Tangible Personal Property Tax
Tax Replacement Payments, by County
Fiscal Year 2010
The tangible personal property tax was phased out between
2006 and 2010 as part of the tax changes contained in Amended
Substitute House Bill 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. For more
details on the phase-out see http://tax.ohio.gov/divisions/personal_property/PPT_law_changes_070303.stm
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 not sufficiently large to fund the mandated
replacement payments.
The replacement payments are based on levies approved before
Sept. 1, 2005 and tangible personal property values that
existed as of Aug. 31, 2005. As revenue from taxes on
tangible personal property has fallen since tax year 2005,
replacement payments to schools and local governments will
increase through fiscal year 2011 in order to hold these
entities “harmless” on qualifying levies. The replacement
payments to local governments will begin to decline in fiscal
year 2012. Replacement payments to schools will begin to
decline in fiscal year 2014. However, schools
collectively are guaranteed to permanently receive 70 percent
of all commercial activity tax revenue, which means that as
the replacement payments decline after fiscal year 2014, the
schools will nonetheless continue to receive distributions
from the commercial activity tax based on a formula to be
determined in future legislation.
The table displays the amounts reimbursed in fiscal year 2010
for the elimination of the tangible personal property tax ;
it shows the amounts that are sent by the Department of
Taxation to the county auditors for distribution to the local
governmental entities within their respective counties. The
amounts displayed are for the August 2009, October 2009 and
May 2010 distributions. The amounts given are for 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.