Tax Data Series

Tangible Personal Property Tax

Tax Replacement Payments, by County
Fiscal Year 2012

Ohio’s tangible personal property (TPP) tax was phased out between 2006 and 2010 as part of the tax changes contained in Am. Sub. HB 66, the two-year state budget bill for Fiscal Years 2006-2007.  The phase-out was accomplished by lowering the assessment percentage for all tangible personal property, including inventories. 

Schools and local governments are reimbursed for the loss of tax revenue due to the elimination of the tax. The commercial activity tax is the primary revenue source for the tax replacement payments although the state General Revenue Fund is used as a funding source if commercial activity tax revenues are insufficient to make the mandated replacement payments. For more details on the phase-out and replacement payments see http://www.tax.ohio.gov/personal_property/phaseout.aspx.

In 2006, reimbursements were calculated based on each local government’s TPP revenue. In 2011, the reimbursement formula was altered so that reimbursement, for the majority of political units and levies, depends on each local government’s reliance on the reimbursement.

The amounts displayed are for the November 2011 and May 2012 distributions. The amounts reflect the Local Government Property Tax Replacement Fund distributions (Fund 7081) and the School District Property Tax Replacement Fund (Fund 7047).  Fund 7081 is administered by the Ohio Department of Taxation and monies are sent by Taxation to the respective county auditors for the crediting of county, municipal, township, and special district levies only. The Ohio Department of Education administers the School District Property Tax Replacement Fund (Fund 7047).

The figures shown have been compiled from records of Ohio Department of Taxation.