Ohio Code 5727.15 – Apportionment of value of taxable property of public utilities
When all the taxable property of a public utility is located in one taxing district, the tax commissioner shall apportion the total taxable value thereof to that taxing district.
Terms Used In Ohio Code 5727.15
- Energy conversion equipment: includes , but is not limited to, inverters, batteries, switch gears, wiring, collection lines, substations, ancillary tangible personal property, or any lines and associated tangible personal property located between substations and the transmission interconnection point. See Ohio Code 5727.01
- Personal property: All property that is not real property.
- production equipment: includes taxable station equipment that is located at a production plant. See Ohio Code 5727.01
- Property: means real and personal property. See Ohio Code 1.59
- Public utility: means each person referred to as a telephone company, telegraph company, electric company, natural gas company, pipe-line company, water-works company, water transportation company, heating company, rural electric company, railroad company, combined company, or energy company. See Ohio Code 5727.01
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- state: means the state of Ohio. See Ohio Code 1.59
- Tax year: means the year for which property or gross receipts are subject to assessment under this chapter. See Ohio Code 5727.01
- taxable property: includes patterns, jigs, dies, and drawings of an electric company or a combined company for use in the activity of an electric company. See Ohio Code 5727.01
- Taxing district: means a municipal corporation or township, or part thereof, in which the aggregate rate of taxation is uniform. See Ohio Code 5727.01
When taxable property of a public utility is located in more than one taxing district, the commissioner shall apportion the total taxable value thereof among the taxing districts as follows:
(A)(1) In the case of a telegraph, interexchange telecommunications, or telephone company that owns miles of wire in this state, the value apportioned to each taxing district shall be the same percentage of the total value apportioned to all taxing districts as the miles of wire owned by the company within the taxing district are to the total miles of wire owned by the company within this state;
(2) In the case of a telegraph, interexchange telecommunications, or telephone company that does not own miles of wire in this state, the value apportioned to each taxing district shall be the same percentage of the total value apportioned to all taxing districts as the cost of the taxable property physically located in the taxing district is of the total cost of all taxable property physically located in this state.
(B) In the case of a railroad company:
(1) The taxable value of real and personal property not used in railroad operations shall be apportioned according to its situs;
(2) The taxable value of personal property used in railroad operations shall be apportioned to each taxing district in proportion to the miles of track and trackage rights, weighted to reflect the relative use of such personal property in each taxing district;
(3) The taxable value of real property used in railroad operations shall be apportioned to each taxing district in proportion to its relative value in each taxing district.
(C)(1) Prior to tax year 2001, in the case of an electric company:
(a) Seventy per cent of the taxable value of all production equipment and of all station equipment that is not production equipment shall be apportioned to the taxing district in which such property is physically located; and
(b) The remaining value of such property, together with the value of all other taxable personal property, shall be apportioned to each taxing district in the per cent that the cost of all transmission and distribution property physically located in the taxing district is of the total cost of all transmission and distribution property physically located in this state.
(c) If an electric company’s taxable value for the current year includes the value of any production equipment at a plant at which the initial cost of the plant’s production equipment exceeded one billion dollars, then prior to making the apportionments required for that company by division (C)(1)(a) and (b) of this section, the tax commissioner shall do the following:
(i) Subtract four hundred twenty million dollars from the total taxable value of the production equipment at that plant for the current tax year.
(ii) Multiply the difference thus obtained by a fraction, the numerator of which is the portion of the taxable value of that plant’s production equipment included in the company’s total value for the current tax year, and the denominator of which is the total taxable value of such equipment included in the total taxable value of all electric companies for such year;
(iii) Apportion the product thus obtained to taxing districts in the manner prescribed in division (C)(1)(b) of this section.
(iv) Deduct the amounts so apportioned from the taxable value of the company’s production equipment at the plant, prior to making the apportionments required by divisions (C)(1)(a) and (b) of this section.
For purposes of division (C)(1)(c) of this section, “initial cost” applies only to production equipment of plants placed in commercial operation on or after January 1, 1987, and means the cost of all production equipment at a plant for the first year the plant’s equipment was subject to taxation.
(2) For tax year 2001 and thereafter, in the case of an electric company:
(a) The taxable value of all production equipment shall be apportioned to the taxing district in which such property is physically located; and
(b) The value of taxable personal property, including energy conversion equipment but excluding production equipment, shall be apportioned to each taxing district in the proportion that the cost of such other taxable personal property physically located in each taxing district is of the total cost of such other taxable personal property physically located in this state.
(D) For tax year 2011 and thereafter, in the case of the taxable property of an energy company:
(1) The taxable value of all production equipment shall be apportioned to the taxing district in which such property is physically located.
(2) The taxable value of all other taxable property, including energy conversion equipment, shall be apportioned to each taxing district in the proportion that the cost of such other taxable property physically located in each taxing district is of the total cost of such other taxable property physically located in this state.
(E) In the case of all other public utilities, the taxable value of the property to be apportioned shall be apportioned to each taxing district in proportion to the entire cost of such property within this state.