Shape Ohio Tax Commissioner Thomas M. Zaino today released the findings of a project recalculating the value of tangible personal property owned by electric and natural gas companies in the state. Commissioner Zaino said the findings clearly show the upcoming drop in property taxes paid by the utilities, but said there will be no impact on funding for schools and local governments. This legislation fundamentally restructures a big part of our business tax system, but, at the same time, provides critical protection for schools and local governments. They will see no drop in revenue because the state will reimburse them for the lower property values. To compensate schools and local government for the loss in property taxes, the state will use revenue from two new taxes on electric and gas distribution companies.
Revenue raised under the old and new tax systems is roughly equivalent.
Those cuts are designed to allow formerly regulated companies to operate in deregulated, competitive markets. Actual reimbursements of schools and local governments begin in February 2002.