Explanation
The Electric Industry Restructuring Act, which became effective on July 6, 1999, levied a kilowatt-hour distribution (KWH) tax to electricity end users. In accordance with Ohio Revised Code Section 5727.82, the Division of Electricity, as a municipal utility, was to pay the KWH tax to the city's general fund for "purchaser['s]… within the municipal corporation's corporate limits." For end users falling outside the corporate limits, the KWH proceeds were to be remitted to the State of Ohio's Department of Taxation. Ordinance 0872-2001 authorized the City Auditor to transfer 100 percent of the allowable KWH funds from the general fund to the Electricity Operating fund. In 2004 however, passage of ordinance 1702-2004 repealed certain sections of ordinance 0872-2001, thereby directing 100 percent of the KWH distribution tax moneys to remain in the general fund. In 2012, passage of ordinance 0159-2012 amended ordinances 0872-2001 and 1702-2004, thereby authorizing the City Auditor to deposit these funds equally between the general and the electricity operating funds. Passage of this ordinance, which amends the previous three ordinances, will direct the City Auditor to transfer one hundred percent of the value of the kilowatt-hour distribution tax or an amount authorized by the Director of Finance and Management from the electricity operating fund to the general fund on an annual basis.
FISCAL IMPACT
The actions taken herein authorize the transfer of an amount equivalent to the tax had it been imposed or an amount determined by the Director of Finance and Management. As such, there is no net fiscal impact.
Title
To amend ordinances 0872-2001, 1702-2004, and 0159-2012 to allow the City Auditor to transfer one hundred percent of the value of the kilowatt-hour distribution tax, or an amount authorized by the Director of Finance and Management, from the electricity operating fund to the general fund on an annual basis; and to declare an emergency....
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