Bill Text: OH SB376 | 2013-2014 | 130th General Assembly | Introduced
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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Senator Schiavoni
To amend sections 319.302, 3318.032, and 3318.37 of | 1 |
the Revised Code to revise the law governing | 2 |
classroom facilities assistance programs and to | 3 |
restore the application of the 10% and 2.5% | 4 |
property tax rollbacks to school district tax | 5 |
levies approved on or after the effective date of | 6 |
Am. Sub. H.B. 59 of the 130th General Assembly. | 7 |
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; | 87 |
(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 |
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(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 | 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: | 132 |
(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: | 137 |
(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 | 189 |
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(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 | 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 |