Tangible Personal Property Tax
Tax Replacement Payments, by County
Fiscal Year 2011
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.
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. For more details on the phase-out and
replacement payments see http://tax.ohio.gov/channels/government/phase_out.stm
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 fell beginning in tax year 2005,
replacement payments to schools and local governments will
increased through fiscal year 2011 in order to hold these
entities “harmless” on qualifying levies. The replacement
payments to schools and local governments begin to decline in
fiscal year 2012. . Replacement payments to schools and local
governments phase-down in fiscal years 2012,2013, and
2014. Replacement payments then continue at fiscal year
2014 levels.
The table displays the amounts reimbursed in fiscal year 2011
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 2010, October 2010 and
May 2011 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.