Reduce tangible personal property tax for pipe-line companies

As Introduced

136th
General Assembly

Regular
Session
S. B. No. 116

2025-2026

Senator Lang

To
amend section 5727.111 of the Revised Code
to
reduce the tangible personal property tax assessment rate for
pipe-line companies.

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

Section
1.
That
section 5727.111 of the Revised Code be amended to read as follows:

Sec.
5727.111.
The
taxable property of each public utility, except a railroad company,
and of each interexchange telecommunications company shall be
assessed at the following percentages of true value:

(A)
In the case of a rural electric company, fifty per cent in the case
of its taxable transmission and distribution property and its energy
conversion equipment, and twenty-five per cent for all its other
taxable property;

(B)
In the case of a telephone or telegraph company, twenty-five per cent
for taxable property first subject to taxation in this state for tax
year 1995 or thereafter for tax years before tax year 2007, and
pursuant to division (H) of section 5711.22 of the Revised Code for
tax year 2007 and thereafter, and the following for all other taxable
property:

(1)
For tax years prior to 2005, eighty-eight per cent;

(2)
For tax year 2005, sixty-seven per cent;

(3)
For tax year 2006, forty-six per cent;

(4)
For tax year 2007 and thereafter, pursuant to division (H) of section
5711.22 of the Revised Code.

(C)
Twenty-five per cent in the case of (1) a natural gas company or (2)
a water-works company for taxable property first subject to taxation
in this state for tax year 2017 and thereafter;

(D)
Eighty-eight per cent in the case of
a
pipe-line company,
a
water-works company for taxable property first subject to taxation in
this state before tax year 2017, or a heating company;

(E)(1)
For tax year 2005, eighty-eight per cent in the case of the taxable
transmission and distribution property of an electric company, and
twenty-five per cent for all its other taxable property;

(2)
For tax year 2006 and each tax year thereafter, in the case of an
electric company, eighty-five per cent in the case of its taxable
transmission and distribution property and its energy conversion
equipment, and twenty-four per cent for all its other taxable
property.

(F)(1)
Twenty-five per cent in the case of an interexchange
telecommunications company for tax years before tax year 2007;

(2)
Pursuant to division (H) of section 5711.22 of the Revised Code for
tax year 2007 and thereafter.

(G)
Twenty-five per cent in the case of a water transportation company;

(H)
For tax year 2011 and each tax year thereafter in the case of an
energy company, twenty-four per cent in the case of its taxable
production equipment, and eighty-five per cent for all its other
taxable property.

(I)
Twenty-five per cent in the case of a pipe-line company.

Section
2.
That
existing section 5727.111 of the Revised Code is hereby repealed.

Section
3.
The
amendment by this act of section 5727.111 of the Revised Code applies
to tax year 2025 and every tax year thereafter.