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 Codes Section 5727.81, 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 In 2004 however, passage of ordinance 1702-2004 repealed certain sections of ordinance 0872-2001, thereby directing 100 percent of the KWH distribution tax moneys to remain in the general fund.
While it is now the city's intent to deposit these funds equally between the general and the electricity operating funds, there is no formal or legal mechanism to do so. Passage of this ordinance, which amends the previous two ordinances, will provide this vehicle.
FISCAL IMPACT
The actions taken herein do not change the amount of the KWH distribution tax proceeds that are available but do authorize a change in how these funds are distributed within the city. As such there is no net fiscal impact.
Title
To amend ordinances 0872-2001 and 1702-2004 to allow the City Auditor to transfer fifty percent or an amount authorized by the Director of Finance and Management of those moneys paid on an annual basis to the city's general fund for the kilowatt-hour distribution tax by the Division of Electricity to the electricity operating fund. (AMENDED BY ORD. 3050-2014 PASSED 1/26/2015)
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 utilit...
Click here for full text