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(136th General Assembly)
(Substitute
House Bill Number 129)
AN
ACT
To amend sections 319.301,
323.32, 5705.01, 5705.03, 5705.194, and 5709.92 and to enact sections
5705.195, 5705.196, and 5705.197 of the Revised Code to generally
include fixed-sum levies in the calculation of a school district's
millage floor and to authorize, with limitations, school district
fixed-sum levies.
Be
it enacted by the General Assembly of the State of Ohio:
Section
1.
That
sections 319.301, 323.32, 5705.01, 5705.03, 5705.194, and 5709.92 be
amended and sections 5705.195, 5705.196, and 5705.197 of the Revised
Code be enacted to read as follows:
Sec.
319.301.
(A)
The reductions required by division (D) of this section do not apply
to any of the following:
(1)
Taxes levied at whatever rate is required to produce a specified
amount of tax money, including a tax levied under section 5705.199 or
5748.09 of the Revised Code, or an amount to pay debt charges;
(2)
Taxes levied within the one per cent limitation imposed by Section 2
of Article XII, Ohio Constitution;
(3)
Taxes provided for by the charter of a municipal corporation.
(B)
As used in this section:
(1)
"Real property" includes real property owned by a railroad.
(2)
"Carryover property" means all real property on the current
year's tax list except:
(a)
Land and improvements that were not taxed by the district in both the
preceding year and the current year;
(b)
Land and improvements that were not in the same class in both the
preceding year and the current year.
(3)
"Effective tax rate" means with respect to each class of
property:
(a)
The sum of the total taxes that would have been charged and payable
for current expenses against real property in that class if each of
the district's taxes were reduced for the current year under division
(D)(1) of this section without regard to the application of division
(E)(3) of this section divided by
(b)
The taxable value of all real property in that class.
(4)
"Taxes charged and payable" means the taxes charged and
payable prior to any reduction required by section 319.302 of the
Revised Code.
(C)
The tax commissioner shall make the determinations required by this
section each year, without regard to whether a taxing district has
territory in a county to which section 5715.24 of the Revised Code
applies for that year. Separate determinations shall be made for each
of the two classes established pursuant to section 5713.041 of the
Revised Code.
(D)
With respect to each tax authorized to be levied by each taxing
district, the tax commissioner, annually, shall do both of the
following:
(1)
Determine by what percentage, if any, the sums levied by such tax
against the carryover property in each class would have to be reduced
for the tax to levy the same number of dollars against such property
in that class in the current year as were charged against such
property by such tax in the preceding year subsequent to the
reduction made under this section but before the reduction made under
section 319.302 of the Revised Code. In the case of a tax levied for
the first time that is not a renewal of an existing tax, the
commissioner shall determine by what percentage the sums that would
otherwise be levied by such tax against carryover property in each
class would have to be reduced to equal the amount that would have
been levied if the full rate thereof had been imposed against the
total taxable value of such property in the preceding tax year.
(2)
Certify each percentage determined in division (D)(1) of this
section, as adjusted under division (E) of this section, and the
class of property to which that percentage applies to the auditor of
each county in which the district has territory. The auditor, after
complying with section 319.30 of the Revised Code, shall reduce the
sum to be levied by such tax against each parcel of real property in
the district by the percentage so certified for its class.
Certification shall be made by the first day of September except in
the case of a tax levied for the first time, in which case
certification shall be made within fifteen days of the date the
county auditor submits the information necessary to make the required
determination.
(E)(1)
As used in division (E)(2) of this section, "pre-1982 joint
vocational taxes" means, with respect to a class of property,
the difference between the following amounts:
(a)
The taxes charged and payable in tax year 1981 against the property
in that class for the current expenses of the joint vocational school
district of which the school district is a part after making all
reductions under this section;
(b)
Two-tenths of one per cent of the taxable value of all real property
in that class.
If
the amount in division (E)(1)(b) of this section exceeds the amount
in division (E)(1)(a) of this section, the pre-1982 joint vocational
taxes shall be zero.
As
used in divisions (E)(2) and (3) of this section, "taxes charged
and payable" has the same meaning as in division (B)(4) of this
section and excludes any tax charged and payable
in
1985 or thereafter
from
a tax levied
under
sections
5705.194 to 5705.197 or
section
5705.194
or
5705.199
,
5705.213, 5705.219, or 5748.09
of the Revised Code
that is approved by electors at an election held before January 1,
2026, until the first tax year, starting in tax year 2026, that
section 5715.24 applies in a county that includes territory of the
school district
.
(2)
If in the case of a school district other than a joint vocational or
cooperative education school district any percentage required to be
used in division (D)(2) of this section for either class of property
could cause the total taxes charged and payable for current expenses
to be less than two per cent of the taxable value of all real
property in that class that is subject to taxation by the district,
the commissioner shall determine what percentages would cause the
district's total taxes charged and payable for current expenses
against that class, after all reductions that would otherwise be made
under this section, to equal, when combined with the pre-1982 joint
vocational taxes against that class, the lesser of the following:
(a)
The sum of the rates at which those taxes are authorized to be
levied;
(b)
Two per cent of the taxable value of the property in that class. The
auditor shall use such percentages in making the reduction required
by this section for that class.
(3)
If in the case of a joint vocational school district any percentage
required to be used in division (D)(2) of this section for either
class of property could cause the total taxes charged and payable for
current expenses for that class to be less than two-tenths of one per
cent of the taxable value of that class, the commissioner shall
determine what percentages would cause the district's total taxes
charged and payable for current expenses for that class, after all
reductions that would otherwise be made under this section, to equal
that amount. The auditor shall use such percentages in making the
reductions required by this section for that class.
(4)
If a school district is affected by division (E)(2) or (3) of this
section for either class of property, and additional current expense
taxes are levied or are included in the definition of taxes charged
and payable, then, for the first tax year those taxes are levied or
included, the reduction computed under division (D) of this section
for that district shall be computed as though the sums of current
expenses taxes levied for the district and charged against that class
in the preceding tax year were equivalent to two per cent or
two-tenths of one per cent, respectively, of the taxable value of all
real property in that class.
(F)
No reduction shall be made under this section in the rate at which
any tax is levied.
(G)
The commissioner may order a county auditor to furnish any
information the commissioner needs to make the determinations
required under division (D) or (E) of this section, and the auditor
shall supply the information in the form and by the date specified in
the order. If the auditor fails to comply with an order issued under
this division, except for good cause as determined by the
commissioner, the commissioner shall withhold from such county or
taxing district therein fifty per cent of state revenues to local
governments pursuant to section 5747.50 of the Revised Code or shall
direct the department of education and workforce to withhold
therefrom fifty per cent of state revenues to school districts
pursuant to Chapter 3317. of the Revised Code. The commissioner shall
withhold the distribution of such revenues until the county auditor
has complied with this division, and the department shall withhold
the distribution of such revenues until the commissioner has notified
the department that the county auditor has complied with this
division.
(H)
If the commissioner is unable to certify a tax reduction factor for
either class of property in a taxing district located in more than
one county by the last day of November because information required
under division (G) of this section is unavailable, the commissioner
may compute and certify an estimated tax reduction factor for that
district for that class. The estimated factor shall be based upon an
estimate of the unavailable information. Upon receipt of the actual
information for a taxing district that received an estimated tax
reduction factor, the commissioner shall compute the actual tax
reduction factor and use that factor to compute the taxes that should
have been charged and payable against each parcel of property for the
year for which the estimated reduction factor was used. The amount by
which the estimated factor resulted in an overpayment or underpayment
in taxes on any parcel shall be added to or subtracted from the
amount due on that parcel in the ensuing tax year.
A
percentage or a tax reduction factor determined or computed by the
commissioner under this section shall be used solely for the purpose
of reducing the sums to be levied by the tax to which it applies for
the year for which it was determined or computed. It shall not be
used in making any tax computations for any ensuing tax year.
(I)
In making the determinations under division (D)(1) of this section,
the tax commissioner shall take account of changes in the taxable
value of carryover property resulting from complaints filed under
section 5715.19 of the Revised Code for determinations made for the
tax year in which such changes are reported to the commissioner. Such
changes shall be reported to the commissioner on the first abstract
of real property filed with the commissioner under section 5715.23 of
the Revised Code following the date on which the complaint is finally
determined by the board of revision or by a court or other authority
with jurisdiction on appeal. The tax commissioner shall account for
such changes in making the determinations only for the tax year in
which the change in valuation is reported. Such a valuation change
shall not be used to recompute the percentages determined under
division (D)(1) of this section for any prior tax year.
Sec.
323.32.
As
used in this section, "railroad note" means a note issued
pursuant to a court order in the reorganization of a railroad company
under section 77 of the Bankruptcy Act.
Notwithstanding
any other provision of law to the contrary, with respect to all
payments received in settlement of claims arising from delinquent
property tax charges and ordered to be paid by a railroad company
under a plan of reorganization as ordered by a federal district court
in accordance with provisions of Chapter VIII of the "Federal
Bankruptcy Act," 11 U.S.C.A. 201-208, the following provisions
shall apply:
(A)
Except as provided in division (H) of this section, all of such
payments shall be made payable, and delivered, to the county in which
the taxing district sharing in a claim for delinquent taxes is
located. Any notes included in such payment shall be issued to such
county treasurer, who shall be the custodian of all of said notes,
and who shall be liable therefor upon the treasurer's bond until such
time as said notes mature, are sold, or otherwise lawfully pass from
the treasurer's custody.
(B)
Upon receipt of a payment by cash or check, the county treasurer
shall immediately cause such funds to be paid into the county
treasury and credited to a special fund established for this purpose,
which shall be known as the "undivided bankruptcy claims fund."
All of such moneys so received, including any earned interest, shall
be credited to said fund.
(C)
When the total claim for each county has been satisfied by the
receipt of cash or notes, or both, the county auditor shall remit
from the tax list and duplicate of real and public utility property
in each county, all charges appearing thereon in the name of the
railroad company for which such payment has been made, which are
delinquent and unpaid from any year previous to the tax year 1977.
(D)
At any time that funds are present in the undivided bankruptcy claims
fund, either upon initial settlement or at any later time, the county
auditor shall, forthwith, distribute by auditors' warrant, such funds
to the various taxing districts of the county, in which the property
taxes, from which the claim in bankruptcy has derived, were
originally charged. The funds so distributed shall be apportioned
among the various taxing authorities within each taxing district in
the same proportions as the said taxes were originally levied, taking
into account the various rates of taxation levied for different
purposes for each year in which such taxes were charged and remained
unpaid, and any unpaid special assessments, including compound
interest thereon at the rate of six per cent per annum to January 1,
1978.
In
making such distribution, the auditor shall, first, deduct an amount
equal to one per cent of the total amount to be distributed, as fees
for services of the county auditor and treasurer in making collection
and distribution of the claim in bankruptcy. Such deduction shall be
in lieu of all fees provided for in sections 319.54 and 321.26 of the
Revised Code. The amount so deducted shall be credited to the general
fund of the county.
If
any funds received pursuant to this section represent taxes which, if
collected, would have resulted from any
general
or emergency
levy
which has since expired, such funds may be credited to the general
operating fund and expended as though they are proceeds from a
current levy, and if any of such funds represent taxes from any
current general bond retirement levy or one which has since expired,
said funds may be credited to the current bond retirement fund and
used to service any current bond indebtedness, or may be credited to
the general operating fund of the district, if so designated by a
majority of the members of the taxing authority of the taxing
district.
(E)
Except as provided in division (H) of this section, when, as a part
of the settlement of a claim in bankruptcy of a reorganized railroad
company a county receives notes on behalf of a taxing authority in
partial payment of said claim, the county treasurer shall, within a
reasonable length of time, notify the taxing authority of each taxing
district sharing in the claim that such notes are in the treasurer's
custody. Within sixty days of receipt of such notice, each taxing
authority shall decide by a resolution approved by a majority of its
members whether:
(1)
The notes shall remain in custody of the county treasurer, as issued,
and allowed to mature according to the terms presented on their face
with the proceeds to be distributed upon maturity pursuant to
division (D) of this section; or
(2)
The railroad notes shall be exchanged for several new notes in
denominations equal to the proportionate share, or portion thereof,
of the taxing district having a share in the claim in bankruptcy as
determined in division (D) of this section. The new notes shall be
distributed, upon receipt, to each taxing authority in full
satisfaction of its claim or in full satisfaction of the portion of
its claim represented by the notes so received. If notes cannot be
issued in denominations equal to the taxing district's proportionate
share, the treasurer shall certify to the taxing authority of the
district the amount of notes held by the treasurer on behalf of the
district and for which notes cannot be issued pursuant to the taxing
authority's decision under this subdivision. Upon receipt of such
certification, the taxing authority may borrow money and issue notes
against such certification in the same manner as is provided by
division (F) of this section.
If
a taxing authority elects the option provided under division (E)(1)
of this section, it may at any subsequent time elect instead the
option provided under division (E)(2) of this section by resolution
approved by a majority of its members. The election of the option
provided under division (E)(2) of this section becomes final upon
receipt by the taxing authority of the new notes or certification
distributed by the county treasurer under such division.
Each
taxing authority shall certify a copy of any resolution adopted under
this division to the county treasurer who shall take appropriate
action as directed by each taxing authority.
(F)
A taxing authority having possession of any railroad note or a
treasurer's certification issued under division (E)(2) of this
section may, by approval of a majority of its members, borrow money
and issue its note in anticipation of the revenue payable on maturity
of the railroad note and pledge the railroad note or the proceeds
thereof. Such anticipation note shall mature no later than the
railroad note and shall be in an amount no greater than seventy per
cent of the face amount of said railroad note. By like action a
taxing authority may sell any railroad note in its possession at
public or private offering for not less than the prevailing market
price. Such a sale or borrowing shall be exempt from all other
requirements and limitations of the Revised Code, including the
requirements of the Uniform Bond Law.
(1)
If a taxing authority desires to issue delinquent tax bonds pursuant
to section 131.23 of the Revised Code prior to either receipt of any
payment from a railroad in bankruptcy or utilization of the authority
granted in this section, the taxing authority may determine whether
or not the net amount of delinquent taxes unpledged for purposes of
division (B)(5) of section 131.23 of the Revised Code shall include
all or part of the delinquent taxes owed by a railroad, or, if notes
have been received pursuant to this section, the unpaid principal
amount of such notes. If the taxing authority determines that any
such railroad delinquencies or note amount shall be included under
section 131.23 of the Revised Code, the amount which may be borrowed
pursuant to this section may not exceed seventy per cent of the total
face amount of railroad notes remaining after deducting the amount so
included.
(2)
If a taxing authority desires to issue delinquent tax bonds pursuant
to section 131.23 of the Revised Code after utilization of the
authority granted in this section, the net amount of delinquent taxes
unpledged for purposes of division (B)(5) of section 131.23 of the
Revised Code may not include the principal amount of railroad notes
which have been borrowed against or sold pursuant to this section.
(G)
When a taxing authority receives a railroad note, the face amount of
such note shall not be considered as revenue for any purpose in the
year in which the note is received. Upon sale or maturity of the
note, any proceeds not pledged pursuant to division (F) of this
section shall be considered as unanticipated revenue from a new
source and all of the provisions of law pertaining to such revenue,
including section 5705.36 of the Revised Code, shall apply.
(H)
When there are present in a county nonrepresented taxing districts as
provided in amended substitute house bill 336 of the 112th general
assembly, all of the provisions of this section shall apply to such
districts, except as follows:
(1)
Payments by cash or check may be made payable, and delivered,
directly to the treasurer of the taxing district. Any notes included
in the settlement of the district's claim may be issued, and
delivered, directly to said treasurer.
Upon
receipt of any of such payments, the treasurer of the taxing district
shall certify, to the county treasurer of the county in which the
district is located, the fact of such receipt and the amounts so
received.
(2)
If the claim of a nonrepresented taxing district is not paid directly
to the treasurer of the district but is included with payments for
the remainder of the county, cash payments included in the initial
settlement shall be distributed as provided in divisions (B) and (D)
of this section. Any notes received as payment shall be exchanged and
distributed to nonrepresented taxing districts upon receipt.
Sec.
5705.01.
As
used in this chapter:
(A)
"Subdivision" means any county; municipal corporation;
township; township police district; joint police district; township
fire district; joint fire district; joint ambulance district; joint
emergency medical services district; fire and ambulance district;
joint recreation district; township waste disposal district; township
road district; community college district; technical college
district; detention facility district; a district organized under
section 2151.65 of the Revised Code; a combined district organized
under sections 2152.41 and 2151.65 of the Revised Code; a
joint-county alcohol, drug addiction, and mental health service
district; a drainage improvement district created under section
6131.52 of the Revised Code; a lake facilities authority created
under Chapter 353. of the Revised Code; a union cemetery district; a
county school financing district; a city, local, exempted village,
cooperative education, joint vocational school district; a regional
student education district created under section 3313.83 of the
Revised Code; or a career-technical cooperative education district
created under section 3313.831 of the Revised Code.
(B)
"Municipal corporation" means all municipal corporations,
including those that have adopted a charter under Article XVIII, Ohio
Constitution.
(C)
"Taxing authority" or "bond issuing authority"
means any of the following:
(1)
In the case of any county, the board of county commissioners; in the
case of a municipal corporation, the council or other legislative
authority of the municipal corporation; in the case of a city, local,
exempted village, cooperative education, or joint vocational school
district, the board of education; in the case of a community college
district, the board of trustees of the district; in the case of a
technical college district, the board of trustees of the district; in
the case of a detention facility district, a district organized under
section 2151.65 of the Revised Code, or a combined district organized
under sections 2152.41 and 2151.65 of the Revised Code, the joint
board of county commissioners of the district; in the case of a
township, the board of township trustees; in the case of a joint
police district, the joint police district board; in the case of a
joint fire district, the board of fire district trustees; in the case
of a joint recreation district, the joint recreation district board
of trustees; in the case of a joint-county alcohol, drug addiction,
and mental health service district, the district's board of alcohol,
drug addiction, and mental health services; in the case of a joint
ambulance district or a fire and ambulance district, the board of
trustees of the district; in the case of a union cemetery district,
the legislative authority of the municipal corporation and the board
of township trustees, acting jointly as described in section 759.341
of the Revised Code; in the case of a drainage improvement district,
the board of county commissioners of the county in which the drainage
district is located; in the case of a lake facilities authority, the
board of directors; in the case of a joint emergency medical services
district, the joint board of county commissioners of all counties in
which all or any part of the district lies; and in the case of a
township police district, a township fire district, a township road
district, or a township waste disposal district, the board of
township trustees of the township in which the district is located.
(2)
The educational service center governing board that serves as the
taxing authority of a county school financing district as provided in
section 3311.50 of the Revised Code, the board of directors of a
regional student education district created under section 3313.83 of
the Revised Code, and the board of directors of a career-technical
cooperative education district created under section 3313.831 of the
Revised Code.
(3)
The governing body responsible for levying a tax for any taxing unit
for which a taxing authority is not defined pursuant to division
(C)(1) or (2) of this section.
(D)
"Fiscal officer" in the case of a county, means the county
auditor; in the case of a municipal corporation, the city auditor or
village clerk, or an officer who, by virtue of the charter, has the
duties and functions of the city auditor or village clerk, except
that in the case of a municipal university the board of directors of
which have assumed, in the manner provided by law, the custody and
control of the funds of the university, the chief accounting officer
of the university shall perform, with respect to the funds, the
duties vested in the fiscal officer of the subdivision by sections
5705.41 and 5705.44 of the Revised Code; in the case of a school
district, the treasurer of the board of education; in the case of a
county school financing district, the treasurer of the educational
service center governing board that serves as the taxing authority;
in the case of a township, the township fiscal officer; in the case
of a joint police district, the treasurer of the district; in the
case of a joint fire district, the clerk of the board of fire
district trustees; in the case of a joint ambulance district, the
clerk of the board of trustees of the district; in the case of a
joint emergency medical services district, the person appointed as
fiscal officer pursuant to division (D) of section 307.053 of the
Revised Code; in the case of a fire and ambulance district, the
person appointed as fiscal officer pursuant to division (B) of
section 505.375 of the Revised Code; in the case of a joint
recreation district, the person designated pursuant to section 755.15
of the Revised Code; in the case of a union cemetery district, the
clerk of the municipal corporation designated in section 759.34 of
the Revised Code; in the case of a children's home district,
educational service center, general health district, joint-county
alcohol, drug addiction, and mental health service district, county
library district, detention facility district, district organized
under section 2151.65 of the Revised Code, a combined district
organized under sections 2152.41 and 2151.65 of the Revised Code, or
a metropolitan park district for which no treasurer has been
appointed pursuant to section 1545.07 of the Revised Code, the county
auditor of the county designated by law to act as the auditor of the
district; in the case of a metropolitan park district which has
appointed a treasurer pursuant to section 1545.07 of the Revised
Code, that treasurer; in the case of a drainage improvement district,
the auditor of the county in which the drainage improvement district
is located; in the case of a lake facilities authority, the fiscal
officer designated under section 353.02 of the Revised Code; in the
case of a regional student education district, the fiscal officer
appointed pursuant to section 3313.83 of the Revised Code; in the
case of a career-technical cooperative education district, the fiscal
officer appointed pursuant to section 3313.831 of the Revised Code;
and in all other cases, the officer responsible for keeping the
appropriation accounts and drawing warrants for the expenditure of
the moneys of the district or taxing unit.
(E)
"Permanent improvement" or "improvement" means
any property, asset, or improvement with an estimated life or
usefulness of five years or more, including land and interests
therein, and reconstructions, enlargements, and extensions thereof
having an estimated life or usefulness of five years or more.
(F)
"Current operating expenses" and "current expenses"
mean the lawful expenditures of a subdivision, except those for
permanent improvements, and except payments for interest, sinking
fund, and retirement of bonds, notes, and certificates of
indebtedness of the subdivision.
(G)
"Debt charges" means interest, sinking fund, and retirement
charges on bonds, notes, or certificates of indebtedness.
(H)
"Taxing unit" means any subdivision or other governmental
district having authority to levy taxes on the property in the
district or issue bonds that constitute a charge against the property
of the district, including conservancy districts, metropolitan park
districts, sanitary districts, road districts, and other districts.
(I)
"District authority" means any board of directors,
trustees, commissioners, or other officers controlling a district
institution or activity that derives its income or funds from two or
more subdivisions, such as the educational service center, the
trustees of district children's homes, the district board of health,
a joint-county alcohol, drug addiction, and mental health service
district's board of alcohol, drug addiction, and mental health
services, detention facility districts, a joint recreation district
board of trustees, districts organized under section 2151.65 of the
Revised Code, combined districts organized under sections 2152.41 and
2151.65 of the Revised Code, and other such boards.
(J)
"Tax list" and "tax duplicate" mean the general
tax lists and duplicates prescribed by sections 319.28 and 319.29 of
the Revised Code.
(K)
"Property" as applied to a tax levy means taxable property
listed on general tax lists and duplicates.
(L)
"Association library district" means a territory, the
boundaries of which are defined by the state library board pursuant
to division (I) of section 3375.01 of the Revised Code, in which a
library association or private corporation maintains a free public
library.
(M)
"Library district" means a territory, the boundaries of
which are defined by the state library board pursuant to section
3375.01 of the Revised Code, in which the board of trustees of a
county, municipal corporation, school district, or township public
library maintains a free public library.
(N)
"Qualifying library levy" means either of the following:
(1)
A levy for the support of a library association or private
corporation that has an association library district with boundaries
that are not identical to those of a subdivision;
(2)
A levy proposed under section 5705.23 of the Revised Code for the
support of the board of trustees of a public library that has a
library district with boundaries that are not identical to those of a
subdivision.
(O)
"School library district" means a school district in which
a free public library has been established that is under the control
and management of a board of library trustees as provided in section
3375.15 of the Revised Code.
(P)
"The county auditor's market value" means the true value in
money of real property.
(Q)(1)
"Effective rate" means one of the following:
(a)
For a levy that is the renewal of an existing levy or an existing
levy extended to additional territory, the effective tax rate of the
levy on class one property, as most recently determined by the county
auditor under section 323.08 of the Revised Code;
(b)
For a levy that is the increase of an existing levy, the effective
tax rate of the portion of the levy equal to the rate of the existing
levy on class one property, as most recently determined by the county
auditor under section 323.08 of the Revised Code, plus the rate of
the additional portion of the levy;
(c)
For a levy that is the decrease of an existing levy, the effective
tax rate of the levy on class one property, as most recently
determined by the county auditor under section 323.08 of the Revised
Code, and as proportionately reduced to account for the decrease
pursuant to rules adopted by the tax commissioner.
(2)
As used in division (Q)(1) of this section:
(a)
"Effective tax rate" has the same meaning in section 323.08
of the Revised Code.
(b)
"Class one property" means real property classified as
residential or agricultural under section 5713.041 of the Revised
Code.
(R)
"Qualifying subdivision" means a taxing unit, created by
one or more member authorities, with a taxing authority or any other
governing authority the majority of the members of which are not
required to be elected local officials.
(S)
"Elected local official" means a member of a board of
township trustees, a board of county commissioners, a legislative
authority of a municipal corporation, a board of education of a city,
local, or exempted village school district, or an educational service
center governing board, or any other township, county, or municipal
official serving in an elected office.
(T)
"Member authority" means the board of commissioners of a
county, the board of trustees of a township, the legislative
authority of a municipal corporation, the board of education of a
city, local, or exempted village school district, or the educational
service center governing board that either created or joined a
qualifying subdivision and remains a member thereof or has territory
therein.
(U)
"Disaster declaration" means a declaration issued by the
president of the United States or the governor that an emergency
exists.
(V)
"Disaster period" means the period that begins on a date on
which a disaster declaration is issued through the date that is two
years following the day that the disaster declaration expires or is
rescinded.
Sec.
5705.03.
(A)
The taxing authority of each subdivision may levy taxes annually,
subject to the limitations of sections 5705.01 to 5705.47 of the
Revised Code, on the real and personal property within the
subdivision for the purpose of paying the current operating expenses
of the subdivision and acquiring or constructing permanent
improvements. The taxing authority of each subdivision and taxing
unit shall, subject to the limitations of such sections, levy such
taxes annually as are necessary to pay the interest and sinking fund
on and retire at maturity the bonds, notes, and certificates of
indebtedness of such subdivision and taxing unit, including levies in
anticipation of which the subdivision or taxing unit has incurred
indebtedness.
(B)(1)
When a taxing authority determines that it is necessary to levy a tax
outside the ten-mill limitation for any purpose authorized by the
Revised Code, the taxing authority shall certify to the county
auditor a resolution or ordinance requesting that the county auditor
certify to the taxing authority the amounts described in division
(B)(2)
(B)(2)(a)
of this section. The resolution or ordinance shall state all of the
following:
(a)
The proposed rate of the tax, expressed in mills for each one dollar
of taxable value, or the dollar amount of revenue to be generated by
the proposed tax;
(b)
The purpose of the tax;
(c)
Whether the tax is an additional levy, a renewal of an existing tax,
a renewal of an existing tax with an increase or a decrease, a
reduction or decrease of an existing tax, or an extension of an
existing tax to additional territory;
(d)
The section of the Revised Code authorizing submission of the
question of the tax;
(e)
The term of years of the tax or if the tax is for a continuing period
of time;
(f)
That the tax is to be levied upon the entire territory of the
subdivision or, if authorized by the Revised Code, a description of
the portion of the territory of the subdivision in which the tax is
to be levied;
(g)
The date of the election at which the question of the tax shall
appear on the ballot;
(h)
That the ballot measure shall be submitted to the entire territory of
the subdivision or, if authorized by the Revised Code, a description
of the portion of the territory of the subdivision to which the
ballot measure shall be submitted;
(i)
The tax year in which the tax will first be levied and the calendar
year in which the tax will first be collected;
(j)
Each such county in which the subdivision has territory.
The
board of education of a city, local, or exempted village school
district may also designate, in a resolution adopted under division
(B)(1) of this section, an amount of the district's carry-over
balance from the proceeding fiscal year, based on the most recent
certification made by the district under section 5705.36 of the
Revised Code, as reserved for expenditure on current or future
permanent improvements within the following three years.
(2)
(2)(a)
Upon receipt of a resolution or ordinance certified under division
(B)(1) of this section, the county auditor shall certify to the
taxing authority each of the following, as applicable to that levy:
(a)
(i)
The total current tax valuation of the subdivision.
(b)
(ii)
The number of mills for each one dollar of taxable value that is
required to generate a specified amount of revenue.
(c)
(iii)
Either of the following:
(i)
(I)
If the levy is to renew, renew and increase, renew and decrease,
reduce or decrease, or extend to additional territory an existing
levy that is subject to reduction under section 319.301 of the
Revised Code, the levy's effective rate, expressed in dollars,
rounded to the nearest dollar, for each one hundred thousand dollars
of the county auditor's market value;
(ii)
(II)
For all other levies, the levy's rate, described in division
(B)(2)(b)
(B)(2)(a)(ii)
or
(d)
(iv)
of this section, expressed in dollars, rounded to the nearest dollar,
for each one hundred thousand dollars of the county auditor's market
value.
(d)
(iv)
The dollar amount of revenue, rounded to the nearest dollar, that
would be generated by a specified number of mills for each one dollar
of taxable value.
(e)
(v)
For any levy or portion of a levy except a levy or portion of a levy
to pay debt charges, an estimate of the levy's annual collections,
rounded to the nearest dollar, which shall be calculated assuming
that the amount of the tax list of the taxing authority remains
throughout the life of the levy the same as the amount of the tax
list most recently certified by the auditor under division (A) of
section 319.28 of the Revised Code.
(f)
(vi)
If the purpose of the tax is for current expenses or current
operating expenses and the resolution is certified by a city, local,
or exempted village school district, the amount by which the
carry-over balance in the district's general operating budget from
the preceding fiscal year exceeds the district's general fund
expenditures made in the preceding fiscal year, expressed both in
dollars and as a percentage of those expenditures. This amount and
percentage shall be determined on the basis of the most recent
certification made by the district to the county budget commission
under section 5705.36 of the Revised Code. The auditor shall exclude
any amount designated under division (B)(1) of this section for
current or future permanent improvements in determining the
district's carry-over balance for the purpose of this computation.
If
a subdivision is located in more than one county, the county auditor
shall obtain from the county auditor of each other county in which
the subdivision is located the current tax valuation for the portion
of the subdivision in that county. The county auditor shall issue the
certification to the taxing authority within ten days after receiving
the taxing authority's resolution or ordinance requesting it.
(b)
If a school district proposes to levy a tax under section 5705.194 of
the Revised Code on the basis that some or all of the territory of
district is covered by a disaster declaration during the disaster
period, the district shall certify to the director of education and
workforce the resolution the district adopted under division (B)(1)
of this section and a copy of the applicable disaster declaration
with a request that the director approve the proposed tax. The
director shall certify to the district its approval or disapproval
within fifteen days after receiving the resolution. The director
shall only approve the tax if the director finds that a disaster
period exists for all or part of the district's territory on the date
the district adopted the resolution under division (B)(1) of this
section and the district has been impacted by the emergency described
in the disaster declaration.
(3)
Upon receiving the certification from the county auditor under
division
(B)(2)
(B)(2)(a)
of this section
and, if required, the certification from the director of education
and workforce under division (B)(2)(b) of this section
,
unless the percentage certified under division
(B)(2)(f)
(B)(2)(a)(vi)
of this section is one hundred per cent or more, except in the case
of a renewal levy, the taxing authority may adopt a resolution or
ordinance stating the rate of the tax levy, expressed in mills for
each one dollar of taxable value and the rate or effective rate, as
applicable, in dollars for each one hundred thousand dollars of the
county auditor's market value, as estimated by the county auditor,
and that the taxing authority will proceed with the submission of the
question of the tax to electors. The taxing authority shall certify
this resolution or ordinance, a copy of the county auditor's
and
director of education and workforce's
certifications,
a
copy of any applicable disaster declaration,
and
the resolution or ordinance the taxing authority adopted under
division (B)(1) of this section to the proper county board of
elections in the manner and within the time prescribed by the section
of the Revised Code governing submission of the question. The county
board of elections shall not submit the question of the tax to
electors unless a copy of
the
county auditor's certification
those
certifications and, if applicable, disaster declaration
accompanies
the resolutions or ordinances the taxing authority certifies to the
board. Before requesting a taxing authority to submit a tax levy, any
agency or authority authorized to make that request shall first
request the certification from the county auditor provided under this
section.
(4)
This division is supplemental to, and not in derogation of, any
similar requirement governing the certification by the county auditor
of the tax valuation of a subdivision or necessary tax rates for the
purposes of the submission of the question of a tax in excess of the
ten-mill limitation, including section 133.18 of the Revised Code.
(C)
All taxes levied on property shall be extended on the tax list and
duplicate by the county auditor of the county in which the property
is located, and shall be collected by the county treasurer of such
county in the same manner and under the same laws and rules as are
prescribed for the assessment and collection of county taxes. The
proceeds of any tax levied by or for any subdivision when received by
its fiscal officer shall be deposited in its treasury to the credit
of the appropriate fund.
Sec.
5705.194.
(A)
For purposes of this section:
(1)
"Fiscal caution" means a state of fiscal caution declared
by the director of education and workforce under section 3316.031 of
the Revised Code.
(2)
"Fiscal watch" means a state of fiscal watch declared by
the auditor of state under section 3316.03 of the Revised Code.
(3)
"Fiscal emergency" means a state of fiscal emergency
declared by the auditor of state under section 3316.03 of the Revised
Code.
(4)
"Qualifying levy" has the same meaning as in section
319.302 of the Revised Code.
(5)
A tax shall be considered to be an "existing tax" through
the year following the last year it can be placed on the tax list.
(B)
The
board of education of any city, local, exempted village, cooperative
education, or joint vocational school district
at
any time before the effective date of this amendment
that is in fiscal caution, fiscal watch, or fiscal emergency or is
impacted by an emergency that is the subject of a disaster
declaration
may
declare by resolution that the revenue that will be raised by all tax
levies which the district is authorized to impose, when combined with
state and federal revenues, will be insufficient to provide for the
emergency
requirements
of the school district
or to avoid an operating deficit
,
and that it is therefore necessary to levy an additional tax in
excess of the ten-mill limitation
for the current expenses of the district
.
The
resolution shall be confined to a single purpose and shall specify
that purpose. If the levy is proposed
A
tax levied under division (B) of this section may not be renewed.
(C)
The board of education of any city, local, exempted village,
cooperative education, or joint vocational school district that
levies a tax under this section that was approved by electors at an
election held before January 1, 2026, may adopt a resolution
to
renew
up
to
all
or a portion of the proceeds derived from
one
or more existing levies imposed pursuant to this section, it shall be
called a renewal levy and shall be so designated on the ballot
that
existing tax
.
If
two or more existing levies are to be included in a single renewal
levy but are not scheduled to expire in the same year, the resolution
shall specify that the existing levies to be renewed shall not be
levied after the year preceding the year in which the renewal levy is
first imposed.
Notwithstanding
the original purpose of
any
one or more existing levies that are to be in any single renewal
levy
the
existing tax
,
the purpose of the renewal levy
may
shall
be
either
to avoid an operating deficit or to provide for the emergency
requirements of the school district
for
the current expenses of the district. A tax levied under division (C)
of this section may be renewed for the same or a lesser sum and in
the same manner as the existing tax
.
Any
tax levied under division (C) of this section, including any
subsequent renewal of such a tax, is a qualifying levy if the tax
that was approved by electors at an election held before January 1,
2026, was a subsequent renewal levy described in that term's
definition.
(D)
The board of education of a city, local, exempted village,
cooperative education, or joint vocational school district that
levies a tax under section 5705.199 of the Revised Code that was
approved by electors at an election held before January 1, 2026, may
adopt a resolution to renew up to all or a portion of the proceeds
derived from the existing tax in the final tax year it is levied. The
renewal levy shall levy that sum, or portion thereof, for each year
of the levy, and the sum levied shall not be increased as otherwise
described in section 5705.199 of the Revised Code. The purpose of the
renewal levy shall be for the current expenses of the district.
A
tax levied under division (D) of this section may be renewed for the
same or a lesser sum and in the same manner as the existing tax.
Any
tax levied under division (D) of this section, including any
subsequent renewal of such a tax, is a qualifying levy if the tax
that was approved by electors at an election held before January 1,
2026, was a subsequent substitute levy as described in that term's
definition.
The
(E)
A
resolution
adopted
under division (B), (C), or (D) of this section
shall
further specify the amount of money it is necessary to raise for the
specified
purpose
current
expenses of the district
for
each calendar year the millage is to be imposed; if a
renewal
levy
resolution
adopted under division (C) or (D) of this section
,
whether the levy is to renew all, or a portion of, the proceeds
derived from
one
or more
the
existing
levies
tax
;
and the number of years in which the millage is to be in effect,
which may include a levy upon the current year's tax list. The number
of years may be any number not exceeding
ten
five
.
The
question shall be submitted at a special election on a date specified
in the resolution. The date shall not be earlier than eighty days
after the adoption and certification of the resolution to the county
auditor and shall be consistent with the requirements of section
3501.01 of the Revised Code. A resolution
for
a renewal levy
adopted
under division (C) of this section, or adopted under division (D) of
this section to renew a tax levied under that division,
shall
not be placed on the ballot unless the question is submitted on a
date on which a special election may be held under division (D) of
section 3501.01 of the Revised Code, except for the first Tuesday
after the first Monday in August, during the last year the
levy
to be renewed
existing
tax
may
be extended on the
real
and public utility property
tax
list
and duplicate
,
or at any election held in the ensuing year
,
except that if the resolution proposes renewing two or more existing
levies, the question shall be submitted on the date of the general or
primary election held during the last year at least one of the levies
to be renewed may be extended on that list and duplicate, or at any
election held during the ensuing year. For purposes of this section
and section 5705.199 of the Revised Code, a levy shall be considered
to be an "existing levy" through the year following the
last year it can be placed on the real and public utility property
tax list and duplicate
.
A resolution adopted under division (D) of this section, excluding a
resolution to renew a tax levied under that division, shall not be
placed on the ballot unless the question is submitted on a date on
which a general election may be held during the last year the
existing tax may be extended on the tax list, or at any election held
in the ensuing year
.
The
submission of questions to the electors under this section is subject
to the limitation on the number of election dates established by
section 5705.214 of the Revised Code.
The
resolution shall go into immediate effect upon its passage, and no
publication of the resolution shall be necessary other than that
provided for in the notice of election. A copy of the resolution
shall immediately after its passing be certified to the county
auditor of the proper county.
Section
5705.195 of the Revised Code shall govern the arrangements for the
submission of questions to the electors under this section and other
matters concerning the election.
Publication
of notice of the election shall be made in one newspaper of general
circulation in the county once a week for two consecutive weeks, or
as provided in section 7.16 of the Revised Code, prior to the
election. If the board of elections operates and maintains a web
site, the board of elections shall post notice of the election on its
web site for thirty days prior to the election. If a majority of the
electors voting on the question submitted in an election vote in
favor of the levy, the board of education of the school district may
make the additional levy necessary to raise the amount specified in
the resolution for the purpose stated in the resolution. The tax levy
shall be included in the next tax budget that is certified to the
county budget commission.
After
the approval of the levy and prior to the time when the first tax
collection from the levy can be made, the board of education may
anticipate a fraction of the proceeds of the levy and issue
anticipation notes in an amount not exceeding the total estimated
proceeds of the levy to be collected during the first year of the
levy.
The
notes shall be issued as provided in section 133.24 of the Revised
Code, shall have principal payments during each year after the year
of their issuance over a period not to exceed five years, and may
have principal payment in the year of their issuance.
Sec.
5705.195.
Within
ten days after a resolution adopted under division (B), (C), or (D)
of section 5705.194 of the Revised Code is certified to the county
auditor as provided by that section, the auditor shall calculate and
certify to the taxing authority the annual levy, expressed in dollars
for each one hundred thousand dollars of the county auditor's market
value as well as in mills for each one dollar of taxable value,
throughout the life of the levy which will be required to produce the
annual amount set forth in the resolution assuming that the amount of
the tax list of such subdivision remains throughout the life of the
levy the same as the amount of the tax list most recently certified
by the county auditor under division (A) of section 319.28 of the
Revised Code. For a resolution adopted under division (D) of section
5705.194 of the Revised Code, the county auditor shall also certify
an estimate of the taxes charged and payable from the existing tax
for the final tax year of its term.
Upon
receiving the certification from the county auditor, if the taxing
authority desires to proceed with the submission of the question it
shall, not less than ninety days before the day of such election,
certify its resolution, together with the amount of the average tax
levy, expressed in dollars for each one hundred thousand dollars of
the county auditor's market value as well as in mills for each one
dollar of taxable value, as certified by the county auditor, the
number of years the levy is to run, and, if applicable, the taxes
charged and payable from the existing tax for the final tax year of
its term to the board of elections of the county which shall prepare
the ballots and make other necessary arrangements for the submission
of the question to the voters of the subdivision.
Sec.
5705.196.
The
election provided for in section 5705.194 of the Revised Code shall
be held at the regular places for voting in the district and shall be
conducted, canvassed, and certified in the same manner as regular
elections in the district for the election of county officers,
provided that in any such election in which only part of the electors
of a precinct are qualified to vote, the board of elections may
assign voters in such part to an adjoining precinct. Such an
assignment may be made to an adjoining precinct in another county
with the consent and approval of the board of elections of such other
county. Notice of the election shall be published in one newspaper of
general circulation in the district once a week for two consecutive
weeks or as provided in section 7.16 of the Revised Code, prior to
the election. If the board of elections operates and maintains a web
site, the board of elections shall post notice of the election on its
web site for thirty days prior to the election. Such notice shall
state the annual proceeds of the proposed levy, the purpose for which
such proceeds are to be used, the number of years during which the
levy shall run, and the estimated average additional tax rate
expressed in dollars for each one hundred thousand dollars of the
county auditor's market value as well as in mills for each one dollar
of taxable value, outside the limitation imposed by Ohio
Constitution, Article XII, Section 2, as certified by the county
auditor.
Sec.
5705.197.
(A)
The form of the ballot to be used at the election provided for in
section 5705.195 of the Revised Code shall be as follows:
"Shall
a fixed-sum levy be imposed by the _____________ (here insert name of
school district) for the purpose of paying the current operating
expenses of the district in the sum of $__________ (here insert
annual amount the levy is to produce) and a levy of taxes to be made
outside of the ten-mill limitation estimated by the county auditor to
average __________ mills for each $1 of taxable value, which amounts
to $__________ for each $100,000 of the county auditor's market
value, for a period of __________ (here insert the number of years
the millage is to be imposed) years?
FOR
THE TAX LEVY
AGAINST
THE TAX LEVY
"
If
the tax is to be placed on the current tax list, the form of the
ballot shall be modified by adding, after "years," the
phrase ", commencing in __________ (first year the tax is to be
levied), first due in calendar year __________ (first calendar year
in which the tax shall be due)."
If
the levy submitted is a proposal to renew all or a portion of an
existing tax adopted under division (C) or (D) of section 5705.194 of
the Revised Code, the form of the ballot specified in this section
must be changed by adding the following at the beginning of the form,
after the first instance of the term "levy":
(A)
"Renewing an existing levy" in the case of a proposal to
renew an existing tax in the same amount;
(B)
"Renewing part of an existing levy, being a reduction of
$______" in the case of a renewal of only part of an existing
tax.
Sec.
5709.92.
(A) As used in this section:
(1)
"School district" means a city, local, or exempted village
school district.
(2)
"Joint vocational school district" means a joint vocational
school district created under section 3311.16 of the Revised Code,
and includes a cooperative education school district created under
section 3311.52 or 3311.521 of the Revised Code and a county school
financing district created under section 3311.50 of the Revised Code.
(3)
"Total resources" means the sum of the amounts described in
divisions (A)(3)(a) to (g) of this section less any reduction
required under division (C)(3)(a) of this section.
(a)
The state education aid for fiscal year 2015;
(b)
The sum of the payments received in fiscal year 2015 for current
expense levy losses under division (C)(3) of section 5727.85 and
division (C)(12) of section 5751.21 of the Revised Code, as they
existed at that time, excluding the portion of such payments
attributable to levies for joint vocational school district purposes;
(c)
The sum of fixed-sum levy loss payments received by the school
district in fiscal year 2015 under division (F)(1) of section 5727.85
and division (E)(1) of section 5751.21 of the Revised Code, as they
existed at that time, for fixed-sum levies charged and payable for a
purpose other than paying debt charges;
(d)
The district's taxes charged and payable against all property on the
tax list of real and public utility property for current expense
purposes for tax year 2014, including taxes charged and payable from
emergency
levies
charged and payable under section 5705.194 of the Revised Code,
excluding taxes levied for joint vocational school district purposes
or levied under section 5705.23 of the Revised Code;
(e)
The amount certified for fiscal year 2015 under division (A)(2) of
section 3317.08 of the Revised Code;
(f)
Distributions received during calendar year 2014 from taxes levied
under section 718.09 of the Revised Code;
(g)
Distributions received during fiscal year 2015 from the gross casino
revenue county student fund.
(4)(a)
"State education aid" for a school district means the sum
of state amounts computed for the district under sections 3317.022
and 3317.0212 of the Revised Code after any amounts are added or
subtracted under Section 263.240 of Am. Sub. H.B. 59 of the 130th
general assembly, entitled "TRANSITIONAL AID FOR CITY, LOCAL,
AND EXEMPTED VILLAGE SCHOOL DISTRICTS."
(b)
"State education aid" for a joint vocational district means
the amount computed for the district under section 3317.16 of the
Revised Code after any amounts are added or subtracted under Section
263.250 of Am. Sub. H.B. 59 of the 130th general assembly, entitled
"TRANSITIONAL AID FOR JOINT VOCATIONAL SCHOOL DISTRICTS."
(5)
"Taxes charged and payable" means taxes charged and payable
after the reduction required by section 319.301 of the Revised Code
but before the reductions required by sections 319.302 and 323.152 of
the Revised Code.
(6)
"Capacity quintile" means the capacity measure quintiles
determined under division (B) of this section.
(7)
"Threshold per cent" means the following:
(a)
For a school district in the lowest capacity quintile, one per cent
for fiscal year 2016 and two per cent for fiscal year 2017.
(b)
For a school district in the second lowest capacity quintile, one and
one-fourth per cent for fiscal year 2016 and two and one-half per
cent for fiscal year 2017.
(c)
For a school district in the third lowest capacity quintile, one and
one-half per cent for fiscal year 2016 and three per cent for fiscal
year 2017.
(d)
For a school district in the second highest capacity quintile, one
and three-fourths per cent for fiscal year 2016 and three and
one-half per cent for fiscal year 2017.
(e)
For a school district in the highest capacity quintile, two per cent
for fiscal year 2016 and four per cent for fiscal year 2017.
(f)
For a joint vocational school district, two per cent for fiscal year
2016 and four per cent for fiscal year 2017.
(8)
"Current expense allocation" means the sum of the payments
received by a school district or joint vocational school district in
fiscal year 2015 for current expense levy losses under division
(C)(3) of section 5727.85 and division (C)(12) of section 5751.21 of
the Revised Code as they existed at that time, less any reduction
required under division (C)(3)(b) of this section.
(9)
"Non-current expense allocation" means the sum of the
payments received by a school district or joint vocational school
district in fiscal year 2015 for levy losses under division (C)(3)(c)
of section 5727.85 and division (C)(12)(c) of section 5751.21 of the
Revised Code, as they existed at that time, and levy losses in fiscal
year 2015 under division (H) of section 5727.84 of the Revised Code
as that section existed at that time attributable to levies for and
payments received for losses on levies intended to generate money for
maintenance of classroom facilities.
(10)
"Operating TPP fixed-sum levy losses" means the sum of
payments received by a school district in fiscal year 2015 for levy
losses under division (E) of section 5751.21 of the Revised Code,
excluding levy losses for debt purposes.
(11)
"Operating S.B. 3 fixed-sum levy losses" means the sum of
payments received by the school district in fiscal year 2015 for levy
losses under division (H) of section 5727.84 of the Revised Code,
excluding levy losses for debt purposes.
(12)
"TPP fixed-sum debt levy losses" means the sum of payments
received by a school district in fiscal year 2015 for levy losses
under division (E) of section 5751.21 of the Revised Code for debt
purposes.
(13)
"S.B. 3 fixed-sum debt levy losses" means the sum of
payments received by the school district in fiscal year 2015 for levy
losses under division (H) of section 5727.84 of the Revised Code for
debt purposes.
(14)
"Qualifying levies" means qualifying levies described in
section 5751.20 of the Revised Code as that section was in effect
before July 1, 2015.
(15)
"Total taxable value" has the same meaning as in section
3317.02 of the Revised Code.
(B)
The department of education and workforce shall rank all school
districts in the order of districts' capacity measures determined
under former section 3317.018 of the Revised Code from lowest to
highest, and divide such ranking into quintiles, with the first
quintile containing the twenty per cent of school districts having
the lowest capacity measure and the fifth quintile containing the
twenty per cent of school districts having the highest capacity
measure. This calculation and ranking shall be performed once, in
fiscal year 2016.
(C)(1)
In fiscal year 2016, payments shall be made to school districts and
joint vocational school districts equal to the sum of the amounts
described in divisions (C)(1)(a) or (b) and (C)(1)(c) of this
section. In fiscal year 2017, payments shall be made to school
districts and joint vocational school districts equal to the amount
described in division (C)(1)(a) or (b) of this section.
(a)
If the ratio of the current expense allocation to total resources is
equal to or less than the district's threshold percent, zero;
(b)
If the ratio of the current expense allocation to total resources is
greater than the district's threshold per cent, the difference
between the current expense allocation and the product of the
threshold percentage and total resources;
(c)
For fiscal year 2016, the product of the non-current expense
allocation multiplied by fifty per cent.
(2)
In fiscal year 2018 and subsequent fiscal years, payments shall be
made to school districts and joint vocational school districts equal
to the difference obtained by subtracting the amount described in
division (C)(2)(b) of this section from the amount described in
division (C)(2)(a) of this section, provided that such amount is
greater than zero.
(a)
The sum of the payments received by the district under division
(C)(1)(b) or (C)(2) of this section for the immediately preceding
fiscal year;
(b)
One-sixteenth of one per cent of the average of the total taxable
value of the district for tax years 2014, 2015, and 2016.
(3)(a)
"Total resources" used to compute payments under division
(C)(1) of this section shall be reduced to the extent that payments
distributed in fiscal year 2015 were attributable to levies no longer
charged and payable for tax year 2014.
(b)
"Current expense allocation" used to compute payments under
division (C)(1) of this section shall be reduced to the extent that
the payments distributed in fiscal year 2015 were attributable to
levies no longer charged and payable for tax year 2014.
(4)
The department of education and workforce shall report to each school
district and joint vocational school district the apportionment of
the payments under division (C)(1) of this section among the
district's funds based on qualifying levies.
(D)(1)
Payments in the following amounts shall be made to school districts
and joint vocational school districts in tax years 2016 through 2021:
(a)
In tax year 2016, the sum of the district's operating TPP fixed-sum
levy losses and operating S.B. 3 fixed-sum levy losses.
(b)
In tax year 2017, the sum of the district's operating TPP fixed-sum
levy losses and eighty per cent of operating S.B. 3 fixed-sum levy
losses.
(c)
In tax year 2018, the sum of eighty per cent of the district's
operating TPP fixed-sum levy losses and sixty per cent of its
operating S.B. 3 fixed-sum levy losses.
(d)
In tax year 2019, the sum of sixty per cent of the district's
operating TPP fixed-sum levy losses and forty per cent of its
operating S.B. 3 fixed-sum levy losses.
(e)
In tax year 2020, the sum of forty per cent of the district's
operating TPP fixed-sum levy losses and twenty per cent of its
operating S.B. 3 fixed-sum levy losses.
(f)
In tax year 2021, twenty per cent of the district's operating TPP
fixed-sum levy losses.
No
payment shall be made under division (D)(1) of this section after tax
year 2021.
(2)
Amounts are payable under division (D) of this section for fixed-sum
levy losses only to the extent of such losses for qualifying levies
that remain in effect for the current tax year. For this purpose, a
qualifying levy levied under section 5705.194 or 5705.213 of the
Revised Code remains in effect for the current tax year only if a tax
levied under either of those sections is charged and payable for the
current tax year for an annual sum at least equal to the annual sum
levied by the board of education for tax year 2004 under those
sections less the amount of the payment under this division.
(E)(1)
For fixed-sum levies for debt purposes, payments shall be made to
school districts and joint vocational school districts equal to one
hundred per cent of the district's fixed-sum levy loss determined
under division (E) of section 5751.20 and division (H) of section
5727.84 of the Revised Code as in effect before July 1, 2015, and
paid in tax year 2014. No payment shall be made for qualifying levies
that are no longer charged and payable.
(2)
Beginning in 2016, by the thirty-first day of January of each year,
the tax commissioner shall review the calculation of fixed-sum levy
loss for debt purposes determined under division (E) of section
5751.20 and division (H) of section 5727.84 of the Revised Code as in
effect before July 1, 2015. If the commissioner determines that a
fixed-sum levy that had been scheduled to be reimbursed in the
current year is no longer charged and payable, a revised calculation
for that year and all subsequent years shall be made.
(F)(1)
For taxes levied within the ten-mill limitation for debt purposes in
tax year 1998 in the case of electric company tax value losses, and
in tax year 1999 in the case of natural gas company tax value losses,
payments shall be made to school districts and joint vocational
school districts equal to one hundred per cent of the loss computed
under division (D) of section 5727.85 of the Revised Code as in
effect before July 1, 2015, as if the tax were a fixed-rate levy, but
those payments shall extend through fiscal year 2016.
(2)
For taxes levied within the ten-mill limitation for debt purposes in
tax year 2005, payments shall be made to school districts and joint
vocational school districts equal to one hundred per cent of the loss
computed under division (D) of section 5751.21 of the Revised Code as
in effect before July 1, 2015, as if the tax were a fixed-rate levy,
but those payments shall extend through fiscal year 2018.
(G)
If all the territory of a school district or joint vocational school
district is merged with another district, or if a part of the
territory of a school district or joint vocational school district is
transferred to an existing or newly created district, the department
of education and workforce, in consultation with the tax
commissioner, shall adjust the payments made under this section as
follows:
(1)
For a merger of two or more districts, fixed-sum levy losses, total
resources, current expense allocation, and non-current expense
allocation of the successor district shall be the sum of such items
for each of the districts involved in the merger.
(2)
If property is transferred from one district to a previously existing
district, the amount of the total resources, current expense
allocation, and non-current expense allocation that shall be
transferred to the recipient district shall be an amount equal to the
total resources, current expense allocation, and non-current expense
allocation of the transferor district times a fraction, the numerator
of which is the number of pupils being transferred to the recipient
district, measured, in the case of a school district, by formula ADM
as defined in section 3317.02of the Revised Code or, in the case of a
joint vocational school district, by formula ADM as defined for a
joint vocational school district in that section, and the denominator
of which is the formula ADM of the transferor district.
(3)
After December 31, 2010, if property is transferred from one or more
districts to a district that is newly created out of the transferred
property, the newly created district shall be deemed not to have any
total resources, current expense allocation, total allocation, or
non-current expense allocation.
(4)
If the recipient district under division (G)(2) of this section or
the newly created district under division (G)(3) of this section is
assuming debt from one or more of the districts from which the
property was transferred and any of the districts losing the property
had fixed-sum levy losses, the department of education and workforce,
in consultation with the tax commissioner, shall make an equitable
division of the reimbursements for those losses.
(H)
The payments required by divisions (C), (D), (E), (F), and (I) of
this section shall be distributed periodically to each school and
joint vocational school district by the department of education and
workforce unless otherwise provided for. Except as provided in
division (D) of this section, if a levy that is a qualifying levy is
not charged and payable in any year after 2014, payments to the
school district or joint vocational school district shall be reduced
to the extent that the payments distributed in fiscal year 2015 were
attributable to the levy loss of that levy.
(I)
For fiscal years 2022 through 2026, if the total amount to be
received under divisions (C) and (E) of this section by any school
district that has a nuclear power plant located within its territory
is less than the amount the district received under this section in
fiscal year 2017, the district shall receive a supplemental payment
equal to the difference between the amount to be received under those
divisions for the fiscal year and the amount received under this
section in fiscal year 2017.
Section
2.
That existing sections 319.301,
323.32, 5705.01, 5705.03, 5705.194, and 5709.92 of the Revised Code
are hereby repealed.
Section
3.
The
amendment by this act of section 319.301 of the Revised Code applies
to tax year 2026 and every tax year thereafter.
Speaker
___________________ of the House of Representatives.
President
___________________ of the Senate.
Passed
________________________, 20____
Approved
________________________, 20____
Governor.
The section numbering of law
of a general and permanent nature is complete and in conformity with
the Revised Code.
Director, Legislative
Service Commission.
Filed
in the office of the Secretary of State at Columbus, Ohio, on the
____ day of ___________, A. D. 20____.
Secretary of State.
File
No. _________ Effective Date ___________________