News Releases

News Release

July 26, 2001  -  Columbus, Ohio  - Schools, local governments begin receiving revenue from new kilowatt hour, natural gas taxes next year

COLUMBUS -- Schools and local governments beginning next year will receive $288 million annually from the new kilowatt hour tax on electricity and the new thousand cubic foot tax on natural gas, according to Ohio Tax Commissioner Thomas M. Zaino.

The money replaces property tax revenue lost by local governments and schools as the result of the deregulation of gas and electric utilities. The property tax assessment rates for those industries have been reduced to allow the formerly regulated companies to operate in deregulated, competitive markets. The new property tax assessment rates (25%) for the utilities brings them in line with what other businesses in Ohio pay and are effective this year.Zaino said the legislation leading to deregulation fundamentally restructured a big part of the business tax system in Ohio, but at the same time protected schools and local governments from revenue loss.County auditors have been notified of the amounts of money the schools and local governments will receive. The amounts are also posted on the Ohio Department of Taxation’s web site at: http://tax.ohio.gov/. Actual reimbursements begin in February 2002.Revenue from the new kilowatt and gas taxes also replaces state gross receipts taxes formerly paid by utilities. The new taxes are designed to have no impact on individual consumers.

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For more information contact:

Gary Gudmundson, Communications Director
Ohio Department of Taxation
(614) 644-6903