Tax Rules: Final: 5703-1
5703-1-06 Certification of exempt facilities under
sections 5709.20 to 5709.27 of the Revised Code
Pursuant to division (B) of section 5709.21 of the Revised
Code, the tax commissioner hereby prescribes the manner and
form of applying for the certification of exempt facilities
under sections 5709.20 to 5709.27 of the Revised Code.
(A) Application for certification of an exempt facility as
defined in division (E) of section 5709.20 of the Revised
Code shall be made by the person owning the facility at the
time of application. The application shall contain plans and
specifications of the property, including all materials
incorporated or to be incorporated into the property and the
associated costs of the materials, and a descriptive list of
all equipment acquired or to be acquired by the applicant for
the exempt facility and the associated costs of the
equipment. The application shall include details of how the
applicant determined the cost of any auxiliary property under
section 5709.21 of the Revised Code.
The application shall be accompanied by the nonrefundable fee
required by section 5709.212 of the Revised Code. Section
5709.212 of the Revised Code provides that until such fee is
paid, the application is not complete, and the applicant is
not entitled to any tax exemption under section 5709.25 of
the Revised Code.
An exemption will be allowed only for those exempt facility
costs covered by the fee paid. If the exempt facility costs
exceed those covered by the fee paid, a certificate will not
be issued for the excess amount until the additional fee is
paid.
An application is filed when a properly completed application
is received by the commissioner. An application not
accompanied by the fee, documents, and information required
is not properly completed until the fee, documents, and
information are received. The commissioner will provide the
applicant at least thirty days after a request is sent to
complete the application. Thereafter, the commissioner may
deny issuing a certificate because the application is not
properly completed. A final determination reflecting such
denial may be issued without obtaining the opinion of the
director of environmental protection or the director of
development. The final determination is subject to appeal
under section 5717.02 of the Revised Code. Once the denial
becomes final, the applicant must file a new application if
the applicant still wants a certificate to be issued.
An applicant generally must file a separate application for
each location where the owner has facilities for which
certification is sought and for every county where a facility
is located. However, under authority of division (D) of
section 5709.21 of the Revised Code, the commissioner may
allow an applicant to file one application that applies to
multiple facilities in the same county if the facilities are
the same or substantially similar. In addition, a single
application, listing each owner and its percentage of
ownership, shall be filed for a jointly owned facility; if at
any time before or after issuance of an exempt facility
certificate the percentages of ownership change, the joint
owners subsequent to the change shall forthwith notify the
commissioner in writing of the change.
(B) As soon as is practicable after receipt of a properly
completed application, the tax commissioner will provide a
copy of the application and any accompanying documentation to
the county auditor of the county in which the facility is
located. The commissioner will include a statement showing an
estimate of what the taxable value of, and taxes on, the
facility would be if the facility were taxable so that the
auditor may proceed in accordance with division (A) of
section 5709.23 of the Revised Code. For purposes of the
estimate of taxable value, the commissioner will use the cost
shown on the application times the appropriate listing
percentage.
(C) The tax commissioner will provide a copy of a properly
completed application to either the director of environmental
protection or the director of development, as appropriate, to
obtain the director’s opinion concerning the facility. After
obtaining the director’s opinion and considering any
additional information requested, the commissioner will
ascertain if a certificate should be issued in whole or in
part or denied.
The commissioner will give written notice of the proposed
finding to the applicant and the appropriate county auditor.
If the applicant or the county auditor desires a
reconsideration of the proposed finding, either person may
file a written request for reconsideration with the
commissioner within sixty days after the notice was sent.
Either person may include a request that the commissioner
conduct a hearing on the application.
If a hearing has been requested, the commissioner will
schedule a hearing and give notice thereof to the applicant,
the county auditor, and the appropriate director. After the
hearing, the commissioner will issue a final determination on
the application and serve copies of the final determination
on the applicant and the appropriate county auditor. The
final determination is subject to appeal under section
5717.02 of the Revised Code.
After conclusion of the above proceedings, including
exhaustion of any appeal, the commissioner will issue, if
applicable, an exempt facility certificate, which will
include an exempt facility certificate number. The number
shall be used on all tax returns, all sales tax exemption
certificates, and all other forms and correspondence
pertaining to the facility.
(D) For purposes of audit and examination by employees of the
tax commissioner, the taxpayer shall identify separately the
exempted portion of a facility on the taxpayer’s books and
records.
(E) Upon the tax commissioner’s own motion or upon receiving
a complaint, the commissioner may, at the commissioner’s
discretion, after giving notice and the opportunity for a
hearing to a certificate holder, revoke or modify such
certificate in accordance with division (C) of section
5709.22 of the Revised Code.
(F) The requirement under division (E) of section 5709.25 of
the Revised Code to file a new application for the addition,
enlargement, expansion, or replacement of property at a
previously certified exempt facility shall be separately
ascertained for each such facility. If the exempt facility is
a jointly owned facility, that requirement shall be based on
the aggregate costs of all the joint owners of the facility.
The new application shall be accompanied by the nonrefundable
fee required for applications filed under division (E) of
section 5709.25 of the Revised Code. Section 5709.212 of the
Revised Code provides that until the fee is paid, the
application is not complete, and the applicant is not
entitled to any tax exemption under section 5709.25 of the
Revised Code. A certificate will not be issued for the
addition, enlargement, expansion, or replacement until the
fee is paid.
(G) In the event of the transfer of an exempt facility
certificate as provided by section 5709.27 of the Revised
Code, the transferee shall promptly give written notice of
the transfer to the commissioner and to the county auditor of
the county in which the facility is located. Such written
notice shall specify the effective date of the transfer and
shall have attached thereto a copy of the instrument of
transfer and a copy of the certificate transferred.
(H) As used in section 5709.21 of the Revised Code, "the date
of the construction of the facility" means the date on which
actual installation or construction of the facility, as set
forth by the plans and specifications, is begun, which will
result in the completed and operational facility.
Effective: 12-11-03
Promulgated under: 5703.14
Statutory authority: 5709.24
Amplifies: 5709.20, 5709.21, 5709.22, 5709.23, 5709.24,
5709.25, 5709.26, 5709.27
Prior effective dates: 6-4-73