Ohio § 5727.11

§ 5727.11.

(A) Except as otherwise provided in this section, the true value of all taxable property,

except property of a railroad company, required by section 5727.06 of the Revised Code to be assessed by the tax commissioner shall be determined by a method of valuation

using cost as capitalized on the public utility's books and records less composite

annual allowances as prescribed by the commissioner.  If the commissioner finds that application of this method will not result in the

determination of true value of the public utility's taxable property, the commissioner

may use another method of valuation. (B)(1) Except as provided in division (B)(2) of this section, the true value of current

gas stored underground is the cost of that gas shown on the books and records of the

public utility on the thirty-first day of December of the preceding year. (2) For tax year 2001 and thereafter, the true value of current gas stored underground

is the quotient obtained by dividing (a) the average value of the current gas stored

underground, which shall be determined by adding the value of the gas on hand at the

end of each calendar month in the calendar year preceding the tax year, or, if applicable,

the last day of business of each month for a partial month, divided by (b) the total

number of months the natural gas company was in business during the calendar year

prior to the beginning of the tax year.  With the approval of the tax commissioner, a natural gas company may use a date

other than the end of a calendar month to value its current gas stored underground. (C) The true value of noncurrent gas stored underground is thirty-five per cent of the

cost of that gas shown on the books and records of the public utility on the thirty-first

day of December of the preceding year. (D)(1) Except as provided in division (D)(2) of this section, the true value of the production

equipment of an electric company and the true value of all taxable property of a rural

electric company is the equipment's or property's cost as capitalized on the company's

books and records less fifty per cent of that cost as an allowance for depreciation

and obsolescence. (2) The true value of the production equipment or energy conversion equipment of an electric

company, rural electric company, or energy company purchased, transferred, or placed

into service after October 5, 1999, is the purchase price of the equipment as capitalized

on the company's books and records less composite annual allowances as prescribed

by the tax commissioner. (E) The true value of taxable property, except property of a railroad company, required

by section 5727.06 of the Revised Code to be assessed by the tax commissioner shall not include the allowance for funds

used during construction or interest during construction that has been capitalized

on the public utility's books and records as part of the total cost of the taxable

property.  This division shall not apply to the taxable property of an electric company or

a rural electric company, excluding transmission and distribution property, first

placed into service after December 31, 2000, or to the taxable property a person purchases,

which includes transfers, if that property was used in business by the seller prior

to the purchase. (F) The true value of watercraft owned or operated by a water transportation company

shall be determined by multiplying the true value of the watercraft as determined

under division (A) of this section by a fraction, the numerator of which is the number

of revenue-earning miles traveled by the watercraft in the waters of this state and

the denominator of which is the number of revenue-earning miles traveled by the watercraft

in all waters. (G) The cost of property subject to a sale and leaseback transaction is the cost of the

property as capitalized on the books and records of the public utility owning the

property immediately prior to the sale and leaseback transaction. (H) The cost as capitalized on the books and records of a public utility includes amounts

capitalized that represent regulatory assets, if such amounts previously were included

on the company's books and records as capitalized costs of taxable personal property. (I) Any change in the composite annual allowances as prescribed by the commissioner on

a prospective basis shall not be admissible in any judicial or administrative action

or proceeding as evidence of value with regard to prior years' taxes.  Information about the business, property, or transactions of any taxpayer obtained

by the commissioner for the purpose of adopting or modifying the composite annual

allowances shall not be subject to discovery or disclosure.