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