Article VIII, Section 2e | Providing means for securing funds for highway and public building construction

The state may borrow money and issue bonds or other obligations therefor for the purpose of acquiring, constructing, reconstructing and otherwise improving and equipping buildings and structures, excluding highways, and for the purpose of acquiring sites for such buildings and structures, for the penal, correctional, mental, and welfare institutions of the state; for the state supported universities and colleges of the state; for class room facilities to be leased or sold by the state to public school districts unable within limitations provided by law to provide adequate facilities without assistance from the state; and for state offices; provided that the aggregate total amount of such borrowing under authority of this section shall not exceed $150,000,000. Not more than thirty million dollars of such borrowing shall be contracted within any calendar year. No part of such borrowing shall be contracted after the last day of December 1964. All bonds or other obligations issued pursuant to this section shall mature within twenty years from date of issue. Not more than $75,000,000 of the total expenditure from such borrowing shall be for acquisition, construction, reconstruction and other improvement and equipping of buildings and structures, or for acquisition of sites for such buildings and structures, for the state supported universities and colleges, public school class room facilities and state offices; and not more than $75,000,000 of the total expenditure from such borrowing shall be for acquisition, construction, reconstruction and other improvement and equipping of buildings and structures, or for acquisition of sites for such buildings and structures, for the penal, correctional, mental, and welfare institutions of the state.

The faith and credit of the state are hereby pledged for the payment of such bonds or other obligations and the interest thereon, and they shall be payable from all excises and taxes of the state, except ad valorem taxes on real and personal property, income taxes, and fees, excises, or license taxes relating to registration, operation, or use of vehicles on public highways, or to fuels used for propelling such vehicles.

During the period beginning with the effective date of the first authorization to issue bonds or other obligations under authority of this section and ending on the last day of December 1964, and continuing during such time as such bonds or other obligations are outstanding, and moneys in the capital improvements bond retirement fund are insufficient to pay all interest, principal and charges for the issuance and retirement of such bonds and other obligations, there shall be levied, for the purpose of paying interest, principal, and charges for the issuance and retirement of such bonds and other obligations, an excise tax on sales of cigarettes at the rate of one-half cent on each ten cigarettes or fractional part thereof, and an excise tax on the use, consumption, or storage for consumption of cigarettes by consumers in this state at the rate of one-half cent on each ten cigarettes or fractional part thereof. Such tax on the use, consumption, or storage for consumption of cigarettes by consumers in this state shall not be levied upon cigarettes upon which the tax on sales has been paid. The moneys received into the state treasury from the one-half cent excise tax on sales of cigarettes and from the one-half cent excise tax on the use, consumption, or storage for consumption of cigarettes by consumers in this state shall be paid into the capital improvements bond retirement fund. The general assembly of Ohio shall enact laws providing for the collection of such taxes.

There is hereby created in the state treasury a fund to be known as the capital improvements bond retirement fund. The capital improvements bond retirement fund shall consist of all moneys received by the state from taxes on cigarettes levied under authority of this section, and all other moneys credited to the fund pursuant to law. Such moneys shall be expended, as provided by law, for the purpose of paying interest, principal, and charges for the issuance and retirement of bonds and other obligations issued under authority of this section.

Sufficient amounts of such moneys in the capital improvements bond retirement fund are hereby appropriated for the purpose of paying interest, principal, and charges for the issuance and retirement of bonds or other obligations issued under authority of this section, without other appropriations but according to law.

Any balance remaining in the capital improvements bond retirement fund after payment of all interest, principal, and charges for the issuance and retirement of bonds and other obligations issued under authority of this section, shall be disposed of as shall be provided by law.

As long as any of such bonds or other obligations are outstanding there shall be levied and collected, in amounts sufficient to pay the principal of and the interest on such bonds or other obligations, excises and taxes, excluding those above excepted.

The general assembly shall meet on the third Monday of January, 1956 for the purpose of enacting laws pursuant to this section.