Ohio § 5727.85

§ 5727.85.

No determinations, computations, certifications, or payments shall be made under this

section after June 30, 2015. (A) By the thirty-first day of July of each year, beginning in 2002 and ending in 2010,

the department of education shall determine the following for each school district

and each joint vocational school district: (1) The state education aid offset, which, except as provided in division (A)(1)(c) of

this section, is the difference obtained by subtracting the amount described in division

(A)(1)(b) of this section from the amount described in division (A)(1)(a) of this

section: (a) The state education aid computed for the school district or joint vocational school

district for the current fiscal year as of the thirty-first day of July; (b) The state education aid that would be computed for the school district or joint vocational

school district for the current fiscal year as of the thirty-first day of July if

the recognized valuation included the tax value loss for the school district or joint

vocational school district; (c) The state education aid offset for fiscal year 2010 and fiscal year 2011 equals the

greater of the state education aid offset calculated for that fiscal year under divisions

(A)(1)(a) and (b) of this section or the state education aid offset calculated for

fiscal year 2009. (2) For fiscal years 2008 through 2011, the greater of zero or the difference obtained

by subtracting the state education aid offset determined under division (A)(1) of

this section from the fixed-rate levy loss certified under division (J) of section 5727.84 of the Revised Code for all taxing districts in each school district and joint vocational school district. By the fifth day of August of each such year, the department of education shall certify

the amount so determined under division (A)(1) of this section to the director of

budget and management. (B) Not later than the thirty-first day of October of the years 2006 through 2010, the

department of education shall determine all of the following for each school district: (1) The amount obtained by subtracting the district's state education aid computed for

fiscal year 2002 from the district's state education aid computed for the current

fiscal year as of the fifteenth day of July, by including in the definition of recognized

valuation the machinery and equipment, inventory, furniture and fixtures, and telephone

property tax value losses, as defined in section 5751.20 of the Revised Code , for the school district or joint vocational school district for the preceding tax

year; (2) The inflation-adjusted property tax loss.  The inflation-adjusted property tax loss equals the fixed-rate levy loss, excluding

the tax loss from levies within the ten-mill limitation to pay debt charges, determined

under division (D) of section 5727.84 of the Revised Code for all taxing districts in each school district, plus the product obtained by multiplying

that loss by the cumulative percentage increase in the consumer price index from January

1, 2002, to the thirtieth day of June of the current year. (3) The difference obtained by subtracting the amount computed under division (B)(1)

from the amount of the inflation-adjusted property tax loss.  If this difference is zero or a negative number, no further payments shall be made

under division (C) of this section to the school district from the school district

property tax replacement fund. (C) Beginning in 2002 for school districts and beginning in August 2011 for joint vocational

school districts, the department of education shall pay from the school district property

tax replacement fund to each school district all of the following: (1) In February 2002, one-half of the fixed-rate levy loss certified under division (G) of section 5727.84 of the Revised Code between the twenty-first and twenty-eighth days of February. (2) From August 2002 through February 2011, one-half of the amount calculated for that

fiscal year under division (A)(2) of this section between the twenty-first and twenty-eighth

days of August and of February, provided the difference computed under division (B)(3)

of this section is not less than or equal to zero. (3) For fiscal years 2012 and thereafter, the sum of the amounts in divisions (C)(3)(a)

or (b) and (c) of this section shall be paid on or before the thirty-first day of

August and the twenty-eighth day of February: (a) If the ratio of 2011 current expense S.B. 3 allocation to total resources is equal

to or less than the threshold per cent, zero; (b) If the ratio of 2011 current expense S.B. 3 allocation to total resources is greater

than the threshold per cent, fifty per cent of the difference of 2011 current expense

S.B. 3 allocation minus the product of total resources multiplied by the threshold

per cent; (c) Fifty per cent of the product of 2011 non-current expense S.B. 3 allocation multiplied

by seventy-five per cent for fiscal year 2012 and fifty per cent for fiscal years

2013 and thereafter. The department of education shall report to each school district the apportionment

of the payments among the school district's funds based on the certifications under division (J) of section 5727.84 of the Revised Code . (D) For taxes levied within the ten-mill limitation for debt purposes in tax year 1998

in the case of electric company tax value losses, and in tax year 1999 in the case

of natural gas company tax value losses, payments shall be made equal to one hundred

per cent of the loss computed as if the tax were a fixed-rate levy, but those payments

shall extend from fiscal year 2006 through fiscal year 2016. (E) Not later than January 1, 2002, for all taxing districts in each joint vocational

school district, the tax commissioner shall certify to the department of education

the fixed-rate levy loss determined under division (G) of section 5727.84 of the Revised Code .  From February 2002 through February 2011, the department shall pay from the school

district property tax replacement fund to the joint vocational school district one-half

of the amount calculated for that fiscal year under division (A)(2) of this section

between the twenty-first and twenty-eighth days of August and of February. (F)(1) Not later than January 1, 2002, for each fixed-sum levy levied by each school district

or joint vocational school district and for each year for which a determination is

made under division (H) of section 5727.84 of the Revised Code that a fixed-sum levy loss is to be reimbursed, the tax commissioner shall certify

to the department of education the fixed-sum levy loss determined under that division.  The certification shall cover a time period sufficient to include all fixed-sum

levies for which the tax commissioner made such a determination.  The department shall pay from the school district property tax replacement fund

to the school district or joint vocational school district one-half of the fixed-sum

levy loss so certified for each year between the twenty-first and twenty-eighth days

of August and of February. (2) Beginning in 2003, by the thirty-first day of January of each year, the tax commissioner

shall review the certification originally made under division (F)(1) of this section.  If the commissioner determines that a debt levy that had been scheduled to be reimbursed

in the current year has expired, a revised certification for that and all subsequent

years shall be made to the department of education. (G) If the balance of the half-mill equalization fund created under section 3318.18 of the Revised Code is insufficient to make the full amount of payments required under division (D) of

that section, the department of education, at the end of the third quarter of the

fiscal year, shall certify to the director of budget and management the amount of

the deficiency, and the director shall transfer an amount equal to the deficiency

from the school district property tax replacement fund to the half-mill equalization

fund. (H) Beginning in August 2002, and ending in May 2011, the director of budget and management

shall transfer from the school district property tax replacement fund to the general

revenue fund each of the following: (1) Between the twenty-eighth day of August and the fifth day of September, the lesser

of one-half of the amount certified for that fiscal year under division (A)(2) of

this section or the balance in the school district property tax replacement fund; (2) Between the first and fifth days of May, the lesser of one-half of the amount certified

for that fiscal year under division (A)(2) of this section or the balance in the school

district property tax replacement fund. (I) On the first day of June each year, the director of budget and management shall transfer

any balance remaining in the school district property tax replacement fund after the

payments have been made under divisions (C), (D), (E), (F), (G), and (H) of this section

to the half-mill equalization fund created under section 3318.18 of the Revised Code to the extent required to make any payments in the current fiscal year under that

section, and shall transfer the remaining balance to the general revenue fund. (J) After fiscal year 2002, if the total amount in the school district property tax replacement

fund is insufficient to make all payments under divisions (C), (D), (E), (F), and

(G) of this section at the time the payments are to be made, the director of budget

and management shall transfer from the general revenue fund to the school district

property tax replacement fund the difference between the total amount to be paid and

the total amount in the school district property tax replacement fund, except that

no transfer shall be made by reason of a deficiency to the extent that it results

from the amendment of section 5727.84 of the Revised Code by Amended Substitute House Bill No. 95 of the 125th general assembly. (K) If all of the territory of a school district or joint vocational school district

is merged with an existing district, or if a part of the territory of a school district

or joint vocational school district is transferred to an existing or new district,

the department of education, in consultation with the tax commissioner, shall adjust

the payments made under this section as follows: (1) For the merger of all of the territory of two or more districts, the total resources,

2011 current expense S.B. 3 allocation, total 2011 S.B. 3 allocation, 2011 non-current

expense S.B. 3 allocation, and fixed-sum levy loss of the successor district shall

be equal to the sum of the total resources, 2011 current expense S.B. 3 allocation,

total 2011 S.B. 3 allocation, 2011 non-current expense S.B. 3 allocation, and fixed-sum

levy loss for each of the districts involved in the merger. (2) For the transfer of a part of one district's territory to an existing district, the

amount of the total resources, 2011 current expense S.B. 3 allocation, total 2011

S.B. 3 allocation, and 2011 non-current expense S.B. 3 allocation that is transferred

to the recipient district shall be an amount equal to the transferring district's

total resources, 2011 current expense S.B. 3 allocation, total 2011 S.B. 3 allocation,

and 2011 non-current expense S.B. 3 allocation times a fraction, the numerator of

which is the number of pupils being transferred to the recipient district, measured,

in the case of a school district, by formula ADM as that term is defined in section 3317.02 of the Revised Code or, in the case of a joint vocational school district, by formula ADM as defined

for a joint vocational school district in that section, and the denominator of which

is the average daily membership or formula ADM of the transferor district.  Fixed-sum levy losses for both districts shall be determined under division (K)(4)

of this section. (3) For the transfer of a part of the territory of one or more districts to create a

new district: (a) If the new district is created on or after January 1, 2000, but before January 1,

2005, the new district shall be paid its current fixed-rate levy loss through August

2009.  In February 2010, August 2010, and February 2011, the new district shall be paid

fifty per cent of the lesser of:  (i) the amount calculated under division (C)(2)

of this section or (ii) an amount equal to seventy per cent of the new district's

fixed-rate levy loss. Beginning in fiscal year 2012, the new district shall be paid as provided in division

(C) of this section. Fixed-sum levy losses for the districts shall be determined under division (K)(4)

of this section. (b) If the new district is created on or after January 1, 2005, the new district shall

be deemed not to have any fixed-rate levy loss or, except as provided in division

(K)(4) of this section, fixed-sum levy loss.  The district or districts from which the territory was transferred shall have no

reduction in their fixed-rate levy loss, or, except as provided in division (K)(4)

of this section, their fixed-sum levy loss. (4) If a recipient district under division (K)(2) of this section or a new district under

division (K)(3)(a) or (b) of this section takes on debt from one or more of the districts

from which territory was transferred, and any of the districts transferring the territory

had fixed-sum levy losses, the department of education, in consultation with the tax

commissioner, shall make an equitable division of the fixed-sum levy losses.