SB 116: Reduce tangible personal property tax for pipe-line companies
This bill amends the state's tax code to reduce the taxable personal property tax rate for certain utility companies. The tax rate reductions apply to various types of companies, including public utilities, interexchange telecommunications companies, and energy companies. The tax rate reductions are as follows: - Rural electric companies: 50% for transmission and distribution property, 25% for other property - Telephone or telegraph companies: 25% for initial taxable property (before 2007), 67% for 2005, 46% for 2006, and 25% thereafter - Natural gas and water-works companies: 25% for taxable property first subject to taxation in 2017 and thereafter - Pipe-line companies: 88% for taxable property first subject to taxation before 2017, and 25% thereafter - Electric companies: 88% for transmission and distribution property in 2005, 25% for other property, and 85% for transmission and dist…
| Feb. 26, 2025 | Referred to committee: Public Utilities |
| Feb. 25, 2025 | Introduced |
As Introduced
136th General Assembly Regular Session 2025-2026
S. B. No. 116
Senator Lang
To amend section 5727.111 of the Revised Code to 1
reduce the tangible personal property tax 2
assessment rate for pipe-line companies. 3
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5727.111 of the Revised Code be 4
amended to read as follows: 5
Sec. 5727.111. The taxable property of each public 6
utility, except a railroad company, and of each interexchange 7
telecommunications company shall be assessed at the following 8
percentages of true value: 9
(A) In the case of a rural electric company, fifty per 10
cent in the case of its taxable transmission and distribution 11
property and its energy conversion equipment, and twenty-five 12
per cent for all its other taxable property; 13
(B) In the case of a telephone or telegraph company, 14
twenty-five per cent for taxable property first subject to 15
taxation in this state for tax year 1995 or thereafter for tax 16
years before tax year 2007, and pursuant to division (H) of 17
section 5711.22 of the Revised Code for tax year 2007 and 18
thereafter, and the following for all other taxable property: 19
(1) For tax years prior to 2005, eighty-eight per cent; 20
S. B. No. 116 Page 2
As Introduced
(2) For tax year 2005, sixty-seven per cent; 21
(3) For tax year 2006, forty-six per cent; 22
(4) For tax year 2007 and thereafter, pursuant to division 23
(H) of section 5711.22 of the Revised Code. 24
(C) Twenty-five per cent in the case of (1) a natural gas 25
company or (2) a water-works company for taxable property first 26
subject to taxation in this state for tax year 2017 and 27
thereafter; 28
(D) Eighty-eight per cent in the case of a pipe-line 29
company, a water-works company for taxable property first 30
subject to taxation in this state before tax year 2017, or a 31
heating company; 32
(E)(1) For tax year 2005, eighty-eight per cent in the 33
case of the taxable transmission and distribution property of an 34
electric company, and twenty-five per cent for all its other 35
taxable property; 36
(2) For tax year 2006 and each tax year thereafter, in the 37
case of an electric company, eighty-five per cent in the case of 38
its taxable transmission and distribution property and its 39
energy conversion equipment, and twenty-four per cent for all 40
its other taxable property. 41
(F)(1) Twenty-five per cent in the case of an 42
interexchange telecommunications company for tax years before 43
tax year 2007; 44
(2) Pursuant to division (H) of section 5711.22 of the 45
Revised Code for tax year 2007 and thereafter. 46
(G) Twenty-five per cent in the case of a water 47
transportation company; 48
S. B. No. 116 As Introduced
Page 3
(H) For tax year 2011 and each tax year thereafter in the 49
case of an energy company, twenty-four per cent in the case of 50
its taxable production equipment, and eighty-five per cent for 51
all its other taxable property. 52
(I) Twenty-five per cent in the case of a pipe-line 53
company. 54
Section 2. That existing section 5727.111 of the Revised 55
Code is hereby repealed. 56
Section 3. The amendment by this act of section 5727.111 57
of the Revised Code applies to tax year 2025 and every tax year 58
thereafter. 59