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 In 2004 however, passage of ordinance 1702-2004 repealed certain sections of ordinance 0872-2001, thereby directing 100 percent of the KWH distribution tax moneys to remain in the general fund.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.
Body
WHEREAS, Senate Bill 3, which became effective July 6, 1999 established a kilowatt-hour distribution tax; and
WHEREAS, the City of Columbus, Division of Electricity, operates a municipal electric utility that is required to calculate the tax on the kilowatt hours of electricity distributed to end users located inside and outside the corporate boundaries of the City of Columbus; and
WHEREAS, Ohio Revised Code §5727.82 (A)(3) states that a municipal electric utility that is required to calculate the kilowatt-hour distribution tax may retain in the municipality's general fund that portion of the tax calculated on kilowatt hours of electricity distribution to end users within the boundaries of the municipal corporation.
WHEREAS, it is the desire of the City of Columbus to retain the full value of the kilowatt-hour distribution tax in the city's general fund; and
WHEREAS, it is necessary to amend ordinances 0872-2001, 1702-2004, and 0159-2012 to enable this change; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to authorize the amendment of ordinances 0872-2001, 1702-2004, and 0159-2012 in order to preserve the public health, peace, property, safety and welfare; Now therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. Notwithstanding provisions of ordinances 0872-2011, 1702-2004, and 0159-2012, the City Auditor is hereby authorized and directed to transfer from the electricty operating fund to the general fund an amount equivalent to the funds that would have been generated by the KWH tax, or an amount as determined by the Director of Finance & Management, on an annual basis.
SECTION 2. That these amendments are retroactively effective to January 1, 2015.
SECTION 3. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.