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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 819
2025-2026
Representatives Rader, Synenberg
Cosponsors: Representatives
Piccolantonio, Lett, Brennan, Brownlee, Somani, Miller, J., Cockley,
McNally
To
amend sections 1509.02, 1509.34, 5703.052, 5749.01, 5749.02, 5749.04,
5749.06, 5749.07, 5749.08, 5749.10, 5749.12, 5749.13, 5749.14, and
5749.15; to enact sections 4928.57 and 4928.571; and to repeal
section 1509.50 of the Revised Code
to
modify the rate and revenue allocation of the severance tax on oil
and natural gas, to create an electric bill credit, and to make an
appropriation.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 1509.02, 1509.34, 5703.052, 5749.01, 5749.02, 5749.04,
5749.06, 5749.07, 5749.08, 5749.10, 5749.12, 5749.13, 5749.14, and
5749.15 be amended and sections 4928.57 and 4928.571 of the Revised
Code be enacted to read as follows:
Sec.
1509.02.
There
is hereby created in the department of natural resources the division
of oil and gas resources management, which shall be administered by
the chief of the division of oil and gas resources management. The
division has sole and exclusive authority to regulate the permitting,
location, and spacing of oil and gas wells and production operations
within the state, excepting only those activities regulated under
federal laws for which oversight has been delegated to the
environmental protection agency and activities regulated under
sections 6111.02 to 6111.028 of the Revised Code. The regulation of
oil and gas activities is a matter of general statewide interest that
requires uniform statewide regulation, and this chapter and rules
adopted under it constitute a comprehensive plan with respect to all
aspects of the locating, drilling, well stimulation, completing, and
operating of oil and gas wells within this state, including site
construction and restoration, permitting related to those activities,
and the disposal of wastes from those wells. In order to assist the
division in the furtherance of its sole and exclusive authority as
established in this section, the chief may enter into cooperative
agreements with other state agencies for advice and consultation,
including visitations at the surface location of a well on behalf of
the division. Such cooperative agreements do not confer on other
state agencies any authority to administer or enforce this chapter
and rules adopted under it. In addition, such cooperative agreements
shall not be construed to dilute or diminish the division's sole and
exclusive authority as established in this section. Nothing in this
section affects the authority granted to the director of
transportation and local authorities in section 723.01 or 4513.34 of
the Revised Code, provided that the authority granted under those
sections shall not be exercised in a manner that discriminates
against, unfairly impedes, or obstructs oil and gas activities and
operations regulated under this chapter.
The
chief shall not hold any other public office, nor shall the chief be
engaged in any occupation or business that might interfere with or be
inconsistent with the duties as chief.
Money
collected by the chief pursuant to sections 1509.06, 1509.061,
1509.062, 1509.071, 1509.13, 1509.22, 1509.222, 1509.28, 1509.34,
1509.50,
and
5749.02 of the Revised Code, all civil penalties paid under section
1509.33 of the Revised Code, and, notwithstanding any section of the
Revised Code relating to the distribution or crediting of fines for
violations of the Revised Code, all fines imposed under divisions (A)
and (B) of section 1509.99 of the Revised Code and fines imposed
under divisions (C) and (D) of section 1509.99 of the Revised Code
for all violations prosecuted by the attorney general and for
violations prosecuted by prosecuting attorneys that do not involve
the transportation of brine by vehicle shall be deposited into the
state treasury to the credit of the oil and gas well fund, which is
hereby created. Fines imposed under divisions (C) and (D) of section
1509.99 of the Revised Code for violations prosecuted by prosecuting
attorneys that involve the transportation of brine by vehicle and
penalties associated with a compliance agreement entered into
pursuant to this chapter shall be paid to the county treasury of the
county where the violation occurred.
The
fund shall be used solely and exclusively for the purposes enumerated
in division (B) of section 1509.071 of the Revised Code, for the
expenses of the division associated with the administration of this
chapter and Chapter 1571. of the Revised Code and rules adopted under
them, and for expenses that are critical and necessary for the
protection of human health and safety and the environment related to
oil and gas production in this state. The expenses of the division in
excess of the moneys available in the fund shall be paid from general
revenue fund appropriations to the department.
Sec.
1509.34.
(A)(1)
If an owner fails to pay the fees imposed by this chapter, or if the
chief of the division of oil and gas resources management incurs
costs under division (F) of section 1509.071 of the Revised Code to
correct conditions associated with the owner's well that the chief
reasonably has determined are causing imminent health or safety
risks, the division of oil and gas resources management shall have a
priority lien against that owner's interest in the applicable well in
front of all other creditors for the amount of any such unpaid fees
and costs incurred. The chief shall file a statement in the office of
the county recorder of the county in which the applicable well is
located of the amount of the unpaid fees and costs incurred as
described in this division. The statement shall constitute a lien on
the owner's interest in the well as of the date of the filing. The
lien shall remain in force so long as any portion of the lien remains
unpaid or until the chief issues a certificate of release of the
lien. If the chief issues a certificate of release of the lien, the
chief shall file the certificate of release in the office of the
applicable county recorder.
(2)
A lien imposed under division (A)(1) of this section shall be in
addition to any lien imposed by the attorney general for failure to
pay the assessment imposed by
former
section
1509.50 of the Revised Code or the tax levied under division (A)(5)
or (6) of section 5749.02 of the Revised Code, as applicable.
(3)
If the attorney general cannot collect from a severer or an owner for
an outstanding balance of amounts due under
former
section
1509.50 of the Revised Code or of unpaid taxes levied under division
(A)(5) or (6) of section 5749.02 of the Revised Code, as applicable,
the tax commissioner may request the chief to impose a priority lien
against the owner's interest in the applicable well. Such a lien has
priority in front of all other creditors.
(B)
The chief promptly shall issue a certificate of release of a lien
under either of the following circumstances:
(1)
Upon the repayment in full of the amount of unpaid fees imposed by
this chapter or costs incurred by the chief under division (F) of
section 1509.071 of the Revised Code to correct conditions associated
with the owner's well that the chief reasonably has determined are
causing imminent health or safety risks;
(2)
Any other circumstance that the chief determines to be in the best
interests of the state.
(C)
The chief may modify the amount of a lien under this section. If the
chief modifies a lien, the chief shall file a statement in the office
of the county recorder of the applicable county of the new amount of
the lien.
(D)
An owner regarding which the division has recorded a lien against the
owner's interest in a well in accordance with this section shall not
transfer a well, lease, or mineral rights to another owner or person
until the chief issues a certificate of release for each lien against
the owner's interest in the well.
(E)
All money from the collection of liens under this section shall be
deposited in the state treasury to the credit of the oil and gas well
fund created in section 1509.02 of the Revised Code.
(F)
As used in this section, "former section 1509.50 of the Revised
Code" means section 1509.50 of the Revised Code as it existed
before its repeal by this act.
Sec.
4928.57.
(A)
The Ohio energy credit fund is created in the state treasury. The
fund shall consist of all money credited to the fund under section
5749.02 of the Revised Code and any other money transferred to the
fund. All investment earnings of the fund shall be credited to the
fund.
(B)
Disbursements from the fund shall be made to each electric
distribution utility, at the direction of the public utilities
commission, to pay for bill credit amounts applied to residential
customer electricity bills under section 4928.571 of the Revised
Code.
Sec.
4928.571.
(A)
Each electric distribution utility shall apply a bill credit to the
electricity bill of all electric distribution utility residential
customers in this state in accordance with this section.
(B)
The bill credit shall be applied to customer bills at the following
times:
(1)
For the first bill credit, at the time ordered by the public
utilities commission under division (D)(1)(b) of this section;
(2)
After the first bill credit is issued, not later than each subsequent
thirty-first day of December.
(C)
The bill credit shall be in the following amounts:
(1)
For the first bill credit, one hundred fifty dollars for each
electric distribution utility residential customer;
(2)
For each subsequent bill credit, the amount ordered by the commission
under division (D)(2)(b) of this section for each electric
distribution utility residential customer.
(D)
The commission shall do all of the following to implement the bill
credit under this section:
(1)
For the first bill credit:
(a)
Determine when the amount in the Ohio energy credit fund is
sufficient to pay the total cost of the first bill credit amount to
all electric distribution utility residential customer electric bills
in this state;
(b)
After making the determination under division (D)(1)(a) of this
section, order each utility to promptly apply the first bill credit
amount to all of the utility's residential customer electric bills;
(c)
Direct the treasurer of state to disburse money from the Ohio energy
credit fund to each electric distribution utility to pay all costs of
applying the first bill credit amount to residential customer
electric bills.
(2)
For each subsequent bill credit:
(a)
Determine the bill credit amount for each electric distribution
utility residential customer electric bill by evenly distributing, as
near as practical, the total amount in the Ohio energy credit fund
among the total number of electric distribution utility residential
customers in this state;
(b)
After determining the bill credit amount under division (D)(2)(a) of
this section, order each utility to apply the bill credit amount to
all of the utility's residential customer electric bills by not later
than the thirty-first day of December of each year;
(c)
Direct the treasurer of state to disburse money from the Ohio energy
credit fund to each electric distribution utility to pay all costs of
applying the bill credit amount to residential customer bills.
(3)
Take any other action the commission deems necessary.
Sec.
5703.052.
(A)
There is hereby created in the state treasury the tax refund fund,
from which refunds shall be paid for amounts illegally or erroneously
assessed or collected, or for any other reason overpaid, with respect
to taxes levied by Chapter 3796., 4301., 4305., 5726., 5728., 5729.,
5731., 5733., 5735., 5736., 5739., 5741., 5743., 5747., 5748., 5749.,
5751., or 5753. and sections 3737.71, 3905.35, 3905.36, 4303.33,
5707.03, 5725.18, 5727.28, 5727.38, 5727.81, and 5727.811 of the
Revised Code. Refunds for fees levied under sections 3734.90 to
3734.9014 of the Revised Code, wireless 9-1-1 charges imposed under
section 128.40 of the Revised Code, next generation 9-1-1 access fees
imposed under sections 128.41 and 128.42 of the Revised Code, or any
penalties assessed with respect to such fees or charges, that are
illegally or erroneously assessed or collected, or for any other
reason overpaid, also shall be paid from the fund. Refunds for
amounts illegally or erroneously assessed or collected by the tax
commissioner, or for any other reason overpaid, that are due under
former
section
1509.50 of the Revised Code
as
that section existed before its repeal by this act
shall
be paid from the fund. Refunds for amounts illegally or erroneously
assessed or collected by the commissioner, or for any other reason
overpaid to the commissioner, under sections 718.80 to 718.95 of the
Revised Code shall be paid from the fund. However, refunds for
amounts illegally or erroneously assessed or collected by the
commissioner, or for any other reason overpaid to the commissioner,
with respect to taxes levied under section 5739.101 of the Revised
Code shall not be paid from the tax refund fund, but shall be paid as
provided in section 5739.104 of the Revised Code.
(B)(1)
Upon certification by the tax commissioner to the treasurer of state
of a tax refund, a wireless 9-1-1 charge refund, a next generation
9-1-1 access fee refund, or another amount refunded, or by the
superintendent of insurance of a domestic or foreign insurance tax
refund, the treasurer of state shall place the amount certified to
the credit of the fund. The certified amount transferred shall be
derived from the receipts of the same tax, fee, wireless 9-1-1
charge, next generation 9-1-1 access fee, or other amount from which
the refund arose.
(2)
When a refund is for a tax, fee, wireless 9-1-1 charge, next
generation 9-1-1 access fee, or other amount that is not levied by
the state or that was illegally or erroneously distributed to a
taxing jurisdiction, the tax commissioner shall recover the amount of
that refund from the next distribution of that tax, fee, wireless
9-1-1 charge, next generation 9-1-1 access fee, or other amount that
otherwise would be made to the taxing jurisdiction. If the amount to
be recovered would exceed twenty-five per cent of the next
distribution of that tax, fee, wireless 9-1-1 charge, next generation
9-1-1 access fee, or other amount, the commissioner may spread the
recovery over more than one future distribution, taking into account
the amount to be recovered and the amount of the anticipated future
distributions. In no event may the commissioner spread the recovery
over a period to exceed seventy-two months.
Sec.
5749.01.
As
used in this chapter:
(A)
"Ton" shall mean two thousand pounds as measured at the
point and time of severance, after the removal of any impurities,
under such rules and regulations as the tax commissioner may
prescribe.
(B)
"Taxpayer" means any person required to pay the tax levied
by Chapter 5749. of the Revised Code.
(C)
"Natural resource" means all forms of coal, salt,
limestone, dolomite, sand, gravel, natural gas, and oil.
(D)
"Owner"
"Owner,"
"oil,"
and "exempt domestic well" have the same meanings as in
section 1509.01 of the Revised Code.
(E)
"Person" means any individual, firm, partnership,
association, joint stock company, corporation, or estate, or
combination thereof.
(F)
"Return" means any report or statement required to be filed
pursuant to Chapter 5749. of the Revised Code used to determine the
tax due.
(G)
"Severance" means the extraction or other removal of a
natural resource from the soil or water of this state.
(H)
"Severed" means the point at which the natural resource has
been separated from the soil or water in this state.
(I)
"Severer" means any person who actually removes the natural
resources from the soil or water in this state.
(J)
"Average quarterly spot price" means the following:
(1)
For oil, the average of each day's closing spot price reported for
one barrel of crude oil for the calendar quarter that begins six
months before the current calendar quarter, as reported by a publicly
available source determined by the commissioner;
(2)
For natural gas, the average of each day's closing spot price
reported for one thousand cubic feet of natural gas for the calendar
quarter that begins six months before the current calendar quarter,
as reported by a publicly available source determined by the
commissioner.
(K)
"Former section 1509.50 of the Revised Code" means section
1509.50 of the Revised Code as it existed before its repeal by this
act.
Sec.
5749.02.
(A)
For the purpose of providing revenue to administer the state's coal
mining and reclamation regulatory program, to meet the environmental
and resource management needs of this state,
to
reduce the electric bills of Ohioans,
and
to reclaim land affected by mining, an excise tax is hereby levied on
the privilege of engaging in the severance of natural resources from
the soil or water of this state. The tax shall be imposed upon the
severer at the rates prescribed by this section:
(1)
Eight cents per ton of coal;
(2)
Four cents per ton of salt;
(3)
Two cents per ton of limestone or dolomite;
(4)
Two cents per ton of sand and gravel;
(5)
Ten
cents per barrel
Seven
per cent
of
the
total volume of
oil
severed during the calendar quarter multiplied by the average
quarterly spot price for oil applicable to that quarter
;
(6)
Two
and one-half cents per thousand cubic feet
Seven
per cent
of
the
total volume of
natural
gas
severed during the calendar quarter multiplied by the average
quarterly spot price for natural gas applicable to that quarter
;
(7)
One cent per ton of clay, sandstone or conglomerate, shale, gypsum,
or quartzite;
(8)
Except as otherwise provided in this division or in rules adopted by
the reclamation forfeiture fund advisory board under section 1513.182
of the Revised Code, an additional fourteen cents per ton of coal
produced from an area under a coal mining and reclamation permit
issued under Chapter 1513. of the Revised Code for which the
performance security is provided under division (C)(2) of section
1513.08 of the Revised Code. Beginning July 1, 2007, if at the end of
a fiscal biennium the balance of the reclamation forfeiture fund
created in section 1513.18 of the Revised Code is equal to or greater
than ten million dollars, the rate levied shall be twelve cents per
ton. Beginning July 1, 2007, if at the end of a fiscal biennium the
balance of the fund is at least five million dollars, but less than
ten million dollars, the rate levied shall be fourteen cents per ton.
Beginning July 1, 2007, if at the end of a fiscal biennium the
balance of the fund is less than five million dollars, the rate
levied shall be sixteen cents per ton. Beginning July 1, 2009, not
later than thirty days after the close of a fiscal biennium, the
chief of the division of mineral resources management shall certify
to the tax commissioner the amount of the balance of the reclamation
forfeiture fund as of the close of the fiscal biennium. Any necessary
adjustment of the rate levied shall take effect on the first day of
the following January and shall remain in effect during the calendar
biennium that begins on that date.
(9)
An additional one and two-tenths cents per ton of coal mined by
surface mining methods.
(B)
After the director of budget and management transfers money from the
severance tax receipts fund as required in division (H) of section
5749.06 of the Revised Code, money remaining in the severance tax
receipts fund
,
except for money in the fund from the amounts due under section
1509.50 of the Revised Code,
shall be credited as follows:
(1)
All of the moneys in the fund from the tax levied in division (A)(1)
of this section shall be credited to the mining regulation and safety
fund created in section 1513.30 of the Revised Code.
(2)
The money in the fund from the tax levied in division (A)(2) of this
section shall be credited to the mining regulation and safety fund.
(3)
Of the moneys in the fund from the tax levied in divisions (A)(3) and
(4) of this section, seven and five-tenths per cent shall be credited
to the geological mapping fund and the remainder shall be credited to
the mining regulation and safety fund created in section 1513.30 of
the Revised Code.
(4)
Of the moneys in the fund from the tax levied in divisions (A)(5) and
(6) of this section,
ninety
eighty-five
and seven-tenths per cent shall be credited to the Ohio energy credit
fund created in section 4928.57 of the Revised Code, twelve and
nine-tenths
per
cent shall be credited to the oil and gas well fund
,
and
ten
one
and four-tenths
per
cent shall be credited to the geological mapping fund.
(5)
All of the moneys in the fund from the tax levied in division (A)(7)
of this section shall be credited to the mining regulation and safety
fund.
(6)
All of the moneys in the fund from the tax levied in division (A)(8)
of this section shall be credited to the reclamation forfeiture fund.
(7)
All of the moneys in the fund from the tax levied in division (A)(9)
of this section shall be credited to the mining regulation and safety
fund.
(C)
When, at the close of any fiscal year, the chief finds that the
balance of the reclamation forfeiture fund, plus the estimated
revenues from the tax levied by division (A)(8) of this section for
the remainder of the calendar year that includes the close of the
fiscal year, are sufficient to complete the reclamation of all lands
for which the performance security has been provided under division
(C)(2) of section 1513.08 of the Revised Code, the purposes for which
the tax under division (A)(8) of this section is levied shall be
deemed accomplished at the end of that calendar year. The chief,
within thirty days after the close of the fiscal year, shall certify
those findings to the tax commissioner, and the tax levied under
division (A)(8) of this section shall cease to be imposed for the
subsequent calendar year after the last day of that calendar year on
coal produced under a coal mining and reclamation permit issued under
Chapter 1513. of the Revised Code if the permittee has made tax
payments under division (A)(8) of this section during each of the
preceding five full calendar years. Not later than thirty days after
the close of a fiscal year, the chief shall certify to the tax
commissioner the identity of any permittees who accordingly no longer
are required to pay the tax levied under division (A)(8) of this
section for the subsequent calendar year.
(D)
On or before the last day of the first month of each calendar
quarter, the tax commissioner shall certify and post to the
department of taxation's web site the average quarterly spot price
applicable to oil and natural gas for that quarter.
Sec.
5749.04.
No
severer shall sever or sell a natural resource in this state without
first having obtained a permit from or having registered with the
department of natural resources.
The
commissioner may request that the department of natural resources
revoke the permit or registration of a severer or owner if the
commissioner finds that the severer or owner has failed to comply
with
former
section
1509.50 or Chapter 5749. of the Revised Code.
Upon
receipt of such a request, that officer may revoke the permit or
registration.
Except
as provided in section 5749.03 of the Revised Code, before severing a
natural resource each severer shall file an application with the
commissioner on a form prescribed by the commissioner to establish a
severance tax account. The application may require the severer to
disclose any information the commissioner considers necessary to
establish that account.
Sec.
5749.06.
(A)(1)
Each severer liable for the tax imposed by section 5749.02 of the
Revised Code
and each severer or owner liable for the amounts due under section
1509.50 of the Revised Code, except for any amount due under division
(B)(2) of that section,
shall make and file returns with the tax commissioner in the
prescribed form and at the prescribed times, computing and reflecting
therein the tax as required by this chapter
and amounts due under section 1509.50 of the Revised Code
.
(2)
The returns shall be filed for every calendar quarter, as required by
this section, unless a different return period is prescribed for a
taxpayer by the commissioner.
(B)(1)
A separate return shall be filed for each calendar quarter, or other
period, or any part thereof, during which the severer holds a permit
or has registered as provided by section 5749.04 of the Revised Code,
or is required to hold the permit or registration, or during which an
owner is required to file a return. The return shall be filed on or
before the fifteenth day of the second month following the end of
each return period. The tax due is payable along with the return. All
such returns shall contain such information as the commissioner may
require to fairly administer the tax.
(2)
All returns shall be signed by the severer
or owner, as applicable
,
shall contain the full and complete information requested, and shall
be made under penalty of perjury.
(C)
If the commissioner believes that quarterly payments of tax would
result in a delay that might jeopardize the collection of such tax
payments, the commissioner may order that such payments be made
weekly, or more frequently if necessary, such payments to be made not
later than seven days following the close of the period for which the
jeopardy payment is required. Such an order shall be delivered to the
taxpayer in the manner provided in section 5703.37 of the Revised
Code and shall remain in effect until the commissioner notifies the
taxpayer to the contrary.
(D)
Upon good cause the commissioner may extend for thirty days the
period for filing any notice or return required to be filed under
this section, and may remit all or a part of penalties that may
become due under this chapter.
(E)
Any tax
and
any amount due under section 1509.50 of the Revised Code
not
paid by the day the tax
or
amount
is
due shall bear interest computed at the rate per annum prescribed by
section 5703.47 of the Revised Code
on
that amount due
from
the day that the
amount
tax
was
originally required to be paid to the day of actual payment or to the
day an assessment was issued under section 5749.07 or 5749.10 of the
Revised Code, whichever occurs first.
(F)
A severer
or
owner, as applicable,
that
fails to file a complete return or pay the full amount due under this
chapter within the time prescribed, including any extensions of time
granted by the commissioner, shall be subject to a penalty not to
exceed the greater of fifty dollars or ten per cent of the amount due
for the period.
(G)(1)
A severer
or
owner, as applicable,
shall
remit payments electronically and, if required by the commissioner,
file each return electronically. The commissioner may require that
the severer
or
owner
use
the Ohio business gateway, as defined in section 718.01 of the
Revised Code, or another electronic means to file returns and remit
payments electronically.
(2)
A severer
or
owner
that
is required to remit payments electronically under this section may
apply to the commissioner, in the manner prescribed by the
commissioner, to be excused from that requirement. The commissioner
may excuse a severer
or
owner
from
the requirements of division (G) of this section for good cause.
(3)
If a severer
or
owner
that
is required to remit payments or file returns electronically under
this section fails to do so, the commissioner may impose a penalty on
the severer
or
owner
not
to exceed the following:
(a)
For the first or second payment or return the severer
or
owner
fails
to remit or file electronically, the greater of five per cent of the
amount of the payment that was required to be remitted or twenty-five
dollars;
(b)
For every payment or return after the second that the severer
or
owner
fails
to remit or file electronically, the greater of ten per cent of the
amount of the payment that was required to be remitted or fifty
dollars.
(H)(1)
All amounts that the commissioner receives under this section shall
be deemed to be revenue from taxes imposed under this chapter or from
the amount due under section 1509.50 of the Revised Code, as
applicable, and shall be deposited in the severance tax receipts
fund, which is hereby created in the state treasury.
(2)
The director of budget and management shall transfer from the
severance tax receipts fund, as necessary, to the tax refund fund
amounts equal to the refunds certified by the commissioner under
section 5749.08 of the Revised Code. Any amount transferred under
division (H)(2) of this section shall be derived from receipts of the
same tax or other amount from which the refund arose.
(3)
After the director of budget and management makes any transfer
required by division (H)(2) of this section, but not later than the
twenty-fifth day of each month, the commissioner shall certify to the
director the total amount remaining in the severance tax receipts
fund organized according to the amount attributable to each natural
resource and according to the amount attributable to a tax imposed by
this chapter
and the amounts due under section 1509.50 of the Revised Code,
and shall provide for payment to the funds specified in division (B)
of section 5749.02 of the Revised Code.
(I)
Penalties imposed under this section are in addition to any other
penalty imposed under this chapter and shall be considered as revenue
arising from the tax levied under this chapter or the amount due
under
former
section
1509.50 of the Revised Code, as applicable. The commissioner may
collect any penalty or interest imposed under this section in the
same manner as provided for the making of an assessment in section
5749.07 of the Revised Code. The commissioner may abate all or a
portion of such interest or penalties and may adopt rules governing
such abatements.
(J)
For purposes of this section:
(1)
"Tax imposed by section 5749.02 of the Revised Code" or
"tax" includes amounts due under former section 1509.50 of
the Revised Code.
(2)
"Severer" includes an owner as defined in section 1509.01
of the Revised Code, with regard to amounts due from an owner under
former section 1509.50 of the Revised Code.
Sec.
5749.07.
(A)
If any severer required by this chapter to make and file returns and
pay the tax
levied
imposed
by
section 5749.02 of the Revised Code
,
or any severer or owner liable for the amounts due under section
1509.50 of the Revised Code,
fails to make such return or pay such tax
or amounts
,
the tax commissioner may make an assessment against the severer
or
owner
based
upon any information in the commissioner's possession.
No
assessment shall be made or issued against any severer for any tax
imposed by section 5749.02 of the Revised Code
or
against any severer or owner for any amount due under section 1509.50
of the Revised Code
more
than four years after the return was due or was filed, whichever is
later. This section does not bar an assessment against a severer
or
owner
who
fails to file a return as required by this chapter, or who files a
fraudulent return.
The
commissioner shall give the party assessed written notice of such
assessment in the manner provided in section 5703.37 of the Revised
Code. With the notice, the commissioner shall provide instructions on
how to petition for reassessment and request a hearing on the
petition.
(B)
Unless the party assessed files with the commissioner within sixty
days after service of the notice of assessment a written petition for
reassessment signed by the party assessed or that party's authorized
agent having knowledge of the facts, the assessment becomes final and
the amount of the assessment is due and payable from the party
assessed to the treasurer of state. The petition shall indicate the
objections of the party assessed, but additional objections may be
raised in writing if received by the commissioner prior to the date
shown on the final determination. If the petition has been properly
filed, the commissioner shall proceed under section 5703.60 of the
Revised Code.
(C)
After an assessment becomes final, if any portion of the assessment
remains unpaid, including accrued interest, a certified copy of the
commissioner's entry making the assessment final may be filed in the
office of the clerk of the court of common pleas in the county in
which the party assessed resides or in which the party's business is
conducted. Such filing shall include the debtor's name and last known
address. If the party assessed maintains no place of business in this
state and is not a resident of this state, the certified copy of the
entry may be filed in the office of the clerk of the court of common
pleas of Franklin county.
Immediately
upon the filing of such entry, the clerk shall enter a judgment for
the state against the party assessed in the amount shown on the
entry. The judgment may be filed by the clerk in a loose-leaf book
entitled "special judgments for state severance tax," and
shall have the same effect as other judgments. Execution shall issue
upon the judgment upon the request of the commissioner, and all laws
applicable to sales on execution shall apply to sales made under the
judgment.
If
the assessment is not paid in its entirety within sixty days after
the day the assessment is issued, the portion of the assessment
consisting of tax due
or
amounts due under section 1509.50 of the Revised Code
shall
bear interest at the rate per annum prescribed by section 5703.47 of
the Revised Code from the day the commissioner issues the assessment
until it is paid or until it is certified to the attorney general for
collection under section 131.02 of the Revised Code, whichever comes
first. If the unpaid portion of the assessment is certified to the
attorney general for collection, the entire unpaid portion of the
assessment shall bear interest at the rate per annum prescribed by
section 5703.47 of the Revised Code from the date of certification
until the date it is paid in its entirety. Interest shall be paid in
the same manner as the tax and may be collected by the issuance of an
assessment under this section.
(D)
All money collected by the commissioner under this section shall be
paid to the treasurer of state, and when paid shall be considered as
revenue arising from the tax imposed by section 5749.02 of the
Revised Code
and the amount due under section 1509.50 of the Revised Code, as
applicable
.
(E)
For purposes of this section:
(1)
"Tax imposed by section 5749.02 of the Revised Code" or
"tax" includes amounts due under former section 1509.50 of
the Revised Code.
(2)
"Severer" includes an owner as defined in section 1509.01
of the Revised Code, with regard to amounts due from an owner under
former section 1509.50 of the Revised Code.
Sec.
5749.08.
The
tax commissioner shall refund
to
taxpayers
amounts
paid under this chapter or
former
section
1509.50 of the Revised Code that were paid illegally or erroneously
or paid on an illegal or erroneous assessment. Applications for
refund shall be filed with the commissioner, on the form prescribed
by the commissioner, within four years from the date of the illegal
or erroneous payment. On the filing of the application, the
commissioner shall determine the amount of refund to which the
applicant is entitled, plus interest computed in accordance with
section 5703.47 of the Revised Code from the date of the payment of
an erroneous or illegal assessment until the date the refund is paid.
If the amount is not less than that claimed, the commissioner shall
certify the amount to the director of budget and management and
treasurer of state for payment from the tax refund fund created by
section 5703.052 of the Revised Code. If the amount is less than that
claimed, the commissioner shall proceed in accordance with section
5703.70 of the Revised Code.
Sec.
5749.10.
If
the tax commissioner finds that a
taxpayer,
person
liable for tax under this chapter or for any amount due under
former
section
1509.50 of the Revised Code is about to depart from the state, or
remove the
taxpayer's
person's
property
therefrom, or conceal
the
taxpayer's
its
person
or property, or do any other act tending to prejudice or to render
wholly or partly ineffectual proceedings to collect such tax or other
amount due unless such proceedings are brought without delay, or if
the commissioner believes that the collection of the tax or amount
due from any
taxpayer
person
will
be jeopardized by delay, the commissioner shall give notice of such
findings to
such
taxpayer
the
person
together
with the demand for an immediate return and immediate payment of such
tax or other amount due, with penalty as provided in section 5749.15
of the Revised Code, whereupon such tax or other amount due shall
become immediately due and payable. In such cases the commissioner
may immediately file an entry with the clerk of the court of common
pleas in the same manner and with the same effect as provided in
section 5749.07 of the Revised Code, provided that if
such
taxpayer
the
person
,
within five days from notice of the assessment, furnishes evidence
satisfactory to the commissioner, under
the
regulations prescribed
rules
adopted
by
the commissioner, that the
taxpayer
person
is
not in default in making returns or paying any tax prescribed by this
chapter or amount due under
former
section
1509.50 of the Revised Code, or that the
taxpayer
person
will
duly return and pay, or post bond satisfactory to the commissioner
conditioned upon payment of the tax or other amount finally
determined to be due, then such tax or other amount due shall not be
payable prior to the time and manner otherwise fixed for payment
under section 5749.07 of the Revised Code, and the person assessed
shall be restored the rights granted under such section. Upon
satisfaction of the assessment the commissioner shall order the bond
cancelled, securities released, and judgment vacated.
Any
assessment issued under this section shall bear interest as
prescribed under section 5749.07 of the Revised Code.
Sec.
5749.12.
Any
nonresident of this state who accepts the privilege extended by the
laws of this state to nonresidents severing natural resources in this
state, and any resident of this state who subsequently becomes a
nonresident or conceals the resident's whereabouts, makes the
secretary of state of Ohio the person's agent for the service of
process or notice in any assessment, action, or proceedings
instituted in this state against such person under this chapter or
for purposes of amounts due under
former
section
1509.50 of the Revised Code.
Such
process or notice shall be served as provided under section 5703.37
of the Revised Code.
Sec.
5749.13.
The
tax commissioner may prescribe requirements as to the keeping of
records and other pertinent documents and the filing of copies of
federal income tax returns and determinations. The commissioner may
require any person, by rule or by notice served on that person, to
keep such records as the commissioner considers necessary to show
whether that person is liable, and the extent of liability, for the
tax imposed under this chapter and the amount due under
former
section
1509.50 of the Revised Code. Such records and other documents shall
be open during business hours to the inspection of the commissioner,
and shall be preserved for a period of four years after the date the
return was required to be filed or actually was filed, whichever is
later, unless the commissioner, in writing, consents to their
destruction within that period, or by order requires that they be
kept longer.
Sec.
5749.14.
The
tax commissioner shall enforce and administer this chapter
and applicable provisions of section 1509.50 of the Revised Code
.
In addition to any other powers conferred upon the commissioner by
law, the commissioner may:
(A)
Prescribe all forms required to be filed pursuant to this chapter;
(B)
Promulgate
Adopt
such
rules as the commissioner finds necessary to carry out this chapter
and applicable provisions of section 1509.50 of the Revised Code
;
(C)
Appoint and employ such personnel as may be necessary to carry out
the duties imposed upon the commissioner by this chapter.
Sec.
5749.15.
Any
person who fails to file a return or pay the tax as required under
this chapter or other amount due under
former
section
1509.50 of the Revised Code who is assessed such taxes or other
amount due pursuant to section 5749.07 or 5749.10 of the Revised Code
may be liable for a penalty of up to twenty-five per cent of the
amount assessed. The tax commissioner may adopt rules relating to the
imposition and remission of penalties imposed under this section.
Section
2.
That
existing sections 1509.02, 1509.34, 5703.052, 5749.01, 5749.02,
5749.04, 5749.06, 5749.07, 5749.08, 5749.10, 5749.12, 5749.13,
5749.14, and 5749.15 of the Revised Code are hereby repealed.
Section
3.
That
section 1509.50 of the Revised Code is hereby repealed, effective on
the first day of the first calendar quarter beginning on or after the
effective date of this section.
Section
4.
Not
later than ten days after the effective date of this section, the
Director of Budget and Management shall transfer $150,000,000 from
the Oil and Gas Well Fund (Fund 5180), used by the Department of
Natural Resources, to the Ohio Energy Credit Fund (Fund 5DT1) created
in section 4928.57 of the Revised Code, as enacted by this act.
Section
5.
All
items in this act are hereby appropriated as designated out of any
moneys in the state treasury to the credit of the designated fund.
For all operating appropriations made in this act, those in the first
column are for fiscal year 2026 and those in the second column are
for fiscal year 2027. The operating appropriations made in this act
are in addition to any other operating appropriations made for these
fiscal years.
Section
6.
1
2
3
4
5
A
PUC
PUBLIC UTILITIES COMMISSION OF OHIO
B
Dedicated
Purpose Fund Group
C
5DT1
870652
Ohio
Energy Credit Fund
$0
$150,000,000
D
Dedicated
Purpose Fund Group Total
$0
$150,000,000
OHIO
ENERGY CREDIT FUND
The
foregoing appropriation item 870652, Energy Credit Fund, shall be
used to pay for bill credit amounts applied to residential customer
electricity bills pursuant to section 4928.571 of the Revised Code.
Section
7.
Within
the limits set forth in this act, the Director of Budget and
Management shall establish accounts indicating the source and amount
of funds for each appropriation made in this act, and shall determine
the manner in which appropriation accounts shall be maintained.
Expenditures from operating appropriations contained in this act
shall be accounted for as though made in, and are subject to all
applicable provisions of, H.B. 96 of the 136th General Assembly.
Section
8.
The
amendment by this act of sections 1509.02, 1509.34, 5703.052,
5749.01, 5749.02, 5749.04, 5749.06, 5749.07, 5749.08, 5749.10,
5749.12, 5749.13, 5749.14, and 5749.15 of the Revised Code applies on
and after the first day of the first calendar quarter beginning on or
after the effective date of this section.