Ohio constitution
Article VIII: public debt and public works
Section 2f

In addition to the authorization in Article VIII,
Section 2e, the state may borrow not to exceed two
hundred fifty million dollars and issue bonds or other
obligations therefore, for the purpose of acquiring, constructing,
reconstructing, and otherwise improving and
equipping buildings and structures, excluding highways;
and for the purpose of acquiring lands and interests
in lands for sites for such buildings and structures;
and for the purpose of assisting in the development of
the state, to acquire lands and interests in lands and to
develop such lands and interests or other state lands
for water impoundment sites, park and recreational
uses, and conservation of natural resources; and for
use in conjunction with federal grants or loans for any
of such purposes. Of said amount, for the purpose of
acquiring, constructing, reconstructing, and otherwise
improving and equipping buildings and structures,
excluding highways, and for the purpose of acquiring
lands and interests in lands for sites for such buildings
and structures, one hundred seventy-five million dollars
shall be issued for the state supported or assisted
college or universities including community colleges,
municipal universities, and university branches, thirty-
five million dollars shall be issued for providing
classroom facilities for the public schools to be leased
or sold by the state to public school districts unable,
within the limitations provided by law, to provide adequate
facilities without assistance from the state, and
fifteen million dollars shall be issued for state functions,
activities, offices, institutions, including penal,
correctional, mental, and welfare, and research and
development; and for the purpose of assisting in the
development of the state by acquiring lands and interests
in lands and to develop such lands and interests
or other state lands for water impoundment sites, park
and recreational uses, and conservation of natural resources
twenty-five million dollars shall be issued. Not
more than one hundred million dollars of such borrowing
shall be contracted within any calendar year. No
part of such borrowing shall be contracted after the
thirty-first day of December, 1972. All bonds or other
obligations issued pursuant to this section shall mature
at such time or times not exceeding thirty years from
date of issue and in such amounts as shall be fixed by
the commissioners of the sinking fund, and shall bear
interest and be sold as shall be authorized by law. Both
the principal of such debt and the interest thereon shall
be exempt from taxation within this state.
The faith and credit of the state are hereby pledged
for the payment of such bonds or other obligations,
and the interest thereon. 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. The excises
and taxes of the state from which such bonds and other
obligations shall be paid shall include 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, which shall be levied during the period
beginning with January 1, 1965, and continuing until
December 31, 1972, and thereafter as long as any
of such bonds and other obligations are outstanding
and moneys in the separate and distinct bond retirement
fund hereinafter created are insufficient to pay
all interest, principal, and charges for the issuance and
retirement of such bonds and other obligations. 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 General Assembly of the state of
Ohio shall enact laws providing for the collection of
such taxes. The moneys received into the state treasury
from such one-half cent excise tax on sales of
cigarettes and from such one half cent excise tax on
the use, consumption, or storage for consumption of
cigarettes by consumers in this state shall be paid into
a separate and distinct bond retirement fund hereby
created. There shall be transferred in each year from
said bond retirement fund to the capital improvements
bond retirement fund created by Article VIII, Section
2e of the Constitution of the State of Ohio, from the
proceeds of the levy of such excise taxes on cigarettes,
such amounts as may be necessary for the payment
in such year of the interest, principal, and charges of
the bonds or other obligations issued pursuant to said
Article VIII, Section 2e falling due in such year, to
the extent that moneys in said capital improvements
bond retirement fund in such year are insufficient to
pay such interest, principal, and charges.
The excise taxes on the sale, use, consumption or storage
of cigarettes authorized to be levied by Article
VIII, Section 2e of the Constitution of the State of
Ohio for the payment of bonds and other obligations
issued under authority of that section shall not be levied
during any period that they are not required to be
levied by Article VIII, Section 2e of the Constitution
of the State of Ohio.
Sufficient amounts of such moneys remaining in said
separate and distinct bond retirement fund created by
this section, after such transfers, are hereby appropriated
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,
without other appropriations but according to law. In
the event the moneys in the separate and distinct bond
retirement fund created by this section are at any time
insufficient to pay the current interest, principal, and
charges for the issuance and retirement of bonds and
other obligations issued under authority of this section,
then such moneys as may be required to pay such
current interest, principal, and charges are hereby appropriated
for those purposes, without other appropriations
but according to law, from the proceeds of
all excises and taxes excluding those above excepted.
Provision may be made by law for the transfer and the
use of any amount in said separate and distinct bond
retirement fund in excess of that required in any year
for payment of interest, principal, and charges for the
issuance and retirement of bonds and other obligations
issued under authority of said Article VIII, Section 2e
and this section.
Any balance remaining in the separate and distinct
bond retirement fund created by this section after payment
of all interest, principal, and charges for the issuance
and retirement of bonds or other obligations
issued under authority of this section shall be disposed
of for the purposes enumerated in this section as may
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 interest
on such bonds or other obligations, excises and taxes,
excluding those above excepted.