128th General AssemblyRegular Session2009-2010S. B. No. 111

To amend sections 5751.20, 5751.21, 5751.22, and 1 5751.23 of the Revised Code to make permanent the 2 temporary reimbursements for local government and 3 school district tangible personal property tax 4 losses.5

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

       Section 1. That sections 5751.20, 5751.21, 5751.22, and 6 5751.23 of the Revised Code be amended to read as follows:7
       Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of 8 the Revised Code:9
       (1) "School district," "joint vocational school district," 10 "local taxing unit," "recognized valuation," "fixed-rate levy," 11 and "fixed-sum levy" have the same meanings as used in section 12 5727.84 of the Revised Code.13
       (2) "State education aid" for a school district means the sum 14 of state aid amounts computed for the district under division (A) 15 of section 3317.022 of the Revised Code, including the amounts 16 calculated under sections 3317.029 and 3317.0217 of the Revised 17 Code; divisions (C)(1), (C)(4), (D), (E), and (F) of section 18 3317.022; divisions (B), (C), and (D) of section 3317.023; 19 divisions (L) and (N) of section 3317.024; section 3317.0216; and 20 any unit payments for gifted student services paid under sections 21 3317.05, 3317.052, and 3317.053 of the Revised Code; except that, 22 for fiscal years 2008 and 2009, the amount computed for the 23 district under Section 269.20.80 of H.B. 119 of the 127th general 24 assembly and as that section subsequently may be amended shall be 25 substituted for the amount computed under division (D) of section 26 3317.022 of the Revised Code, and the amount computed under 27 Section 269.30.80 of H.B. 119 of the 127th general assembly and as 28 that section subsequently may be amended shall be included.29
       (3) "State education aid" for a joint vocational school 30 district means the sum of the state aid computed for the district 31 under division (N) of section 3317.024 and section 3317.16 of the 32 Revised Code, except that, for fiscal years 2008 and 2009, the 33 amount computed under Section 269.30.80 of H.B. 119 of the 127th 34 general assembly and as that section subsequently may be amended 35 shall be included.36
        (4) "State education aid offset" means the amount determined 37 for each school district or joint vocational school district under 38 division (A)(1) of section 5751.21 of the Revised Code.39
       (5) "Machinery and equipment property tax value loss" means 40 the amount determined under division (C)(1) of this section.41
       (6) "Inventory property tax value loss" means the amount 42 determined under division (C)(2) of this section.43
       (7) "Furniture and fixtures property tax value loss" means 44 the amount determined under division (C)(3) of this section.45
        (8) "Machinery and equipment fixed-rate levy loss" means the 46 amount determined under division (D)(1) of this section.47
       (9) "Inventory fixed-rate levy loss" means the amount 48 determined under division (D)(2) of this section.49
       (10) "Furniture and fixtures fixed-rate levy loss" means the 50 amount determined under division (D)(3) of this section.51
       (11) "Total fixed-rate levy loss" means the sum of the 52 machinery and equipment fixed-rate levy loss, the inventory 53 fixed-rate levy loss, the furniture and fixtures fixed-rate levy 54 loss, and the telephone company fixed-rate levy loss.55
       (12) "Fixed-sum levy loss" means the amount determined under 56 division (E) of this section.57
       (13) "Machinery and equipment" means personal property 58 subject to the assessment rate specified in division (F) of 59 section 5711.22 of the Revised Code.60
       (14) "Inventory" means personal property subject to the 61 assessment rate specified in division (E) of section 5711.22 of 62 the Revised Code.63
       (15) "Furniture and fixtures" means personal property 64 subject to the assessment rate specified in division (G) of 65 section 5711.22 of the Revised Code.66
       (16) "Qualifying levies" are levies in effect for tax year 67 2004 or applicable to tax year 2005 or approved at an election 68 conducted before September 1, 2005. For the purpose of 69 determining the rate of a qualifying levy authorized by section 70 5705.212 or 5705.213 of the Revised Code, the rate shall be the 71 rate that would be in effect for tax year 2010.72
       (17) "Telephone property" means tangible personal property 73 of a telephone, telegraph, or interexchange telecommunications 74 company subject to an assessment rate specified in section 75 5727.111 of the Revised Code in tax year 2004.76
       (18) "Telephone property tax value loss" means the amount 77 determined under division (C)(4) of this section.78
       (19) "Telephone property fixed-rate levy loss" means the 79 amount determined under division (D)(4) of this section.80
       (B) The commercial activities tax receipts fund is hereby 81 created in the state treasury and shall consist of money arising 82 from the tax imposed under this chapter. All money in that fund 83 shall be credited for each fiscal year in the following 84 percentages to the general revenue fund, to the school district 85 tangible property tax replacement fund, which is hereby created in 86 the state treasury for the purpose of making the payments 87 described in section 5751.21 of the Revised Code, and to the local 88 government tangible property tax replacement fund, which is hereby 89 created in the state treasury for the purpose of making the 90 payments described in section 5751.22 of the Revised Code, in the 91 following percentages:92

       (C) Not later than September 15, 2005, the tax commissioner 108 shall determine for each school district, joint vocational school 109 district, and local taxing unit its machinery and equipment, 110 inventory property, furniture and fixtures property, and telephone 111 property tax value losses, which are the applicable amounts 112 described in divisions (C)(1), (2), (3), and (4) of this section, 113 except as provided in division (C)(5) of this section:114
       (1) Machinery and equipment property tax value loss is the 115 taxable value of machinery and equipment property as reported by 116 taxpayers for tax year 2004 multiplied by:117
       (a) For tax year 2006, thirty-three and eight-tenths per 118 cent;119
       (b) For tax year 2007, sixty-one and three-tenths per cent;120
       (c) For tax year 2008, eighty-three per cent;121

       (d) For tax year 2009 and thereafter, one hundred per cent.122
       (2) Inventory property tax value loss is the taxable value of 123 inventory property as reported by taxpayers for tax year 2004 124 multiplied by:125
       (a) For tax year 2006, a fraction, the numerator of which is 126 five and three-fourths and the denominator of which is 127 twenty-three;128
        (b) For tax year 2007, a fraction, the numerator of which is 129 nine and one-half and the denominator of which is twenty-three;130
        (c) For tax year 2008, a fraction, the numerator of which is 131 thirteen and one-fourth and the denominator of which is 132 twenty-three;133
        (d) For tax year 2009 and thereafter a fraction, the 134 numerator of which is seventeen and the denominator of which is 135 twenty-three.136
        (3) Furniture and fixtures property tax value loss is the 137 taxable value of furniture and fixture property as reported by 138 taxpayers for tax year 2004 multiplied by:139
        (a) For tax year 2006, twenty-five per cent;140
        (b) For tax year 2007, fifty per cent;141
        (c) For tax year 2008, seventy-five per cent;142
        (d) For tax year 2009 and thereafter, one hundred per cent.143
       The taxable value of property reported by taxpayers used in 144 divisions (C)(1), (2), and (3) of this section shall be such 145 values as determined to be final by the tax commissioner as of 146 August 31, 2005. Such determinations shall be final except for any 147 correction of a clerical error that was made prior to August 31, 148 2005, by the tax commissioner.149
       (4) Telephone property tax value loss is the taxable value of 150 telephone property as taxpayers would have reported that property 151 for tax year 2004 if the assessment rate for all telephone 152 property for that year were twenty-five per cent, multiplied by:153
       (a) For tax year 2006, zero per cent;154
       (b) For tax year 2007, zero per cent;155
       (c) For tax year 2008, zero per cent;156
       (d) For tax year 2009, sixty per cent;157
       (e) For tax year 2010, eighty per cent;158
       (f) For tax year 2011 and thereafter, one hundred per cent.159
       (5) Division (C)(5) of this section applies to any school 160 district, joint vocational school district, or local taxing unit 161 in a county in which is located a facility currently or formerly 162 devoted to the enrichment or commercialization of uranium or 163 uranium products, and for which the total taxable value of 164 property listed on the general tax list of personal property for 165 any tax year from tax year 2001 to tax year 2004 was fifty per 166 cent or less of the taxable value of such property listed on the 167 general tax list of personal property for the next preceding tax 168 year.169
       In computing the fixed-rate levy losses under divisions 170 (D)(1), (2), and (3) of this section for any school district, 171 joint vocational school district, or local taxing unit to which 172 division (C)(5) of this section applies, the taxable value of such 173 property as listed on the general tax list of personal property 174 for tax year 2000 shall be substituted for the taxable value of 175 such property as reported by taxpayers for tax year 2004, in the 176 taxing district containing the uranium facility, if the taxable 177 value listed for tax year 2000 is greater than the taxable value 178 reported by taxpayers for tax year 2004. For the purpose of making 179 the computations under divisions (D)(1), (2), and (3) of this 180 section, the tax year 2000 valuation is to be allocated to 181 machinery and equipment, inventory, and furniture and fixtures 182 property in the same proportions as the tax year 2004 values. For 183 the purpose of the calculations in division (A) of section 5751.21 184 of the Revised Code, the tax year 2004 taxable values shall be 185 used.186
       To facilitate the calculations required under division (C) of 187 this section, the county auditor, upon request from the tax 188 commissioner, shall provide by August 1, 2005, the values of 189 machinery and equipment, inventory, and furniture and fixtures for 190 all single-county personal property taxpayers for tax year 2004.191
       (D) Not later than September 15, 2005, the tax commissioner 192 shall determine for each tax year from 2006 through 2009 for each 193 school district, joint vocational school district, and local 194 taxing unit its machinery and equipment, inventory, and furniture 195 and fixtures fixed-rate levy losses, and for each tax year from 196 2006 through 2011 its telephone property fixed-rate levy loss, 197 which are the applicable amounts described in divisions (D)(1), 198 (2), (3), and (4) of this section:199
       (1) The machinery and equipment fixed-rate levy loss is the 200 machinery and equipment property tax value loss multiplied by the 201 sum of the tax rates of fixed-rate qualifying levies.202
       (2) The inventory fixed-rate loss is the inventory property 203 tax value loss multiplied by the sum of the tax rates of 204 fixed-rate qualifying levies.205
        (3) The furniture and fixtures fixed-rate levy loss is the 206 furniture and fixture property tax value loss multiplied by the 207 sum of the tax rates of fixed-rate qualifying levies.208
       (4) The telephone property fixed-rate levy loss is the 209 telephone property tax value loss multiplied by the sum of the tax 210 rates of fixed-rate qualifying levies.211
       (E) Not later than September 15, 2005, the tax commissioner 212 shall determine for each school district, joint vocational school 213 district, and local taxing unit its fixed-sum levy loss. The 214 fixed-sum levy loss is the amount obtained by subtracting the 215 amount described in division (E)(2) of this section from the 216 amount described in division (E)(1) of this section:217
       (1) The sum of the machinery and equipment property tax value 218 loss, the inventory property tax value loss, and the furniture and 219 fixtures property tax value loss, and, for 2008 through 2017and 220 thereafter the telephone property tax value loss of the district 221 or unit multiplied by the sum of the fixed-sum tax rates of 222 qualifying levies. For 2006 through 2010, this computation shall 223 include all qualifying levies remaining in effect for the current 224 tax year and any school district levies imposed under section 225 5705.194 or 5705.213 of the Revised Code that are qualifying 226 levies not remaining in effect for the current year. For 2011 227through 2017 in the case of school district levies imposed 228 under section 5705.194 or 5705.213 of the Revised Code and for 229 all years after 2010 in the case of other fixed-sum leviesand 230 thereafter, this computation shall include only qualifying 231 levies remaining in effect for the current year. For purposes 232 of this computation, a qualifying school district levy imposed 233 under section 5705.194 or 5705.213 of the Revised Code remains 234 in effect in a year after 2010 only if, for that year, the board 235 of education levies a school district levy imposed under section 236 5705.194 or 5705.213 of the Revised Code for an annual sum at 237 least equal to the annual sum levied by the board in tax year 238 2004 less the amount of the payment certified under this 239 division for 2006.240
       (2) The total taxable value in tax year 2004 less the sum of 241 the machinery and equipment, inventory, furniture and fixtures, 242 and telephone property tax value losses in each school district, 243 joint vocational school district, and local taxing unit multiplied 244 by one-half of one mill per dollar.245
       (3) For the calculations in divisions (E)(1) and (2) of this 246 section, the tax value losses are those that would be calculated 247 for tax year 2009 under divisions (C)(1), (2), and (3) of this 248 section and for tax year 2011 under division (C)(4) of this 249 section.250
       (4) To facilitate the calculation under divisions (D) and (E) 251 of this section, not later than September 1, 2005, any school 252 district, joint vocational school district, or local taxing unit 253 that has a qualifying levy that was approved at an election 254 conducted during 2005 before September 1, 2005, shall certify to 255 the tax commissioner a copy of the county auditor's certificate of 256 estimated property tax millage for such levy as required under 257 division (B) of section 5705.03 of the Revised Code, which is the 258 rate that shall be used in the calculations under such divisions.259
       If the amount determined under division (E) of this section 260 for any school district, joint vocational school district, or 261 local taxing unit is greater than zero, that amount shall equal 262 the reimbursement to be paid pursuant to division (E) of section 263 5751.21 or division (A)(3) of section 5751.22 of the Revised 264 Code, and the one-half of one mill that is subtracted under 265 division (E)(2) of this section shall be apportioned among all 266 contributing fixed-sum levies in the proportion that each levy 267 bears to the sum of all fixed-sum levies within each school 268 district, joint vocational school district, or local taxing unit.269
       (F) Not later than October 1, 2005, the tax commissioner 270 shall certify to the department of education for every school 271 district and joint vocational school district the machinery and 272 equipment, inventory, furniture and fixtures, and telephone 273 property tax value losses determined under division (C) of this 274 section, the machinery and equipment, inventory, furniture and 275 fixtures, and telephone fixed-rate levy losses determined under 276 division (D) of this section, and the fixed-sum levy losses 277 calculated under division (E) of this section. The calculations 278 under divisions (D) and (E) of this section shall separately 279 display the levy loss for each levy eligible for reimbursement.280
       (G) Not later than October 1, 2005, the tax commissioner 281 shall certify the amount of the fixed-sum levy losses to the 282 county auditor of each county in which a school district, joint 283 vocational school district, or local taxing unit with a fixed-sum 284 levy loss reimbursement has territory.285

       Sec. 5751.21.  (A) Not later than the thirtieth day of July 286 of 2007 through 2017and of each year thereafter, the department 287 of education shall consult with the director of budget and 288 management and determine the following for each school district 289 and each joint vocational school district eligible for payment 290 under division (B) of this section:291
       (1) The state education aid offset, which is the difference 292 obtained by subtracting the amount described in division (A)(1)(b) 293 of this section from the amount described in division (A)(1)(a) of 294 this section:295
       (a) The state education aid computed for the school district 296 or joint vocational school district for the current fiscal year as 297 of the thirtieth day of July;298
       (b) The state education aid that would be computed for the 299 school district or joint vocational school district for the 300 current fiscal year as of the thirtieth day of July if the 301 recognized valuation included the machinery and equipment, 302 inventory, furniture and fixtures, and telephone property tax 303 value losses for the school district or joint vocational school 304 district for the second preceding tax year, and if taxes charged 305 and payable associated with the tax value losses are accounted for 306 in any state education aid computation dependent on taxes charged 307 and payable.308
       (2) The greater of zero or the difference obtained by 309 subtracting the state education aid offset determined under 310 division (A)(1) of this section from the sum of the machinery and 311 equipment fixed-rate levy loss, the inventory fixed-rate levy 312 loss, furniture and fixtures fixed-rate levy loss, and telephone 313 property fixed-rate levy loss certified under division (F) of 314 section 5751.20 of the Revised Code for all taxing districts in 315 each school district and joint vocational school district for the 316 second preceding tax year.317
       By the thirtieth day of July of each such year, the 318 department of education and the director of budget and management 319 shall agree upon the amount to be determined under division 320 (A)(1) of this section.321
       (B) On or before the thirty-first day of August of each year 322 beginning in 2008, the department of education shall recalculate 323 the offset described under division (A) of this section for the 324 previous fiscal year and recalculate the payments made under 325 division (C) of this section in the preceding fiscal year using 326 the offset calculated under this division. If the payments 327 calculated under this division differ from the payments made under 328 division (C) of this section in the preceding fiscal year, the 329 difference shall either be paid to a school district or recaptured 330 from a school district through an adjustment at the same times 331 during the current fiscal year that the payments under division 332 (C) of this section are made. In August and October of the current 333 fiscal year, the amount of each adjustment shall be three-sevenths 334 of the amount calculated under this division. In May of the 335 current fiscal year, the adjustment shall be one-seventh of the 336 amount calculated under this division.337
       (C) The department of education shall pay from the school 338 district tangible property tax replacement fund to each school 339 district and joint vocational school district all of the following 340 for fixed-rate levy losses certified under division (F) of section 341 5751.20 of the Revised Code:342
       (1) On or before May 31, 2006, one-seventh of the total 343 fixed-rate levy loss for tax year 2006;344
       (2) On or before August 31, 2006, and October 31, 2006, 345 one-half of six-sevenths of the total fixed-rate levy loss for tax 346 year 2006;347
       (3) On or before May 31, 2007, one-seventh of the total 348 fixed-rate levy loss for tax year 2007;349
       (4) On or before August 31, 2007, and October 31, 2007, 350 forty-three per cent of the amount determined under division 351 (A)(2) of this section for fiscal year 2008, but not less than 352 zero, plus one-half of six-sevenths of the difference between the 353 total fixed-rate levy loss for tax year 2007 and the total 354 fixed-rate levy loss for tax year 2006.355
       (5) On or before May 31, 2008, fourteen per cent of the 356 amount determined under division (A)(2) of this section for 357 fiscal year 2008, but not less than zero, plus one-seventh of the 358 difference between the total fixed-rate levy loss for tax year 359 2008 and the total fixed-rate levy loss for tax year 2006.360

       (6) On or before August 31, 2008, and October 31, 2008, 361 forty-three per cent of the amount determined under division 362 (A)(2) of this section for fiscal year 2009, but not less than 363 zero, plus one-half of six-sevenths of the difference between the 364 total fixed-rate levy loss in tax year 2008 and the total 365 fixed-rate levy loss in tax year 2007.366

       (7) On or before May 31, 2009, fourteen per cent of the 367 amount determined under division (A)(2) of this section for 368 fiscal year 2009, but not less than zero, plus one-seventh of the 369 difference between the total fixed-rate levy loss for tax year 370 2009 and the total fixed-rate levy loss for tax year 2007.371

       (8) On or before August 31, 2009, and October 31, 2009, 372 forty-three per cent of the amount determined under division 373 (A)(2) of this section for fiscal year 2010, but not less than 374 zero, plus one-half of six-sevenths of the difference between the 375 total fixed-rate levy loss in tax year 2009 and the total 376 fixed-rate levy loss in tax year 2008.377

       (9) On or before May 31, 2010, fourteen per cent of the 378 amount determined under division (A)(2) of this section for 379 fiscal year 2010, but not less than zero, plus one-seventh of the 380 difference between the total fixed-rate levy loss in tax year 2010 381 and the total fixed-rate levy loss in tax year 2008.382

       (10) On or before August 31, 2010, and October 31, 2010, 383 forty-three per cent of the amount determined under division 384 (A)(2) of this section for fiscal year 2011, but not less than 385 zero, plus one-half of six-sevenths of the difference between the 386 telephone property fixed-rate levy loss for tax year 2010 and the 387 telephone property fixed-rate levy loss for tax year 2009.388

       (11) On or before May 31, 2011, fourteen per cent of the 389 amount determined under division (A)(2) of this section for 390 fiscal year 2011, but not less than zero, plus one-seventh of the 391 difference between the telephone property fixed-rate levy loss for 392 tax year 2011 and the telephone property fixed-rate levy loss for 393 tax year 2009.394
       (12) On or before August 31, 2011, and October 31, 2011, 395forty-three per cent of the amount determined under division 396 (A)(2) of this section multiplied by a fraction, the numerator 397 of which is fourteen and the denominator of which is seventeen, 398 but not less than zero, multiplied by forty-three per cent, plus 399 one-half of six-sevenths of the difference between the telephone 400 property fixed-rate levy loss for tax year 2011 and the telephone 401 property fixed-rate levy loss for tax year 2010.402
       (13) On or before May 31, 2012, fourteen per cent of the 403 amount determined under division (A)(2) of this section for 404 fiscal year 2012, multiplied by a fraction, the numerator of 405 which is fourteen and the denominator of which is seventeenbut 406 not less than zero, plus one-seventh of the difference between 407 the telephone property fixed-rate levy loss for tax year 2011 and 408 the telephone property fixed-rate levy loss for tax year 2010.409
       (14) On or before August 31, 2012, October 31, 2012, and May 410 31, 2013, the amount determined under division (A)(2) of this 411 section multiplied by a fraction, the numerator of which is 412 eleven and the denominator of which is seventeen, but not less 413 than zero, multiplied by one-third.414
       (15) On or before August 31, 2013, October 31, 2013, and May 415 31, 2014, the amount determined under division (A)(2) of this 416 section multiplied by a fraction, the numerator of which is nine 417 and the denominator of which is seventeen, but not less than 418 zero, multiplied by one-third.419
       (16) On or before August 31, 2014, October 31, 2014, and May 420 31, 2015, the amount determined under division (A)(2) of this 421 section multiplied by a fraction, the numerator of which is seven 422 and the denominator of which is seventeen, but not less than 423 zero, multiplied by one-third.424
       (17) On or before August 31, 2015, October 31, 2015, and May 425 31, 2016, the amount determined under division (A)(2) of this 426 section multiplied by a fraction, the numerator of which is five 427 and the denominator of which is seventeen, but not less than 428 zero, multiplied by one-third.429
       (18) On or before August 31, 2016, October 31, 2016, and May 430 31, 2017, the amount determined under division (A)(2) of this 431 section multiplied by a fraction, the numerator of which is three 432 and the denominator of which is seventeen, but not less than 433 zero, multiplied by one-third.434
       (19) On or before August 31, 2017, October 31, 2017, and May 435 31, 2018, the amount determined under division (A)(2) of this 436 section multiplied by a fraction, the numerator of which is one 437 and the denominator of which is seventeen, but not less than 438 zero, multiplied by one-thirdthe thirty-first day of August and 439 October of 2012 and of each year thereafter and the thirty-first 440 day of May of 2013 and of each year thereafter, one-third of the 441 amount determined under division (A)(2) of this section, but not 442 less than zero.443

       The department of education shall report to each school 444 district and joint vocational school district the apportionment of 445 the payments among the school district's or joint vocational 446 school district's funds based on the certifications under division 447 (F) of section 5751.20 of the Revised Code.448
       Any qualifying levy that is a fixed-rate levy that is not 449 applicable to a tax year after 2010 does not qualify for any 450 reimbursement after the tax year to which it is last applicable.451
       (D) For taxes levied within the ten-mill limitation for debt 452 purposes in tax year 2005, payments shall be made equal to one 453 hundred per cent of the loss computed as if the tax were a 454 fixed-rate levy, but those payments shall extend from fiscal year 455 2006 through fiscal year 2018, as long as the qualifying levy 456 continues to be used for debt purposes. If the purpose of such a 457 qualifying levy is changed, that levy becomes subject to the 458 payments determined in division (C) of this section.459
       (E)(1) Not later than January 1, 2006, for each fixed-sum 460 levy of each school district or joint vocational school district 461 and for each year for which a determination is made under division 462(F)(E) of section 5751.20 of the Revised Code that a fixed-sum 463 levy loss is to be reimbursed, the tax commissioner shall certify 464 to the department of education the fixed-sum levy loss determined 465 under that division. The certification shall cover a time period 466 sufficient to include all fixed-sum levies for which the 467 commissioner made such a determination. The department shall pay 468 from the school district property tax replacement fund to the 469 school district or joint vocational school district one-third of 470 the fixed-sum levy loss so certified for each year on or before 471 the last day of May, August, and October of the current year.472
       (2) Beginning in 2006, by the first day of January of each 473 year, the tax commissioner shall review the certification 474 originally made under division (E)(1) of this section. If the 475 commissioner determines that a debt levy that had been scheduled 476 to be reimbursed in the current year has expired, a revised 477 certification for that and all subsequent years shall be made to 478 the department of education.479
       (F) Beginning in September 2007 and through June 2018, the 480 director of budget and management shall transfer from the school 481 district tangible property tax replacement fund to the general 482 revenue fund each of the following:483
       (1) On the first day of September, one-fourth of the amount 484 determined for that fiscal year under division (A)(1) of this 485 section;486
       (2) On the first day of December, one-fourth of the amount 487 determined for that fiscal year under division (A)(1) of this 488 section;489
       (3) On the first day of March, one-fourth of the amount 490 determined for that fiscal year under division (A)(1) of this 491 section;492
       (4) On the first day of June, one-fourth of the amount 493 determined for that fiscal year under division (A)(1) of this 494 section.495
       If, when a transfer is required under division (F)(1), (2), 496 (3), or (4) of this section, there is not sufficient money in the 497 school district tangible property tax replacement fund to make 498 the transfer in the required amount, the director shall transfer 499 the balance in the fund to the general revenue fund and may make 500 additional transfers on later dates as determined by the director 501 in a total amount that does not exceed one-fourth of the amount 502 determined for the fiscal year.503
       (G) For each of the fiscal years 2006 through 2018, ifIf the 504 total amount in the school district tangible property tax 505 replacement fund is insufficient to make all payments under 506 divisions (C), (D), and (E) of this section at the times the 507 payments are to be made, the director of budget and management 508 shall transfer from the general revenue fund to the school 509 district tangible property tax replacement fund the difference 510 between the total amount to be paid and the amount in the school 511 district tangible property tax replacement fund. For each fiscal 512 year after 2018, at the time payments under division (E) of this 513 section are to be made, the director of budget and management 514 shall transfer from the general revenue fund to the school 515 district property tax replacement fund the amount necessary to 516 make such payments.517
       (H)(1) On the fifteenth day of June of 2006 through 2011, 518 the director of budget and management may transfer any balance in 519 the school district tangible property tax replacement fund to the 520 general revenue fund. At the end of fiscal years 2012 through 521 2018, any balance in the school district tangible property tax 522 replacement fund shall remain in the fund to be used in future 523 fiscal years for school purposes.524
       (2) In each fiscal year beginning with fiscal year 2019In 525 each fiscal year thereafter, all amounts credited to the school 526 district tangible personal property tax replacement fund shall be 527 appropriated for school purposes.528
       (I) If all of the territory of a school district or joint 529 vocational school district is merged with another district, or if 530 a part of the territory of a school district or joint vocational 531 school district is transferred to an existing or newly created 532 district, the department of education, in consultation with the 533 tax commissioner, shall adjust the payments made under this 534 section as follows:535
       (1) For a merger of two or more districts, the machinery and 536 equipment, inventory, furniture and fixtures, and telephone 537 property fixed-rate levy losses and the fixed-sum levy losses of 538 the successor district shall be equal to the sum of the machinery 539 and equipment, inventory, furniture and fixtures, and telephone 540 property fixed-rate levy losses and debt levy losses as determined 541 in section 5751.20 of the Revised Code, for each of the districts 542 involved in the merger.543
       (2) If property is transferred from one district to a 544 previously existing district, the amount of machinery and 545 equipment, inventory, furniture and fixtures, and telephone 546 property tax value losses and fixed-rate levy losses that shall be 547 transferred to the recipient district shall be an amount equal to 548 the total machinery and equipment, inventory, furniture and 549 fixtures, and telephone property fixed-rate levy losses times a 550 fraction, the numerator of which is the value of business tangible 551 personal property on the land being transferred in the most recent 552 year for which data are available, and the denominator of which is 553 the total value of business tangible personal property in the 554 district from which the land is being transferred in the most 555 recent year for which data are available. For each of the first 556 five years after the property is transferred, but not after fiscal 557 year 2012, if the tax rate in the recipient district is less than 558 the tax rate of the district from which the land was transferred, 559 one-half of the payments arising from the amount of fixed-rate 560 levy losses so transferred to the recipient district shall be paid 561 to the recipient district and one-half of the payments arising 562 from the fixed-rate levy losses so transferred shall be paid to 563 the district from which the land was transferred. Fixed-rate levy 564 losses so transferred shall be computed on the basis of the sum of 565 the rates of fixed-rate qualifying levies of the district from 566 which the land was transferred, notwithstanding division (E) of 567 this section.568
       (3) After December 31, 2004, if property is transferred from 569 one or more districts to a district that is newly created out of 570 the transferred property, the newly created district shall be 571 deemed not to have any machinery and equipment, inventory, 572 furniture and fixtures, or telephone property fixed-rate levy 573 losses and the districts from which the property was transferred 574 shall have no reduction in their machinery and equipment, 575 inventory, furniture and fixtures, and telephone property 576 fixed-rate levy losses.577
       (4) If the recipient district under division (I)(2) of this 578 section or the newly created district under divisions (I)(3) of 579 this section is assuming debt from one or more of the districts 580 from which the property was transferred and any of the districts 581 losing the property had fixed-sum levy losses, the department of 582 education, in consultation with the tax commissioner, shall make 583 an equitable division of the fixed-sum levy loss reimbursements.584
       Sec. 5751.22.  (A) Not later than January 1, 2006, the tax 585 commissioner shall compute the payments to be made to each local 586 taxing unit for each year according to divisions (A)(1), (2), (3), 587 and (4) of this section, and shall distribute the payments in the 588 manner prescribed by division (C) of this section. The calculation 589 of the fixed-sum levy loss shall cover a time period sufficient to 590 include all fixed-sum levies for which the commissioner 591 determined, pursuant to division (E) of section 5751.20 of the 592 Revised Code, that a fixed-sum levy loss is to be reimbursed.593
       (1) Except as provided in division (A)(4) of this section, 594 forFor machinery and equipment, inventory, and furniture and 595 fixtures fixed-rate levy losses determined under division (D) of 596 section 5751.20 of the Revised Code, payments shall be made in an 597 amount equal to each of those losses multiplied by the following:598
       (a) For tax years 2006 through 2010, one hundred per cent;599
       (b) For tax year 2011, a fraction, the numerator of which is 600 fourteen and the denominator of which is seventeen;601
       (c) For tax year 2012, a fraction, the numerator of which is 602 eleven and the denominator of which is seventeen;603
       (d) For tax year 2013, a fraction, the numerator of which is 604 nine and the denominator of which is seventeen;605
       (e) For tax year 2014, a fraction, the numerator of which is 606 seven and the denominator of which is seventeen;607
       (f) For tax year 2015, a fraction, the numerator of which is 608 five and the denominator of which is seventeen;609
       (g) For tax year 2016, a fraction, the numerator of which is 610 three and the denominator of which is seventeen;611
       (h) For tax year 2017, a fraction, the numerator of which is 612 one and the denominator of which is seventeen;613
       (i) For tax years 2018 and thereafter, no fixed-rate payments 614 shall be made.615
       Any qualifying levy that is a fixed-rate levy that is not 616 applicable to a tax year after 2010 shall not qualify for any 617 reimbursement after the tax year to which it is last applicable.618

       (2) Except as provided in division (A)(4) of this section, 619 forFor telephone property fixed-rate levy losses determined under 620 division (D)(4) of section 5751.20 of the Revised Code, payments 621 shall be made in an amount equal to each of those losses 622multiplied by the following:623
       (a) For tax years 2009 through 2011, one hundred per cent;624
       (b) For tax year 2012, seven-eighths;625
       (c) For tax year 2013, six-eighths;626
       (d) For tax year 2014, five-eighths;627
       (e) For tax year 2015, four-eighths;628
       (f) For tax year 2016, three-eighths;629
       (g) For tax year 2017, two-eighths;630
       (h) For tax year 2018, one-eighth;631
       (i) For tax years 2019 and thereafter, no fixed-rate payments 632 shall be made.633
       Any qualifying levy that is a fixed-rate levy that is not 634 applicable to a tax year after 2011 shall not qualify for any 635 reimbursement after the tax year to which it is last applicable.636
       (3) For fixed-sum levy losses determined under division (E) 637 of section 5751.20 of the Revised Code, payments shall be made in 638 the amount of one hundred per cent of the fixed-sum levy loss for 639 payments required to be made in 2006 and thereafter.640
       (4) For taxes levied within the ten-mill limitation for debt 641 purposes in tax year 2005, payments shall be made based on the 642 schedule in division (A)(1) of this section for each of the 643 calendar years 2006 through 2010. For each of the calendar years 644 2011 through 2017, the percentages for calendar year 2010 shall be 645 used, as long as the qualifying levy continues to be used for debt 646 purposes. If the purpose of such a qualifying levy is changed, 647 that levy becomes subject to the payment schedules in divisions 648 (A)(1)(a) to (h) of this section. No payments shall be made for 649 such levies after calendar year 2017equal to one-hundred per cent 650 of the loss computed as if the tax were a fixed-rate levy.651
       (B) Beginning in 2007, by the thirty-first day of January of 652 each year, the tax commissioner shall review the calculation 653 originally made under division (A) of this section of the 654 fixed-sum levy losses determined under division (E) of section 655 5751.20 of the Revised Code. If the commissioner determines that a 656 fixed-sum levy that had been scheduled to be reimbursed in the 657 current year has expired, a revised calculation for that and all 658 subsequent years shall be made.659
       (C) Payments to local taxing units required to be made under 660 division (A) of this section shall be paid from the local 661 government tangible property tax replacement fund to the county 662 undivided income tax fund in the proper county treasury. Beginning 663 in May 2006, one-seventh of the amount certified under that 664 division shall be paid by the last day of May each year, and 665 three-sevenths shall be paid by the last day of August and October 666 each year. Within forty-five days after receipt of such payments, 667 the county treasurer shall distribute amounts determined under 668 division (A) of this section to the proper local taxing unit as if 669 they had been levied and collected as taxes, and the local taxing 670 unit shall apportion the amounts so received among its funds in 671 the same proportions as if those amounts had been levied and 672 collected as taxes.673
       (D) For each of the fiscal years 2006 through 2019, ifIf the 674 total amount in the local government tangible property tax 675 replacement fund is insufficient to make all payments under 676 division (C) of this section at the times the payments are to be 677 made, the director of budget and management shall transfer from 678 the general revenue fund to the local government tangible property 679 tax replacement fund the difference between the total amount to be 680 paid and the amount in the local government tangible property tax 681 replacement fund. For each fiscal year after 2019, at the time 682 payments under division (A)(2) of this section are to be made, the 683 director of budget and management shall transfer from the general 684 revenue fund to the local government property tax replacement fund 685 the amount necessary to make such payments.686
       (E) On the fifteenth day of June of each year from 2006 687 through 2018beginning in 2006, the director of budget and 688 management may transfer any balance in the local government 689 tangible property tax replacement fund to the general revenue 690 fund.691
       (F) If all or a part of the territories of two or more local 692 taxing units are merged, or unincorporated territory of a township 693 is annexed by a municipal corporation, the tax commissioner shall 694 adjust the payments made under this section to each of the local 695 taxing units in proportion to the tax value loss apportioned to 696 the merged or annexed territory, or as otherwise provided by a 697 written agreement between the legislative authorities of the local 698 taxing units certified to the commissioner not later than the 699 first day of June of the calendar year in which the payment is to 700 be made.701

       Sec. 5751.23.  (A) As used in this section:702
       (1) "Administrative fees" means the dollar percentages 703 allowed by the county auditor for services or by the county 704 treasurer as fees, or paid to the credit of the real estate 705 assessment fund, under divisions (A) and (C) of section 319.54 706 and division (A) of section 321.26 of the Revised Code.707
       (2) "Administrative fee loss" means a county's loss of 708 administrative fees due to its tax value loss, determined as 709 follows:710
       (a) For purposes of the determination made under division (B) 711 of this section in the years 2006 through 2010, the administrative 712 fee loss shall be computed by multiplying the amounts determined 713 for all taxing districts in the county under divisions (D) and (E) 714 of section 5751.20 of the Revised Code by nine thousand six 715 hundred fifty-nine ten-thousandths of one per cent if total taxes 716 collected in the county in 2004 exceeded one hundred fifty million 717 dollars, or one and one thousand one hundred fifty-nine 718 ten-thousandths of one per cent if total taxes collected in the 719 county in 2004 were one hundred fifty million dollars or less; 720
       (b) For purposes of the determination under division (B) of 721 this section in the years after 2010, the administrative fee 722 losses shall be determined by multiplying the administrative fee 723 losses calculated for 2010 by the fractions in divisions (A)(1)(b) 724 to (i) of section 5751.22 of the Revised Code.725
       (3) "Total taxes collected" means all money collected on any 726 tax duplicate of the county, other than the estate tax duplicates. 727 "Total taxes collected" does not include amounts received pursuant 728 to divisions (F) and (G) of section 321.24 or section 323.156 of 729 the Revised Code.730
       (B) Not later than December 31, 2005, the tax commissioner 731 shall certify to each county auditor the tax levy losses 732 calculated under divisions (D) and (E) of section 5751.20 of the 733 Revised Code for each school district, joint vocational school 734 district, and local taxing unit in the county. Not later than the 735 thirty-first day of January of 2006 through 2017, the county 736 auditor shall determine the administrative fee loss for the county 737 and apportion that loss ratably among the school districts, joint 738 vocational school districts, and local taxing units on the basis 739 of the tax levy losses certified under this division.740
       (C) On or before each of the days prescribed for the 741 settlements under divisions (A) and (C) of section 321.24 of the 742 Revised Code in the years 2006 through 2017, the county treasurer 743 shall deduct one-half of the amount apportioned to each school 744 district, joint vocational school district, and local taxing unit 745 from the portions of revenue payable to them.746
       (D) On or before each of the days prescribed for settlements 747 under divisions (A) and (C) of section 321.24 of the Revised Code 748 in the years 2006 through 2017, the county auditor shall cause to 749 be deposited an amount equal to one-half of the amount of the 750 administrative fee loss in the same funds as if allowed as 751 administrative fees.752

       Section 2. That existing sections 5751.20, 5751.21, 5751.22, 753 and 5751.23 of the Revised Code are hereby repealed.754