board of fire	10
district trustees of a joint fire district, or the legislative	11
authority of a municipal corporation may establish, by resolution	12
or ordinance, as appropriate, an annuity program for the volunteer	13
fire fighters serving the political subdivision, including those	14
affiliated with a private entity that provides fire-fighting or	15
emergency medical services. The program may permit the board or	16
the legislative authority to contract for, purchase, or otherwise	17
procure from an insurer or insurers licensed to do business by	18
this state an annuity for such fire fighters. The program may also	19
permit the board or the legislative authority at any time to	20
cancel or otherwise terminate an annuity with any particular	21
insurer or insurers. The board or the legislative authority may	22
pay all or any portion of the cost, premium, or charge of the	23
annuity. The board or the legislative authority may create a fund	24
in the treasury of the township, the joint fire district, or the	25
municipal corporation, as appropriate, for the annuity program.	26
The resolution or ordinance creating the program shall include a	27
plan to assure the proper administration and operation of the	28
program. The plan shall include, but not be limited to, all of the	29
following:	30

(1) The requirements a person must meet in order to be	31
eligible to participate in the program;	32

(2) The requirements an eligible person must meet annually in	33
order to participate in the program;	34

(3) A requirement that an audit of the accounts, financial	35
reports, records, and files pertaining to the program be performed	36
in the same manner and with the same frequency that an audit of a	37
public office is performed under section 117.11 of the Revised	38
Code. The audit required under division (A)(3) of this section	39
shall be in addition to and separate from any audit of a township,	40
joint fire district, or municipal corporation required under	41
section 117.11 of the Revised Code but may be performed at the	42
same time as such an audit.	43

(4) Provisions for termination of the program.

44

(B) A political subdivision that has established an annuity	45
program under division (A) of this section may appropriate general	46
revenue fund moneys of the political subdivision not appropriated	47
for any other purpose to the annuity program and may use moneys	48
raised under section 505.37, 505.371, or 505.39, or 5705.73 or	49
under division (I) or (U) of section 5705.19 of the Revised Code	50
for the annuity program. Income from the investment of moneys in	51
any fund established in the treasury of a political subdivision	52
for the annuity program shall be paid into the annuity fund.	53

(C) As used in this section:

54

(1) "Volunteer fire fighter" means a person who performs	55
service as a fire fighter, or who performs emergency medical	56
service, on a less than full-time basis for a political	57
subdivision.	58

(2) "Political subdivision" means a municipal corporation, a	59
township, a township fire district, or a joint fire district.	60

Sec. 319.301.  (A) The reductions required by division (D) of	61
this section do not apply to any of the following:	62

(1) Taxes levied at whatever rate is required to produce a	63
specified amount of tax money, including a tax levied under	64
section 5705.199, 5705.211, 5705.73, or 5748.09 of the Revised	65
Code, or an amount to pay debt charges;	66

(2) Taxes levied within the one per cent limitation imposed	67
by Section 2 of Article XII, Ohio Constitution;	68

(3) Taxes provided for by the charter of a municipal	69
corporation.	70

(B) As used in this section:

71

(1) "Real property" includes real property owned by a	72
railroad.	73

(2) "Carryover property" means all real property on the	74
current year's tax list except:	75

(a) Land and improvements that were not taxed by the district	76
in both the preceding year and the current year;	77

(b) Land and improvements that were not in the same class in	78
both the preceding year and the current year.	79

(3) "Effective tax rate" means with respect to each class of	80
property:	81

(a) The sum of the total taxes that would have been charged	82
and payable for current expenses against real property in that	83
class if each of the district's taxes were reduced for the current	84
year under division (D)(1) of this section without regard to the	85
application of division (E)(3) of this section divided by	86

(b) The taxable value of all real property in that class.

87

(4) "Taxes charged and payable" means the taxes charged and	88
payable prior to any reduction required by section 319.302 of the	89
Revised Code.	90

(C) The tax commissioner shall make the determinations	91
required by this section each year, without regard to whether a	92
taxing district has territory in a county to which section 5715.24	93
of the Revised Code applies for that year. Separate determinations	94
shall be made for each of the two classes established pursuant to	95
section 5713.041 of the Revised Code.	96

(D) With respect to each tax authorized to be levied by each	97
taxing district, the tax commissioner, annually, shall do both of	98
the following:	99

(1) Determine by what percentage, if any, the sums levied by	100
such tax against the carryover property in each class would have	101
to be reduced for the tax to levy the same number of dollars	102
against such property in that class in the current year as were	103
charged against such property by such tax in the preceding year	104
subsequent to the reduction made under this section but before the	105
reduction made under section 319.302 of the Revised Code. In the	106
case of a tax levied for the first time that is not a renewal of	107
an existing tax, the commissioner shall determine by what	108
percentage the sums that would otherwise be levied by such tax	109
against carryover property in each class would have to be reduced	110
to equal the amount that would have been levied if the full rate	111
thereof had been imposed against the total taxable value of such	112
property in the preceding tax year. A tax or portion of a tax that	113
is designated a replacement levy under section 5705.192 of the	114
Revised Code is not a renewal of an existing tax for purposes of	115
this division.	116

(2) Certify each percentage determined in division (D)(1) of	117
this section, as adjusted under division (E) of this section, and	118
the class of property to which that percentage applies to the	119
auditor of each county in which the district has territory. The	120
auditor, after complying with section 319.30 of the Revised Code,	121
shall reduce the sum to be levied by such tax against each parcel	122
of real property in the district by the percentage so certified	123
for its class. Certification shall be made by the first day of	124
September except in the case of a tax levied for the first time,	125
in which case certification shall be made within fifteen days of	126
the date the county auditor submits the information necessary to	127
make the required determination.	128

(E)(1) As used in division (E)(2) of this section, "pre-1982	129
joint vocational taxes" means, with respect to a class of	130
property, the difference between the following amounts:	131

(a) The taxes charged and payable in tax year 1981 against	132
the property in that class for the current expenses of the joint	133
vocational school district of which the school district is a part	134
after making all reductions under this section;	135

(b) The following percentage of the taxable value of all real	136
property in that class:	137

(i) In 1987, five one-hundredths of one per cent;

138

(ii) In 1988, one-tenth of one per cent;

139

(iii) In 1989, fifteen one-hundredths of one per cent;

140

(iv) In 1990 and each subsequent year, two-tenths of one per	141
cent.	142

If the amount in division (E)(1)(b) of this section exceeds	143
the amount in division (E)(1)(a) of this section, the pre-1982	144
joint vocational taxes shall be zero.	145

As used in divisions (E)(2) and (3) of this section, "taxes	146
charged and payable" has the same meaning as in division (B)(4) of	147
this section and excludes any tax charged and payable in 1985 or	148
thereafter under sections 5705.194 to 5705.197 or section	149
5705.199, 5705.213, 5705.219, or 5748.09 of the Revised Code.	150

(2) If in the case of a school district other than a joint	151
vocational or cooperative education school district any percentage	152
required to be used in division (D)(2) of this section for either	153
class of property could cause the total taxes charged and payable	154
for current expenses to be less than two per cent of the taxable	155
value of all real property in that class that is subject to	156
taxation by the district, the commissioner shall determine what	157
percentages would cause the district's total taxes charged and	158
payable for current expenses against that class, after all	159
reductions that would otherwise be made under this section, to	160
equal, when combined with the pre-1982 joint vocational taxes	161
against that class, the lesser of the following:	162

(a) The sum of the rates at which those taxes are authorized	163
to be levied;	164

(b) Two per cent of the taxable value of the property in that	165
class. The auditor shall use such percentages in making the	166
reduction required by this section for that class.	167

(3)(a) If in the case of a joint vocational school district	168
any percentage required to be used in division (D)(2) of this	169
section for either class of property could cause the total taxes	170
charged and payable for current expenses for that class to be less	171
than the designated amount, the commissioner shall determine what	172
percentages would cause the district's total taxes charged and	173
payable for current expenses for that class, after all reductions	174
that would otherwise be made under this section, to equal the	175
designated amount. The auditor shall use such percentages in	176
making the reductions required by this section for that class.	177

(b) As used in division (E)(3)(a) of this section, the	178
designated amount shall equal the taxable value of all real	179
property in the class that is subject to taxation by the district	180
times the lesser of the following:	181

(i) Two-tenths of one per cent;

182

(ii) The district's effective rate plus the following	183
percentage for the year indicated:	184

	WHEN COMPUTING THE		ADD THE FOLLOWING		185
	TAXES CHARGED FOR		PERCENTAGE:		186
	1987		0.025%		187
	1988		0.05%		188
	1989		0.075%		189
	1990		0.1%		190
	1991		0.125%		191
	1992		0.15%		192
	1993		0.175%		193
	1994 and thereafter		0.2%		194

(F) No reduction shall be made under this section in the rate	195
at which any tax is levied.	196

(G) The commissioner may order a county auditor to furnish	197
any information the commissioner needs to make the determinations	198
required under division (D) or (E) of this section, and the	199
auditor shall supply the information in the form and by the date	200
specified in the order. If the auditor fails to comply with an	201
order issued under this division, except for good cause as	202
determined by the commissioner, the commissioner shall withhold	203
from such county or taxing district therein fifty per cent of	204
state revenues to local governments pursuant to section 5747.50 of	205
the Revised Code or shall direct the department of education to	206
withhold therefrom fifty per cent of state revenues to school	207
districts pursuant to Chapter 3317. of the Revised Code. The	208
commissioner shall withhold the distribution of such revenues	209
until the county auditor has complied with this division, and the	210
department shall withhold the distribution of such revenues until	211
the commissioner has notified the department that the county	212
auditor has complied with this division.	213

(H) If the commissioner is unable to certify a tax reduction	214
factor for either class of property in a taxing district located	215
in more than one county by the last day of November because	216
information required under division (G) of this section is	217
unavailable, the commissioner may compute and certify an estimated	218
tax reduction factor for that district for that class. The	219
estimated factor shall be based upon an estimate of the	220
unavailable information. Upon receipt of the actual information	221
for a taxing district that received an estimated tax reduction	222
factor, the commissioner shall compute the actual tax reduction	223
factor and use that factor to compute the taxes that should have	224
been charged and payable against each parcel of property for the	225
year for which the estimated reduction factor was used. The amount	226
by which the estimated factor resulted in an overpayment or	227
underpayment in taxes on any parcel shall be added to or	228
subtracted from the amount due on that parcel in the ensuing tax	229
year.	230

A percentage or a tax reduction factor determined or computed	231
by the commissioner under this section shall be used solely for	232
the purpose of reducing the sums to be levied by the tax to which	233
it applies for the year for which it was determined or computed.	234
It shall not be used in making any tax computations for any	235
ensuing tax year.	236

(I) In making the determinations under division (D)(1) of	237
this section, the tax commissioner shall take account of changes	238
in the taxable value of carryover property resulting from	239
complaints filed under section 5715.19 of the Revised Code for	240
determinations made for the tax year in which such changes are	241
reported to the commissioner. Such changes shall be reported to	242
the commissioner on the first abstract of real property filed with	243
the commissioner under section 5715.23 of the Revised Code	244
following the date on which the complaint is finally determined by	245
the board of revision or by a court or other authority with	246
jurisdiction on appeal. The tax commissioner shall account for	247
such changes in making the determinations only for the tax year in	248
which the change in valuation is reported. Such a valuation change	249
shall not be used to recompute the percentages determined under	250
division (D)(1) of this section for any prior tax year.	251

Sec. 505.43.  In order to obtain police protection, or to	252
obtain additional police protection, any township may enter into a	253
contract with one or more townships, municipal corporations, park	254
districts created pursuant to section 511.18 or 1545.01 of the	255
Revised Code, county sheriffs, joint police districts, or with a	256
governmental entity of an adjoining state upon any terms that are	257
agreed to by them, for services of police departments or use of	258
police equipment, or the interchange of the service of police	259
departments or use of police equipment within the several	260
territories of the contracting subdivisions, if the contract is	261
first authorized by respective boards of township trustees or	262
other legislative bodies. The cost of the contract may be paid for	263
from the township general fund or from funds received pursuant to	264
the passage of a levy authorized pursuant to division (J) of	265
section 5705.19 and section 5705.25 or section 5705.73 of the	266
Revised Code.	267

Chapter 2744. of the Revised Code, insofar as it is	268
applicable to the operation of police departments, applies to the	269
contracting political subdivisions and police department members	270
when the members are rendering service outside their own	271
subdivision pursuant to the contract.	272

Police department members acting outside the subdivision in	273
which they are employed may participate in any pension or	274
indemnity fund established by their employer to the same extent as	275
while acting within the employing subdivision, and are entitled to	276
all the rights and benefits of Chapter 4123. of the Revised Code,	277
to the same extent as while performing service within the	278
subdivision.	279

The contract may provide for a fixed annual charge to be paid	280
at the times agreed upon and stipulated in the contract.	281

Sec. 505.51.  (A) In the case of a township police district,	282
the board of trustees of the township police district may levy a	283
tax upon all of the taxable property in the township police	284
district pursuant to sections 5705.19 and 5705.25 or section	285
5705.73 of the Revised Code to defray all or a portion of expenses	286
of the township police district in providing police protection.	287

(B) In the case of a joint police district, the joint police	288
district board may levy a tax upon all of the taxable property in	289
the joint police district pursuant to sections 5705.19 and 5705.25	290
or section 5705.73 of the Revised Code to defray all or a portion	291
of expenses of the joint police district in providing police	292
protection.	293

Sec. 742.33.  (A) Each employer shall pay monthly, on such	294
dates as the board of trustees of the Ohio police and fire pension	295
fund requires, from its general fund, or from a levy imposed	296
pursuant to division (J) or (W) of section 5705.19 or section	297
5705.73 of the Revised Code, to the fund an amount known as the	298
"police officer employers' contribution," which shall be nineteen	299
and one-half per cent of the salaries as defined in division (L)	300
of section 742.01 of the Revised Code of the members of the police	301
department of the employer.	302

(B) The taxing authority of each municipal corporation in	303
which there was a police relief and pension fund on October 1,	304
1965, shall annually, in the manner provided for making other	305
municipal levies and in addition to all other levies authorized by	306
law, levy a tax of three-tenths of one mill upon all the real and	307
personal property as listed for taxation in the municipal	308
corporation for the purpose of paying the police officer	309
employers' contribution and the municipal corporation's accrued	310
liability for its former police relief and pension fund and	311
interest thereon, and of defraying the current operating expenses	312
of the municipal corporation. The annual revenues derived from the	313
tax shall be used in the following order:	314

(1) First, to pay the current police officer employers'	315
contribution and any interest related thereto;	316

(2) Second, to pay any accrued liability chargeable to the	317
municipal corporation during the current calendar year for its	318
former police relief and pension fund and any interest related	319
thereto;	320

(3) Third, to defray the current operating expenses of the	321
municipal corporation.	322

Sec. 742.34.  (A) Each employer shall pay monthly, on such	323
dates as the board of trustees of the Ohio police and fire pension	324
fund requires, from its general fund, or from a levy imposed	325
pursuant to division (I) or (W) of section 5705.19 or section	326
5705.73 of the Revised Code, to the fund an amount known as the	327
"firefighter employers' contribution," which shall be twenty-four	328
per cent of the salaries as defined in division (L) of section	329
742.01 of the Revised Code of the members of the fire department	330
of the employer.	331

(B) The taxing authority of each municipal corporation in	332
which there was a firemen's relief and pension fund on October 1,	333
1965, shall annually, in the manner provided for making other	334
municipal levies and in addition to all other levies authorized by	335
law, levy a tax of three-tenths of one mill upon all the real and	336
personal property as listed for taxation in the municipal	337
corporation for the purpose of paying the firefighter employers'	338
contribution and the municipal corporation's accrued liability for	339
its former firemen's relief and pension fund and interest thereon,	340
and of defraying the current operating expenses of the municipal	341
corporation. The annual revenues derived from the tax shall be	342
used in the following order:	343

(1) First, to pay the current firefighter employers'	344
contribution and any interest related thereto;	345

(2) Second, to pay any accrued liability chargeable to the	346
municipal corporation during the current calendar year for its	347
former firemen's relief and pension fund and any interest related	348
thereto;	349

(3) Third, to defray the current operating expenses of the	350
municipal corporation.	351

Sec. 5705.26.  Except as otherwise provided in section	352
5705.191 of the Revised Code, if the majority of the electors	353
voting on a levy authorized by sections 5705.19 to 5705.25 and	354
section 5705.73 of the Revised Code vote in favor of such levy at	355
such election, the taxing authority of the subdivision may levy a	356
tax within the subdivision or, in the case of a qualifying library	357
levy, within the library district or association library district,	358
at the additional rate in excess of the ten-mill limitation during	359
the period and for the purpose stated in the resolution, or at any	360
less rate, or for any of said years or purposes; provided that	361
levies for payment of debt charges shall not exceed the amount	362
necessary for such charges on the indebtedness mentioned in the	363
resolution. If such levy is for the payment of charges on debts	364
incurred prior to January 1, 1935, in excess of the ten-mill	365
limitation but within the fifteen-mill limitation, the taxing	366
authority of said subdivision shall levy in excess of the ten-mill	367
limitation such tax if a majority of the electors voting on the	368
levy vote in favor thereof.	369

Sec. 5705.73.  The taxing authority of a subdivision, except	370
for a city, local, exempted village, cooperative education, or	371
joint vocational school district or a county school financing	372
district, by a vote of two-thirds of all the members of the taxing	373
authority, at any time may declare by resolution that the revenue	374
that will be raised by all tax levies that the subdivision is	375
authorized to impose will be insufficient to provide for the	376
emergency requirements of the subdivision or to avoid an operating	377
deficit, and that it is therefore necessary to levy a tax in	378
excess of the ten-mill limitation. The resolution shall be	379
confined to one of the purposes described in division (I), (J),	380
(U), or (JJ) of section 5705.19 of the Revised Code and shall	381
specify that purpose.	382

If the levy is proposed to renew all or a portion of the	383
proceeds derived from one or more existing levies imposed pursuant	384
to this section, it shall be called a renewal levy and shall be so	385
designated on the ballot. If two or more existing levies are to be	386
included in a single renewal levy but are not scheduled to expire	387
in the same year, the resolution shall specify that the existing	388
levies to be renewed shall not be levied after the year preceding	389
the year in which the renewal levy is first imposed. If the	390
original purpose of any one or more existing levies that are to be	391
in any single renewal levy was to provide for emergency	392
requirements or to avoid an operating deficit, the purpose of the	393
renewal levy may be either to avoid an operating deficit or to	394
provide for the emergency requirements.	395

The resolution shall specify the amount of money it is	396
necessary to raise for the specified purpose for each year the	397
millage is to be imposed; if a renewal levy, whether the levy is	398
to renew all, or a portion of, the proceeds derived from one or	399
more existing levies; and the number of years in which the millage	400
is to be in effect, which may include a levy upon the current	401
year's tax list. The number of years may be any number not	402
exceeding five.	403

The resolution shall go into immediate effect upon its	404
passage, and no publication of the resolution shall be necessary	405
other than that provided for in the notice of election. A copy of	406
the resolution shall immediately after its adoption be certified	407
to the county auditor of the proper county or counties. Within	408
five days after the resolution is certified to the county auditor,	409
the auditor shall calculate and certify to the taxing authority	410
the annual levy, expressed in dollars and cents for each one	411
hundred dollars of valuation and in mills for each one dollar of	412
valuation, throughout the life of the levy that will be required	413
to produce the annual amount set forth in the resolution assuming	414
that the amount of the tax list of the subdivision remains	415
throughout the life of the levy the same as the amount of the tax	416
list for the current year, and if this is not determined, the	417
estimated amount submitted by the auditor to the county budget	418
commission.	419

Upon receiving the certification from the county auditor, if	420
the taxing authority desires to proceed with the submission of the	421
question it shall, not less than ninety days before the day of the	422
election, certify its resolution to the board of elections,	423
together with the amount of the average tax levy, expressed in	424
dollars and cents for each one hundred dollars of valuation and in	425
mills for each one dollar of valuation, estimated by the auditor,	426
and the number of years the levy is to run. The board of elections	427
shall prepare the ballots and make other necessary arrangements	428
for the submission of the question to the voters of the	429
subdivision.	430

The question may be submitted to electors at a general	431
election or a special election held on a date consistent with	432
section 3501.01 of the Revised Code.	433

The form of the ballot to be used at the election shall be as	434
follows:	435

"Shall a levy be imposed by the . . . . . . . . . . (name of	436
subdivision) for the purpose of . . . . . . . . . . (purpose of	437
levy) in the sum of . . . . . . . . . . (annual amount the levy is	438
to produce) and a levy of taxes to be made outside of the ten-mill	439
limitation estimated by the county auditor to average . . . . . .	440
. . . . (number of mills) mills for each one dollar of valuation,	441
which amounts to . . . . . . . . . . (rate expressed in dollars	442
and cents) for each one hundred dollars of valuation, for a period	443
of . . . . . . . . . . (the number of years the millage is to be	444
imposed) years?	445

FOR THE TAX LEVY

446

AGAINST THE TAX LEVY"

447

The purpose for which the tax is to be levied shall be	448
printed in the space indicated, in boldface type of at least twice	449
the size of the type immediately surrounding it.	450

If the tax is to be placed on the current tax list, the form	451
of the ballot shall be modified by adding, after "years," the	452
phrase ", commencing in . . . . . . . . . . (first year the tax is	453
to be levied), first due in calendar year . . . . . . . . . .	454
(first calendar year in which the tax shall be due)."	455

If the levy submitted is a proposal to renew all or a portion	456
of an existing levy, the form of the ballot specified in this	457
section may be changed by adding the following at the beginning of	458
the form, after the words "shall a levy":	459

(A) "Renewing an existing levy" in the case of a proposal to	460
renew an existing levy in the same amount;	461

(B) "Renewing . . . . . . . . . . dollars and providing an	462
increase of . . . . . . . . . . dollars" in the case of an	463
increase;	464

(C) "Renewing part of an existing levy, being a reduction of	465
. . . . . . . . . . dollars" in the case of a renewal of only part	466
of an existing levy.	467

If the levy submitted is a proposal to renew all or a portion	468
of more than one existing levy, the form of the ballot may be	469
changed in any of the manners provided in division (A), (B), or	470
(C) of this section, or any combination of those manners, as	471
appropriate, so long as the form of the ballot reflects the number	472
of levies to be renewed, whether the amount of any of the levies	473
will be increased or decreased, the amount of any such increase or	474
decrease for each levy, and that none of the existing levies to be	475
renewed will be levied after the year preceding the year in which	476
the renewal levy is first imposed. The form of the ballot shall be	477
changed by adding the following statement after "for a period of .	478
. . . . . . . . years?" and before "For the Tax Levy" and "Against	479
the Tax Levy":	480

"If approved, any remaining tax years on any of the above . .	481
. . . . . . . . (the number of existing levies) existing levies	482
will not be collected after . . . . . . . . . . (the current tax	483
year or, if not the current tax year, the applicable tax year)."	484

After the approval of the levy and before the first tax	485
collection from the levy can be made, the taxing authority may	486
anticipate a fraction of the proceeds of the levy and issue	487
anticipation notes in an amount not exceeding the total estimated	488
proceeds of the levy to be collected during the first year of the	489
levy.	490

The notes shall be issued as provided in section 133.24 of	491
the Revised Code, shall have principal payments during each year	492
after the year of their issuance over a period not to exceed five	493
years, and may have principal payments in the year of their	494
issuance.	495

Section 2.  That existing sections 9.65, 319.301, 505.43,	497
505.51, 742.33, 742.34, and 5705.26 of the Revised Code are hereby	498
repealed.	499