Bill Text: OH HB516 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To modify the school district reimbursement schedule for the loss of revenue from the tangible personal property tax phase-out.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Introduced - Dead) 2010-05-17 - To Finance & Appropriations [HB516 Detail]

Download: Ohio-2009-HB516-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 516

Representative Pillich 

Cosponsors: Representatives Belcher, Dyer, Evans, Pryor, Yuko, Harwood 

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A BILL

To amend sections 5751.20 and 5751.21 of the Revised

1

Code to modify the school district reimbursement

2

schedule for the loss of revenue from the tangible

3

personal property tax phase-out.

4

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

Section 1. That sections 5751.20 and 5751.21 of the Revised	5
Code be amended to read as follows:	6

Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of	7
the Revised Code:	8

(1) "School district," "joint vocational school district,"	9
"local taxing unit," "recognized valuation," "fixed-rate levy,"	10
and "fixed-sum levy" have the same meanings as used in section	11
5727.84 of the Revised Code.	12

(2) "State education aid" for a school district means the	13
following:	14

(a) For fiscal years prior to fiscal year 2010, the sum of	15
state aid amounts computed for the district under division (A) of	16
section 3317.022 of the Revised Code, including the amounts	17
calculated under sections 3317.029 and 3317.0217 of the Revised	18
Code; divisions (C)(1), (C)(4), (D), (E), and (F) of section	19
3317.022; divisions (B), (C), and (D) of section 3317.023;	20
divisions (L) and (N) of section 3317.024; section 3317.0216; and	21
any unit payments for gifted student services paid under sections	22
3317.05, 3317.052, and 3317.053 of the Revised Code; except that,	23
for fiscal years 2008 and 2009, the amount computed for the	24
district under Section 269.20.80 of H.B. 119 of the 127th general	25
assembly and as that section subsequently may be amended shall be	26
substituted for the amount computed under division (D) of section	27
3317.022 of the Revised Code, and the amount computed under	28
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	29
that section subsequently may be amended shall be included.	30

(b) For fiscal year 2010 and for each fiscal year thereafter,	31
the sum of the amounts computed under sections 3306.052, 3306.12,	32
3306.13, 3306.19, 3306.191, and 3306.192 of the Revised Code.	33

(3) "State education aid" for a joint vocational school	34
district means the following:	35

(a) For fiscal years prior to fiscal year 2010, the sum of	36
the state aid computed for the district under division (N) of	37
section 3317.024 and section 3317.16 of the Revised Code, except	38
that, for fiscal years 2008 and 2009, the amount computed under	39
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	40
that section subsequently may be amended shall be included.	41

(b) For fiscal years 2010 and 2011, the amount paid in	42
accordance with the section of this act entitled "FUNDING FOR	43
JOINT VOCATIONAL SCHOOL DISTRICTS."	44

(4) "State education aid offset" means the amount determined	45
for each school district or joint vocational school district under	46
division (A)(1) of section 5751.21 of the Revised Code.	47

(5) "Machinery and equipment property tax value loss" means	48
the amount determined under division (C)(1) of this section.	49

(6) "Inventory property tax value loss" means the amount	50
determined under division (C)(2) of this section.	51

(7) "Furniture and fixtures property tax value loss" means	52
the amount determined under division (C)(3) of this section.	53

(8) "Machinery and equipment fixed-rate levy loss" means the	54
amount determined under division (D)(1) of this section.	55

(9) "Inventory fixed-rate levy loss" means the amount	56
determined under division (D)(2) of this section.	57

(10) "Furniture and fixtures fixed-rate levy loss" means the	58
amount determined under division (D)(3) of this section.	59

(11) "Total fixed-rate levy loss" means the sum of the	60
machinery and equipment fixed-rate levy loss, the inventory	61
fixed-rate levy loss, the furniture and fixtures fixed-rate levy	62
loss, and the telephone company fixed-rate levy loss.	63

(12) "Fixed-sum levy loss" means the amount determined under	64
division (E) of this section.	65

(13) "Machinery and equipment" means personal property	66
subject to the assessment rate specified in division (F) of	67
section 5711.22 of the Revised Code.	68

(14) "Inventory" means personal property subject to the	69
assessment rate specified in division (E) of section 5711.22 of	70
the Revised Code.	71

(15) "Furniture and fixtures" means personal property subject	72
to the assessment rate specified in division (G) of section	73
5711.22 of the Revised Code.	74

(16) "Qualifying levies" are levies in effect for tax year	75
2004 or applicable to tax year 2005 or approved at an election	76
conducted before September 1, 2005. For the purpose of determining	77
the rate of a qualifying levy authorized by section 5705.212 or	78
5705.213 of the Revised Code, the rate shall be the rate that	79
would be in effect for tax year 2010.	80

(17) "Telephone property" means tangible personal property of	81
a telephone, telegraph, or interexchange telecommunications	82
company subject to an assessment rate specified in section	83
5727.111 of the Revised Code in tax year 2004.	84

(18) "Telephone property tax value loss" means the amount	85
determined under division (C)(4) of this section.	86

(19) "Telephone property fixed-rate levy loss" means the	87
amount determined under division (D)(4) of this section.	88

(B) The commercial activities tax receipts fund is hereby	89
created in the state treasury and shall consist of money arising	90
from the tax imposed under this chapter. Eighty-five	91
one-hundredths of one per cent of the money credited to that fund	92
shall be credited to the tax reform system implementation fund,	93
which is hereby created in the state treasury, and shall be used	94
to defray the costs incurred by the department of taxation in	95
administering the tax imposed by this chapter and in implementing	96
tax reform measures. The remainder in the commercial activities	97
tax receipts fund shall be credited for each fiscal year in the	98
following percentages to the general revenue fund, to the school	99
district tangible property tax replacement fund, which is hereby	100
created in the state treasury for the purpose of making the	101
payments described in section 5751.21 of the Revised Code, and to	102
the local government tangible property tax replacement fund, which	103
is hereby created in the state treasury for the purpose of making	104
the payments described in section 5751.22 of the Revised Code, in	105
the following percentages:	106

Fiscal year	General Revenue Fund	School District Tangible Property Tax Replacement Fund	Local Government Tangible Property Tax Replacement Fund		107
2006	67.7%	22.6%	9.7%		108
2007	0%	70.0%	30.0%		109
2008	0%	70.0%	30.0%		110
2009	0%	70.0%	30.0%		111
2010	0%	70.0%	30.0%		112
2011	0%	70.0%	30.0%		113
2012	5.3%	70.0%	24.7%		114
2013	10.6%	70.0%	19.4%		115
2014	14.1%	70.0%	15.9%		116
2015	17.6%	70.0%	12.4%		117
2016	21.1%	70.0%	8.9%		118
2017	24.6%	70.0%	5.4%		119
2018	28.1%	70.0%	1.9%		120
2019 and thereafter	30%	70%	0%		121

(C) Not later than September 15, 2005, the tax commissioner	122
shall determine for each school district, joint vocational school	123
district, and local taxing unit its machinery and equipment,	124
inventory property, furniture and fixtures property, and telephone	125
property tax value losses, which are the applicable amounts	126
described in divisions (C)(1), (2), (3), and (4) of this section,	127
except as provided in division (C)(5) of this section:	128

(1) Machinery and equipment property tax value loss is the	129
taxable value of machinery and equipment property as reported by	130
taxpayers for tax year 2004 multiplied by:	131

(a) For tax year 2006, thirty-three and eight-tenths per	132
cent;	133

(b) For tax year 2007, sixty-one and three-tenths per cent;

134

(c) For tax year 2008, eighty-three per cent;

135

(d) For tax year 2009 and thereafter, one hundred per cent.

136

(2) Inventory property tax value loss is the taxable value of	137
inventory property as reported by taxpayers for tax year 2004	138
multiplied by:	139

(a) For tax year 2006, a fraction, the numerator of which is	140
five and three-fourths and the denominator of which is	141
twenty-three;	142

(b) For tax year 2007, a fraction, the numerator of which is	143
nine and one-half and the denominator of which is twenty-three;	144

(c) For tax year 2008, a fraction, the numerator of which is	145
thirteen and one-fourth and the denominator of which is	146
twenty-three;	147

(d) For tax year 2009 and thereafter a fraction, the	148
numerator of which is seventeen and the denominator of which is	149
twenty-three.	150

(3) Furniture and fixtures property tax value loss is the	151
taxable value of furniture and fixture property as reported by	152
taxpayers for tax year 2004 multiplied by:	153

(a) For tax year 2006, twenty-five per cent;

154

(b) For tax year 2007, fifty per cent;

155

(c) For tax year 2008, seventy-five per cent;

156

(d) For tax year 2009 and thereafter, one hundred per cent.

157

The taxable value of property reported by taxpayers used in	158
divisions (C)(1), (2), and (3) of this section shall be such	159
values as determined to be final by the tax commissioner as of	160
August 31, 2005. Such determinations shall be final except for any	161
correction of a clerical error that was made prior to August 31,	162
2005, by the tax commissioner.	163

(4) Telephone property tax value loss is the taxable value of	164
telephone property as taxpayers would have reported that property	165
for tax year 2004 if the assessment rate for all telephone	166
property for that year were twenty-five per cent, multiplied by:	167

(a) For tax year 2006, zero per cent;

168

(b) For tax year 2007, zero per cent;

169

(c) For tax year 2008, zero per cent;

170

(d) For tax year 2009, sixty per cent;

171

(e) For tax year 2010, eighty per cent;

172

(f) For tax year 2011 and thereafter, one hundred per cent.

173

(5) Division (C)(5) of this section applies to any school	174
district, joint vocational school district, or local taxing unit	175
in a county in which is located a facility currently or formerly	176
devoted to the enrichment or commercialization of uranium or	177
uranium products, and for which the total taxable value of	178
property listed on the general tax list of personal property for	179
any tax year from tax year 2001 to tax year 2004 was fifty per	180
cent or less of the taxable value of such property listed on the	181
general tax list of personal property for the next preceding tax	182
year.	183

In computing the fixed-rate levy losses under divisions	184
(D)(1), (2), and (3) of this section for any school district,	185
joint vocational school district, or local taxing unit to which	186
division (C)(5) of this section applies, the taxable value of such	187
property as listed on the general tax list of personal property	188
for tax year 2000 shall be substituted for the taxable value of	189
such property as reported by taxpayers for tax year 2004, in the	190
taxing district containing the uranium facility, if the taxable	191
value listed for tax year 2000 is greater than the taxable value	192
reported by taxpayers for tax year 2004. For the purpose of making	193
the computations under divisions (D)(1), (2), and (3) of this	194
section, the tax year 2000 valuation is to be allocated to	195
machinery and equipment, inventory, and furniture and fixtures	196
property in the same proportions as the tax year 2004 values. For	197
the purpose of the calculations in division (A) of section 5751.21	198
of the Revised Code, the tax year 2004 taxable values shall be	199
used.	200

To facilitate the calculations required under division (C) of	201
this section, the county auditor, upon request from the tax	202
commissioner, shall provide by August 1, 2005, the values of	203
machinery and equipment, inventory, and furniture and fixtures for	204
all single-county personal property taxpayers for tax year 2004.	205

(D) Not later than September 15, 2005, the tax commissioner	206
shall determine for each tax year from 2006 through 2009 for each	207
school district, joint vocational school district, and local	208
taxing unit its machinery and equipment, inventory, and furniture	209
and fixtures fixed-rate levy losses, and for each tax year from	210
2006 through 2011 its telephone property fixed-rate levy loss.	211
Except as provided in division (F) of this section, such losses	212
are the applicable amounts described in divisions (D)(1), (2),	213
(3), and (4) of this section:	214

(1) The machinery and equipment fixed-rate levy loss is the	215
machinery and equipment property tax value loss multiplied by the	216
sum of the tax rates of fixed-rate qualifying levies.	217

(2) The inventory fixed-rate loss is the inventory property	218
tax value loss multiplied by the sum of the tax rates of	219
fixed-rate qualifying levies.	220

(3) The furniture and fixtures fixed-rate levy loss is the	221
furniture and fixture property tax value loss multiplied by the	222
sum of the tax rates of fixed-rate qualifying levies.	223

(4) The telephone property fixed-rate levy loss is the	224
telephone property tax value loss multiplied by the sum of the tax	225
rates of fixed-rate qualifying levies.	226

(E) Not later than September 15, 2005, the tax commissioner	227
shall determine for each school district, joint vocational school	228
district, and local taxing unit its fixed-sum levy loss. The	229
fixed-sum levy loss is the amount obtained by subtracting the	230
amount described in division (E)(2) of this section from the	231
amount described in division (E)(1) of this section:	232

(1) The sum of the machinery and equipment property tax value	233
loss, the inventory property tax value loss, and the furniture and	234
fixtures property tax value loss, and, for 2008 through 2017, the	235
telephone property tax value loss of the district or unit	236
multiplied by the sum of the fixed-sum tax rates of qualifying	237
levies. For 2006 through 2010, this computation shall include all	238
qualifying levies remaining in effect for the current tax year and	239
any school district levies imposed under section 5705.194 or	240
5705.213 of the Revised Code that are qualifying levies not	241
remaining in effect for the current year. For 2011 through 2017	242
in the case of school district levies imposed under section	243
5705.194 or 5705.213 of the Revised Code and for all years after	244
2010 in the case of other fixed-sum leviesand thereafter, this	245
computation shall include only qualifying levies remaining in	246
effect for the current year. For purposes of this computation, a	247
qualifying school district levy imposed under section 5705.194 or	248
5705.213 of the Revised Code remains in effect in a year after	249
2010 only if, for that year, the board of education levies a	250
school district levy imposed under section 5705.194, 5705.199,	251
5705.213, or 5705.219 of the Revised Code for an annual sum at	252
least equal to the annual sum levied by the board in tax year 2004	253
less the amount of the payment certified under this division for	254
2006.	255

(2) The total taxable value in tax year 2004 less the sum of	256
the machinery and equipment, inventory, furniture and fixtures,	257
and telephone property tax value losses in each school district,	258
joint vocational school district, and local taxing unit multiplied	259
by one-half of one mill per dollar.	260

(3) For the calculations in divisions (E)(1) and (2) of this	261
section, the tax value losses are those that would be calculated	262
for tax year 2009 under divisions (C)(1), (2), and (3) of this	263
section and for tax year 2011 under division (C)(4) of this	264
section.	265

(4) To facilitate the calculation under divisions (D) and (E)	266
of this section, not later than September 1, 2005, any school	267
district, joint vocational school district, or local taxing unit	268
that has a qualifying levy that was approved at an election	269
conducted during 2005 before September 1, 2005, shall certify to	270
the tax commissioner a copy of the county auditor's certificate of	271
estimated property tax millage for such levy as required under	272
division (B) of section 5705.03 of the Revised Code, which is the	273
rate that shall be used in the calculations under such divisions.	274

If the amount determined under division (E) of this section	275
for any school district, joint vocational school district, or	276
local taxing unit is greater than zero, that amount shall equal	277
the reimbursement to be paid pursuant to division (E) of section	278
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,	279
and the one-half of one mill that is subtracted under division	280
(E)(2) of this section shall be apportioned among all contributing	281
fixed-sum levies in the proportion that each levy bears to the sum	282
of all fixed-sum levies within each school district, joint	283
vocational school district, or local taxing unit.	284

(F) If a school district levies a tax under section 5705.219	285
of the Revised Code, the fixed-rate levy loss for qualifying	286
levies, to the extent repealed under that section, shall equal the	287
sum of the following amounts in lieu of the amounts computed for	288
such levies under division (D) of this section:	289

(1) The sum of the rates of qualifying levies to the extent	290
so repealed multiplied by the sum of the machinery and equipment,	291
inventory, and furniture and fixtures tax value losses for 2009 as	292
determined under that division;	293

(2) The sum of the rates of qualifying levies to the extent	294
so repealed multiplied by the telephone property tax value loss	295
for 2011 as determined under that division.	296

The fixed-rate levy losses for qualifying levies to the	297
extent not repealed under section 5705.219 of the Revised Code	298
shall be as determined under division (D) of this section. The	299
revised fixed-rate levy losses determined under this division and	300
division (D) of this section first apply in the year following the	301
first year the district levies the tax under section 5705.219 of	302
the Revised Code.	303

(G) Not later than October 1, 2005, the tax commissioner	304
shall certify to the department of education for every school	305
district and joint vocational school district the machinery and	306
equipment, inventory, furniture and fixtures, and telephone	307
property tax value losses determined under division (C) of this	308
section, the machinery and equipment, inventory, furniture and	309
fixtures, and telephone fixed-rate levy losses determined under	310
division (D) of this section, and the fixed-sum levy losses	311
calculated under division (E) of this section. The calculations	312
under divisions (D) and (E) of this section shall separately	313
display the levy loss for each levy eligible for reimbursement.	314

(H) Not later than October 1, 2005, the tax commissioner	315
shall certify the amount of the fixed-sum levy losses to the	316
county auditor of each county in which a school district, joint	317
vocational school district, or local taxing unit with a fixed-sum	318
levy loss reimbursement has territory.	319

(I) Not later than the twenty-eighth day of February each	320
year beginning in 2011 and ending in 2014, the tax commissioner	321
shall certify to the department of education for each school	322
district first levying a tax under section 5705.219 of the Revised	323
Code in the preceding year the revised fixed-rate levy losses	324
determined under divisions (D) and (F) of this section.	325

Sec. 5751.21.  (A) Not later than the thirtieth day of July	326
of 2007 through 2017and each year thereafter, the department of	327
education shall consult with the director of budget and management	328
and determine the following for each school district and each	329
joint vocational school district eligible for payment under	330
division (B) or (C) of this section:	331

(1) The state education aid offset, which is the difference	332
obtained by subtracting the amount described in division (A)(1)(b)	333
of this section from the amount described in division (A)(1)(a) of	334
this section:	335

(a) The state education aid computed for the school district	336
or joint vocational school district for the current fiscal year as	337
of the thirtieth day of July;	338

(b) The state education aid that would be computed for the	339
school district or joint vocational school district for the	340
current fiscal year as of the thirtieth day of July if the	341
recognized valuation included the machinery and equipment,	342
inventory, furniture and fixtures, and telephone property tax	343
value losses for the school district or joint vocational school	344
district for the second preceding tax year, and if taxes charged	345
and payable associated with the tax value losses are accounted for	346
in any state education aid computation dependent on taxes charged	347
and payable.	348

(2) The greater of zero or the difference obtained by	349
subtracting the state education aid offset determined under	350
division (A)(1) of this section from the sum of the machinery and	351
equipment fixed-rate levy loss, the inventory fixed-rate levy	352
loss, furniture and fixtures fixed-rate levy loss, and telephone	353
property fixed-rate levy loss certified under divisions (G) and	354
(I) of section 5751.20 of the Revised Code for all taxing	355
districts in each school district and joint vocational school	356
district for the second preceding tax year.	357

By the thirtieth day of July of each such year, the	358
department of education and the director of budget and management	359
shall agree upon the amount to be determined under division (A)(1)	360
of this section.	361

(B) On or before the thirty-first day of August of each year	362
beginning in 2008, the department of education shall recalculate	363
the offset described under division (A) of this section for the	364
previous fiscal year and recalculate the payments made under	365
division (C) of this section in the preceding fiscal year using	366
the offset calculated under this division. If the payments	367
calculated under this division differ from the payments made under	368
division (C) of this section in the preceding fiscal year, the	369
difference shall either be paid to a school district or recaptured	370
from a school district through an adjustment at the same times	371
during the current fiscal year that the payments under division	372
(C) of this section are made. In August and October of the current	373
fiscal year, the amount of each adjustment shall be three-sevenths	374
of the amount calculated under this division. In May of the	375
current fiscal year, the adjustment shall be one-seventh of the	376
amount calculated under this division.	377

(C)(1) The department of education shall pay from the school	378
district tangible property tax replacement fund to each school	379
district and joint vocational school district all of the following	380
for fixed-rate levy losses certified under divisions (G) and (I)	381
of section 5751.20 of the Revised Code:	382

(1)(a) On or before May 31, 2006, one-seventh of the total	383
fixed-rate levy loss for tax year 2006;	384

(2)(b) On or before August 31, 2006, and October 31, 2006,	385
one-half of six-sevenths of the total fixed-rate levy loss for tax	386
year 2006;	387

(3)(c) On or before May 31, 2007, one-seventh of the total	388
fixed-rate levy loss for tax year 2007;	389

(4)(d) On or before August 31, 2007, and October 31, 2007,	390
forty-three per cent of the amount determined under division	391
(A)(2) of this section for fiscal year 2008, but not less than	392
zero, plus one-half of six-sevenths of the difference between the	393
total fixed-rate levy loss for tax year 2007 and the total	394
fixed-rate levy loss for tax year 2006.	395

(5)(e) On or before May 31, 2008, fourteen per cent of the	396
amount determined under division (A)(2) of this section for fiscal	397
year 2008, but not less than zero, plus one-seventh of the	398
difference between the total fixed-rate levy loss for tax year	399
2008 and the total fixed-rate levy loss for tax year 2006.	400

(6)(f) On or before August 31, 2008, and October 31, 2008,	401
forty-three per cent of the amount determined under division	402
(A)(2) of this section for fiscal year 2009, but not less than	403
zero, plus one-half of six-sevenths of the difference between the	404
total fixed-rate levy loss in tax year 2008 and the total	405
fixed-rate levy loss in tax year 2007.	406

(7)(g) On or before May 31, 2009, fourteen per cent of the	407
amount determined under division (A)(2) of this section for fiscal	408
year 2009, but not less than zero, plus one-seventh of the	409
difference between the total fixed-rate levy loss for tax year	410
2009 and the total fixed-rate levy loss for tax year 2007.	411

(8)(h) On or before August 31, 2009, and October 31, 2009,	412
forty-three per cent of the amount determined under division	413
(A)(2) of this section for fiscal year 2010, but not less than	414
zero, plus one-half of six-sevenths of the difference between the	415
total fixed-rate levy loss in tax year 2009 and the total	416
fixed-rate levy loss in tax year 2008.	417

(9)(i) On or before May 31, 2010, fourteen per cent of the	418
amount determined under division (A)(2) of this section for fiscal	419
year 2010, but not less than zero, plus one-seventh of the	420
difference between the total fixed-rate levy loss in tax year 2010	421
and the total fixed-rate levy loss in tax year 2008.	422

(10)(j) On or before August 31, 2010, and October 31, 2010,	423
forty-three per cent of the amount determined under division	424
(A)(2) of this section for fiscal year 2011, but not less than	425
zero, plus one-half of six-sevenths of the difference between the	426
telephone property fixed-rate levy loss for tax year 2010 and the	427
telephone property fixed-rate levy loss for tax year 2009.	428

(11)(k) On or before May 31, 2011, fourteen per cent of the	429
amount determined under division (A)(2) of this section for fiscal	430
year 2011, but not less than zero, plus one-seventh of the	431
difference between the telephone property fixed-rate levy loss for	432
tax year 2011 and the telephone property fixed-rate levy loss for	433
tax year 2009.	434

(12)(l) On or before August 31, 2011, and October 31, 2011,	435
forty-three per cent of the amount determined under division	436
(A)(2) of this section, but not less than zero, plus one-half of	437
six-sevenths of the difference between the telephone property	438
fixed-rate levy loss for tax year 2011 and the telephone property	439
fixed-rate levy loss for tax year 2010.	440

(13)(m) On or before May 31, 2012, fourteen per cent of the	441
amount determined under division (A)(2) of this section for fiscal	442
year 2012, but not less than zero, plus one-seventh of the	443
difference between the telephone property fixed-rate levy loss for	444
tax year 2011 and the telephone property fixed-rate levy loss for	445
tax year 2010.	446

(14)(n) On or before August 31, 2012, October 31, 2012, and	447
May 31, 2013, the amount determined under division (A)(2) of this	448
section but not less than zero, multiplied by one-third.	449

(15) On or before August 31, 2013, October 31, 2013, and May	450
31, 2014, the amount determined under division (A)(2) of this	451
section multiplied by a fraction, the numerator of which is nine	452
and the denominator of which is seventeen, but not less than zero,	453
multiplied by one-third.	454

(16) On or before August 31, 2014, October 31, 2014, and May	455
31, 2015, the amount determined under division (A)(2) of this	456
section multiplied by a fraction, the numerator of which is seven	457
and the denominator of which is seventeen, but not less than zero,	458
multiplied by one-third.	459

(17) On or before August 31, 2015, October 31, 2015, and May	460
31, 2016, the amount determined under division (A)(2) of this	461
section multiplied by a fraction, the numerator of which is five	462
and the denominator of which is seventeen, but not less than zero,	463
multiplied by one-third.	464

(18) On or before August 31, 2016, October 31, 2016, and May	465
31, 2017, the amount determined under division (A)(2) of this	466
section multiplied by a fraction, the numerator of which is three	467
and the denominator of which is seventeen, but not less than zero,	468
multiplied by one-third.	469

(19) On or before August 31, 2017, October 31, 2017, and May	470
31, 2018, the amount determined under division (A)(2) of this	471
section multiplied by a fraction, the numerator of which is one	472
and the denominator of which is seventeen, but not less than zero,	473
multiplied by one-third.	474

(2) Beginning in fiscal year 2014, on or before August 31,	475
October 31, and May 31 of that fiscal year and each fiscal year	476
thereafter, the department of education shall pay from the school	477
district tangible property tax replacement fund to each school	478
district and joint vocational district one-third of the amount	479
calculated under division (C)(2)(a) of this section.	480

(a) The amount determined under division (A)(2) of this	481
section for that year, multiplied by the applicable percentage	482
according to the following table:	483

Fiscal Year

School District Classes

484

	Class I	Class II	Class III	Class IV		485
2014	100%	95%	90%	90%		486
2015	100%	95%	90%	80%		487
2016	100%	90%	80%	70%		488
2017	100%	90%	80%	60%		489
2018	100%	85%	70%	50%		490
2019	100%	85%	70%	40%		491
2020	100%	80%	60%	30%		492
2021	100%	80%	60%	20%		493
2022	100%	75%	50%	10%		494
2023	100%	75%	50%	0%		495
2024 and 2025	100%	70%	40%	0%		496
2026 and 2027	100%	65%	30%	0%		497
2028 and 2029	100%	60%	20%	0%		498
2030 and 2031	100%	55%	10%	0%		499
2032 and 2033	100%	50%	0%	0%		500
2034 and 2035	100%	45%	0%	0%		501
2036 and 2037	100%	40%	0%	0%		502
2038 and 2039	100%	35%	0%	0%		503
2040 and 2041	100%	30%	0%	0%		504
2042 and 2043	100%	25%	0%	0%		505
2044 and 2045	100%	20%	0%	0%		506
2046 and 2047	100%	15%	0%	0%		507
2048 and 2049	100%	10%	0%	0%		508
2050 and 2051	100%	5%	0%	0%		509
2052 and thereafter	100%	0%	0%	0%		510

(b) For purposes of this division:

511

(i) "Class I" includes each school district and joint	512
vocational district whose total fixed-rate levy loss as of tax	513
year 2011 is at least ten per cent of the district's operating	514
budget for fiscal year 2010.	515

(ii) "Class II" includes each school district and joint	516
vocational district whose total fixed-rate levy loss as of tax	517
year 2011 is at least five and four-fifths per cent but less than	518
ten per cent of the district's operating budget for fiscal year	519
2010.	520

(iii) "Class III" includes each school district and joint	521
vocational district whose total fixed-rate levy loss as of tax	522
year 2011 is at least three and three-tenths per cent but less	523
than five and four-fifths per cent of the district's operating	524
budget for fiscal year 2010.	525

(iv) "Class IV" includes each school district and joint	526
vocational district whose total fixed-rate levy loss as of tax	527
year 2011 is less than three and three-tenths per cent of the	528
district's operating budget for fiscal year 2010.	529

(v) "Operating budget" means the sum of a school district's	530
state education aid for the fiscal year and its total taxes	531
charged and payable for current expenses from the district's	532
property taxes and income taxes that are appropriated for that	533
fiscal year.	534

The department of education shall report to each school	535
district and joint vocational school district the apportionment of	536
the payments among the school district's or joint vocational	537
school district's funds based on the certifications under	538
divisions (G) and (I) of section 5751.20 of the Revised Code.	539

Any qualifying levy that is a fixed-rate levy that is not	540
applicable to a tax year after 2010 does not qualify for any	541
reimbursement after the tax year to which it is last applicable.	542

(D) For taxes levied within the ten-mill limitation for debt	543
purposes in tax year 2005, payments shall be made equal to one	544
hundred per cent of the loss computed as if the tax were a	545
fixed-rate levy, butand those payments shall extend from fiscal	546
year 2006 through fiscal year 2018, as long as the qualifying levy	547
continues to be used for debt purposes. If the purpose of such a	548
qualifying levy is changed, that levy becomes subject to the	549
payments determined in division (C) of this section.	550

(E)(1) Not later than January 1, 2006, for each fixed-sum	551
levy of each school district or joint vocational school district	552
and for each year for which a determination is made under division	553
(E) of section 5751.20 of the Revised Code that a fixed-sum levy	554
loss is to be reimbursed, the tax commissioner shall certify to	555
the department of education the fixed-sum levy loss determined	556
under that division. The certification shall cover a time period	557
sufficient to include all fixed-sum levies for which the	558
commissioner made such a determination. The department shall pay	559
from the school district property tax replacement fund to the	560
school district or joint vocational school district one-third of	561
the fixed-sum levy loss so certified for each year, plus one-third	562
of the amount certified under division (I) of section 5751.20 of	563
the Revised Code, on or before the last day of May, August, and	564
October of the current year. Payments under this division of the	565
amounts certified under division (I) of section 5751.20 of the	566
Revised Code shall continue until the levy adopted under section	567
5705.219 of the Revised Code expires.	568

(2) Beginning in 2006, by the first day of January of each	569
year, the tax commissioner shall review the certification	570
originally made under division (E)(1) of this section. If the	571
commissioner determines that a debt levy that had been scheduled	572
to be reimbursed in the current year has expired, a revised	573
certification for that and all subsequent years shall be made to	574
the department of education.	575

(F) Beginning in September 2007 and through June 2018and for	576
each year thereafter, the director of budget and management shall	577
transfer from the school district tangible property tax	578
replacement fund to the general revenue fund each of the	579
following:	580

(1) On the first day of September, one-fourth of the amount	581
determined for that fiscal year under division (A)(1) of this	582
section;	583

(2) On the first day of December, one-fourth of the amount	584
determined for that fiscal year under division (A)(1) of this	585
section;	586

(3) On the first day of March, one-fourth of the amount	587
determined for that fiscal year under division (A)(1) of this	588
section;	589

(4) On the first day of June, one-fourth of the amount	590
determined for that fiscal year under division (A)(1) of this	591
section.	592

If, when a transfer is required under division (F)(1), (2),	593
(3), or (4) of this section, there is not sufficient money in the	594
school district tangible property tax replacement fund to make the	595
transfer in the required amount, the director shall transfer the	596
balance in the fund to the general revenue fund and may make	597
additional transfers on later dates as determined by the director	598
in a total amount that does not exceed one-fourth of the amount	599
determined for the fiscal year.	600

(G) For each of the fiscal yearsyear beginning with fiscal	601
year 2006 through 2018, if the total amount in the school district	602
tangible property tax replacement fund is insufficient to make all	603
payments under divisions (C), (D), and (E) of this section at the	604
times the payments are to be made, the director of budget and	605
management shall transfer from the general revenue fund to the	606
school district tangible property tax replacement fund the	607
difference between the total amount to be paid and the amount in	608
the school district tangible property tax replacement fund. For	609
each fiscal year after 2018, at the time payments under division	610
(E) of this section are to be made, the director of budget and	611
management shall transfer from the general revenue fund to the	612
school district property tax replacement fund the amount necessary	613
to make such payments.	614

(H)(1) On the fifteenth day of June of 2006 through 2011, the	615
director of budget and management may transfer any balance in the	616
school district tangible property tax replacement fund to the	617
general revenue fund. At the end of fiscal yearsyear 2012 through	618
2018and each fiscal year thereafter, any balance in the school	619
district tangible property tax replacement fund shall remain in	620
the fund to be used in future fiscal years for school purposes.	621

(2) In each fiscal year beginning with fiscal year 2019, all	622
amounts credited to the school district tangible personal property	623
tax replacement fund shall be appropriated for school purposes.	624

(I) If all of the territory of a school district or joint	625
vocational school district is merged with another district, or if	626
a part of the territory of a school district or joint vocational	627
school district is transferred to an existing or newly created	628
district, the department of education, in consultation with the	629
tax commissioner, shall adjust the payments made under this	630
section as follows:	631

(1) For a merger of two or more districts, the machinery and	632
equipment, inventory, furniture and fixtures, and telephone	633
property fixed-rate levy losses and the fixed-sum levy losses of	634
the successor district shall be equal to the sum of the machinery	635
and equipment, inventory, furniture and fixtures, and telephone	636
property fixed-rate levy losses and debt levy losses as determined	637
in section 5751.20 of the Revised Code, for each of the districts	638
involved in the merger.	639

(2) If property is transferred from one district to a	640
previously existing district, the amount of machinery and	641
equipment, inventory, furniture and fixtures, and telephone	642
property tax value losses and fixed-rate levy losses that shall be	643
transferred to the recipient district shall be an amount equal to	644
the total machinery and equipment, inventory, furniture and	645
fixtures, and telephone property fixed-rate levy losses times a	646
fraction, the numerator of which is the value of business tangible	647
personal property on the land being transferred in the most recent	648
year for which data are available, and the denominator of which is	649
the total value of business tangible personal property in the	650
district from which the land is being transferred in the most	651
recent year for which data are available. For each of the first	652
five years after the property is transferred, but not after fiscal	653
year 2012, if the tax rate in the recipient district is less than	654
the tax rate of the district from which the land was transferred,	655
one-half of the payments arising from the amount of fixed-rate	656
levy losses so transferred to the recipient district shall be paid	657
to the recipient district and one-half of the payments arising	658
from the fixed-rate levy losses so transferred shall be paid to	659
the district from which the land was transferred. Fixed-rate levy	660
losses so transferred shall be computed on the basis of the sum of	661
the rates of fixed-rate qualifying levies of the district from	662
which the land was transferred, notwithstanding division (E) of	663
this section.	664

(3) After December 31, 2004, if property is transferred from	665
one or more districts to a district that is newly created out of	666
the transferred property, the newly created district shall be	667
deemed not to have any machinery and equipment, inventory,	668
furniture and fixtures, or telephone property fixed-rate levy	669
losses and the districts from which the property was transferred	670
shall have no reduction in their machinery and equipment,	671
inventory, furniture and fixtures, and telephone property	672
fixed-rate levy losses.	673

(4) If the recipient district under division (I)(2) of this	674
section or the newly created district under division (I)(3) of	675
this section is assuming debt from one or more of the districts	676
from which the property was transferred and any of the districts	677
losing the property had fixed-sum levy losses, the department of	678
education, in consultation with the tax commissioner, shall make	679
an equitable division of the fixed-sum levy loss reimbursements.	680

Section 2. That existing sections 5751.20 and 5751.21 of the	681
Revised Code are hereby repealed.	682