Tangible Personal Property (TPP) and Public Utility Deregulation Phase-out Reimbursement

The phase-out of the Tangible Personal Properties (TPP) and the Public Utility Deregulation (PUD) reimbursement continues in the current Fiscal Year. The calculation and distribution methodology for these reimbursements are made pursuant to provisions of Section 5709.92 of the Revised Code.
 The following details the calculation and distribution methodologies for reimbursements in the current Fiscal Year and beyond. The only remaining reimbursements are for Fixed Rate Operating Expense levy losses and Fixed Sum Debt Purpose Levy losses. All other reimbursements have been phased out. 
 
FIXED RATE OPERATING EXPENSE LEVY LOSS REIMBURSEMENT (FY16 TO AS LONG AS LEVIES ARE IN PLACE)
ORC Section 5709.92(C)(2) provides that in FY18 and the subsequent fiscal years, reimbursements shall be made to school districts and joint vocational school districts based on the positive difference obtained by subtracting from the FY17 reimbursement for Fixed Rate Current Operating levy losses, an amount equal to 1/16 of 1% of the 3-year average total taxable valuation of the district for TY14, TY15 and TY16. For each ensuing fiscal year, the exact same amount is to be subtracted from the latest annual calculation of the Fixed Rate Current Operating levy reimbursement to come up with the annual reimbursement for that year. So, in each Fiscal Year, 1/16 of 1% of the 3-year average total taxable valuation of the district for TY14, TY15 and TY16 is subtracted from the precediong Fiscal Year reimbursement amount and so on.  This calculation will continue until the reimbursement amount goes negative.
  

FIXED SUM DEBT PURPOSE REIMBURSEMENT (FY16 TO AS LONG AS THE LEVIES ARE IN PLACE)

ORC Section 5709.92(E)(1) provides that from FY16 this reimbursement will be distributed as Fixed Sum Debt Purpose reimbursement and will be comprised of 100% of the FY15 combined PUD and TPP reimbursements for such levy losses.
 Distribution of the reimbursements in each fiscal year is scheduled for the last Wednesday in November and May. If a levy on the basis of which local losses have occurred and subsequently reimbursements were calculated on, ceases to exist (expired, repealed or changed purpose) the reimbursements will be adjusted accordingly to reflect the levy changes. Sometimes these adjustments occur in mid fiscal year, after the November and before the May distributions and as a result the distributions for these months would differ. 
Section 5709.92(I) contains specific language relating to any school district that has a nuclear power plant located within its territory.
 
View the FY24 reimbursements broken down by levy type for traditional school districts. In addition, view projections for the reimbursement amounts for FY25 and FY26 based on Section 5709.92.
 
You can direct your questions to James Comeaux at james.comeaux@education.ohio.gov.
 

Last Modified: 5/14/2024 6:52:11 PM

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